Ownership Experience

6 Year-End Car Buying Tips

December 28, 2019 by admin 1 Comment

2019 Volvo V60

The best opportunities to purchase a new vehicle is during a manufacturer’s transition times, including model changeover, the end of a generational build, and as the calendar moves from December to January. The following six tips can save you money, enabling you to drive off in a new ride with your budget intact.

1. End of Model Year

Car manufacturers used to make the model year transition in October, by updating its full product line across the board. All-new models were timed to release in the fall, putting big pressure on manufacturers to get cars to dealers in time for seasonal advertising campaigns.

These days, new models come out throughout the year, allowing manufacturers to stagger releases. When a new model debuts, manufacturers typically place incentives on previous model year vehicles to help clear dealer inventories. Consumers should learn when the transition is being made and follow the manufacturer’s website to discover what incentives — including rebates and special financing – are in place.

2. Old Design Versus New Design

Car manufacturers usually keep a model for five or six years before a complete redesign is made. In the interim, minor annual refreshes are made along with a mid-product-cycle update that is typically accomplished by the fourth year.

A complete design change signifies a generation shift. Older vehicles are routinely discounted as manufacturers seek to clear out inventory. Discounts may be deeper than with the traditional model year change-over as automakers begin to promote the new model that will cost consumers close to the sticker price.

The all-new Jeep Gladiator (l) and the Jeep Wrangler (r).

3. Black Friday Shopping

There are times during the year when car dealers see a plunge in showroom traffic. One of those days is the Friday after Thanksgiving, the traditional start of the Christmas shopping season. It is called Black Friday, what used to mark the day when merchants began to make a profit for the year, which is represented by going from red ink to black ink on financial statements.

Black Friday has another meaning for car dealers: a dearth of car-buying customers. With fewer customers in dealer showrooms throughout Thanksgiving weekend and with the month about to close, consumers may find dealers are eager to negotiate to meet their quotas. Meeting those quotas means receiving more money from manufacturers for reaching their sales goals, something that would not happen if consumers stayed busy buying Christmas presents, not new cars.

4. From Christmas to the New Year

Just as Black Friday may present a special opportunity to strike a deal, the period between Christmas and the New Year can also be a good time to negotiate a new vehicle purchase. Such deals may last a few days into the new year as dealers and manufacturers will close their books no later than Jan. 4.

Car manufacturers are obsessed with market share and use these sales numbers for marketing promotion. As the year fades, automakers know which models or brands stand the chance of finishing on top and may promote these accordingly. For example, Mercedes-Benz, BMW, and Lexus have an annual battle for luxury vehicle leadership. Year-end discounting usually begins in Nov. and lasts until early Jan. You’ll also find financing and leasing deals.

5. Arranging Your Own Financing

You are in a much better negotiating position when buying a new car if you offer a 100-percent cash (all-cash) transaction. However, most of us cannot afford a heavy cash outlay, instead, we rely on loan financing or a lease to swing our deals. Car dealers offer financing, usually through the manufacturer’s financing arm as well as from banks.

Often, new cars come with incentives allowing buyers to choose between cashback or a low-rate loan. You can also arrange your own financing before you shop for a car. In this case, when you’re ready to buy, give the dealer your loan information and ask to have the rebate applied to your total. Credit unions typically offer the lowest financing rates, making it worth your while to come in with your own loan and take the rebate.

6. Rebates and Dealer Incentives

We already looked at rebates and financing, but there are other rebates available to consumers. Manufacturers like to woo customers with various enticements, but these special offers are generally not publicized. It pays to do your homework by studying the manufacturer’s website.

For example, the Toyota College Graduate Finance Program provides a $500 rebate on select Toyota models and sweetens that offer by writing loans with no money down and deferring the first payment for 90 days. Its program is open to recent college graduates, people that have secured a college degree within the past two years.

Also, the Ford Motor Company awards $500 bonus cash on most Ford and Lincoln products to active duty and recently retired military personnel and their families through its Military Appreciation program. Here, military retirees have up to 24 months after leaving service (separation) to remain eligible for the rebate.

Other manufacturers usually provide similar rebates and may also offer discounts to first responders, credit union members, suppliers, and their employees. These extra incentives are typically on top of other offers and may be applied to the purchase price of the new vehicle.

2019 Chevrolet Silverado LT

Saving Money

It isn’t that difficult to save money on your new vehicle purchase. Study the manufacturer’s website, visit local dealer sites, and keep in mind the special offers listed here when negotiating your price. It is possible to save thousands of dollars, especially on well-equipped models. Don’t allow cash offers to fall to the wayside by not having the dealer apply what’s available to you.

See Also — Care Tips for Your New Vehicle

What Everyone Ought to Know About Selling a Car

October 25, 2019 by admin 1 Comment

Supply photos from every angle when marketing your car.

Selling a car is a slam dunk, right? Once you put your car on the market, the buyers will line up from all over. After a few test drives and perhaps competition between buyers, you’ll close the deal and reap a handsome profit. Keep dreaming.

On the surface, selling a car privately sounds likes a terrific idea. But it often comes with all sorts of hassles, including shoppers without a desire to make an offer or the funds available to finalize the purchase. And then there is the matter of your time, which explains in part why many people prefer to sell to their dealer or make a trade, even when they know they could get a better deal through a private sale. If you insist on trying a private sale, we’ll examine what everyone ought to know about selling a car.

1. Get your car ready to show.

Sell your car “as is” and your offers will reflect its condition. It always pays to spend some time making it look market-ready.

Wash and detail your car, adding a fresh coat of wax to restore it to its former luster. You can handle small scrapes and scratches, and quite possibly remove a few dings. Clean out the interior and trunk, vacuuming or wiping down seats, carpets and other surfaces. The same attention you paid to the exterior should apply to the interior. Replace burnt-out bulbs and fuses, and ensure the audio and navigations systems are in working order.

