Consumers Stand Up For Your Rights: Honda MPG And Recall Issues

Honda MPG Advertised

Misleading Advertisement

One of the main reasons why I bought a 2015 Honda Fit was due to the advertised fuel economy of 32 MPG City, 38 MPG Highway, and 35 MPG overall. My old vehicle was getting 12-16 MPG as a 2000 SUV, and I wanted something more economical to drive around town and to Lake Tahoe.

After going through 8 gallons of a 10.9 gallon tank (fuel light went on), I discovered that Rhino wasn’t getting anything close to the advertised 32 City MPG. Rhino clocked in a paltry 21.6 MPG, or a whopping 32.5% lower than advertised. I’ve since refueled the tank and driven another 200 miles and am now getting closer to 20 MPG in the city. I don’t know about you, but I find this difference egregious.

Here are some examples of getting 32.5% less than you paid for:

* Imagine paying $80 for a 60 minute massage and only getting 40.5 minutes worth.

* Imagine paying $100 for an NBA basketball ticket, and being kicked out 10 minutes into the 3rd quarter.

* Imagine paying $70 for a MLB ticket, and not being able to participate in the 7th inning stretch.

* Imagine paying $170,000 for a private university and only getting to attend for three years.

* Imagine paying $299 for the latest iPhone and only getting 43 GB of storage instead of 64 GB.

* Imagine selling an ounce of cocaine for $1,200 to your neighborhood gangsta who discovers that 1/3rd of the weight is actually powdered sugar. You’d probably get shot.

We buy things based on the advertised features. If the company lies about the feature, then obviously the consumer is being misled and should either get his or her money back, or get a discount based on the shortcomings of the advertised feature. I’m not going to buy the latest Macbook Pro 13″ if it performs like a Macbook from 2007.

Besides the MPG, I also bought the Honda Fit due to its short length of 160″ so I can find more parking spots. The final reason why I bought the Fit was due to Honda’s history of producing reliable cars that are hassle free.

I then got a letter in the mail from Honda.

How Much Is Optionality Worth To You?

D Sharon Pruitt

Photo by D Sharon Pruitt

When we first graduate, we have little-to-no options since we know nothing. We’re a cost center that does what we are told and likes it. We develop skills that provide us more options over time. We look for better opportunities or ask for raises with more skills. Sometimes we get complacent and just stick with a company for way too long like a bad boyfriend or girlfriend.

Eventually we stop being so parsimonious with our money because our financial nut grows to the point where we can afford luxuries otherwise foreign to us in the past. The luxuries I’m willing to pay up for now are convenience, time, and less stress. I used to be OK waiting at the DMV for 3-4 hours to register a used car. No more. I used to be fine waiting 45 minutes for a bus instead of taking a cab. But no more. Waiting in line for hours to get cheaper event tickets was no big thang. Now I am more than happy to pay a premium to get access to nice seats.

I think most of us who really care about our finances have a strong frugal side. Savings is in our DNA. We know that so long as we always spend less than we earn, we’ll eventually reach an amazing financial place. But due to the confluence of old age, awareness, and more money, we eventually change our spending habits.

Deciding On Leasing Or Purchasing A New Car: Saying Good-bye To Moose!

Ferrari Enzo

My new Ferrari Enzo

After 10 years, I’m sad to say that Moose is gone! He just had too many problems that cost too much to fix as a 14 year old Land Rover Discovery II. I hated to let him go because he was like my big boy. I still remember finding him with 87,000 miles at the orphanage (Craigslist) for $10,000 in early 2005. The owner got a sweet consulting gig in Amsterdam from Pricewaterhouse Coopers and she had to sell quickly. We agreed on the steal price of $8,000 and the fun journeys to Tahoe, Napa, and Carmel began.

I actually hate driving today. There are just too many cars in San Francisco and the Bay Area now that the economy has roared back. Traffic was very manageable just three years ago, but condos are sprouting up everywhere downtown next to main arteries, making driving very stressful. The worst is when delivery or garbage trucks double park during rush hour and traffic backs way up. Dear local politicians, please outlaw such activity.

There was a point where I almost thought about not buying a car at all, and just using UberX as it is so cheap and signing up for a ride-sharing program since prices have come down so much. But in the end, I still valued my freedom of being able to get in a car and drive anywhere whenever I wanted. 

Free Uber Rides! Changing Lives By Disrupting The Rules

Uber App Dashboard

Uber App Dashboard

For the past several years, I’ve seen Uber grow from a scrappy startup to an enormous success based right here in San Francisco. In the Fall of 2013, the company was “only” valued at $3.5 billion. A year later, the latest round of fund-raising puts the company’s value at $18 billion! Instead of driving for them, the best way to get rich would have been to work for Uber when it first started in March 2009.

Jabir, the “richest poorest person I know” actually became an Uber driver a couple years ago. He was unemployed for almost three years with a wife and daughter to support. It didn’t matter what time of day it was, he was always available to play tennis. We’d also drive all around the Bay Area to watch struggling professional players battle up the ATP points ladder for eight hours a day sometimes. As tennis junkies, we were in heaven!

Then one day Jabir stopped being available. No longer could he play pick-up tennis at Golden Gate Park at 2pm. No longer could he be my pal when everybody else had to work, so I had to find a new friend to pass the time after my morning writing was done. When I asked him what was up, he responded that he decided to drive for Uber.

For the next 12 months, I didn’t see Jabir at all. He drove ~10 hours a day for six days a week like a mad man. It was as if he was making up for lost time. When I asked him how much he was pulling in, he said well over $7,000 a month. Not bad coming from $0.

Uber allowed my friend and many other unemployed or underemployed people to find a way to earn some money and improve the inefficient taxi system in San Francisco. The disruption has been huge. I was even considering driving for them during my spare time, but Moose was too old as a 2000 Land Rover Discovery.

Starting in early 2014, Jabir began to come out and play again. When I asked him how were things going, he said that he was no longer driving for Uber, but driving a black SUV for a specific hotel instead. “Sam, I was getting too tired driving all those hours. Hotel driving is so much easier. Also, Uber kept cutting its prices so I was only making like $3,500 a month. It wasn’t worth it to me anymore.”

Jabir actually started outsourcing his car to his brother to drive for Uber so he could start collecting a percentage of his earnings and free up time for him to drive for the hotel. Smart man. There’s passive income opportunities everywhere!

How Much Does My Car Insurance Go Up If I Get A Traffic Ticket?

Car Accident insurance going upThe first thing I did when I got home after receiving a speeding ticket was call my car insurance company to find out how much my car insurance premiums would go up. Interestingly, they couldn’t give me a straight answer.

If I get convicted and don’t go to traffic school, I will receive one point on my driving record for the 10 mph over the speed limit violation. When I asked the car insurance agent for specifics, she kept on ducking the answer. For all of you who have received a traffic ticket or will get one, this post should help give you a good idea of what’s at stake when it comes to insurance premiums going up.