And there’s a certain sentiment of discontent in the air. When verbalized, it often is along these lines:

“I can’t believe I have to f’ing pay $4 per gallon for gas. That’s ridiculous!”

Others have taken it as far as adding the rise in gas prices to the long list of things that President Obama has done to destroy our country:

“How can Obama allow this! His energy policy has created this!”

And when you don’t listen to the words, but the sound of the noises coming out of mouths, it sounds more like:

“chirp, chirp, chirp”

But seriously, who “likes” paying more for anything?

I certainly don’t like paying more for things. Especially stuff I used to pay less for. Particularly commoditized product. Do you? No? Didn’t think so. Glad the feeling is mutual.

I don’t know who is to blame for the recent spike in gas prices. Could it be:

• OPEC?
• Speculative futures trading?
• Dwindling supply or increased demand?
• Obama’s energy policy?
• All of the above?

Who knows?

The thing is, we can’t control any of that stuff. But there are a few things we can control:

1. Our attitude:

Vehicles are an absolute luxury. They were a cool invention that turned out to be THE WORST thing that could have ever happened to this planet. The fact that we have all granted ourselves the grotesque right of driving around 1-2 tons of steel that spews out environment-killing by-products to pick up a soda at the convenience store or drive a 120 mile daily commute should be seen for what it is – unnatural and wasteful.

It is something that human beings were not able to do for millions of years.

The fact that it ONLY costs us $4 to drive 20-30 miles on fuel that was sucked out of the ground thousands of miles away from where you pump it in to your vehicle is a miracle. And $4 per gallon is much less than what just about every country outside of the Middle East pays (including Saudi Arabia #2 – Canada). How about showing a little gratitude for that?

You can control your attitude.

2. Decreasing Our Consumption by Vehicle Choice

Despite $4 per gallon, you don’t see every complainer driving Prius’s around.

Why not?

If you want to earn the right to complain about gas prices, shouldn’t you at least be getting 40 mpg’s?

Switching to a more fuel efficient vehicle is something that you can control.

3. Decrease Consumption by Vehicle Use

Younger generations aren’t driving as much. Many aren’t getting licenses in the first place. Many people choose to live close to work so they drive less or don’t drive at all. This is something we are all capable of. If you live 30 miles from work, you have no right to complain about gas prices.

With a little effort, you can:

• reduce your commute, take public transit, or ride a bike to work
• combine your errands and only drive when necessary
• drive more conservatively

These are all things you can control.

Take a Load Off

So while there are many things you CAN control in relation to your use of gasoline, the price you pay per gallon is not one of them. Knowing that and taking action on the things you can control will result in an immediate load off your shoulders.

Stop Complaining & Start Acting on High Gas Prices is copyrighted by 20somethingfinance.com without consent to republish.

People were scared and PISSED! Used Prius’s were selling for over the MSRP of new ones (because you couldn’t find a new one anywhere other than Craigslist). SUV and truck sales plummeted. And anyone who wanted to sell their once-coveted giant SUV in favor of a more fuel efficient ride couldn’t give the damn thing away – like it was some kind of infectious disease. Oh, and we were all on the short path to Peak Oil and the Apocalypse.

New car buyers, at that time, were demanding higher mpg’s. And automakers were caught mostly flat-footed  in being able to deliver them, with the exception of Toyota. 23 city and 32 mpg highway, at the time, were considered exceptional.

Yet, buyers intentions were clear. In May of 2008, year-over-year vehicle sales looked like this:

Top selling vehicles that had increased in sales year-over-year

• Nissan Altima +9.6% (24 mpg city, 32 mpg highway)
• Ford Focus +29.1% (24 mpg city, 35 mpg highway)
• Chevy Cobalt +17.3% (24 mpg city, 33 mpg highway)
• Toyota Prius +22.6% (48 mpg city, 45 mpg highway)
• Chevy Malibu +22.5% (22 mpg city, 32 mpg highway)
• Pontiac G6 +22.2% (22 mpg city, 30 mpg highway)

Top selling vehicles that had decreased in sales year-over-year

• Ford F Series (trucks) -15.5% (13 mpg city, 17 mpg highway)
• Chevy Silverado (truck) -20.8% (14 mpg city, 19 mpg highway)
• Dodge Ram (truck) -24.2% (13 mpg city, 17 mpg highway)
• GMC Sierra (large SUV) -11.2% (14 mpg city, 19 mpg highway)
• Ford Econoline (van) -21% (14 mpg city, 19 mpg highway)

Then the recession hit. And gas prices dropped 60% to below $2 overnight (quite literally).

Over the next two years (2009-2010) gas prices went right back up to around $2.75-$3 and leveled out. 2011 and 2012 have brought prices up to the mid to high $3′s. And 2012 has seen the return of $4 per gallon. Here’s how the historical price of gas looks over the last 7 years:

The country’s response a few years ago to the high demand for fuel efficient vehicles brought a wave of more fuel efficient smaller vehicles that are just now hitting the market. 2012′s most fuel efficient cars are all hybrids. There were only a few back in 2008. On top of that, for non-hybrids, the new gold standard is 29 city, and 40 mpg highway – a full 8 mpg higher than just a few years ago.

Sadly, there’s been limited demand for these vehicles, as seen in a list of the best selling vehicles of 2012:

 RANK  VEHICLE                       2012     2011   % CHNG
 1     Ford F-Series P/U          143,827  126,627    +13.6
 2     Toyota Camry               105,405   76,821    +37.2
 3     Nissan Altima               96,360   69,551    +38.5
 4     Chevy Silverado-C/K P/U     95,638   92,455     +3.4
 5     Honda Civic                 77,169   64,968    +18.8
 6     Honda CR-V                  74,587   57,433    +29.9
 7     Toyota Corolla              68,428   76,675    -10.8
 8     Dodge Ram P/U               67,464   52,739    +27.9
 9     Ford Focus                  66,043   37,071    +78.2
 10    Ford Fusion                 63,949   65,023     -1.7

Only the Honda Civic and the completely re-designed Ford Focus come close to 40 mpg hwy.

At the same time, there is hefty sales gains in the biggest gas guzzlers as well. The Ford F series (+13.6%, 17 mpg city), Chevy Silverado (+3.4%, 14 mpg), and Dodge Ram (+27.9%, 14 mpg), are all having banner years. What a difference 4 years makes, eh?

Instead of having the same reaction we had (pre-recession) when prices skyrocketed and we all were looking for signs of the coming Apocalypse, it appears that we have been eased in to a new $4 per gallon norm. $5 per gallon is looming as the economy continues to recover. Gas prices have simply become a “necessary evil” tax for driving around town at 15 mpg’s in 4,500 lbs. of steel.

Consumers have clearly dropped the ball and went ahead and bought the gas guzzlers.

Meanwhile, the near extinct automakers have laughed all the way to the bank as they have been enjoying record profits on the backs of lower worker wages (another story entirely) and more highly profitable truck units being bought.

But YOU are better than that! If you want to ever achieve financial independence, that is.

More to come…

Related Posts:

•  Reducing my Commute will Fund my Retirement
• 5 Reasons to Ride a Bike to Work
• Why Skyrocketing Gas Prices are Good for your Finances

$4 Per Gallon Gas: From Apocalypse to Necessary Evil Tax in 4 Short Years? is copyrighted by 20somethingfinance.com without consent to republish.

At last check, I had decided that my best car buying strategy was to go new vs. used, due to the inflated prices on used cars at the present time.

