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I knew Isell was living with the Fat Cats...
25 NX 450h+ / 24 Sienna Plat AWD / 23 Civic Type-R / 21 Boxster GTS 4.0
2011 Hyundai Sonata, 2014 BMW 428i convertible, 2015 Honda CTX700D
I bet the cat feels the same way :P
And tried to sell it an extended warranty.
Anyway, as promised (for getting my gold star) I have a sales story, not the most exciting, but there might be something of interest. My neighbor decided to buy a new Lexus, really for his wife. The main reason for buying a Lexus is because his son sells them. They were only going to give him $500 for his 1998 Lexus trade in vehicles, so he decided to sell it privately.
He put it on Kajiji (I assume that is in the U.S. - a free place to list your items for sale). He got a few calls from people who would buy it unseen, but he would have to ship it to them....that is a scam that has been going on for awhile now. You send the car and the check bounces.
He got one call from a real possible customer. He was an orthodontist from India and he couldn't get aq job here doing that so he was delivering pizzas. He test drove the car....I saw them squealing around a corner and flooring it down the street. He agreed to pay $2000 for the car and gave a deposit of $500, and he bought it "as is".
After 2 days he changed his mind...he wanted it safety checked or he wouldn't take it. My neighbor took the car in for a Safety, and the cost was $800. My neighbor told the guy, he would split the cost of the Safety, $400 each. At first the guy refused and wanted his deposit back. My neighbor said, he would give it back to him, once the car was sold to someone else. After a few minutes the buyer said he would take the car, and split the cost of the Safety Cerificate.
My neighbor did get a bankdraft for $2400 less $500 = $1900. This was done on a Saturday so we are hoping it was a legitimate bank draft, and not forged.
I guess if it all works out he will be happy to clear an extra $1100 by selling privately.
He did have to avoid the scammers who say they are buying sight unseen, and he has to hope the bankdraft clears. Personally, I don't think I would have sold it privately. We all were surprised that he couldn't sell a fairly descent car, a Lexus that actually runs for $2000...he really only had this one person that was interested.
When he told the guy he wanted to hold the deposit until it was sold he told him there were lots of other calls coming in so he missed a good chance to sell it to someone else!!!!
2017 MB E400 , 2015 MB GLK350, 2014 MB C250
I hear ya Isell... I have been in service for the last ten months and it is non stop 10 hours a day.... I eat lunch at my desk because there is just so much to do (commenting about the bowl conversation earlier- hey ya have to do what you have to do) now I still sell a couple cars a month but they are my repeat customers and in the end most won't dicker over the sticker too much cause they are aware of the service I will provide them with their vehicle... but after reading over some of these posts its still the same old thing.... people just afraid of paying too much and walking over $100 is ludicrous.
GP
$800??? Sheeesh. First if the buyer wants a Safety check he should pay for it himself. Second... paying $800 on a safety check on a $1,000 car that's 12 years old sounds nuts. And third, safety check? Is that like checking the brakes and tire pressure? Sounds like a rip off.
They're all saving up big stacks of cash for that car purchase.
Spending money that took years to accumulate is hard.
Sign and drive days are coming to an end. Prices should fall accordingly.
2013 Mustang GT, 2001 GMC Yukon Denali
Just to explain. In order to sell the car, all the safety items have to be working. So, it does mean an inspection of the car. But, it also means paying to have the items repaired and up to standard. I believe he had two items that had to be repaired, one was a crack in the shield that protects the steering (I am not sure what it protected though) and the other item I forget. But, if the items, like the exhaust system have to be replaced, it can get very costly. If buying a used car, it is best to make sure it comes with a safety certificate or an agreement the seller will pay for any repairs, because the repairs could cost more than the car.
2017 MB E400 , 2015 MB GLK350, 2014 MB C250
Nice to hear from you GP. Some people were confused and thought you left for the "service" thinking military service.....and didn't come back!
So, we should ask you some service questions. 1) I know you wouldn't do this, but could you see situations where the service department could make it more profitable for a service person or for the dealership to push uneeded repairs?
2) Is it easier dealing with customers in the sevice department compared to the sales floor?
3)What is your worst experience so far?
Thanks for checking in, I thought we lost you. :shades:
2017 MB E400 , 2015 MB GLK350, 2014 MB C250
Richard
I sold a car privately once---an MGB. If the buyer's wife had not worked at the bank, I would never have gotten my money. Knowing the bank president helped me. Even at that, it took over a year to get all of the money. He made her make monthly payments from her salary. It was one of those deposit situations. Her husband left me a deposit and disappeared with the car supposedly to go get the rest of the money. My stupid mistake was allowing him to take the car. I was much younger then and very trusting of other people. Never again.
