Car Insurance

“Spot delivery” by auto dealers can lead to some sad situations. Better Business Bureaus report an increase in complainants who were asked to return their new car because the financing they thought was assured had “fallen through.” Their only option, the dealer said, was to make an additional down payment and/or agree to a higher interest rate to obtain new financing. Their traded-in vehicle had been sold so they had no other recourse.

What went wrong? Typically, the consumer signed a financing contract with the dealer without fully understanding the terms, or the contract was incomplete or not in writing. The customer assumes that the credit deal is finalized and the car is theirs. The auto dealer delivers the vehicle “on the spot” and permits the customer to take possession of the car.

Some weeks or even months later, the dealer contacts the customer to advise them that their financing plan was not approved and that they must agree to new financing – at less favorable terms – or return the car. This practice is called “yo yo” financing. The dealer stands accused of not having properly disclosed that the credit deal he originally sold to the customer was conditional on the approval of the application.

Not all deals in which a credit application isn’t approved is a scam. Sometimes a customer does not have strong enough credit to quality for the most attractive financing offers or has provided incomplete or false information on the credit application. This does not pose a problem if the auto dealership has awaited approval of the credit application before letting the customer take possession of the car.

There are many upstanding auto dealerships that never engage in these or any other shady tactics. However, “yo yo deals” are a common enough practice that some states are enacting laws to protect vehicle purchasers from “spot delivery.” To help ensure a satisfactory car-buying experience, the BBB advises car shoppers to

* Select a reputable auto dealer. Contact the BBB for a reliability report on the dealership before making a purchasing decision.
* Shop for financing before visiting dealerships. Check with your bank, credit union and other lenders to find out how much credit you may be offered and at what terms.
* Truth-in-lending laws require the auto dealer to provide a written disclosure of the terms of the sale and credit offer. Compare that to what you have been offered by other lenders.
* Remember, it is not in the dealer’s best interest to shop for the best credit terms for you; that’s your job!
* Make sure that any warranty claims, financing terms and oral promises by the sales person are put in writing.
* Carefully review all documents and sign them only if you fully understand every provision. Make certain both parties sign the documents and obtain copies.
* Do not drive the car off the lot unless your financing is approved and secure.

When shopping for a new car, it is always a good idea to comparison shop, carefully think things through and resist being rushed into making a hasty decision. Remember, there is no three-day cooling off period!

As gasoline prices rise well above $2.00 a gallon in some areas, consumers are wondering what they can do to improve their gas mileage. Although there are practical steps you can take to increase gas mileage, the Better Business Bureau warns consumers to be wary of gas-saving claims that empty your wallet, instead of saving you fuel.

Many Web sites make unbelievable claims for various after market automotive devices (fuel-line magnets, air bleed devices and retrofit gadgets) and oil and gasoline additives that supposedly increase gas mileage for automobiles. The Federal Trade Commission found many of these claims to be either false or overly exaggerated.

Before adding any fuel savings device to your vehicle, check with your mechanic. You may end up with a voided manufacturers warranty and serious engine problems by adding after market devices to your engine.

What you spend at the pump is influenced by how you drive and what type of gasoline you use to fill your tank. With vacation time approaching and an anticipated increase in gasoline prices for summer travel, here are some tips on what you can do to save fuel consumption:

* Choose the right octane for your car. Check your owner’s manual to find out what octane your car requires. Keep in mind that the higher the octane, the higher the price.

* Keep your engine tuned. Studies have shown that a poorly tuned engine can increase fuel consumption by as much as 10 to 20 percent depending on a car’s condition. Follow the recommended maintenance schedule in your owner’s manual; you will save fuel and your car will run better and last longer.

* Don’t let your engine run at idle any longer than necessary. An engine actually warms up faster while driving. With most gasoline engines, it is more efficient to turn off the engine than to idle for any period longer than 30 seconds.

* Drive more efficiently. Stay within the posted speed limits. The faster you drive, the more fuel you use. Set your cruise control on highway trips. This can help maintain a constant speed and, in most cases, reduce your fuel consumption.

* Keep your tires properly inflated and aligned. Automobile manufacturers must place a label in the car stating the correct tire pressure. If the label lists a psi (pounds per square inch) range, use the higher number to maximize your fuel efficiency.