Handle all maintenance due items, most importantly the motor oil and filter. Ensure that the battery, hoses, belts, brakes, suspension, and other components are in top order. Provide copies of your repair invoices. Offer a CARFAX vehicle history report to demonstrate to buyers that your car is in the best condition.

Prep your vehicle to make it more appealing to shoppers.

2. Survey the market.

So, how is the car market where you live? Specifically, what kind of demand do you see for your type of vehicle?

For example, if you live in a warm climate and own a convertible, demand should be strong. On the other hand, if you have a four-wheel-drive vehicle and live in Florida, chances are demand will be quite low. Review local ads, such as on Craigslist to gauge interest in your type of vehicle.

3. Know your price range.

There are online tools to help you determine the price for your vehicle. Typically, you’ll find two sets of prices — dealer and private party. Review both to understand the spread between the two. Private party prices are always higher than dealer prices.

The more details you supply about a car, the better. This means entering not just the make, model and model year of the vehicle, but its mileage, trim level, and special features or options. Features such as navigation and driver-assist technologies mean you can fetch more for your car.

First impressions are everything when marketing a car.

4. Market your car.

Now that you know prices, you need to determine your bottom number for selling your car. This isn’t a number you’ll display or share with shoppers — it is the price you’re willing to accept.

Pricing can be tricky, but the 5 to 10 percent added to your bottom price gives you some wiggle room when negotiating. Further, when you set your price, avoid a round number such as $10,000. Choose $9,995 instead as it sounds better to shoppers. You’ve noticed that retailers use a similar pricing strategy. The reason? Because it works!

As for advertising, newspapers are a thing of the past. Online services, such as Craigslist and eBay are popular places to market a vehicle. It is important to understand the terms of use for any online site, including whatever fees or commissions may be charged. Be thorough with your ad, offering complete details about the car along with numerous interior, exterior, under the hood and trunk or storage area shots. Review other ads for ideas on how to set yours.

5. Show your vehicle.

Now for the hard part: show your vehicle. But somewhere between running your ad and showing your vehicle, place at least one “for sale” sign inside the car. At a minimum, supply a contact number, but be forewarned: you’ll get your share of spam calls. Perhaps securing a temporary phone number would be the best approach here.

Strategically place your vehicle so people will see it. Unless, of course, you don’t want people knocking on your door at all hours if it is sitting on your front lawn.

When an individual inquires about the car, engage them in a conversation to determine what they’re looking for. If you’re not comfortable with this individual, go no further. Always meet in a public place and when it comes to test driving the vehicle ask for a valid driver’s license and ride with them. Explain the features and answer their questions. Never give your keys to a stranger as this may be the last time you see your car.

When all is said and done, you’re ready to conclude your deal.

6. Let’s make a deal.

Only negotiate with buyers who show genuine interest in the vehicle. Explain your terms upfront — cash or a certified check. Ask them if they have the means to close the deal TODAY. Not tomorrow or some other time, but today. Let them know that the first buyer who meets your price gets the car.

You can expect negotiating to commence at once with potential buyers presenting their offer, which may be far lower than your asking price. If you feel that you’re being lowballed, say so. If their offer is within an acceptable range, counter with your own price. If both parties give a little, then a deal should be reached. The idea here is to provide a win for both — you’ll get at least your bottom dollar amount and the buyer saved money off the sticker price.

If the buyer insists on having his mechanic inspect the vehicle as a condition of the sale and you’re okay with that, be careful: the mechanic may discover a problem and the buyer may counter with a lower price, costing you money if you agree. If you’re not okay with the inspection, show copies of the repair records and the CARFAX report. Explain that the vehicle is being sold “as is” without room for further negotiation.

Accept cash or a certified check, ensuring the latter clears before signing and handing over the title to the buyer. Clean out the car (including DMV and insurance paperwork), remove the tags and hand the keys to the new owner. Cancel your ads.

7. Wrapping up.

The cash is good or the check has cleared and everything is done, right? No, not quite.

You may need to take care of certain Department of Motor Vehicle (DMV) business, depending on where you live. If you have the vehicle’s tags (license plates), return these to the DMV. Make sure the registration is canceled and all taxes and fees settled. Get a receipt and keep it for your records.

Lastly, contact your insurance company to ensure coverage is discontinued. This is also an ideal time to review your policy to ensure it meets your current needs.

Final Thoughts

What if you’re not able to find a buyer for your car or are tired of dealing with customers? If you already struck a deal for a new car with your dealer, they may be interested in purchasing it. If not, there are other car buying services that may be interested, allowing you to quickly put this experience behind you.

See Also — Used Cars: Where the Bargains Are

The second, third, and fourth photos are courtesy of Pixabay.

How to Get the Most Auto Insurance Coverage for the Money

October 4, 2019 by admin Leave a Comment

Auto insurance will cost you, but savings can be had.

The cost of auto insurance puts a huge dent in some wallets. Drivers in Michigan, Louisiana, and Oklahoma pay far above the national average while drivers in Maine pay the least.[1] Among auto insurers, rates can vary widely, and consumers don’t always know why they’re being charged so much.

You can’t do much about the state where you live—besides moving—but you can get the most coverage for your money by keeping some things in mind as you shop for auto insurance.

Credit Matters

Your credit history reflects on what you pay for auto insurance. Insurers develop an “insurance-risk score” or “insurance credit scoring” based in part on your credit score, theorizing that you’re less likely to file a claim if you have good credit.[2] Your credit score is easily available to you, but your insurance score is not (typically, you’ll have to visit a credit monitoring service such as TransUnion to find it, not your insurance company). In any case, if your credit score is high, then your insurance rates should reflect your insurability.