Richard
I find your statement to be a very profound one. I believe that a lot of us who are retired have that feeling. We recently did a $7K project for our home. We didn't have to do it; we just wanted to do it. I thought at the time of the long hours and hard work that it took to save that money. It's not having the money that's a problem; it's just letting it go. Car purchases are big ticket items. It's easy to hesitate even when you see some models that you like. It's a lot of money.
Richard
It is suspicious in some ways. He has his training from India, but he said he wants to get a job, which implies working for someone. Usually orthodontists, open up an office and work for themselves. Also, I would not be sure if his qualifications from his home land would let him register here. Similar to the US, the qualifications are higher for that career than it is in most countries.
I asked my neighbor if he got a certified check. He said a bankdraft should be just as good.......he hopes! :sick:
One thing about your bad experience. It is nice when those things happen when you are younger and when you are not out too much money...or even better can get your money back.
I remember my parents cosigning a loan for a person renting a room. They were shocked to find the guy skipped town and they were responsible for the loan. That made a big impression on me. Many people don't realize what co-signing really means...they think it is like a letter of reference. It means they are on the hook if the loaner doesn't pay up!
2017 MB E400 , 2015 MB GLK350, 2014 MB C250
I just recently semi-retired, but maybe people who have been retired for awhile can help me figure this out;
*You retire and you calculate how much income you will have, from the government, pension plans, investments etc..
*Sounds good so far, but then prices seem to double about every 10 years depending on inflation etc. I know a hamburger that cost $5 10 years ago is now at least $8 and probably $10.
So, my question is, how do you account for a diminishing source of income, while facing increasing costs? Does it all work out any way?
I don't know where the retirement/savings post is. Besides, if I don't have enough money to live on I won't be buying any more new cars, so it does fit in somehow!
2017 MB E400 , 2015 MB GLK350, 2014 MB C250
That is why banks and merchants push credit cards so hard and much of the reason why most people are too far in debt.
I guess the change is complete now. I have become my father. And that is a good thing.
2013 LX 570 2016 LS 460
Thank goodness we don't have that problem here in the states !! According to the guvmint, we don't have any inflation, so us retirees don't get a cost of living increase. Congress keeps getting cost of living pay raises but they are special and more deserving. :mad:
2013 LX 570 2016 LS 460
Gotta love that small print.
2011 Hyundai Sonata, 2014 BMW 428i convertible, 2015 Honda CTX700D
I retired from the Federal government about five years ago. Thankfully with a pension, but the pension by itself does not cover all our expenses, so we do take out some money from our savings/investments every year.
How you keep up with inflation: It's a balancing act for everyone. If you have a 401(k) or IRA, some of that should still be in equities so it can continue to grow tax-deferred. But you also need to protect your capital, so maybe 40% or so of your overall financial assets should be in bonds, money market accounts, and similar low-risk assets.
Of your total financial assets, the rule of thumb is you should be safe taking out no more than 4% a year for starters. Whatever that dollar amount is, increase it by the level of inflation each year. In other words, if inflation is running at 3%, then figure 3% more of your original 4%, so the next year you would be taking out 4.12%.
However, if the market goes down significantly, maybe you might not want to give yourself that "raise." Perhaps better to re-set your withdrawal at 4% of the new, lower amount.
The best thing you can do for yourself is to avoid debt. If at all possible, get your mortgage paid off. If you use a credit card, keep a running tally just like you would a check register, and don't charge more than what you can pay off every month.
I admit we have not completely followed this advice ourselves, in that we still have a mortgage. But we have no other debt at all.
Re buying cars, I am a big believer in paying cash for your cars, especially if your spouse would be looking at reduced survivor benefits for your pension and/or Social Security if you should kick off this mortal coil prematurely. Not nice to saddle a widow/widower with a fixed payment for debt while on a suddenly reduced income.
That is the Bianca R. theory of financial planning in retirement, in a nutshell.
I never heard of that “Kajiji” thingy here in the states but there are a lot of those types of places that I’m not up to date on. We have Craig’s List here in the states which I’m told is free and everyone tells me that’s where I should advertise the old appliances that are still clogging up the basement since our kitchen re-do. I’m reminded by ‘you know who’ that we still have them and I hear, “WHEN ARE YOU GOING TO GET RID OF THOSE THINGS? IT’S ONLY BEEN SINCE JANUARY, YOU KNOW”!!! :mad: every time she stubs a toe on one while rummaging around down there.
