Hope the move goes well, agnut! Ten acres sounds terrific!!

__________________
"All my life I have been in love with gold. I love its colour, its brilliance, its divine heaviness. I love the texture of gold, and the warm tang it exudes when I melt it down into a true golden syrup. But, above all, I love the power that gold alone gives to its owner. I have worked all my life for gold and, in return, gold has worked for me and for those enterprises that I have espoused. I ask you, is there any other substance on earth that so rewards its owner?" - Auric Goldfinger

That's the major problem in the US, we pay taxes on the land.

Hi Haystackneedle. Your air conditioner buy was a good example of bargain hunting. A new unit would have been $600 and your slightly used one was $50. A cash savings of $550. Or was it more ? If you had bought the new one, the sales tax would have been around $48 at an 8% rate. You might say that you got yours for the sales tax and a couple of bucks !

Also keep in mind that that $600 PLUS sales tax for a new unit would have been from after tax money. Income tax, social security, etc. etc. Maybe you would have to earn $900 or so before Uncle Sam had dipped into your pockets.

The second smart thing you did was to have your eyes open for more possibilities WHILE you were transacting the first deal. The car deal was larger than the air conditioner deal and you wouldn’t have gotten it if you hadn’t thought to ask. Too often we become complacent or dulled by the deal we are making to see other, maybe much larger, deals right before our noses. It is important to know who you are dealing with and their mind set.

For instance, if they are handling an estate sale for a deceased family member, they often just want everything gone so that the house can be sold. Their mind set is that the house’s contents are holding up the far more important house sale. Knowing your seller’s motivation is crucial to the fine art of bargaining, haggling, negotiation; call it what you will, which should be discussed in fine detail. Because finding a good deal is only the beginning if you are to reap the full benefit.

There is deal making, better deal making, and perfect deal making. Well, as perfect as we flawed humans can perceive.

I would like to write more but we are still moving into our new digs. Wow ! What a lot of crap I have accumulated. My older son is still making fun of my packrat tendencies. It has been said that he who can laugh at himself will never cease to be amused. NOW I get it.

Best wishes,

Agnut

P.S. My transmission ad had the wrong phone number but two customers found my number elsewhere. They both told me that my number was wrong. The next caller who finds me, I will tell them, “Congratulations ! You have passed the I.Q. test. We will be happy to sell you a transmission now.” Don’t need no dummies screwing up my work and calling 20 times for free advice.

Hi buff01. Sounds like you have the car attitude straight. We all need to be thinking in the future. For example, how would you feel if you had bought a new car for $30K and we were in a crushing depression in a couple of years ? If you had bought on credit, the payments would feel like a hammer blow upside the head every month. And if you had paid cash, imagine how angry with yourself you would be that you had not instead invested that money in something that increased multiples in purchasing power.

Of course, a new car is all shiny and has zero miles when you first drive it off the dealer lot. Was it RiverRat who said that the most expensive perfume in the world was the new car smell ? But after you cross the line (first time putting the wheels on the public highway), you have nothing other than a used car ! There is no such thing as a new car; only used cars since you are going to USE it ! So get over the new car propaganda.

We can’t watch TV long until another car ad comes on, can we ? I enjoy watching them to see what they will come up with next to lure brain dead buyers. Have you seen the recent Mercedes ads where these beautiful models are leaning over and kissing their cars ? What is next ? A year of free sex in the back seat ?

I knew a used car salesman that bragged after a sale that he had “ripped his face off”. Meaning that he had sold the car for far more than it was really worth. Pretty disgusting. I rarely buy from a used car dealer; too much padding and too little opportunity to haggle.

To my way of thinking, new cars are a huge scam. A way to either lose great deal of savings or to chain oneself to a debt monster. Car prices, like house prices are high only because buyers can use credit. Selling their future for present pleasures. It is an insanity.

Physically we must live in the present but our future thinking should guide us to a brighter and more stable life. The mind can either be a paradise or a junkyard. A paradise as a result of wise choices. Or a junk pile of our mistakes. There is no avoiding this; we are responsible for our own actions and shouldn’t blame others for where we are in life.

Paying off your student loans with 401K proceeds sounds like a smart move to clear your debts. Some may advise to instead buy precious metals but I would tend to clear debts first. It may be good to write down a plan of when and how you will become debt free. Maybe a little precious metal buying along the way would be good if you can see that you will have things in order within a reasonable period of time. I can’t tell you what is best for you but a plan is always better than none.

There is talk of a liquidity crunch coming and I feel that this is a strong possibility. That is why I advised a while back to be very careful in buying good deals as well as having cash in hand for future opportunities. Nothing feels worse than to be facing a great deal and to not have the money to buy it. I have been there and learned the lesson well. Cash talks and bullshit walks.

I want it clearly understood that I am not an advocate of having a lot of currency on hand except for opportunities. Think of currency as “current” value, as at a particular time. Currency is only a tool (and sometimes a hot potato to be passed on) to acquire true wealth.

Cash has the power to make a good deal into a great deal through negotiating the price. Never accept the asking price without offering less. Well, there are a few instances where the deal is so good that to offer less would be an insult. When in this situation, making a package deal for more items may work.

There are many ways to work deals and they are only limited by your imagination. For instance, almost new quality winter coats can be found cheaply in spring and summer. Some items are seasonal and can be bought out of season and later sold for more in season. Try selling an artificial Christmas tree in July.

After making several deals, you will become more confident. And I bet you will be asking yourself why you hadn’t done this sooner.

Best wishes,

Agnut

Hi bottom feeder. You gave some sound advice there.

The future belongs to those who study history, are open to new possibilities and are in control of their lives. I may have missed some qualities like a positive attitude and motivation but you get the picture. We need to be a whole package of qualities to most effectively attain our goals.

I have mixed feelings in paying off a debt earlier if the debtor doesn’t have some form of savings for emergencies or opportunities. It depends on an individual’s situation. And we all are living our own lives. I am not into meddling in others’ lives but only presenting opportunities if they make sense to readers.

It is so blatantly obvious that we waste a lot of our money. I cringe when I see others doing this. I would be the first to admit that I am guilty of doing this at times but on the positive side, I have many of the leaks plugged in my financial boat and am actively seeking improvements. It is all about personal choices and needs/wants.

I am on a dial up connection and it is a pain in some ways. Cheap but slow and it kicks me off if I don’t surf around often enough. The only other option is satellite dish; pricey and locked into a two year contract. There is something that bothers me in being locked into a contract. Feels like buying on credit and I don’t know what the future will hold. Small potatoes but you can see that I watch even the small things for possible savings.

My sons and I have been living on the 10 acres for several days now and love it. It is so quiet and peaceful. Hawks and American bald eagles flying overhead. Deer in the field. Got cakes on the griddle; life ain’t nothin’ but a funny, funny riddle. Thank God I’m a country boy !

A funny thing happened Friday. I had earlier told my landlord that I was moving the business and would be out by the end of September. He said that he already had someone who wanted the building. The next day the prospective new tenants met with me. They were between a rock and a hard place. They had to move their business as soon as possible and offered to move my whole business for me if I could be out by the end of September. They have the big trucks and heavy equipment. Good thing because I have many tons of transmissions and equipment. And moving a month earlier would save me about $1,500. So far, so good. I will keep you posted on this “deal”. See, deals come in all shapes and forms; this one is a new one for me.

We haven’t bought any more food stocks lately. We have to check expiration dates and rotate inventory that we already have.

Best wishes,

Agnut

Here's another example of the economy softening. I always watch for deals on tools, either new on the internet or somebody selling all they have, then resell them at a decent profit. This winter I bought a trailerload, and sold it all to a guy the next day for a good profit, he has a booth at a flea market. Several days ago I bought a good amount of tools from somebody, and called this flea market dealer to see if he was interested, he came out but his offer was to low. He says that prices are way down on used tools, he can't sell them like he could, even as recently as this past winter. Nobody has the money anymore.

