My Two Dollars

11 Tips For An Accurate Vehicle Repair Estimate.

David — Wed, 17 Mar 2010 14:30:10 +0000

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My car knows when I get paid. Like clockwork it demands a new repair with every paycheck. As a result, I’ve had to gather estimates for such big jobs as replacing the timing belt, repairing all four brakes (including replacing pads, shoes and rotor).

Much to my chagrin, I learned that although a timing belt costs just $55, estimates for replacement ran as high as $850. Why so much? Because two out of three shops recommend also replace the water pump, front engine seals, drive belt, idlers and tensioners.

Likewise with the brakes. One quickie brake shop said I had to replace pads, shoes and rotors on all four brakes. A visit to CarTalk.com revealed they may have been trying to take me for a ride.

1. Get Recommendations

The best referrals usually come from family and friends who have had positive experiences with a repair facility. Ask the mechanic for references and follow through. There are several places you can check online, including your local Better Business Bureau and (my favorite) NPR’s Car Talk “Mechanic Files,” which includes customer reviews by city and state.

2. Get It In Writing

If repair work will run over $100, make sure you get a written price estimate. Deal face-to-face with the facility, not over the phone. Research prices on Internet auto-repair database to make sure you’re not being overcharged. Once you receive an estimate, the repair shop legally can’t charge you more than 10 percent above the estimated costs without your prior approval.

3. Estimates Should Include

* Vehicle Information: Including year, make, model, mileage, etc.
* Car Parts: Including description, quantity and price. This portion of the estimate also should detail whether replacement parts will be new, used or rebuilt (see #4).
* Labor: Work is usually charged in 15-minute increments. Ask about the estimated speed for each shop. You don’t want to end up paying more because of the shop’s slow repair speed.
* A Clear Explanation: Many work descriptions are poorly written and difficult for the layman to understand. According to the Car Guys, A clearly written estimate should read something like, “Performed 30,000 mile tune-up in accordance with manufacturer’s specifications. Changed oil, oil filter and air filter. Installed new cabin filter and performed all necessary checks, controls and procedures, including road test (miles 30,123 – 30,125). Performed lubrication services and confirmed proper operation of the vehicle. Set tire pressure and checked fluids, belts and hoses. Note: car pulls slightly to the left. Needs Alignment.”
* Summary of Charges: This is the total cost for all labor and parts. Check the math to make sure it’s accurate.

4. Parts

Original Equipment Manufacturer (OEM) parts usually are the most expensive as they’re designed for your specific vehicle. Aftermarket parts are manufactured by a third party for use in a variety of vehicles and usually are less expensive. If you’re vehicle is an older make, used or rebuilt parts are even cheaper and could last the remaining life of the car without trouble. Just make sure you won’t experience bigger problems down the road with the cheaper options.

5. Miscellaneous Charges

These costs may include but are not limited to shop supplies, including chemicals, rags, hazardous-waste disposal, waste oil, etc.

6. Flat Fees

Flat Fees are services not broken down into parts, tax and labor, making it difficult to compare prices. While most flat fees are competitively priced, mechanics also might use flat fees as an opportunity for “menu selling.” In other words, a tune up might be listed at $100 or a transmission flush at $90. Ask what is involved for each item and confirm the shop will actually provide the service based on the car manufacturer recommendation.

7. Warranty & Recall Coverage

Ask if the repair might be covered by an existing warranty or recall and, if the repair shop won’t honor these terms, shop around or go directly to the dealer. You’ll still want to get a written estimate for any costs not covered. When having recall work performed, make sure you won’t be charged if the recommended remedy doesn’t work. Ask in advance if there is a diagnostic charge for which you’re responsible.

8. Avoid Open-ended Questions

Ask some shops, “Do I need a tune up?” or “Do I need a new starter?” and the answer will always be yes. Such questions imply you don’t know your car and may be open invitations for unscrupulous mechanics to recommend unneeded services. Check the vehicle manual for the manufacturer’s recommended schedule of tune-ups, oil changes, tire rotations, etc.

9. Is it Necessary?

Is the recommended repair really necessary or could it be postponed? Some fixes are necessary for safety reasons or to prevent future problems. If your car may well go to the scrap heap before the repair truly is necessary, then why throw away the money? When in doubt, follow this list of priorities: Engine and suspension work first; tires second; extras like stereo and air conditioning next; and appearance (minor dents and dings) last.

10. Don’t Be Forced

Even if you had your vehicle towed to one shop after it died, make sure you get an itemized estimate from a second shop. You may find another mechanic offers a better price and will tow your car to the second shop for free.

