03:10 PM PDT on Tuesday, May 25, 2004

Evening Magazine

(File photo)

Amazing auto woman

Is there a better way to buy a car than negotiating for hours at a dealership?

After nine years behind the wheel of her Nissan Pathfinder, Jennifer decided life's too short not to drive around in a convertible.

But even this successful software saleswoman dreads all the negotiations that typically come with buying a new car. So after a little research, Jennifer got on the phone and hired Heidi Hough, the Amazing Auto Woman, to find, negotiate and buy the car for her.

"They just pay me a fee and I tap into my huge network of dealers that I work with and try to find the dealer that has the best price for the client," said Heidi.

Her fee runs $300, but it's money Heidi almost always makes up by buying a new or used car for substantially less than most of us could.

Heidi says he knows a lot of inside information that she didn't want to publicize.

But her secret is simple. She helps clients buy so many cars – up to two dozen a month, dealers offer Heidi a fleet discount.

Hedi enjoys the art of the deal, but the real payoff is delivering the new car to her client.

"The best part was she negotiated the price with the dealer," said Jennifer. "I didn't have to haggle at all. She saved me thousands of dollars, so that was worth it for me right there."

So how much did Jennifer save?

The Nissan 350Z's second sticker, which includes the dealer markup, was $43,280. Heidi got the car for $37,829. Including her $300 fee, Jennifer still saved $5,151 – and hours of negotiating.

Stretching your gas dollar

If you're fuming over rising gas prices, here are five ways to get the most out of your gas dollar.

1. Buy cheap gas. To find the cheapest stuff around, go to GasBuddy.com – a network of spotters keeping tabs on gas stations nationwide.

2. Slow down! For every 5 mph you drive over 60, you're adding 10 cents to the cost of a gallon of gasoline.

3. Want air? Use the air vents! Running the air-conditioner increases fuel consumption by up to 10 percent on the highway, 15 percent in the city.

4. Keep your car in shape. Check your tires and keep them properly inflated. Underinflated tires can reduce mileage up to 4 percent for every 5 pounds of underinflation. Also, check your filters – dirty filters can increase fuel consumption by 10 percent.

5. Lighten the load. Clean out the backseat and trunk. Every 100 pounds of junk equals one less mile per gallon.

Flexcar

Here's a great way to save money on your car: Don't buy one, share one!

You pay a $25 annual fee, then $9 per hour plus mileage.

Their Honda hybrid gets almost 50 mpg and you don't have to worry about gas, insurance or maintenance.

It's available in Seattle, on the Eastside and in Kitsap County.

To find out more, call 877-FLEX-CAR (877-353-9227).

Debt disasters

You think you've got money problems? You're not alone.

In fact, even people from billionaire Donald Trump to piano man Billy Joel have all made big money mistakes the rest of us can learn from.

Many celebrities have burned through their millions, spending their way to the brink of bankruptcy, and sometimes even beyond.

Debt counselor Charlie Helms says cash-careless celebrities can teach us all lessons about what not to do with money.

Lesson one: How to throw away millions the MC Hammer way. Hammer squandered $30 million on a huge California mansion, 17 luxury cars and by maintaining a $500,000 a month payroll for his entourage. Hammertime expired after just five glorious years and the rapper filed Chapter 11 after blowing nearly $50 million. So set up a savings account!

Lesson two: It's a matter of trust. Billy Joel hit the wrong notes when he let his ex-brother-in-law manage his money. Defrauded out of $30 million, the piano man spent most of the 1990s on tour, trying to get back in the black. It's an expensive way to learn you have to be actively involved in your own finances.

Lesson three: Turning the trump card. Owner of the business world's greatest brand name, Donald Trump has experienced fortune, fame and near failure, but the Donald always knows what he's worth every minute of every day. Besides, he loves what he is doing – and you need to do what you love.

You've got to be happy with what you have because money doesn't buy happiness.

Teenage millionaire

Want to meet a future millionaire?

Just order a fast-food burger and fries and shake hands with the kid behind the counter, because that kid could easily retire as a millionaire.

Kyle Boler works at Dick's drive-in on Capitol Hill. He earns $9 an hour and is saving up for a new car.

Enter the Motley Fools. Brothers Dave and Tom Gardner taught Kyle how to retire as a millionaire – something they do for thousands of people through their advice columns, books and their Web site, www.fool.com.

Kyle had $1,000 saved up and planned to put that toward a car – a $7,000 car.

But any car Kyle likes will depreciate in value, so the Fools suggest he cut his losses by getting a $500 car.

If Kyle take the $6,000 he saves and invests just $100 a month in a Mutual Fund, by the time he is 65, he'll be worth well over a million dollars.

To have $1 million at a future date, if you average an annual rate of return of 10 percent and make regular monthly investments, here is how much money you need to invest each month to reach your goals:

$5,000 a month for 10 years = $1,024,225

$2,600 a month for 15 years = $1,077,623

$1,400 a month for 20 years = $1,063,116

$800 a month for 25 years = $1,061,467

$480 a month for 30 years = $1,085,034

$300 a month for 34 years = $1,027,617

$100 a month for 45 years = $1,048,250

The Motley Fools say anyone who can save and invest 5 to 10 percent of what they earn every year will have a happier retirement.

Credit card tip

The average American today has about $6,000 in credit card debt. Remember, the interest on your credit cards is negotiable. If you're paying 17 percent to a credit card company, call them up, negotiate that rate down to 10 percent and pay that debt off as quickly as you can.

Thinking green

In an age when take-out food has emerged as one of the four food groups, Lisa Farino and Peter Lyckx, the self-proclaimed "frugal environmentalists," say there are healthier, greener and cheaper ways to live.

1. Bring your lunch to work and buy bulk foods.

2. Make your own cleaning supplies.

3. Drive less and drop your gym membership.

They say, thinking green could also help you save some green!

Finding free money

From expired gift certificates to old bank accounts, Americans are missing out on billions of dollars simply because they don't know it's there.

There is an office in the Department of Revenue where employees actually try to give money away.

From unused gift certificates to deposits never returned, almost a million people in Washington State are missing out on more than $300 million. This means, one out of seven people has money to claim.