Consumer Survival Kit; 414; Cars/Discounts/Moving/IRAs

Your survival kit show number for 14 cars discounts moving IRAs. The Maryland Center for Public Broadcasting. We. Are going public with. Every 33 seconds someone steals a car and the chances are 1 in 3 that the stolen auto will never be recovered. We'll take a look at the gadgets designed to help keep your car out of the hands of thieves shoppers are saving as much as 50 percent on a variety of merchandise at the factory outlet stores all across the country have these bargain hunters found their promised land at last. We'll find out in a report on discount buying how to save money on moving. IF YOU THINK YOU'RE UP DO IT DO IT YOURSELF. We'll show you how. We'll also show you how to avoid losing money on those do it yourself retirement plans. It can

happen unless you shop carefully. Stay tuned for these reports and more next on consumer survival kit. Hello I'm Larry Lohmann. Brenda Holmes reify King and George Allen are standing by with this week's reports. Jack Gilford will also be along with a few comments on retirement. First auto theft thieves steal an average of 1 million cars every year and all the cars that are stolen progressively fewer are being recovered. Police tracked down 90 percent of the vehicle stolen in 1066 in 1976 only 70 percent of the theft victims ever saw their cars again. Our sources tell us that any professional who wants to steal a car can do it. If he's given enough time

and cover and plenty of amateurs can. What can you do to stop them. Well we sent Brenda Holmes out to investigate. And here's her report. The most you can do is to make it difficult. Time consuming enough to convince a thief to try someone else's car instead. Cautious car owners made it harder than do careless car owners who often leave their cars unlocked. And. Worse. Their keys in the ignition. That's exactly what happens in an estimated one out of every five auto thefts. This common sense precaution against death is obviously a good first step. But beyond that there's a growing industry in auto anti-theft devices that cost anywhere from $5 to 100 or so to give your car and its contents additional protection. Let's pretend that I'm an auto P and I've managed to break the lock on the trunk or door of the car.

Wow that little attention getter would go on indefinitely unless I had a key. Now the returning car owner would have to insert a key before re-entering the car otherwise opening the door complete an electrical circuit that set off the alarm. Xtra will cut off switches off protection and internal switches into switches tend to have built in time delays that give you or a would be thief time to get in deactivate the alarm before it goes off. With another type called voltage sensor. An interior light comes on when you open the door. Who would or truck. That lowers the voltage in the car battery and set off the alarm. Lights have to be installed in the trunk. Who would make the sensor alarm work. No because it depends on functioning light bulbs the central device is less reliable than the circuit type. Because the both types of systems with installation

is about the same at the supply house. $90 which is about average. This warlock that sells in 1795 locks the steering wheel and the brake pedal so that neither can be moved. They're also armored collars with padlocks like this that cover the ignition switch and move the steering column. That makes the. Not only difficult to start but impossible to steer until the collars unlocked and forcibly removed most collars or shoes cost less than $60. Probably none of these devices will deter a professional car thief or altogether if he's intent on stealing your car in particular. But if he's not that choosy he's not as likely to keep at it as he is in a less challenging vehicle. The amateur is even less likely to put up with trouble. And you can still throw a few other tricks his way. Believe it or not this mechanic has just done an excellent job. Allowing me.

He has just installed an ignition cutoff device. Now before turning the ignition key I released a kill switch under the dashboard. Owner was the car would have stalled out again. Why then off to go to a would be thief. That's why ignition cutoff devices or kill switches make good sense. The Chapman locks system which locks the hood and cuts off the ignition is considered by experts to be one of the best. It goes for around $85 with installation. There are also few cut off devices that prevent gas flow unless you flick a special switch. We think that an ignition of fuel cut off combined with an alarm provides the best protection you can get. Thanks Brenda. What do you go for help. Our staff suggests that if you're buying a new car you might