Personal Demographics

Your marital status, gender, age and the city where you live are factors in determining insurance premiums. The last category can make a big difference in what you pay—if your zip code or street address is coded wrong, you might be charged a rate far above what you should be paying.[3] Therefore, it is important to review your declarations page for accuracy.

What You Drive

Before purchasing that turbocharged sports coupe, contact your auto insurer to get a quote for car insurance. Indeed, your agent can tell you which cars cost the most to insure in any given vehicle segment. Engine size isn’t the only consideration: insurers charge more for cars that don’t hold up as well in an accident. They may also raise rates for cars without recent safety features including side curtain airbags, rearview cameras, and lane departure warning.[4]

Your Driving Record

If you have tickets, then you may have points on your driving record. Points send a signal to auto insurers to raise your rates based on an algorithm set by each insurer. Your insurer won’t tell you how that works, but you can contact your Department of Motor Vehicles to obtain your driving record. If old points have not been removed from your record or points have been wrongly assigned to your record, you can have the DMV make the correction and forward a copy of your updated record to your insurer.[5]

Seek Discounts

Insurance companies offer discounts for drivers who drive just a few thousand miles in one year. Further, discounts are offered if you insure your auto and home with the same company, have been with that company for several years, are a safe driver or have recently completed a driver’s training course. Ask your insurance agent about available discounts—information that’s not always readily volunteered.[6]

Shop Around

Get at least three price quotes from different insurers with similar coverage to make comparisons easier. You may be able to save money by dealing directly with a company over the phone or via the Internet instead of through an insurance agent.

If you belong to an alumni association, a business group or some other association, a group plan can offer additional discounts. Moreover, ask your employer if the company offers a group plan for its employees and their families.

Save Money

It pays to review your auto insurance policy annually as it may reveal overlooked discounts or even mistakes that are costing you money. Never assume your policy reflects your current information as your address may have changed, drivers may have been added or dropped, or other factors may influence what you pay.

Sources

[1] Insure.com: Car insurance rates by state, 2019 edition — https://www.insure.com/car-insurance/car-insurance-rates.html

[2] The Balance: What is Insurance Credit Scoring? https://www.thebalance.com/what-is-insurance-credit-scoring-4156729

[3] The New York Times: Your Neighbor in an Adjacent ZIP Code May Pay Less for Car Insurance — https://www.nytimes.com/2018/10/19/your-money/car-insurance-neighbor-zip-code.html

[4] Insurance Information Institute: What determines the price of an auto insurance policy? — https://www.iii.org/article/what-determines-price-my-auto-insurance-policy

[5] North Carolina Department of Motor Vehicles: Driving Records — https://www.ncdot.gov/dmv/offices-services/records-reports/Pages/driving-records.aspx

[6] Allstate: 6 Car Insurance Discounts That May Save You Money — https://www.allstate.com/tr/car-insurance/tips-for-car-insurance-discounts.aspx

Image by 3D Animation Production Company from Pixabay

How to Prepare Your Car for a
Long, Hot Summer

July 22, 2019 by admin 1 Comment

Extreme weather can take its toll on your car, making it difficult to get it started on cold mornings and overheating on the hottest days. Summer throws heat, dust, and traffic tie-ups your way, increasing the likelihood that you will face a breakdown. The following preventive maintenance tips can keep your car running smoothly throughout the next heatwave.

Excess corrosion can adversely impact the battery.

Check the Battery

An old battery may not survive the summer. If your car’s battery is near the end of its useful life, then replace it. Older batteries simply cannot provide a full charge and won’t be able to handle the heavy electric demands placed on it by your climate control system, navigation, audio system, and lights. Newer batteries can also fail if there is a build-up of corrosion. You can safely remove battery corrosion yourself, a job best handled with baking soda, a few hand tools, and petroleum jelly.

Change Your Fluids

Most drivers will change their oil twice annually or at least as often as the intervals outlined in their owner’s manual. Timing your oil changes to take place before extreme temperatures kick in is a sensible approach to preventive maintenance. Your owner’s manual will list the right oil grade for your car. You will notice some differences in viscosity between winter and summer oils, the latter permitting a slightly thicker oil. Where 5W30 oil may be needed in the winter, 10W30 oil may be ideal for the summer. Change your oil fluids at this time and do the same for your brake, power steering, and transmission fluids.

Examine Belts and Hoses

A broken belt or a cracked hose can leave you stranded. Most of the time you can prevent such breakdowns by examining belts and hoses periodically. Visible signs of cracking, fraying, and bulging are among the warnings telling you that something needs to be replaced. Other signs are not so apparent and require a more thorough examination. For belts, you can check for tightness when the engine is turned off. Simply press down on each belt with your thumb and if you observe that it gives more than one-quarter of an inch, it should be replaced.

Belts and hoses are subject to wear and tear.

For hoses, particularly the vacuum hose, you will want to examine it when the car is running. Lift and secure the hood, and listen for a hissing noise. Avoid any moving parts by carefully moving your hand across the surface of the hose to discover its leak. Your fingers will be pulled against the hose if a leak is apparent and the car’s idle may change as you cover the hole. Replace as needed.

Check Climate and Coolant Systems

Your climate control system cools your car’s cabin. Your coolant system keeps your engine running smoothly, sending cooling fluids through the engine block to prevent overheating. Both systems should be examined prior to your next summer road trip. If you had your coolant replaced within the past year, you can top off a cooled down radiator with a 50:50 mixture of coolant and water. Otherwise, replace coolant that has been in place for at least a year.

