Car Insurance

Purchasing a Pre-owned Automobile can be nerve racking for
consumers. There are a number of concerns toward the integrity of
the Automobile. In addition, it is difficult to compare the
appearance and condition of a used car to the asking price. With
some simple steps, a consumer can make a pre-owned purchase
simple and know they are obtaining the vehicle for a reasonable
price.

Understand the Sellers Mindset – Why is the Car for Sale?

Probably the most important factor to consider is the reason a
vehicle is for sale. Factors of the owners life may have lead him
or her to require a new vehicle. For example, their children may
become involved in sports or a new child may have been introduced
to the family. Reasons like this are good to hear. They indicate
that the seller probably would have kept the car and was
satisfied with the reliability and comforts offered.

In contrast, if the seller simply became sickened by the vehicle
and upgraded, take a look at what they are driving now. Did they
upgrade to a newer model of the same vehicle? If so, it is
evident that they where pleased with the vehicle that was for
sale. Otherwise, the vehicle may become a headache. If the seller
purchased a different make and model, ask about the newer car.
Their response will indicate what was important to them at the
time they purchased the vehicle. These elements of importance are
good indicators of things they disliked in the vehicle for sale.
Therefore, if a hint of reliability is muttered, the vehicle for
sale could be a, “lemon”.

What has been done to the Vehicle for sale?

Ask for receipts in advance. To learn what was done to a vehicle,
receipts are fairly important and provide good proof along with
the date service occurred. Ask for receipts in advance. The
seller may have to dig through documents to find receipts for
service and parts. Because of this, asking when viewing a vehicle
may not be a wise choice. In contrast, if the seller knows in
advance, he or she will have time to find all the related
receipts.

Analyze the modifications that had been done. Did the owner
install components that increase the fuel mileage? The vehicle
may have been a financial burden. Did the owner install
performance enhancing parts? The vehicle may have lacked power or
did not perform satisfactorily. Did the owner install factory
parts? This is a good indicator that the owner was satisfied with
the vehicle and the parts proved reliable to him or her.

Modifications to a vehicle will usually prove to be
unsatisfactory. Keep in mind, before a vehicle is manufactured,
auto makers spend thousands of dollars in engineering the
vehicle. They are primarily concerned with ergonomics,
performance, and safety. These engineers found the stock tire
created the perfect wheel for the vehicle, the exhaust system
proved safe and provided the best engine performance, and the
external engine components offered economical benefits without
robbing motor performance. In most cases, modified parts are
throwing away all the money spent on research and engineering in
a vehicle. Unless there is a purpose other than what the vehicle
was designed, racing or carrying heavy loads, it is a wise choice
to look for stock parts.

What is the appearance of the Vehicle?

One of the best ways to judge a vehicle is by the appearance. A
clean and neat interior is a good sign that person was happy with
a vehicle. In contrast, a poorly maintained interior may indicate
that the vehicle was neglected. Did the owner ensure the carpet
was preserved by using mats? Are there any burn wholes in the
upholstery? Did they clean spills in the vehicle or let them
become stains in the carpeting? Neglect on the inside is commonly
believed to provide good insight on a poorly maintained vehicle.

Walking around the outside vehicle can reveal the driving
behavior of the current owner. Look at the drive wheels, are they
worn significantly more than the other tires on the vehicle? This
would indicate heavy acceleration, which is extremely abusive to
internal engine parts and the drive train of the vehicle. Look
for variations in the vehicles paint. If variations are seen, the
vehicle could have been in an accident. Another indication of
bodywork is to look for over-spray within the engine compartment
and door jams. While a history report is fairly resourceful,
accidents could have occurred that are not listed on the report.
An inspection is always recommended. After a high speed accident,
vehicles tend to have significant problems.

What is the Vehicle Worth?

