Usually when we purchase a new or used vehicle from a dealership, they offer some sort of extended warranty, but do they save you money or cost you money? Let’s take a look.

Certified Used Cars:

When a used vehicle is labeled as being Certified, this means an extended warranty is placed on the vehicle before you purchase and this extended warranty comes straight from the manufacturer, thus it isn’t something you’ll be expected to pay extra for from the dealership.  A Certified warranty is backed by the original manufacturer and the dealership has inspected the vehicle to be certain it meets specific standards. Keep in mind that not all used vehicles qualify to be Certified. 

Extended Warranties: New Vehicles

When you purchase a new vehicle, will you be keeping it for longer than the standard factory warranty? For instance, if the standard factory warranty is 3 years or 36,000 miles whichever comes first and you’re set on keeping the vehicle for 2 or 3 years, it doesn’t make much sense to purchase an extended warranty since you wouldn’t have an opportunity to use the extended warranty, anyway.  On the other hand, if you have long term plans for your vehicle and intend to keep it for as long as possible, buying an extended warranty is a very good idea.

Extended Warranties: Used Vehicles

When you’re purchasing a used vehicle and considering purchasing an extended warranty for the vehicle as well, it’s important to educate yourself and ask questions.  Since these types of warranties vary greatly, you’ll want to know up front what the standard warranty from the dealership will cover on your used vehicle. Warranties of this type can range from as little as 30 days or 1000 miles (whichever comes first) to longer periods of coverage. Also ask the dealership if a portion of the original manufacturer warranty is still in effect (on some newer used vehicles, this is often the case).  Either way, if you’ll be keeping the vehicle for some time to come, it’s a good idea to purchase extended warranty protection.

Coverage:

Extended warranties vary in coverage, so be sure you understand exactly what you’re getting. Some extended warranties will only cover serious problems, like transmissions, while others may be so great they’ll cover everything right down to the electric windows and rear defroster. It’s to your benefit to understand everything before signing and if you’re still unsure or don’t understand, don’t be afraid to ask questions.  When I recently bought my used car, I asked a lot of questions about different extended warranties until I made certain I understood exactly what I would be paying for.

Cost:

Extended warranties also vary in price, so be sure you know exactly what you’re paying for. Also keep in mind that purchasing an extended warranty from the dealership means extra money in their pocket, so compare prices and understand the coverage before signing on the dotted line.

The Final Decision:

Eventually, the decision to purchase an extended warranty comes down to you.  Do you feel comfortable purchasing an extended warranty based on the condition of the vehicle? Once you can determine whether the cost of any potential breakdowns or repairs down the road could possibly exceed the cost of the extended warranty, you’ll know what to do.  This is why it’s imperative that you find out all you can about the vehicle you’re hoping to purchase.

Tags: Car Shopping, General, Guides

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Did you know that most American made car horns beep in the key of F or that the average driver spends approximately two weeks of their lives waiting for traffic lights to change?

Since it’s the weekend, I thought I’d go light today and share some cool facts about cars. 

This list was compiled from various sites around the web:

