• Family sedan: Chevrolet Malibu at $21,605, 30/22 mpg
• Small car: Ford Focus at $15,520, 35/24 mpg
• Upscale sedan: Lincoln MKZ at $32,695, 28/18 mpg
• Pick-up: Chevrolet Avalanche at $35,460, 20/14 mpg
• Green car: Ford Escape Hybrid at $29,645, 31/34 mpg

• Luxury sedan: Cadillac DTS at $46,280, 23/15 mpg
• Small SUV: Ford Escape Hybrid at $29,645, 31/34 mpg
• Mid-size SUV: Ford Taurus X at $28,270, 24/17 mpg

So if you are planning to buy a new car this year. You have a list of cars to short list from. Have something to add to this from your experience. Let us know.

I always thought it was best to buy a car for oneself even if it takes a longer time to save up the money, as you can have the car as long as you want to, but the cash incentives associated with such deals, makes me think twice now.

This is how the website works, It displays a listing of leases that people want to get out of and these people actually offer cash incentives to get out of the deal. When this is taken into consideration along with the fact that the car would have been maintained well with low miles on it, leasing could be best option for some.

Advantages of Leasing:

1. By making a thorough search it is quite possible to spot a profitable deal.
2. Leased vehicles in general would have run for only low km and hence would be in a good condition

Disadvantages of Leasing :

1. For remainder period of the lease you would be responsible for everything
2. Carefully one needs to calculate various aspects as some deals are quite expensive.

Keeping these things in mind, I think its quite an attractive package and if you think leasing suits you better, then go for it.

Have you leased a car? Share your experiences below.

My day doesn’t seem complete until I post something (apart from the regular IRS notifications and discussions about stimulus) that would help everyone save some money, so here is today’s saving strategy. Few tips to save on your auto insurance.

Here is a list of some of the best Auto Insurance companies around where you can compare your current Auto Insurance with what these companies will give you -

1. 21rst Century.
2. All State.

Usually we  shop for Car Insurance when we have just brought a new car or if we are smart enough, we start thinking about it when we are planning to get a new car.

Auto Insurance Related Things To Keep In Mind When Getting a New Car

1. Keep your deductible high

Deductible is the amount of money that you would be paying towards your claim, if the amount of your claim is $1500 and your insurance company pays $1000, the remaining $500 is your deductible.If you increase your deductible from $500-$750, then your premium amount would get reduced. This way you would be able to save upto 10%.

2. Keep your automobile & home insurance in the same firm

Purchasing  your home and auto insurance from the same company could allow some discount to be enjoyed for both the policies. Sometimes it is possible to save up to 10%.

3. More thank one vehicle?

If you have more than one vehicle, insure them under the same scheme.

4. Compare Auto Insurance

Before purchasing a new car, get insurance quotes of models you have short listed to know which one will take up less money to be insured.

5. Shop around a lot before settling for an insurance policy

Its no harm to spend some time in doing this research. With advent of internet and its million gifts, it gonna take less than an hour to compare rates.

6. Do not over speed for thrills:

You not only end up paying speeding tickets, but also begin to mess with your auto insurance which i am sure you do not intend to.

Here is a list of some of the best Auto Insurance companies around where you can compare your current Auto Insurance with what these companies will give you -

1. 21rst Century.
2. All State.

Have anything more to add to this list? Let us know, we are eager to hear.

But there is always the other side of the coin and this program is no exception. The Cash for Clunkers program too has its shortcomings. This improper execution of the program by the government often resulted in overloading and even crashing of the government computers. The information that was conveyed among the consumers and the car dealers were insufficient leading to their frustration. In addition to this, the removal of Junkers from the market led to a loss of business to some mechanics adding to their sufferings. The mechanic shop such as a transmission-rebuilding shop has been shut for almost past two weeks because people preferred to buy or lease a new car over rebuilding their old cars.

All these side effects have added fuel to the discussions, whether the government should bring another CARS program seeing its initial success or not. There is an urgent need of making the reward as a function based on comparison of the efficiencies between new cars and the clunkers. Although the original bill was very strict in terms of mileage requirements but it did not go well and failed to get through the Congress. But this time we should hope to get miles per gallon requirements to be even stricter so that more savings of m.p.g. fetch us better rewards.

