belt tightening

[ocnblu]

Today it was announced by the owner of our dealership... a mandatory 10% pay cut for all employees, in a belt-tightening move. Morale has taken a nosedive. I figure I will lose income very near the amount of my truck payment per month. Our sales are down 30% from last year. It ain't looking good. I am considering dropping my gym membership (only $15/mo) and my land line telephone... along with selling my truck, for real, among other things, just to keep going. If this pay reduction doesn't save enough money for the company, what happens next scares me. I hope Wall Street speculators are happy, driving fuel prices through the roof this summer. The ripple effect of high fuel prices has chilled every aspect of our economy, and now it has hit home for me, hard.

[Satty]

I'm sorry 'blu, that really sucks.

We're really liking only having one car payment. Our insurance is significantly less, our combined fuel use hasn't changed a whole lot because I drive the Prius at times when I would have driven the Fusion in the past.

[usonia]

Dude, I am so sorry to hear this. A sudden drop in income like that is a huge adjustment. I hope things turn around soon.

[loki]

sorry to hear. don't make scapegoats out of people that can make money in ways you can't. i'm betting a lot of that money made has gone back into the stock market, somehow, and is what is helping keep us "up"...

but again, anything more than that 10% does sound scary. hopefully things have...nearly bottomed out, only cause of the signs of life.

[capriceman]

that is horrible blu. making adjustments like that is going to be really hard.

you might have to start selling your self on the corner to get some cash or start a marijuana farm...

all joking aside, im hoping for the best for you.

[daves87rs]

That sucks blu.

Trust me, I know how you feel. I'm struggling myself at the moment. It's not easy, that is for sure.

I hope things get better for you.....

[Oracle of Delphi]

Prayers go out to both of you.

[2005 EquinoxLS]

I remember a few years ago when the company that at the time owned us decided to give us a 5% pay cut. Me and a bunch of others quickly became 5% dumber and slower. Best thing to ever happen to us is that they decided they didnt want us any more and a bunch of our own people bought it back. We are a LOT better off and we right now are doing pretty well despite the poor economy. Time for a few changes in November. Thats all I am going to say about the political part of this matter. Good luck to you and your family.

Edited August 29, 2008 by 2005 EquinoxLS

[ZL-1]

I hope things get better soon, both for you and Dave.

[Camino LS6]

I hate hearing things like this.

The tough times hit me a few years ago, and the challenges are still huge. But, I am finally seeing the faint glimmer of light from the end of the tunnel. Don't worry too much, the only constant is change - so it won't be forever that things are this way.

[Drew Dowdell]

Cut everything you can now.

[Satty]

Landlines are pretty much useless, unless you have to use dial-up. Cell phones are far more useful, and if you already have one, a landline is just a useless expense.

Gym membership is also an unnecessary expense. Think about what you do at the gym, and there are probably free alternatives everywhere you look. Instead of running on a treadmill, jog around the neighborhood. If you're lifting weights, just clean the garage, its been my experience that most things in the garage are really freaking heavy.

Cut out fast food (assuming you eat fast food) because its expensive and probably one of the reasons for the gym membership.

Also, cheat on your taxes and write bad checks.

[A Horse With No Name]

Ditto on the 5-10% dumber and slower thing, although when the company I worked for a few years ago cut everyones pay they got 30% dumber and slower at the very least.

Cut everything you can now, like Oldsmoboi said. In one sense it doesn't matter who is elected in Novemeber, either one will have a full 8 years work even starting to undo the major wreck Bush has gotten us into.

Chris

[ocnblu]

Thanks, folks. I do like the gym because the weather in there is always the same, ya know? Yesterday, I dropped some disability insurance I was carrying at work, only $4.15/wk, but every little adjustment helps I guess. Packing my lunch should save a good bit, and instead of expensive, sodium-packed lunch meat, I can make chicken salad, tuna salad, PBJ, or meatloaf sandwiches. Spending about $8/day at the local deli adds up (I started walking there when gas prices spiked). Yeah, a landline phone is getting to be old-fashioned, I guess. My basic Verizon cellphone plan costs $47/mo, with the landline at about $31/mo.

