CWC

03/23/2013

5 Tips for Increasing the Lifespan of Your Used Car

Published Monday, 20 August, 2012 by Blog Admin. Categories: Used Cars, Used Car Dealer, Used Inventory.

Even though the national economy continues to improve steadily, the damage to consumer confidence has already been done and will take a lot longer to recover than the GNP. As a result, the novelty of owning a brand new car has worn thin for many drivers and used cars are a more popular prospect than they've been for many years. Add this to the fact that, according to Kelly's Blue Book, new cars cost an average of 11.5 percent more than a similar new model and the case for buying used becomes even more water (or oil) tight.

On the whole, consumers are also less likely to part with their vehicles in the interests of trading up for a newer model with many fully intending to drive them until the wheels fall off. This makes researching and finding low-mileage used cars in good condition seem like a much better option than driving off the lot in a shiny new vehicle.

With such a new appreciation for used cars becoming apparent, the team at Rocklin Auto Brokers of Roseville, CA felt like it would be a great time to offer up some maintenance tips for increasing the lifespan of used cars:

1.) Regular Oil Changes: Depending on manufacturer recommendations, and the type of oil you choose to use, most cars should have an oil change every 3,000 - 5,000 miles. Synthetic oil is more expensive but will reduce your required number of yearly appointments. These can be performed at dealerships, independent garages or service chains and the vast majority of providers offer other common maintenance services that will help keep your used car in top condition.

2.) Immediately Address Issues: Strange car noises, wobbly rides and shuddering steering wheels can be symptoms of much larger problems. Don't wait for the weird whistle to become an engine fire before getting under the hood. Nip potential vehicle problems in the bud. Like right now, Mario Andretti.

3.) Never Ignore the Check Engine Light: This tip probably doesn't require a long explanation. The light is there for a reason, something unfortunate has triggered it and your car needs to be taken to a mechanic ASAP.

4.) Start an Emergency Repair Fund: Whether it's a coffee can full of fivers on top of the fridge or a proper savings account at your local bank, if you're a used (or new for that matter) car owner it's a good idea to have a bit of money ferreted away for unexpected repairs. Be prepared.

5.) Preventative Maintenance: As stated in tip #1 most garages that perform oil changes also offer a host of additional maintenance services. Have them look at your transmission fluid, brake pads, air filter and other potential weak spots every third oil change or so. Err on the side of caution, spend a little extra and you're almost guaranteed to save that amount many, many times over in the long run.

03/16/2013

Noticing your headlights are shining as bright as they used to even after washing your car?

If so, it's not because your headlights are broken. Taking care of your headlights is actually one of areas of car care that requires the most meticulous level of attention to detail. The reason why is that headlights are made of plastic in order to reduce production costs. This plastic gathers grime, becomes hazy, and is easily scratched. And because it's made of a different material than the rest of your car, typical cleaning methods (i.e., the automatic car wash) don't always work.

The best way to clean your headlights is to use an oxidized formula that's meant for plastics. Such solutions can be found in any store's car care section, and will do a great job removing any imperfections.

If you're still noticing your headlights are dirty after a thorough cleaning, check to see if there's any condensation built up on the inside of the plastic. If so, drain any water out from the inside by removing the cover, and clean out the inside.

You also might notice some scratches don't buff out when using an oxidized cleaner. If that's the case, using plain, white, tarter control toothpaste is a great solution for medium scratches. For ones that are especially deep, soak some light sandpaper in water to sand down the scratch, then use a 3M rubbing compound and buffer pad to level everything out.

03/11/2013

If you’ve purchased a used car from a dealership in the past few years, you’ve undoubtedly encountered the extended warranty option. To be clear, while most of these are described by the salesmen as warranties, most are actually service contracts. A warranty is built into the price of the vehicle, whereas a service contract costs extra and is purchased in addition to the vehicle itself. A warranty and service contract both generally achieve the same goal, just keep in mind that if you have to purchase it on top of the vehicle itself, it’s probably a service contract.

