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Honda Recalls One Million Cars

This article was written by in Consumer. 5 comments.


As an owner of a Honda Civic, I was concerned with the car maker’s latest round of recalls. My 2004 Honda Civic manual transmission LX sedan was not affected by the recall, but it wasn’t too long ago that both Honda and Toyota were issuing recalls. At the time, I reacted by buying shares in Toyota, thinking I could take advantage of a good company’s bad news. The investment saw some upside for a short period of time, but since I didn’t sell, it’s back to where it started.

The Toyota recalls were so hyped by the media, I thought it was a great opportunity. The recent Honda recalls seem to be attracting less attention, but even if they were, I don’t think I’d jump in with an investment in Honda. Here’s the information on the latest Honda recall:

  • 930,000 Fits and CR-Vs will be recalled for a potential problem with the power window switch.
  • 26,000 CR-Zs will be recalled due to the possibility of the car rolling backwards when the transmission is not engaged in reverse.

Honda CR-VFor the most part, recalls involve nothing more than taking a car into the dealership for a quick repair. Lives are rarely on the line.

For me, since I am not affected by the recall, I have bigger concerns; it seems the latest edition of my mainstay for the last decade, the Honda Civic, was panned by Consumer Reports. A friend of mine who has been a loyal Ford owner for the last decade has expressed his pleasure in the news and perhaps vindication. My current car and my previous car, a 1997 Honda Civic LX, ran beautifully as long they have been in my hands. I only replaced the older car after I received it back after lending it to a relative for a year while I was not driving and there was an unidentifiable problem. The 2004 recently passed 140,000 miles and should last many more.

When the car finally reaches the point where the cost to maintain its operation is higher than the remnant value of the car, I’ll need to look at my options. If the recent crop of Honda Civic editions is not reliable and recommended, I’ll look for a change. By the time I buy a new car, a sedan might not be at the top of my list, anyway, depending on my needs and perhaps desires. I may ot be looking for a Civic or an comparable sedan.

Here’s Honda’s statement about the recalls:

Honda will voluntarily recall 80,111 CR-V vehicles from the 2006 model year in the U.S. to replace the power window master switch. The design of the power window master switch can allow residue from interior cleaners to accumulate, which can, over time with switch use, cause the electrical contacts to degrade and may lead to a fire in the switch. No injuries or deaths have been reported related to this condition.

Additionally, Honda will voluntarily recall 5,626 CR-Z vehicles from the 2011 model year in the U.S. that are equipped with manual transmissions to update the software that controls the hybrid electric motor. In the affected vehicles… it is possible for the electric motor to rotate in the direction opposite to that selected by the transmission. If this occurs and the driver has not engaged the brakes, the vehicle may slowly roll in an unexpected direction…

Which automobile maker delivers the highest-quality vehicles today?

Photo: labnol
Honda

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This is one of my biggest financial mistakes. My failure to learn some basic skills and my willful ignorance of the trouble I was in cost me thousands of dollars and major inconveniences.

When I was younger, I didn’t have that much of a positive track record with cars. In high school after receiving my license and throughout college, I drove my parents’ car, but I drove infrequently and was never really responsible for maintaining the car. After I graduated with a bachelor’s degree in music education and found my first teaching position, I needed a car. My parents were kind enough to buy me one as a graduation gift — a 12-year old Toyota Celica in good enough condition.

Well, I made a stupid mistake, though it’s a mistake that befalls many people who don’t take the time to learn about basic car maintenance when owning their first car. I never added any oil to the engine, and certainly never changed the oil. Even if the 3,000 mile “standard” for changing oil is too aggressive for modern cars, letting the motor run dry will quickly damage the car. The mistake of not learning the bare minimum for owning a car got me into trouble.

I replaced the motor after it was destroyed and the car ran well for another few years, but I made more mistakes. These were of a more financial nature. My car seemed to attract police, who seemed almost delighted to pull me over for speeding.

Although it had a rebuilt motor, the Celica was unreliable. Before it was completely undrivable, I used it to trade in for a slightly used car, a Honda Civic, and a three-year loan to make the purchase more affordable for me. I might have changed my driving habits, or the car might not have attracted police as much, but I was pulled over less frequently for speeding. But I continued to ignore the tickets.

Although speeding tickets are expensive and I had no money, it would have been more manageable in the end had I paid the fines and moved on. I was working for a non-profit, and I was broke. For some reason, I thought my life would be better if I stuck my head in the sand and ignored the tickets and fines. I was also moving around a lot in this period of my life, and I didn’t receive notices from the DMV letting me know my license was suspended for my failure to pay these fines. Since I didn’t know my license was suspended, I kept driving, blissfully ignorant of the situation I was in.

One day, soon after I left the non-profit job I had after my short stint teaching after college, a police offer pulled me over for speeding. Since my license was suspended, they impounded my car. My biggest concern was no longer finding a new job, it was determining if and how I could avoid jail time. Good news: I didn’t go to jail.

From this point on, I needed to redesign my life so that I could survive without a car. This was soon after I left the non-profit job I started after teaching, and I was in the process of looking for a new teaching position. My search was on hold because there weren’t many schools in New Jersey I’d be able to travel to without a vehicle. I did find a job, working for a financial company, and moved somewhere that would allow me to have a convenient commute using mass transportation. I gave up my Civic to a relative.

Eventually, I had my license reinstated and the relative returned the Civic. As a result of my problems, though, I still had large auto insurance bills that plagued me for years. Through this debacle, I learned a few lessons about responsibility. Today I can look back and be glad I’ve been able to make better choices this past decade.