Like you said Agnut, one must only buy good deals. I paid a bit to much, I thought going into it that he had more goodies in the lot, and was a bit disappointed. I didn't pay asking price, but had driven a few miles, and so felt moved to buy. I didn't realize then that the bottom had fallen out of the tool market. I think I will be able to part everything out, use a few tools myself, and come out ahead, but not by as much as I had wanted.

Interesting thing he said was that on a large tool for several hundred dollars, a white guy might ask his buddy to borrow $50, but won't get it. Several mexicans might come by, and not only will they negotiate the price, but they will all chip in $50 each and buy it together. They are the only ones buying now, and like he said, they are the only ones doing the labor.

Who wants to do unskilled labor and get paid barley anything, you know they are the ones hired by "white" contractors, they know a good investment when they see one, pay these mexicans low wage to build a 400k house.

I can't drive and am in the middle of nowhere (right eye isn't good), so my arbitrage will have to be over the 'net and be able to absorb the cost of shipping...any suggestions?

You can always use craigslist. If what you're selling/buying is right, people will come to you to do business.

__________________
"Belief is the wound that knowledge heals."
- Ursula K. LeGuin

Hi Silverstone. Sounds like the story of the prodigal son with a twist of wry. One stayed at home and the other went into the world with a fortune only to become poorer but wiser. Well, hopefully wiser. And maybe your prodigal son will return home someday. The world is an excellent teacher but the tuition can be very expensive. We can tell our children from our experience but this advice is usually received as only theory.

Some learn by listening, some learn by reading and studying and some have to learn by peeing on the electric barbed wire fence. Not sure if the latter really works but I would sure like to see it tested on the Myth Busters show.

Insanity is hereditary; you get it from your kids. Been there, done that. But in time they grow into responsible adults. hopefully before we die of old age. I see it all around me with the rebellious kids. I guess I am one of the lucky ones; my sons and I have passed through that stage and are a team now.

My two sons are so different. The younger one is quiet and conservative; he and I have conversations about the economy and world situation. He only buys items when they are ridiculously cheap and he has a use for them. He is an avid PM follower and invests accordingly.

My older son is very outgoing; for instance he was the lead in his high school play. He will be a terror out there in deal making as he matures. He often drags things home that he got for free. Some of them are worth hundreds of dollars. He wanted a reliable trade for the future and asked me to teach him auto mechanics. Since my specialty is manual transmissions, I am teaching him what I know best. We don’t work on customers’ cars but only do bench rebuilding for other shops and retail customers. It pays better than general repair and is a lot less complicated as long as you know what you are doing. I have told him that his wanting to learn this is the wisest thing he has done. After he is fully trained, he will run the business and I will then be free to pursue other interests with my younger son. We intend to go into buying and selling bargains full time.

I can’t emphasize enough that we all need a source of income that can’t be exported and will be in demand in a bad economy. Maybe a depression. With this in mind, I would expect that people will need reliable transportation. And especially high MPG cars. I don’t expect Americans to go to bicycles and walking on a large scale. I would rather expect them to ride share more and only use their car for multiple shopping stops. They will become more organized and less wasteful. It will be forced upon them by discretionary income being more squeezed as time passes.

Since we have moved to acreage, my older son (who has ten green thumbs by the way) and I have been discussing the potential for organically grown vegetables and fruit. Not right now but if the public becomes aware, there may be a long term need to be filled. A couple of acres put to use may be enough to provide for us as well as make a profit. Just a healthy thought. There are enough blackberry bushes here to start a vineyard.

Another possibility is to restore VW diesel cars. As I wrote before, they get 50-55 MPG and in either an inflationary or deflationary future they should be in great demand. I am actively seeking out more non running diesel VWs. I have three so far and consider them an insurance policy for the future. Trouble is, they have become harder to find. People are pulling them out of their back yards and fixing them for the future.

There is a way to buy these cars and I could go into greater detail if any readers are interested. Heck, I might do it anyway. I’m kinda pushy when it comes to telling others what makes good money.

Silverstone, don’t be discouraged that your children make expensive mistakes. You sound like a great parent and have planted good seeds in your childrens’ minds. It takes time for them to grow and bear fruit. You gave them sound advice, one son acted otherwise (with the consequent losses) and now could be time to talk with him about listening to your future entreaties. This is not a time for “I told you so” but to gently let him know that you are there for any future considerations. I have been through this with my older son and we are a lot closer as a result. I couldn’t be more happy and proud of my sons. You could read any number of child rearing books but I feel that we are flying by the seat of our pants. No book could possibly cover all the unexpected things that can happen. We have to live it. Having the patience of a saint and an active sense of humor are crucial in raising children.

Kids ! Ya gotta love ‘em.

Best wishes,

Agnut

Where your heart lies, therein lies your treasure.

Good one Kahlil Gibran. I wonder if it would help my ‘73 Chevy ¾ 4X4 truck. Naah, wouldn’t fool a blind man. Transmission sounds like a cement truck and the rusty holes in the floorboards would blow away any “perfume smell”. However, this truck is perfect for the future when we want to be low profile. A real redneck monster.

Best wishes,

Agnut

Hi handyman. Thanks for the input. It just goes to show how fast things can deteriorate (tightening up, if you want to be delicate). I had a similar experience when the Disney video tape market fell. Tapes that were $20 to $30 each fell to a dollar each. But that is what I bought them for and can at least recoup my investment. Besides, I didn’t have some of them in my collection. I also gave some away as goodwill to families with small children. Hard to put a value on that.

This article, “The Main Causes Of The Great Depression”, sounds like what we are doing today but on a much, much larger scale. And therefore the crash will be greater and deeper.

http://www.gusmorino.com/pag3/greatdepression/

I think people have too many items around and are reaching their credit limits. Like mentioned in the article. Too much supply and too little demand results in dramatically falling prices for used items. When the economy falters, we have to change our bartering and horse trading strategies. Pull in our horns and wait for stability to return.

The Mexicans buying tools are trying to get a toehold in the economy. But they may not realize that construction work is diminishing and may come to a virtual standstill in a crash. I have read of their complaining that there isn’t enough work around. They do cooperate well with each other, something that would be wise for Americans to learn.

Yesterday my son and I were looking for wood pallets for a floor for the horse barn. We found several for free at the local Office Max. They said that the man who had been hauling them off had died and they were only too happy to get rid of them. We hauled off 11 nice ones but left 10 or so funky ones. I got to thinking about this and realized that here was all the free firewood just for the taking. I spoke with Ponce this morning and he got rather excited and said that we should haul off these pallets any time we can. I wonder how many I can stack around our place until someone complains.

We have two heavy steel furnaces that we have been thinking of using to heat the house, shop and a Jacuzzi. Additionally we have a wood burning stove to heat the house. So there is a need for fuel to feed these beasts. Maybe to even run a steam powered generator someday. Ponce has a way of heating a Jacuzzi with a wood burner and I will try it as soon as the weather turns cold here (and I get a used Jacuzzi, cheap as possible of course). He also said that I wouldn’t need a pump to move the water as it was heating in the furnace; temp differentials would do that. I am not sure here and may want the control of a pump to prevent overheating of the pipes in the furnace.

The trick to having a Jacuzzi that doesn’t break your pocketbook is to only turn it on a half hour before you are going to use it and turn it off right after you get out. I want to refine the heating costs with scrap wood and household trash. After the water is wood furnace heated from 50 to 100 degrees, the regular electric heater will take over for the few minutes we use it. I don’t expect that the pump would cost much electricity in comparison to the demands from the electric heating element.