You can purchase a radiator flush kit and do the job yourself or let your mechanic handle it. Either way, it isn’t a job you want to put off as a blown engine gasket may be the price you will have to pay for your neglect. Your climate control system contains refrigerant and this fluid can leak, forcing your compressor to work harder. That puts a strain on your engine and, like the coolant system, it is a key contributor to summer breakdowns. Your mechanic can pressure test the system, diagnose problems and replenish the refrigerant.

Take Note of the Rubber

Excessive heat causes the rubber to lose its elasticity, wearing out your wiper blades faster. You want a good pair of blades in place for your summer drive and replacing them with silicone rubber provides improved visibility and durability. Your tires are also made from rubber and are subject to aging as well as wear and tear.

Excessive heat can magnify tire problems causing tires to flex more. Cracks, rot or other problems can quickly lead to tire failure. Keep your tires inflated to the proper level, rotate them every 6,000 miles, and replace your worn-out rubber.

As summer’s heat settles in, your car should be ready to handle the worst weather conditions. Ensure that your headlights, turn signal lights, and tail lights are in working order too, replacing burnt-out bulbs as needed.

See Also — 6 Points About Buying a Used Car

How to Make a Trade In for a New Lease

July 15, 2019 by admin 1 Comment

Think “trade in” and your mind probably equates that action with purchasing a new car. Although the majority of trade-ins are for a purchase — new or used — you can also trade in your vehicle toward a new car lease.

Just as a trade in can function as a down payment for a purchase, the equity in your car may also reduce your monthly lease payments. Most certainly, there are some relevant points you should consider before you offer your current vehicle as a down payment for a new car lease.

Lease Fundamentals

There are two matters to clear up first about new car leasing. We’ll do this before we examine the subject further. One important aside: contact an insurer, such as Allstate Insurance, to receive a quote on your new vehicle. Your insurance costs are one aspect of the ownership experience.

First, leasing is not the same as car renting. Leasing is based on the vehicle’s value when you sign the contract; it estimates the vehicle’s residual value at contract end. The most significant factor here is depreciation, representing the declining value of new cars over two, three or four or more years.

Car renting is typically a short-term business contract between you and a car rental company. You agree to borrow a car for a certain amount of days or weeks and then you return it. The rental rate is based largely on the rental company’s daily rate, insurance surcharges, and mileage overage fees.

Second, with a lease, you never own the vehicle, unless you opt to purchase it as stipulated in the contract. There are two types of car leases available: closed-end and open-end leases. A closed-end lease is also known as a “walkaway lease,” a contractual agreement that is settled when the lease term ends. In other words, a customer may return the vehicle to the dealership, sign paperwork and then walk away. There may be additional expenditures disclosed, such as wear and tear and mileage overage costs, but the contract ends once all obligations are satisfied.

With an open-end lease, also known as a “finance lease,” you will face a balloon payment at lease end. In particular, this means that you either must come up with the funds to make the payment or you will need to finance the vehicle. As you might guess, the overwhelming choice is for the lease option that lets you walk away — a closed-end lease.

Purchasing v. Leasing

Approximately 11 percent of people pay cash for a new car, according to CNW Market Research. Another 70 percent finance their new vehicles, and the rest choose to lease.

Leasing has grown in significance over the years as the price of new cars continues to rise. That $42,000 sport coupe you have your eye on would cost you dearly to purchase. If you put 20 percent down ($8,400), you are looking at financing $33,600. Finance that amount for five years at a 4-percent APR interest rate and you will be facing payments of about $619 per month. Not too many people can afford a big down payment and high monthly payments, let alone the insurance, taxes, and tags that would increase your effective cost.

With leasing, the amount you would pay per month is based on what the car’s projected worth is at the end of the lease. That same $42,000 sport coupe might drop in value to $26,000 after three years, representing its residual value. Thus, your lease would be based on the $16,000 remaining, not the vehicle’s full purchase price. Without other costs considered, you are looking at a lease payment of $472 per month, which is about $147 lower than the monthly payments in the financing example.

Car lease deals vary, with some arrangements requiring no money down and as much as several thousand dollars required up front before you sign and drive. Even with the majority of no-money-down leases, you will usually be required to make at least the first monthly payment before you leave the showroom.

Lease Down Payment

Now let’s say you have a car you want to trade in and use its value (equity) as a down payment. That’s understandable, especially if a $472 per month lease payment is still a stretch.

To get a new car dealer’s perspective, Auto Trends turned to Rob Lombard, owner of Lombard Ford, Inc., in Barkhamsted, Conn., to get his take on trading in the car you currently own outright and using its equity as a down payment for a lease.

Lombard says the first matter any reputable dealer should address is to qualify the customer for the lease, which means verifying whether or not a lease is a good option for the buyer.

“If a customer comes in and says that he puts 50,000 miles per year on the vehicle, the likelihood is that person cannot afford the monthly payment,” says Lombard. Lease payments are based, in part, on the amount of miles per year a lessee plans to drive. The higher the mileage limit, the more the customer will pay each month. Moreover, if a customer underestimates his or her mileage, an overcharge will be assessed at the end of the lease for each additional mile driven. Therefore, it is critical to make an accurate mileage estimate.

When asked about down payments, Lombard remarked, “We try to talk people out of large down payments as they do nothing on leases, but camouflage the real cost of driving that car.”

Still, if customers want to trade their vehicle in for a lease, no dealer, including Lombard, is likely to refuse them. Further, customers should do their homework and know the value of their car and negotiate with the dealer just as they would if they were financing.

The Final Analysis

Leasing a car allows consumers to get behind the wheel of a newer and more expensive vehicle than what they might be able to obtain through financing. On a final note, dealer Lombard warns that consumers should read the fine print prior to signing a lease contract, to ensure that they are aware of all costs related to the transaction.

