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Save Money on Gas – Buy a Scooter

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Buy a scooter… don’t be afraid

While I’m fully aware a lot of people think driving a scooter is wimpy, dorky, etc., I’ll also challenge those closed minded, old-fashioned opinions as being too concerned with what others think.

It makes sense. Our ability to think outside the box has been beaten out of us by a consumeristic culture and persuasive advertising.

Despite numerous benefits and few draw backs – unless you’re a college student – owning a scooter is relatively uncommon in most parts of the United States – not so in other parts of the world.  When considering the pro et contra, buying a scooter can stack up quickly into an economically wise purchase.

Scooters, moped, and motorcycles

In the interest of this article, scooters are synonymous with mopeds and defined as follows:  a 2-wheeled vehicle with a saddlelike seat mounted on the footboard and being propelled by a motor – and for the purpose of economy let’s focus specifically, but not entirely, on scooters of the 50cc motor variety (to be further explained later in the article.)

A scooter ≤ 50cc and a motorcycle ≥ 51cc. CC = cubic centimeters and refers to engine size (volume of air and fuel mixture intake in a cylinder bore.)

Although some states differ, most states consider any motorized bike 50cc or less to be a scooter and any bike 51cc or higher to be a motorcycle… a very important distinction because many of the benefits below do not apply to motorcycles.

Since scooter/moped laws differ from state to state be sure to check your applicable state laws pertaining to helmets, insurance, registration, etc.

Let’s take a look at some benefits, along with a few buying tips, as seen through the eyes of this fledgling scooter owner; but first, some helpful details about my scooter.

My scooter

My scooter is a 2009 JCL model MP50B.  I purchased it in mid April 2010 for $600 despite a KBB value of $710 at the time of purchase – I love a good deal.  The bike had been driven only 385 miles, was in pristine condition, and ran like a top.  One month and 450 miles later… everything is on the up and up and I couldn’t be more pleased with my purchase.

Save money on gas

Driving a scooter will save you a boat-load of cash on gas.  Let’s look at the specifics of how much I have saved in just one month.

Since purchasing my scooter one month ago (at time of writing) I have driven 450 miles on 4 tanks of gas.  The tank is 1.32 gallons and the scooter gets 100 mpg, using an average gas price of $3.00/gallon I have spent $13.50 on gas compared to the $90 I would have spent driving my 2000 Jeep Cherokee Sport, which gets a mere 15 miles to the gallon.

Conclusion?  My scooter gets 6.667x better gas mileage than my Jeep and should pay for itself in one driving season in gas savings alone.

Save money on vehicle maintenance

Every mile I drive the scooter means one less mile on my Jeep.  Maintenance and parts for my Jeep are much more expensive than for my scooter.  I can perform maintenance on the scooter myself and replacement parts are much less costly.

Save money on insurance and registration

Again, although some states may differ, in Michigan a 50cc scooter does not require insurance coverage.  The only cost associated with driving my scooter, other than gas, maintenance, and repairs… is the registration tag.  Michigan charges $15 for a 3 year registration sticker.  That’s it folks, $5/year.

Save money on a helmet

In many states a 50cc scooter rider is not required to wear a helmet.  While many choose to wear a helmet anyway, they are not required to by law.  This could obviously draw a lot of comments, but putting aside all that debate, the fact remains… many state laws do not require a helmet on a 50cc scooter.

Buy a scooter used

Just as purchasing a slightly used vehicle is often a better decision than buying new, the same is true for scooters.  Here are my tips for those looking to buy a scooter used:

  1. Do not buy a scooter from a college student. No offense young’ens… but I was a in college a few years back, which is precisely why I’m telling people not to buy a scooter used from a college student.  Sure, there are always exceptions to the rule but there is a reason their insurance premiums are high, so use common sense.  🙂
  2. Buy a scooter from older folks. Many RV’ing retirees buy scooters for buzzing around RV parks and campgrounds while traveling.  The truth of the matter?  They don’t usually end up using them much and tend to take great care of their possessions.  This means low miles, routine maintenance, fewer wipe outs, and no beating on the scooter.  Find a good price and you have yourself a recipe for a good buy.
  3. Use KBB to estimate buying price. Before you go test drive a scooter, be sure to check out the Kelly Blue Book Motorcycle Retail page to determine a solid buying price.  Simply pick your year, make, model and size to reveal what a low-mile bike in excellent condition is worth.  Print the page and take it with you as a bargaining chip (unless they’re asking less than the bike is worth of course.)
  4. Use Craigslist. Beyond the obvious benefit of using Craigslist, I recommend using a CraigsList search/notification app.  Said application will allow you to input a search term – like “scooter” – and set up alerts for all newly placed relevant ads so you can be the first to contact the seller.  That is precisely how I found my, virtually brand new scooter for such a great price.  I was the first to call, first to visit, first to make an offer, and it paid off.
  5. DO NOT FINANCE. If you don’t have the money saved and previously budgeted… don’t buy anything.  Period.