1) The first cars did not have steering wheels, so drivers steered with a lever.
2) The New York City Police Department used bicycles to pursue speeding motorists in 1898.
3) The first speeding ticket was issued in 1902.
4) In 1916, 55 percent of the cars in the world were Model T Fords.
5) The first gas gauge appeared in cars in 1922.
6) In 1923, 173 new inventions by women for cars had been reported among these were a carburetor and an electric engine starter.
7) The first car radio was invented in 1929.
8) Buick introduced the first electric turn signals in 1938.
9) The Peanuts characters were first animated in 1957 for a Ford Fairlaine automobile commercial.
10) Most American car horns beep in the key of F.
11) On average there is about 3,000 feet of electrical wiring in every car.
12) If you drove at 100mph for four years you would still not cover every stretch of road in the USA.
13) Car airbags explode at 200 miles per hour.
14) British Petroleum makes a profit of £3,800.00 per second!
15) On average a human being spends two weeks of their entire lives waiting for traffic lights to change.
16) The first person to be killed in an auto accident in the United States was Henry H. Bliss, a 68-year-old real estate broker. On September 14, 1899, in New York City, Mr. Bliss stepped from a streetcar, turned to assist a woman passenger, and was hit by a cab.
17) The 1st automobile racetrack in the US was the Indianapolis Motor Speedway which consists of 3 million cobblestones.
18) In 2003, 17,013 people were killed in alcohol-related crashes in the United States. This amounts to one death almost every half-hour.
19) The city with the most Rolls Royce’s per capita is Hong Kong.
20) The first product Motorola started to develop was a record player for automobiles. At the time, the most known player on the market was the Victrola, so they called themselves Motorola.
21) The number of cars recycled in 1997 alone – nearly 13 million – would cause a traffic jam circling the Earth more than one and three quarter times.
22) Recycling just one car saves 2,500 pounds of iron ore, 1,400 pounds of coal and 120 pounds of limestone.
23) Virtually every car taken off the road today is recycled – thanks to the steel and iron content!
24) It takes about 45 seconds to shred the average automobile into fist-sized pieces of steel for recycling.
25) The automobile is the most recycled consumer product in the world today.

Tags: General

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Yesterday, I wrote about what I call No Trade Deals, which are deals many dealerships in my area seem to be offering these days when potential cash buyers don’t have a trade in.  I believe this is because with so many older model gas guzzlers sitting on the lots already, dealerships seem pleased when a trade isn’t on the table and thus have been offering sweet deals on new or used cars to cash buyers.  These days, and because of the economy and soaring fuel prices, your older model trade in may not make much of a difference simply because dealerships are already overstocked with older models or those which aren’t fuel efficient.

So, what can you do with an older model vehicle you no longer drive, has no trade in value and has probably seen better days?  While you can attempt to sell it to a private buyer at a fair price, if it’s in need of some repairs, isn’t the classiest ride on the block  or you can’t even pay your best friend to take it off your hands, don’t despair – you can donate it to charity!

There are many charitable organizations to choose from – most in desperate need of vehicles – so this could be your best choice and you’re giving back to your community, too. What could be better?  Besides, when you donate your vehicle to charity, the organization will usually pick it up (whether it’s running or not) and don’t forget – your donation is tax deductible!

Here are some community charities to consider:

Animal Shelters/Rescue Leagues
If you’re an animal lover, you can donate your vehicle to an animal rescue organization, such as the Animal Friends Rescue Project or a local humane society or animal shelter in your area.

Groups/Organizations

Contact the Boys and Girls Club, Family Crisis or Emergency Centers,  a local shelter for women and children, your local YMCA, youth groups and youth shelters or any church in your area.

Specialty Organizations

You can also donate to organizations such as The American Council of the Blind, Goodwill, United Way, Disabled Veterans and The American Red Cross.

Finding a new home for your used vehicle is as close as your phone or internet connection.  Look in your phone book under Charities or Community Organizations or you can do an internet search for these organizations in your area. You can also use your search engine to type in Car Donations or Cars for Charity since many web sites allow you to search for organizations by state.

Have you donated a car to charity?

Tags: Advice, General

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Frequenting dealerships in my area lately in search of the perfect car, I came upon a situation I had never encountered before; it’s a little thing I call the ”No Trade Deal.” 

In years past, if a buyer had a vehicle to trade, dealerships would allow a trade-in value and take the amount of that value off of the price of the newer vehicle. This made it much easier for the buyer to get rid of the older vehicle while at the same time, allowing the buyer to save money since the trade-in value would be taken off the top of the price of the car in negotiation.

The last few weeks, I’ve encountered something very different.  I’m not certain if there’s a name for the new savings, but I call it the No Trade Deal.  In 6 out of the 9 dealerships I’ve visited since May, they all offered me great deals and not because I was a cash buyer, but because I didn’t have a vehicle to trade in.  At first, I was mystified, but by the second dealership, I began to see the light.  Since the majority of dealerships I visited were overstocked with older model cars, trucks and SUV’s and all with crappy gas mileage, the last thing they wanted was more of the same.  That said, most dealerships were jumping for joy when they learned I was looking to buy without looking to unload and as such, they were more than willing to offer deep discounts on any vehicle they had in stock - new or used.