11. Know Before You Leave

Make sure you understand exactly what work will be performed on your car before you leave it at the shop. Never provide carte blanche to do any work they find necessary; you might as well hand some mechanics a blank check. Provide the shop with your contact information and ask them to call you if they run into any problems not listed in the estimate.

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Why You Need And Should Already Have An Emergency Kit.

David — Mon, 15 Mar 2010 14:30:00 +0000

Although this post is not directly related to personal finance issues, it does have something to do with it in terms of your financial security. For a long time now, I have had emergency kits in my car and in my home in case I suddenly had to vacate the house or got trapped away from home. After 9/11, the tsunami in Thailand, Hurricane Katrina, and the earthquakes in Haiti and Chile, I figured that if it can happen to all of those people then it can happen to me. We all go through life figuring that the bad stuff always happens to other people, but someday the other people could be you and you better be prepared.

I figured listing what was in my kit would help others prepare better for any kind of emergency. I have a backpack that I can grab and go in case of an emergency regarding my home or neighborhood. Here is what I have in my backpack:

Cash – $200 in small bills if not more. If tragedy strikes, banks and other electronic payment systems may be down and if that happens, cash is king whether for food, water or gasoline.
Food - MRE’s (Meals Ready to Eat) that could last 2 weeks if I ate them sparingly. These are loaded with carbs and calories to keep you going, and they last on average of 5 years.
Water - Besides a bunch of small water pouches (think Capri Sun or the like), I also have a bottle for water and water purification tablets if I run out of my own water and need to sterilize water from another source.
Clothing - A complete change of clothes consisting of socks, underwear, sweatshirt and hat. I also have gardening gloves in case I need to deal with something rusty or sharp. A rain poncho was thrown in for good measure as well.
First Aid Supplies – Band-Aids, Neosporin, gauze pads, wrapping tape, razor blades, small sewing needles, a compass, ace bandage, etc. I also have candles, lighters and matches, glow sticks, etc.
Medicine – If I have a prescription medicine, I make sure I have a bottle of it in my kit. According to my doctor, pills that are solid (not the gel liquid kind) last WAY longer than the expiration date on the bottle. So I make sure I have backup pills in the bags that will last until I can get my hands on more.
Personal Documents – This is where the personal finance aspect of this post comes in. In my bag, I have a small ziploc baggie filled with photocopies of my driver’s license, birth certificate, social security card, a few of my credit cards and a contact list. I also put a USB thumb drive in this bag that has the same info on it as above but also has all of our financial account numbers, phone numbers, insurance cards, first aid info and local emergency information. This usb key is the key to your recovery after an incident, as it allows you to have one place where all your information is stored.
Communication - I carry a windup emergency radio that has weather and other bands, and also has a flashlight attached. I also have a solar battery charger to charge my cellphone in case the juice runs out before I can find power.
Protection – I have mace and a rather large knife that can cut food, wires, etc etc in case I need it. You never know what may happen once the SHTF!

In my closet, stored in a big old WWII trunk my grandfather gave me, is all the stuff I would need if I had to stay in my house with no food, water or electricity for a while. I have a duplicate set as above, but with way more water, food, blankets, candles, an old telephone that doesn’t need electricity to work and assorted other things. Oh, and I have a giant axe, too…just in case.

Some of my friends think I am a little over the top, but I would much rather be over the top and ready than not have anything and depend on the kindness of strangers in an emergency. You do not know how people will react if something really bad happened, and I do not want to find out. I want to be completely self-sufficient and ready for anything. Living through 2 pretty big earthquakes back in CA has taught me that stuff can happen at any time and you are never ready for it. But having the backup materials just in case is definitely a start. The way I am set up, if I lost everything, I still have everything I need to re-start my lives… I can get on the phone right away with my financial/insurance companies and get the ball rolling on any help I might need. I cannot stress enough for people to be ready….and if you still do not do anything, be sure to have backup copies of your important documents in several places. If a fire struck your residence, you might lose everything. So be sure you have a backup you can turn to to start getting your life back in order. Buy yourself a USB drive, put your docs on it, encrypt it, and throw one in your desk at work or your daily bag you carry. But that is the bare minimum; think of the people that went through Katrina and then imagine something like that happening to yourself. Would you be ready?

Photo from Shutterstock

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Money Quote Friday – Frugality Established In The State.