Beyond that, given the current incentives on new cars, I found the best new car value to be the 2012 Chevy Malibu, as GM was offering a total of $3,500 in rebates. Additionally, I had $2,000 in cash rewards from an old GM card I used heavily a few years ago, for a grand total of $5,500 off, before negotiation.

I didn’t want to stop there though. So I started researching.

Researching Car Prices Before Negotiating

The base Malibu was plenty of car for me:

• 17″ alloy wheels with performance tires
• power windows, doors, seats
• keyless entry
• AM/FM/XM/MP3/CD
• AC
• 6 air bags
• cruise
• automatic trans w/ manual tap shifting

…all things you typically have to pay up for on entry level cars. For me, to ask for anything more? Greedy.

Before you try to negotiate with a dealer, it’s important to know EXACTLY what car you want. I wanted the base Malibu, with no additional options.

Once you know that, find out what the MSRP is. MSRP is a good “I should never pay more than this” starting point, but that is all. For the Malibu, the MSRP was $22,870.

The next price you should find is the dealer cost. You can find this at TrueCar.com.

TrueCar listed this at $21,654 for the base Malibu, before rebates.

TrueCar also lists the market average of what that car is selling for. The Malibu LS was averaging a sale price of $22,406 (before rebates).

Let the Car Negotiating Over Email Begin

Armed with this info., my next step was to email 5 Chevy dealerships. You can find a contact email on their website or the email address for their internet sales manager (all dealers have one these days).

I would much rather do all of my negotiation work BEFORE going to a dealership so that you can avoid any chaos or sales tactics when you arrive, but that’s just me.

My email read like this:

“I am interested in buying a 2012 Chevy Malibu LS, with no added options, this weekend. Please give me your best offer on this vehicle including all fees, but excluding tax, title, registration, and any cash rebates or incentives from GM.”

You’ll notice that my simple email:

1. Lets them know that I’m a serious buyer.
2. Tells them I am comparing offers.
3. Tells them exactly what vehicle I was looking for (if they don’t have it on the lot, they can find one).
4. Asks for the best price THEY can give me – forget all the automaker incentives.
5. Allows me to get an apple-to-apple comparison between offers.
6. Asks them to include any and all fees so there were no surprises when I get to the dealership.

Did I get what I asked for from any of the dealerships? Hell no. Of course not.

Dealerships negotiate for a living. If they can confuse you, make it seem like they are offering you something other dealerships are not, or just make you tired of asking for answers, they win.

Rule #1 with negotiation: don’t be the one to make the first offer.

Most tried to work in the cash incentives (offered by GM, not them) to sweeten the overall price. I had to ask them to not do this.

You have to push and push hard.

I went back and forth with each dealership over email as few as 10 times and as many as 20 times before I got exactly what I was looking for. STICK TO YOUR ORIGINAL ASK.

Finally, I got responses from 4 of the dealerships, while one would only offer to “beat the best offer”. Sorry, but if you can’t even give me a price, you’re not going to get my business. Tell them as much, if this ever happens to you.

I had to tell a few I was heading out to another dealership right now before I got their actual offers.

Two offers were over the $22,870 MSRP. One was $22,500. The best offer came in at $21,914.

Given that the dealer cost was just $260 under that, I was happy with this offer, so long as the dealer kept to its word of no additional fees.

On to the Dealership

I went to the dealership. They had the car I asked for and they said they had (if they don’t have what they said they did, you should walk out). I took the car for a test drive, and it checked out.

It was time to sit down and continue the negotiation.

I decided not to push further on the $21,914 offer, given it was the best I had received by a decent amount, and was not much higher than the dealer cost.

We then went through the paperwork on the car, and indeed, there were no additional funny business fees. If there is “funny business”, that is another reason to walk out – a negotiation tactic in its own right.

Trade-In Negotiation

Next, it was time to discuss trading in ole’ Grandy.

Before going to the dealership, I researched Grandy’s market worth so that I knew ahead of time what I wanted to get out of any trade-in negotiations.

KBB priced the trade-in value at $1,084 and the private-seller value at $2,119 for “good” condition (the description fit). Given Grandy’s recent issues, I felt much better leaving her at a dealership than selling to a private party. If I could get $1,500, I’d be satisfied.

The appraiser at the dealership looked at Grandy and came back with an offer of $1,200.

I countered at $2,100. They countered at $1,600. I told them to throw in some floor mats.

Done deal.

Of course, they tried to sell me some rust-protection, extended warranty crap. I said “no”, as they expected.

When all was said and done, the final out-of-pocket was:

$22,870
- $956 Dealership negotation
- $2,500 GM Chevy Malibu consumer cash
- $500 auto show bonus
- $500 GM loyalty bonus (for trading in the Grand Am)
- $2,000 GM card cash back
- $1,600 trade-in
_____________________
= $14,814 (before tax, title, registration)

Not bad! There were no good financing offers (2% or less is good, in my book), so I paid in cash.

Could I have done better? Maybe a tad if I had REALLY pushed it, but I think I did pretty good for myself. In the end, I was satisfied with the price and the purchase.

If I don’t sell her this year, maybe you’ll be hearing the story of ole’ Mally in 15 years. Of course… it might be 40somethingfinance.com by then.

Car Buying Discussion:

• What car negotiation tips do you have?
• Have you negotiated over email before? Did the dealer keep their promises?
• What is the most off of MSRP you have purchased a car?

Related Posts:

• Cars on Craigslist
• Cheapest New Cars of 2012
• Most Fuel Efficient Cars of 2012
• 12 New Car Negotiation Tips

My New Car Negotiation & Trade-In Strategy Enacted is copyrighted by 20somethingfinance.com without consent to republish.

I knew it was time to trade her in. And to do so before she died would be wise.

She still had some value in her for someone who wanted to put a little money in to her. And I didn’t want to sink more money in with towing, rental, fixing, and other expenses if she did die (I share a car with my wife and don’t have a backup 2nd vehicle).

That was my situation. On to the search…

New Vs. Used Cars: Which Provided the Best Value?

Should I buy new or used? This was the first thing that entered my mind. I had not purchased a car in 6 years, so I had no idea what the new vs. used car markets looked like.

Many will cite the “it loses 10, 15, 20% (depending on who you ask) of its value as soon as you drive it off the lot” line. And other popular finance wisdom will say you should buy everything used. I wanted to find out for myself.

I started pricing out new vs. used models. What I found was that cars that were within a year old were selling for just slightly less than new cars (about 10-15%). Even cars that were 2-3 years old were selling for just 15-25% less than their new 2012 counterparts.

I did some research into the present used car market and found that this is fairly common in tough economic times – the used car market, as a whole, gets propped up by buyers looking to save some money versus buying new. Typical law of supply and demand. Ironically, the frugal buyer kind of gets screwed.

I’m not a big fan of buying anything new these days, but the current market made me think that if I could find a new car (with incentives to bring the cost down), that had a full warranty and zero wear and tear, and pay roughly the same or less than a car with anywhere from 10,000 to 30,000 miles on it with a shrinking warranty and little knowledge of how the car was treated prior – it might be justified. But I had to find a good deal first.

Looking for the Cheapest New Car

I turned to my list of the cheapest new cars for 2012. I made a spreadsheet of each car, added in a few other cheap favorites, and included their MSRP’s, any current manufacturer discounts and incentives, the annual fuel cost, and average insurance premiums.

Much to my dismay, the only manufacturer incentive on any of the 15 cheapest cars at the present time was $500 on the Ford Fiesta, Chevy Cruze, and Chevy Sonic. I had figured I might run in to this issue, as January is typically a horrible time to buy a new car. Automakers just got done heavily discounting last year’s models in December in an effort to clear them off the lot and to hit their sales goals for the year. January offers them a fresh start and a little flexibility.

