Car Insurance

“Luxury cars for under $1,000….Mercedes-Benz, BMW, Ferrari, Jaguar….Purchase all these for literally pennies on the dollar!…Your government is practically giving these luxury goods away.”

The ads are enticing, whether you spot them in local newspapers, view them in an infomercial or come across them on the Internet. And, for many people who are looking to purchase a car, advertised auctions appeal to their desire to avoid price negotiations or comparison shopping among dealerships.

Before even setting foot at the auction, some consumers fall victim to fraudulent marketing of auto auction guides. They are led to believe that, for a $50 or $100 fee, they will receive a priceless guide listing hundreds of auctions and the secret key to saving thousands of dollars. If they do in fact receive the promised guide, it is typically filled with only general information about auto auctions and their addresses and phone numbers. This information is available free or at low cost from the federal government!

Before responding to an ad promising the inside scoop to government auctions for automobiles or any other property, the Better Business Bureau advises consumers to:

* Check with the federal government first.
* Look for information about upcoming sales in the classified or business sections of national or local newspapers or in notices at post offices, town halls and other local and federal government buildings.

If you do decide to purchase your next vehicle at a government auction, the BBB advises the following:

* Stories about exotic cars sold for little or nothing are pure fiction! As the U.S. General Services Administration advises: “There are no giveaways…GSA expects to receive a fair market price, and every item has an undisclosed minimum price.”
* The cars are not new and their condition may vary.
* The government does not provide any form of financing. Check with the government agency beforehand for acceptable forms of payment.
* There are no guarantees. The federal government does not guarantee the condition of its sale items, and is not responsible for any problems that may be identified after the sale.
* Become familiar with the common types of auction sales (sealed bid, auction, spot bid and fixed-price sales) and know which method will be used by the government agency that is auctioning the vehicles you are interested in.

Whether you’re planning transportation for a wedding, prom or for an important business associate or client, being well informed is the key to having a safe and satisfying ride. To reduce the risk of a no-show, getting poor service, or not getting what you expected, the Better Business Bureau (BBB) recommends the following tips before hiring a limousine service provider:

* Check references. Choose an experienced, reputable company with numerous references. If a company can demonstrate that they have successfully operated for many years and has a solid reputation for quality and safety, you are probably in good hands. Contact your BBB for a reliability report.

* Ask for proof of insurance. Operators should be eager to provide proof of valid, current insurance coverage for their fleet. Be aware that some limousine service providers insure their vehicles under a personal auto policy, if at all. Personal auto insurance policies rarely cover the clients who hire the vehicle.

* For service taking you or your party across state lines, check with that state for regulations and compliance. In some states, the vehicle can be stopped and immediately impounded if found not in compliance.

* Seek quality chauffeurs. A professional chauffeur is equally as important to the success of your event as a nice vehicle. Choose a provider that places a high value on the caliber of their chauffeurs.

* Get everything in writing. Special occasions, such as birthdays, weddings and proms, commonly require personalized attention to your specific requirements. The more specific your requirements, the further in advance you should reserve and pay for your limousine. When doing so, insist on a written contract that clearly states all details of your reservation.

* Know your rights. Inquire about the company’s cancellation policy and get a copy in writing.

* Look before you buy. If you haven’t used the provider before and time allows, visit the company in person before hiring them. The time to find out what you’re getting is not on the date of the special occasion.

Before purchasing any used car, be aware of the following:

* Inspect the car in daylight and good weather. Bring someone you trust along to help you make a thorough appraisal;
* Don’t expect perfection in a used car. Compromise on minor problems you can fix yourself, but don’t overlook serious defects;
* Make safety a major priority. Older vehicles may not be equipped with airbags, child safety seats, seat belts, anti-lock brakes or security systems. Determine your locality’s vehicle safety requirements for cars, mini-vans, recreational and sport-utility vehicles and other vehicles before you buy;
* Road test before you commit to buy. If you are not allowed to test drive the car, do not buy it.
* Have a Trusted Mechanic Thoroughly inspect the car before you purchase it.

