Posted on 03/12/2013 7:43:13 AM PDT by Kaslin
Dear Dave,
I want to buy an inexpensive car, and I was wondering what you think about salvage titles.
Eric
Dear Eric,
It’s not impossible to find a decent salvage car. But I’d take extra precautions to find out exactly why it was salvaged. If it’s a salvage car because it was wrecked, I’d take a look at what kind of wreck caused the damage. Lots of people know how to repair and rebuild cars, so it might end up in better condition than before if you find the right mechanic. On the other hand, I’d probably walk away if the vehicle had been flooded. Some people claim they can fix waterlogged cars, but that’s a tough job. In most cases water just doesn’t do very nice things to onboard computer systems and wiring.
Regardless, do as much research as you can into the car’s history. See if CARFAX has a record. But if the seller doesn’t know anything and other searches don’t turn up good information, my advice is to say no. Make sure you check with your insurancecompany before you make the purchase too. Salvage cars are sometimes more difficult, or more expensive, to insure!
—Dave
Dear Dave,
What is your opinion on wholesale club memberships?
Anonymous
Dear Anonymous,
My wife and I are members of Costco and Sam’s Club. We don’t buy everything at these places, but do they save you enough money on some things to justify the annual fee? I think so.
The biggest problem most folks run into with wholesale clubs is overbuying. I mean, who needs nine gallons of mustard? You don’t, unless you’re in the restaurant business. So, if you don’t needat that level and won’t use at that level, don’t buy at that level! You’ve got to shop around and know your values.
Lots of people think overbuying isn’t a big deal, especially if it’s something that only happens by mistake once in a while. But the truth is it’s really dangerous. You should plan your shopping the same way you plan your budget—with great care and common sense. If you don’t, you can end up spendingway more than you can afford on things you’ll never use. Talk about dumb!
—Dave
Dfwgator says “Buy Low, Sell High.”
Where’s my radio show?
Not everything is an editorial.
You have one?
Dave Ramsey is a Columnist in the Townhall.com Financial Section. Doesn’t a Columnist write editorials. I don’t know why you put it in General Chat?
We pay $100 a year for our executive Costco membership. It was great in Seattle, when we had five or six Costco’s within a half hour of our home. But in central Kentucky we now have the one in Louisville which is about 90 minutes away.
But it’s still good. We go there every few months for stuff we need and I use the costco AMEX card to buy all my gas for my job that is 62 miles from my house. We get extra cash back for gas purchases. I just got the check for last year’s purchases: ~$450.
Dave’s advice is usually good but in this case the best advise is to stay away from salvage titles period.
A columnist writes columns.
It’s better than that DFWG....a lot of churches use his DVD money mgmt courses to teach newlywed s and other disaster endangereds I.e single moms how to keep themselves afloat. What seems like common sense to owls like us has completely eluded these unfortunates Sooooo Dave’s stepped in and saved them..... God bless him 4 it!
Yep you have to be very careful not to forget to factor in the cost of driving the family buggy....which is 50 CENTS A MILE !!!!!!!
I am a big fan of “buying smart”, which takes a bunch of things into account.
1) What is your total buying budget? If you are under budget for one buying period, can you afford to be somewhat over budget for the next one? That is, what is your budget +/- margin?
2) You can save a ton o’ money if you comparison shop at more than one store. Doing this just once should give you a blanket idea of what to buy where.
3) Store brands are often identical to name brands, and it is often worth it to change your tastes if they aren’t. Things like brand name boxed dry cereal and soda are a ripoff, so shop for sales on top of lower store prices or generic knockoff brands.
4) Get a vacuum storage device and learn how to Sous Vide cook meat. Advantages: lower price cuts taste better than expensive restaurant cuts; you can buy in bulk, cook and freeze; the meat is cooked perfectly every time, so is neither raw and spoiled or burned shoe leather. If you don’t want to buy a Sous Vide cooker, use a candy thermometer and check the temperature every five minutes for two or three hours. Here is a good primer:
http://www.seriouseats.com/2010/03/how-to-sous-vide-steak.html
5) Screen your coupons. Even with coupons, brand names are often still more expensive than house brands. Some stores double or triple coupons up to a dollar sometimes. Sales can be seasonal, by the store manager, remaindered items, loss leaders, or ordered by the parent corporation, which can result in ridiculously low prices.
Yes, buying a gallon of mustard when you only want about a pint seems ridiculous, unless the gallon costs less than the pint.
If you noticed he didn’t exactly say go with it, and I think his points are very well taken in regard why a vehicle was crashed and what the damage was. The important thing is as he says to find the right mechanic. To walk away from Waterlogged cars is good advise. Also his advice to check with CARMAX if it has any records on the car is good. As is his advice to check with your insurance company how much it would cost you to insure the car
Salvage titled cars are supposed to be junked out but that is not how it always works.
In this area, wrecked and flooded cars are considered “Totaled” and are given a “Salvage” title and sent to salvage companies in Missouri for parting out.
The company takes these cars, rebuilds them and runs them down into Arkansas where, for $50.00 they can get a perfectly clean title.
Then they are sold through car lots and auction houses.
We had an interesting case not long ago.
A man bought a car in Missouri getting his loan through his credit union. They held the title.
He failed to keep up payments and had the car towed to an impound lot. After 30 days the car became the property of the car impound lot.
The lot owner pulled the car down into Arkansas, and placed it on a lot there for sale with no title.
The Arkansas lot owner got a $50.00 clear Arkansas title and sold the car to a local man who borrowed money from HIS Arkansas credit union to purchase it.
The Credit union holds his Arkansas title.
The Missouri credit union found where the car was and repossessed it.
Now the man who bought it still is paying his Arkansas credit union while trying to find his car in Missouri that the Missouri credit Union has sold elsewhere.
What a mess!
*** stay away from salvage titles period.***
And stay away from older cars with clear Arkansas titles unless you can prove they did not come from a Missouri salvage yard!
In Georgia there is a constant stream of "wrecked but still drivable" vehicles moving down I-85 in convoys, usually with each manned vehicle towing another. They go to Mobile, Alabama get loaded on container ships and sold in Central/South America.
Would you place ‘Dear Abby’ in editorials?
Perhaps since both are giving advice perhaps advice would be a good topic that could be used in chit chat?
Wow, what a mess indeed
Hey thanks for this post! Never heard of this Sous Vide process. Definitely worth some further research.
Dave Ramsey ping!
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.