With the economy heading south and unemployment continuing to rise, consumers have been pulling back on their spending in order to have more money available for day to day necessities.  Certain areas of the economy are more susceptible to the downturn than others; and as spending has dried up, manufacturers and retailers in those segments have started offering big discounts to entice buyers. 

The Bureau of Economic Analysis recently identified a number of different areas where spending has fallen off.  If you’re in the market for goods in one of these areas, you can likely find some pretty good bargains.  They include:

• Autos – Almost all of the automakers are hurting at the moment; and many are offering large incentives in order to move inventory.  A friend of mine recently picked up a $17,000 Ford pickup for just over $10,000.  Not bad.
• Boats – Considered by many to be a leisure expenditure, boat makers are facing not only an economic downturn, but the end of the boating season as well. 
• Furniture – Many people tend to buy new furniture when they move into a new home; and with housing in the dumps, furniture makers are feeling the pain. 
• Appliances – Like furniture, appliance manufacturers aren’t moving as many products due to the slowdown in housing.  In fact, Whirlpool just announced that they plan to layoff 5,000 workers.
• Clothing – Apparel purchases are down close to 12%; and retailers have been running sales like mad to try and make up for the shortfall in revenue.
• Vacations – According to the conference board, the number of families with plans to vacation in the next 6 months has fallen by 10.4%.  As a result, a number of resorts, casinos, and airlines have begun to run promotions.
• Dining – Off by about 4%, dining has not dried up as much as some other sectors of the economy.  However, places like restaurant.com have been offering deeper discounts on a more frequent basis.
• Sporting Equipment – Like boats, sporting equipment is considered by many to be a leisure expenditure.  Spending in this area is off by 6%
• Jewelry – Spending is off by 5.3%.  And with gold prices down and the dollar quickly strengthening against the euro, it may be a great time to buy that fine watch or other jewelry that you’ve had your eye on.

Next to homes, automobiles are typically the most expensive asset a family will own.  Here are 25 tips that you can use to help keep costs in check and make the most of your car ownership experience:

1. Consider The Full Cost of Vehicle Ownership – The cost of a car is much more than just the sticker price on the window.  When shopping, consider all of the factors that will come into play so you can get a true feel for how much a given car will cost to run.  These factors include: purchase price, depreciation, cost of insurance, fuel, and maintenance costs.  Kiplinger typically compiles and publishes a list of the best car values on an annual basis.
2. Buy Used – Automobiles tend to lose value over time; and most of that depreciation occurs during the first three to five years.  Let someone else pay for the cost of that depreciation by buying gently used, low mileage vehicles.
3. Check Comps on Used Cars – When shopping for used cars, check around to see what comparable cars cost.  Kelley Blue Book and Edmunds  both provide data on used car prices.  However, I’ve found that their prices tend to be low and may not accurately reflect regional differences in demand.  As a sanity check, I recommend also checking sale listings on sites such as cars.com, LemonFree or AutoTrader to get additional data to help you determine pricing.
4. Bargain Hard – When buying new, bear in mind that cars are commodities:  multiple car dealers are essentially offering the same product.  Use this to your advantage by price shopping nearby dealerships to determine who will offer you the best price.  When buying used, look for other used cars of similar condition, age and mileage to help provide you with leverage during negotiation.
5. Pay cash for cars, when possible – Taking a loan out to buy a car is somewhat akin to paying twice for the vehicle.  First, you suffer from the expense of depreciation, but with a loan, you’re also paying interest.  Do yourself a favor and pay cash, or put down a large down payment and then take out a loan for the remainder with the shortest term possible.
6. Drive Your Car Into the Ground – As I’ve mentioned previously, keeping a car a long time can be a very wise choice.  By stretching out the duration of your ownership, you drive down the monthly cost of depreciation.  In the end, keeping a car for 10 years or longer can help you saving thousands over purchasing automobiles more frequently.
7. Find a good mechanic – A good, independent mechanic can be worth their weight in gold.  Not only do they tend to be less expensive than dealers, but they can often steer you away from unneeded repairs.  The folks at Car Talk maintain database of mechanic reviews that can be quite useful.
8. Have a trusted mechanic look over the car – When buying a used car, have your mechanic look over the car before you buy it.  They can help steer you away from a poor buying decision and can advise you on maintenance that may be needed in the future.
9. Slow Down – When driving, you can save fuel simply by driving more slowly.  For example, slowing down from 75 to 65 can save, on average, 12 percent on gas.
10. Don’t Accelerate or Brake Quickly – Speeding up quickly and braking hard is not only hard on your vehicle, but it can use up fuel quickly as well.  In a test performed by Edmunds, they found that driving less aggressively saved, on average, 31% on fuel costs.
11. Get Rid of Unneeded Weight and Drag  - According to the guys at Car Talk, items that reduce your aerodynamic efficiency, like roof racks, can drop your fuel efficiency by 5 percent. If you're not using your roof rack, take it off. Also, each additional 100 pounds of weight will reduce your economy by 1 to 2 percent. So, if you've got unneeded stuff in your trunk or in the back of your pickup, get rid of it.
12. Avoid Driving During Rush Hour – Driving through stop and go traffic is highly inefficient.  If possible, time your trips so that you can avoid the traffic.
13. Share a Ride – If your commute is long, splitting the cost with someone can provide significant cost savings.
14. Leverage Public Transportation – Like sharing a ride, this isn’t a radical idea.  However, if public transportation is convenient, it can potentially save you a good deal of money and stress from not having to make the drive.
15. Telecommute – If your work situation allows it, ask whether you can work from home a day or more per week. Not only will you save money and fuel, but you can also skip shaving.
16. Minimize Idling – Idling is the equivalent of getting zero miles per gallon.  If you are going to be stationary for a minute or more, shut the engine off.
17. Use Higher Gears - Using the highest gear possible for a given speed will save you gas, as the engine turns more slowly at a given speed than if you were to use a lower gear. So, if you have a manual transmission, shift more quickly and work your way up the gears. As long as you have got torque to continue accelerating -- and as long as the engine isn't shuddering or pinging -- you will be fine.
18. Don’t Top Off Your Tank – It may be tempting to “top off your tank” by adding more fuel once the pump has cut off, but doing so may cause waste; and it really doesn’t do much good.
19. Stay On Top of Maintenance - Regular service can identify problems than can reduce the efficiency of your car. Items like sticky brake calipers, low transmission fluid and broken thermostats can reduce your car's ability to use gas efficiently. In addition, routine service can help rectify issues that may put your safety at risk.
20. Maintain Proper Tire Inflation – Under-inflated or over-inflated tires are not only a safety risk, but they can also impact your gas mileage.  Periodically check your tires to ensure proper inflation.
21. Keep Your Tires Aligned – Tires that are out of alignment can wear out prematurely and can also impact proper handling of the car.
22. Clean Your Vehicles At Home – For some folks, nothing is more enjoyable than cleaning your car.  For proof, visit a local Concourse Competition where car owners compete to see who has the best detailed car.  For the rest of us, though, a garden hose and a few rudimentary car cleaning tools can be less expensive than visit your local “wash-o-matic” car wash.
23. Group Errands – If you have to make a trip to run an errand, stop to consider if there are other things that you need while you’re in the area.  And if it makes sense, check Google Maps or a similar mapping tool to ensure you’re taking the best route.
24. Avoid Drive-Through Windows – Similar to my tip on idling, waiting at drive-thrus wastes gas.  If you have to do so, then consider stopping the engine.  Better yet, park and go inside.
25. Check Gas Prices Online - Before you fuel your vehicle, take a quick look at GasBuddy.com or the Gas Prices page at MSN Autos for the best price on gas in your local area.

General Motors recently rolled out their "Employee Discount to Everyone" program, which offers discounts as steep as $10,000 on Chevy Tahoes and $8,000 on Silverados, once you include cash-back incentives.  However, they are not the only automotive manufacturer to offer incentives. 

