Coffee heat rising

Buying a car? Watch out for rips

Speaking of the GM bankruptcy,  as individual dealerships crash and burn, some of them are taking customers with them. CBS MarketWatch reports that car dealers are failing to pay off loans on traded-in cars and often are not sending in payments for registration and taxes. This is usually not done with criminal intent but happens because the dealer’s creditors freeze its funds as its cash flow stops. Understandable, but it doesn’t change the fact that consumers are left holding the bag.

If you’re buying a car through a dealership, you need to be careful. A few things to consider:

• Don’t buy a car now unless you absolutely must. If the purchase is in any way optional, delay it until the chaos afflicting the industry settles out.

 If you still owe on your present car, sell it privately rather than trading it in. This will allow you to pay off the loan yourself. Also, private sales usually bring a better price than trade-ins.

 Try to get the dealer to let you send payments for the taxes, title, and registration yourself.

 Purchase only the most reliable vehicle brands, such as Honda and Toyota. There’s some question whether state lemon laws will apply after a dealer closes, making purchases of less reliable vehicles even riskier.

 Be aware that when a used car dealer buys new vehicles wholesale, the warranty starts running at the time the dealer buys the car, not at the time you buy it. Thus even though you’re the first owner, you’re still buying a “used” car without the full warranty.

If you’re buying used, consider spending a little extra to go through a private sale. This will at least assure that you can pay the taxes, registration, and title yourself.

What a pain! My Sienna is ten years old. I’d planned to trade it in this year, but with my job ending in December, obviously I can’t do that. I never pay for cars on time, but sure can’t afford to pay in cash now…or any time in the predictable future. As a practical matter, I may never be able to afford another car, certainly not new. My plan now is to drive the gas-guzzler for at least another five years; ten if it’ll last that long.

After that? Well…in five years, the light rail will come right past my neighborhood. Maybe I won’t need a car after this one gives up the ghost.

Copyright © 2009 Funny about Money 

How to raise the hair on your head

A FaM reader responded to Funny’s sassy rant about the use of Roundup and other politically incorrect lazinesses, with the suggestion that perhaps this was a little too blithe. Unfortunately, she sent her observation as an e-mail rather than as a comment, but along with her remarks she sent a link to an eyeball-popping documentary that I think you should see

It doesn’t pretend to come at you with no agenda—every now and then the narrator, who is seen reading reports that have been leaked to regulators or to investigative reporters, exclaims “it’s unbelievable!” But that honesty itself lends to the production’s credibility. I was a reporter for a fair number of years, and I’d say this is a good job. Sources appear to be checked, double-checked, and confirmed; most are primary sources with good to excellent believability.

You need to know about this. Set aside an hour or so and go there. Watch that.

Copyright © 2009 Funny about Money

Credit card companies to penalize “freeloaders”: What’s your plan?

As we know, credit card companies call people who pay their bills on time and in full “freeloaders,” and management highly resents such deadbeats because they’re not cash cows like people who sink over their heads in usurious debt. Credit-card issuers make something on us bums, of course, because each charged transaction nicks the merchant a percentage of the sale price. But it’s nothing like the criminal interest rates and extra gouges they get from people who run a tab on their cards.

Well, if you’re one of those losers who pays your bills on time, watch out! The legislation pending in Congress to limit credit-card penalties and curb wacko punitive fees is about to backfire on you. In response to having to quit ripping off feckless consumers who can’t or won’t clear their credit-card debt, the nation’s banks are about to curtail cashback and other rewards, eliminate grace periods, and sock every card user with an annual fee. As American Bankers Association CEO Edward L. Yingling told the New York Times, “It will be a different business. Those that manage their credit well will in some degree subsidize those that have credit problems.”

Don’t think so, Ed. Charge me a fee to carry your plastic around in my purse, and you can have the piece of plastic back. I, for one, do not and will not pay an annual fee (or any other kind of fee) for the privilege of going into debt at a usurious rate. While it’s a great convenience to have an American Express and a Visa card in hand, it sure doesn’t come under the heading of “necessity.”

So, what will we do if suddenly all our credit card issuers inform us that cash kickbacks and airline miles are things of the past, that we now have to pony up $25 or so to use any credit card, and that the grace period for paying one’s bill has died?

The AMEX cashback scheme is the sole reason I use my Costco American Express card for every purchase I make. The reason I got the AMEX card in the first place is that Costco quit accepting any other credit card at its gas pumps, which dispense the cheapest gas in town. Costco won’t accept cash for gasoline, and I don’t care to use a debit card. If AMEX reneged on its cashback plan, I probably would continue to use the card exactly as I do now, because it’s a great convenience and because the “float” between charge date and payoff date makes it easy to manage my budget. 