On the surface, the added protection of covering your vehicle for an extended amount of time seems like a good idea, but before you jump in, make sure you understand what you’re getting yourself into. These are products that are pushed because they make money for the dealer and salesperson. There are times when buying the service contract can be a great idea and save you money, but there are plenty of situations where it is completely unnecessary and will just end up costing you money. And worst of all, there are actually some companies that are little more than scams.

Consider Your Situation First

Before you decide on whether or not you could use an extended warranty or service contract, consider your situation. First, does the vehicle you’re intending to buy have an existing manufacturer’s warranty that will carry over to you? If so, how many miles or years are left before it expires? Many auto manufacturers are including longer warranties that in most cases are transferable. So, if you’re buying a car with a 70,000 mile existing warranty and it has 15,000 miles on it when you plan on buying it, that’s entirely different than buying the same car with 65,000 miles on it. In the first scenario, buying the extended warranty would be a bad idea with so much life left in the existing warranty, whereas the second scenario might point to an opportunity.

Consider the Cost

To be blunt, many of these service contracts are expensive. That doesn’t automatically mean they are all a rip off, but you do need to consider the likelihood of needing repairs, what those repairs would cost, and then determine if it makes sense. Depending on a number of factors such as what is covered (i.e. is it comprehensive, or just powertrain?), the deductible, and the length of contract, prices can vary from just a couple hundred dollars to a couple thousand dollars.

What you’re ultimately doing is placing a bet that you think your repair costs over the length of the contract will be more than you paid for the contract itself. For instance, if you paid $800 for coverage that will last you about two years, you have to ask yourself if there is a good chance that over the course of those two years you’ll need to have $800 or more worth of work done. If it isn’t very likely, you might as well save your money. But if you think that is clearly a possibility, it might make sense. It’s like buying insurance. You never know if you’re going to need it, and if you don’t use it, it feels like wasted money. But if you do need it, you’re sure glad you have it.

Other Benefits to Consider

Another thing to consider with these types of service contracts or warranties are the possible other benefits. Many will offer a free loaner car when you have to bring your vehicle in for service. That can be extremely helpful if you’re in a situation where you need a car or don’t have many options for sharing a ride. Some may also pay for the cost of a rental car as well. So, if you’re in the shop for a few days, this can be a nice benefit to have.

In addition to getting a spare car when yours is in for repairs, some contracts also provide free towing service in the event you break down. While this isn’t as big of a concern if you have AAA or some sort of roadside assistance, if you don’t have these, it can be a fantastic benefit. Again, it’s something you hope to never have to use, but if you do, you’ll be thankful you have it.

Dealership Repairs vs. Mechanic

One thing you need to consider is the cost difference between dealership repairs vs. having your local mechanic handle it. Obviously, the dealership is going to charge more for parts and labor. It’s what they do. And if you buy a service contract, that generally means you have to take it to the dealer, or at least an approved location in order to have the work covered. Of course, if you have the coverage, you’re not paying for it out of pocket, so you don’t think much of it.

But, that’s where you have to decide if it’s really a value or not. If you’re shelling out money for additional coverage, what would happen if you took your vehicle in to a local mechanic instead? You would have to pay out of pocket, but since you’d be paying less for the same repairs, it still might end up cheaper than buying the service contract to begin with.

My Personal Experience

I’ll give you an example with a personal experience I’ve had with used cars and service contracts. We have two used vehicles. In one case, it was clear that buying additional coverage would be a waste. With the other, it was a little bit harder of a decision. With the second car, it had 23,000 miles, and the manufacturer’s warranty only went to 30,000. Since I would be the one driving and I put on around 18,000 miles a year, the prospect of running out of coverage after just three months from the purchase was the first indication we might want to consider adding coverage.

Then we had to decide what type of coverage we wanted. Just powertrain coverage, or something more comprehensive that covered everything from a broken door latch to the electrical system. Looking back at my scenario, I do a lot of driving, on rough roads, and harsh winters. The chances are pretty good that there will be more than a couple repairs needed over the coming years, so comprehensive was looking like a better option, but that all depends on price.

