In view of the soaring gas price (with the USA average nearing $4 a gallon) and its impact on the Memorial day travel, it is interesting that people are facing much harder times in Europe, where the fuel price in many countries has already exceeded $8 a gallon!

A major reason for this disparity is that many European countries put a much higher fuel tax burden on the motorists, including the so-called “value-added tax” (or VAT). For example, while federal and state taxes make up only about 11% of the gas price in USA, in France and UK this tax accounts for about 70%.

I decided to look up the current gas prices in some of the major countries around the world, and here is the list (data are taken from here).

After seeing some of the entries in this list, I feel lucky to be driving in America!

Based on the color of your car, you may be revealing more about yourself than you realize. This is what I just read in this somewhat old news. Unfortunately the story does not link to the original source of the scientific study, so there is an extra job for you if you would like to verify.

The study shows that your car color may reflect your personality to some degree. For example, the color silver, which over 30% of buyers choose, indicates wealth and prestige. (And I thought many choose silver because it comes standard, so they do not have to pay few hundred dollars extra on custom paint!)

If it is yellow, then you are probably idealistic and novelty loving. (When I see a yellow car on the road, I steer clear thinking the driver is advertising a big “L”, for learning, on the back. Don’t ask my why - I just do.)

Or, if you like green, you may have hysterical tendencies. (I mean come on! What about people “going green” in these days of global warming and environmental movement?)

The color red indicates lot of energy and zest, and the owner is likely to be fast mover. (No argument there - stay away from red cars on the freeway!)

And black car owners are supposedly aggressive, and have rebellious personality. (I don’t know about that, but I avoid black to keep the interior tolerable during summer afternoons.)

There is some speculation on whether auto insurance companies are using such psychoanalysis (psychobabble?) to set your premium. But it appears they cannot, even if they would like to. There is no easy way for them to know about your car color, unless they actually ask you about it while selling insurance (the color is not encoded in any of the 17 characters of the VIN). So, go ahead and zip around in your bright red (or yellow, or green) SUV.

Consumer Reports magazine recently suggested that driving the same car for at least 15 years can save you almost $31,000. That is a nice little sum to boost your retirement savings, or send your kid to a better college. The key points to note are:

1. In order to run for 15 years, or 225,000 miles (with the national average of 15,000 miles a year), you must buy a new car and maintain it regularly.
2. Many new cars, even with proper maintenance, do not survive 200,000 miles. The “good bets”, according to the article, are SUVs, pick-up trucks, and hybrids. This leaves out the significant segment of standard mid-sized sedans, a preferred choice of many average American families.
3. The price comparison is made with a Honda Civic EX bought every 5 years, accounting for depreciation, insurance and maintenance cost.

This is a great advice for those who do heavy driving. In an earlier post, I suggested a similar “buy and hold” strategy for new car buyers. But my main suggestion there is to get a reliable used car every 5 years (or after it dies on you, whichever is later). This is for those who have a relatively short time horizon with the same car, mainly because of changed circumstances in family, job and such other that cannot always be foreseen.

Below is a short sampling of Internet resources that will help you get through the process of buying a new or used car step-by-step:

1. Edmunds: A great site for information on all kinds of new and used cars, excellent reviews and how-to-buy guides.
2. Kelley Blue Book: An excellent place to look up used car prices, and also has lot of other information on both new and used cars.
3. CarBuyingTips: A definitive source for tips for buying new and used cars.
4. Samarins: Another source of car buying tips that is my favorite.
5. CARFAX: The place to visit for used car history.
6. Buying a used car: A Federal Trade Commission site offering facts for consumers.

(This is the last post of the 8-part series An investing-friendly car buying guide.)

You got your car. Congratulations! The car has at least two to three months of dealer warranty to cover for any problem in its early days (unless you bought it from a private seller, in which case you are on your own). Also, depending on the car’s age, it may still carry the remaining balance of the original factory warranty that you should be able to use.

They are good to have, but not enough, even nearly enough. You still need few additional years of comprehensive coverage for most common and some rare problems that can occur. Modern cars carry expensive parts and many automated features, all of which are prone to frequent failures and require costly repairs that can add up over long term.

The popular choice among companies offering extended warranty for used cars is Warranty Direct. At a cost of $1000 or thereabout, you can buy a multi-year coverage for your car that rivals the best factory warranty in the market, and even includes the coveted wear-and-tear coverage. The package also offers a number of useful services such as 24-hour emergency road assistance, hotel fare and rental reimbursement during the period of repair. Read here for a detailed discussion on extended warranty.

This is the end of this guide. Hope it helps you find your next car. Here are some more links on car buying tips and guides. Good luck and happy hunting!