Tough Problems: Major Purchases

Source: Pixabay, Public Domain

This is the latest in the Tough Problems series. In each, I present two composite questions that my clients face and my response to each.

Dear Dr. Marty: I can’t believe how expensive a one-bedroom apartment is! Unless I’m willing to live in a war zone, rent is crazy-expensive. Any tricks to finding below-market rent?

Marty Nemko: First of all, are you sure you need a one-bedroom rather than a studio? The cost difference can be big. But whatever size you want, there are ways to boost your chances of getting below-market rent:

• Tell everyone you know that you’re looking. Many of the best deals never make it to the open market. They go to a known commodity—that would be you.
• Post a rental-wanted ad on your ultra-local website such as NextDoor. Or go old-school and post a flyer on telephone poles in neighborhoods in which you’d like to live. It could say, for example, “Quiet, responsible person would love to live in this neighborhood: backyard cottage, attic or basement apartment, etc. Can pay up to $1,500 a month." If it’s a flyer, include tear-offs at the bottom with your name and phone number.
• Negotiate. If you see a rental you like, but it is too expensive, try to negotiate, if only to offer to do some work in exchange for a rent reduction.
• Look for a fixable dump. Dumps often rent cheap. Would a good cleaning, painting, etc. make the place acceptable? Even if the countertop, sink, and carpet are ancient and worn, those can be inexpensive to replace.

Dear Dr. Marty: I totaled the car that my parents gave me, and so I have to buy my first one. Any advice?

Marty Nemko: Resist the advertising: A car’s job is to reliably get you from point A to point B. Perhaps the cheapest way to do that is to buy a used Toyota. A leading consumer magazine, year in and year out, rates Toyota the most reliable car. If you can afford it, buy a four- to six-year old one with under 100,000 miles on it. If not, you still could get years of reliable driving from an older Toyota with under 200,000 miles on it. Occasionally, a miscreant turns back the odometer: Check if the driver's seat cushion, floor mat, or brake pedal are unduly worn.

To see if the seller is asking a fair price, check the Kelly BlueBook, free online. Even if the asking price is decent, it's often expected that you'll offer 10 to 20 percent less.

Features that matter

• Good gas mileage: You won't be drag racing, so why pay for speed you’ll never use. And a powerful engine may tempt you to speed, and those speeding tickets now may cost a fortune. You can get 30 mpg with a Corolla, 40 with a Camry hybrid or Yaris, and 50 with a Prius.
• Comfortable seat for your body: Adjust the seat to fit you and then take it for a 20-minute spin. Then you’ll know.
• Storage: Hatchbacks are convenient but, perhaps in your situation, a decent-sized trunk will be fine.
• Good sight lines: Is the blind spot small? That can prevent accidents.

Checking it out

Tires: A new set can set you back $500. See if the tires have at least 1/5 of an inch of tread.

Brakes: Do they stop effectively, without the pedal sinking or the brakes squealing?

Steering: Is there little play in the wheel? When you take your hands off the wheel, does the car continue straight or pull to one side.

Engine: Open the hood. Does the engine sound smooth and quiet, or is there a knocking or other unusual sound? In your test drive, does it accelerate reasonably well?

Transmission: Does it shift smoothly from gear to gear, or is there hesitation?

Exhaust: Is it quiet and smoke-free except, when cold, some white smoke?

The body: Don't overemphasize dings—in fact, they may allow you to get a better price. If the body is rusting, however, especially if the rust extends below the surface, you may want to pass on that car.

Do the accessories work? Try the horn, radio, mp3/CD player, heater, air-conditioner, front and rear defroster, window wipers, and windshield washer.

Those are just DIY checks. Before buying, do get it checked out by a good mechanic, perhaps one with mostly 5-star reviews on Yelp.

I read this aloud on YouTube.