If you’ve been reading this blog for a while, then you remember the disaster of a time that I had getting my Honda Civic fixed a few years ago. That experience has me sworn off of buying a Honda ever again. It’s just not going to happen. So when the time came around that I needed to buy a brand new car, I knew that I wasn’t going to go to a Honda dealership that screwed me over a few years earlier. Actually, I wound up going to the Ford dealership that is literally across the street from that Honda dealership (so take that, idiots at Honda!).

You can read the link above to learn more about the financial aspect of me buying a new car. This entry is being written to describe the story of why I had to buy the new car in the first place. And it all started with paying Sears Auto Center way too much to do… nothing.

A whole group of technicians inspecting my old Honda Civic

The picture above was taken sometime in early February at the Sears Auto Center in Ocean Township, New Jersey. As you’ll notice, the technicians are all standing around trying to figure out what the problem is with the Civic. This picture was taken on one of the third or fourth visits I made to that place – in about as many days. As I recall, the Civic was driving very shaky for a few weeks, but that wasn’t something that I didn’t expect for a car that was entering its twelfth year of service. Look, these cars start to make funny noises after a while – it happens!

After getting totally dicked over by the local Honda dealership (again, see the link above), I decided to go to the local Sears Auto Center to see if they could help with the weird feeling that I was getting from the Civic. They figured out that there was some belt that could use replacing, but that it wasn’t really the primary problem with the weakness that I was feeling from the engine. I asked them to go ahead and replace the belt and then we’d see if it helped with the general lack of “umph!” that I was feeling from the car. So… the guys kept the car for a night and replaced the belt. I got the car back the next day and went about my merry way.

Until the car stopped right in the middle of when I was driving it. On the same day I picked it back up from the shop.

Now don’t get me wrong – the car didn’t fishtail out of control on the highway and leave me stuck fending for my life against on-coming traffic or anything like that at all. Nope. Instead, I was driving the car on one of the major highways in my area (I believe it was US Highway 195 heading towards Trenton) and the car just stopped delivering power to the powertrain. The way I described it to the folks at the repair shop when I brought the car back to them was that I would be driving along at 60, 70, or 80 miles per hour and then I’d go to hit the gas again and nothing would happen. The car would just begin gliding. My way of combating that glide was to pop the car into neutral and work my way over to the shoulder and ultimately the median. The odd thing, though, was that once I allowed the car five or six minutes of “off” time (complete with me cursing and being furious inside the car), it would start back up and the energy would go back to the powertrain and I could travel for a short while again.

Bizarre.

And that picture above is of the mechanics and technicians checking the engine to see what the problem could possibly be. Suffice to say, they couldn’t figure anything out and told me to go about my business with the car. The guy who manages that shop was a nice guy and said that I should bring the car back in the event that it randomly stopped again. So I thanked him and went about my way.

A day later I was getting the car towed from my home back to the Sears Auto Center. That’s right – the car stalled out again. And, without going into the boring details, the guys at Sears Auto Center couldn’t figure out what the problem was again. I managed to drive the car off of the lot and back to my place with no problems. Maybe, I thought, the problem was over and I could actually drive this car to work without any problems. The next day came and I began driving the car north on Route 18 towards my new office and – you guessed it – it randomly stopped working again. After pulling off onto the median and getting the car to start again, I drove it to one of my coworkers’ houses that was on the way to my office and he led me to a local garage where he took his cars to get fixed when they were broken down.

My coworker had been working with that mechanic for quite some time and had a great deal of faith in him. I explained to the mechanic what the problem was and he asked me to leave the car with him so he could inspect what was going on. In the mean time, my coworker took me to the local Enterprise Rent-a-Car and I rented a gigantic SUV until my Civic was back in full working order.

And here’s the most frustrating part of leaving the car with the mechanic – two days went by and he didn’t find any problems with the car. Like the guys at Sears, the mechanic said that everything worked well on the inside of the car and that he even test drove it around town and didn’t have any problems. At this point, I got the impression that these car people were beginning to think that I was nuts or something. Anyway, after dropping the rental car back at the Enterprise on a Friday morning, I was dropped off at the mechanic to pick up my car and begin the drive home.

Do you want to guess what happened next?