See Also — How to Get Out of a Car Lease Early

Lemon Law Guidance for
New Vehicle Owners

July 11, 2019 by admin 1 Comment

When you purchase a new car, you expect it to operate as planned. However, some models are prone to problems and may require multiple visits to the repair shop. A minor problem here and there is understandable, but the situation persists or worsens, then you may own a lemon car. Worse, are those problems no longer covered by the warranty, requiring you to pay up.

If your car is a lemon, you may find recourse under the federal Magnuson–Moss Warranty Act. (Title 15 Chapter 50 of the U.S. Code). Also, expanded protection may come at the state level as enacted used car lemon laws work beyond the federal requirements. You may be able to manage the process yourself, but if your situation is outstandingly bad, then hiring an attorney who specializes in lemon law cases may be the best approach.

First Step — Review the Magnuson-Moss Warranty Act

The Federal Trade Commission (FTC) enforces the Magnuson-Moss Warranty Act to ensure that consumers are protected.

Specifically, the act “makes it illegal for manufacturers or dealers to claim that your warranty is void or to deny coverage under your warranty simply because someone other than the dealer did the work.” However, if the repair was done incorrectly and caused other problems, such as engine damage, the affected part may no longer be covered under the vehicle’s warranty.

The FTC advises consumers to understand their vehicle’s warranty by reading it and knowing the warranty period. Furthermore, owners should service their vehicles at regular intervals, keep all service records and receipts, and articulate their complaints to service personnel and supervisors if they are not satisfied with the work. Typically, this act applies to purchasers of new vehicles.

Second Step — Contact Your State’s Office of the Attorney General

Every state has an Office of the Attorney General, an individual who serves as the main legal advisor to the government. Also known as “advocates general” and “procurator,” this professional is the chief law enforcement officer in that state. Importantly, existing used car lemon laws are under his or her bailiwick.

Therefore, inquire at the Office of the Attorney General about your state’s lemon law. You will likely find that there is a complaint procedure you must follow before heading to the next step. You should know that used car lemon laws vary from state to state.

Third Step — Review Your State’s Used Car Lemon Law

If after following the two earlier steps you still are not getting your problems resolved or if you suspect your vehicle will never operate as intended, you should examine your state’s used car lemon law. A copy of that law should be available online through your state’s website, otherwise you can usually obtain a copy by visiting the Attorney General’s office.

It is at this point where state laws vary. That said, there may be certain prevalent aspects to consider. For example, you should know when your state’s lemon law was enacted and whether your car is covered under the law. The good news is that all 50 states have lemon laws in place.

If your car is covered, the state will outline the repair procedures and the steps you must follow. Typically, this involves notifying the manufacturer or the dealer within a certain timeframe.

To illustrate, in South Carolina after three unsuccessful repair attempts for the same defect and a cumulative 30 days of out-of-service time, your car would be considered a lemon. In this example, the manufacturer must give you a refund — including the vehicle’s cost, sales tax, license fees, and registration fees. Otherwise, the manufacturer would replace your vehicle.

You should know that if you purchased your vehicle from a private party, you may not be protected by your state’s used car lemon law. In that case, you should consult with an attorney for advice regarding possible remedies. For instance, if the value of the car is under $3,000, making a claim in small claims court is advisable.

Your state may also require dealers of used cars to provide you with a written warranty. For example, in New York, that warranty is usually called a “lemon law warranty” or what spells out your rights, including repairs that will be made at no cost to you. That warranty must accompany your sales contract or lease.

Fourth Step — Consult with an Attorney

If at this point you have not consulted with an attorney and are still not satisfied with the repair process or if you believe your rights are not being protected, then it is time to find a qualified attorney. Reach out to your state’s bar association and ask for the names of at least three attorneys specializing in lemon law and contact each one to gauge how they may assist you.

An attorney may offer an initial consultation for free, explaining what recourse is available to you along with their fee. If you choose to sue, that fee may be paid by the manufacturer or the dealer, but only if you win. There is a decent chance your case will be settled out of court if your suit is a strong one.

Used Car Lemon Laws

In summation, if your car is still under the manufacturer’s original warranty, your dealer will handle those repairs per the warranty. If you are not satisfied with a dealer, you can visit another shop. If your problem is still not satisfied, insist that the manufacturer’s regional representative becomes involved.

For used cars, your state’s lemon law may offer the best protection. Follow these steps carefully to ensure that the repairs are made to your satisfaction, otherwise a full refund or a replacement vehicle may be in order.

Persist Until You’re Successful

With potentially thousands of dollars on the line and in some cases family safety a concern, it is important for consumers to see a lemon car problem through until an equitable resolution is reached.

This may mean taking an unconventional approach, especially if you haven’t yet contacted an attorney. For example, a News 6 Orlando news team investigated one consumer’s claim of a defective Hyundai Sonata SE sedan and was able to help the woman settle with the automaker.

Initially, Hyundai admitted its fault and offered to repurchase the vehicle. However, the settlement did not cover $850 she had paid toward the car. The news team intervened and Hyundai responded by nearly doubling their previous offer.

Photo Attribution: André Karwath aka Aka [CC BY-SA 2.5 (https://creativecommons.org/licenses/by-sa/2.5)]

4 Common Car Recall Misconceptions

June 18, 2019 by admin 1 Comment

Tens of millions of cars are recalled each year, representing problems that may occur after a car has been sold. Many car recalls are the result of faulty airbags produced by airbag supplier Takata and are found in vehicles produced by more than a dozen manufacturers.[1] Unfortunately, there are common misconceptions about car recalls that continue to persist. We’ll address these matters in an effort to keep your family safe.