The vehicle question is another story. I love my Sierra, but I must face facts. As a daily driver, it is somewhat wasteful, especially apparent now, suddenly. I've got to figure out what I should do with it. Sell it, trade it, or keep it. Trading it seems the worst option, keeping it next worst, with selling it coming out on top. My next issue is replacement transportation. I am scared of used vehicles. Maybe that is irrational to some of you, especially since I am in the car business, but that's just the way I am. I have seen some bad stuff come through. Anyway, I looked at a fairly basic '09 Cobalt coupe yesterday, MSRP $16,200. With discounts, I should be able to lessen my debt load (I owe about $15,500 on the truck yet), have a vehicle that saves a lot on gas, and has a warranty. I would expect a monthly payment about $100/mo less than the truck with minimal downpayment, while saving about $100/mo in gasoline and a bit on insurance.

Ugh, seems like I'll be "laboring" all Labor Day Weekend, thinking of ways to get my finances in order. I hope you guys have a less worrisome weekend than I'll have.

Edited August 30, 2008 by ocnblu

[GMTruckGuy74]

I've been facing the reality that I may not have my teaching job when this new school year ends. With cuts at Fort Dix & McGuire Air Force bases, less aid from the state of NJ to my school district, and enrollment dropping, word last May was that next summer won't be that great for many of the newer teachers at my school (less than 10 years of employment; this is #7 for me) and especially those that teach electives, like I do, and not core academic classes. My wonderful ( ) supervisor and building principal let me know in early June that my program could be consolidated with the other two exisiting programs and my job eliminated to save money - how nice is that to hear? All this after I finally sign my '08/'09 contract making the most I've ever made, and as an 11-month employee too (means I get paid year-round too). So I pretty much told the wife that April or May 2009 may bring bad news, which has come back to haunt me all sumer long from her. Even though I love teaching, I'm thinking of leaving this field for good if I lose my job again (I was part of a massive cut from another high school I worked at for two years; I don't like not knowing if I'll have a job or not every year).

Blu, I feel for you and know what it's like trying to make cut-backs. The wife and I began making changes & cuts this time last summer, and we still need to find more ways to cut spending and reduce our debt. God only knows what will happen if I lose my job next summer.

[CARBIZ]

You're in good company, 'bu. Changing dealerships and being in the wrong brand in the wrong area (who buys Chevies in an area of $1million dollar homes?) has hurt my bottom line. I knew '08 would be tough, but.....

I'm thinking of investing in some real estate, though:

CARBOARD_BOS.bmp

I figure if things get tough enough, I can move into one of these.

[Drew Dowdell]

Thanks, folks. I do like the gym because the weather in there is always the same, ya know? Yesterday, I dropped some disability insurance I was carrying at work, only $4.15/wk, but every little adjustment helps I guess. Packing my lunch should save a good bit, and instead of expensive, sodium-packed lunch meat, I can make chicken salad, tuna salad, PBJ, or meatloaf sandwiches. Spending about $8/day at the local deli adds up (I started walking there when gas prices spiked). Yeah, a landline phone is getting to be old-fashioned, I guess. My basic Verizon cellphone plan costs $47/mo, with the landline at about $31/mo.

The vehicle question is another story. I love my Sierra, but I must face facts. As a daily driver, it is somewhat wasteful, especially apparent now, suddenly. I've got to figure out what I should do with it. Sell it, trade it, or keep it. Trading it seems the worst option, keeping it next worst, with selling it coming out on top. My next issue is replacement transportation. I am scared of used vehicles. Maybe that is irrational to some of you, especially since I am in the car business, but that's just the way I am. I have seen some bad stuff come through. Anyway, I looked at a fairly basic '09 Cobalt coupe yesterday, MSRP $16,200. With discounts, I should be able to lessen my debt load (I owe about $15,500 on the truck yet), have a vehicle that saves a lot on gas, and has a warranty. I would expect a monthly payment about $100/mo less than the truck with minimal downpayment, while saving about $100/mo in gasoline and a bit on insurance.

Ugh, seems like I'll be "laboring" all Labor Day Weekend, thinking of ways to get my finances in order. I hope you guys have a less worrisome weekend than I'll have.

Things to look into cutting:

1. Cable? Do you really need the plan you're on? Are there lesser plans available? Would Dish be cheaper?

2. Credit cards? Do you carry any balances? Is your credit good where you can balance transfer to lower interest? DO NOT CANCEL ANY CARDS!!!!