The GM Card Earnings

As an aside that plays a key role in my search, I had an old GM card laying around with some cash back earnings on it. It was the first credit card I ever used and I’ve kept it open for it’s favorable impact on my credit history.

It offered 5% cashback on all purchases if applied towards a new GM vehicle. Over the years, I had built up $1,011 in savings, which GM was upping to $2,000 through Feb. 23 through a special promo (they do this about once or twice a year).

This was good on any GM vehicle and is completely separate from any other negotiations with the dealer.

Turning Towards GM

My ideal car (in theory), the Toyota Prius C, has not been released yet. It is the new hatchback hybrid from the Prius line that gets over 50 mpg city and highway and retails for under $19,000. It will reportedly be released in March.

I was not confident my car could last until then without repair, and even if it did there would doubtfully be any incentives on the new Prius C as it would be newly released.

Knowing that I had the $2,000 off in GM card earnings ($1,000 of which expired in a month) and that there was a $500 Auto Show cash bonus for all GM cars, I started to turn to GM.

What I found next was encouraging.

GM was also offering a $500 GM loyalty discount (if you trade in a previous GM model). I also found that they were offering a special $2,500 consumer cash discount on the 2012 Chevy Malibu.

The Malibu had honestly never crossed my mind and it certainly would not be my first pick, all else being equal. It MSRP’ed right below $23,000 for the base model, it’s not the most functional for my outdoor lifestyle (that would go to the hatchbacks), and 33 mpg’s highway is not bad, but it certainly wouldn’t make my list of the most fuel efficient cars – 40 mpg hwy is the new 33 mpg hwy of 3 years ago.

The Best Value on a New Car

Instead of thinking about my “ideal” car, the most fuel efficient car, or even the cheapest new car from an MSRP standpoint, my strategy shifted slightly.

I decided that it would be wisest to go for the best car (within reason) for the best price. The Malibu was that car.

Its pricing, before negotiation or trade-in, looked like this

$22,870 MSRP
- $2,500 Malibu consumer cash
- $500 auto show bonus
- $500 GM loyalty bonus
- $2,000 GM card cashback
= $17,370

$5,500 off MSRP without any dealer incentives! That brought it right down to the bottom of my cheapest new car list at $17,370. The Malibu has way more standard features and is bigger than any of the vehicles on that list, proving it to be the best value I could find.

I wasn’t in love with the car, but I kind of liked that about the choice. My emotions and desires were not leading my purchasing decision. That’s a good place to be in.

Save Now. Swap for a More Ideal Car Later?

If I could get the best car value now, and knowing what I found out about used car prices, it is very possible (if not certain) that I could get the Malibu now and sell it for more than what I bought it for later in the year while it was still under full bumper-to-bumper warranty.

At that point, I could even apply the savings to a different car that had bigger incentives at that moment or was slightly used.

This strategy was not without its drawbacks, but it reasoned to be pretty damn good considering my predicament with Grandy and the lack of new car incentives at the moment.

On to the negotiation stage…

Car Buying Strategy Discussion:

• What strategies have you used when buying a new car?
• What considerations have you had when picking out a car?

Related Posts:

• Cars on Craigslist
• How Old are your Tires?

New Car Strategy: How I Found the Best Value on a New Car is copyrighted by 20somethingfinance.com without consent to republish.

The remaining vehicle, a 2000 Pontiac Grand Am, or Grandy (whom I have never, until this moment, affectionately called her), had racked up 182,000 miles and started showing signs of fatigue lately.

1. She was burning a quart of oil every other week.

2. She occasionally would vibrate heavily at stops.

3. On a very cold day, her innards would occasionally smell like gas.

All of the signs were there. Grandy was tired. We didn’t know how much longer she had.

As Grandy was a shared car (no second car to back us up) and my wife has been driving a few hundred miles back and forth to nursing school every week, we started getting concerned.

The following thoughts began entering our minds:

“What if the car dies on the middle of the highway in the dead of winter?”

“If the car dies, how much would we have to pay for a rental until we find a new one?” (insurance doesn’t cover)

“There are no good incentives on new cars this time of year, do we roll the dice on the car not dying until there is?”

“If we can trade the vehicle in now, at least we could get something for it. If it dies, we probably will get nothing.”

Then, this past week, Grandy stalled on my wife while she was in stop-and-go traffic on the highway. She had never stalled before.

The shared long summer road trips up north, the time she hydroplaned and spun out in the highway median, the time I fell asleep at the wheel on the highway and Grandy nailed a reflector pole, the squirrel that darted in front of us one summer’s day… wait, most of these memories suck… oh well, Grandy and I had been through a lot together.

She was still serviceable and there could still be good days ahead, but it was time for us to move on. My wife and I jointly decided to take Grandy behind the woodshed (trade her in).

What happens next is another tale for another day… (stay tuned)

Dying Car Chat:

Have you suffered feelings of confusion and sadness over a dying car? Share your old car’s memorial in the comments. You have our support.

Related Posts:

• Cheapest New Cars of 2012
• Most Fuel Efficient Cars of 2012
• Craigslist Cars: How to Get there First

The Tale of Grandy, my Dying Car is copyrighted by 20somethingfinance.com without consent to republish.

Even in tough economic times, the price of fuel has hovered above $3 per gallon. And should the economy rebound, those prices could skyrocket. You’ll wish you had found a fuel efficient car sooner than later.

Automakers are stepping up their game. Back in August, I was excited to see the Obama administration and automakers agree to set a fleet-wide fuel efficiency average standard of 54.5 mpg by 2025. We have a long way to go to get there, but you can already see signs of progress. As evidence, there are three new 2012 model year vehicles to make this year’s list.

There are some big differences versus last year’s list of the most fuel efficient cars. First, I decided to included the top fuel sippers, regardless of their price. In the past, I focused only on cars that retailed under $30,000. I also ranked by combined mpg instead of highway mpg. Power (fuel) source is now also listed.

Not all of these cars will be economical, despite their fuel efficiency, as some are luxury and targeted to the “guilty-rich”. Only 2 made my cheapest new cars of 2012 list – the Scion IQ and Smart FourTwo. They, and a few others could end up saving you $500-$1,000 per year at today’s fuel prices vs. similar vehicles. Over the life of a car, that can really add up.

Electric Car Tax Credits

There is presently a federal electric car tax credit available to Energy Star approved electric vehicles. It is worth noting because it is a whopping $7,500. Some states match all or a portion of that credit. It can take a pricey electric down to a competitive price level, and when you look at the fuel cost savings, it could result in a very frugal purchase. Three electrics made this list. The tax credit phases out for an automaker when they have produced their 200,000th electric vehicle.

What Cars were Excluded from the List?

For this list, I decided to focus on cars that have been or will be mass-produced for the 2012 model year.

Sadly, I had to drop the electric Azure Dynamics Transit Connect from the list, despite it achieving 62 city and hwy effective mpg’s, because I could not find the price publicly anywhere. It is a van that is built for stop & go, on-the-road businesses. This led me to believe that it is too low-volume in production and not a vehicle for the masses – even though a van that got 62 effective mpg’s would be awesome.

I also had to drop the Tesla Roadster and Tesla Model S because they did not have EPA tested effective mpg’s for the 2012 year as of yet (even though they surely would have made the list).

Obscure electric start-up or other limited run alternative energy models also did not make the list.

Where did these Fuel Efficiency Metrics Come from?