Misconception No. 1 — Car Recalls Point to Quality Issues

More than 51 million vehicles were recalled in 2015, surpassing 2014’s previous recall record.[2] For consumers, the rise in the number of recalls is disconcerting. After all, is the vehicle you own safe or is it a danger to you and your family?

The sharp rise in the number of vehicle recalls has much to do with improved detection tools and tighter safety regulations. Car problems that might have been missed or downplayed in the past are now under scrutiny. Furthermore, a dwindling number of suppliers mean more manufacturers are sharing parts. Indeed, some 14 automakers use Takata airbags. Car quality, notably reliability is on the rise, according to J.D. Power.[3]

Cars are not the only products recalled in greater numbers. The Consumer Product Safety Commission averages one recall daily, including such recent ones as 29 million Ikea chests and dressers, an assortment of hoverboards, Martha Stewart skillets sold by Macy’s, and a host of other household products.

Misconception No. 2 — Loaner Vehicle Availability is Assured

If your car is subject to a recall, can you get a loaner vehicle until the repairs are made? After all, it may take several years for Takata to produce enough airbag inflators to supply to car manufacturers. As we’ll see, the answer to that question is murky at best.

There are no state or federal laws requiring manufacturers to supply a loaner vehicle until your car has been repaired. Further, each manufacturer sets their own policy on how to handle loaner vehicles.

Toyota, for example, may supply a loaner vehicle when your car is in the dealer’s shop for warranty repair.[4] In this situation, customers are eligible for a loaner vehicle if their car is kept overnight and also meets one of the following three criteria: the warranty repairs will take longer than one day to finish, the warranty condition requires extensive diagnosis, or the parts needed for warranty repairs are not readily available and your vehicle has been deemed inoperative or unsafe to drive. Contact your dealer to learn about your options. Even if the written policy provides little satisfaction, you should press the manager for a favorable resolution.

Misconception No. 3 — My Rental Car is Safe

Let’s say you’re taking a trip and you fly to a city and are in need of a rental car. Likely, you’ll have your choice of a half dozen or more car rental companies available to you, ranging from regional operators to the global dominators. Your rental car is safe to drive, right? Maybe not.

The answer to that question was absolutely in doubt until recently. Prior to the passage of a new federal law that went into effect on June 1, 2016, the car rental companies could provide keys to a car with a known safety defect. That law is the direct result of action taken by the family of two sisters killed in a fiery crash involving a not-yet-recalled Enterprise Rent-a-Car Chrysler PT Cruiser. The 2004 accident underscored industry negligence and led to the passage of the new law.

Not all rental car companies are covered, however. A loophole exempts companies with fewer than 35 vehicles from the law.[6] Always ask your rental car agent if a car has an open recall before accepting the keys. While you’re at it, check Parents’ car seats recall list for unsafe car seats before accepting a rental car with a seat that may not be safe for your child.[9]

Misconception No. 4 — My Used Car Has No Unfulfilled Recalls

Purchase a used car from a dealer and your vehicle has no open recalls, right? Unfortunately, that’s not always the case. In fact, legislation requiring the completion of repairs before a used car can be sold was blocked by an influential auto dealer lobby last year.[7]

Fortunately, consumers are not left without resources to verify whether a used vehicle is safe or not. Every passenger vehicle comes with a Vehicle Identification Number (VIN), a 17-digit alphanumeric representation specific to that vehicle. The VIN is typically found at the edge of the dashboard where it meets the base of the windshield. Stand outside the vehicle, copy the VIN, then input that number into the NHTSA database on Safercar.gov.[8]

There are a few things to keep in mind about the database. First, it covers recalls over the past 15 calendar years only. If you’re shopping for an older car, then some information may not be included. Second, only incomplete safety recalls are listed. If a recall has been accomplished, the completion information will not show. Third, the information about a vehicle recalled is provided by the manufacturer. If a recall is new, those details may not yet appear. Certain international and low-volume manufacturers may not be included in the database.

Car Recalls: What You Need to Know

Consumers should never assume that they’ll receive a recall notice. Car manufacturers will send out notices to your last known address, but these may not get forwarded to your current address. Also, if you’re not the original owner of the vehicle, the manufacturer may not know the car has changed hands. Use the Safercar.gov database to keep up with recalls or sign up for the free alert open recall alert from CARFAX. Your dealer’s repair shop will also have access to manufacturer recalls.

With tens of millions of cars recalled annually, there is a good chance yours will be included. Despite receiving such notices, defective cars only get repaired about two-thirds of the time according to the Insurance Journal. This means consumers regularly ignore such notices, potentially putting their families at risk.

Finally, when made aware of a recall, make an appointment with your dealer to have it fixed. Verify that the replacement part is on hand before taking time away from work or your other activities to have the recall accomplished.

Notes

[1] Consumer Reports: Takata Airbag Recall: Everything You Need to Know — http://www.consumerreports.org/cro/news/2016/05/everything-you-need-to-know-about-the-takata-air-bag-recall/index.htm

[2] The New York Times: Product Recalls Rise With Better Detection and Fewer Suppliers — http://www.nytimes.com/2016/05/30/business/product-recalls-rise-with-better-detection-and-fewer-suppliers.html

[3] Portland Press Herald: Automakers’ Reliability Scores Rise — http://www.pressherald.com/2016/06/22/automakers-reliability-scores-rise/

[4] Toyota: If my vehicle requires a warranty repair, will Toyota provide me with a loaner vehicle? — http://toyota.custhelp.com/app/answers/detail/a_id/7653/~/if-my-vehicle-requires-a-warranty-repair,-will-toyota-provide-me-with-a-loaner

[5] NHTSA: Effective Today: New Federal law for recalled rental cars protects consumers from vehicle safety defects — http://www.nhtsa.gov/About+NHTSA/Press+Releases/nhtsa-rental-cars-law-06012016