However, if they demanded an annual fee, I’d cancel the card in an instant. Ditto the Visa card.

There are some good reasons to have a credit card, most of them related to booking travel arrangements and to the extra back-up in case of a dispute with a merchant. I’d be sorry to see the cards go, but go they would if I were made to pay to carry them around.

In lieu of cards…what? There are several fine alternatives:

• Use a debit card instead. Costco’s gas pumps accept debit cards, and so do most other merchants. Disadvantages: it’s a fair way to bounce a transaction, and there’s little or no protection if someone steals the thing and hacks into your account.

• Pay recurring bills with EFTs from your checking account, not by charging them on your credit card. Disadvantage: some vendors won’t accept EFTs. But they may change their attitude when their best customers dump credit cards.

• Use cash. Some people find they spend less when they carry cash instead of a charge card. I personally have the opposite experience: cash flows through my fingers like water, and at the end of the day I have no clue where it went. But I suppose you could keep every receipt and enter it in Quicken or Excel; if that helps you keep a grip on credit-card spending, it presumably would do the same for cash.

• Use checks. This creates a paper trail, just as charge card statements do. Disadvantage, of course, is that checks are an expensive nuisance. 

My strategy: First, to find out if policies to shaft us “deadbeats” apply to the Visa cards available through the credit union. If not, get one of those; if so, get a debit card and start using lots more cash.

Times reporter Andrew Martin reminisces that in the good old days only the best consumers could get credit cards—and indeed, I do recall the time when flashing a credit card advertised your status. Now everyone will know that only the worst money managers have to use credit cards—pulling out a credit card at the grocery check-out will signal fellow shoppers that you can’t afford to pay your bills in cash.

What do you plan to do if your credit card issuer yanks your benefits and proposes to charge you an annual fee?

Your megacorporation “values” your business

Why do faceless corporations work so hard at being faceless? And why do they veil their facelessness behind messages that claim to “value” their customers’ business? The fact is, if they valued your business they wouldn’t treat you the way they do.

For the second time in three months, Cox has failed to send a printed statement. When you call, the customer service rep gives you a scripted story: “We printed it on the 26th of last month. If you didn’t get it, you need to talk to the post office.” Understand: they’ve already wasted a significant slab of your time and tortured you by forcing you to listen to the most hideous Muzak turned to high volume, and now they want you to waste even more of your time trying to get through to an even larger and even more understaffed bureaucracy, the U.S. Postal Service, whose fault this clearly is not!

I will say, they’re better than Qworst. At least you can get through to a human being, and at least the human being has a sense of humor!

Customer: “You know, your bosses need to know that real musicians actually make real music, and they record it. You can get real music to put on the phone.”

CSR: [laughs] “Well, if it’s any comfort, sometimes we have to listen to it, too!”

Customer: [laughs] “You poor kid! What an awful job!”

[CSR and Customer laugh at Cox’s unholy treatment of its customers and employees.]

Thanks to the miracle of the Internet, it’s possible to get your hands on the names of living, breathing executives of faceless corporations, and on the addresses of their corporate headquarters. Ergo:

Jimmy W. Hayes
Chief Executive Officer 
Cox Enterprises
6205 Peachtree Dunwoody Road
Atlanta, Georgia 30328

 

RE: (666) 123-4567 
Acct. No. 098-765-432101234 

 

Dear Mr. Hayes:

 

Once again, no statement from Cox has arrived this month. This is the second time in three months that a Cox statement has supposedly been sent and “lost.” I mailed your company a check for $71.65, the amount your spokesperson says is due, but of course in the absence of a statement I have no precise understanding of what I’m paying for or whether the bill is accurate.

 

I’m sorry, but I just don’t buy your customer service rep’s canned line that it’s all the Post Office’s fault and that because you guys didn’t send the statement I have to go waste still more of my time (it took over 10 minutes of listening to truly painful Muzak to get through to a human today!) by hassling the postal service. All my other bills appear on time. None of them ever goes missing. It seems highly unlikely that the U.S. Postal Service has something against Cox Communications and so is failing to deliver Cox’s statements and only Cox’s statements.

 

What seems more likely is that the statements aren’t being sent as a way to trap customers into missing a payment and being gouged unfairly with a late fee.

 

Please ensure that your staff sends statements in a timely way. The reason I asked Cox to send paper statements rather than dorking around online is that I’m getting on in years and do not remember things well. And I can’t afford extra dings on my bills for late payments.

 

Thanks for your consideration.