The reason that used Jacuzzis are cheap is that they are expensive to operate. New ones are $3,000 to $4,000 and they take a beating when taken off the showroom floor. They are a luxury item and used ones are often for free if someone will take them off the property. I would expect more to become available as the economy worsens. Also, I am in no hurry. Just another project.

As you can see, opportunities to save money are all around us. This wood pallet/heating/Jacuzzi example is just one and we are limited only by our imaginations.

Best wishes,

Agnut

darn it...I just found this thread today....I have not really focused on this particular forum before...mostly at general discussion forum...so I missed this one until someone posted a link at general discussion. Thanks!

This is about the best thread I have ever seen in my 12 or so years of surfing the internet. congrats to all!

About 4 or 5 years ago....I had a couple of months of downtime (sold one company before starting a new one) and I started going to storage locker auctions, estate sales, etc. I did well at the storage locker stuff...and I was woefully inefficient. There are auctions every day in the Phoenix metro area. It is a great place for auctions...probably like Las vegas in that the population here moves around alot - mostly to and from other states. I found some great stuff...For $300 I got like 7 storage units crammed full of books/records, etc. This was a pain..because I had to rent the units for a month to get it all moved (this cost me another $700 - some of the units were very large). I bid on all 7 auctions and won them all..no one bid because it was alot of work...and it was the middle of the summer. I spent two weeks from open until close of the business pouring thru the units (hired a day laborer to help me move boxes). I stored away the best stuff..and I still have alot of it (storage is free in a barn on a property I have)...and sold off some stuff to some internet book dealers... It was a great deal..alot of the stuff was over 100 years old. Nothing worth 1,000s of $$....by itself...but I did sell a few items for over $100 each. It was alot of work...but I sorted thru it fast.

Another unit find was one full of a medical equipment company that had gone out of business. This was $100...and it was very good.

There were about 12 or so people that would follow the auctioneer in the summer...but by the end of the day...and driving all over town..it was down to one or two buyers (one was me). In the winter months...there would be 20 or 25+ people..it was like a circus having all of these vehicles going from site to site..mostly following each other. I decided to punt the winter months and only do the summer.

I do not know the process from a legal standpoint...I fill out a form after I won an auction..but no one ever contacted me. I do know that there was a case in Arizona (cannot find a link now) where someone purchased a storage unit that contained a lot of very expensive art work (in the millions of dollars ..I think) ..the artists widow had stored it and she died at an old age....and it go auctioned. I am not sure the family would have ever known about it if the buyer who purchased the unit did not start talking about his find and the local newspapers eventually picked it up..and then lawsuits started.

Anyway...never really had a dud in my few months of storage unit buying....but it was alot of work...and you had to have good equipment...maybe a little help at times..and somewhere to store alot of stuff.

Here is a link to one of the auctioneers sites...in phoenix....just to give you an idea of the schedule. A few years ago they would go all day..appears now they go until about noon...

I have been a power seller at times on ebay....kind of retired a few years ago as I had no time...but most of my stuff came from storage units, estate sales, garage sales, etc. This was pre craigslist....

http://www.bccole.com/cgi-bin/Process.cgi?act=CALENDAR

Hi Skirnir. Buff01 has a good suggestion there. I have had some great deals through Craigslist in both selling and buying. And it is free to advertise.

If you don’t mind my asking, what is your visual problem ? Do you have one good eye and lack depth perception ? That is my situation as my right eye has 20-200 vision (legally blind) since birth and the left is fine with glasses. I’ve never had depth perception but have been driving since I was 16. The body and mind tend to compensate in other ways.

If you cannot drive, maybe a friend would go out with you in chasing down deals. That is, if it suits you. Otherwise, there are deals on the internet such as Craigslist, Ebay surplus goods, etc.

When you sell on Ebay, the buyer usually pays for the shipping and insurance. However I sometimes sell with shipping included when I feel that this helps attract more bidders. And offering single shipping on multiple auctions won also brings out the competitive bidders. Sometimes I can’t believe the final bid goes as high as it does.

One of the advantages of buying items for resale profit is that you can do as much or as little as you feel like. You can do it when times are good and sit back when times are not right. As I wrote several weeks back, now may be a good time to watch and wait while holding cash for future deals. Notice all the talk about liquidity problems lately ?

Unstable currency begets uncertain valuations of all sorts. What is a dollar worth in relation to an item when the dollar is losing cred(it)ibility ? And unbridled credit issuance and profligate currency issuance are at the center of the trillions in currencies out there looking desperately for continuity of purchasing power. Sadly, ALL unbacked fiat currencies have purchasing value only as long as sellers have confidence in their continued value.

The dollar is like playing “warm potato”; it is uncomfortably warm to hold for very long but is becoming warmer as time passes. When it gets hot enough to be called hot potato, it is passed on to the next sucker as soon as possible. And after the hot potato becomes white hot ? It burns to ashes; just like what paper currency does in a hyperinflation.

Fiat currency doesn’t DESERVE respect any more than a thief would be welcome in your home.

I recommend that you think of fiat currencies as mere tools to be used in the process of acquiring real wealth.

Best wishes,

agnut

Great post Pinnacle !
Regards,
Haystackneedle

Hello Agnut,
I trust you are doing well on your work at the new place.
It sounds like a great place to spread out.
You touched on something above that is near and dear to me.
And that is how I "think" about the cost of something.
Let us say I see something that I want and it is priced at 100.00.
I have conditioned ( tried that is ) myself in two ways...
the first is for the sales tax and the second is for the FED garnishment / usage fee to transact in their money system.
To me...the item is NOT 100.00
It is 100% of transaction price times 1.07 ( if sales tax must be paid ) PLUS the cost of what it takes for me to make that money that I am now spending.
I usually round this off to a 1.3 or a 1.4 factor just for head cyphering.
Therefore that 100 dollar item in actuality is a 140.00 +- item when one figures in all of these costs. 500 becomes 700 +- as well....
I am working on the daughter on this one to some success.....
" Ann....ummm yknow that 20 dollar DVD ??..( and we will not go into how ridiculous the price of these things are )...how about if I told you it is
really 25 or 26 dollars for the family to buy it ? "
Some interesting discussion has been had on this subject !!
In my above post, you are correct, I paid +- 50 plus travel expense for what was about an 800 dollar unit using our tax formula....now THAT gets my attention.
AND, ( the better part )
I have nearly Doubled my outlay on the auto I purchased as an aside to the original mission just by being friendly....talking....and applying some major elbow grease on the weekend....I have found that people have a VERY difficult time visualizing cleaning up other peoples trash or unkept items.
I have frequently LOST good deals ( and kicked myself after going back and the item was no longer there ) because I did NOT follow my original GUT feeling....I find that my gut is almost always profitable.
All of this discussion reminds me of my reading about some of the mid 1900's documentary photographer groups...one group...the F8's...their motto to obtain good photographs was " F8 and be there "....
There is indeed a LOT to be said for just being there...the action taken then becomes the secondary concern.

Regards Agnut,
Haystackneedle

P.S. Boy would I ever like to hear more on your diesel VW thoughts

hystckndle - thanks.

This thread brought back about 10 ideas I was going to do and forgot about. I was going to run around and buy small diesel cars...like VW's...about 3 years ago...kind of hoard them and resell when gas prices went up...and when people could really not afford to waste all their money on gas for their SUV's. I guess that time is almost here! So many ideas..and so little time!

