transportation Archives » The Mindful Consumer

Green Wheels — How to Buy a Eco-Friendly Car on Budget

A couple of years ago I traded a minivan for an elderly Corolla. It recently became time to retire those four wheels into assisted living, as my 70-mile daily commute was simply more than she could handle. I left her is the able hands of my college son, who no matter how hard he might try, is way too busy to drive even one-tenth of that. Plus he was willing to pay to keep it running, so no more skin off my wallet.

But I digress. Again I was faced with a consumer decision that was going to have repercussions every day for several years. What could I get within my budget? How could I balance the tradeoff between mileage and price? How could I reduce my carbon footprint with this purchase, or at the least keep it about the same?

I approached the process with over-analysis and a ridiculous amount of research that I’m known to exhibit in such situations. (Of course one first should evaluate alternative methods for transportation. For me, driving is the only viable option.) Yet I had a process, and the outcome was one with which I am content.

Step 1. Establish a budget. I defined a price range. Then I lowered it because I decided I didn’t want to spend so much on a car. My line in the sand was $100/month.

Step 2. Keep to the budget. Buying a car is an emotional experience. We’re culturally convinced that what we drive is an extension of who we are. The automobile industry has spent the last half-century telling us that a car is more than transportation. So we tend to see cars as more than transportation. Which makes it easy to lose one’s discipline in the process and overextend financially.

Step 3. Review how you will use the vehicle. My analysis showed I would be alone in the car commuting for 95% of the miles. No hauling a bunch of kids or junk. No super long trips.

Step 4. Calculate monthly gas expense at different MPG rates, based on your driving patterns. With the high cost of gas, most of us need to budget for gas. Seeing the real amount is helpful. Remember to consider hybrids, not only from their gas savings advantages but also their tax advantages. And consider manual transmission, as it is both a gas saver and price reducer. For my commute, a 10 MPG difference at current gas prices means a one-dollar difference each direction each day. While that does not seem like a significant amount by the time I pay off my four year loan it would have made (at least) a $1,900 difference.

Step 5. Based on usage and MPG, determine car type. I decided on a small sedan or coupe.

Step 6. Find the mileage and year ranges that fit your criteria.

Step 7. Read independent reviews of cars that meet your selection criteria. Consumer Reports online and Edmunds.com are credible sources.

Step 8. Narrow down to a few makes, models, mileage combinations.

Step 9. Shop! Besides Edmunds, I found Cars.com useful. I also searched online inventories of the largest local used-car dealerships. And look at the Carfax for those you seriously consider; it shows accident repairs and previous ownership specifics. Most dealers I came across offered the Carfax for free. It was important to test drive several cars; I tried the Hyundai Elantra, Honda Fit, Nissan Sentra,Toyota Corolla, Toyota Yaris/Echo, and others.

Step 9. If you don’t like it, don’t buy it. If it doesn’t meet your selection criteria, don’t buy it. I liked the Elantra a lot, but couldn’t find one in my price range for the model years that it was decent. Honda Fit was OK but seemed overpriced, even used. After much looking around, Sara found an Echo online. She had run around with a friend in one years ago and remembered it well. So we drove across the river, looked at it, and drove it.

But it was a manual transmission (5 speed)! I had not driven one in decades, yet I has owned two manual-transmission cars in my early car owning days. Our embarrassed sales guy had to call another because he couldn’t drive it to take us for a spin. I ended up taking it for a test drive anyway and it WAS like riding a bicycle — I remembered how.

Step 10. Buy it. We tried to haggle with the no-haggle dealership, but to no avail. But it was a good deal — excellent condition for a 2003; 63,000 miles, two owners. Most importantly it met my needs within my budget.

The Echo with it’s 4 cylinder, 1.5 liter engine gets 40 MPG, which is the amount touted in advertisements for the NEW Scion. Plus it’s fun to drive. It won’t win many races but has decent acceleration and handling. The windows are manual and there’s no cruise control. It’s not a status symbol in the traditional ways. Yet I like it and feel right about the decision.