David — Fri, 12 Mar 2010 14:40:30 +0000

“If frugality were established in the state, and if our expenses were laid out to meet needs rather than superfluities of life, there might be fewer wants, and even fewer pleasures, but infinitely more happiness.” – Oliver Goldsmith

If only…

Hey, My Two Dollars is looking for guest posts for the next few weeks while I go on vacation. So if you are interested, feel free to email me or use my contact form to get in touch. Thanks!

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Backup Your Computer In Several Places…Or Else.

David — Thu, 11 Mar 2010 18:56:38 +0000

A friend of mine just had both his computer AND his external backup hard drive die on the same day. Rare? Yes…but not impossible. While I have never had anything so catastrophic happen to my computer setup, I have always backed everything up both here in my house and online each day. I use an external Western Digital Passport drive with Time Machine (the built-in Apple backup application) that backs up my data every hour, and I also use BackBlaze to do daily backups over the internet. That first online backup took a few days, but now it only takes a few minutes per day (at most) because it only backs up changed files. My friend luckily used Mozy for his own online backup, so within a few days they sent him all his data via mail for him to reinstall on his now fixed computer. Thank goodness for online backups, because if he hadn’t been doing his, everything on his computer and external drive would have been gone – music, family photos, important documents – everything. And since my entire life is now digital (all my music, videos, “paperwork”, etc) is on my computer, backups are incredibly important to keep me from losing all my stuff. The lesson learned here? Don’t just do external hard drive backups, but also start doing online backups as well. BackBlaze is $5 a month for backup, and it’s the best $5 I have spent lately. Backup your computer…or else.

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Current Costs To Check Baggage On Different Airlines.

David — Wed, 10 Mar 2010 14:25:36 +0000

As if you needed yet another reason to avoid flying, right? I haven’t flown in almost 3 years now, choosing instead to take Amtrak or even drive rather than step foot inside an airport. Every airline, except Southwest, now charges at least $15 to check a single bag aboard your flight – which is ridiculous, if you ask me. All it leads to is people trying to cram everything in oversized carry-on bags, leaving no room for everyone else on board to even bring a backpack. And since the story of increasing costs/headaches with air travel is on the news every day, I went and looked up the costs to check bags on every major U.S. airline…and this is what I found.

Alaska Air – $15 for the first bag, $25 for the second bag. Overweight bags are an extra $49.

American Airlines – $25 for the first bag, $35 for the second bag. Any more bags than that are $100 each. Overweight bags are an extra $50.

Continental Airlines – $25 for the first bag, $35 for the second bag. A few bucks cheaper if checked online. Overweight bags are an extra $50.

Delta Airlines – $25 for the first bag, $35 for the second bag. A few bucks cheaper if checked online. Overweight bags are an extra $55.

JetBlue – $0 for the first bag, $30 for the second bag. Overweight bags are an extra $20.

Southwest Airlines – $0 for the first bag, $0 for the second bag. Overweight bags are $50.

United Airlines – $25 for the first bag, $35 for the second bag. Overweight bags are an extra $125. (Yikes)

Virgin Airlines – $25 for the first bag, $25 for the second bag, and so on. You can check up to 10 bags. First bag can weigh up to 70 lbs with no additional charge; bags 2-10 can weigh up to 50 lbs.

So in addition to the hundreds you pay for the tickets, parking, transportation to and from, you now have to pay money just to bring a bag with you. My recommendation? Fly Southwest or discover traveling by Amtrak, my favorite way to go!

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On Taking Your Social Security Payments Early.

David — Tue, 09 Mar 2010 14:30:18 +0000

My mom finally called the other day to find out about taking my dad’s social security payments. We have been telling her to look into it now that she is getting close to the retirement age, and I wanted her to find out the different monthly dollar amounts she would receive if she started taking payments now at 65, in a few years at 67, or in 5 years at 70 years old. I am so glad that she called, as after she listened to the guy at the SS office and letting me run some numbers, we decided it was best for her to start taking the payments now rather than waiting a little. While some people think it’s a bad thing to take the payments somewhat early, I figured it was actually beneficial to my mom to do so.

The guy at the SS office explained it like this – while you could realistically expect maybe an extra $100 per month (more or less) for life if you wait a little longer, you are also giving up a few thousand dollars each month by waiting to take anything. Let’s look at the math for a second, with some hypothetical numbers:

Scenario #1 – Mom waits 2 years to start taking monthly payments. Payment at that point is $2,000 per month. If she lives till she is 85, that’s a total of $432,000 being paid out over 18 years.