Pinnacle,
Dunno if you are still in the AZ area,
but I am over here in Florida...
I am thinking that the "graying America" demographics
in both our areas will boost the cleaning out of storage rentals...
Lots of folks wanting to downsize....
I have heard a few caveats about the advertised storage rental
auctions here though...
Being that the managers scam the good perceived stuff first and then "bait" the left overs to guys like us at the auctions.
That is just hear say on my part though, as I haven't done it and you have.
Big difference there...I hesitate to EVER rain on any parade unless I have actually walked a few blocks to see what it is like.
Regards,
Haystackneedle

Haystackneedle

This is a valid issue...bidding on a staged unitt.... I will say that I have never seen a unit go for over $250 here....but I did not exactly go to 100's of auctions.. I guess my point is this: baiting will not get them too far....it is a pretty savvy crowd following the auctioneer around. In some cases... a unit crammed full of boxes is a negative...because you have to be out in 24 hours...and is 110+ in the summer (95% of the auctions are for units with no AC). A lot of the guys are not exactly spring chickens....so having alot of boxes usually runs off bidders. The best bids come for units with cars in them. I have seen some units that looked like they were full of kids toys and clothes...and they go for like $20 - $50.....mostly boxes and trash bags full of stuff....so those are not in high demand. Worse case is you sell a few toys on ebay..get your money back..and haul the rest to a dump or goodwill.

I know some of the owners personally...and I will say that some of the ones I know are too lazy to try and go thru this stuff and cherry pick. They barely want to get outside the office for 5 minutes to show people their units... If you have every been to phoenix in June, July and August...you will know what i am talking about.

Going off topic a little....but..In some twisted way....I do not like the heat if I am dressed up....but I do not mind it if I am in a t-short and shorts...it is good to sweat off a few pounds! Yesterday it was 110 degrees with 52% humidity...if you can imagine that. People think it is a dry heat...but not from end of July until September...it is freaking hot! June is very dry...so it does not feel as hot.


Some are advertised "locks cut by auctioneer".....but I am skeptical of this claim..the locks could be for show.

Hi Pinnacle and thanks for your great post. A clear example of what bartering and horse trading can accomplish. Readers need to see what is being profitably done in the real world. Examples like yours may get some of them to get up off the chair and join us in seeking more financial freedom in their lives. Because to sit and think you are comfortable now is an illusion. The future has a way of changing the playing field and we all must be able to move, dodge and pick up the ball and run with it. Life is not a spectator sport.

I was bidding on abandoned storage container contents several years ago. This was in San Diego. There were several bidders and we were not allowed to enter the container to examine the contents but only allowed to look into the opening. Kind of like buying a pig in a poke. Most containers were what I would call a setup. By that I mean that promising items were clearly in view. However when the winning bidder closely examined the goods, they were often not at all what they appeared. Kinda like picking up a date at a bar’s last call when you are half bombed. And the screams and denial of what you did are similar the next morning. You got screwed alright but not how you had expected. The pig in a poke again thing.

Look, I have won several good storage container contents but I must caution you to be wary like a fox when bidding. Are there any shills bidding the prices up ? I have experienced that. Are the items you can see pulling at your emotions rather than your wise profit making sense ? I have been there. Have you bid for a storage container because the price was too cheap only to find that it was more work to haul off and clean the container than it was worth the time spent ? One or two of these losers was enough to never allow myself to be caught in this kind of trap.

As I remember, the good containers had a different look than a setup. They had contents that were of high quality and not a million grab bags full of trash. The bidding was higher but the resultant profit was worth it. It takes time and experience to spot these gem containers.

Not to be negative about buying storage containers but some areas of the country may be much better than others. If I were in San Diego again I wouldn’t invest my time in this type of deal making. There are a lot of Mexicans bidding and several housewives too and that competition can sometimes be fierce. Also, the containers usually looked like they had been picked over by the owners. If/when the economy gets bad I expect more good stuff becoming available. Why ? People will not only lose their container due to back rent but many will get sick and tired of paying every month for storage of items that they don’t use or need. Be aware of this scenario and don’t pay too much as the demand and selling price will also be less.

Standing and bidding against others carries the potential for an ego fight, a pissing contest. I have seen this and had a few laughs about the “winner” really being the biggest loser there. As I have said before, emotions have no place in the business of bartering and horse trading. I have seen this cold calculation in others and the rewards it reaps. There will be plenty of time to celebrate later but never when buying.

My favorite deals have been on a one on one basis. There are no competitors and I have the full attention of the seller. I am at the advantage here because I am the only one before the seller offering to pay with cash in hand. In this situation, the seller is torn between accepting my price or losing the deal and waiting for another buyer who may never come. I let the seller’s uncertainty do most of the work. I have even offered and walked away only to be called back to finalize the deal. We must be able to walk away from a deal. Can’t ever appear anxious. There will always be other deals. The buyer has the cash and therefore is extremely liquid whereas the seller only has items that can’t be traded for food, rent, gas and the multitude if things that cash can. Always remember this.

Also remember that you make your money when buying the item. Because if you paid too much, no matter what you do, you will not make a profit when you sell. Also, you can’t buy an item too cheap !

It may seem contradictory to what I said about sellers’ inferior position but when selling, never be anxious to sell. That is their mistake and should not be yours. Don’t put yourself in a position to need the money from a sale. It is what is known as “scared money” and buyers can smell the blood and will go in for the kill. What gets killed is your profit. Hope I have been clear about this.

I will be the first to admit that I have made mistakes, lots of them. The biggest ones have been in matters of the heart, if you know what I mean. Those mistakes can take years to recover so buyer beware. I love the ladies (just can’t afford ‘em). And having kids ? I wouldn’t trade the world for one of mine but I wouldn’t give you a plugged nickel for another one.

Another point I don’t mind repeating is that if a deal looks too good to be true, it may really be a great deal upon deeper investigation. Some of my very best deals came from what seemed too good to be true. So don’t believe that old quote for I have often found it to be false. Maybe it applies to the brain dead deal maker. Good advice for those who can’t walk and chew gum at the same time.

I know it is tempting to turn in a wad of cash for precious metals but this cash needs to be in hand for deals that may come from out of the blue. A neighbor is selling a riding mower for $20 because it needs a tuneup or his second car isn’t needed and he is desperate for the cash to pay his mortgage. You are not taking advantage of him but providing him with a need he has. It is a fair trade and should be transacted with this attitude.

Sellers who don’t manage their finances well put themselves in the position to have to sell at low prices because they are under a time constraint. However, you as the wise dealer are in no hurry and can pick and choose your deals. It is not your fault nor responsibility for the sellers’ inadequacies.

So far my sons and I have gotten three truck loads of wooden pallets. More than half of them are made of oak or a hardwood. We have gotten them for free. Great for the sawdust barn floors or firewood to heat the house and shop. Ponce said that I should get all I can for the future. He said that I could probably sell them right now but I want to keep accumulating them for our own needs. I wonder if I would have any problem with the neighbors if I has several hundred stacked around. Having 10 acres in the country has its advantages and I am only beginning to explore the possibilities.

I find it curious that there are all these free wood pallets laying around and yet people are complaining that heating and electric prices are high. In a day I can probably pick up enough free wood to heat my house and shop for the whole winter. I just don’t understand people sometimes but I’m not complaining, mind you.

My favorite is the estate sale. They are sometimes listed in the papers under garage sale heading and you might not even know until you are standing amidst all the items for sale. Usually great merchandise and prices. Again, one on one dealing which puts you, the buyer, in the driver’s seat. Get there early; sleeping in is for losers.