Here are some things I’ve taken away from my earlier mistakes, and maybe they’ll be appropriate for you.

  • When you first get a car, learn how to take care of it.
  • When someone sends you a bill, don’t ignore it.
  • If police are involved, take care of the problem as soon as possible.
  • If you owe money to the courts, it’s not going away, and it could become a legal issue.
  • If you have no money to pay traffic fines, find the money.
  • Keep your address current and on file with the division of motor vehicles.
  • Don’t speed.

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Over the past few days, I considered making some drastic changes to the way I report my finances at the end of each month. I’ve been trying to decide whether it makes more sense to separate my business accounts from this report and report the numbers separately as I did a few years ago, remove the business accounts altogether, or leave the report the way it is.

I’m not sure how relevant my business bank accounts and receivables are to my personal finances. I transfer as little as possible between the business and personal accounts to keep my income taxes low, so most of the revenue stays “in the business.”

I didn’t change the report for May before putting together this article. These numbers include my business accounts and personal accounts commingled, like usual.

I’ll need to start making some decisions about how to better manage the business cash. I wrote about a friend of mine who was looking for better interest rates for his business’s cash and he decided to take advantage of business CDs offered by a local bank; I prefer to avoid long-term CDs with the rates currently so low. I’m not sure an investment account for my business is the right approach either, so I’ll ask around among colleagues to get some ideas.

I expected to see a seasonal dip in business income in May, like in 2009 and 2010, but that was not the case this year. Keep reading to see the numbers. You can see last month’s numbers have been revised upward; I expect the same to happen this month as more business invoices are calculated.

Read the full article →

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Holidays are about two things: family and food. Halloween is no different. Although families celebrate some holidays with a large meal, with ingredients like turkey, ham, fish, potatoes, and pies, the central food theme of Halloween is candy.

Once a year, everyone is provided an excuse to eat the stuff that parents always told them would rot their teeth, and not feel guilty (or as guilty) about it. The costumes can be entertaining, and I try to reward the better costumes I see with the better candy. For this Halloween edition of the Carnival of Personal Finance, I’m looking at some of the better and more popular candy for the holiday.

The Carnival of Personal Finance is a weekly celebration of the best articles covering a variety of money-related topics from the blogosphere. Consumerism Commentary initiated the Carnival in June 2005 and the event has continued on a weekly basis since then.

Editor’s picks

Twix is the only candy with the cookie crunch — at least it was when George Costanza said it. Twix was first produced in the United Kingdom in 1967 but didn’t find its way to the United States until 1979. The Twix bar was known internationally as “Raider” until 1991 when the brand was changed worldwide.

Here are our favorites for personal finance articles this week:

FT from Million Dollar Journey presents Wealth Tips for New College Grads. Here are strategies for going from a net worth of a negative $160,000 to a positive $500,000 in seven years.

Jenn from Paying Myself presents I thought I was supposed to be rich.. We tend to think lawyers are rich — or at least financially secure — but there may not be much truth to that stereotype.

Ryan from Cash Money Life presents Guaranteed Ways to Get Fired, and says, “It’s easy to get fired. Just follow these tips. Or, if you like your job, do the opposite and make yourself indispensable.”

Neal Frankle from Wealth Pilgrim presents Private Career Colleges – Calculate the Value. Are private career colleges worth the cost of tuition?

Bob from ChristianPF presents 7 Reasons To Rent Instead Of Buying A Home. If you are considering purchasing a home, think through these advantages of renting before you buy.

Nicole and Maggie: Grumpy Rumblings presents Another comment on doing what you love. Should do what you love or go where the money is? This article tackles to age-old question and helps explain the main purpose of a college education.

Betty Kincaid from Control Your Cash presents Debunkery yet again. Brett Favre’s riches are derived from one thing: how much revenue he can generate for his organization.

Continue reading for more of the best personal finance articles from the past week. Read the full article →

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Your Opinion: Will You Buy GM Stock or Cars?

by Flexo

In April, I noted that General Motors repaid taxpayers for the company’s government-initiated bailout loans in full. There has been quite a discussion about this repayment, but the main points are that the loans accounted only for a small portion of the bailout, and one could consider that the loan repayment was possible only due ... Continue reading this article…

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Honda and Toyota Recalling 1,200,000 Vehicles

by Flexo

Honda just announced a major car recall due to faulty brake systems. The company is concerned that owners using brands of brake fluid other than Honda’s own may experience problems resulting in a fluid leak, degrading the brake system’s performance. This affects 470,000 Odysseys and Acura RLs, made from 2005 to 2007. A few days ... Continue reading this article…

4 comments Read the full article →

Flexo’s Investment Portfolio, 3Q 2010

by Flexo

Last quarter’s devastating investment performance resulted in an overall annualized return of -9.33 percent. The fact that the S&P 500, the benchmark I use for my investments, faced a -15.14 percent annualized return at that point was little consolation. The third quarter of 2010 proved to be kinder to my investments. I can’t take much credit for ... Continue reading this article…

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An Oil Change Every 3,000 Miles is a Waste of Money

by Flexo

When I graduated college, my father surprised me with a car: a very used 1987 Toyota Celica. I didn’t know much about owning a car at the time, and the Celica required quite a bit of car. For example, it required not only replacing engine oil occasionally, it required filling engine oil from time to ... Continue reading this article…

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