Auto Warranty News

Ford just unveiled the SmartGauge dashboard system, which will help motorists improve their fuel-efficiency.  This system works by alerting drivers when they are practicing positive driving habits.

Basically, drivers will be provided with feedback, with various information levels available, which range from the “Journey” basic mode to the “Empower” mode, which is more detailed.  Graphics will be displayed on the screen that gauge such things as fuel economy and engine performance, providing more information to drivers that will allow them to stretch out every gallon of gas.

One of the most challenging issues that Ford has dealt with in developing the dashboard system is driver distraction.  In early versions of the system, the screen appeared much too cluttered and demanded an unsafe amount of driver’s attention.  Designers solved this problem by changing to a “leaf-based” readout.  The screen puts up more green leaves if the motorist is saving fuel, which makes it easy to distinguish between fuel-efficient and fuel-wasteful driving.

The SmartGauge dashboard system is going to debut in the 2010 Ford Fusion and Mercury Milan hybrids.  This device will allow consumers to save money on gas, which will allow them to spend on other important things, such as car maintenance and an auto warranty.

For drivers who are sick of paying the high fuel prices and who aren’t willing to wait for automakers to put affordable electric cars on the market, CNN has reported that car owners are doing conversions on their gas powered vehicles to make them electric powered.

The conversion has been described as “surprisingly easy”, which involves taking out the guts of the vehicle, such as the exhaust system and radiator, and making replacements to some, like the fuel injector, with components that are electric.  Of course, you could only say this process was “easy” if you regularly do engine swaps.  Many drivers don’t even know how to change their oil on their own.

Supporting this industry of do-it-yourself are suppliers that sell the parts necessary to complete the conversion, like Electric Vehicles of America.

Once you do that work, the car should be equipped with lead-acid batteries, since lead-acid batteries remain very expensive at $10,000-$20,000.  A truck that is small and has 20 6-volt batteries will reach a speed of 60 mph and run for approximately 40 miles.

Before undertaking a conversion such as this, make sure you know that it will make your auto warranty become null and void.  Also, messing with the inner workings of you vehicle can be extremely dangerous if you don’t have any experience.

College students who live far from their school find it hard to commute on a daily basis.  It can be tough to wait for a bus, as well as time consuming.  Having a vehicle can help a great deal in this situation.  But students are usually tight for cash, so they need to get car loans for students.

Students need to plan their budget well.  Purchasing a pre-owned vehicle is a great option for students because they are cheaper than new vehicles.  Of course there are other expenses, such as insurance, maintenance, used car warranties, and fuel that come along with car ownership.  So, it is necessary to consider these factors when calculating the cost of buying a car.  Car loans for students are designed so that students can repay them without problems.  Loans such as these are offered through banks and financial companies.

Students with poor credit are even eligible to apply for car loans for students; however, their interest rate will be higher.  To make the interest rate lower, students can arrange to have a co-signer.  Auto loans for students are considered secure because if the student can’t repay the loan, the lender will take the car, and it will be sold to recover the loan amount.

Luckily, as of now, not all of the economic news is tragic.

According to economists from Comerica Bank, vehicles have currently become more affordable than has been seen in 28 years. So, the last time vehicle shoppers’ purchases made up this small of a piece of his or her income, fuel prices were higher than ever and comedians were telling jokes about how old presidential candidates were.

Comerica says that the average cost of a light vehicle currently is $27,704, including new car warranties, and the average amount of money that people spent on a vehicle fell $700 this quarter, to approximately $23,900. Motorists have been keeping their payments down by stretching out how much time they will take to pay it off, which is currently more than 62 months.

Incentives have started the trend, which continue to get better as dealers try to get rid of inventory (they especially look appealing if you want to purchase an SUV or truck), but for the most part, motorists have just begun to want less-expensive models.

Car dealers have haggled with car shoppers for years. This practice has allowed salesmen to con buyers into buying cars and new car warranties, using all kinds of negotiating strategies. But car dealers have paid for it by being known as untrustworthy.

Some dealers are changing their old ways by dumping haggling. The eighth largest chain of dealers in America, Lithia Automotive Group, announced that they are going to make all 108 of their stores haggle-free within three years.

Toyota’s Scion has implemented a policy for no negotiation from its onset four years ago. This has prompted dealers who sell Toyota vehicles to apply the one-price approach.

And all over the country, independent dealers who carry various brands of domestic and foreign vehicles are teaching their employees to sell cars like the rest of the retail world. In other words, cars come with a price tag and a smile from the salesperson.

This no-haggle method will make buying a car a more pleasant experience for consumers. Now that people can look up a car’s base price online, they don’t have patience for haggling. In addition, people are able to compare the prices of new car warranties online.

California’s Air Resources Board withdrew its stringent mandates for vehicles with zero-emissions, in favor of hybrids that are charged with mainly electricity.