If you guessed that I began driving south on Route 18 and the car randomly stopped again, then you win! Correct! As I was sitting on the median of Route 18 (again) thinking about how totally f’ing inept these mechanics must be to not be able to figure out the problem, I began to realize that I needed a new car. Remarkably, the Civic was always uncomfortable, always too small for me, and I was never really happy driving the car. What the Civic was, though, was a free car with great gas mileage that fit into my financial preference of aggressive student loan repayments and my professional circumstances of having to drive hundreds of miles each week for work. As I’ve been engaged in this aggressive student loan repayment program, the Civic was the best option for me.

These were some of the many thoughts swimming through my head as I sat on the median and came to the realization that my next stop would have to be at a car dealership to start shopping.

The car dealership was my next stop. While I was driving the car home (the thing miraculously started again after five minutes of sitting on the median), I decided to stop at the local Ford dealership. I’m not going to get into the details of the 5+ hour negotiation that led me to purchase my new 2012 Ford Escape Limited Edition (the first brand new car that I ever purchased) or the fact that I spent over $1,000 getting the Civic “fixed” that week, but at least now you know the story of why I had to get a new car. In my world, when the car you’re driving breaks down six out of seven days in a week, you need to get a new vehicle. I couldn’t imagine driving on the Garden State Parkway for work and being over the Driscoll Bridge and having the car lose its “umph” like that – talk about a major, significant accident waiting to happen.

And that’s the story of why I needed to buy a new car.

That’s it. That’s the secret. Budgeting works.

Through the magic of budgeting you can achieve some pretty amazing financial goals… like paying off about $90 thousand of student loans over an intense, focused three year period. However, we all know that life is a fluid adventure and sometimes the tides change. And when the tides change, sometimes financial goals are forced to change along with them. And thus we have the meat of today’s entry…

I bought a brand new car yesterday!

Actually, I didn’t buy a brand new “car” yesterday; I bought a brand new SUV. It was a 2012 Ford Escape Limited Edition, to be exact. And although the picture above isn’t exactly the Escape that I bought, it is the closest thing that I can find online to the model and color of the Escape that I purchased. In fact, my new SUV looks very similar to the one in that picture.

And yes, there is a larger, longer story about why I needed to buy a new car. I won’t go into the details of that decision right now, but I definitely will tell you the story in an upcoming entry on the blog… so stay tuned!

Purchasing this Escape a pretty big event for me for three reasons. First, it’s the first brand new car that I’ve ever purchased. Second, it dramatically alters my strict budget. And third, there is a new level of certainty in what used to be a very expensive part of my financial life. Before I woke up this morning, I woke up every other morning of the 13+ years that I’ve been driving and had a bit of an apprehension about the car I was driving. Sure, that apprehension was much less pronounced when I lived at home with my parents and right after I purchased my 1999 Chevrolet Blazer, but for the majority of the time that I’ve been driving I’ve been driving a beat up old car that just made it between trips to the service station.

If you’ve never been in that type of position with your primary method of transportation, then take it from me – it sucks. There’s nothing that makes a driver of a beat up car’s stomach sink faster than driving along and hearing a weird noise out of nowhere. Whenever that happened to me, I didn’t get frustrated with the machine (because that’s just crazy), but I did get annoyed because I saw money just flying out the proverbial window.

But along with my new car, I made sure to get a 5 year/100,000 mile extended warranty that covers pretty much anything that could go wrong in the car. It also provides an incredible amount of “other” stuff that comes in handy like free towing, free roadside assistance, free gas fill-ups if you run out of gas, free rental cars when the Escape is being worked on, and so on and so on. I know most people say to stay away from these types of warranties, but I’ve had my cars breakdown too many times and been left between a rock and a hard place that I knew purchasing this extended coverage was the right thing to do.

Oh, and last week I became a member of AAA at the “Plus” membership level. I think I’m about as covered as I can be!

Like the picture above, this one is not a direct image of the inside of my Escape. Instead, it’s a standard picture of the interior of an Escape Limited Edition that I found online. This is pretty much what the inside of my SUV looks like – including the nice touchscreen display in the center. There are a lot of buttons and functions on that touchscreen – I have to sit down to figure them all out. One thing that I know for sure is that there are a lot more functions available with this Escape than are available with the Ford Fusion. And that’s not a knock on the Fusion, but when I sat down in both machines – I knew that I wanted the Escape.