EPA combined, city, and highway mpg metrics, as well as annual fuel costs were grabbed from the U.S. Department of Energy’s fueleconomy.gov site.

With electrics, there are obviously no “gallons” to speak of.  The effective mpg’s are calculated by calculating that car’s required energy output to drive a mile and an electricity price of $0.12 kWh.

Annual fuel costs are based on 45% highway, 55% city driving, 15,000 annual miles and a fuel price of $ 3.30 per gallon for gas, $3.78 for diesel, and $0.12 kWh for electrics. If your driving profile is different, you can modify that on the site for each vehicle to find your specific annual fuel costs.

Without further ado, here are the top 15 most fuel efficient cars of 2012:

15. Volkswagen Golf TDI

Price: $26,105
Powered by: Diesel
Combined MPG: 34
City MPG: 30
Highway MPG: 42
Annual Fuel Cost: $1,668
Annual CO2 Produced: 6.3 tons
Comments: The VW Golf TDI is the only diesel to make this year’s list. The last few year’s have really dampened the excitement around diesels becoming a truly legitimate money-saving alternative.

14. Lexus HS 250H

Price: $37,905
Powered by: Gas-Electric Hybrid
Combined MPG: 35
City MPG: 35
Highway MPG: 34
Annual Fuel Cost: $1,414
Annual CO2 Produced: 5.1 tons
Comments: If you’re guilty-rich, you’ll love it. If you’re not, nothing to see here. Look away!

13. Smart ForTwo

Price: $13,240
Powered by: Gasoline
Combined MPG: 36
City MPG: 33
Highway MPG: 41
Annual Fuel Cost: $1,488
Annual CO2 Produced: 5.1 tons
Comments: How does the smallest car to make the list come in at #13?

12. Scion IQ

Price: $15,995
Powered by: Gas
Combined MPG: 37
City MPG: 36
Highway MPG: 37
Annual Fuel Cost: $1,338
Annual CO2 Produced: 5.0 tons
Comments: This newcomer from Scion has launched in California and will in the Midwest in March. It, sadly, is one of only two gasoline models to make the list. The IQ is tiny, but looks like a blast to drive. It came in at #5 on my list of the cheapest vehicles of 2012.

11. Honda CR-Z

Price: $20,135
Powered by: Gas-Electric Hybrid
Combined MPG: 37
City MPG: 35
Highway MPG: 39
Annual Fuel Cost: $1,338
Annual CO2 Produced: 5.0 tons
Comments: A damn fine looking, economical, and sporty hybrid that I can’t ever recall seeing on the road for some reason.

10. Ford Fusion Hybrid

Price: $29,495
Powered by: Gas-Electric Hybrid
Combined MPG: 39
City MPG: 41
Highway MPG: 36
Annual Fuel Cost: $1,269
Annual CO2 Produced: 4.7 tons
Comments: This car is almost identical to the Lincoln MKZ hybrid, at a lesser price.

9. Toyota Camry Hybrid LE

Price: $26,660
Powered by: Gas-Electric Hybrid
Combined MPG: 41
City MPG: 43
Highway MPG: 39
Annual Fuel Cost: $1,207
Annual CO2 Produced: 4.5 tons
Comments: At this price, both the Prius and Prius V seem like extreme bargains.

8. Toyota Prius V

Price: $27,160
Powered by: Gas-Electric Hybrid
Combined MPG: 42
City MPG: 44
Highway MPG: 40
Annual Fuel Cost: $1,179
Annual CO2 Produced: 4.4 tons
Comments: The Prius was so popular it has multiplied! The Prius V is a larger, more expensive version of the original Prius. Brand new in 2012.

7. Lexus CT 200H

Price: $29,995
Powered by: Gas-Electric Hybrid
Combined MPG: 42
City MPG: 43
Highway MPG: 40
Annual Fuel Cost: $1,179
Annual CO2 Produced: 4.4 tons
Comments: A hybrid Lexus for under $30,000? Still too much for my blood…

6. Honda Insight

Price: $19,120
Powered by: Gas-Electric Hybrid
Combined MPG: 42
City MPG: 41
Highway MPG: 44
Annual Fuel Cost: $1,179
Annual CO2 Produced: 4.4 tons
Comments: 2012 brings improved fuel economy. At its price, it almost made my list of the cheapest new cars of 2012. Yet it is large enough for a family to get around – and has incredible fuel efficiency.

5. Honda Civic Hybrid

Price: $24,820
Powered by: Gas-Electric Hybrid
Combined MPG: 44
City MPG: 44
Highway MPG: 44
Annual Fuel Cost: $1,125
Annual CO2 Produced: 4.1 tons
Comments: The hybrid of this classic economical car is not quite as economical as its Insight cousin.

4. Toyota Prius

Price: $22,880
Powered by: Gas-Electric Hybrid
Combined MPG: 50
City MPG: 51
Highway MPG: 48
Annual Fuel Cost: $990
Annual CO2 Produced: 3.6 tons
Comments: In its 3rd generation, the hybrid that started it all, the Prius is still the most popular fuel sipper out there. It is a great value for the price.

3. Chevy Volt

Price: $32,495
Powered by: Electric
Combined MPG: 94 (electric only)
City MPG: 95
Highway MPG: 93
Annual Fuel Cost: $648 (electric only)
Annual CO2 Produced: 0
Comments: The Volt is a plug-in electric hybrid that runs on electric and switches to gas if the battery is depleted. It’s MSRP is $39,995 without federal tax credit – it is primarily an electric and does qualify for the federal tax credit. Note that gas only would make it 40 highway, 35 city, and 37 combined, with an annual fuel cost of $1,447.

2. Nissan Leaf

Price: $21,625
Powered by: Electric
Combined MPG: 99
City MPG: 106
Highway MPG: 92
Annual Fuel Cost: $612
Annual CO2 Produced: 0
Comments: A re-starting problem really lowered the excitement around the launch of the Leaf. It also falls from the top to the 2nd most fuel efficient car spot as it is displaced by the cheaper Mitsubishi i.

1. Mitsubishi i

Price: $21,625
Powered by: Electric
Combined MPG: 112
City MPG: 129
Highway MPG: 99
Annual Fuel Cost: $540
Annual CO2 Produced: 0
Comments: Not yet released, but coming in early 2012, this will be the cheapest electric car on the market. It’s MSRP is $29,125, but a $7,500 hybrid tax credit brings that down to $21,625. State tax credits could bring it down further.

Best Fuel Efficient Car of 2012

Being in Michigan, I am bummed there are no electric tax credits in my state to match the $7,500 federal credit. If there were, I’d pre-order the Mitsubishi i or Nissan Leaf. The “i” (Jobs would roll in his grave) could be had for around $14k – putting it in third place of the cheapest vehicles for 2012. And with years of $1,000+ fuel savings ahead, it would be extremely economical. Unfortunately, only two states offer a credit of $6,000 or more, so reality must prevail.

Despite a strong first-year showing from the Mitsubishi i, the Honda Insight repeats for my pick of the best fuel efficient car. It’s cheapest model can be had for around $18,000, and that gets you a larger, highly functional car with an automatic transmission, 40+ mpg’s on the highway and in the city, a hybrid engine, and a nice set of features. It even slightly bumped its economy up by 1 mpg vs. last year for good measure.

Related Posts:

• How to Donate your Car to Charity
• Chevy Volt vs. Nissan Leaf
• Who Killed the Electric Car?
• Cars on Craigslist

The Most Fuel Efficient Cars of 2012 is copyrighted by 20somethingfinance.com without consent to republish.