California is the biggest and most important car market in the world.  In fact, over 2 million vehicles are purchased in the state every year. Consequently, the most new car warranties and auto loans are also sold there. Its pollution stance has had an influence on countries all over the world.  For the last 18 years, the board has required GM, Ford, Chrysler, Toyota, Nissan, Honda, and VW to up production and sales of zero-emissions cars.

Auto manufacturers have tried to fight the rules, which are, and have been tough.  They were developed originally to put out 25,000 zero-emissions vehicles between 2012 and 2014, however the board realized that this is an impractical goal.  Now, carmakers have been offered a 70% cut in the original figure, with a new requirement to produce 7,500 zero-emissions cars.

In exchange, manufacturers must produce 58,000 hybrids that are plug-in in that same period of time.  If they do this, they must in addition produce 25,000 zero-emission cars between 2015 and 2017.

In the oil industry there is an economic term that is quite sinister-sounding being thrown around: “Demand destruction.”

Demand destruction is when the price of a product is looked at comprehensively as too high, therefore causing demand to tank.

So, why would the oil industry be concerned about this?  Well, the fact is that since the summer of $4 per gallon gas, demand has continued to stay low.  American motorists have pretty much completely stopped purchasing cars that get low-mileage and have given up on large gas-guzzlers, even since oil prices have fallen drastically. Many motorists are just holding onto their current vehicles and purchasing used car warranties. People are still driving fewer miles, even as gas prices go down.

Whatever the cause may be of the summer’s oil spike, it seems that there is no going back.  The most solid sign of demand destruction is carmakers’ shift to vehicles that are more fuel-efficient.

It might just be that the most oil-hungry country in the world has finally had enough, or maybe OPEC and the oil industry are driving down prices again as quickly as possible, hopeful for one last hurrah.

The decision to buy or lease can be a difficult one.  Car shoppers should consider more than just their budget.  Typically, leasing tends to be cheaper, but it also leaves drivers with no equity after the contract is up.  There are some important factors to keep in mind when making this important decision.

First, you should look at the cost.  Consider four factors when you’re thinking of leasing.  These are the leases length, the payments monthly, the mileage restrictions, and the down payment.  If you exceed the restrictions on the mileage you could ring up big fines.  Also, if you hold onto a lease for more than three years you will often have to replace tires and pay for other maintenance.

Next, take a good look at your budget.  Leases are almost always cheaper for short-term because there isn’t a down payment and the monthly costs are low.  However, leases end up being more expensive than buying a vehicle that you are going to keep for a decade.  This is assuming that you purchase an auto warranty with your car so that you don’t end up paying unnecessary expenses.  But if drivers prefer to have a new car every three years, leasing is the way to go.

Also, you need to consider your life plans.  If you are going through life changes, such as moving far away, or starting a family, you are going to benefit from leasing.  This will provide you with the flexibility that you need.

Consider these factors and make a decision to buy or lease based on your needs.  Just remember, if you buy, you want to be covered with an auto warranty to save you money on unnecessary repair costs down the road.

One tactic that people use to sell a pre-owned car is to detail it until it looks brand new.  However, beware, a motor that is steam-cleaned won’t fix a gasket that is blown.  This is why it is important to purchase an auto warranty.

Having said that, dealerships that are reputable typically won’t try to sell cars with big issues, for fear that they’ll have to fix them down the road.  If you test drive a vehicle that doesn’t make awful noises and feels pretty good, chances are it is fine.  Dealers don’t like to sell junky cars.

However, it is still a smart idea to have a trained professional take a look at your vehicle.  If the dealer claims the vehicle was inspected by it’s mechanic, request to view the paperwork.  If the dealer can’t produce them, make sure an outside technician sees the vehicle.

Also, it is important to check that the car has a clear title and that it hasn’t ever been in a big accident.  You can tell the dealer to go on Carfax or AutoCheck to confirm this.  Both of these sites have a fee to trace the car identification number for odometer and service registrations, and accidents.  However, often dealerships will check the vehicles on their lot free of charge.

Typically, it’s safe to buy a used car from a dealership; however, it never hurts to take these quick steps to ensure you don’t get a lemon.  In addition, used car warranties will give you peace of mind in case you need repairs.

Unfortunately, bad news keeps coming from Chrysler.  The carmaker just made an announcement that its assembly plant in Newark, Del. will shut down at the end of 2008 indefinitely.  The shutdown of this complex will result in 1,000 people losing their jobs.  This plant produces the Chrysler Aspen and the Dodge Durango, which are two full-size SUVs.

Chrysler officials haven’t yet said if this will be the end of those SUVs, or if they are going to be produced at another plant.  However, knowing that it would be costly to move production of the SUVS, it is likely that the two might be discontinued.

What does this mean for motorists?  This is likely, the elimination of two SUVs in an already diminishing segment.  In the meantime, the Dodge Durango and the Chrysler Aspen Hybrid were launched last August as Chrysler’s first attempt at hybrid cars.  These are the least expensive full-size hybrid SUVs out there, which each start at around $45,000 including new car warranties.