airport terminalI’m in the airport on my way to Canada right now. While I’m bored, I figured that I should write to you about some of the ways you can save money in the airport since everything is more expensive inside than out.

Airline Tickets
I mainly use Expedia because of its flexibility in combining flights from different carriers. For example, I flew from Los Angeles to New York for a couple night stay on American Airlines, then to Canada on Delta. On the way back, I’m flying from Canada to Texas on an Air Canada flight, then a few days later to Los Angeles on Alaska Airlines. This way, I end up in 3 different cities for the price of 2.

The main money saving technique is exploiting the use of the online reservation services. Whether it is Expedia promo code or Priceline promo code, there is an option to try out your many different routes without driving someone and yourself crazy over the phone. You can ultimately plan and pick the best route if you are a little flexible with the dates and times of departure and arrival.

Car Rental
Nothing seems to beat the name your own price with Priceline. If you have done this enough times, you will roughly know the approximate price that your price offer will get accepted. If you are new at this, go to priceline.com and click on name your own price to give the car rentals an offer. Note that this option is only available if you are renting and returning to the same airport, which applies to most people’s travels. If they don’t accept, then you just go back a couple days later to try a new offer. You will always end up paying a lower price than using conventional methods.

2006_a_clio_3.jpgOne of the things the car companies came up with is filling the gas tank up for you. The per gallon price car rentals charge is actually quite good, but the fine print says that you will pay for one full tank. So whether you leave ¼ of it empty or ¼ of it full, you will still be charged for the full tank. I honestly never opt for this option since I rather go fill it up myself, which is cheaper 99.9% of the time.

Where you actually rent the car actually makes a huge difference with pricing too. If you are renting the car from car rentals that are inside the airports, the before tax price will be higher. On top of that, car rentals inside the terminal will cost you extra taxes. So, it is often wise (if you can afford the lack of convenience) to rent a car that has a branch outside of the airport. If you do that though, be careful on the hours of operations since the ones that are not inside airports often have operating hours so make sure you don’t arrive to a closed car rental.

Inside the Terminal
Now that the TSA has disallowed liquids going through security, many people are forced to buy water bottles inside the terminal. Vendors know this, and I’ve seen the price of a bottle of water gone way up. For example, some of the shops out here right now are charging $3.00 per bottle of water… Something you can try is to actually just buy a cup of coffee at Starbucks, which can cost from $2.50 – $5.00. Then, you can ask for a cup or two of cold/hot water. Actually, they are supposed to be willing to give you water without the purchase, but you don’t want to set that kind of an example for your kids would you?

img_2274.jpgYou would want to eat before you get to the airport, since there is much more selection outside the airport. If you plan to feast, business class might not be a bad idea since you can actually eat and drink (even alcohol) all you want. Of course, it might or might not make sense depending on the deal you can get on this. (For example, the points needed to upgrade to business class might be worth it dollar for dollar but buying business class on an overseas flight would not make sense for just the free food).

Those of us that think the airport lounge is way too expensive definitely have a point, as they are $50 per day last time I checked. However, some of us might think it is worth it if we are actually staying inside the airport for a couple hours. The lounges supply drinks, snacks and a very comfortable environment. If you can live on the snacks, then that chunk of cash might not sound so bad if you were going to eat in those restaurants that give you crappy food for $20-$25 dollars anyway. On top of that, there are power outlets that you don’t have to fight for inside so you might save on having to buy those mobile battery chargers too.

Oops. They are making their last call so I have got to get on the airplane. I don’t need to explain to my co-workers that the reason why I missed my plane is because I was blogging. I will write again when I am in Canada.

z8.gifWould you rather own a brand new BMW 7-series instead of the car you are driving now if the purchase price is the same? What if I tell you that it will cost you $150 USD if you lose the key to the BMW? What about $6000 to fix a dent on your door? Would you still want to own one if you found out that you will spend twice as much on gas every month?
For many of us, the experience of buying a car consists of comparing the prices of the different vehicles that interests us. Very few of us will actually check out the mileage per gallon for those cars, and even fewer will compare the cost of repair, or to insure the vehicles. For the majority of us, we are just not paying enough attention to our finances this way. If you try to save money by clipping coupons but don’t do a full analysis when you purchase a car, you are being penny wise and pound foolish.

Here are some of the car related costs that you need to analyze before you jump into the purchase:

Different Gas Octane Levels – This is almost never a consideration, but there are some cars that required the premium type of gas because the engine is tuned that way. Unlike what some people believe, not putting the correct type of gas that the car owner’s manual recommend as the minimum will hurt the engine, shorting its life. The difference between being able to buy the regular octane gas vs premium gas could be 10%, which can add up.gaspump.jpg

Mileage Per Gallon (MPG) – This is getting much more attention these few years because of the rise in oil prices. However, most people use this information to pick a general brand of cars or one category with another. What we really should look at is the mileage per gallon of the different cars we are considering buying.

You also want to look at the highway and city MPG separately. There is no sense buying a car that is more efficient on highways when you mostly drive in stop-and-go traffic.

Repair and Maintenance Cost – Check out the average repair and maintenance cost on sites like Edmunds.com. This is especially important if you tend to go to the dealership for service they charge even more for maintenance. If you are buying a car with the latest technology, make sure you search online and find out whether or not a third party repair shop can even service or repair your car since some of the car companies are starting to sell cars that have proprietary electronics that are not repairable or serviceable outside of their dealerships.

When figuring out the maintenance cost, don’t look at just the service costs either. Make sure you figure out the cost like tires as well. To give you an example, I know someone who spent $6,000 on a set of 4 new tires for his range rover!

Car Insurance – Insurance for different cars can vary greatly. Don’t just assume that a higher priced car will have a high insurance premium. Everything from the type of car to the color will affect the monthly payment, so research thoroughly. Remember to ask lots of questions and getting real quotes on specific cars wouldn’t be a bad idea either.

Finance Options – Different car makers may have different deals on finance options, making the monthly payments vary significantly. Remember to check and ask about them when you are considering since a 0% APR loan and a 5% APR loan makes a world of difference.

Depreciation – You might be better off buying a car that is more expensive if the resell value of the car is also higher. You should factor in the difference between the purchase and selling price of the vehicle to see how much owning the car is costing you per year instead of just looking at the up front cost.

How many of these did you check when you bought your car? I for one did not check any of the above when I bought my 2004 RSX-S a few years ago, but now I know. Next time I buy a car, I wouldn’t be so ignorant.

Let me know if I’m missing anything and I will add it to the list.