There are a few changes in 2012 versus the 2011 cheapest new cars list. Most notably, Chevy retired the drab and tired Aveo and replaced it with the beefed-up Sonic, which comes in as the 6th least expensive new vehicle. The brand new Scion IQ displaces the Scion XB, and comes in as the 5th lowest cost car for the 2012 model year. And the Fiat 500 Pop makes the list, in its inaugural model year. J-Lo would be proud.

A few returnees boost better fuel efficiency this year, particularly the Kia and Hyundai models as they move to improved 1.6L 6-speed automatic transmissions. I decided to include engine specs this year if you’d like to make comparisons.

All of the vehicles you will find on the list have automatic transmission. Why? It’s hard to find, negotiate, and re-sell manuals. If you are interested in manuals, each model, excluding the Scion’s have them. They to run roughly $1,000 less than the MSRP’s I quoted, but their limited availability may prevent your ability to find and negotiate (if you have 25 vs. 2 to choose from on a lot and other dealers locally have the same numbers, your negotiating power goes up).

The Used Vs. New Debate

Before running out any buying a shiny new car, do your homework to make sure it is the best use of your money. Be honest with yourself in evaluating whether you in fact need a car in the first place, and if you have a significant other, whether you need a second car.

If you do need a car, new cars might not present the best value for you – although, this list is a good place to start for value. If you get a new car, baby it, and ride it until its death, it is possible to get a better return for your investment than buying used. However, keep in mind that new cars lose 11% of their value as soon as they are driven off the lot, on average.

Other Factors to Consider with a Cheap Car

Beyond the prices I’ve listed, there are some other considerations you should have when shopping for a new car:

• Fuel economy is important. A Scion IQ, for example, would save you over $400 every year in fuel costs vs. the new Chevy Sonic. My source for fuel costs is fueleconomy.gov, which used a $3.23 average per gallon with 45% highway, 55% city miles, and 15,000 annual miles.
• New models are unlikely to offer up big incentives until the end of their model year. It’d be wise to wait. I did not factor incentives in to the prices listed.
• Ongoing costs and insurance costs for cheap cars is generally lower, but you don’t want to sacrifice safety. Make sure a car you choose rates high on safety.

Foreign Automakers Still Own the Market for the Cheapest Vehicles

Foreign Automakers claim ownership of 13 of the 15 cheapest new cars. Only the new Chevy Sonic and last year’s new Ford Fiesta make the list from the U.S. automakers. Topping the list with the most models are Kia (3), Scion (2), Nissan (2),and Honda (2). Smart, Hyundai, Chevy, Ford, and Toyota are each represented by one model on the list.

My Picks for the Most Improved & Best Cheapest New Cars of 2012

The Soul, Fit, and Fiesta are still personal favorites for their functionality, styling, and price. However, I have to hand it to the Versa for being a solid car with improved fuel efficiency (25 mpg to 30 city, and 33 to 38 in the city) and still comfortably being the second cheapest.

The once-ugly Kia Rio is now rather stylish, is $495 cheaper than last year, and jumps from 27 to 30 mpg city and 36 to 40 highway. It gets my pick for having the best improvement from last year to 2012.

Without further ado, here are the 15 cheapest new cars of 2012 from #15 up to #1. What’s your favorite?

15. Honda Civic

Base Automatic Transmission model: Honda Civic DX, 2-door Sedan
Engine: 1.8L, 5-speed Auto Transmission, 16-valve, 4 cylinder, 140 HP
MSRP: $17,175
Dealer Cost: $15,728
City MPG: 28
Highway MPG: 39
Annual Fuel Cost: $1,514
Powertrain Warranty: 5 years or 60,000 miles
Limited Basic Warranty: 3 years or 36,000 miles
Notes: The 2012 Civic is re-styled. With a $1,400 spread between MSRP and dealer cost, there may be room to negotiate.

14. Fiat 500

Base Automatic Transmission model: Fiat 500 Pop, 2-Door Hatchback
Engine: 1.4L, 6-speed Auto Transmission, 16-valve, 4 cylinder, 101 HP
MSRP: $17,000
Dealer Cost: $15,905
City MPG: 27
Highway MPG: 34
Annual Fuel Cost: $1,785
Powertrain Warranty: 4 years or 50,000 miles
Limited Basic Warranty: 3 years or 36,000 miles
Notes: As a guy, I hate to admit it (it’s definitely branded for the ladies), but this is kind of a cool car. Reminds me of the VW bug in appearances. The standard base model is pretty loaded in features. One disappointment? For a 1.4L, 6-speed, it gets very poor fuel economy.

13. Kia Forte

Base Automatic Transmission model: Kia Forte LX 4-Door Sedan
Engine: 2.0L, 6-speed Auto Transmission, 16-valve, 4 cylinder, 156 HP
MSRP: $16,950
Dealer Cost: $15,644
City MPG: 29
Highway MPG: 36
Annual Fuel Cost: $1,671
Powertrain Warranty: 10 years or 100,000 miles
Limited Basic Warranty: 5 years or 60,000 miles
Notes: Similar to the Kia Rio, but with more engine and slightly lower fuel economy.

12. Scion XD

Base Automatic Transmission model: Scion XD 4-Door Hatchback
Engine: 1.8L, 4-speed Auto Transmission, 16-valve, 4 cylinder, 128 HP
MSRP: $16,875
Dealer Cost: $15,755
City MPG: 27
Highway MPG: 33
Annual Fuel Cost: $1,671
Powertrain Warranty: 5 years or 100,000 miles
Limited Basic Warranty: 3 years or 36,000 miles
Notes: If Scion wants to remain competitive with other automakers, they will need to focus on fuel efficiency. A 4-speed auto transmission is behind the game.

11. Honda Fit

Base Automatic Transmission model: Honda Fit 4-Door Hatchback
Engine: 1.5L, 5-speed Auto Transmission, 16-valve, 4 cylinder, 117 HP
MSRP: $16,745
Dealer Cost: $16,022
City MPG: 28
Highway MPG: 35
Annual Fuel Cost: $1,563
Powertrain Warranty: 5 years or 60,000 miles
Limited Basic Warranty: 3 years or 36,000 miles
Notes: Great functionality. Only comes in a hatch (it runs on a Civic base).

10. Kia Soul

Base Automatic Transmission model: Kia Soul 4-Door Hatchback
Engine: 1.6L, 6-speed Auto Transmission, 16-valve, 4 cylinder, 138 HP
MSRP: $16,450
Dealer Cost: $15,379
City MPG: 27
Highway MPG: 35
Annual Fuel Cost: $1,615
Powertrain Warranty: 10 years or 100,000 miles
Limited Basic Warranty: 5 years or 60,000 miles
Notes: 1.6L now available in 6-speed transmission, with better fuel economy.

9. Hyundai Accent

Base Automatic Transmission model: Hyundai Accent GLS, 4-Door Sedan
Engine: 1.6L, 6-speed Auto Transmission, 16-valve, 4 cylinder, 138 HP
MSRP: $15,955
Dealer Cost: $15,239
City MPG: 30
Highway MPG: 40
Annual Fuel Cost: $1,468
Powertrain Warranty: 10 years or 100,000 miles
Limited Basic Warranty: 5 years or 60,000 miles
Notes: I have not been in this car, but it has a cult-like following. 40 mpg highway is impressive.

8. Mazda 2

Base Automatic Transmission model: Mazda 2 Sport 4-Door Hatchback
Engine: 1.5L, 4-speed Auto Transmission, 16-valve, 4 cylinder, 100 HP
MSRP: $15,775
Dealer Cost: $14,354
City MPG: 28
Highway MPG: 34
Annual Fuel Cost: $1,514
Powertrain Warranty: 5 years or 100,000 miles
Limited Basic Warranty: 3 years or 36,000 miles
Notes: Has 4-speed auto trans vs. its cousin Fiesta’s 6-speed, giving it lower fuel economy. It does, however, offer a better warranty than the Fiesta.

