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TOYOTA 7Z?7fi Volkswagen TOYOTA "WHAT ARE YOU WAITING FOR STOP WHAT YOUR'RE DOING ID START DEALING Now's the time to stop in and make the deal of a lifetime on a new Toyota. We've got a great selection. The deals we're making will stop you in your tracks. Hurry! This is a limited time offer. So, stop what you're doing and stop OH WHATA FEELING! TOYOTA 85 CARGO VAN STOP AND DEAL ON ftUCKS! Bia savings on Toyota's best-selling 4x2s and Cargo vans. We've got p more models, more trucks, more Cargo Vans than ever -- and a sales goal we Ve got to meet. 85 STANDARD BED* 'Shown with optional rear bumper gJCgBSSSi • \ VSTM. LAKK \ ,v ItWWKTOW •LOW NORTHWEST HERALD Section C Friday, July 19, IMS P«9« 9 SMART MONEY Bruce Williams Don't scrimp on insurance DEAR BRUCE -- I was involved in a serious automobile accident some months ago. I was driving and hit a bridge abut­ ment. There were no other cars involved, but my passenger -- a good friend who was sitting in the front seal and was not wearing his seat belt -- is now paralyzed from the waist down. I am told he probably will nev­ er walk again. I carry a maximum of $100,000- per-person liability insurance. My insurance company has offered the $100,000, but his lawyer says they are going to continue to sue because they feel there is some liability on the part of the municipality, which is responsi­ ble for the road. What will happen to me if the judg­ ment is for more than $100,000? Will I have any responsibility? What can I do to protect my home and savings from this suit? -- C.L., CARSON CITY, NEV. DEAR C.L. -- Unfortunately, it's a bit late to lock the barn door. I sympathize sincerely.. Many people, like you, are driving around with pitifully inadequate insurance policies. As you can see, while $100,000 sounds like a great deal of money, it doesn't go very far in a situ­ ation where someone is paralyzed. Chances are that if the award is substantial, part of it will be against you, and part of it will be against the municipality. While the municipality will have the funds to pay, you will not. The plaintiff then will go after whatever assets you have acquired. Some can be protected through bank­ ruptcy, but others cannot You have learned an extremely bit­ ter lesson: It is absolutely essential to carry very substantial amounts of lia­ bility insurance in today's market* place. I would suggest at least $1 million. The sad fact is that even our best friends will sue, and juries are inclined to award huge amounts of 'motley. The only defense that I know of is to be very, very well insured. DEAR BRUCE -- We can't seem to make up our minds. We are buying a new car and can easily afford to pay cash, but many of our friends tell us that there are bene­ fits to financing. Can you explain the pluses and minuses of financing vs. paying cash? -- D.D., EAU CLAIR, WIS. DEAR D.D. -- The answer to your question lies in taxes and their conse­ quences. If you are in a very low tax bracket and would have to pay IS percent or 14 percent interest on the borrowed money for the automobile, you would be better advised to pay cash. It would be difficult to achieve a return of better than 14 percent if .you invested the money -- unless you took a considerable risk. If you're in the 50 percent tax bracket, it is equally obvious that you would better off if you financed the car and invested the money you had put aside for the car in tax-free vehi­ cles, such as municipal bonds. You would be paying 14 percent interest on the car loan, but 7 percent, or half that amount, would be picked up by the government in the form of a tax deduction. Your municipal bonds would be earning something tn the vicinity of 10 percent or 11 percent, and you would gain 3 percent to 4 per­ cent on the transaction. There is one additional benefit of financing if you finance through your dealer or his bank. If you have prob­ lems with the automobile that cannot be resolved, you have the right, under a Federal Trade Commission ruling, to withhold payment and put that money in escrow until the problems have been resolved. You do not have this right, however, if you finance the car through your own bank, where the dealer has no hand in the transaction. Essentially, taxes dictate whether you should pay cash or finance the car. DEAR BRUCE -- Last week, we had a minor accident with our auto­ mobile. There was no damage to the other party's car, but about $300 worth of damage was done to ours. We have a $200 deductible on our car. My husband says we're better off to pay the entire $300 ourselves. I say, "What's insurance for if we can't col­ lect when we have a legitimate loss?" Our two children are split evenly on this issue, too. How would you han­ dle a situation of this kind? -- R.T., MANCHESTER, N.H. DEAR R.T. -- Your husband is cor­ rect when he says it's not wise to sub­ mit a lot of small claims to insurance companies. Insurance companies are as conscious of the frequency or the number of claims as they are of their severity. Bnt you should notify your agent any time there is an automobile acci­ dent, for "information only." This Way, if a bodily injury claim pops up a year from now -- as can happen -- you are covered. (Otherwise, you may have given up your rights for cover­ age under your policy.) I