 

                                                                        Sincerely,  (etc.)

The “go talk to the Post Office” line is an obvious runaround. Even though these companies have monopolies or near-monopolies, you’d think sooner or later their customers would either find other ways to get what they need or simply abandon that service or product. Really. Will I die if I don’t have high-speed Internet? (Hmmm… Probably.) Can I get high-speed Internet somewhere else? (Evidently: a Google search brings up seven competitors on the first page!) Do I really need a land line? (Nope.) Can I get cell service with some other provider? (Indubitably!)

What is the matter with these companies that they can’t spare a little common courtesy for their customers?

Finding a human at a corporation that repels all boarders

Few things in modern life are more frustrating than navigating a punch-a-button telephone maze (these things are called “phone trees,” BTW) when you have a problem that needs the attention of a human being. By the time you reach an actual person, you’re peeved as all get-out. No matter how polite you try to force yourself to be, the poor wretch on the other end of the line hears your annoyance in the tone of your voice and responds in kind. It turns doing business with major corporations into a predictable exercise in rage.

And if you’re already enraged…well. The late great fight with Qworst was hugely complicated by the difficulty of getting in touch with anyone who knew what to do and who had the authority to do it. I finally found a snail-mail address for the home office at The Consumerist. After the dust settled, I posted a list of ways to reach a human being at a company that doesn’t want to speak with us troglogytes.

Here’s a site that does me one better, though: FIFTY ways to hack your way through to a live person! Check it out. Also check out the comments; one commenter is a former customer disservice rep who has some enlightening things to say about a few of these hacks.

Consumer Reports: Renew, or not?

I run hot and cold on Consumer Reports, the organ of Consumers Union, the nonprofit that has appointed itself the guardian of your interests and mine. In general, I do feel supportive of CU, because it has done some remarkable and excellent things for the common good. And since I can’t donate to every worthy cause that comes my way (or even to more than a couple of them), subscribing to CU’s magazine feels like a way of supporting the organization.

But. Though I do enjoy reading Consumer Reportsmost of the time, a number of issues about it bother me. Videlicet:
A paid subscription to the hard-copy version will not get you into their website. Annoying.
Once again, I started receiving hysterical “YOUR SUBSCRIPTION IS ABOUT TO EXPIRE” notices four months before the annual bill was due. That particular high-pressure sales tactic is not only annoying, it’s dishonest. It disturbs me to see an alleged guardian of the consumer’s interest engaging in a scheme to get people to pony up more money than they have to, sooner than they have to.
Sometimes their recommendations are strictly a matter of taste, and that opinion often doesn’t jibe with mine. Because Consumer Reports is so hugely influential, manufacturers will occasionally change products to accommodate something said in one of these opinion pieces. In at least one instance, this led to a change in a favorite shampoo’s formerly mild perfume, so that I quit buying it and had to to find another, more expensive product that met my desiderata (i.e., “doesn’t stink of some industrial chemist’s idea of what the sheep think smells good”).
Occasionally, their product reviews and advice are just flat wrong.

This month’s issue is unusually heavy on articles that fall into the last two categories.

Take, for example, “Vets Weigh In on Fido’s Food.” Parenthetically, the authors admit that seven of the eight experts in veterinary nutrition interviewed for this article were funded by the pet-food industry. That disclaimer out of the way (way out of the way), they then go on to report these worthies’ statements as gospel. One such statement was that pets are being made ill from homemade pet food, something that has gained popularity since the last episode in which hundreds (possibly thousands) of American household pets were poisoned by adulterants in animal feed.

It certainly is true that if you feed your dog table scraps, you’ll likely make Fido sick. Three reasons for that:
1. Onions (and other plants in the onion family, such as garlic, scallions, and chives) are toxic to dogs. They cause a type of anemia that can, over time, do the animal in. A large dose of onion can make any dog—especially a smaller breed—very sick, indeed. Most human food contains onions and garlic. Read the labels on the processed foods you buy, and you’ll be surprised at how many of your favorites contain onion. And sodium in various permutations. And sugar in many forms.
2.Few humans eat well consistently. We favor junk food that is high in salt, unnecessary fat, and sugar, and even if we cook at home, we’re likely to fry our food and sprinkle on plenty of salt and sugar. These ingredients are no better for other mammals than they are for humans. Of course, if you feed your dog junk food, you will damage its health just as you will damage your own health.
3. Chocolate and alcohol are toxic to dogs. People who feed their animals off the table are likely to let Fido clean up dessert as well as the entrée. A slice of leftover chocolate cake is akin to a meal of rat poison for your dog. And there are fools who think it’s funny to watch Fang quaff a beer. Did you know that “Boozer” is one of the commonest names for cats?