ask your dealer about installing anti-theft devices. Some do other places to look include local auto supply centers including the ones at large catalog department stores. Also check with your mechanic. The thing to remember is that all of these devices by time and times something that auto thieves don't abs bear. Of course when it comes to automobiles theft isn't the only rip off you have to look out for. Take the case of this week's Survivor Ms Leslie Wisniewski of Wellingborough New Jersey. She ordered a 78 Chevrolet Malibu but when the car arrived at the dealership there was a slight problem as was national rights. It seems that the car came in with steel belted radial tires which added $96 to the price of the car sales representative said that a car with a V8 engine and air conditioning had to have steel belted radials as was Nash pointed out that there was no mention of that when she placed her order and that she expected to get the fiberglass radios that are standard equipment for the model she ordered. She confirmed that by calling two other Chevy dealers later

she learned that her written order had in fact been changed in violation of her contract. At one point a sales manager asserted that there's a federal law requiring steel belted radials on all comparably equipped vehicles as Wisniewski was understandably skeptical. She goes on the next day I called the traffic division of the New Jersey State Police and the auto safety hotline in Washington D.C. The information I received confirmed my suspicion that there was no such federal law. Finally she contacted her local Office of Consumer Affairs shortly afterwards. The dealer agreed to replace the tires or sell them to MS was at cost as Wisniewski declined. Instead she called off the whole deal demanded a full refund on her deposit and got it as Wisniewski way to go. If you have escaped a consumer trap. Help your neighbors avoid it. Tell us so we can spread the word. Write survivor consumer survival kit Owings Mills Maryland 2 1 1 1 7. Now a look at discount buying. We open our report with a sales pitch. You may find it hard to

resist. These days it takes most of the old paycheck just to make ends meet. That's why I can't in good conscience let you pass up consumers against inflation. A buying club that's a whole new concept and discount buy for a $600 lifetime membership fee you can count on a big discount on every purchase especially the major ones you know you're going to have to face sooner or later. You can't get around it. All appliances and worn out furnishings have to be replaced eventually. How do we get to those low prices. We cut the middleman right out of the picture. Everybody between you and the manufacturer hikes the price and before you ever see the price tag. But CA gets the merchandise. Lots of it brand name stuff gives it to you at 10 percent above cost where we figure it eliminating the middleman saves you at least 20 percent off the list price of almost any item you want and just look at the quality merchandise you can get name brand you can trust. This is your ticket for bargains you will never find anywhere else. The truth is you

can't afford not to join up. Some buying clubs or buying services are perfectly legitimate. Others are not government agencies and at least six states have conducted investigations buying clubs sales representations that were either misleading or were downright false. All researchers have learned of a major investigation that's being conducted by the Federal Trade Commission. There's nothing wrong with the idea of an outfit that sells products to its membership at a discount price reduced by the middle man's usual markup. What's important is that the club delivers on its promises. Here's how promises have differed too often from performance for $600 lifetime membership fee. You can count on a big discount on every purchase especially the major ones you know you're going to have to face sooner or later lifetime membership. The odds are very good that you'll outlive the buying club hundreds of buying clubs offering long term memberships for as much as fifteen hundred dollars have gone under long

before the members could recover their investment. Let's assume the club you join does stay in business however. All right if you bought a $600 membership in one that offers a 20 percent discount on the items you buy you'd have to spend at least three thousand dollars just to recover your investment. Whether you do that depends on a lot of things. First how real is the discount. The way we figure it eliminating the middleman saves you at least 20 percent off the list price of almost any item you want. The buying club is a middleman. It has to make a profit to stay in business. If you get a 20 percent discount after the club takes its share you're doing pretty well. But the salesman promises the discount off the list price lots of items in department and discount stores go for much less than the list price. That means you might find the item you want at the buying clubs discount price just by shopping around your community and with a club plan you're more than likely to be on you're wrong when it comes to

getting service and warranty work when it comes to the merchandise itself. And just take a look at the quality of merchandise you can get. Name brands you can trust. Another frequent disappointment in some cases is only a limited number of attractive name brand items available to members of some clubs have received Brand X substitutions instead if the available items don't meet your expectations you may never buy enough items to recover your investment. The truth is you can't afford not to join up. That's debatable. The thing to remember is not to get into any type of buying club contract unless you are sure that the outfit is legitimate. That's especially important if you're risking a lot of money for a long term membership. And generally it pays to be skeptical about that kind of deal. The local Better Business Bureau and your state attorney's office may be helpful sources investigation takes time. So don't be pressured. And if you do sign a contract in your home remember you have three