Wear a helmet

Yes, even if you don’t have to, and yes, even though I listed it as a possible money saving benefit above.  If you’re not going to wear a helmet, consider purchasing a windshield, and a the very least be sure to wear some type of eye protection like eye glasses, sunglasses, or Dumb and Dumber scooter goggles.  😉

Perform regular maintenance

To ensure optimal operation and to extend the life of your scooter be sure to follow the maintenance schedule supplied by the manufacturer.  Most everything is routine like checking/replacing engine oil, gear oil, air filters, tire pressure, etc.  You will not need to hire a mechanic unless you’re diametrically opposed to elementary mechanical maintenance.

Dress warm and carry extra clothing

Even in a northern state of Michigan, I can easily get 7 months of ride time each year, but not without proper winter gear.  If you choose not to wear a helmet, when it’s chilly out you’re well advised to wear a winter cap; while you’re at it… don’t forget the gloves.  Be sure to wear a jacket that seals off your neck and wrists, since failure to do so can turn a cool ride into a freezing cold ride really quick.

Scooters are cool

Don’t let anyone fool you.  When you drive a scooter you save money hand over fist, you get to ride down the open road, and of course… chicks dig guys on scooters.  Just ask my wife.  😉

What are you waiting for?  Go open an Capital One 360 savings account, label it “Sweet Scooter Fund,” and start saving for your soon purchase!

Powerful Advantages of Renting a Home Before Buying

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Powerful Advantages of Renting a Home Before BuyingThis is a guest post by Kevin Mercadante at OutOfYourRut.com.

It’s almost hard to go a day without hearing how lousy the housing market is but if you’re looking to buy you may be able to find an unexpected advantage in all the bad news.

Though not many people do it intentionally, renting a house before buying would provide a number of incredible benefits if you’re willing to do some digging in the market. It’s kind of like test driving a car before you buy—same principal. I’m not talking about a lease purchase, or rent-to-own arrangement either, but a traditional rent-to-rent-and-maybe-buy-at-a-later-date kind of deal.

Think of it as a “Try Before You Buy” philosophy to buying a home.

Lease Purchase

Lease purchases are generally formal arrangements which spell out the terms of final sale in the agreement, and typically require a non-refundable deposit which will be credited toward the eventual down payment. The written agreement is actually a contract of sale with a temporary lease provision included. As neat and tidy as this seems, there are a couple of major negatives in there from the tenant/buyer angle.

First, if you fail to complete the sale, you’ll forfeit your deposit, and that deposit can be considerably more than a typical rental deposit. Second, you are locked into the agreed upon sale price. That would be an advantage if house prices were rising, but at the present time they’re going the other way. Imagine this scenario: you’re locked into a contract at a price of X when the market value suddenly falls to X minus 10% by the agreed-upon sale date. Now you’re faced with a choice of either paying too much for the house or losing your upfront money for failing to do so. Heads you lose, tails you lose.

Rent-to-Rent (Then Own)

On a straight rental arrangement you preserve all of your options, which can be a huge advantage, especially in the current market. Some of the benefits include:

  • Negotiate a lower sale price. Not only will you get the lower future price if values continue to drop, but it is also likely your landlord will not have to pay a real estate commission & therefore will be more flexible in negotiating final price! It’s no secret that many homes are offered for rent in the hopes of securing tenants who might become a buyer, thus eliminating the need for an agent. You may also be able to gain a price advantage by the fact that you’re a buyer in hand, freeing your landlord from the responsibility of marketing the house or performing routine maintenance upon your departure.
  • No moving or moving costs – you’re already there. One of the great financial stresses involved in buying a house is that you’re besieged by costs from every angle—down payment, closing costs, escrows, inspections, new furniture. True, you will have already paid for the cost of the move when you first moved into the house, but one major expense is removed since you aren’t paying it at the same time as all the other costs. It’s spacing out your expenses, which can be a blessing at the closing table. Plus the stress of a major financial transaction is reduced by eliminating the need to combine it with a complete uprooting of your life.
  • No guess work on repairs, condition and flaws. As an existing occupant, you’ll know the real condition of the house as well as any issues that may not come up on a home inspection or appraisal, or that a real estate agent may fail to disclose. For example, an inspection conducted in the summer won’t disclose that a house is drafty in the wintertime. There are flaws and other serious issues that are only visible to a person living in the house.
  • No guess work on the neighbors, the neighborhood or the school system. In the real world, you can fall in love with a house, but find the neighbors or even the entire neighborhood to be intolerable. This is especially true now that so many homes are located in homeowners association controlled neighborhoods (HOA’s). Some HOA’s are overzealous in their enforcement of certain provisions and in others the provisions themselves are close to ridiculous. A friend of mine and her husband recently sold a house in an HOA neighborhood that prohibited overnight parking—in their driveway!  This isn’t something a seller or real estate agent would be particularly fond of telling you prior to closing, but as an existing occupant, you’d already know about it and whether or not you’d be willing to accept it.

Here is an excellent example of one couple who chose to Rent Vs. Buy and how they are putting the savings aside for a down payment on their future home!  They are being very choosy and waiting until they can get exactly what they want!  I think this is a very wise choice, especially considering today’s housing market.

Finding Acceptable Rentals

The good news in this market is that many of the houses that are offered for sale are also potential rentals. In many markets around the country, expected market times to sell a house are running close to year, and often more. A tenant may not be a seller’s perfect prospect, but eventually circumstances may force him to consider it. In short, view any property as a potential rental.

In most areas the number of homes marketed as rentals is small compared to the number that are for sale, so you can expand the number of rental prospects by investigating those listed for sale. Properties listed for sale by owner (FSBO’s) can be an obvious source, but houses listed by real estate agents can be investigated as well. In fact, consider making a rental offer on any house that you would consider as a suitable home for you and your family.

If the property is a FSBO, you can contact the owner directly with an offer to rent. Most will likely turn down your offer up front; that’s fine, leave them your name & phone number in case they consider the option in the future and move on to the next property. It is a good idea to target a specific neighborhood of your liking and employ this strategy.

It gets more complicated with a realtor listed property, but it’s still doable. Typically, when a seller lists his home with an agency, he is not allowed to accept offers outside the agent’s knowledge. But that exclusivity may not extend to rentals, as the seller has signed an agreement to sell, not rent, the home (check the laws in your state). However listings can and do expire without ever producing a sale (more so lately) and a seller is free to do what ever he chooses once it does. Same plan here, approach the owner, not the agent, with an offer to rent, leaving your name and phone number. You will most likely need to knock on the door to speak directly with the owner as all contact information on yard signs and marketing material will be directed toward the agent. In the likely event the owner isn’t home, leave a note on the door apprising him or her of your offer.

Tying it all Together

This will be a bit of a numbers game, and will be more effective if you can make offers on houses that have been on the market for six months or more, but approach enough sellers, and you may get a surprising number of parties interested in your offer, enough at least to provide a decent choice of homes.

It probably will be better if you don’t suggest any intention to purchase the home at some point in the future, leaving that proposal to the sellers. Whoever asks for the sale first is in the weaker position. No seller ever wants to rent his home as this will rarely solve all of his problems. But rest assured that even if he agrees to a rental, he will do so with the hope that you will be the eventual buyer. It is unlikely the seller will want to put it back on the market especially after being unable to sell on the first go round. You will be his first best choice as buyer by default.

If you find a home you like and the owner is willing to accept your rental offer, you can move in, “test drive” the house, the neighborhood (and the neighbors), as well as the school system.

What do you do if it all checks out? Wait for the owner to offer to sell the house to you; that will most likely happen sometime before your initial lease expires. When it does, you can move forward with 100% confidence that the home you’re buying is the right one for you. And you won’t even need to pack up your furniture!