We expect that the next edition of the CARS program will encourage more creative provisions for the people working in automobile industry such as conversion of diesel cars into engines run on vegetable oil. This will equip the consumers with an incentive in addition to better efficiency.

The automobile industry has received a much needed boost with such a large amount of cash flowing in as a result of the Cash for Clunkers program. These initiatives in the automobile industry must continue with stricter mileage per gallon and relaxed requirements.

This can be achieved by promoting the trade of “clunkers” for the more efficient and brand new vehicles. Officially, it is a part of the Consumer Assistance to Recycle and Save (CARS) Act. This Act is recently passed in the House and is in the Senate currently.

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Till today this Act is not finalized or forwarded to the President. Hence, the chances for changes still remain.
Requirements for old Trade-In Vehicles:

There are some requirements in the House Bill stated below:

* Your vehicle must be in the condition of driving.

* The vehicle must be insured to same owner for at least a year prior to trade in.

* Your vehicle must be manufactured in the model year 1984 or later.

* The vehicle must have a combined fuel economy of utmost 18 mpg.

If you are involved in trading in any “Work Truck” which is defined having 8,500 to 10,000 pounds gross vehicle weight rating (GVWR), your vehicle must be a model of year 2001 or later .

Another requirement might be that your vehicle should worth less than $3,500 or $4,500 for quantifying. Otherwise you can sell the vehicle all by yourself rather than opting for the voucher.

You can check out for some cars below:

Nissan Maxima 1995:

This car requires usual oil change and such stuffs. The starter may require replacement along with the power windows. Even after fifteen years of service it can run great. The fuel economy combined may be 21 mpg for this car.

Pontiac Grand Prix 2002

The interior of this car may be cheap but it is mechanically tough and does not require constant repairing. The combined fuel economy is 21 mpg.

Hence, neither of the cars qualifies. It reflects that the most beater cars won’t qualify either. Hondas, VWs and Toyotas can be thought of here. A Honda Civic 1985 model generally gets over 30 miles per gallon. Therefore, this law is for SUV and truck owners mostly. You may qualify for the voucher with an improvement of 1 mpg in case of large trucks and up to 4 mpg for the passenger cars.

It is not necessary that if you qualify you must go for it. You may get fuel cost saving but until and unless you pay in cash you will have monthly auto loan payment. Any new car has high insurance rates. Therefore, you will have to bear collision or comprehensive coverage.

Paying a ransom for your car insurance? See if you can get a better rate – Reduce Car Insurance.

So finally here i am to clarify the many different doubts arising in the minds of millions. If you’re one among them, your purpose might be solved. Give it a try!

First of all i would like to clear the misconception that is widely prevailed with regard to the word ‘Voucher’.

In this issue it is not a coupon that would enable someone to get something free of cost. So the next question would immediately spring up in your mind:

BTW make sure you are not getting ripped by your Car Insurance company. Check here to make sure you are getting the best deal clicking here.

What is CARS Voucher and how does one get it?

The program CARS does not offers the applicant any physical voucher. Instead your old car if qualified as a ‘clunker’ can serve as your voucher, in the sense , the clunker money that you would receive for your car can serve as your down-payment for a new vehicle.

Your first few steps with your dealer:

Do not forget to take your basic documentations like driver’s license, insurance card, title, registration and necessary proof. Now the minimum eligibility criteria you must be looking for before availing this option  are:

1) Your car must not be older that 25 years from the date of application for CARS voucher.

2) It should render highway fuel economy of 18 miles per galleon or less

3) Be in a condition where driving doesn’t become impossible

4) Be insured continuously to the same owner at least for last 12 months

If you owe money on your clunker:

Just like any other trade-in transaction, you will get assistance from your dealer with which the title could be released by exploring various options offered. The CARS program in anyway is not associated with funding the purchase of your new vehicle.

Checking on your local car dealer:

NHTSA is a system that is creating a huge database and other programs that would enable the CARS program to transfer funds to the dealers who are registered. Only dealers who satisfy the minimum requirements specified by the program would be allowed to access this system.