* Anticipate driving condition. Driving smoothly and steadily makes the best use of your fuel. If you can, avoid sudden acceleration or braking.

* Change your oil and replace air filters regularly. Clean oil reduces wear caused by friction between moving parts and removes harmful substances from the engine. Your air filter keeps impurities in the air from damaging internal engine components.

In some places you may be able to walk in and rent a car without a reservation. But to make sure you will have the type of car you want, when you want it, you should reserve it in advance. Most rent-a-car companies take reservations in advance and will guarantee them with your credit card number and arrival time. Often they will provide a reservation number which you should record.

When you call for a reservation, give the time and date you want the car and your preference of model and make. Major companies will reserve a car in the cities they serve in the U.S. and even in foreign countries.

Many established rent-a-car businesses have toll-free numbers which can be called from anywhere in the United States without charge, 24-hours-a-day.

Do: Make a reservation when possible. Recheck your reservation as close to the rental date as possible.

Don’t: Forget to cancel if your plans change; this releases the car for someone else.

The price of new cars has climbed steadily over the past few years making used cars more attractive than ever. Buying a used car is a great way to stretch your dollar, but you will want to learn the facts about the car before you shop. With the recent surge in the used car market, the Better Business Bureau warns consumers that there are scam artists out there who willing take advantage of unsuspecting buyers.

The BBB offers the following advice to avoid becoming a victim of used car fraud:

* Be aware of odometer tampering. The National Highway Traffic Safety Administration (NHTSA) estimates that consumers lose billions of dollars a year to odometer fraud. Odometer readings may be rolled back or documents can be forged. Making miles disappear helps increase the car’s value to the seller, but can mean increased maintenance and repair costs to the buyer.

Before deciding on a used car, do the math. Industry standards claim the average vehicle accumulates about 12,000 miles per year. If the mileage seems excessively high or low in comparison, find out why. Ask the seller if you can see the maintenance records and compare them with the mileage on the odometer itself. Examine the car for telltale signs. Is wear on the car’s pedals, tires and seats consistent with the miles displayed on the odometer? Obtain a detailed vehicle history report. If the seller cannot provide this information, you can use the vehicle’s 17-digit vehicle identification number (VIN) to secure a history from either the state or a private vehicle history company. You can search the web to find companies providing this service by looking under the topic of “vehicle history.”

* Watch out for damage disclosure, salvage and rebuilt titles. These titles are issued by states when the car has sustained damage as a result of one or more incidents. Salvage titles are issued by the state when an insurance company takes possession of a vehicle as a result of a claim. This usually occurs when a vehicle has been declared a total loss. A rebuilt title may be issued if a vehicle sustained damage and was rebuilt or reconstructed, then placed back on the road. Junk titles are issued when a vehicle is not road worthy and cannot be titled again in that state.

* Be careful of individuals selling used cars from a vacant lot or from the side of the curb. These vehicles may be sold by con men posing as private individual sellers. The car can come with hidden problems. Before buying any used car you should thoroughly research the car and the seller. Contact the Better Business Bureau.

In the wake of a major flood in your area, the Better Business Bureau urges new and used car buyers to be cautious of unscrupulous businesses and individuals who may try to sell flood-damaged cars without revealing the vehicles’ history.

The BBB recommends the following tips to help consumers determine if a car is flood-damaged:

* Ask to see the title of a used car. Check the date and place of transfer to see if the car came from a flood-damaged state and if the title is stamped “salvage.”

* Check all gauges on the dashboard to make sure they are accurate, and to look for signs of water.

* Test the lights, windshield wipers, turn signals, cigarette lighter, radio, heater and air conditioner several times to make sure they work. Also, flex some wires under the dash to see if they bend or crack, since wet wires become brittle upon drying and can crack or fail at any time.

* Check the trunk, glove compartment, and beneath the seats and dash for signs of mud, rust or water damage.

* Look for discolored, faded or stained upholstery and carpeting. Carpeting that has been replaced may fit too loosely or may not match the interior color.

* Check for a well-defined line, or watermark, and for musty odors resulting from mildew.

* Check out the reliability of the dealer by contacting the Better Business Bureau where the company is located.

* If the car’s history seems suspicious, ask the dealer or individual directly if the car has been damaged by flood water.

* Before buying any used car, always get a pre-purchase inspection by a trusted mechanic. The extra cost may save you money in the long run if major problems are discovered.