After all said and done, we were able to get a 100,000 mile service contract for $1,500 with a $50 deductible. Sound expensive? Yep. But, that’s where you have to decide whether or not you think you’ll need $1,500 or more in repairs over the course of 77,000 miles, or in my case, a little over four years. If you’ve ever had to pay for car repairs out of your own pocket, you know just how fast things can add up. So, I felt it was a pretty safe bet given the situation.

Sure enough, after about 8 months, we had a problem with the transmission. Total bill? Around $1,200. A year later, a few more problems developed. The radio wasn’t working right, the seat didn’t recline properly, and just a few other little misc. problems. Another $500. And just a few weeks ago, took it in for a terrible clicking problem with the master relay, a rapidly deteriorating wheel bearing, a leaking axle seal, and a leaking exhaust manifold, for another $1,800.

Now, that $1,500 + $150 in deductibles doesn’t look so bad considering the $3,500 in repairs, and the loaner car for about the 10 total days it’s been in the shop. Could the work have been done cheaper than that by taking it somewhere other than a dealer? Probably. But I also would have been in a situation where I would have had to rent a car, and a small shop may have required more time to get the repairs done. Of course, we could have been “lucky” and the car could have never had any problems, and it would have felt like throwing money away. You just never know.

The Verdict?

You have to be very careful. Any dealer is going to try and sell you one of these. They will make it sound like a great deal, but it’s up to you to do the research to determine whether or not it’s really worth it. I’d say that for most people, given the cost, these warranties or service contracts aren’t going to be worth it. But, if you do the math and find out that it could be beneficial, then it might be worth considering. But don’t let the salesman bully you into a contract.

A better option for most people would be to set aside a “vehicle fund” to work as your own extended warranty. If you put $1,000 or $2,000 into a high-yield savings and sort of earmark that for unexpected vehicle repairs, your money can actually earn interest while it’s there and ready in the event you need it. While you might miss out on some of the added benefits of buying coverage, you’re in better shape if you’re fortunate enough to have a car that doesn’t need any, or only minor repairs.

If your situation warrants it and the price is right, it can be worthwhile. Just make sure you know what you need, how much it will cost, and what you’ll actually get out of it before rushing into a decision. And most of all, read all of the fine print! Make sure you know what’s covered, what isn’t covered, and what all of the limitations are if any.

03/10/2013

I'm glad we could make a deal," the salesman says, shaking your hand.

But just as you've breathed a sigh of relief, you realize that you are being walked into the Finance and Insurance (F&I) office to finalize the contract. Once inside that room, you will be offered lots of products and services that the dealership hopes will recoup some of the money it might have lost as you drove a hard bargain for your car lease or purchase. The F&I manager will try to sell you on things like paint protection, prepaid maintenance plans, theft-recovery systems and a road hazard warranty for your tires. But the biggest product he'll push will be the extended warranty.

An extended warranty is repair coverage that kicks in after the typical manufacturer bumper-to-bumper warranty has expired. This extended warranty will cover most major breakdowns and will — in theory — stabilize the cost of repairs, since the price of parts and labor tends to fluctuate over time. It is important to note that you have the option to purchase this warranty any time before the manufacturer warranty expires. You can even purchase an extended warranty after the manufacturer warranty expires, although the price will go up considerably.

You might already have asked the five questions that should precede the conclusion of a new-car deal. But now it is time to ask yourself five extended-warranty questions. They'll help you decide whether to purchase an extended warranty, and they'll also help you get the best price.

Warm-Up Question: Do you plan on keeping the car for a long time?
This is a common question that the F&I manager will ask, and it's worth your consideration. Do you get tired of a car by its third year? If so, paying for an extended warranty doesn't make much sense, since the manufacturer warranty will still likely be in effect. But if you are one of those people who drives a car until the wheels fall off, the extended warranty might be worth considering. Nevertheless, go through the rest of the questions here before making a decision primarily based on length of ownership.

1. Who stands behind the warranty?
Many dealerships offer third-party warranties from companies with varying track records. If you are going to purchase an extended warranty, make sure it is backed by the automaker, not just the dealership or some other company. You can use a manufacturer-backed extended warranty at any dealership across the country. A third-party warranty might be good only at the dealership that sold it to you.