7. Toyota Yaris

Base Automatic Transmission model: Toyota Yaris 2-Door L (Liftback/Hatchback)
Engine: 1.5L, 4-Speed Auto Transmission, 16-valve, 4 cylinder, 106 HP
MSRP: $15,600
Dealer Cost: $15,033
City MPG: 30
Highway MPG: 35
Annual Fuel Cost: $1,514
Powertrain Warranty: 5 years or 60,000 miles
Limited Basic Warranty: 3 years or 36,000 miles
Notes: Solid car is now restyled. Like the Scion, it’d benefit with value seekers in a move from a 4 to 6-speed engine.

6. Chevy Sonic

Base Automatic Transmission model: Chevy Sonic 2 LS 4-Door Sedan
Engine: 1.8L, 6-speed Auto, 16-valve, 4 cylinder, 138 HP
MSRP: $15,565
Dealer Cost: $14,973
City MPG: 25
Highway MPG: 35
Annual Fuel Cost: $1,730
Powertrain Warranty: 5 years or 100,000 miles
Limited Basic Warranty: 3 years or 36,000 miles
Notes: New model from Chevy that replaces the Chevy Aveo. Would love to see this in a 1.4L in future years for improved mpg’s. 25 city is low for a car of this size.

5. Scion IQ

Base Automatic Transmission model: Scion IQ 2-Door Hatchback
Engine: 1.3L, Continuously Variable Auto Transmission (CVT), 16-valve, 4 cylinder, 94 HP
MSRP: $15,265
Dealer Cost: $14,936
City MPG: 36
Highway MPG: 37
Annual Fuel Cost: $1,309
Powertrain Warranty: 5 years or 60,000 miles
Limited Basic Warranty: 3 years or 36,000 miles
Notes: New model from Scion, the IQ launches in California now and Midwest in March. It has the highest city MPG of any non-hybrid. It doesn’t look to be much bigger than a Smart Car, but has a bulkier build with big wheels.

4. Kia Rio

Base Automatic Transmission model: Kia Rio LX 4-Door Sedan
Engine: 1.6L, 6-speed Auto Transmission, 16-valve, 4 cylinder, 138 HP
MSRP: $15,250
Dealer Cost: $14,325
City MPG: 30
Highway MPG: 40
Annual Fuel Cost: $1,468
Powertrain Warranty: 10 years or 100,000 miles
Limited Basic Warranty: 5 years or 60,000 miles
Notes: $495 price decrease bumps it from #7 to #4 on the list. It also moves from 4 to 6-speed, bumping fuel economy from 36 to 40 on the highway. All of this, and its improved styling makes it the most improved car from 2011 to 2012.

3. Ford Fiesta

Base Automatic Transmission model: Ford Fiesta S Sedan, 4-Door
Engine: 1.6L, 6-speed Auto Transmission, 16-valve, 4 cylinder, 138 HP
MSRP: $15,090
Dealer Cost: $14,157
City MPG: 33
Highway MPG: 39
Annual Fuel Cost: $1,468
Powertrain Warranty: 5 years or 60,000 miles
Limited Basic Warranty: 3 years or 36,000 miles
Notes: Great car. But the bigger (and not much more expensive) Focus is worth a look.

2. Nissan Versa

Base Automatic Transmission model: Nissan Versa Sedan 1.6S, 4 Door
Engine: 1.6L, Continuously Variable Auto Transmission (CVT), 16-valve, 4 cylinder, 109 HP
MSRP: $13,520
Dealer Cost: $12,907
City MPG: 30
Highway MPG: 38
Annual Fuel Cost: $1,468
Powertrain Warranty: 5 years or 60,000 miles
Limited Basic Warranty: 3 years or 36,000 miles
Notes: Some nice improvements in 2012 versus 2011. MPG’s jump from 25 and 33 with the continuously variable transmission. With its price, it deserves a look.

1. Smart ForTwo Pure

Base Automatic Transmission model: Honda Fit 4-Door Hatchback
Engine: 1.0L, 5-speed Auto Transmission, 12-valve, 3 cylinder, 70 HP
MSRP: $12,490
Dealer Cost: $11,991
City MPG: 33
Highway MPG: 41
Annual Fuel Cost: $1,458
Powertrain Warranty: 2 years or 24,000 miles
Limited Basic Warranty: 2 years or 24,000 miles
Notes: Good, but not ground-breaking mileage in a golf cart size, the worst warranty in the business, and a price that does not entirely set it apart from the competition? Other than being the cheapest car, it comes up a bit short.

Related Posts:

• Cars on Craigslist
• How to Donate your Car to Charity
• Most Fuel Efficient Cars of 2011
• 2010 Cheapest New Cars

The Top 15 Cheapest New Cars of 2012 is copyrighted by 20somethingfinance.com without consent to republish.

I mentioned that some states further offered additional tax incentives on top of the federal credit, which prompted a reader to ask for a list of those states.

It was a great question. Without the tax incentives these vehicles just don’t make sense economically. With them, there is a chance they could actually make you money back by saving hundreds, if not thousands a year on fuel and maintenance costs. And if you can also sleep better at night for the added environmental benefit, why wouldn’t you?

Let’s first take a look at the federal tax credit and which vehicles can claim it.

Federal Electric Vehicle Tax Credit

Electric vehicle and hybrid tax credits are fairly straightforward at the federal level.

For starters, hybrid tax credits are a thing of the past at the federal level.

Electric vehicles are eligible for a $7,500 tax credit, with a few caveats:

1. It must be purchased in or after 2010.
2. You must be the original owner.
3. To get the full credit, the vehicle must be within the first 200,000 of that  model sold (then phase-out occurs).

You can see a full list of requirements at the Fueleconomy.gov electric vehicle tax credit site.

Now, there are even more vehicles (7 total) that qualify for the federal tax credit (if you can find them):

• Nissan Leaf (2011): $32,780 MSRP
• Tesla Roadster (2008-2011): $109,000 MSRP (keep dreamin’)
• Wheego Life (2011): $32,995 MSRP
• Smart ForTwo (2011): $44,900 MSRP
• Think City (2011): $36,495 MSRP
• Coda Sedan (2011): $44,900 MSRP
• Mitsubishi i (2012): $29,125 MSRP

Electric Vehicle Tax Credits by State

Now comes the tricky part. Each state has slightly different electric and hybrid tax credits and incentives. I’ll highlight what I was able to dig up, but you will need to do some further digging and check with your state to make sure these incentives still apply. If your state is not listed, my unearthing came up empty. If I missed something in your state, let me know and I’ll add it.

California

Rebates are available through the Clean Vehicle Rebate Project (CVRP) for the purchase or lease of qualified vehicles. Note that funds have currently been completely distributed. More funding has been requested and rebates of up to $2,500 for light-duty zero emission and plug-in hybrid vehicles has been proposed. You can get on a waiting list to be eligible if approved.

Colorado

Colorado offers up to an amazing $6,000 for plug-in electric drive vehicles and even offers credits on non-electric hybrids.

Georgia

A state of Georgia income tax credit is available for 20% of the cost to purchase or lease a new ZEV (zero emission vehicle), up to $5,000 per vehicle.