I really dislike trying to sell them and am ready to put them out at the curb unless some of you guys would like to come get some 10 year old , but in perfect operating condition, white appliances. It would be a good opportunity to meet ya.
jmonroe
'15 Genesis V8 with Ultimate Package and '18 Legacy Limited 6 cyl
Strongly agree. Since my wife & I adopted this policy back in the early 90s, we've found that we keep our cars longer than we used to. Picturing yourself writing one big check instead of many smaller checks over the course of 5 years effectively dampens your desire for a new car. As a result, we don't buy a new car until (a) we really need it & (b) we've identified a replacement that we just love.
People sometimes ask if paying cash saves you money. The answer is that it does - but not in the way that some might think. Paying cash saves you money by keeping you out of car dealerships.
Good point. When you look at your "car savings account" you know immediately if you can afford to go car shopping or not.
I found that saving up was nearly painless by having a fixed amount regularly, automatically, going into a good mutual fund every month. Fortunately the fund made me more money than a plain ol' savings account would have, and that helped a lot.
Biancar, I really like your rules for living off your savings in retirement. I really like that 4% rule, I have never heard that before and it makes a lot of sense. I just envisioned that whatever we got in interest we add to our government pensions, and if it is a good year we go on trips and spend, and if it is a bad year in the markets we eat cat food.
I have been able to figure out that about half of savings should be in safe income producing bonds or dividend paying stocks. At least if the market is down you can still live off of interest and dividends etc., and not dip into equities.
I like your idea of paying cash for a car too. We have become used to owning our cars and enjoying the feeling that they really do belong to us and not the bank.
The other thing we want to do is spend every penny so there is nothing left over. Children have to fend for themselves.
Thanks for taking the time to explain in such a clear and concise way, much appreciated, and I love that 4% rule.
2017 MB E400 , 2015 MB GLK350, 2014 MB C250
I think Kajiji is in Canada, but they did list the car on Craig's list too. They only had the one real possible buyer though after 3 weeks.
I think appliances would go pretty quickly on Craig's list. You just have to be able to post it and let go of your possessions.
We put an old style 50 inch TV on Kajiji, and I got a reply within 10 minutes. It did need a projection tube that would cost $200 so I listed it for $25. If I disposed of it I would have to take it to a dump and pay $50 to dispose of it. The lady was so thrilled I told her it would be free (just get it out of my house). We loaded into her Voyager and it was great to see it go.
2017 MB E400 , 2015 MB GLK350, 2014 MB C250
You might also enjoy reading the book "Die Broke." The theory is that you need to protect your income by buying insurance (like long term-care insurance) and immediate annuities with some (definitely not ALL) of your retirement money, so as to guarantee a stream of income that will last as long as you do. Of course if you are fortunate enough to have a guaranteed pension, then you do not necessarily need to buy another annuity on top of that; you can figure out how to annuitize your assets yourself (which is basically what the 4% rule is all about), thus keeping everything under your own control.
You don't want to just spend all your gains when you have a good year in the market, because you will need that excess to balance out the down years. If you have a Bible handy, you might want to re-read the story of Joseph and the king, and the dream about the seven fat years and the seven lean years. Those lean years do have a way of coming around every so often. ;-)
We also intend to spend all, or nearly all, of our assets, as we have no kids and I would rather give to my nieces and nephews and to charity while I'm living and can see them enjoy it.
These are exactly the kinds of things we put on craig's list, especially anything you are tempted to put on the curb for "free". Free on Craigs list usually results in items being gone in about 5 minutes. We got rid of an entire kitchen worth of old cabinets that way, far cheaper than the dump.
For items with value my wife usually prices them on Craigs list at about 35% of value. People usually snap them pretty quick and don't haggle much over price...
Certainly hope my sons can say that one day.
Your Dad would be happy to hear what you've said.
In theory I admire all the financial advice. In practice four kids drain resources in a hurry but I'm not complaining. I'm happy with how things are. In a couple of years I'll be at pension+social security = salary and that's OK by me.
I suspect if I hadn't been dealing with health issues my entire life the whole picture would have been different but again - you play the hand you're dealt.
I have done a monthly budget since the day that we were married. That Saturday morning, I sat down and played with the budget. Just for fun, I doubled all of our expenses---lights, heat, water, gas, food, dry cleaning, hair cuts, insurance premiums, etc. I figured that doubling the figures would be a hedge against inflation. Subtracting those new figures from our two pensions and Social Security, it looked really good.