If you still have any queries , kindly post them to get an updated version of this article in answer to your relevant questions.

Find out if you can reduce your Car Insurance by clicking here.

The institute analyzed driving laws for teenagers and their effectuality in curbing crashes.

In its report the IIHS reasons that states which implement tougher licensing laws for a graduate driver witness a decline in calamitous crashes and the accompanied insurance loss. IIHS rated the states based on their license systems and surprisingly the ones rated as good experienced 30% lesser fatality rates as compared to states with a poor rating.

IIHS’s report gives an account of the progress in teenage driving laws made by each of the states and provides a guideline for further progress.

This first of a kind research gives a measure of the GDL components that are efficacious which will provide state legislatures which are planning to make reforms in their GDL laws. This is indeed a commendable effort on IIHS’ part.

According to the IIHS rating none of the states in 1996 could have been rated as good. Today as many as 31 states including D.C. are rated as good, 12 as fair and 7 as marginal. The good news no states are rated as poor.

The GHSA says that almost 49 states as of today have some system of a 3 stage GDL. Most of the States have progressed to toughening their teenage driving laws through a variety of protagonist efforts of the community for safety and an extensive research which supports the effectualness of the GDL legislation.

IIHS identified chief GDL components that the states would have to implement in order to bring down the rate of teen crashes placing a strong emphasis on components such as passenger and nighttime restriction.

Chief GDL components are:

Minimum age for Learners permit should be 16.

Learner stage which lasts at least 6 months.

A minimum of 30 – 50 hours during the learner stage supervised and certified by the parents.

An intermediate stage till 18 years which includes:

A 9 p.m.-10 p.m. curfew on driving out at nighttime

No teen passenger or a maximum of one teenage passenger accompanying the driver

A ban on using any form of communication devices while driving

The study indicates a growing need of increasing the age for driving for teenagers nationwide. At present the minimum age for a learner’s permits is 15-15 ½ years. The state of New Jersey issues learners permit starting 16 years of age but do not issue an intermediate permit till 17 years of age, this is backed by previous IIHS research stating that the law saves teenage lives. Safety of the teenage drivers is of paramount importance, however economic and political issues pertaining to teenage licensing have to be incorporated into the policy discussion. GHSA supports the GDL laws and seeks the congress’ assistance to provide financial incentives in order to further the states to persist in improving GDL laws.

Please visit www.iihs.org to know more about the IIHS Teen Driving Analysis

State teen driving laws are available at: www.ghsa.org/html/stateinfo/laws/license_laws.html.

Sunil Chopra (Kellogg School of Management) says that the U.S. manufacturing industry is in a state of flux. He believes that either you can look at what went wrong with automakers like General Motors, or you can learn from manufacturers who survived.

RSM McGladrey’s head (manufacturing practice) Tom Murphy believes that U.S. manufacturers’ volumes still rank higher globally. He adds that manufacturing sector has experienced progressive changes and innovations which would not be affected by the recent blows to the carmakers.

The Bureau of Economic Analysis ascertains that U.S. has seen a downfall in its dependency on manufacturers for growth, with 11.5% contributing to GDP compared to 28.3% in the 1950’s. Job creation in this sector has witnessed a steady decline from 19.5 million in seventies to 11.5 million in 2007. Economic analysts say that such a trend in the recent past signifies a refined economy and higher manufacturing output.

Shrinking might signal growth says Professor James Schrager (University of Chicago Booth School of Business). He says that productivity is higher than ever with lesser manpower, which is a good sign. Manufacturers who survived the downturn like Toyota Motor Corp., Caterpillar, etc are not only fierce but global leaders in their business domains.

Such companies, unlike Chrysler and General Motors assessed the challenges that arise out of globalization and adopted their operational activities and company structures accordingly. They focused on innovating products and services and being the first movers thereby becoming anchors of change.

Change was not smooth, for Caterpillar this meant hassles with the UAW but continued efforts yielded results bringing down the cost of workforce. Caterpillar restructured its organizational structure and gave more flexibility to its business units by making them SBU’s.