Hawaii

If you want an EV rebate in Hawaii, better act quick. Qualified Hawaii residents, businesses, government agencies, and non-profit agencies may apply for rebates for the price of EVs and EVSE through the Hawaii EV Ready Rebate Program. EV rebates are in the amount of 20% of the vehicle purchase price, up to $4,500. Rebates are available until funds are exhausted or September 30, 2011, whichever comes first.

Illinois

The Illinois Alternate Fuels Rebate Program provides a rebate for 80% of the incremental cost of purchasing an AFV including an EV, up to $4,000, or 80% of the cost of converting a conventional vehicle or a hybrid electric vehicle.

Louisiana

Louisiana offers an income tax credit worth 50% of the cost premium of an electric car, plug-in hybrid, or converting a vehicle. A taxpayer may instead take a tax credit worth 10% of the cost of the motor vehicle or up to $3,000, whichever is less. Similar credits are available for charging equipment installation. (Reference House Bill 110, 2009, and Louisiana Revised Statutes 47:6035)

Maryland

All-electric (EVs) and plug-in hybrid electric vehicles (PHEVs) are eligible for a tax credit of up to $2,000 against the imposed excise tax. The tax credit is limited to one vehicle per individual and 10 vehicles per business entity. The vehicle must be purchased between October 1, 2010, and July 1, 2013. Check out the Maryland DOT site for more.

Montana

A tax credit of up to $500 is available for electric car conversions. Yeah, that probably won’t make much of a dent.

New Jersey

Zero-emission vehicles sold, rented, or leased in New Jersey are exempt from state sales and use tax. This exemption is not applicable to partial zero emission vehicles, including hybrid electric vehicles. The New Jersey DOT has more info.

Oklahoma

For tax years beginning before January 1, 2015, a one-time income tax credit is available for 50% of the incremental cost of purchasing a new original equipment manufacturer AFV or converting a vehicle to operate on an alternative fuel. The state also provides a tax credit for 10% of the total vehicle cost, up to $1,500, if the incremental cost of a new AFV cannot be determined or when an AFV is resold, as long as a tax credit has not been previously taken on the vehicle. Equipment used for conversions must be new and must not have been previously used to modify or retrofit any vehicle. The alternative fuels eligible for the credit are compressed natural gas, liquefied natural gas, liquefied petroleum gas, hydrogen fuel cell, and electricity. Hydrogen fuel cell vehicles are eligible through December 31, 2010, and only qualified electric vehicles placed into service before July 1, 2010, are eligible. For vehicles propelled by electricity only, the credit is based on the full purchase price of the vehicle. For vehicles equipped with an internal combustion engine and powered partially by electricity, such as a hybrid electric vehicle, the credit is based on the cost of the portion of the motor vehicle attributable to the propulsion of the vehicle by electricity.

South Carolina

South Carolina residents that claim the federal fuel cell, advanced lean burn, hybrid electric vehicle, or alternative fuel vehicle tax credit are eligible for a state income tax credit equal to 20% of the federal credit.

Utah

Utah provides an income tax credit of 35% of the vehicle purchase price or $2,500, whichever is less, for an original equipment manufactured compressed natural gas vehicle registered in Utah. Other new clean fuel vehicles that meet air quality and fuel economy standards may be eligible for a credit of up to $750. The state also provides a credit of 50% of the cost of converting a vehicle to operate using a clean fuel (including propane, natural gas, or electricity), up to a maximum of $2,500 per vehicle.

Washington

New passenger cars, light-duty trucks, and medium-duty passenger vehicles that are dedicated AFVs are exempt from the state motor vehicle sales and use taxes. Qualified vehicles must operate exclusively on natural gas, propane, hydrogen, or electricity.

West Virginia

West Virginia (surprisingly) just enacted some of the best AFV incentives in the country. Effective July 1, 2011, an income tax credit is available to eligible taxpayers who convert a vehicle to operate exclusively on an alternative fuel or purchase a new original equipment manufacturer dedicated or bi-fuel AFV. The value of the tax credit is 35% of the vehicle purchase price or 50% of the vehicle conversion cost, up to $7,500 for vehicles with a gross vehicle weight rating (GVWR) up to 26,000 pounds (lbs.) and up to $25,000 for vehicles with a GVWR greater than or equal to 26,000 lbs. For the purpose of this tax credit, a qualified AFV operates on fuel including natural gas, propane, electricity, hydrogen, and coal-derived liquid fuels. Plug-in hybrid electric vehicles are also eligible.

Let me know if I missed anything!

Electric Vehicle Tax Credit Discussion:

If you live in one of these states are these incentives, matched with the federal credit enough to make you consider an electric vehicle purchase?

Related Posts:

• Chevy Volt Vs. Nissan Leaf
• 2012 Energy Tax Credit
• Tesla Roadster
• Who Keeps Killing the Electric Car?

Electric & Hybrid Tax Credits by State is copyrighted by 20somethingfinance.com without consent to republish.

A short list of things I’ve been able to sell on Craigslist includes:

- a guitar

- a couch

- a bed

- a fake tree

- a real tree (the guy literally came and dug it out of the ground for free – just one of the free services on Craigslist you can work out)

- a car (I sold my car on Craigslist within a day for almost the same price as what I bought it for two years earlier from a dealer)

- a house. Yup! I learned how to sell my house for sale by owner and a big part of that was advertising on Craigslist. The first offer I received was within a week of my first posting on Craigslist.

I’ve also bought a lot of things from Craigslist and have learned a few things about selling from being an experienced party on both sides. And these tips will help you sell things FAST.

1. Always, Always, ALWAYS Include High Quality Photos

Would you buy something or even take the time to go look at it without seeing a photo first? No. Then why would the person buying from you?

Always include at least one picture, preferably more. For cars, homes, or other large ticket items, use all four available slots.

I NEVER contact a seller if no photo is included – even if just to ask them for a photo. Don’t have the time and my thought is that the seller is lazy. Don’t be lazy.

Bonus Tip: Try to take the photo in good daylight, preferably outdoors during a sunny day. You won’t believe how much better it makes the product look. How many dark/dingy Craigslist postings have you shied away from?

2. Include your Phone Number in the Craigslist Posting

Half the battle with selling on Craigslist is removing barriers to the seller being able to communicate with you. I’ve found that I get 3-4 times as many inquiries on a listing if I include my number in the post. I think there are a few reasons for this:

• many Craigslist buyers are older and not in love with email.
• people like to call and hear a voice. It eases their fears that you’re a.) a psycho, b.) a redneck hillbilly, c.) an asshole.
• email slows down the sales process. People want to get their questions and complete the sale as soon as they see an item. If they can’t, they’ll look elsewhere.
• it signals that you are a motivated seller trying to remove any barriers for the buyer.

Yes, you may get contacted more than you bargained for, but that’s a good problem to have. And you can simply delete your posting as soon as you sell the item to stop the flood of calls.

3. Build a Simple Website for Big Ticket Items & Link to it From Craigslist

Imagine you’re looking for a house or car on Craigslist. You’re going to want to get as much information as you can get from a dealership or from a real estate website in order to seriously consider buying. If you don’t think buyers want this, you’re selling them short.

The problem is that you can’t really do all of that in a standard Craigslist posting.

I created websites for both the car and house I sold on Craigslist:

• I published the websites and linked to them in the Craigslist posting.
• I included the VIN (deleted for anonymity) for the vehicle and all relevant information for the house (including taxes and energy usage).
• I included my contact info and the location (since deleted).
• I included a ridiculous amount of photos so that nobody would feel they didn’t have enough visuals to go on.

You can create these simple websites for free on Blogger.com or WordPress.com. It might take an hour or so, but for a 5 or 6 figure item, isn’t that worth it?

