Canadian Personal Finance Blog

Archive for the ‘Shopping’ Category

Quicken is a useful tool for me, to track my family’s spending habits, but last week was an interesting week for me.

I started working full time in 1986, so some might say more than a generation ago (depending on how you count), and when I was first hired, I was paid a reasonable wage (not an exorbitant one, but reasonable). My wife and I lived on this income in a reasonable apartment, and we lived a frugal but reasonable life.

Flashback to last week, where in two purchases I eclipsed my yearly gross income for 1988 (2 years after I had started working full time). What did I buy? A house? A yacht? Nope, our orgy of spending was on:

• A used Toyota Sienna (stop snickering, it doesn’t have the accelerator pedal issue (at least not yet)).
• A knee brace for my daughter who has damaged both her MCL and ACL

That’s it, yes a fairly big expenditure, but remember this is more than I made gross (before the CRA got a hold of a lot of my income). The knee brace is actually about the price of 3 months rent from back then, but it is a necessary purchase (and I will be reimbursed (I hope) in some way from my health plan).

Other interesting factoids from these purchases:

• The van cost about 43% less than our last van which we purchased new (and paid off, with 0% financing over 5 l-o-n-g years).
• We were offered “financing” from Toyota of 6.5% annually, I pointed out that my bank would give me a rate of nearly half that, they didn’t seem to care.
• The purchase was not financed, and if I assume a 4.0% financing rate I have saved in the neighbourhood of about $4000 in interest charges (assuming a pay back over 4 years or so).
• The knee brace comes in many interesting colours and styles (colour styles), including: Snakeskin, Butterflies and Star Spangled Banner. My daughter chose metallic black (I think Black is the new Black this year).
• Didn’t get any car matts from Toyota, but given the recall issues about the placement of their car matts, maybe it’s a good thing I bought some replacement matts at Canadian Tire
• Believe we got a full tank of gas with the Van (given gas prices that’s about $100 added in)
• Got a reasonable trade in for the my GM Montana (that had a distinct odour of Anti-Freeze), so no complaints there
• Toyota spelled backwards is Atoyot, surprised there isn’t a car called that now.
• Knee Braces should never be worn backwards, or your knee will end up bending like an Ostrich’s knee, which is bad.
• Certified cheques cost more to get from my bank, than a bank draft, so I saved $2.50 by getting a bank draft.
• What is undercoating for, and why does it cost so darn much?

Lots of interesting factoids (where factoid means things interesting to me, and most likely me alone).

For Christmas my in-laws gave me a GPS (not sure the exact reason, might be that they think I get lost a lot, or they think I need someone to tell me when I am going the wrong way (I guess they forgot I already had my wife to do that)). I haven’t had a lot of chances to use the GPS, as I mostly have been going to places which I had already been to before, but I have been trying it out just to see how the device actually works and how it deals with various issues, like when I decide to take different routes.

I enjoy having this technological marvel, but it got me thinking: I wish there was something like this for financial decisions and spending follies.

Just think of how great it would be to have something that would announce to you, “Because you went out to dinner and spent $135.67 you will now only be able to retire in 37 years 3 months and 2 days” or even better, “You have just spent $400 more than your budgeted amount for discretionary spending this month, and there are still 17 days left in this month“.

Wouldn’t that just be astoundingly cool?

In some ways Quicken is kind of like that, but it doesn’t have the instantaneous feedback that this kind of tool would need.

My guess is that  if you had a stern voice in this contraption (my GPS has a Female English accent, so it sounds a lot like my Mother), might it stop folks from impulse buying? Might it stop them from squandering money if they were afraid of how the device would react to it? Maybe, but just think how embarrassed they might be standing in line at a store and have a voice boom out, “You do not have enough money to buy that, put it back on the shelf!“?

If anyone does invent such a device, I have put in a patent claim on it already, so you will owe me royalties, or simply pay me a lump sum and you can use the idea .

After yesterday’s tale of Chutzpah I figured I’d show that I can show just as much temerity if I am pushed.