3. Look at your heating and A/C usage? Would installing a timer thermostat help costs?

4. Do you eat out often?

5. Clothing/household goods? When you're at the store, ask yourself "Can I go another week without needing this item?" If the answer is yes, don't buy it. Clip coupons... it's like cutting out money.

6. Vehicle? Instead of going used, go really used. Enjoy the hobby of fixing up the car.

[A Horse With No Name]

I've been facing the reality that I may not have my teaching job when this new school year ends. With cuts at Fort Dix & McGuire Air Force bases, less aid from the state of NJ to my school district, and enrollment dropping, word last May was that next summer won't be that great for many of the newer teachers at my school (less than 10 years of employment; this is #7 for me) and especially those that teach electives, like I do, and not core academic classes. My wonderful ( ) supervisor and building principal let me know in early June that my program could be consolidated with the other two exisiting programs and my job eliminated to save money - how nice is that to hear? All this after I finally sign my '08/'09 contract making the most I've ever made, and as an 11-month employee too (means I get paid year-round too). So I pretty much told the wife that April or May 2009 may bring bad news, which has come back to haunt me all sumer long from her. Even though I love teaching, I'm thinking of leaving this field for good if I lose my job again (I was part of a massive cut from another high school I worked at for two years; I don't like not knowing if I'll have a job or not every year).

Blu, I feel for you and know what it's like trying to make cut-backs. The wife and I began making changes & cuts this time last summer, and we still need to find more ways to cut spending and reduce our debt. God only knows what will happen if I lose my job next summer.

I have a teaching degree and am working as an electrician. When you add everything up (coaching+grading+school activities+other duties) it just isn't worth it in my personal situation to teach.

My father in law was an excellent teacher, but spent 30 years of Sunday afternoons and evenings doing lesson plans and grading papaers. He's retired now and much more relaxed. He still tutors students though, as he loves teenagers.

Chris

[A Horse With No Name]

You're in good company, 'bu. Changing dealerships and being in the wrong brand in the wrong area (who buys Chevies in an area of $1million dollar homes?) has hurt my bottom line. I knew '08 would be tough, but.....

I'm thinking of investing in some real estate, though:

CARBOARD_BOS.bmp

I figure if things get tough enough, I can move into one of these.

I'll wire it for light and power,and your sister can inspect my work....

Chris

[A Horse With No Name]

Things to look into cutting:

I'll second this. There are also great used cars out there for $2500-$4500 if you go a little older.

Keep us posted, blu.

Chris

[Drew Dowdell]

Something else I suggest if your bank has online banking is signing up your checking account and all your credit cards at Mint.com. It's free and it will analyze your spending, giving you a better view of where your money is going. Once you see the charts and start to drill down, you find all sorts of places to save.

[Satty]

There is another option. Get a job flipping burgers at night, if you can do 5hrs a day, 5 days a week, at $6.50/hr, thats about $160/week before taxes. Then you really dont need the gym membership, or cable, or any of that other stuff, because you'll never have time to use it.

[A Horse With No Name]

There is another option. Get a job flipping burgers at night, if you can do 5hrs a day, 5 days a week, at $6.50/hr, thats about $160/week before taxes. Then you really dont need the gym membership, or cable, or any of that other stuff, because you'll never have time to use it.

I would at some point like to find a creative second job, but I can't see flipping burgers.

Chris

[Satty]

My first year of college, I made pretty good money detailing peoples cars. I already had all the supplies to clean my car with, so I just took a few bucks here and there to do other peoples. A couple hours on a Saturday morning could net a few hundred bucks.

[daves87rs]

A second job will happen..I'll just go part time where I am now, after I find a better job (one that is not cutting )

A new car is not an option for a while, unless one of the cars dies off...and the Balt and Cav are in good shape anyways...hopefully I can hold out until 2010 (If I can resist buying another car, that is. )

No cable for me, don't miss it either...

Still cutting back.....

[gm4life]

Best of luck trading your truck might not be the best move if you can't get out of it what it is worth. Best of luck and wishes too you guys. A few years ago I was afraid I would take a job cut and it all worked out.

