With all good things there comes a price. This past Monday, The Canadian Press reported that America’s policy to replace foreign fuel with ethanol is raising food prices in Canada and the US.

According to Jeff Rubin, CIBC’s World Markets’ chief economist, food inflation is already well over 4% and will only rise as more corn is diverted to the production of ethanol. Already in the past two years, Rubin said, corn prices have risen over 60%.

This is a direct effect of the Bush administration’s renewable energy plan, part of which is to raise US ethanol production from 1 billion gallons in 2000 to 35 billion gallons in 2017. Indeed, $8 billion was subsidized to farmers to grow more corn and encourage ethanol producers to expand.

Funny thing, though, while many toot the benefits of ethanol for the environment, economy and car maintenance, Rubin claims that ethanol is economically-inefficient. To top it off, he suggests that even if the US government reaches its 35 billion gallon goal, it would reduce US gas consumption by only 6.5%!

Let’s not forget to factor into the equation that as more corn is diverted to fuel consumption, it affects the availability for human and animal food consumption. Not only for corn and corn-based products, but there will be a shortage in grains, fruits and vegetables as farmers push them aside to make room to cash in on corn.

Since the States is a major corn exporter, Canadian food prices are predicted to inflate along with the States: Rubin says food costs will rise at a rate of over 5% next year and 7% by 2009.

A Canadian study by the Library of Parliament conducted in March confirms Rubin’s belief that the costs of renewable energy are too great. The results suggested the investments in biofuels will barely make a dent in assuming fuel independency and hardly reduce greenhouse gas emissions.

However, these findings are being disputed by groups such as the Canadian Renewable Fuels Association which have reports and studies of their own with results that suggest otherwise. Among other benefits, they claim the use of biofuels will actually clean up the air in Canada.

It will be interesting to see how the Canadian government handles this conflicting evidence, especially since they have promised a $1.5 billion investment over 7 years to promote renewable fuels such as ethanol, and requires that Canadian gas consists of 5% renewable blends by 2010.

What are your thoughts on the subject?

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Health nuts are forever going on about the benefits of green juices. But what about this often talked about green juice for our new and used cars?

Ethanol is made from corn, domestically grown and processed. Fans of this environmentally-sound fuel substitute are calling corn the “grains of gold to fuel our future”.

It seems that Ethanol has consistently proven to outperform any other fuel in every test and in every way possible. Ethanol increases automobile performance, decreases dependency on foreign fuel, and keeps both the environment and engine parts clean.

These benefits and more have convinced the Indy Racing League to use only 100% Ethanol fuel in their cars.

Check out this video to learn more about the future of the fuel economy:

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The auto repair industry is notorious for overcharging customers for shoddy work, and considering that your new or used vehicle is one of your biggest investments, it is essential that you know the signs of a bad mechanic. Here are some things to look out for:

Lack of Certification.

Professional mechanics will display their certificates or wear patches to indicate that they have the proper automotive training. Know what associations grant certificates in your area and avoid mechanics that lack these credentials.

Lack of specialization

You should be wary of mechanics who offer both diagnostics and repair as they may lack the specialization to fix specific problems with your vehicle.

Verbal Estimate

Always have a written estimate! A dishonest mechanic may just give you a verbal estimate over the phone or over the counter. It is important to have a written estimate after the initial inspection before you approve of any work.

Cheap parts and labour

It is important to ask where the replacement parts are coming from. Cheap parts from K-Mart or other retail chains may not be sufficient and can result in you bringing the vehicle back for more work. Insist on using official parts from your vehicle’s manufacturer. You can ask to keep the old part being replaced if you want to show it to a second or third party to assure that it really needs replacing. An honest mechanic would certainly have no qualms about this. Also, overly cheap labour may suggest that the mechanic is untrained or inexperienced.

Distracting Deals

Watch out for ads for free brake pads, etc, as there may be high fees for other services.

Poor condition of the garage

A clear sign of a bad mechanic is the appearance of his garage. Dirty and disorderly garages should be avoided.

Not a people person?

Avoid dealing with irritable or impatient mechanics. Overtly demanding or brash mechanics may try and rush the work being done on your car to avoid accurately explaining its condition.

Unnecessary Work

Probably the most encountered problem in auto-repair. A mechanic may perform unnecessary tasks and replace parts that have been recently installed or do not need to be checked. For example, during an oil change, a mechanic may also want to change the air, fuel or transmission filters when really only the oil filter needs to be checked. It is important for drivers to know what needs to be done before going in to the garage.

The following videos also provide useful tips on avoiding rip-offs:

How to avoid getting ripped off by a mechanic

How to avoid getting ripped off by a mechanic if you’re a woman

Remember to consult your vehicle’s manual before heading into the shop to see what specifically needs to be done and if there is anything you can do personally to fix it. Research any of your car’s problems to get a basic idea of what work needs to be done and relatively how much it should cost. It is always best to be prepared! Finding a reliable and honest mechanic can take some time but with a little background knowledge as well as the recommendations of insurance companies, car dealers and basic word of mouth, you’ll track one down.