business days to change your mind and back out. There is a simpler way to get around middlemen mark ups and naturally the first to know about it is the die hard bargain hunter. I believe it's a sin to pass up a bargain I mean even if you have to spend your last dime to buy it. And today I bought salvation at a factory outlet store. I swear it's the pot of gold at the end of the rainbow which is about the only way you can ever find this place I mean it's so remote I had to outmaneuver assumably over a parking space but inside is where my ship came in. Well it was sort of spooky at first I mean no salespeople no Muzak no decor. But then you see all those stacks and stacks. Beautiful clothing. Oh sure some of it's flawed but in places you never see without a magnifying glass. I bought six of everything that fit unlike the lady in the communal dressing room who stuffed a size 10 cocktail dress with her size 14 body right before my very eyes. Anyway I'm going right back for more this is just my first load. Now if only I can make my husband understand that the more you spend the more you save. When it comes to discount buying the outlet business is the most direct route to lower prices.

And the idea appears to be catching on fast in these outlets manufacturers are offering you merchandise that wasn't sold for whatever reason to retailers. Sometimes the merchandise is flawed in some way. Sometimes it isn't. In either case if you shop wisely you can generally expect to save up to 50 percent of the retail price for all kinds of respectable merchandise. Here's an example. The Waring company sells this blender on flawed in its factory outlet store for $16 48 cents at a catalog showroom store the same lender is selling for $18 99 cents at a discount store. The blender is going for $19 99 cents. A department store selling the blender at the full retail price would charge twenty eight dollars ninety five cents. Now that's roughly 45 percent more than the outlet price. There are outlets for a wide range of goods including housewares hardware clothing fabrics food appliances and furniture. Where to find these outlets. Well you're more likely to find outlets in out-of-the-way industrial or warehouse

districts than you are in a convenient shopping centers. Sometimes the outlet is right on the premises of the factory where the merchandise is produced. This men's clothing factory produces six hundred suits a week. The company sells some of them to consumers right here in the adjoining outlet showroom. The rest of them are sent to the company's eight other outlets in Maryland Virginia and New England. Generally you can expect the best deals at a direct factory outlet like this one that specializes in only one brand of merchandise. One outlet deals in merchandise from several manufacturers there is usually a mark up in price. The hand tailored suits that are sold here are all unflawed and generally of higher quality. The range of prices goes from 130 to 150 dollars which may not sound like a bargain basement price but the same clothing would go for two hundred twenty five to $275 at a full retail mark up in a department store. The cheapest

merchandise here is the discontinued clothing unflawed leftovers from one or two seasons ago and such items can be good buys. But before you rush out to stuff your shopping bag keep in mind that shopping at a factory outlet is seldom as genteel a sport as shopping at a department store. So here are a few tips to keep in mind before you try outlet shopping first. Call ahead outlet hours are often irregular and subject to last minute change. Know what merchandise the outlet specializes in. Since outlets usually employ very few salespeople it's up to you to find out what you're looking for and to inspect it carefully. That's especially important when you're considering flawed merchandise usually labeled irregular or seconds. Also keep in mind that an outlet isn't likely to offer delivery service. Not even the ones that sell big ticket items like furniture and appliances. And some outlets don't accept credit cards or personal checks. So call and ask ahead of time. For a list of original shoppers guides to factory outlets and other routes to discount buying.

There's plenty of valuable information in this week's survival kit. Several articles in this edition have further advice on getting the most out of your outlet shopping. This article shows you how to drive a hard bargain in the marketplace by doing some homework and some scouting beforehand. Do you throw away all those coupons and special offer boxtops. This article shows you why you should. Here's the lowdown on auctions. They're accessible and worthwhile. If you've got savvy this article which includes an auction glossary can be your first step. Looking for discounts on furniture. Be careful. The guidelines in this article will help you determine whether the discount price is really a bargain. Here are some cautions about high priced long term memberships in buying clubs. And another article is a how to on the long lost art of bartering. And of course there's a selected reading list including these regional directories to factory outlets for your copy of this week's publication. Send $1 to discounts box 1078 Owings Mills Maryland 2 1 1 1 7. Please allow 3 to 4 weeks for delivery and