[pow]

I know it's easy to say, but in the midst of all this, try not to get too stressed. I was listening to NPR the other day, and a doctor had correlated an increased number of visits with the growing number of foreclosures. He said that long-term stress from economic insecurity is similar to the stress felt while being robbed or attacked by a tiger, and that the amount of cortisol released could cause illness in the long run.

He suggested meditating, doing breathing exercises, yoga, tai chi, hiking, walking - whatever works for you. Health is more important than anything - most bankruptcies occur because of illness, not job loss - so don't compromise on insurance, food, or exercise. Best of luck!

If you have a consistent gym routine, I wouldn't cut that. Cook at home, and not only will you save money, you'll eat better, too.

Edited August 30, 2008 by empowah

[ocnblu]

Went to BPC dealership today, test drove that Silver Green G5 I told you guys about. Got a very apologetic $10,000 trade-in offer for my 2007 Sierra that had an MSRP of $26k+ in January of '07 when I factory-ordered it. Guy told me shortbed, regular cab 2WD trucks with uplevel trim do not sell, and that if it were a base model, longbed 4.3L I might have gotten MORE for it! He advised me to put it on AutoTrader.com to try to sell it. I guess all those claims by GM about the excellent resale value of their trucks are bull$h!. Yes, I know all fullsize trucks are a hard sell right now, but I thought that was a ridiculous offer.

[Robert Hall]

I was laid off from the startup I'd been at since April at the end of July... part of the nature of startups, very shaky with the finances and prone to sudden layoffs...that's why I've spent so much time hanging out here on the forums the last month...anyway, talked to a lot of recruiters and headhunters--the tech job market in metro Phoenix is weak compared to Denver and other more tech-centric metro areas..the good news is I received a few interviews, and got an offer for a 4 to 8 month contract downtown, city government related. And it pays $25/hr more than my salary at the startup did, so all is good..starting Sept 8th, back to cubicle land.

[Robert Hall]

Went to BPC dealership today, test drove that Silver Green G5 I told you guys about. Got a very apologetic $10,000 trade-in offer for my 2007 Sierra that had an MSRP of $26k+ in January of '07 when I factory-ordered it. Guy told me shortbed, regular cab 2WD trucks with uplevel trim do not sell, and that if it were a base model, longbed 4.3L I might have gotten MORE for it! He advised me to put it on AutoTrader.com to try to sell it. I guess all those claims by GM about the excellent resale value of their trucks are bull$h!. Yes, I know all fullsize trucks are a hard sell right now, but I thought that was a ridiculous offer.

The market for full size trucks and SUVs is completely dead right now... I've heard of one year old ones going for 30-40% of original price. And yours is a strange one--no one wants regular cabs. I wonder if the truck and SUV market will recover, or return to how it was 35 years ago--bought by people that really need them---commerical use, farmers, hunters/fishermen, people w/ trailers, boats, etc. instead of ordinarily commuter cars of suburbia as they became over the last 15 years or so.

Edited August 30, 2008 by moltar

[Satty]

Yeah, your truck is going to be a hard sell. Too nice to be a work truck, but no room for the kiddies if Mr. Home Depot decides to get a truck. My bro-in-law had a tough time trying to unload his F-150, so he gave up and kept it but rarely drives it. He has an old Accord that he paid cash for as a daily driver.

[Oracle of Delphi]

I was laid off from the startup I'd been at since April at the end of July... part of the nature of startups, very shaky with the finances and prone to sudden layoffs...that's why I've spent so much time hanging out here on the forums the last month...anyway, talked to a lot of recruiters and headhunters--the tech job market in metro Phoenix is weak compared to Denver and other more tech-centric metro areas..the good news is I received a few interviews, and got an offer for a 4 to 8 month contract downtown, city government related. And it pays $25/hr more than my salary at the startup did, so all is good..starting Sept 8th, back to cubicle land.

I start my new job September 1st, CPF picked it especially for me. So back to Germany I go. It's kind of like a giant GM game of Where's Waldo?

[daves87rs]

What about just keeping your truck, and picking up a cheap beater?

If it just to and from work, picking up an older Escort or Cavalier might not be too bad...

Plus you would save money on insurance with a multi car discount...

One of my parents nieghbor a few doors down picked up a 96 Cavalier 2dr with 113k for $950......

Everything works, and it was in good shape....