Best wishes,

agnut

thanks agnut. Great info again. Estate sales...I do not go much anymore as I am too busy with other stuff...but when I did hit them I found the best ones were the ones done by the family or private individuals. There are "professional" estate sale companies that do them on behalf of the heirs...and in my experience the professional services jack the prices thru the roof. In fact...they will print out pictures of comparable items that have sold on Ebay and put up a sign and say: We only want 90% of the ebay selling price. I have historically had a very hard time negotiating with professional estate sale folks....I figured they would be desperate the last day of the sale..the last hour...but they are not (they run alot of these sales wednesday thru saturday). The first day or few hours...everything is gold plated priced and they rarely miss valuable items. I remember two groups in AZ that had extreme attitudes also..that does not help. I do know that they do occasionally get hung with alot of stuff because they just ask too much. Who wants to pay 90% of retail on an estate sale! I have tried negotiating with them after the fact....when I have walked and they are closed...and alot of stuff is left...and they still do not want to really negotiate. I assume these professional estate sale sponsors are in the biz for themselves and end up buying what is left...and they try to discourage others from screwing up their plans. It is obviously a totally unlicensed..unregulated...fly by night segment...all you need is a few signs that say estate sales...and you are in business.

On the other hand...some of my best buys have come from estates being sold by the heirs themselves...those are a gold mine...especially in Arizona (retirement land) where I live.

Hi Haystackneedle. We have finished moving the household but are in the middle of moving the business. It sounds crazy but the new tenant is desperate to get in early and has offered to do the moving for us. Many tons of stuff. They even had a 35 foot flatbed semi and a forklift with other moving equipment. Also I will save about $1500 by moving a month earlier than I had planned. All that is left are smaller items that my son and I can move ourselves. But these guys are so great that they are still helping us move this morning. They build exotic engines and have a flow bench and huge brake for fabricating metal. From what I can tell, they are at the top of their game. We are building a relationship with them and we are mutually grateful that things are so intensely advantageous to both of us that the heavy work is being done joyfully. Although we are all exhausted at the end of the day, we can see enormous progress. I hope that the conclusion of this joint effort leaves us all happy and with a stronger relationship for the future. I have always felt that success is founded on building sound relationships. And it is these relationships that will provide a security in hard times. Although there was 25% unemployment in Depression I, there was still employment for those resourceful and willing to do whatever work is necessary to not only survive but to prosper in such hard times. Which are about to become obvious.

Attitude is so important and even though we may see folks losing faith in the future, we must remain positive and have a healthy sense of humor. In fact, I can quickly tell a lot of a person by what he or she finds funny. It is a thread which runs through us all. Some have a thin thread and some have a wide multicolored rope. Some tend toward the morbid and cynical and some of the best are observational of the foibles of human nature. I talk to Ponce often and he has the quickest mind and broadest understanding of the world that I can recall in anybody I can remember. I tease him and call him my “Cuban uncle”. Like a Dutch uncle but more stern if that is possible. A mentor if you will. With a broad sense of humor. By the way, he has a great admiration for Tn…Andy and how he has set up himself and his family for the future. I agree, especially after seeing Tn…Andy’s pictures of his homestead. WOW !

I am a long way from being that prepared but am heading in that direction as best I can. Got the acreage and a new business to pay the bills but need to put in an orchard and garden.

By the way, our next door neighbor has a huge Zebra and a jackass. My sons and I met the German lady who owns the place about a year ago in the local supermarket. We had no idea at that time that we would become next door neighbors. We plan to pay her a visit when time permits. Small world. Also someone has a peacock as I can hear it through the woods. There are bald eagles and hawks flying overhead and a deer and her fawn stroll through our front yard and field. Yesterday my older son said that he loved several things about living here, especially the people. I told him that he had fallen in love with the place as I and my younger son had done earlier. A little revelation for him, I think. Heartwarming actually.

Haystackneedle, you are dead spot on about the attitude of realizing what you are really paying for something. This is foundational to bartering and horse trading. Trading your value for something of greater value. I tend to emphasize the buying of used items because there is such an incredible savings to be had. Also I am a hunter/gatherer by nature and revel in the hunt. It is a game for me and so satisfying that words can scarcely describe. THAT is why I love to see readers wake up to the possibilities and begin to take control of their financial lives. A real win-win situation.

I may have mentioned it earlier but many items are seasonal and understanding this ebb and flow can be a longer term profitable endeavor. For instance, buying winter coats in the late spring and summer and then selling them as winter approaches can easily make multiples of profit. Boats in the winter are cheaper but they are a mixed bag in that they are discretionary; a luxury and may take a beating between when you buy them and when you sell them. See, every purchase must be envisioned of what it will be worth in the future. I know it sounds like a guessing game but if you will take the time to think beforehand, you may be able to sidestep some poor purchases.

My sons and I would love to get the DVDs as soon as they come out but have only done this once or twice. Cringe ! I have been finding them at garage sales for a fraction of the new price. Got the Star Wars trilogy DVD set for a dollar. I gotta tell ya, if you aren’t “mining” the garage sales, you are blowing a lot of money by buying in the stores. Maybe it would be good to think of garage sales as stores that have “lost my lease” sales. And to boot, the owners often don’t have a clue what the real price should be. HaHa

What I consider a real deal right now are the prerecorded videotapes being sold for between a dime and a dollar. The DVDs of the same movie are much more expensive and scarce right now. By the way, I expect to see a lot of DVDs being sold cheap in the future when folks are liquidating their assets, so be ready for this if you want to add to a collection. Why go to the movies when you can but some great movies, watch them and later sell them for what you paid or at a profit. Last garage sale I sold some great videos for $2 each. But when I buy I don’t pay anything near that price. What does it cost for three people to go to a movie theater these days ? $21 ? Plus popcorn and drinks ? And the gas and wear and tear on a car and standing in line ? Not to mention the sticky floors.

Another thing to remember is that the items bought dirt cheap can be sold later either at a profit or most of your money back. This is if you end up selling in a depressed time. The loss from buying at retail to later selling used in a bad economy is tremendous. Think ahead to avoid regrets later.

I need a large riding mower but feel that the winter may be a better time to buy. Besides, I expect the economy to be tighter this winter so the used prices may be even better. So we will mow the large lawn with what we have for now, biding our time. Time can work for you or against you.

Like you Haystackneedle, I wish all who read this thread will become encouraged to get out there and find what a wonderful world of savings is waiting in garage sales and estate sales. And that “gut feeling” is such a surprise to learn that you had it in you all the time.

I think it is admirable that you are working with your children in teaching them of the value of money and how to spend it wisely. It will last them a lifetime and may even be passed on to their children. Once you lose your ignorance, you can’t get it back. HaHa

I will be only too happy to write about the diesel VWs when I get some time. There is much to tell and a lot of details. Just yesterday a young man came into my shop and wanted to trade his diesel VW Jetta for my gas VW Scirocco out back. We will be haggling for a while and I don’t know if the deal will go through but since I only have $50 in my car and his is worth about $2,000 and he needs a rebuild on another car’s transmission, I may get a diesel car for $50, $150 parts and some labor. See, sometimes you have to fly by the seat of your pants. But at least it is flying above and not trudging with the earthbound throng. Working 8-5, Monday to Friday never appealed to me and it shouldn’t to you. There is a lot more out there just waiting.

Best wishes,

Agnut

P.S. My older son just pointed out a deer feeding by the barn. She is not the same we have been seeing in our front yard lately so there may be several in the area.

P.P.S. Congratulations on your car deal ! What year and model is it ?

Agnut:

Question for you - sure it will help everyone. I am trying to think ahead to depression items. I am sure....at some point here in the future....we will be littered with opportunities. I am already starting to see way more stuff on craigslist than I used to. This has mostly been occuring within the past 2 or 3 weeks....seems to be happening rather fast. I am starting to see people unload stuff to make the mortgage payments. If anyone subscribes to foreclosure.com - you can get a free trial (make sure to cancel - if you do not want it after 7 days!) - you can hit your zip code and see foreclosures, preforeclosures, bankruptcies and tax liens. They are skyrocketing in my immediate area. Every day..there are a bunch more. A year ago..there were like none. I am sure this will translate into more toys (boats, jet skis, etc), gold, silver, household items, etc coming onto the market.