[6] CNN Money: Rental companies now have to repair recalled cars — http://money.cnn.com/2016/06/01/news/companies/rental-car-recalls/

[7] Automotive News: Used-car loophole for recalls tightens up — http://www.autonews.com/article/20160208/RETAIL04/302089962/used-car-loophole-for-recalls-tightens-up

[8] SaferCar.gov: Recalls Look-up by VIN – Vehicle Identification Number — https://vinrcl.safercar.gov/vin/

[9] Parents: Car Seats Recalls — http://www.parents.com/product-recalls/car-seats/

[10] Insurance Journal: Automakers Frustrated Consumers Ignore Recall Repairs — http://www.insurancejournal.com/news/national/2015/04/29/365933.htm

IIHS Crash Testing and Your Insurance Premiums

May 10, 2019 by admin

Both the National Highway Traffic Safety Administration (NHTSA) and the Insurance Institute for Highway Safety (IIHS) conduct crash tests to determine specific vehicle model safety. Both sources should be considered by consumers when purchasing a new or late-model used vehicle. When it comes to setting auto insurance rates, it is the IIHS testing that the insurance companies use to determine your insurance premiums.

About the IIHS

The IIHS is wholly funded by numerous insurance companies ranging from smaller companies such as the Rockingham Group, Tennessee Farmers Mutual Insurance Company and Grange Insurance to such household names as GEICO, State Farm and Allstate. Additional funding is provided by several insurance funding associations.

Founded in 1959, the IIHS is an independent, nonprofit educational and scientific organization whose mission is to reduce insurance losses from crashes on America’s roads. The IIHS opened its Vehicle Research Center in Virginia in 1992 where it conducts front, rear and side tests on vehicles and assigns a rating. The institute uses crash test dummies and sled labs for vehicle testing, and also tests child booster seats. Yes, the test scores can affect your insurance premiums (more about this later), but not your uninsured motorist claim.

Five IIHS Crash Tests

Since the IIHS began testing vehicles in 1992 it has modified and expanded its crash testing to encompass additional areas of the car. Its earlier tests measured moderate overlap front crashes as well as rear crash protection to assign a head restraint rating. Side-impact and roof strength tests were added later; a small overlap front test was added in 2012.

The IIHS’ moderate overlap frontal test has a vehicle traveling at 40 mph toward a barrier. The barrier face, of aluminum honeycomb construction, measures approximately two feet tall. Behind the wheel sits a crash test dummy, one that is equal in size to the average male driver. This test has 40 percent of the total width of the vehicle hitting the barrier on the driver’s side. It then measures the impact of the crash on the vehicle as well as on the driver.

The small overlap frontal test also has the vehicle traveling at 40 mph, with 25 percent of the vehicle required to hit a 5-foot rigid barrier, similar to a vehicle hitting a fixed object such as a telephone pole. The same sized crash test dummy used in the first test is used here with the IIHS paying especially close attention to how vehicle restraint systems such as airbags and the vehicle’s safety cage protect the driver.

A side test has been used by the IIHS since 2003, one that employs a moving barrier that weighs 3,300 pounds and corresponds to the weight of a small SUV hitting the driver’s side of the vehicle. Crash test dummies similar in size to an average sized female driver as well as a child sitting in the rear seat behind the driver are used. The IIHS also conducts a roof strength test that employs a metal spike that is pushed into one side of the top of the vehicle and is required to bear a force that is four times the vehicle’s weight before reaching five inches of crush to achieve a good rating. This test mimics what a vehicle might experience in a rollover accident, something that takes the lives of thousands of people annually.

Since 1995, the IIHS has been conducting rear crash testing with an eye toward measuring the impact of front seat vehicle restraints, particularly headrests. Whiplash injuries can be minimized with improved head protection, with this test approximating a rear end collision corresponding to a 20 mph crash against a stationary vehicle.

Assigning Ratings to Evaluated Vehicles

Car manufacturers strive to meet the highest crash test ratings offered by the IIHS. It is a two-tier rating system that gives vehicles either a “top safety pick” or “top safety pick+” rating, the latter assigned to vehicles that have completed the moderate overlap front test.

To achieve a top safety pick+ rating, vehicles must have received good ratings in four of the five tests and no less than an acceptable in the fifth test. A top safety pick designation is assigned to vehicles that receive good ratings in a rollover, rear, side, and moderate overlap front tests.

Four grades are assigned with each test: good, acceptable, marginal and poor. The IIHS maintains scoring for vehicles from its earliest test years and posts that information to its website.

Ratings and Your Insurance Premium

Your chances of being injured in an accident are far greater in a lighter vehicle. And that is why the IIHS advises consumers to “pass up very small, light vehicles” in its Shopping for a Safer Car brochure. Choosing vehicles that rank higher by the IIHS will result in lower insurance premiums. You can save additional money by opting for a higher deductible, bundling your home and car insurance policies, and searching for discounts.

Vehicle safety testing helps insurers and consumers alike. Insurers assign risk based on a number of factors including your vehicle’s crashworthiness. Save money on insurance and improve your chances of surviving an accident by buying a vehicle that has a top safety rating.

6 Points About Buying a Used Car

March 13, 2019 by admin

You’re in the market for a used car, but you don’t know what to expect. Prices are all over the place and if you haven’t bought a car in a while, you’ll likely experience sticker shock, even for a used vehicle. Before you shop, keep the following in mind.

Point No. 1: How much can you afford for a used car? You should know that a used car in decent condition will most likely cost you at least $5,000. That’s a lot of money! If your budget is considerably lower than that, then expect to find vehicles that are at least 10 years old and perhaps not in the best condition. If you’re handy with car repairs, then the problems may not bother you.