Over Christmas we purchased a new washer and dryer (a purchase we had been putting off but decided it needed to be done, as our washer treats our clothing the same as if you beat the clothes on a rock by the river). We saw that Home Depot was having a “Boxing Day” sale, and we actually walked down to Home Depot to purchase a washer and dryer. My wife had done her normal extensive investigation of the topic, so she knew what she wanted, so I let her have at it with the sales lady.

I wandered off and found that Home Depot did sell “liners” for my new green bin, and I looked at various other building supplies. I returned to find that my wife had settled on a model and price, which seemed reasonable and we then needed to decide when to have the new washer and dryer delivered.

Our previous configuration had a Natural Gas based clothes dryer, so to remove it and replace it with an electric dryer would mean a gas fitter would need to come and “cap” the supply line, so we pushed the delivery into mid-January which we were told was not a problem. We also “qualified” for the “don’t pay until next year (and then we gouge you with ASTRONOMICAL interest rates)” payment plan, so we signed up for all of this and left the store treading carefully (Ottawa had an Ice Storm on Boxing Day).

Fast forward to 3 days before the new washer/dryer was due to be delivered. By this time Home Depot had already put the purchase on my credit card (interesting, I never like paying for something I haven’t received yet), and the gas fitter had just come and capped our Natural gas line, leaving us with no clothes dryer, but for only 3 days (or so we thought).

That very afternoon my wife got a phone call from the manufacturer of the Washer/Dryer (LG) that our delivery was going to be delayed by over a month because there were no more Washer/Dryer models in North America of the type we purchased. Now that in itself is a type of chutzpah but at least they called, leaving my wife at a level of aggravation which if it was on a scale of 1 to 10 would be around HOLY CRAP! level.

I got on the phone to the manager of Home Depot to voice our displeasure about the fact that:

• We no longer had any ability to dry our clothes for more than a month (at least).
• When we “purchased” the washer/dryer it was not actually purchased, it was in fact simply us saying we’d like them and if they were in stock, we might get one when we wanted. No one went into the “warehouse” and marked a set “Property of Mr. & Mrs. C8j, deliver in January”, we simply put in an order which might be filled.
• The purchase had appeared on my credit card yet I was not going to have it for more than 2 months after I allegedly “purchased” the product.
• The manufacturer was the one who told us about this, and not Home Depot
• He had upset my wife and I got to enjoy her wrath, when in fact she was mad at him and his store

After assurances that the situation would be remedied, the Manager never called me back, but did call Mrs. C8j and offered her a “loaner” clothes dryer until our actual washer/dryer pair arrived, for free, so that we could continue to have clean clothes and such. Mrs. C8j was happier with that solution (although still secretly seething with hatred for Home Depot) and we now have this dryer in place and we are able to have clean clothes until our new washer and dryer appears.

Was this Chutzpah on my part to get a loaner dryer? Not really, but I do think it is truly chutzpah on the stores part not to ensure that they had stock enough to make their deliveries for the next month.

My guess would be someone looked in the inventory for the warehouse, saw there was a set left and sold them before they could be delivered to us, so someone else got a “great deal” and “fantastic service”, while I ended up with a loaner dryer and a wife with the disposition of a Wet Wolverine.

For a while, Mrs. C8j and I have been hunting for a new family vehicle. We have had many arguments discussions about what type of vehicle we wished to purchase. I think we will not need a van for much longer and she sort of agrees but thinks we still need one for the short term so we should get one, and after a great deal of consternation consultation I we agreed that a van would be the best way to go. I must admit that we did try a few SUKs SUVs and while they felt OK, they did feel a bit “truck-ish” for my liking.

We have been dealing with a smaller dealership who had in stock the van we were hoping to get (used) a Sienna from Toyota (please don’t treat this as me endorsing this model, or that I have received any compensation for this story). The salesman at the dealership seemed a nice personable chap, although maybe a bit slick for my liking, but we thought that might be where we wanted to make our deal.