The slow-down in the economy, along with the need to clear out 2008 inventory has caused a perfect storm of sorts in the automotive space.  In addition to GM, other manufacturers like Mazda, Nissan, Hyundai, Ford, Dodge and Saturn are offering cash incentives on vehicles.  These range anywhere from $500 for a Hyundai Tiburon up to $5,000 on a Dodge Ram 1500 pickup.  And it is not just the large-gas guzzling SUVs that have large incentives in place:  Mitsubishi is offering $2,500 on the Eclipse and Mazda is offering $3,000 on the RX-8. In addition, you can get $1,000 back on a Ford Focus and $1,250 back on a Dodge Nitro.

Beyond the cash-back incentives, manufacturers are offering special interest rates on a number of vehicles:  Audi and Honda are both offering finance rates as low as 0.9%; and Infiniti is offering 0% financing on select models.

Sound interesting?  You can view additional incentives and rebates at Edmunds.com

• CBS News talks about where jobs can be found during the current downturn.
• Nouriel Roubini argues that the United States economy is at risk of imploding.
• The Motley Fool explains why current high yields make it a great time to consider buying dividend stocks.
• Gary Krakow argues that Netflix’s recent flubs create a real opportunity for Apple’s video product.
• CNN Money offers up 6 Fuel Sipping Alternatives to Hybrids.

And finally, Stephen Colbert explains why you should fear your iPhone:

Click to view the video after the jump...

A lot of people dream about owning that one special car…you know the one I’m talking about:  when you see it on the road, you can’t help but take a second look; and you can easily imagine yourself behind the wheel, zooming along some quiet, twisty mountain road.

For me, that “dream” car was a BMW Z3 roadster.  I bought it in April of 1997 for $33,100.  Ten years and nine months later, I sold it for $11,750.    On a monthly basis, the depreciation on the car cost me $165.50, which is about a third less than what it would currently cost to lease a new Honda Accord.  Not bad for what some consider to be a high-end automobile.

In a world where a “reasonable” loan payment on a new car might run $300-400, owning the Z3 was pretty cost-effective.  Let’s look at some of the factors that helped me keep the cost of ownership low on my dream car:

• Length of ownership – Simply put, the amount of time I owned the Z3 was what made it so economical.  As most people will point out, the depreciation is greatest in the first year and gradually abates over time.  And by the time I sold it the month-to-month depreciation was quite low.  Selling the car after 3 or 5 years would have increased my monthly cost of ownership substantially.
• Passionate enjoyment – After a few years of ownership, some people find that they’re “bored” with their current car and begin the process of looking around for a replacement vehicle.  This is an emotional response that you can work to overcome by purchasing only vehicles that you genuinely enjoy.  Even after 10 years, I found myself sneaking off on Sunday afternoons for quick jaunts through the Hill-Country; and had mixed feelings about selling the car, even though I knew from a rational perspective that it was for the best, given the rising potential for major mechanical problems.
• Matched to your lifestyle – Consider your life goals over the next few years before buying a car.  Having to trade out a convertible after two or three years because you’ve got a baby on the way can be a costly mistake.  Likewise, buying a Suburban when you’re about to become an empty-nester might not be the best choice.  By matching the car with your planned lifestyle, you can minimize the risk of having to make costly trades before it’s needed.
• Reliability – Cars can be difficult and costly if maintenance issues crop up on a frequent basis.  Before making a purchase decision based upon a passionate desire, take some time to rationally determine if the car will likely be trouble-free and easy to own.
• Keep it simple – When purchasing the car, steer clear of upgrades that may become maintenance issues later on down the road.  Upgraded tires can be costly to replace; and that $1500 DVD system will be useless to you if it breaks.
• Stay on top of maintenance – Once you buy the car, take care of it.  Staying on top of routine maintenance such as oil changes and brake-pad replacement will help prevent more costly repairs.  Likewise, keep the car clean and in good condition, as it will aid in resale value later on down the road.

And finally, you can apply these principals to any car to help keep your cost of ownership low.  I employed these same tactics on a little Nissan pickup that I purchased right out of college.  After more than 10 years of ownership, my cost of depreciation was less than $75 a month. 

With gas prices pushing $4 a gallon, it seems there that are many articles that have been written on how to save fuel and money. I had originally planned not to write on this topic. However, after running across this article on Lifehacker, it struck me that there is potentially advice out there that simply isn't cost-effective or even correct. So I decided to dig around and came up with a list of solid suggestions from reputable resources. (Read More...)