[ocnblu]

There is a green, '97ish Cavalier coupe at a local tiny used car lot. Maybe I'll go look at it, crawl under it and see if the bumper impact bars are disintegrated from rust (most of them are, offering no protection in an accident, the plastic bumper covers last forever, alas, the steel bars underneath were not protected from corrosion at all, one of my many used car fears).

[Intrepidation]

There is a green, '97ish Cavalier coupe at a local tiny used car lot. Maybe I'll go look at it, crawl under it and see if the bumper impact bars are disintegrated from rust (most of them are, offering no protection in an accident, the plastic bumper covers last forever, alas, the steel bars underneath were not protected from corrosion at all, one of my many used car fears).

It may be a good idea to just keep the truck and use it once in a while and go with a cheap car, you can get some pretty nice stuff for not too much money. :wink:

Although I personally wouldn't bother with an overpriced used car dealer unless it was a certified pre-owned one.

As for the Cavi, if the impact bars are rusted (I dunno how big of a problem it is with J-bodies) you could alwasy bring that truck to the junkyard on a Saturday, find a Caviler with good bars, and spend an hour or so taking them off for $50 or so. I had to get a new one for the Prizm after the wreck, and it wasn't hard besides that one stupid nut that I didn't have enough leverage to get off. Luckily one of the guys at the yard was nice enough to you his monster ratchet.

[Satty]

If you can afford the payments, keep the truck, if you cant, you may have to eat it on trade-in. Just depends on the situation.

[daves87rs]

It may be a good idea to just keep the truck and use it once in a while and go with a cheap car, you can get some pretty nice stuff for not too much money. :wink:

Although I personally wouldn't bother with an overpriced used car dealer unless it was a certified pre-owned one.

As for the Cavi, if the impact bars are rusted (I dunno how big of a problem it is with J-bodies) you could alwasy bring that truck to the junkyard on a Saturday, find a Caviler with good bars, and spend an hour or so taking them off for $50 or so. I had to get a new one for the Prizm after the wreck, and it wasn't hard besides that one stupid nut that I didn't have enough leverage to get off. Luckily one of the guys at the yard was nice enough to you his monster ratchet.

I agree with DF...

Parts for the J bodies come pretty cheap at the yards...

And parts will work for many of the years too.....

Just make sure (since it is a coupe)-and make sure the doors and the panel behind are not too rusty...A little rust is fine (easy fix), but when they really start to rust...the really rust...

The 2.2 is a good engine, slow as balls, but very trusty little engine....

[Croc]

Even brand new, those J-bodies offered little in the way of crash protection.

[Drew Dowdell]

Went to BPC dealership today, test drove that Silver Green G5 I told you guys about. Got a very apologetic $10,000 trade-in offer for my 2007 Sierra that had an MSRP of $26k+ in January of '07 when I factory-ordered it. Guy told me shortbed, regular cab 2WD trucks with uplevel trim do not sell, and that if it were a base model, longbed 4.3L I might have gotten MORE for it! He advised me to put it on AutoTrader.com to try to sell it. I guess all those claims by GM about the excellent resale value of their trucks are bull$h!. Yes, I know all fullsize trucks are a hard sell right now, but I thought that was a ridiculous offer.

That may still very well be "best" resale. "Best" is a relative term. Remember Fly posting about a 2 year old Excursion with 13k miles offered at $8,500 at auction and ending with zero bids?

[ocnblu]

Driving home from the movies this evening, I realized once again... God, I love that truck. It's so good looking, comfortable, versatile... and near new, with only 20k miles. I am going to see exactly what my paycheck looks like when this cut takes effect before I do something that drastic. I will NOT take less than I owe on it, if it comes to me absolutely having to sell it.

Meantime I will pack my lunch and disconnect my landline. The jury's still out on the gym membership.

[usonia]

>>Driving home from the movies this evening...

What'd you see, anything good?

[ocnblu]

Well, my cousin is in town, it was her B-day this past week, and she's a movie nut of the highest order. We saw Vin Diesel in Babylon AD. It was pretty good, kinda cool. Implausible as heck, but interesting visually.

[Robert Hall]

Well, my cousin is in town, it was her B-day this past week, and she's a movie nut of the highest order. We saw Vin Diesel in Babylon AD. It was pretty good, kinda cool. Implausible as heck, but interesting visually.