4. Delete and Re-Post your Listings After 48 Hours

If you aren’t able to sell your item in the first 48 hours then there’s a good chance it’s no longer one of the top items listed on whatever search queries you’d want it to show for.

What you can do is delete the post and then re-post it. This moves your post up from your previous posting to the top of the list (since Craigslist archives by date).

Note that you cannot delete a post and re-post within 48 hours from the previous post (against Craigslist policies and you could get flagged for abuse).

Don’t worry, when you ‘delete’ a post, it isn’t really deleted completely. It is saved, and you can simply re-post it without having to re-create it.

If you don’t do this, many buyers will think your item has already sold, particularly after a post is a week old.

5. Match or Beat the Craigslist Competition at the Time of Listing

The fact that most items on Craigslist are not identical due to their age works in your favor.

But, Craigslist shoppers are a thrifty bunch.

Before you post an item, do your research to find out what similar items in similar condition are priced at. For smaller items, check out what they actually sold for on EBay.

Then try to match that price (if the item is in better condition or is a nicer brand) or beat it (if it’s in worse condition).

People generally make quick purchasing decisions on Craigslist, because if you don’t, the item is usually taken. If you have the best offering out there in the last few days, you will usually get a good response.

Craigslist Selling Tips Discussion:

• What Craigslist selling tips do you have?
• What’s your favorite Craigslist buying/selling story?

Related Posts:

• 5 Ways to Use Craigslist to Save & Make Money
• Craigslist vs. Ebay: Where to sell 10 common items
• Craigslist Alternative Meaning Humor
• How I Saved $1700 by Being a Craigslist Subletting Nomad

5 Craigslist Power User Tips to Selling Anything Super Fast is copyrighted by 20somethingfinance.com without consent to republish.

For starters, mass-market diesel cars generally aren’t noisy like they once were.

They also put out less greenhouse gases and have higher fuel efficiency than their gasoline powered cousins. And diesel engines have always lasted more miles than gasoline – so you can buy one and run it into the ground.

But, do they make sense to buy? Americans haven’t exactly been crazy about them.

Why is Diesel Vehicle Market Share in the U.S. so Low?

Diesel vehicles exceed 40% of the market share in Europe, however, diesel market share in the U.S. is just 2.2%, according to the Wall Street Journal.

Why?

Smog. Diesel vehicles put out more black sooty particulate matter (PM) and NOx (oxides of nitrogen) emissions, which lead to smog and adverse health effects. The California Air Resources Board, as a result, has put higher regulation standards on diesel vehicle emissions than the EPA.

As a result, very few vehicles meet both CARB and EPA clean diesel standards and only VW, Audi, Mercedes, BMW, and makers of a few heavy-duty trucks have entered the U.S. market.

Diesel Car Fuel Efficiency

In my most fuel efficient cars post, diesel lovers made their voices heard – THEY. LOVE. THEIR. DIESELS. When you look at their fuel efficiency, it’s easy to see why.

It’s a shame that more vehicles haven’t met environmental regulations because they sip fuel. Diesel has higher energy output per volume than gasoline, making the engine more efficient. Diesels tend to have 20-40% better fuel efficiency than similar gasoline vehicles.

Diesel has soared to high market share in Europe because it is cheaper than gasoline there. That has not been the case in recent years in the U.S., as diesel prices have trended modestly higher than regular unleaded. According to fueleconomy.gov, U.S. diesel prices averaged $3.93 per gallon as of March 28, 2011, while regular unleaded averaged $3.59.

Here’s a look at how the two fuels have trended over recent years.

source: U.S. Energy Information Administration

That hasn’t always been the case. A number of Gulf petro refineries that specialized in refining diesel have shut down, causing prices to increase.

With increased diesel production leading to lower prices in the future, new models entering the market, and improved emission controls, you might want to strongly consider a diesel for your next purchase.

The Cheapest Diesel Cars:

One thing we haven’t discussed yet: diesel cars aren’t cheap. At least compared to their gasoline cousins.

This is a personal finance blog, so I’m not going to discuss diesel vehicles that cost in excess of $45,000 – the Mercedes ML 350 Bluetec, Mercedes E350 Bluetec, VW Touareg, Audi Q7, BMW X4 XDrive35d.

There are actually only three vehicles on the market for around $30K and under – the Volkswagen Jetta, VW Golf, and the Audi A3. I’ll cover each of them and compare them to their gasoline powered relatives.

Note: Annual fuel costs are from fueleconomy.gov and are based on a price of $3.91 for a gallon of diesel and 15,000 annual miles (55% city).

Volkswagen Jetta TDI

Jetta TDI:

• MSRP: $24,095 for the 6-speed automatic and $22,095 for the 6-speed manual
• hwy mpg: 42, city mpg: 30
• annual fuel costs: $1,724
• co2 footprint: 6.2 tons/year

Jetta (Gasoline):

• MSRP: $19,095 for the 6-speed automatic and $17,995 for the 5-speed manual
• automatic – hwy mpg 31: , city mpg: 24, manual – hwy mpg: 33, city mpg: 23
• annual fuel costs: automatic: $1,981, manual: $2,062
• co2 footprint:  automatic: 6.9 tons/year, manual: 7.2 tons/year

Volkswagen Golf TDI

2 Door Golf TDI:

• MSRP: $24,325 for the 6-speed automatic and $23,225 for the 6-speed manual
• hwy mpg: 42, city mpg: 30
• annual fuel costs: $1,724
• co2 footprint: 6.2 tons/year

2 Door Golf (Gasoline):

• MSRP: $19,095 for the 6-speed automatic and $17,995 for the 5-speed manual
• automatic – hwy mpg 31: , city mpg: 24, manual – hwy mpg: 33, city mpg: 23
• annual fuel costs: automatic: $1,981, manual: $2,062
• co2 footprint:  automatic: 6.9 tons/year, manual: 7.2 tons/year

Audi A3 TDI

A3 2.0 TDI:

• MSRP: $30,250 for the 6-speed automatic (no manual version offered)
• hwy mpg: 42 , city mpg: 30
• annual fuel costs: $1,724
• co2 footprint:  6.2 tons/year

Audi A3 2.0 (Gasoline):

• MSRP: $28,750 for the 6-speed automatic and $27,270 for the 6-speed manual
• automatic – hwy mpg 28: , city mpg: 22, manual – hwy mpg: 30, city mpg: 21
• annual fuel costs: automatic: $2,383, manual: $2,383
• co2 footprint:  automatic: 7.8 tons/year, manual: 7.8 tons/year

The Value of Diesels

Once you get past the ‘I’m cool, I have a diesel’ ego boost, I’m just not seeing the payoff with the Jetta and Golf models. If you’re only saving $200 or so per year on fuel yet paying $5,000 or $4,000 more for the vehicle, you will likely never break even.

The A3, however, presents a money saving opportunity (comparatively). The diesel version is only $1,500 more than the gasoline, yet you’re saving roughly $650 per year at current fuel prices. You’d break even shortly after two years with the existing price spread. Why not go with with the diesel?

But when you compare all three models to the fuel efficiency of a Toyota Prius or the price and fuel efficiency of a Ford Fiesta, I don’t see how any diesel make sense economically. If you do buy one, go used to save money.

Diesel Discussion:

• Would you pay up for a diesel? why?
• If you’re a diesel lover, convince readers why they should consider a high priced diesel over cheaper alternatives.

Are the Cheapest Diesel Cars Worth the Price? is copyrighted by 20somethingfinance.com without consent to republish.