I am being real cautious right now on buying stuff.

My Question: If the economy really starts to tank...we (I) need to change our thinking a little. What will have the most value in a downward economy? What will no one want anymore? I am a little skittish on high end items....I see a ton of vehicles now on craigslist....alot of trucks and SUVs...but this is something I would stay away from - the Sellers are using prices from 6 months ago..same with real estate. I am not sure reality has set in yet of what stuff is really worth - I guess that is my point. People need money and want to sell...I am just not sure they are desperate enough to really let go of stuff at a market clearing price.

Any comments on this subject appreciated...

Masonic plot: what are you seeing out there. Rumor is that alot of the illegals are going home....has that affected your business?

Good posts. Wise experience and sage advice.
I’ve been doing some garage sailing lately — on the lookout for junk silver, and more recently on the lookout for sterling silver (as per the thread). I just can’t bring myself to pay the prices I’ve seen so far (just a couple of instances for flatware, cups and serving dishes). And both places wanted more than I wanted to pay for something that I knew little about. Sterling is supposed to be .925 silver (1oz sterling = .925oz silver), right? Is all of it .925 or just the best? And what should I be looking for in markings on the silverware beyond the word “sterling”? Do you carry a reference book of those marks? And how do I estimate the weight of the pieces if I don’t bring a scale along with me? Humm — maybe I should keep an eye open for a cheap postal scale — that should work.

Seattle is such a good area for garage sales. Especially over in Bellevue. I don’t know why but those guys over there (in Bellevue) seem to have a way of clearing out their almost new stuff every six month or so. Probably so they can buy more. A lot of the stuff is something that I have no personal desire to own; exercise set, big TVs, ski stuff, and video games and/or consoles. West Seattle is also a very good place because there are many older homes and households there. You can find an estate sale or three almost every weekend. One day I purchased a five pound box of solid copper nails for five bucks. They are buried in my garage somewhere, along with boxes of my other “great” buys. If I ever decide to move from here I will groan at the thought of emptying that storage area that everyone else calls a garage.

Hi Pinnacle. Some good advice in your post #264. You are right; the professionally run estate sales have high prices. Nothing like trying to make a buck in dealing with a pro. Not much slips past them.

You last post asking about a depression scenario has had me thinking for a while. I wrote several weeks ago that it appeared that the economy had passed its peak in that disposable income had almost disappeared. The continuance of this tightening results in prices readjusting to what the market will bear. And readjusting is a polite way to say that there will be a lot of sellers and few buyers. A period of falling prices. As we pass through time we can see the writing on the wall and pull in our horns. The signs are all around us. This is a time to sit on the sidelines and remain liquid. And as I said before, only buy things you really need or can quickly sell for a considerable profit. There will be deals as the economy deteriorates but they must be made with great caution and only with a part of your savings.

Although the fiat dollar has lost a great part of its purchasing power in the last few years, it still is the most liquid form of trading material. Bartering without dollars is too slow and complicated and will never be used on a society wide scale unless we have a complete breakdown of the system. And TPTB don’t want that to happen. So we need to know what a fiat dollar is and learn to deal with it as best we can. With the current liquidity crunch (aka house of cards), retaining fiat dollars may be one of our most valuable preparations.

As an economy goes in the dumper, people slow their spending. Then they try to sell unwanted items. Next they sell their necessities but this only lasts until they are out of items to sell. And of course this is a bad time to sell because everybody is selling and few are buying. Many have to sell since they are in the process of losing their homes. The old supply and demand equation kicks in with a vengeance. I read recently that in the crash of 1929, brokers who had lost their fortunes were selling their Rolls Royce cars for $100. It was a time of extreme liquidity crunch. As I read, people had been buying radios and cars on credit. And when the jobs ended and what savings they had vanished, there was only poverty. It was a time like today in that few had savings that survived the crash. Don’t be deluded by the FDIC guarantee of your bank account. In a crisis, there will be all kinds of casualties. Our market today is teetering on the edge, especially with real estate heading south in a big way. One lender in Florida is ceasing ANY lending on condominiums !

So what is to happen if this spreads ? Well, only cash buyers would be able to qualify. And in a crash scenario, very few would even have any cash. Just imagine if you were one of the few who had the cash to buy such a condominium for 1/10 of its former price. Would you buy it knowing full well that you may not be able to rent it ? This is why I wrote long ago that in some times and in some places, real estate will be worth less than nothing. Let that sink in. An empty rental but with taxes and maintenance due every month.

In the past, it was a disgrace to have a mortgage against your property. Today however, people are actually proud that they can qualify for a loan. The world has been turned upside down. It will only be righted by a destruction of the system and the general population learning the hard way that debt is financial slavery.

Actually, if the economy tanks, we will have to change our thinking in a BIG way. A car that was worth $15,000 BC (before crash) would depend on its use. If it were a sports car, it may be worth less than a truck or high mile per gallon car. Right now people are fixing up their old Volkswagen Rabbits and Jettas, especially the diesel models. Why ? They get 50-55 MPG. I haven’t seen any for sale lately and my customers have been wanting transmissions for the late 70s to the mid 80s. I was even surprised at the interest in these early cars. I had expected mostly sales in the transmissions of the later models, 1990 to 2000.

Later SUVs get better MPG than earlier ones but they are more complicated and expensive to repair.

There are several levels to which our economy can descend. And each of us is unique to our situation; that being our finances, job, location, family, etc. Therefore, there are no pat answers but only examples and guidelines to show the way.

How we get off the financial merry go round and back on the terra firma of sound money management will determine how well we are able to deal with a changed world. I think anyone reading this agrees that we are facing difficult times. And the real estate bubble may well be the one that brings the system to its Waterloo (or at least to the loo).

From what I see all around me, most people are hanging by the thread of their next paycheck. As we reach the adjustable mortgage refinance peak in the next few months, we need to be saving and preparing as much as possible. Because a few months after the peak, people will be losing their homes and having to move. Where ? I really don’t know. Maybe they will be moving back with their parents. Maybe they will be doubling up in friends’ houses and sharing the bills. Maybe renting. Or moving into a motor home. Some will become homeless and have to live on the streets. Right now in my area, there are many houses for rent but no takers. The owners are trying to rent to pay for at least some of the mortgage but they are having a hard go. Supply and demand again. I suspect if this continues for long the “owners” will have to turn the keys over to the bank. We are witnessing a slow motion train wreck.

Did you expect the mainstream media to tell you what is coming and just how bad things really are ? Do you expect them to tell you who is responsible for this ?

Here is an article that just came out :

FORGET PEAK OIL, PEAK NET
WORTH IS THE REAL DANGER

By Brady Willett & Todd Alway

http://www.financialsense.com/editor...2007/0821.html

See, net worth is an accounting illusion founded on the quicksand of debt and leverage. Someone considered to be a millionaire today may be a penniless vagrant in the future. It is crucial to understand what will carry value into the future. Words like margin and leverage may sound all cutesy and popular but make no mistake; they are dangerous debt just as much as a no down house mortgage.

As Ponce says, “If you don’t hold it, you don’t own it”. I would add that if you owe against it, you also don’t really own it. No debt, no debt collectors calling. Learn to live below your means. I wish I could take my own advice sometimes. I understand that we all have to live in our own situations and it isn’t fair to criticize others until we are in their shoes. I know what I would like to be doing but sometimes I have to go through other drudgery before I can see my way clear. Long term thinking and planning is made more difficult in a world such as we have today.