If you are considering coverage for a specific purpose, such as a road-hazard policy that isn't offered by the automaker, check for online reviews to see what others are saying about it.

2. Have you shopped for the best price?
Of course, no F&I manager will let you shop around while you're sitting at his desk with a pile of purchase paperwork between you. This research is best done prior to your dealer visit on the day that you finalize your purchase.

Get a price quote from the F&I manager for the warranty he's offering. Then shop it around by phone with F&I managers at other dealerships in the same way that you compared prices on the car you're getting ready to buy.

The F&I manager at the dealership that has your car might say that the price of the extended warranty is not negotiable, but that might not actually be the case. If you shop around at other dealers, you'll find that some of them will have a lower asking price for the same product. Or they might be more willing to negotiate.

Take a look at this article to learn the bargaining strategies that an ace negotiator employs when he shops for an extended warranty.

3. Do you know what's covered?
An extended warranty isn't the cure-all the dealer makes it out to be. Many wear-and-tear parts — items that will eventually break or wear out — are not covered by most vehicle extended warranties.

To complicate things even further, many extended warranties come in coverage tiers (silver, gold, platinum, for example), each with its own price and level of coverage. Take the time to read the fine print to determine what is and isn't covered.

You must also determine who will front the cost for the repair bill. Are the repairs fully covered? Do you have to pay a small deductible? Or do you have to pay for the repairs up front and get reimbursed later?

4. Will you have peace of mind if you don't buy it?
The answer here is all up to you. If you're someone who will always have a nagging feeling that you should have bought the warranty, go ahead and get it. Sometimes there's no price tag you can put on peace of mind.

On the other hand, if you are confident that you've purchased a reliable vehicle, you can walk away from the F&I office and not give the extended warranty a second thought.

But what if you don't know anything about the car's reliability? There are a couple of options available here.

Edmunds has reliability information in the used cars section of our site. New-car shoppers should go to the most recent model year available and then click on the "Reliability" link above the "Search Inventory" button. If you are shopping for a used car, just go straight to the year and model you are considering. You might not find the exact model year of the car you're purchasing, but the information on the site can give you a rough idea about that model's reliability. Edmunds does not have records on every vehicle, but the ratings listed are a good place to start. You can also find discussions of vehicle reliability in the Edmunds forums.

A second source is Consumer Reports, which offers reliability reports on a number of vehicles on its Web site and in its print publication. For a fee, you can browse through the reliability ratings it maintains.

5. Have you looked at your repair history?
Consider your own history with vehicle breakdowns. Have your other cars had the kinds of problems that would have been covered by a warranty? If you are considering a road-hazard tire warranty, for example, think about how many times you've had a flat tire. If there is a lot of debris on the roads in your area or if you've had several flat tires in a short span of time, a road-hazard warranty may be worth looking into. But if you can't remember the last time you had a flat, you may not need the coverage.

You also can add up how much you have spent on out-of-warranty repairs in the past and compare the total to the price of the warranty. For example, if you've paid $250 for repairs that occurred out of warranty, weigh that against the cost of the extended warranty.

You're never going to have the same repair history in any two vehicles, of course. But if you are buying a vehicle from the same carmaker, that could be a good indication of what to expect.

Bonus Question: Do you really need it?
A pushy F&I manager can make you feel that saying no to the extended warranty is like playing Russian roulette with your car. You never know when that costly repair "bullet" might strike. But data seems to indicate that most people don't really need extended warranties.

According to a 2011 J.D. Power study, overall vehicle dependability averages are good. Last year's survey had the lowest problem rate since the study began in 1990. In fact, over the past 10 years, the entire auto industry has had an average reliability improvement rate of 8 percent each year.

Nevertheless, some people just aren't willing to take chances. They feel more comfortable knowing that any major repairs will be taken care of. There's nothing wrong with that. If you're a belt-and-suspenders person, just make sure you ask the right questions before you make this purchase.

12/07/2012

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10/13/2012