Being value conscious is wise as a consumer. There are a number
of resources that indicate a car value. In most cases, the seller
of a pre-owned vehicle was offered a very low price as a trade-in
value for their new vehicle. They are probably willing to sell
the vehicle for less than, “book value,” as they are wisely
attempting to gain more than what was offered at the dealer.
However, book value can lack many considerations and used only as
a reference point. The best way to judge the value is to shop.
Look at similar models for sale and evaluate the condition and
desired preferences.

Conduct research and read reviews of the vehicle. The vehicle may
appear to be in mint condition, yet the owner neglected to bring
the vehicle to a dealer for an important recall. Most would
agree, this would greatly affect the overall condition as the
vehicle may not be in safe working order. In addition, there are
a variety of options available for each vehicle. Which options
add value that can be confirmed on the vehicle for sale? Does the
vehicle actually have the premium sound system and manufactures
premium wheels? Put more effort into assessing the value then
mileage and model, to ensure the vehicle is worth the asking
price or making an offer.

Purchase a pre-owned vehicle with confidence

Through researching a desired vehicle and shopping around, a
consumer can purchase a reliable vehicle and save thousands of
dollars for their efforts. The savings in purchasing a pre-owned
vehicle could be considered as a payment for the work done. In
addition to savings, purchasing a well maintained pre-owned
vehicle eliminates the fear of purchasing a poorly designed
vehicle. There have been thousands of people whom purchased and
tested the vehicle. The vehicle has something better than a crash
test. It was tested in the real world.

Everyone has heard about dealership scams, but unfortunately, few
people know about any scam specific details and therefore are
unsure what to watch out for.

In this article I’ll cover the ten most common dealership scams
so that you can be better armed to protect yourself the next time
you are out new or used car shopping from a dealership.

1. The VIN window etching scam

Basically a dealer will charge you $300-$900 for window etching
and they will tell you that you have to pay the money to get the
loan because the banks insists on it.

Some dealers might tell you that the etching is free but will add
on the etch money to your monthly payments to make up for it.

The best way to avoid this scam is to force the dealer to put it
in writing if they say that the etching is free or simply etch
the car yourself.

You can get an etch-it-yourself kit from http://www.CarEtch.com
for $30 or just don’t buy the car. Remember a lender doesn’t
require that you purchase any extras on a car. All the lender
cares about is that you can make your payments on time regularly.
Don’t buy into it.

2. The Financing Scam

I have mentioned this before already, but here it is in more
detail.

Basically you trade in your old car and the finance manager tells
you that your interest rate is good and then gives you the car.

After a week or two passes you get the call from him that you
didn’t qualify for the interest rates that they gave you upon
making the deal.

Every new purchase has a clause in the contract that usually
states that the deal is “subject to loan approval.”

This gives the finance manager a loop hole in getting more money
out of you. All that this means in the contract is that the deal
is not finished yet even you already have possession of the car
and have signed the contract.

The dealer can then charge you $1000 more in finance fees and up
your monthly payments by $50.

This scam is generally pulled on people with bad credit because
it is more plausible.

If you are wondering why they would sell you the car at 6% APR if
they knew you had bad credit (remember they ran the credit search
already) the answer is simple; to sell the car.

You can avoid this scam by not financing the car with the dealer
if you know that you have bad credit.

You are better off going to a credit union and financing the car
yourself. When you buy a new car the deal should be made on the
price of the car, not on the monthly payments.

3. The Credit Score Scam

This scam is ridiculous at best. This is when the finance manager
tells you that your credit score is lower than it really is so
that they can get you for higher interest rates.

This scam is pulled on everyone; good or bad credit.

This scam is easy to avoid. Just get your own copy of your credit
report from Equifax.com, and bring it with you.

It is really difficult to lie to you about your credit score if
you have your own copy of it. If your paper and theirs doesn’t
say the same thing, go somewhere else because that dealership is
lying to you.

Don’t forget to let them know it too because it’ll be nice to
watch them squirm.

4. The Forced Warranty Scam

This is when the finance manager tells you that you are not
eligible for the loan by the bank unless you pay an extra $2000
for a 2-3 year extended warranty.