And that was an odd realization, too. You see, when I was negotiating to buy a new car yesterday, I was negotiating with the salesman to buy a brand new Fusion. It wasn’t quite the color that I wanted and it wasn’t quite the model that I wanted, but the price was reasonable (just north of $20 thousand). However, as I sat there waiting for the salesman to come back from the owner of the dealership I realized that I was negotiating for the wrong car! So when the salesman came back I told him to forget about the Fusion and get me a price for the Escape.

After owning the car for about 24 hours, I’m glad I made that game time decision. It was absolutely the right thing to do.

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The reason that I wrote this entry, though, was to let my readers know that this purchase alters my student loan repayment plans. By sticking to an aggressive repayment plan, I hoped to have my student loans fully repaid by December 2012. However, now that I have this machine to pay for, that timetable changes. I owe a little bit less on the truck than I still owe on my student loans so it is an easier debt for me to get my mind around and conquer. Once I receive the final financing papers, set up my online payment account through the finance company, and make my first payment I’ll have a better idea of how much I have left to repay on the car. Suffice to say, it’ll be slightly over $25 thousand for sure.

I have no intention of stopping my student loan repayments (which I could do because of how much I’ve overpaid to date). Instead, I intend to readjust my budget and pay off both the student loan and the car in a reasonable, quick, efficient fashion. A good budget is able to change with the tide.

Again, I won’t go into the gory details of how I was left with no choice but to buy a new car. That brief story will be released on the blog in an upcoming entry. However, I’m glad that I purchased the car that I wanted and didn’t just “settle” for any car on the lot.

To begin, at the beginning of January I began teaching for a well-known online/distance learning-based university. After doing this for about a month I have to admit that I’m not impressed. I thought the online teaching setting would give instructors a great deal of resources to utilize for their students to learn the course content – I was wrong. Or at least I was wrong with respect to the place where I’m teaching. I was handed a syllabus and told that I had to follow it. Then I was told that I had to utilize the online-based discussion forums and online submission tools in order to receive assignments. That wouldn’t be so bad if they weren’t both filled with glitches that render their usage impossible. All in all, it makes the instructor (me) feel that I do not have much control over the class and its direction. That’s not a good feeling for an educator.

On top of it all, my pay rate (which is the least of my concerns with this arrangement) is a couple of hundred dollars per student enrolled in the course with an enrollment cap of 15. Not a bad pay rate really except that less than 5 students are enrolled in the course. Whoopie.

Two weeks ago, though, I began teaching a brand new course that I designed. This course is being taught at the local college and it has been good so far. I do have some concerns about the real-world preparedness level of the students in that at least half of the class chooses to not hand in assignments on time. I also have some concerns about the students comprehending the information that I give them in class. For example, one assignment asked students to identify a specific type of organization. We talked about these organizations for over an hour in class and two short reading assignments went in depth about the typical characteristics of these organizations. Again, more than half of the class chose groups that were not even remotely close to what the ones they were supposed to identify.

That’s somewhat troubling for the future workforce…

Hey – Lost is back on ABC tonight, huh? That’s pretty exciting. I’m looking forward to the final season of this show if only because I have to get it out of my mind! Does anyone think that all of the Lost fans out there will be completely satisfied with the “answers” that are given this season? I tend to think that the Lost writers have set themselves up for a catastrophic failure if they don’t answer every single question that is out there about the show. I guess that judgment should be reserved until after the season really gets into the swing of things. All I know is that a lot of people have invested a lot of time into watching that show and they better not blow it.

I will hopefully have some more encouraging news about my student loans coming up in the next few days. You can guess what that might be…

If you keep an eye on the market, then I’m sure that you’ve seen how Sirius XM is blowing up all over the place! For those of us that purchased this stock at a dime or two per share, we’re doing pretty good with our investment at this point. Last I checked, share prices were at 0.94. Not bad making 1000% return on an investment, huh?

And just think – if you listened to almost every big internet stock market website out there you would have sold this stock when it was down to a nickel per share. Talk about being shortsighted! That’s why I do my own research on the stocks that I purchase – the internet stock market sites have an agenda and I’m not interested in their garbage.