Pinnacle, to answer your wondering if people are ready to let go of their items at cheap prices, I would have to say that it is not yet the time. The knife is falling and now is a time for watching and waiting. If I wanted a nice telescope that would sell for $2,000 used now, I would wait until the economy was flat on its back and pick it up for $100 to $200. But even then my priorities would change and I would be focused (no pun intended) on stability for my family. See how little interest there may be for luxuries and toys in a crashed economy ?

A crash means that most everyone will be living on a day to day basis. Possessions will become a burden. Look at all the crap we have in our garages and attics and storage lockers. Crazy, huh ? A lot of things that were considered having value will be thrown on the scrap pile. I lived in Erie Pennsylvania in the early 70s and remember people telling me that they had broken up antique furniture and heated their houses with it.

Ponce also said that he doesn’t chase after things but lets them find him. As best I understand, Ponce is moving along at a pace that pleases him. And one of the benefits of having wisely set up one’s life is the ability to not be in a hurry to do anything. I like that.

Best wishes,

Agnut

P.S. I don’t mean for us all to “bar the door, Katy” but rather to be cautiously aware of what future calamity can wreak on our plans. Some thought should be given to one’s form of transportation and its value as opposed to its costs. While the knife is falling, it may be a good time for preparations.

agnut: great post...alot to chew on!

Hi bottom feeder. I have rarely found sterling silver at garage sales. Most is silver plate. Over the years I bought sterling on Ebay; this way the cost averaging was controlled and I could buy on the dips IF the auctions were ending before prices rose again.

There is a book by Harry Rinker that gives a lot of the American silverware and definitions. I don’t know the title but you can enter the author on ABEbooks.com. By the way, this website is a great place to find books both new and used at great prices. There are several other books on sterling silver but I am not that into the antique markings. Most of my stuff is less than 100 years old and simply has the “sterling” word.

Ponce told me of a $10.00 gram scale at Harbor Freight. It is portable and when I get a chance I will pick one or two up. I buy a lot of supplies there and some tools. Especially great prices when the half price sales are on (which is most of the time).

The Bellevue area you mention is typical of rich areas; they often throw away some great deals. And their estate sales run by family are a goldmine. I know some of the rich areas around me and will drive a distance to attend them. Right now I’m busy and am saving my extra cash while waiting for the liquidity crunch to take hold. Prices in a few months should be better than now. It takes time for desperation to sink in and therefore items to drop to realistic prices.

I know it is hard but it is best if the items we don’t personally need are sold as soon as possible. Compounding your profits is the name of the game and if you hold some items for the long term you are holding back the power of compounding.

It is only important that you know the salable value of an item and its demand. Cold and detached like a shark in search of a meal. Personal interest factors enter in only if you want it for yourself.

I too have a lot of stuff and until I have a garage sale it will remain in back corners. Some I can use and some I got for free so there is hardly any investment.

Best wishes,

Agnut

Free stuff --- saw this posted on a different forum and figured some here might like the offer. They only had the Flashlight and sleeping bag left when I called. Its all computerized, you dont have to talk to anyone.

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Hi Haystackneedle and Pinnacle. Diesel VW thoughts ? This is a huge subject as it encompasses just about all personal transportation.

First, we should think about our travel needs both now and what we anticipate in the future.

Second, we should think of personal safety and weigh it against the benefits of a higher mileage car.

Third, what about the reliability of a diesel VW ? And the maintenance costs ?

Fourth, why diesel rather than gasoline power ?

Fifth, what about getting value for our investment ?

******

So first, do you travel 2,000 miles per year or 20,000 ? Do you expect to be driving as much in the future ? If you are only driving 2K miles per year or anticipating this in the future, the savings of a higher MPG car would take longer to recoup your investment. Suppose you had a car that got 20 MPG; that would require 100 gallons. That is a yearly cost of $300 for fuel. However if gas at $3 now were to rise to $8, the $5 increase times 100 gallons would cost you $800 per year. But say you bought a 50 MPG car now and when gas prices rose to $8, you would be using 40 gallons of fuel times $8 per gallon for a total fuel cost of $320 per year. A savings of $480 per year. And say you sold your old clunker for $2K and put $4K into a 50 MPG car, that would take about 4 years to break even.

However, if you are driving 20K miles per year, the savings would be significant. At ten times the above example, the savings would be $4,800 per year ! And if we are in a bad economy then, this potential savings could make the difference between continuance and living in your car.

What could be done to further increase your fuel costs even if you had purchased a 50 MPG car ? Maybe ride sharing ? Packing 3 commuters in your 50 MPG car, effectively getting 200 MPG ? Think about that one for a minute. That’s right, you would be getting effectively 200 MILES PER GALLON ! It doesn’t matter what the other three drivers who are ride sharing with you own. One could even have a 8 MPG behemoth. That is his problem since he is putting the fuel in his car and not you. His personal MPG would be 32 while yours would be 200 MPG. As I said, something to think about. Will we have a great increase in ride sharing in the future ? Nothing is certain but IF there are jobs AND IF people have to commute, there should be greater demand.

As I have said, discretionary income is vanishing and therefore those who want to continue will have to change their spending habits. I have laid out my case for what could be done and it is up to all of us to consider our individual situation and ACT on what yields the most savings.

I have considered opening a website called Rideshare USA to capture this opportunity but don’t have the time. I still think it is a moneymaker and a valuable service to members but would take someone well versed in internet websites and who would be willing to babysit the website daily. Imagine a bulletin board with rides offered and rides needed. Not just commuting daily but for long distance trips as well. Maybe even a section where goods could be transported. Also with a lot of car talk and advice. Remember, a car has traditionally been the second biggest expense in the average budget. So this looms large in the total picture of how a family is to continue without going under. Well, going under even deeper than they already are. Poor schlubs; they don’t know what they are in for as we ain’t seen nothing’ yet.

Will your job in the future still require you to commute ? Things change through time and these decisions we make now will have profound consequences in the future. I don’t mean to seem trite (or Captain Obvious) but if we were to change our form of transportation now, could we lose money in any significant way in the future ?

In the future we could (could ? HaHa) have higher fuel prices as well as limited availability. I have seen both in the past and they have different consequences. High fuel prices didn’t seem to affect drivers’ miles use in the past; they just paid more and kept on driving as before. However with discretionary income being squashed like a bug on a windshield, I expect that in the future, people will HAVE to consider high fuel prices as a potential for saving money. Additionally, limited availability in the past had a significant effect on miles driven. Remember odd-even days for filling the tank of your tank ? And I expect it to be more so in the future. No more Sunday joy rides.


Second, regarding a VW diesel car, it’s pretty lightweight and would lose in a run in with an SUV or Chevy truck. A low speed accident may not be as bad as a higher speed accident. A car like the VW diesel would collapse like an accordion but only to a point. Even a collapsed accordion runs out of more area to collapse. And then guess what ? YOU become the bug on someone’s windshield. Safety versus higher MPG.

Many years ago I was involved in a near head-on collision. I was driving a Porsche 356 coupe and the other driver was in a Lincoln Continental. He was coming off the freeway on my side of the road and I saw him coming at me. I swerved to the right as far as time allowed but he caught me forward of my driver’s door. I remember that I was going backward before we stopped. Time was slowed down to micro seconds; at least that is the way it felt. His car ripped the door away and it was hanging by a shred. His heavy Lincoln probably outweighed my Porsche three to one. The only reason that this wasn’t a headlight to headlight accident was that I swerved, thus exposing my driver’s side. Both cars were totaled but neither of us were injured. Had we been going 60 miles per hour instead of about 25, I probably wouldn’t be here messing with your mind today.