Maryland residents please add 5 percent sales tax that's $1 to discounts box 1078 Owings Mills Maryland 2 1 1 1 7 and now with more on saving money this time with do it yourself moving. Here's reify. No matter how far you're moving the do it yourself method with a rented truck or trailer is usually half as expensive as a professional move and maybe twice as strenuous. In any case the shorter the distance and the lighter your load the more practical it is to tackle a do it yourself move. Now when it comes to rentals your basic choice is between trailers and trucks. Both come in a variety of sizes. The largest trailers can accommodate two to three rooms of furniture for larger loads. You need a truck. The dealer should be able to advise you on how large a vehicle you need. If you give them a clear idea of the size of your load and especially the heavier bulky items you have to handle. Rates vary among local independent agencies that rent trailers and trucks for short hauls the same is true of the agencies affiliated

with the national or regional companies. And these are the ones you have to consider for long distance one way trips you return the vehicle to the company representative in or near your new community. Company representatives tell us that rates vary quite widely from season to season and from place to place within the same company. For example in January of this year you would have paid for hundred and fifty three dollars more to rent a 12 foot U-Haul trailer for a move from New York to Gainesville Florida. Then to make the same move in the opposite direction. In some cases you can avoid a rate hike by reserving a vehicle 30 days or so in advance. That also helps insure your chances of getting the vehicle you want when you want it. It's usually hardest to find the type of vehicle you need during the peak summer season. And the same usually goes for weekends. Not every truck or trailer is bad for household moving. Look for one that is your truck or trailer should have rope rings for example along

inside walls to help you tie things down and padded railings to protect your furniture from scratches. Most trucks come with loading ramps at no extra cost. Some companies offer hydraulic lift gates like this one. That's usually an extra expense options like hand trucks and furniture dollies. Also cost extra but can be worth the expense if you have a lot of heavy items to load. Optional padding may also be useful to protect your furniture. You can buy items like boxes and rope but you can save money by using your own. It pays to take a test drive before you load up. Since most inexperienced customers have trouble parking and backing up a trailer for example it's a good idea to practice that too. Although some small trucks and vans come with automatic transmissions. People who aren't used to driving trucks may still find them challenging. Generally the larger the truck the less likely it is to have automatic transmission. By the way when you have a small load and a choice of a small truck or a

large trailer remember that you'll get better mileage towing your car behind a truck than you would towing a trailer behind your car. Trucks with tow bars for cars are available. Most companies offer some form of liability or damage protection for your goods and the vehicle. Make note of what's covered and what isn't. But take the available coverage for trailers and trucks. It cost from two to seven dollars a day. Fortunately the accident rate for rental customers is quite low. Oddly enough when there is an accident it's usually because the driver forgot that the rented truck was taller than his car and have been so often that rider and hurts don't include overhead accidents in their accident coverage. Be sure to ask about company policy for accidents and repairs. And before you go jot down the company's emergency phone number should anything happen along the way. Larry thanks Rhea. Whether you're reading a do it yourself or or hiring a professional

mover. Don't forget our survival kit on moving or you'll find plenty of solid information and advice on everything from selecting them over to packing your dishes and transporting your plants or your copy of this edition of our publication. Send $1 to cover the cost of reproduction postage and handling two moving box 1078 Owings Mills Maryland 2 1 1 1 7 please allow 3 to 4 weeks for delivery. Maryland residents please add 5 percent sales tax for a lot of consumers the first moving problem is finding affordable housing a topic we've been covering regularly this season. This time we call your attention to current federal legislation that would make it possible for consumers to set up an individual housing account. If the legislation passes in its present form you could put up twenty five hundred dollars a year into an HSA until you've saved a maximum of $10000 and you get a 20 percent tax credit on your savings up to $500 each year until you withdraw the money for the downpayment on your first home. The tax credit and the prospect of being able to afford a downpayment on a home in a relatively short time could be good news to

lots of young families who can't afford their own house now. At this point the bill is in committee. Supporters are hoping for passage sometime this year. Coming up is a report from George Allen on those individual retirement accounts. But first a word from Jack Gilford. You know one of the great thing is about being a performer is that nobody says to you hey you're 65 we have putting you out to pasture. You work as long as you feel like it. But one of the problems when you're self-employed is no pension nobody tells you when to quit. But nobody provides for your retirement either. I just found out my accountant tells me if I put a little away every year now I'll be able to retire somewhat comfortably in 20 or 30 years. But that doesn't bother me in 20 or 30 years I may be ready to retire. A comfortable retirement can be very costly. And more and more of us are beginning to realize that the best evidence of this new awareness is the rise of the individual retirement account or IRA.

