Book Summary Preview : The Savvy Consumer

The Big Idea
You’re considering shelling out a large amount of cash. New appliance? New insurance policy? Maybe a cruise to the Bahamas? You want to be sure you’re getting your money’s worth. So many business books talk about making money, but how many deal with the other side of the coin, spending money? Finally, here is a guide to help you with as wide a variety of purchases as you could possibly make in your lifetime. From cars to building renovations, education and insurance, The Savvy Consumer teaches you to watch out for traps, to filter sales talk, and so much more.

Before You Buy
It’s the same case with any big step in your life: be prepared, and here’s how. First off, check out the company that’s offering you the product or service, and do this before you pay for it. Check their history with government and consumer services bureaus. Then, read the contract. Remember: a contract doesn’t have to have the word “CONTRACT” displayed across the top.

Bear in mind that the possibility of returning your purchase within three days does not apply to all items, and is a practice not enforced in all establishments. Find out first if the company has such a policy, and factor this in your considerations. And perhaps among the most important things you’ll have to consider: mode of payment. Credit cards are recommended because you are protected by law and by the credit card company.

Cars
It’s perhaps one of the most important purchases you’ll make in your life is you car, so take care of it. If you’re buying a new car, familiarize yourself with the jargon and watch out for fees you don’t need to pay, especially in your contract. If you’re buying a used car, however, be sure you’re not getting ripped off in your attempt to save money, because you can’t return a used car. Have a trustworthy mechanic examine every aspect of the car thoroughly, and get all the dealer’s promises in writing.

Beware of odometer fraud. Twelve thousand miles a year is average for a car. Any less and it’s probably been tampered with. Check for loose or missing screws or other parts on or around the dashboard. Be equally meticulous when it comes to taking out a car loan, and be wary of low interest rates, or low monthly payments. If you’re using a car infrequently, maybe you’re better off renting?

If you already have a car and you run into trouble, are there laws in your area that dictate what you should do if your car is in an accident? If you’re having it repaired for one reason or another, maybe you can get a referral from your insurance company. Make sure the repair shop you go to is familiar with your car’s make and model. If your car breaks down somewhere and needs to be towed, watch that the tow truck doesn’t damage your car, or that they don’t bring you to a mechanic who might overcharge you because he pays the towing company a commission.

Of course, there’s also the problem of the whole car going missing. In the US, thieves steal a car every 23 seconds. Unfortunately, some car owners just ask for it. One survey found in one parking lot that 12 percent of the cars had been left unlocked! These are often favored by those just looking for joyrides. But locked doors won’t stop those working for chopped shops, as often a car is more valuable in pieces than whole, and it doesn’t take long to take a car apart.

Some simple measures can help keep your car safe. Park in well-lit, well-populated areas. Don’t leave the engine running. Use devices that lock the steering wheel, as the fuss of tampering with this in addition to the car’s locks can dissuade thieves. Use an anti-theft device, and consider installing an ignition-kill feature in your car. . . . . . . . . . . . . . . .

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