So what is the point here ? Before considering any radical changes all options must be thoroughly considered. A VW diesel may not be as suitable for you as say, a Mercedes 240 diesel which gets about 35 MPG. There are other options and I invite any readers to post their input. Many years ago I was scrounging around in a junkyard (they like to be called an “automotive recycler”. Yeah, right ! Clean up the guard dog poop and take a bath once a week and I will reconsider) and there was a Mercedes 240D that had been hit in the driver’s side, otherwise known as T boned. The other car had hit at 60 miles per hour and the collision had killed the driver in the Mercedes. At that speed it doesn’t matter much what you are driving if your number is up. I was at the Frankfort auto show in 1974 and the Mercedes exhibit was proudly displaying how their engine and transmission were designed to go under the car in a head on collision and not into the occupants’ laps.

Please, no hybrid cars as they are expensive ($30 large; would buy a lot of precious metals instead) as well as have problems of their own. Also, electric cars are expensive and complex to get to the point where you have one ready to go. Limited in getting refueled too. Still, some of you might want to investigate further. RiverRat knows an outfit that converts gas cars to electric.

Third, reliability. There are many of these VW diesels still running around. Some are even from the late 1970s. People keep these cars and love them. The engines will last a couple of hundred thousand miles or more if taken care of. The manual transmission also will last a long time but eventually the small pinion bearing wears out and the ring gear rivets may become loose and take out the whole transmission. I prefer the manual trans for its better mileage and simplicity. An automatic can cost twice as much to rebuild.

I recommend that owners learn to change their own oil and filters. And to learn to change the timing belt which is recommended every 60K miles. It will probably last a lot longer but why take the chance of bending the valves ? A VW Bentley repair manual is a must and is the most complete for the care and feeding of a VW diesel. At least have a competent mechanic in the wings.

When I am talking about is the VW diesel Rabbit, Golf and Jetta. Not the VW bus diesel that is underpowered and doesn’t get the high mileage. Or the VW Dasher diesel. Ugh ! Also the late Beetle diesel is expensive to buy relative to the earlier Rabbit, Golf and Jetta. Also this late beetle’s manual transmission is expensive to repair and I imagine the engine is also expensive.

My objective is to share what is most simple and gets you the best bang for your buck. A good running diesel Rabbit (from 1980 to 1983) will cost from $1,500 to $2,000.

A good running Jetta or Golf diesel (from 1985 to 1992) will cost from $$1,800 to $2,800. Some have turbos and this may be a negative since they aren’t cheap to replace. The prices will vary greatly and these are only a guideline.

Another option is to find a non running VW diesel and have the driveline rebuilt. Although it would initially cost more, you would know what you have rather than a diesel with 200K miles on it and not know how much longer it would last. A rebuilt engine would cost about $2K, maybe a bit more these days. And a rebuilt transmission would cost about $600 exchange. That is what I charge but it is a few hundred dollars more elsewhere. And that is not including installation. I have found it best to bite the bullet and have the whole driveline built at once. Saves later doubts and is cheaper to do at the same time.

It may be possible to find a low mileage VW diesel but they are rare. Someone may be selling one that has recently been rebuilt with all the receipts. In other words, check out the car you are buying thoroughly. It includes knowing the history of the car and how it was maintained.

Just don’t get in too deeply with a used VW diesel only to discover that it is on its last legs and has to be rebuilt. You would have bought a pig with a pretty lipstick job. Then it would have been better to have bought a non runner for a few hundred bucks and gone through the driveline at the beginning.

It is crucial that you don’t buy a VW diesel with rusted shock towers or rusted suspension body mounts. These are not repairable and means that the car is only suitable for parts. Ask a VW mechanic for details.

It may sound like a lot of potential problems but is worth the effort if you avoid the pitfalls.

My other favorite is the 240D Diesel Mercedes with the 4 speed manual transmission. You could get the automatic transmission but they make the 240D very slow in accelerating and get less MPG. The years 1980 to 1984 are the ones I would be looking for. I have seen them for sale in the $2,000 to $3,500 price range. They don’t get as much MPG, about 35 MPG, as the VW diesels but are safer and more comfortable. Rebuilding the engine and transmission would cost a bit more, maybe another $1K or so than the VW diesel, but it is a heckuva good car. I have owned several Mercedes cars and they are built like a tank. In fact I have a standing offer to a neighbor that if she sells her Mercedes 240D, she will let me know. If I had the time now I would be looking for a non runner to restore since I can rebuild the engine and transmission myself. They are pretty straightforward. Problem is, these 240D Mercedes are hard to find and non runners even harder to find. People don’t want to sell them. Maybe that is a sign that they should be pursued with more effort.

After writing this post and thinking about it, I may be now actively looking for a 240D for a family car. How many miles do I drive per year anyway ? Probably about 2,000. So a Mercedes 240D at 35 MPG would use 57 gallons in 2K miles and cost $171 in fuel at $3 per gallon. But the diesel VW would cost $120 in fuel. Saving $51 per year isn’t wise when weighing safety and comfort against the increased savings. See ? We all have to sit down and write our needs and how they will be affected by options. In my case, even if fuel were to rise to $8 per gallon, the extra cost of a 240D against a VW diesel would be $85 ($5 increase times 17 gallons more fuel used). Still not much. Sometimes I surprise myself and have to adapt to the fresh realities.

I have owned several Mercedes and I can tell you that they are overbuilt. By this I mean that they build an engine, and the whole car for that matter, heavier and thus stronger than most other manufacturers. Not high horsepower but long lasting. You may have seen some Mercedes cars on TV that had over a million miles on them and were still running. And who knows, I may even find a good running 240D that I don’t have to rebuild since I don’t drive much. At 2K miles driven per year, I could drive that sucker for 10 years if it had another 20K miles of life left.

Fourth, why diesel rather than gas ? Diesel gets greater MPG unless you are driving one of those rare efficient lightweight gas cars. And try storing gas for four years; it will turn to varnish even with fuel stabilizers. And is a fire hazard. Diesel can be stored more safely and for a lot longer time. I once stored some diesel without stabilizers or additives for four years in a garage and used it in a VW Rabbit diesel. It lost a little octane and smoked a little on hills so I ended up mixing it 50-50 with fresh diesel and had no problems.

And fifth, getting value for your investment, I want you all to know that I am also thinking about options and changing as it makes sense. I recently sold my two Jaguar XJ6 cars. Too high maintenance, too low MPG and they attract too much attention, something I don’t want for the future. By the way, you are probably thinking about now that I am contradictory in wanting a Mercedes. Too much attention ? Not if it has the three point star on the hood missing and a few dents and is dirty. I’m not into impressing strangers but getting what I want, economy and comfort. The worse the economy gets, the more dents the 240D will suffer. HaHa. See, camouflage comes in many forms. Maybe a fender primered would be going too far but that all depends on how far TPTB drive things down. Don’t make me trash my 240D; you will be sorry if you have to look at it in broad daylight. I’m a little crazy and love to overreact in my own way. “Unintended Consequences” in this moving from form to function future. By the way, read the book by John Ross. It is worth the fiat spent.

Ever wonder how these old folks die and leave a fortune behind ? We read about them from time to time and they don’t have a high paying job or inherit a fortune. But they don’t spend money and through a lifetime they accumulate. They probably watch the world gone crazy trying to impress strangers who are really trying to impress themselves. We have a sick society and those who fall for the consumerist insanity are trying to fill a hole in themselves that cannot ever be satisfied. I have found great satisfaction in pinching my dollars for all I can get. Now that is a mindset that will get you through good as well as bad times.

Well, enough is enough. I invite your input and criticisms about this transportation post. I know there are better ideas out there because there are better minds out there. Most of you probably. So have at it.

Best wishes,

Agnut

There are as many solutions to a problem as there are lines radiating from a point.
Thoreau
( I think he means to be open minded and keep looking for better answers. The only thing infinite is our stupidity, as Einstein once said.) A little playing loose with quotes here, but lucky for me the authors are both dead.