Oh, and I’ve been doing pretty well with Ford (which the internet stock market sites said I should have sold a year ago) and Barnes & Nobles (same story). The lesson learned here is to do your own research and trust your gut!

Eddie has been doing a fine job with running TBLWrestling.com. Hits are up an incredible percentage and I’m proud of his efforts. Good work, Eddie! I’ve been running TNAStars.com now for about a month and I’m pleased that it has already achieved some level of success. Both of these sites are hobby sites for Eddie and I and we only spend a few minutes each day putting up some updates. With such reduced involvement, I’m glad to know that the people out there like what we’re doing!

I guess that’s about it. See you tomorrow!

Sirius XM closed around 68 cents today. So…for those of us who bought it at 11 cents, that’s not a bad gain, huh?

One of my roommates and I are somewhat “new” to the investing game and while other people are talking about how bad they are losing money, we’re both up over 100% in our portfolios. In fact, as of today my stock portfolio is up over 150%. I think the reason why we’re up so much is – first and foremost – that we bought when the market was low and everyone thought that the world was going to end. When people are dropping the value of stocks based on fear and paranoia, you have to jump in and buy.

However, I think that one of the reasons why we’re both doing so well is that we’re purchasing stocks with which whose products we are familiar with on a personal level. For example, I invest in Sirius XM because I know that they have a quality product (unless you’re one of these people who have the service for Howard Stern alone, then you might be annoyed at the 10 weeks of vacation that he takes every year). But when it comes to commercial-free music and something to listen to during the work day, no one can deny that Sirius XM is a great product.

Anyway, the reason for writing this post is to tell the everyday people out there that they can invest in the stock market and find success.

Ford Motor (F) said Monday it will charge a base price of $19,270 for its revamped Fusion midsize car and $27,270 for a hybrid gas-electric version.

The 2010 Fusion is due in showrooms this month. The company is hoping it will take market share from the Toyota Camry, which is the top-selling car in the U.S.

Toyota Motor says on its website the Camry has a base sticker of $19,145. The hybrid costs $26,150.

I think it would be great if Ford could compete with Toyota since Ford is the only American car brand that actually has any life left in it. Both GM and Chrysler are essentially worthless at this point and while the masses cry out for better efficiency at a better cost, these two companies aren’t producing. Ford, at least, is trying to address the concerns of the public by giving them what they’ve been asking for – a decently priced hybrid that doesn’t just tout the fact that it is a “green” car, but instead actually delivers value for the money spent on the purchase!

So I’m hoping for two things. First, that the move towards hybrid vehicles continues even though we’re not paying as much for gas these days. And second, that Ford does well with its Fusion Hybrid.

I’m not sure if this is necessary, but I feel compelled to state that I own Ford in my stock portfolio. Just offering some full disclosure.

This indicates that if the Big Three go bust it is their bosses, insular and stuck in their ways, who should be held most responsible. Put simply, for too long they had built bad cars, which were inefficient, unreliable and unattractive and Americans did not want to buy them.

The man makes a point. Everyone knows that foreign cars are much more fuel efficient, definitely more reliable, and usually more stylish than their American counterparts. Let’s put it this way, Ford didn’t earn the nickname of “Found On Road Dead” out of nowhere.

A few years ago (2002) I purchased a 1999 Chevy Blazer. The price was around $15,000 – give or take a few hundred bucks. First of all, the price was way too high for a three year old automobile. Second, since I purchased this machine, I’ve probably put an additional $15,000 into it in repairs. And of those repairs, about half of that expense was to pay for labor!

But the thing is, I’m one of many drivers who have had a financially negative experience with the American automakers. On the flip side, though, I’ve been borrowing my Mother’s spare 2000 Honda Civic for a few months now and not only does it get 31 – 33 miles to the gallon where the Blazer got 18 miles to the gallon, but I’ve not had one problem with it. I drive a lot for my job and since I borrowed the Civic I’ve put about 5,000 miles on it – no problems. With the Blazer, though, traveling that much almost certainly meant that I needed to stop at the shop one weekend for minor repairs.

American made cars are poor quality, energy inefficient, and cost way too much to manufacture. Unless these core problems change, they’ll never reclaim their former dominance in the market.