We put in our retirement papers the following Monday morning. I decided to take a $500 per month cut in my retirement so that my wife could get my full pension if I died before she did. I told her to go ahead and take her full pension since hers wasn't as big as mine. Well, it has been five years and we haven't had to touch our savings yet. We lost the annual increases in our pensions and Social Security for 2010 and for 2011. (Thank you state and federal governments!) So far, we are fine. After retirement, I did consulting work up until this year just in case we needed it. Fortunately, we didn't have to have it for expenses. So far so good. We also have long term care insurance so that neither spouse will be financially burdened if one has to go to a nursing home. A nursing home can deplete your assets very quickly. Both of my parents ended up in one. They lost everything that they had. Doesn't seem fair, does it?
We didn't realize that we would be coming into some inheritance money either. That has built up our savings substantially. That is one thing no one should EVER count on. Some people do and they get real disappointed. Families are funny entities. You never know what they are thinking. Some spend all that they have while you're thinking that they are loaded. Others leave you nothing when you just knew that you "kissed up" all of those years. Life is funny. My FIL dearly loved my wife---his only little girl. Late in life, he married a young, pretty thing. She got it all---$5 million. Then lo and behold, out of the blue, my wife's old aunt left her half of some very valuable farm property That's what I tell my niece and nephew. If it's here we want you to have it. If not, you'll have to do what we did---work longer and save some money. We never asked our parents for a dime except once. In 1969 I borrowed $20 from my mother just before pay day. I immediately paid it back. I have always had a lot of pride about money. I don't like owing people. I earned my way, and I can thank my parents for those values.
Richard
Richard
There's another thing we have in common. My brothers would borrow like mad from the folks. I never did. I've done some dumb things over the years on the financial front but have been good on not hitting people for money.
Good advice on the not counting on inheritance. My dad in particular made a big deal about how well off we'd be when he was no longer with us (but not $5 million...). Well, a few months before he passed his investments got wiped out by the banking collapse in 08. What are you gonna do? He was so sure that he had the best stocks in the world that guarding against that colleapse never entered his mind.
To me I see it as money that I never really had. Same way it was at the top of the real estate bubble when everyone wanted to tell me my house was worth twice what it is. I could probably have sold it for that at that point but again it wasn't real money in my head.
You could drive (<- official car reference) yourself crazy thinking about it.
Richard
The health things gets nuts. I intentionally went in to a field to lower stress even though it paid less just because of what stress does to me physically. A load of teh stuff happens anyway but you take as good care of yourself as you can and this has worked for me.
I don't quite have the pension deal that you do but, like you, I'll take lower pension so my wife will still get the check when I'm gone. She's 8 years younger than me and in good health so the odds are pretty overwhelming that she'll outlive me. Of course I still plan to live to be 100 despite it all....
He didn't call to ask for money. He would never do that. He just needed to vent. I offered him money, but he wouldn't take it. Life is strange. He and his wife always made much more than we ever dreamed of making. Yet, here I am offering him money. He would do the same for me. We never know where the twists and turns of fate will take us. My wife called his wife this morning. She told her to swallow her pride and take some money from us if they needed it. I married the right girl.
Richard
Re the cost of nursing homes - hmm, I'm thinking it's not quite fair to say someone "lost" everything. More like "it cost them everything..." But you know what, isn't that one of those things you save for? You hope to never need it, but if you do, that's what the money is there for. If you have insurance, great. If you use your own funds, well, be grateful the funds are there to use, because being able to pick a nice place is really worth it.
My mom spent three years in an assisted living/nursing home sort of place before she passed on. She had some long-term-care insurance, so that paid part of it, and she used some of her own money. We kids were very relieved that she had the money available to her to stay in a good, well-run, home-like place, with excellent care and a pleasant, relaxing atmosphere. If it cost us some of our inheritance (which I'm sure it did), so what. It was HER money, not ours, and I'm glad she used it for herself.
I'm spending my money on myself too. That's how I ended up with my 2005 Redline 350Z Touring Roadster. Having a nice convertible, driving top down along the beach road, under the sun and under the stars, will give me lots of nice memories to look back on come the day I'm in a nursing home myself. ;-)
Once that title changes hands, the car belongs to the new person. Safety check, emmissions check, etc....are all the things I'd wash my hands on and tell the new buyer he's on his own.