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Found a deal on a used car that’s just too good to be true? That’s because it probably is. Take a look at your second hand vehicle and see if you can spot any of these tell-tale signs that you’re used car is indeed a very sour lemon.

1. Odd movement. Problematic steering can lead to dangerous situations on the road.
2. Body damage. Rust and holes are difficult to repair and more often than not call for a full replacement of panels.
3. Bad Brakes. Squeaking, grinding and shaking are things to look out for.
4. Transmission Trouble. Any unusual noises when shifting are a clear indicator of problems.
5. Check the clutch. If it’s loose and noisy you may be in trouble
6. Oil in the tailpipe. Often associated with significant motor problems.
7. Erratic Exhaust. Is that your car violently coughing out black and blue smoke?
8. Broken electrical components. Problems with turn signals, the horn, or windshield wipers can indicate a major electrical problem with the car
9. Torn Interior. Rips in the upholstery and excessive wear and tear are sure signs that the car was poorly maintained by the previous owner.
10. A battle uphill. Rough and slow acceleration on a hill may indicate a weak engine.

When buying a used car, you should always take it for a test drive with these concerns in mind. You don’t want to be stuck on the road with a dirty, rusty and smoky disaster. For more helpful tips and strategies for buying a used vehicle, check out Tony Iorio’s Insider Car Secret’s article.

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The bar for automotive safety has been raised significantly for 2007, as The Insurance Institute for Highway Safety, an American non-profit organization funded by auto insurers, set rigorous new standards for their annual awards. According to CTV.ca, all 13 cars awarded featured electronic stability control (ESC), a relatively new feature that allows drivers to have more control of their vehicle while going through an emergency maneuver.

The institute’s research showed significant reductions in single-vehicle crashes for both cars and SUVs with ESC, with fatal crashes down 40% and fatal rollovers down 80%. The Institute made the addition of ESC mandatory for car manufacturers to qualify for the awards.

“The idea of tightening the criteria for the award is to encourage more vehicle safety improvements,” Institute president Adrian Lund said in a written statement.

“Last year a car could win with an acceptable rating in the rear test instead of the highest rating of good, and ESC wasn’t considered. Now it’s tougher to win, and some of the 2006 winners don’t meet the criteria for this year’s award because the manufacturers haven’t improved the head restraints from acceptable to good or don’t offer ESC.”

The Institute’s List:

Large car

Audi A6 (manufactured in December 2006 and later)

Midsize cars

Audi A4

Saab 9-3

Subaru Legacy (equipped with optional electronic stability control)

Minivans

Hyundai Entourage

Kia Sedona

Luxury SUVs

Mercedes M class

Volvo XC90

Midsize SUVs

Acura RDX

Honda Pilot

Subaru B9 Tribeca

Small SUVs

Honda CR-V

Subaru Forester (equipped with optional electronic stability control)

Following the Institute’s awards, several top manufacturers, including Ford, Hyundai, Daimler Chrysler, General Motors and Toyota, made press releases regarding the standardization of ESC, most speculating the addition of the technology for all 2008 and 2009 models.

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The notoriously desirable Lamborghini is not for the faint of heart and especially not for the faint of cash. Equipped with a 6.5 L V12 engine, the 2007 Lamborghini Murciélago LP640 can produce 633 bhp and can go from 0 to 100 km/hr in 3.4 seconds with a top speed reaching 340 km/h.

Complementing it’s incredible speed is its famously sleek design and scissor doors. With base costs standing around $300,000 US, getting behind the wheel of this supercar can be quite intimidating. For the adventurous (and somewhat loaded) spirits out there, here are some light-hearted tips for test driving the Lamborghini.

1. Eat a light lunch - Hair-pin turns at 110 km/h? You’re better off skipping McDonalds.
2. Wear your Sunday best - If your Sunday best is just Sunday OK, then rent a tux. The dealer may think you’re filming a Bond scene.
3. Rent out your nearest race track What’s the point in getting stuck in traffic when you can rev it up to 300 km/h? Well, I guess picking up chicks is always an option.
4. Park your POS a few blocks away from the dealership.If this isn’t possible, you can tell the dealer it’s a loaner.
5. Put on some loud tunes. It will deter you from imitating the sound of the engine.
6. Wear racing gloves. Sweaty palms on the steering wheel are a racing faux-pas.
7. Check your credit rating. No one is going to let you even breathe near the car without a credit check.
8. Bring lots of tissues. In case you break down when the dealer tells you the base price.
9. Buy several lottery tickets. See #8.
10. Consult your physician Driving a Lamborghini may leave you breathless with intense palpitations of the heart.

Well there you have it, ten things you should keep in mind if you want to cross the Lamborghini test-drive off your list of life goals. I recommend you get around to this before you try sky-diving. Godspeed!

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