However, there’s a difference between throwing table scraps into the dog’s dish and actually preparing food that is appropriate for dogs to eat. It’s not difficult to prepare healthy dog food in your kitchen. The principle is simple, the same principle that underlies healthy human food: varied sources of starch (such a rice, potatoes, yams, oatmeal), varied sources of vegetables (green and yellow, not to include corn), and varied sources of protein (beef, lamb, venison, pork, fish, chicken, egg, cottage cheese, yoghurt). Meat items should be cooked and, IMHO, free of bones (I know, I know! But unless you enjoy paying for veterinary surgery, spare your dog the bones, especially cooked bones).

Condescendingly, CR tells us that “if you insist on making your own pet food,” you should go to websites certified by the American College of Veterinary Nutrition. Go there, click on “homemade foods,” and you’re directed to two sites where you have to pay to get pet food recipes. Understand: these are pay-per-recipe enterprises! The proposition is that you will pay someone to tell you to mix various combinations of three sources of starch, vegetables, and protein about 1/3:1/3:1/3!

Consumer-friendly, that ain’t.

This month’s matter-of-taste piece is a squib on coffee, in which the researchers tell us you don’t have to pay for Gloria Jean’s or Peet’s to get a decent cup of java, especially if (surprise surprise!) you dilute the stuff with milk and sugar. Peet’s is described as tasting “burnt and bitter” (might they accidentally have brewed up some Starbuck’s?). They do report that Dunkin’ Donuts, which IMHO offers up the best coffee of any fast-food joint, has a good decaf (though they fail to note the oxymoron). But they fail to discover that Costco’s dark roast coffee is the best buy on the brick-and-mortar market, with beans that are almost as good as the expensive “gourmet” variety at very reasonable prices.

And speaking of matters of opinion, we’re invited to peruse the latest and greatest in televisions, since after all we’re about to lose our analog signal and so this might be an opportunity to replace the old 90-pound clunker parked on a table in the living room. Under “Budget Buyer,” we’re told that “low-priced sets from major labels can be good buys.” Of these bargains, the cheapest “smart choice” is a Vizio 32-inch LCD set for $450. A sharp 42-inch LCD qualifies as “low priced,” too, at $1,100.

Four hundred and fifty bucks is low-priced? Get freaking real! If this is low-priced, then I am effectively priced out of the television market. I already know I can’t replace the handy little TV that sits atop the fridge, and so when digital finally arrives with a vengeance, the PBS News Hour will be history at my house. But evidently once the second-hand set I have in the TV room wears out (that would be the one that periodically tells me PBS, NBC, CBS, Fox, or ABC has “no signal”), I won’t be watching any television that can’t be downloaded for free from the Internet.

Then, by coincidence, we find one of my perennial sources of CR irritation, this year’s rehash of their vacuum cleaner ratings. As usual, Hoover and Kenmore are way up there.

Hoover used to make a great vacuum cleaner. Some years ago, however, the company was purchased by Whirlpool, which promptly junked up the product. So, of late the things are unreliable and inefficient. The changeover came about the time SDXB found a Hoover that was THE top-rated model, on sale at a smokin’ price at the Luke AFB Base Exchange. In fact, staff there had accidentally put the wrong price on it. But because SDXB found the thing with that price, they sold it to him…and sold him two more units at the same absurd discount, one for me and one for his daughter.

Minutes after the limited warranty expired, all three vacuums crapped out. They all died of the same flaw, and they all died within a week of each other.

Hoover, we understood, had taken planned obsolescence to the level of high art.

Interestingly, in this month’s issue, Hoover vacuum cleaners appear as second only to Simplicity as most unreliable among upright models, and third in the race to unreliability among canisters, after Electrolux and Miele. If these things are unreliable junk, then why are two Hoover uprights flagged as “recommended” and two canisters as “best buys”?

After the Hoover hat trick, SDXB and I each bought the highest-rated (expensive!) Kenmores. I hated my Kenmore. It was clumsy, difficult to use, given to falling over and whacking me on the foot, and generally a nuisance. Because my house had all hard floors, before long I took the thing back to Sears and then trotted over to Fry’s Electronics, where I bought the cheapest Panasonic on the shelf. The thing did all I needed it to and then some, and, years later, it still runs. SDXB, whose house was mostly carpeted, kept the Kenmore but was no happier with his than I was with the one I returned.

All these ruminations over the current issue lead me to ask myself: Why am I paying to have this magazine delivered to my house?

I think the answer is about to be I’m not.