September 19, 2012Ron ExlerPermalink

The Greening of the IRS: Tax Credits for Energy Efficiency

Being green can save some green here in tax season with residential energy credits. Fully explained in IRS Publication 5695, these credits apply to residential improvements that qualify as energy-saving improvements. There are two types of credits. The Nonbusiness Energy Property Credit accounts for improvements for things such as windows and doors as well as equipment such as air and hot water heaters, stoves, and air conditioners; with a maximum credit of $1500 for improvements made in 2009 and 2010. If you really went wild and got into alternative energy sources such as solar, wind, geothermal, or fuel cells (whatever those are) in 2009 you might qualify for the Residential Energy Efficient Property Credit, a whopping 30% credit. Now you can’t just qualify for anything — these credits apply to equipment matching certain certifications and energy efficiency ratings.

Also, Electric vehicles (EVs) purchased in 2009 and 2010 may be eligible for a federal income tax credit of up to $7,500. And of course there is the Alternative Motor Vehicle Credit if you bought one of these hybrids.

So save those receipts and get some green back for going green.

April 14, 2010Ron ExlerPermalink Leave a comment

My Pineapple is from Costa Rica?

I was looking at the pineapple on my counter this morning and it called out to me to be sliced open and eaten. It’s been home a few days, picked up on a recent trip to Sam’s Club. It’s a great fruit – juicy, sweet, fat free, low in sodium, loaded with vitamins B and C, fiber, and more. Trying to be more mindful of what I consume, I noticed the tag wrapped around its neck, identifying it as a Venicia Gold Extra Sweet Pineapple, a product of Costa Rica, from the Banacol company.

Costa Rica? I thought these things grew in Hawaii!? Well some do. Yet the pineapple is native to Paraguay. It made its way to other places by Indians carrying it across the seas. Eventually, a variety called MD-2 was developed in Hawaii in the 1960s as a less acidic and sweeter version, and is what most of us eat today. More recently, Dole brought the variety to Costa Rica, where the conditions are right for growing the fruit, land and labor are cheaper too. Costa Rica is now the world’s largest pineapple exporter. According to the U.S. Department of Agriculture, Costa Rica’s fresh pineapple exports to the U.S. increased from $80 million in 2004 to $372 million in 2007. The U.S. accounted for 52% of Costa Rica’s1.8 million metric tons of pineapple exports in 2005, according to the United Nations Food and Agriculture Organization. All while Hawaii pineapple growing is dwindling fast.

Banacol ships its pineapples 2100+ miles via cargo ships from Costa Rica to Chester, PA near Philadelphia. And it’s not easy; pineapples are fragile, need to be picked right before shipping, and then require refrigeration storage (46-50 degrees F) for the journey. Banacol says it has the capacity to ship 7 million boxes, each weighing 25 pounds — that’s 87,500 tons. Greenhouse gas emissions to transport the fruit, first on ships and then on trucks, is significant. Using the Greenhouse Gas Protocol calculations, that equates to 17,500,000 kg of greenhouse gas emissions per year. Are you coughing yet? Well you might be after you learn that part of typical pineapple processing is a decontamination wash of hydrogen peroxide and acetic acid. And according to the Miami Herald, in 2008 authorities found small amounts of Bromacil, a pineapple pesticide in a local aquifer. Despite government reassurances that problems are fixed, there is ongoing uncertainty as recently as a year ago that some water problems remain – referenced here, here, and here.

Amazingly I am not the only one thinking about pineapples and their source. Just the other day, Whole Foods made a big deal about Costa Rica pineapples as part of the “expansion of its ethical sourcing program in Costa Rica, which puts the leading natural and organic foods supermarket at the forefront of responsible pineapple sourcing in the U.S.” Whole Foods wants its shoppers and investors to know that is is serious about fair trade, “To earn the Whole Trade Guarantee seal, growers must be certified that they ensure fair wages and safe working conditions while caring for the environment. Through Whole Trade products, Whole Foods Market supports positive change in the developing countries where it sources products. Additionally, one percent of Whole Trade purchases go to the Whole Planet Foundation to help fight poverty in developing countries.” Whole Foods claims to have checked out the local conditions in Costa Rica, and now offers a “Whole Trade Pineapple” with a “Whole Trade” guarantee.

So we shouldn’t feel guilty about buying pineapple grown so far away. It won’t grow in my yard or yours. And why should we live without this delicious fruit? It’s a choice we have to make. Do I feel better knowing the facts? Not sure, but I will ponder the question over a slice of pineapple.

April 3, 2010Ron ExlerPermalink Leave a comment