This scam just doesn’t make sense. Basically the finance manager
is telling you that the bank won’t trust you to pay the $20,000
loan for the car, but they will trust you if you pay even more
money. That’s just stupid.

You can avoid this scam if you can force them to put it in
writing that you “have” to pay the extended warranty in order to
get the loan.

That way you can bring a copy of the contract to your local
State’s Attorney’s office to verify that the deal is valid. I can
bet that the finance manager will change his tune pretty quickly.

5. The Dealer Prep Scam

Let me first let you know that cost is not only legal but very
much common practice. I still refer to it as a scam because it is
just another way for you to end up paying more money for the car.
Basically the dealer will tell you have to pay an extra $500 to
cover the labor costs of the dealership’s 5-point inspection. You
are paying for the time it took for the dealership to make sure
that the car wouldn’t explode on you in the first week of owning
it!

This check up that you are paying so much money for is for the
dealership to remove plastic from the seats etc, vacuum the car
out, and making sure that all of the fuses and fluids are ready
to go.

When factories deliver the new cars to the dealerships the cost
of delivery and prep is already covered, so basically you are
paying the dealership for work that they haven’t really done.

I swear they would take a car in perfectly ready to drive
condition, take everything out and put everything right back in
it just so that they can make you pay the fee again.

You can avoid this scam by simply asking the dealership to add an
extra $500 credit to the deal to make sure you do not have to pay
the money.

If they refuse, you can then decide if the car is worth the
money. If it is fine; buy the car, if not; go to another dealer
that will remove the dealer prep costs.

6. The Dealer Mark up Scam

This is an unnecessary fee that the dealer charges for no reason
other than greed. This fee can be seen on the orange sticker
marked on the manufacturer’s suggested retail price (MSRP).

The additional dealer markup is nothing more than requiring more
money for no real reason. They can include all kinds of extra
fees in the additional dealer markup.

When you see an extra dealer mark up fee, ask the dealer to get
rid of it. If they refuse, it is pretty much up to you, but
remember that if you do pay the extra dealer markup, you are
overpaying for no real reason.

7. The Payoff Your Loan Scam

This is when the dealer offers to pay off the balance of your
current car loan no matter how much money you still owe. It is a
common sales strategy and one I hear on a regular basis on the
local radio stations. When the average buyer hears it, they think
that by purchasing a new car with a new dealership, they will
automatically owe no more money on their current car.

That couldn’t be further from the truth.

What really happens is that the dealership does help you get out
of your current contract; however, they normally are forgetting
to tell you how high your fees are going to be for breaking the
lease agreement with your old dealership.

You will now be responsible to pay fees that are in the thousands
to make up for it.

You also will not be able to refinance for a new car until those
fees are paid. Of course the dealership can add the cost on to
your contract with them at a substantially higher rate.

The dealership only agrees to this deal because they want to get
more money off of your current car. They aren’t really doing
anything for you at all. The dealership will also give you far
less then the car is worth on the trade off. Basically this scam
works because they will up your monthly fees, and then sell your
trade in for a more money than its worth.

The dealership then extends your monthly payments so that they
can make it appear that you are paying a small amount monthly
when you don’t even realize that you have committed to an extra
year of payments.

To avoid this scam, you have to bite the bullet and ride out your
current lease till the end. If you are really determined to get a
new car, then you should try selling your current car on your
own.

Just sell it so that the buyer just takes over the lease
payments.

8. The Used Car Sold “As Is” Scam

This is when a dealership will sell you a car that has been in a
car wreck, but they will tell you that the car has been
completely refurbished.

When you see the car it has a sticker on it that says “as is” on
it and no warranty is included with your purchase.

This is the dealer’s way of telling you that you can’t bring the
car back, you are assuming all risks for the car, and that it is
not under any kind of warranty.

To avoid this scam, don’t buy a car without a warranty or one
that says “as is” on it. By doing this, you might as well buy a
car from a stranger on the street with the same deal.

