Who Wants To Avoid Wasting Money On Oil Changes

Your car is an amazing collection of working parts. From the simple Model T to the computer controlled modern car, there have always been two enemies of engines. They are heat and friction.

As any car owner well knows, lubricant is the best tool for fighting the ravages of friction and heat. This lubricant is, of course, better known as motor oil and it performs a vital function that keeps your car on the road.

Motor oil can take an absolute beating. That being said, the modern car engine will give it one. From stop and start traffic to hot climates, you will have to change your oil sooner or later.

Everyone knows about changing out motor oil, right? What did you immediately think? It needs to be changed every three months? How about every 3,000 miles? If either of these came to mind, you are thinking of a marketing campaign, not the facts.

As with many things we know, the 3 and 3 rule is wrong. It is just marketing with no basis in fact. Every car performs differently and does different tasks. This means there is a different guideline for each of them.

The simple truth is there is no one standard mileage or time period that should be used for oil changes. A big Ford truck simple runs differently than a Honda Civic. The oil in the truck will need to be changed well before the oil in the Honda.

Okay, we need some idea of when to do the oil change. Luckily, the manufacturer has helped us out. Find your owners manual. In the oil section, the manufacturer will lay out the specifics for this vehicle. It will not be three months or 3,000 miles.

The manufacturer will actually specify a number of different things. The time frame and miles for a change are obvious bits of information. The manufacturer, however, will also designate a weight of oil and brand as well.

The weight of oil to be used is absolutely vital. Do not just throw anything in your engine. You can kill the engine and violate any warranty. Do not worry too much about the brand, however. You can use whatever you like in most cases.

If you can, try to go with synthetic oil for your car. They last much longer. A Mini Cooper, for instance, will go up to 17,000 miles between oil changes running on Castrol Synthetic. Not bad, eh?

I personally use Mobil 1 oil for my vehicles. I have minimal engine problems. We recently broke down the motor of a friend who used Mobil 1 for 125,000 miles in a BMW and found the engine to be in great shape.

Stop throwing away money by unnecessarily paying for oil changes ever 3,000 miles. Give your owners manual a read and follow those directions. You will undoubtedly save some serious money.

Donate or Sell — Which is Best?

What four things should your consider when trying to decide to donate a car or sell it? These four very important things are: 1)the value of the car, 2)a charity that could use the car, 3)your tax bracket, and 4)the value of your time.

In determining the value of your car, you need to consider what the “real value” is. Many people mistakenly believe that they will get whatever the Kelley Blue Book says is the expected value. That is not always the case. Other factors affect what you can expect to get. The value stated by the Kelley Blue Book (KBB) is a good starting point in estimating what to ask, but is often not a reasonable expectation. A more realistic estimate would be to cut the KBB estimate by 30%. Of course, it will be further cut by the tax liability based on your tax bracket.

Depending on your tax bracket, you will have to cut your net profit by whatever percentage you fall under. If you are in the 25% tax bracket and you get an offer for $1000 for your car, just know that after you decrease it by the 25%, you will only have a net profit of $750. You need to take this in to account when determining the net profit. This may well affect your decision as to whether to donate or sell.

Other expenses also need to be factored in. You need to advertise. Let’s say you spend $80 on advertising. That means only $670 for the car now. You may also need to have it professionally detailed. Subtract another $70 for that. Now your car is only going to net $600.

You will want to ensure that the car is running properly. Take away another $75 for a mechanic to inspect the vehicle and write up an info sheet on the car’s condition that you can present to prospective buyers. It’s also important to remember that a car’s exterior condition may be more crucial to its sale than anything else. You may also want to repair body damage on the car as even the most seemingly insignificant everyday nicks and dings can discourage a buyer.

Do you see how the net value from selling the car now goes from $750 to $525? There is actually potential there for less than $525. What if something is wrong with the car? What if you need work done to fix some dents and scratches?

Now consider this. Most cars donated to charity are sold at an auction. In fact, the IRS instituted new rules in 2005 that stated that the only way to get “full” value after donating a car is if the car is sold at an auction and in use after you’ve given it away. Donating a car to charity will typically earn you a $500 tax deduction or the gross proceeds of the auction value of the car. Assuming that you donate a car and earn a $500 tax deduction - is the potential of a $25 profit for selling your car worth the hassle?

Selling a car can be quite time consuming. You will have to deal with strangers and answer all their questions and concerns about the car. You may get phone calls at all hours, some being very inconvenient for you. Your time counts for something.

Selling a car may mean having to deal with phone calls at whatever time the phone rings, whether it is convenient to you or not. You could well spend an hour or more dealing with potential buyers and their questions. Planning and producing ads and signs can easily consume another hour and a half. Taking the car in to the body shop and mechanic may take an additional two hours and may even involve having to miss some work or arrange another means of transportation while it is in the shop. Having it cleaned and detailed may involve another half hour or so.

You will have to schedule times for people to come see the car, check under the hood and test drive the vehicle. You might even schedule with someone and have them no-show the appointment. Others not only want to look at the car themselves but will also request that you take the car to a mechanic that they trust for an inspection. And, most of the time, people with these type of demands are the ones who don’t close the deal! It is said that someone selling a car can optimistically expect five to ten inquiries that go nowhere before the car is sold. Let’s estimate that a total of three hours is spent meeting with people.

It is plain to see how at least eight hours are consumed in selling your car, with only $25 expected profit. Can you really afford it? If you donate the car, you just have to call someone to come tow it away to auction and you are done. You never have to think about it again until income tax time when you take that deduction. It is obvious that donating your car makes much more sense than selling it.