I spoke to a salesman who told me that large trucks, SUV’s  and even mini-vans weren’t moving, as well as mid-sized sedans that cost more to fill up at the pump.  Of course, this makes sense; with fuel prices currently at $4.00 in most areas and climbing as well as the summer months stretching out before us filled with vacations, holidays and road trips, people are looking for economy, fuel efficiency and a better way to get around town and no doubt, the Ford F-150 or the Pontiac Aztek probably isn’t the best way to do it.

The smaller cars, such as the Ford Focus and Ford Fusion, as well as almost any Toyota, Nissan, Volkswagen and Honda are, in one salesman’s words, Flying off the lot as soon as we get them in, and this included both new and older models of the smaller, fuel efficient vehicles. In my quest to find one of the above cars, I tend to agree with the salesman, specially since it’s been next to impossible for me locate even an older model, fuel efficient car in my area – and by older I mean anything between 2002 through 2006.

So, for cash buyers who don’t have a trade-in, now is probably a great time to get in on the No Trade Deals.

Has anyone experience anything similar in their area?

Tags: Advice, General

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As some of you know, I’ve been shopping for a nice, solid used car that gets good mileage, is within my budget and isn’t laden with an abundance of miles on the odometer.  To say the search in my area has been easy would be lying.   Anybody can walk into a dealership, point to a car and say, I want that one, but since I’m working with a budget and a list of criteria in a smaller metropolitan area, my experience hasn’t been so luxurious.  Like finding the perfect man, a girl has to kiss a lot of frogs before finding her prince and it’s no different when you’re looking for the perfect car you have to visit a lot of dealerships, take a lot of test drives and talk to a lot of salesmen before you find the car that’s right for you.

If you’re planning a trip to the dealership or if you’re on the look-out for a used a car, here are some things to pack in your personal shopping kit: 

Drivers’ License

Don’t leave home without it.  Most dealerships will not let you test drive without one and they almost always ask to make a copy.

Notebook

Second to your drivers’ license, this is probably the most important thing you can take with you on your car buying travels. You’ll need it to take notes, write down information and comparison shop. When you’re researching online or browsing though the automotive section of your local newspaper, use the same notebook to jot down information that’s important to you, such as VIN, make, model, mileage, etc.  Also use the notebook to write down names of salesmen or individuals you speak with over the phone and any important information they may give you. When you use the same notebook for research both at home and at the dealership or when visiting a private owner, it’s easier to compare or refer to your information at a glance. 

Penny

You’ll want to have a penny to check the tires. This is easy just insert the penny in the groove of the tread with Lincoln’s head upside down. If you can see all of his head, it’s time to replace the tire.

CD

If you’re looking to buy a vehicle that comes equipped with a CD player, it’s a good idea to take one with you and pop it in the player just to make sure it works.

Paper Towels or Cloth

You’re going to want to check the oil and transmission fluid in any car you’re seriously interested in, so having paper towels, cloth or an old rag is a handy way to do it on the spot.  Open the hood, check the oil level and give it a look. If the oil seems thick or has a milky appearance, it can be a sign of engine trouble. Check the transmission level and note the smell.  If it smells like burnt toast, it could mean a bad transmission, and like the possible engine trouble above, this is an expense you’ll definitely want to avoid.

Calculator

I can’t tell begin to tell you how much math I’ve done in my head or scribbled in my notebook over the last two weeks, but I finally got wise and bought a small leather bound notebook which came with a calculator located in the front pocket.  I used the calculator to determine fuel cost (MPG divided by fuel capacity x cost of fuel per gallon x my approximate mileage per week), but you can also calculate interest rates, approximate payments, etc.

I’m sure I’ve missed a thing or two, so can you offer more suggestions?  What do you take with you?

Tags: Advice, General

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