* At Start up—The car should start easily and without excessive noise. Once the car has warmed up, listen for engine noise as you drive; unusual sounds may be signs of major trouble. It is important that you listen to the car’s engine, transmission, brakes, etc. Since you are interested only in a mechanically sound car, any noise that sounds strange or unusual should be a warning signal.
* Test Drive—Drive on a variety of roads — city street, freeway, two-lane highway and rough paved and unpaved surfaces. Does the car accelerate and decelerate well? Watch for unusual vibrations, noises or odors.
* Pick Up—Make several stops and starts, at varying but safe rates of speed on a clear, level road surface. The car should accelerate without hesitation and should brake without grabbing, vibrating or pulling to one side. When you step firmly on the brake pedal, it should feel firm, not spongy. Have a companion look at the exhaust while you let the car decelerate from 45 mph to about 15 mph, then step hard on the gas. Blue smoke may mean worn rings or valves; white smoke may be a cracked block.
* Steering—Try turning at various speeds. Too much sway or stiffness can mean bad shocks and/or front-end problems. Turn the wheel all the way from one side to the other; power steering should feel smooth with little or no squealing.
* Frame and Alignment—If you suspect a car’s structural condition, have the vehicle checked for frame damage from a local tire alignment dealer. A car with a bent frame can be dangerous and its value greatly reduced.
* Odometer Accuracy—Look for signs of odometer tampering: white lines between the numbers that do not line up or vibration of the 1/10 mile numbers while the car is moving.
* Get A Thorough Inspection—Have a mechanic inspect the car. Take the car to a reliable repair shop or auto diagnostic center and have the mechanic give it a once-over. You will have to pay for this service, but the money you invest up front may save you many more dollars down the road. Ask for a written estimate of the costs to repair any problems the mechanic finds, and use that estimate as a bargaining chip when you make your offer for the car. In some states an official state inspection may be legally required. Check with your Department of Motor Vehicles for specific laws in your locality. (A complete state-by-state listing of Departments of Motor Vehicles can be found online at www.usps.gov/moversnet/motor.html.)

CLOSING THE DEAL
Before signing a contract or purchasing a used car, you should do the following:

* Take your time to read and understand the entire written agreement.
Ask questions. Don’t sign unless you are satisfied with the answers.
* Be sure that all blank spaces are filled in, that all of the salesperson’s verbal promises are included, and that the type of warranty that comes with the car is spelled out.
* If you are required to make a deposit, ask whether it is refundable, and under what circumstances, and make sure the information is also included in the contract.
* Be sure to get a signed statement verifying the mileage at the time of sale. Most state laws require dealers of used cars to provide the buyer with this information in writing.
* Know your state’s requirements concerning emissions inspections; certified state auto inspections; child safety, seat belt, and airbag requirements; and title transfers.

Keep a sharp eye out for the following as you get your first look at a used car:

1. Body—Look for rust, particularly at the bottoms of fenders, around lights and bumpers, on splash panels, under doors, in the wheel wells, and under trunk carpeting. Small blisters may indicate future rust sites. Check for paint that does not quite match, gritty surfaces, misaligned body panels and paint overspray on chrome — all possible signs of a new paint job, masking body problems. Look for cracks, heat-discolored areas, and loose bumpers — warning signs of a past accident. A welded seam may mean that the car is actually a body shop’s “rebuilt” creation from salvaged parts. Look for welded seams in the trunk and on the floor; bumps under the paint around the windshield or rear window, or between doors, may indicate a rough welded seam beneath the paint. Also, look for hail damage. If the vehicle is dirty, have it washed for a better inspection.
2. Tires—Uneven wear on the front tires usually indicates either bad alignment or front suspension damage. Uneven wear on late model cars with radial tires may signal improper tire rotation. Do not forget to check the condition of the spare tire and make sure the correct jack is in the trunk and in working order.
3. Battery—Look on the sticker for the guarantee date. A battery generally needs to be replaced after 25,000 miles.
4. Doors, Windows, Trunk Lid—Look for a close fit, ease of opening and closing, and secure latches. A door that fits unevenly may indicate that the car was involved in a collision.
5. Window, Glass and Lights—Look for hairline cracks and tiny holes.
6. Tailpipe—Black, gummy soot in the tailpipe may mean worn rings, or bad valves and possibly expensive repairs.
7. Shock absorbers—Lean hard or “bounce” on a corner of the car and then release it. If the car keeps rocking up and down, the shocks may need replacing.
8. Fluids—Oil that is whitish or has white bubbles may mean that water has been introduced into the system and this can be a sign of major mechanical problems. Check the radiator fluid; it should not look rusty. With the engine idling, check the transmission fluid; it should not smell rancid or look dark brown. Check for leaks and stains under the car, on the underside of the engine, and around hoses and valve covers.
9. Mechanical Parts—Be sure all headlights, taillights, brake lights, backup lights, and directional signals work properly. Test the radio, heater, air conditioner, and windshield wipers.
10. Interior—Check the upholstery for major wear and tear; look under floor mats and seat covers. Check the adjustability of seats and make sure all seat belts work. Check the locations and working order of airbags. Ask whether they have ever been deployed. Check the steering wheel; unlocked, with the engine off, it should have no more than two inches of play. Lots of wear on the driver’s seat and/or heavy wear on the brake and accelerator pedals of a car with low mileage may indicate tampering with the odometer.