I wondered about that movie..haven't seen any reviews of it..the trailers kinda reminded me of The Fifth Element or Johnny Neumonic..

[daves87rs]

Even brand new, those J-bodies offered little in the way of crash protection.

Brother was nailed by an F 250 and walked away (2004 Cav)

Neighbor was in a five car accident-both car was hit from every side-hit guardrail-and she walked away a little beat up and a broken wrist (2001 Sunfire)

I never really believed too much in those crash ratings....it pretty much crushes like nay other small car.....

[usonia]

Well, my cousin is in town, it was her B-day this past week, and she's a movie nut of the highest order. We saw Vin Diesel in Babylon AD. It was pretty good, kinda cool. Implausible as heck, but interesting visually.

I was really curious about this movie too and I don't typically pay attention the critics but it was almost universally panned on rottentomatoes.com. So, I went to see Hamlet 2 instead. It wasn't great, but there were some good laughs and it redeemed itself with a good ending.

[saturnd00d]

ocnblu and Dave87rs...

I honestly hate to hear of hard times for anyone. I myself am going through it as well. Part of that, though, is my fault. I just bought an 08 Vue to replace to of my vehicles. I had an 04 Saturn ION (modded but still great on gas) and my dad's 98 Chevy C1500 after he passed away. The truck honestly hurt me just sitting there. It gave us virtually zero major problems, but the cost of insuring both, gas for both, maintenance for both, on top of a new mortgage, and new addition to the stable, really made for some hard times. My wife is trying desperately to find a full-time job that pays anything more than minimum wage as an effective supplementary income and as well to try to save enough money to go back to school. I work in a hospital, and am thankful that my job is relatively stable for the next couple years.

But I won't lie, times are tough. Our house isn't a big one, but we couldn't put down 20% so our mortgage is considered high-risk. On top of that, I needed a larger vehicle than my ION, but something that didn't drink gas like the truck. Hence, the Vue. I got lucky selling the truck though, I tried autotrader and didn't even get a callback for a month's worth of advertising. What got the sale was a "for sale sign" that I purchased at the local convenience store for $3.50. Happened to be a guy that lives 12 minutes away from me who passes my house to goto work. He is a handyman who happens to do side-jobs on the weekends for extra cash. Saw the truck, came in to talk with me one day before work, and gave me $8,800 for it (CDN funds). I was asking $9,200 and that was highballing it too.

He actually shook my hand, and thanked me several times because it was "exactly what he was looking for". He couldn't do much work on the weekends as of lately, because his rusted out Ford Bronco was starting to give him major intermittent issues. This was 3 and a half months ago (in the wake of the soaring prices). You might be able to find someone like that. Would never hurt to try. I would say to try with just the sign in your front windshield, because you never know who is going to pass by and notice it. Autotrader, on the other hand, can get expensive, and the people on there are more than likely, going to compare your truck to several others based on price alone. Visually seeing it in person though may spark that "gotta have it" impulse buy.

Good luck to both of you. I hope everything works out. Just keep your head up high, and things will improve. They always do.

[Intrepidation]

Brother was nailed by an F 250 and walked away (2004 Cav)

Neighbor was in a five car accident-both car was hit from every side-hit guardrail-and she walked away a little beat up and a broken wrist (2001 Sunfire)

I never really believed too much in those crash ratings....it pretty much crushes like nay other small car.....

Friend of mine has a black 4-door Cavalier which was rear ended by a Mercury Villager. The Villager was totaled and all he needed was a new bumper (mind you the bumper was only misaligned and scratched not ripped off)...and the exhaust tip was slightly bent. Since the van was at fault he got a whole new paint job.

I still wouldn't want one, but they seem pretty tough.

Edited September 1, 2008 by Dodgefan

[ocnblu]

The J bodies were horrible for looking great from the outside after a rear end hit, but hiding all sorts of frame rail/trunk floor damage.

[ocnblu]

I forgot the mention the dopey salesman, as he was writing up my "trade-in sheet", said, "That's a GMC Sienna, right?" I almost punched him in the nose right then and there. Then he asked me if it was a "work truck" package... anyone with half an eye open can see it ain't no W/T.

[Satty]

Does GM still put the big W/T sticker on work trucks?