You've heard how it works. If you're not participating in any pension or profit sharing plan where you work you can put 15 percent of your earned income up to fifteen hundred dollars into an IRA every year. You pay more taxes on the money saved nor the interest you earn on that money until you retire. Then only as you would draw it presumably by then you'll be in a lower tax bracket. That way you pay a smaller tax on your money then you'd have to pay no. Let's say you put fifteen hundred dollars every year into an IRA with a seven and three quarter percent interest rate. In this example after five years you would have contributed seventy five hundred dollars but your retirement fund would earn interest could amount to over $1500. After 25 years you will have contributed thirty seven thousand five hundred dollars but your total retirement fund could amount to almost one hundred twenty thousand. With these kind of figures it's no wonder that more and more on pension workers are starting IRAs. But some who have are running into unanticipated problems. The big one is in flexibility over how often and how much to

contribute. The one thing you don't want to do is to put into an IRA money that you need for something else. If you withdraw any of the funds before you're 59 and a half years old there's a 10 percent tax penalty on the withdrawal. Except in the event of death or disability. There's a 10 percent penalty is imposed by the government. And in addition the bank will impose a penalty that can be quite substantial. Let's say you start of a Certificate of Deposit IRA for instance which is the most popular type. You sign a contract to maintain the account for at least three years which is the minimum and you can renew for additional terms if you decide to retire before the three years is up. It will cost you if you've been contributing for 20 or 30 years it could cost you as much as $50000 depending on how the bank computes the interest. If you're already in an IRA program that you're finding on satisfactory for whatever reason. Remember that the law allows you to change IRAs every three years without tax penalty. Whether you're looking for another certificate of deposit or starting one from scratch. Here are some points to keep in mind. Look for the

maximum interest rate allowed by law for banks and savings and loans which is currently seven and three quarter percent. Look for interest compounded daily and look for an account in which the interest is credited at least twice a year. Now for instance fifteen hundred dollars a year would be worth over one hundred twenty six thousand in 30 years at Bank One and just over one hundred twenty three thousand in bank two. Even though the interest rates were the same the difference is the method of computing interest. The best way to comparison shop is simply to ask how much money you'll have in retirement date. If you maintain a regular schedule of payments if you are unsure of how much you can contribute each year look for contracts that don't require minimum payments to renew the account. Another possibility is the possible IRA available in most cases and interest rates much lower than seven and three quarters percent. There's still a required minimum contribution and the accounts don't have to be renewed periodical So you have a much more flexible choice over when and how much you contribute. But considering the low interest rate on most passbook accounts you pay dearly for that flexibility. No matter

what type of buy or a you choose. Remember that it's a contract. Know what your obligations are and what will happen if you can't meet them. If you want an IRA you can live with while you're building in a retirement fund you can live on in the comfort you deserve. Larry. Thanks George. In a few weeks we'll take a look at retirement planning for those of you who have a pension where you work. Here's what we'll be looking into next time. Used cars to make sure that you will never be ripped off on buying one. We'll show you a five foolproof ways to tell whether a used car is worth your money. Among other things you'll learn why smart shoppers don't inspect used cars in the rain. And it's not just to keep from getting wet detergents your laundry may not be as clean as it looks with some brands you are paying for a clean wash and settling for a white wash. We'll show you the difference. And finally look at over-the-counter foot care products. Some of them can actually do more harm than good. For all this and more tune in next week for consumer survival kit. No. Consumer survival kit is produced by the Maryland Center for Public Broadcasting which is solely

responsible for its content. Funding for cancer survival kit has been provided by this station and by other public television stations. Or day or. Jury or.