I know when I sold my late parents' Merc GM a year or so ago, the eventual buyer was from KY instead of my home state of OH.....about 90 minute drive from me. Once we agreed on a deal, before I even went to the BMV with the buyer to change tags, I went to his bank with him to get cold, hard, cash (IIRC, I gave my late Mother somewhere around 50 hundred dollar bills from that sale).
I had people who looked at the car and wanted me to do everything from finance the car for them, to paying for their mechanic to look at it. NOPE! Car was sold as is/where is. Don't like the terms on my deal, there's a whole newspaper classified section filled with cars that are for sale.
I am pleasantly surprised at how many people at this post feel that way. It seems many of you have successful retirements because you have followed that philosophy. I doubt too many young people would see things that way. And, when we see how many car salespeople have stories of customers coming in only wanting to know what their monthly payment will be...well, it is frightening.
Do you get sticker shock when you look at the price of a new car? When you bought the Explorer it was probably around $25k, but maybe $35k if you were to buy a new one? Does that bother you at all?
Thanks for explaining how you crunched the numbers and it worked out the way you calculated.
2017 MB E400 , 2015 MB GLK350, 2014 MB C250
Nice to hear from you GG. I agree with you, but I think in the case of my neighbor he only had one real call in 3 weeks. I would think that a Lexus is so popular that a lot more people would have been interested for $2500. My neighbor said, if it runs at all it should be worth at least $2000, and his was a 1998 in immaculate shape. I think he went along with the safety certificate ($800 split between the buyer and seller) because he only had that one person who was interested. I think he should have tried an ad in the newspaper or AutoTrader...maybe he is getting the bottom of the barrel with a free ad in Craig's list. Maybe that is a lesson in itself...you get what you pay for, even in advertising.
2017 MB E400 , 2015 MB GLK350, 2014 MB C250
Well, it's now three weeks and no return call or fax with my pricing. I guess either he is too busy, or not interested. I am not in a hurry, it is just that Ford has some pretty aggressive pricing now. I'll keep you posted........
That said I am pretty much a nut for looking for the best rate I can. The loan on my wife's Camry is at 2.9%. That is cheap money. I still pay more than amount due every payment to whittle down the principal.
I guess it depends on whether or not your spouse is left behind. In that case, the first spouse lost everything and there was nothing left for the remaining spouse. Example: My father went first---brain surgery, rehab, nursing home. After four years, the well was pretty near dry. When it happened to my mother, there wasn't enough left. That's when Uncle Sam (Medicaid, not Medicare) steps in---they spend down your remaining assets---your savings, house, cars, take your monthly pension and your Social Security. They make sure that nothing is left. My sister and I were allowed to keep the furniture, china, silver, etc. That was it. Dad's dream of leaving us some farm land was gone. While that would have been nice, I'm just glad that they were provided for in a good place.
You mention saving for a nursing home. The average person cannot save that much. Example: My FIL died last year after 48 months in a nursing home at $7K per month---a total of $336,000. He had no long term care insurance. Fortunately, he had plenty of money so his young, pretty wife could pay the bill. Many people would not have that kind of serious cash, especially if the second spouse had to go to a nursing home. Lesson here: Have some long term care insurance.
Richard
It's funny that you mentioned that. My wife gets on me all of the time about not understanding why things cost so much. I rant and rave about the groceries, gas, clothes, etc. Except for necessities, if it isn't on sale, I don't buy it.
You're right on the money about the Explorer. It was $23,500 in 2003. The new ones are around $35K. It does bother me a bit. My wife points out that we can't get a nice vehicle if we don't spend around $40K. I know that she is right, but that is a lot of money. Writing that check will be painful for me, regardless of how much I like the car. Every day that I drive the old Explorer I think, it's paid for and my money is still in the bank. I like that feeling very much. Here's the situation: Do I like that feeling better than the feeling of having a nice, new vehicle? I'm still debating that one. Then again, Mother Nature will take care of that feeling after a while because the Explorer will finally wear out.
Richard
I'm just curious, what free options wouldn't you take?
Also, will you have to change your name to canadianford?
Add to that they weren't ever good with money. He, like my uncle - dad's youngest brother - was in sales and never did much budgeting for lean times. that's a mistake in any field but critical in sales.
BTW - he was a car salesman, so my kids have that gene....
For me it's a sunroof. 2 of my 4 cars have them and I certainly didn't ask for them.
Just another way to let rain get on the inside when you park it on a sunny day which turns rainy about the time your food comes and you're not looking outside.
Seems all Denalis and all Avalons have sunroofs so you can't get them without.
2013 Mustang GT, 2001 GMC Yukon Denali