9. The Bounced Check Scam

This is when you walk into a dealership with a bank draft and the
dealership charges that they can’t accept your draft because your
bank bounces checks often so they now refuse checks from that
bank.

Of course, this leaves the table open for them to get the extra
money they want by offering to sell you a car at a higher
interest rate.

You can avoid this scam first by getting your drafts from Capital
One Auto Finance.

Then let the finance manager know that you are aware of the scam
that they are pulling and that Capital One Auto Finance is in the
business of giving loans so the checks don’t bounce.

10. The Forced Credit Application

If you are hoping to pay for a car outright or in cash with a
bank draft or check that is what you should do. Some dealerships
will not let you.

You will hear one of these lines so that they can try and get you
into paying monthly terms for more money.

“State laws require that you must fill out a credit application
before I can sell you this car.”

“Everyone that buys a car from us fills out a credit application
first.”

“It’s the company’s policy”.

If you hear any of these lies, then you know what’s going on.
When you are paying cash or financing with another company, why
would you think that you need to fill out a credit application
with the dealership?

It doesn’t make sense. No state will force you to apply for
credit when paying cash.

Would you have to fill out a credit report if you want to buy a
sofa or groceries while paying cash? See how silly this is. To
avoid this scam, just laugh in their faces.

Well, there you have it, the top ten most common dealership
scams. So, now you are better armed to detect when a sales agent
is trying to pull one over on you.

Should You Buy An Automotive Extended Service Contract?

The decision to purchase an extended service contract or
mechanical break down policy as they are sometimes called is a
decision that has many variables. Depending on the age of the
vehicle, the usage, how long do you plan on keeping the vehicle
for are just a few questions that need to be considered.

If you look online, some of these so called guru’s who write
scam pieces will tell you—Don’t Buy—it’s a scam. I whole
heartily disagree with their opinions, I question if they have
real world knowledge and experience to begin with. If they did,
then I firmly believe their opinion would be other wise.

The scam comes when you are charged outrageous and inflated
prices for an extended service contract, they are not cheap to
begin with, but those who exasperate the cost are the ones who
are taking advantage of unsuspecting consumers. Or perhaps even
requiring you to purchase as a condition of buying the vehicle,
you should never be forced to buy under any circumstances.

With automotive repair labor rates ranging easily up to $100.00
per hour or more, it doesn’t take a huge repair to cost you
major bucks, and with the electronics and technologies of
today’s automobiles, parts prices are equally as expensive.

During my 26 years in the automotive service industry, I can
recall countless and numerous times where customers wished that
they had purchased, and those that did were glad they made such
a sound financial decision.

Consider the following examples of repair cost:

Air Conditioner Repairs can easily cost $1500.00 for compressor
replacements.
Transmission Overhaul or Replacements–$3000.00
Water Pump replacements–$600.00
Power Steering Pumps and Steering Gears–$600-$2000.00

However, don’t be mislead into believing a mechanical break
down policy covers every nut and bolt on the vehicle, there are
variables and different kinds of policies as well. Some cover
seals and gaskets, wear and tear items, consequential damages
etc and others don’t. Be aware of what it does and does not
cover before buying, this will save you a lot of grief in the
event you have a mechanical failure.

It is a major decision, and one that requires weighing the
advantages and disadvantages.
My personal and professional opinion is that if you are going
to use the vehicle on a daily basis, you plan on keeping for 2
years or more after the original factory warranty has expired,
then you should purchase the extra protection.

It is after all, like an insurance policy, you hope that you
don’t have to use it, but it will give you some peace of mind
in the event that you have to have an expensive repair.

Buying a car takes certain skills. The two that will help you the most are researching and negotiating. Researching allows you to pinpoint the price you should pay. Negotiating allows you to get the price you want to pay. These are the fine points of buying an automobile.

Researching the car you want is easier than ever if you utilize the Internet. By going online you have a massive amount of information at your fingertips. The first place to go for your research is the car maker’s website. Here you can get details of the various vehicles they have for sale at their dealerships. You can get a feel for the automobile you might want to purchase.