would not, however, claim a $300 collision cost with a $200 deductible. I vote with your husband and whi­ chever of your children thinks you're better off to eat this one. Yes, it flies in the face of all logic. You are paying for insurance, so why not collect? Unfortunately, if you have too many small claims, the com­ pany probably will drop you. That's because their statistics indicate that the more accidents a person has. the more more likely he is to have others: Write to Bruce Williams in care of this newspaper. Volume of mail prohibits personal responses. Ques­ tions of general interest will be answered in this column. DEAR BRUCE -- My husband and I are taking a vacation in Europe this summer and would like to rent an automobile. Do you recommend that we rent a car ahead of time in the United States or rent the car in Europe when we get there? -- L.P., Milwaukee, Wis.'" DEAR L.P. -- If convenience is your primary concern, renting the car in this country is the way to travel. You can make all the arrangements in advance, and the car will be wait­ ing upon your arrival at a reasonably convenient pickup point. But if you're traveling on a limited budget, you'll probably do better rent­ ing the car yourself in Europe. That's because there are many smaU Euro­ pean car-rental companies that are not represented in this country, and you will probably be able to find a' better deal there than you will find in this country. There's one other factor that you may want to consider: If you are trav­ eling during the high season, you could have trouble finding a car once you get there. But I would still opt for on-site, renting. When I have traveled abroad, I have always managed to find a car on site, and I usually have saved a considerable amount of money by doing so. Interestingly, the opposite is often true in this country. If you make a reservation in advance, particularly during the slack periods (weekends and so forth), you will sometimes get a much better deal than you could get on-site. Write to Bruce Williams in care of this newspaper. Volume of mail rohibits personal responses. Ques- ons of general interest will be answered in this column. (NEWSPAPER ENTERPRISE ASSN.) P' ti TIPS ON Here are a few travel suggestions that may take v'ou far along the road to fun. *The most common mistake tour­ ists make is to try to see too much, too fast. Savor the areas you enjoy and don't try to see everything. *Although many foreign hotels include breakfast in.a night's rate, the nutritional and caloric value will vary. Carry fruit with you. and mineral water, and go easy on big lunches which can make vou drowsv. *Car rental rates in Europe are one of the best bargains around these days. In Germany, for exam­ ple, a VW Beetle is $49 a week, with unlimited mileage, for those flying Lufthansa Airlines. Picking up a Ford Fiesta in Holland costs $68 a week for those using KLM. and in Spain the Fiat 127 is $72 a week for those flying Iberia. These are all Cortell Group rates, and are guaranteed for all of 1985. * An advantage of having a car is that you have more freedom in where you dine. Lunch, for exam­ ple, can be less expensive and more nutritious if you make it into a pic­ nic. Shopping for food in a foreign country can be exciting, too. It gives you a chance to enter into the daily life of the people who live there. FREE BOOKLET For a free copy of "Driving Tips In Europe", write Paul, The Cortell Group, 3 East 54th Street, New York, N Y. 10022. CLASSIFIED--1-800--ADS-WORK 815455-4330 HOURS: Mon.Fri. 9-9 Sat. 9-5, Cloud Sun. Rt. 31 One Block North of Rt. 176 CRYSTAL LAKE AMC/JEEP/RENAULT MORE INVENTORY ON THE WAY! WE MUST MAKE ROOM! OVER INVOICE CLEARANCE! JEEPS! CHEROKEES! RENAULTS! AMC EAGLES! CJ7's STOCK NO. CAR PRICE 1612 95 JEEP CJ7, Soft Top, 5 Speed 9,932.80 1575 .95 JEEFCJ7, Hirdtop, .10,073.90 CHEROKEES 1735 .0 JEEP CHEROKEE, 4x44Door, Auto* Air 13399.49 1734........ . .95 JEEP CHEROKEE, 2 Dr., 4 Cyl., 5 Spent Air 12,939.49 154S ........;..95JEEPCHEROKEE,2DMCyl., Auto., Sunroof 10,906.45 1500 . .95 JEEP CHEROKEE,4 Dr., 4 Cyl., Auto., Chief Pkg 13,188.49 1494 95 J ĵEP CHEROKEEf 2 Dr., 4 Cyl., 4 Speed 11,733.49 1335 15 JEEP CHEROKEE, 2 Dr., 4Cyl., 5 Speed 10,919.49 1707 95 JEEPCHER0KEE,2Dr.,fCyl.,Auto.,Air,Chief Pty 14,917.49 1660 9 JEEP WAG0NEER LTD, Loidedl .19,612.45 RENAULTS 1701 ,....95ALLIANCE DUDfUSpoet 1.7 LHer .9492.79 1733 95 ALLIANCE, 2 DR., 4 Speed, 1A LHer 6390.79 1544 95 ALLIANCE, 4DR. SEDAN, Auto., ULiter 9434.79 1469 95 ALLIANCE L, 2 DR. SEDAN, Auto, 1.4 LHer 7092.79 1443 95ALLIANCE 4DR. SEDAN, Auto, 1.7 LHer 7450.75 1332 9S ALLIANCE 4 DR. SEDAN, Auto, 7476.79 1324 95ALLIANCE, 2 DR., 1.44 LHer, Auto, 9792.79 1463 95ALLIANCE CONVERT., 1.7LHer, Auto., Air, Fog Ughli 12,376.75 1457 « ALLIANCE CONVERT., 1.7 Liter, 5 Spd, P/W, Fog L*np, Cnrte* ...11,792.79 1514 95 ENCORE. M LHer, Auto. 7213.79 1330 « ENCORE 1.4 Liter, Auto. , 9949.75 1476 95 ENCORE, 1.7 LHer, 5 Speed, Sunroof 6961.79 1615 95 ENCORE, 1.75 LHer, 5Speed 6937.75 1456 .....95 ENCORE, 1.7 LHer, 5 Speed 7019.79 1459 ..i .95 ENCORE. 1.7 Liter. 5 Speed. AM/FMStoroe Sunroof 9169.75 1709 v. .95 ENCORE. 1.7 Liter, 5 Speed 6937.79 1729... 95 ENCORE. 14 Liter, 4 Speed 9293.79 1732 .« ENCORE, 1.7 Liter, Auto. 7tlt.7S NO NEGOTIATIONS! THESE PRICES ARE BOTTOMS S! I • ' -- -- -- --