We had decided before we got too far into this process, that we would purchase a used vehicle this time (we purchased new last time, but I decided a used vehicle was the way to go). We borrowed from the Ottawa Library the Lemon-Aid books and saw that in fact the Sienna from ‘07 on seemed to be a good choice. If we were going to buy a used car, I was going to have my mechanic who I trust in these situations, to have a look at whatever we might choose to buy (I simply do not trust dealerships that much).

I mentioned to the salesperson we were dealing with that we wanted to take whatever vehicle we were thinking of buying to my mechanic to have a look at it, and the sales guy kind of got twitchy (i.e. tried to dissuade us), but eventually relented, figuring that he might lose a sale if he didn’t agree (smart guy).

I then called my mechanic and said I would like him to have a look at a vehicle and he said he would, and he asked who I was thinking of buying from, and when I mentioned the name of the dealership my mechanic hesitated. After a short pause he said he had had some dealings with the dealership and gave me some advice about possible issues getting the van off the lot and to his garage. When my mechanic makes that kind of statement the hair on the back of my neck starts to raise up. I thanked my mechanic and said I’d call back when I had decided on a specific van.

Time passed and eventually we decided (after consulting CarFax on line) on a specific Sienna that our original salesman had on his lot. My wife called up to talk to our salesman, but he wasn’t around, so she spoke to the “Owner” of the dealership.

Now this is Chutzpah

My wife asked the question, “What do we need to do to take a van to our mechanic to have him inspect it before we buy the van?”.

After a short pause the Owner’s answer was classic chutzpah, “First you buy the van, and then take it to your mechanic and whatever he may find that needs fixing, we’ll fix.”. This is most definitely not what had been discussed previously (we had been told no worries, it should be fine, you can have the car inspected BEFORE you buy it).

Let’s analyze this amazing piece of chutzpah, you want me to give you a large amount of money, have the car licensed into my name, and then once I am owner of the vehicle and my mechanic finds something, I should trust you that you will fix these problems? I do realize that in Ontario a bunch of new rules are in place dealing with used vehicles, but I am also not naive enough to believe that they will somehow protect me in this situation.

I guess it all comes down to who(m) do I trust, a car dealership that I have never dealt with (that I have heard some odd stories about), or do I trust my mechanic, who has fixed my cars for 20 years? As you can guess, we did not call back this dealership.

We have since found a similar vehicle with a larger dealership, which may cost a bit more, but they are fine with us taking the van to my mechanic (if I leave a deposit, and my current vehicle) and will abide by whatever my mechanic says (and will find another van if my mechanic finds an issue with the van). The CarFax report on the van suggests there should not be a problem.

Financial Moral of the Story?

None really, just that I am a very untrusting person and that if you try to sell me things, it doesn’t take much to get me to go elsewhere, or completely walk away from the purchase.

Costco Coughs up $10

About 2 weeks ago my wife and I joined Costco as an experiment on whether we’d get the benefits claimed from a years subscription. So far things are ok, we have not gone out and bought 16 gross of toilet paper so we have kept our purchases to specific things that we know are much cheaper at Costco (or on sale).

Wednesday last week I received an invitation from Costco to join and to inspire me they said they’d give me a $10 cash card when I joined (I assume they got my name from a list of previous subscribers). This perturbed me since I had only just joined and now I wasn’t going to get $10, which I felt was due me. I decided to go to the courtesy desk at Costco and demand my money, since I had only just joined. To my surprise the answer was, “Yes sure that sounds like a good idea“, and the young lady handed me over the cash card with little or no fuss. I felt a little sheepish that I was worried I might not get any money.

Just goes to show, if you don’t ask, you will never know if you will ever get!

We spent the $10 on a good deal on Apple Juice, if you are curious about our wind fall profit.

The Voice of A Generation Silenced

Walter Cronkite

I was saddened on the weekend to hear of the passing of  Walter Cronkite. I grew up watching the CBS evening news with “Uncle Walter” every night, to me he was the face of News (even though I am a Canadian). In these days of 24 hour news and Blogs reporting all sorts of news (yes me included), I was saddened to hear of the silencing of a voice of integrity. I guess that’s no longer, “… the way it is…”.