Once you have obtained all the information you want or need from the manufacturer’s page move onto car sites such as MSN.carpoint.com or Edmunds that have sections set aside for research. On these sites you can compare different makes and models - their specification, mpg, price and so on.

After a certain time period you should have narrowed down your vehicle search to a couple of cars the research can become more intense. You can now use these same sites to find out what the manufacturers suggested retail price (MSRP) is as well as what the dealer’s invoice is. This is important because the MSRP is what the dealer would like you to pay and the dealer’s invoice is what you would like to pay because that is basically the true cost of the vehicle.

With your research is complete it is time to visit the dealership and negotiate. Of course first test drive the car and check it out to make sure it includes the options you want. But once you have selected the vehicle you want you need to settle with the salesperson on a price you will pay to drive it off the lot and into your garage at home.

Negotiating can be intimidating if you do not have the personality for it. That is why you should always keep in mind you can walk away at any point. You should know what the vehicle is really worth and what you can pay and stick with your calculations. The dealership is trying to get as much money over that invoice price as possible so that they receive more commission. It is unlikely you will ever be able to negotiate down to the invoice price but 5 or 6 percent over that amount is usually a good deal.

If you cannot agree on a price you have the right to get up and leave the dealership. You can likely either find another dealership in which to negotiate with for the vehicle you want. If you live in a small community where that is not an option it is possible that if you come back to the dealership at a different time and work with a different salesperson you might be able to get the deal you want.

Researching and negotiating are the most important parts of the car buying process. Both can be easy or hard depending on your skill level at each. The thing to remember is that you are in control with both. You can take as much time as it takes to research. While negotiating you can spend as much time as you want or walk away if you are unhappy with the deal. Hopefully with the right approach to both you will be driving away in your new vehicle with a smile on your face.

Remember your first time driving in the snow. It was probably scary and thrilling all at the same time. It important to teach your teenager how to properly drive in wet winter weather. Your youth will be on the roads with you and others and they need to know how to handle the conditions.

Getting a driver’s license and learning to drive is challenging for anyone. When you are a teenager it is exceptionally exciting to go for a drive. Unfortunately teens are more easily distracted behind the wheel than most. They talk to friends, talk on the phone and do not always focus on the road. This is why it is so important to discuss with your youth the dangers of driving during in winter weather and explaining how it takes their full attention.

Here are the some tips on what information to pass onto your teen:

Slow DownFirst and foremost tell the teenager that when the roads get wet with snow, slush or ice they need to slow down. Driving slowly will allow them to get to their destination safely. Slowing their pace down will allow them time to react if the car begins to slip and slide or if a car near them skids into their path.

Leave Stopping DistanceDriving slowly also means the teen should have plenty of stopping room. Drive leaving enough room to stop suddenly if the conditions call for it. Remind the teen that with snow or ice the car will not react like it would on dry pavement. It will take longer for the car to come to a complete stop.

Do Not Be AggressiveIt is best if your teenager is never an aggressive driver but in wet winter weather it is most important. Being overly aggressive using the gas or brake could cause the car to skid and crash. Remind them they do no want to end up in a ditch calling you to pick them up and them being responsible for paying you back for a damaged vehicle.

What To Do In A SkidExplain in detail the different reactions a car might have in the different winter conditions. Especially explain that because the tires cannot grip the road sufficient in ice or snow the car might begin to skid. If this occurs they should take their foot off of both the brake and accelerator and try to steer through the skid. As the car comes back into control they should be able to apply the brake and stop the car.

Once the winter weather conditions come to your part of the country it would be wise to reinforce the tips you have passed on by taking your teen out for a drive. Find a vacant lot with plenty of room for them to make a few mistakes in the snow or ice and not harm the car or anything outside of it. It also would be wise to check over the car with the teenager so both you and they are certain that the car will not break down in the cold.