GM faltered as previous board executive Elmer Johnson pointed out in 1988 that a small minority of the executives have been made accountable and responsible for achieving the company’s operational goals. CEO’S that followed never tried to initiate change in company culture due to which complacency set in.
Lean system of production:

Lean management and Just in time principles replaced batch processing. U.S. automakers never took notice of such concepts partly because of their contract with UAW restricted them. (E.g. pink slipped workforce was assured 95% of their salary and benefits).

Japanese firms captured the market which led the U.S. automakers sitting on excesses of inventory. Having slowed down the production to balance low sales, they still had to pay salaries to the idle workforce. Cars were sold at deep discounts which worsened their condition.

Alex Blanton analyst at Ingalls & Snyder believes companies like GM could have been as successful as the Japanese carmakers provided rules and contracts with UAW are reworked.

The Federal Stimulus Bill mostly emphasizes on spending increases and tax cuts to revive a badly ailing economy. The package includes aid to states and local governments to help them avoid cuts in medical coverage and school funding. The bill also would extend unemployment benefits and give unemployed workers subsidies for health care coverage.

About 3.6 million jobs have been lost since the United States entered a recession in December 2007. The world’s largest economy contracted by 3.8% in the last quarter of 2008 and most economists predict even worse in the current quarter. So the major portion of the tax relief in the bill would go to individuals which include a $500 refundable tax. There is also emphasis for traditional job creating programs such as highway construction and mass transit projects.

Apart from that tens of billions of additional dollars would be distributed to the states, which face the prospect of deep budget cuts of their own. This money marks an attempt to ease the recession’s impact on schools and law enforcement agencies. With funding for housing and other provisions, the bill also makes a down payment on Osama’s campaign promise of creating jobs that can reduce the nation’s dependence on foreign oil.

Obama’s Stimulus Package Details and Breakdown 2009

Now let’s have a close look at the whole $ 819 billion stimulus check and see how the money is going to be distributed among various sectors. We can do by breaking it up in to the broad areas in which it is panning to help.

Direct Payments

First of all the stimulus bill’s spending are divided in to direct payments to individuals (includes unemployment compensation or tax credits) and purchases of goods and services, either directly by the government or indirectly in the form of grants to states and local governments.

Now let’s have look how the entire boll amount will be distributed among various sectors

Tax Breaks

The House would pull over around 64% of the entire package or $525 billion in to the country’s economy within 19 months through spending and tax breaks

Health, Human Resources, Education and Labor

In the Stimulus package $91.3 billion has been reserved for these sectors. But most of the funds in this portion would not be spent before September 2010. Only about half of the cash proposed to renovate elementary and secondary schools would be used in the next 19 months.

Medical Provisions

An estimated $ 89.7 billion dollar has been devoted for the medical sector in the stimulus package. Most of this money will be made available between 2009 and 2010.

Tax Credits

An estimated $ 82.1 billion has been reserved for tax credits and the major half of which will be distribute within the next two years

Transportation and HUD

$ 62.3 billion dollar has been allotted to this sector of which just one third will be allocated for highway construction by the end of fiscal 2010.The rest will not be touched now.

State Fiscal Stabilization Fund

A total of $ 79 billion in this stimulus package is reserved for  this fund which will be administered by the Education Department .The programmed will help the  state and local governments  to fund education and other services in order to ease the pressure on them.

Miscellany

Some other areas covered by the economic stimulus package are as follow:

$ 48.9 billion is allotted to the Water and Energy sector

$ 47.7 billion for unemployed workers and struggling families

Health insurance assistance for the unemployed will cost $40.8 billion

$ 26.9 billion for Agriculture, Nutrition and Rural Development

Health Information receives $ 20.2 billion

Now I am sure you will have a lot of questions for the government tax man so I am publishing the IRS help line below.

Contacting the IRS By Phone

I’ve listed the phone numbers for the IRS below.

Expect to wait on hold:

I tried calling up IRS stimulus number but not suprisingly like most other support numbers I was greeted by a nice message that told me the IRS was experiencing heavy calls volumes regarding the economic stimulus/rebate. I didn’t wait to see how long it was going to take. However from other accounts I have heard that you might as well put it on speaker and go about your regular job untill your hear somebody from the other side.