Point No. 2: Decide what type of vehicle you want. Are you shopping for a coupe or a sedan? Are you considering an SUV or a van? Do you want a sports car or some other type of vehicle? Is there a make or model that interests you? Narrowing your parameters first will make your search easier. Identify the vehicle body style that is right for you and then shop accordingly.

Point No. 3: Consider your purchase options. When buying used, you can shop a car dealer or purchase from a private party. Both options have advantages and disadvantages. Buying a car from a dealer will cost you more, but you should also get a warranty. Buying privately will save you money, but the lack of a warranty means you’re on your own. In any case, it is good to check a site such as Kelley Blue Book or Edmunds.com to get pricing information. From there, you’ll have a framework from which to negotiate. And by all means, negotiate!</a>

Point No. 4: How will you pay for it? If you have enough cash to buy a used car, then you’re in great shape. If not, how will you pay for it? Used car financing is possible, but rates are higher than for new cars. You’ll also pay a higher interest rate if your credit is only satisfactory or poor. The more money you can put down, the lower your monthly payments too. Also consider what a car will cost you in property taxes, the registration fee, insurance, gasoline, and maintenance. Know your full costs going in and you won’t be surprised later.

Point No. 5: Inspect the car carefully. You’ve found a car, SUV, van, or truck that interests you. Now for the hard part: determining whether it is in decent condition. A thorough check from bumper to bumper and from top to bottom is essential. This means lifting the hood and checking wires, belts, hoses, and fluids. It also means crawling under the car to examine the suspension system, brakes, calipers, and exhaust system. Check the tires too — look for signs of uneven wear and aging. Obtain a car history report too from a service such as AutoCheck.

Point No. 6: Have a mechanic inspect the car. Unless you do a stellar job of checking a car yourself, you may want to hire a mechanic to do the check for you. Typically, you’ll pay upwards of $100 for an inspection. But that review can pay for itself quickly, alerting you to potential problems or avoiding a money pit altogether. Regardless, a second set of eyes may see something that you might miss.

Used Car Considerations

Carefully shop for a used car and you won’t regret your purchase. Make a sound buying decision and you may get several years out of your car, provided you follow the maintenance schedule in the owner’s manual and address pressing problems immediately.

How to Save Money on Car Insurance

November 2, 2018 by admin 3 Comments

Your car insurance costs may be on the rise with several factors possibly contributing to that increase. For example, a new driver, a different car or a change in coverage can send your rates soaring. Just the same, you can save money on auto insurance by implementing the following money-wise strategies immediately.

2019 Lexus ES

1. Review Your Credit Reports

Every consumer shopping for car or homeowners insurance is assigned an insurance score. That three-digit score is based on certain credit report characteristics and is used to measure risk, not creditworthiness. Just as you can retrieve your credit score, you can obtain your insurance score.

Because both your insurance score and your credit score are based on your credit reports, you should review all three of your consumer credit reports to determine if there are problems listed that may contribute to a lower score. For instance, late credit card payments, high outstanding balances on certain loans and a checkered credit history can impact both scores.

Free copies of your credit reports are available through AnnualCreditReport.com. Review your reports for accuracy and work on building a better credit history. Gradually, your insurance score will rise thereby lowering your auto insurance rate.

2. Review Your Insurance Coverage

How much insurance do you have? How much insurance coverage do you need? If you have not reviewed your auto insurance policy in some time, do so before it is set to renew.

You can save money on car insurance by assuming greater risk. Instead of a $200 deductible for comprehensive coverage, consider $500. Collision coverage is ideal for most cars that are less than 10 years old, while dropping collision coverage for high mileage older vehicles can save you money.

New drivers on your policy will cause your insurance rates to spike. Encourage your teens to maintain good grades as insurers offer discounts for students that have at least a “B” average.

2019 Volvo XC40

3. Qualify For Discounts

Insurers regularly offer discounts to consumers in a bid to attract and retain their business. You may qualify for discounts in several areas, immediately reducing your auto insurance premium by at least 10 percent.

Consumers who use the same insurer for their cars and home will receive a discount for bundled insurance. Contact your insurance agent to inquire about available discounts including safe driver, anti-theft device and for completing a defensive driving course. Affinity discounts are available if you belong to certain associations or organizations, such as a credit union.

4. Improve Your Driving Record

Points on your driving record can send your car insurance rates soaring. Employing safe driving habits can gradually lower your rates with your record typically cleared of all of its infractions within three years.

You can speed up the point reduction by completing a department of motor vehicles approved safe driving course. Visit your state’s DMV site to learn what courses are available. Typically, if you successfully complete a state-recognized driver safety course, the DMV will shave as many as three or four points off your driving record, lowering your car insurance premium.

2018 BMW 740e

5. Consider Your Future Car Purchases Wisely

Your heart says, “sports car” but your head says “family sedan.”

Although there is nothing wrong with following your heart, your head may insist that you save money. This is where your choice in vehicle matters and will affect your insurance rates.

But before you buy any car, make a call to your insurance agent to receive an insurance quote. You can also find out which vehicles will cost you less by visiting the Insurance Institute for Highway Safety’s website to retrieve the crash test ratings for today’s new cars.

The IIHS is funded by the major insurance companies and your rates are based in part on how well a car holds up in a crash. Choose a model with a “top safety pick+” rating and your insurance agent will offer a correspondingly lower rate quote than a vehicle that isn’t rated as high.

Other Underwriting Factors

Each auto insurance company has its own insurance rating system, but there are general guidelines these companies follow that make it possible to compare coverage. Other factors that can affect your insurance rates include where you live, your gender and age, your marital status and the number of miles you drive annually.