Scenario #2 – Mom starts taking payments now at 65 years old. Payments would be $1,875 per month. If she lives to the same 85 years old, she would be paid a total of $450,000 over 20 years.

See the difference? Just by giving up $125 per month and starting to take the payments now, she has the potential to receive much more in payments over the long term. The guy at the SS office was right – sure, you may be giving up a little per month for life by taking payments now, but how many thousands are you giving up per month until you start taking the payments? So if you or a loved one is nearing Social Security age and contemplating when to take the benefits, make sure you do the math and see the whole picture – not just the monthly dollar amount. Giving up a little bit each month could mean getting much more in the long term!

Photo by Fabricator of Useless Articles

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Sunday Money Roundup – Move Your Money Edition.

David — Sun, 07 Mar 2010 14:30:56 +0000

Have you heard about the Move Your Money campaign yet? Thousands of people have pledged to move their money away from the casino-style Too Big To Fail banks and give their money to community banks and credit unions. I moved all my money away from Bank of America into Schwab – which while not a credit union, they didn’t take a dime of bail out money. If you bank with one of the huge banks, you may want to check out the campaign! On to the roundup…

Your Finances 101 talks about a recent experience with Pep Boys with Don’t Be a Mule: Auto Repair.

Free From Broke wants to know if you have what it takes to manage your own money.

Frugal For Life talks about 5 Steps to the Essential Frugal Life. Always great stuff from Dawn.

The Wisdom Journal has a great post up about 101 money myths. Check it out.

DebtFree Adventure provides readers with a Simple Family Budget Spreadsheet.

Money Smart Life tells you when you can expect your tax refund.

Frugal Babe does some More Estate Planning. Have you started your estate planning? Me neither.

Early Retirement Extreme talks about the 100 Things Challenge. Is it a realistic way of looking at your “stuff” or just a minimalist fad? Great post.

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My New Favorite Site- Groupon: Collective Buying Power.

David — Fri, 05 Mar 2010 17:46:01 +0000

I found this site today and I wanted to share it with you guys as soon as possible. Groupon features an unbeatable deal on the best stuff to do, see, eat, and buy in your city, and by promising businesses a minimum number of customers, they get discounts you otherwise would never get. To sign up you just enter your email address and your city, and each morning you get a new Groupon that you can buy into. If enough people buy the deal, then everyone gets it. If not enough people do, the deal is canceled. And if you refer a friend to the website and your friend makes their first purchase within 72 hours from the time they click on the referral link you send them, you get $10 worth of credits in your account. (No, I didn’t put my account referral in this post, as I just wanted to tell you guys about it) It’s a pretty simple premise, really, and I wonder why I didn’t think of it myself. Here is what the site looks like:

I looked at Los Angeles (since I am moving back there this year) just to see what today’s deal was, and it was for a 40% discount on a Jeep-Drawn wagon tour of the San Andreas fault. $45 instead of $75…how cool is that? Anyway, I highly recommend you check it out for your area and see what kinds of deals they have. Seems they have press from every major newspaper yet I hadn’t heard of them before. So glad I found them, though!

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Money Quote Friday – For Most Of Life Edition.

David — Fri, 05 Mar 2010 14:30:28 +0000

“For most of life, nothing wonderful happens. If you don’t enjoy getting up and working and finishing your work and sitting down to a meal with family or friends, then the chances are you’re not going to be very happy. If someone bases his [or her] happiness on major events like a great job, huge amounts of money, a flawlessly happy marriage or a trip to Paris, that person isn’t going to be happy much of the time. If, on the other hand, happiness depends on a good breakfast, flowers in the yard, a drink or a nap, then we are more likely to live with quite a bit of happiness.” – Andy Rooney

I could not possibly agree more with that statement. Stop chasing the major events once in a while and take in what you already have. Enjoy your weekend…

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Filing A Tax Extension: Don’t Pay Someone, Do It For Free.

David — Thu, 04 Mar 2010 21:52:19 +0000

You may start seeing services offering to help you extend the IRS tax date of April 15th, giving you more time to file your taxes. Some of these companies will actually charge you a fee… for something you can do on your own for free. For individual filers, if you are not able to file your federal individual income tax return by the due date, you may be able to get an automatic 6-month extension of time to file. To do so, you must file Form 4868, Application for Automatic Extension of Time To File U.S. Income Tax Return by the due date for filing your calendar year return (usually April 15) or fiscal year return. For details on filing extensions with special circumstances (military, out of the country, etc), check out the IRS page dedicated to these extensions. But please, don’t pay a company to do it for you – it’s free and available to most everyone.

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