Used Car Warranties

Purchasing a used vehicle can be a wise financial decision that will allow you to save thousands of dollars, if you take the time to do your homework ahead of time.  This is especially true in these hard times when you are pinching pennies and trying to save on fuel.

New vehicles lose approximately 40 percent of their value within the first few years of leaving the dealership.  At that point, the process of depreciation slows down a great deal until the point it reaches the salvage value of the car.

Buying a good used vehicle allows you to pocket approximately 50% of its original sticker price while benefiting from a fairly new car.  A pre-owned vehicle also has many other advantages.  For example, it has reduced depreciation, and lower costs for an auto warranty, registration, and an insurance premium.

In addition, the cutthroat competition of today has resulted in manufacturers building cars that are more reliable and also carry longer auto warranty periods.  Therefore, it isn’t uncommon to find a car that is three-years old that still has the original auto warranty by the manufacturer.

According to the BMW Blog, the CS Concept that was unveiled at the New York auto show this past spring isn’t going to ever see the light of day in production.  Due to the current problems with the financial market, BMW brass had a change of mind about the possibility of a $100,000-plus-range car.

For car fans this is bad news, but most people buying cars won’t care.  But it is worrisome to car aficionados is the fact that BMW claimed in its cancellation announcement that it’s focusing on profit right now, and not brand identity.  That means that consumers can expect to see more cars like the X1 SUV and not as many statement vehicles.  The company is also claiming that it will be focusing on new technology, which probably means it will be working on engines that are more efficient and refining its iDrive system.

Although many drivers don’t have the funds to purchase a car like the CS Concept, it is sad to see that it won’t make it to production.  However, most people are choosing not to purchase new vehicles right now and instead hold onto their current cars and buy used car warranties.

If you’re looking to buy a cheap used vehicle, you might want to look online.  One website that is a good place to start is Car-Auction.com.  This is an auction website featuring seized vehicles by the government.  Consumers can select what type and model of vehicle you are looking for, as well as the price.  Results will appear within a few seconds.  This is a lot more convenient than attending an automobile auction and waiting to see if the car you want is up for auction.

When you are looking to buy a cheap used car follow these simple tips.

The most difficult part of the process is finding a quality car that you would like to purchase.  People make the mistake of buying a car because they like the way it looks.  You need to get the full history of the vehicle before making an agreement.  Also, get the VIN of the vehicle and do a search of the number through a local agency.  You want to get the vehicle inspected by a professional.

An online auction is a great place to buy a used car. However, beware.  To protect yourself, do your homework to get a good buy and make sure to purchase used car warranties.

Satellite navigation devices, or the popular GPS interfaces that many motorists have in their vehicles, are, seemingly, responsible for a large share of accidents and driving practices that are risky.

With almost half of the motorists on the roads having access to devices such as these in their vehicles, it appears that this technology has penetrated the market.  Drivers who have satellite navigation devices are much more likely to be involved in a minor accident or risky behaviors.  In fact, 1.5 million say that they have engaged in sudden maneuvers, and approximately 5 million admit to going against the flow of traffic.

GPS systems fall into the same category as other car distractions, such as cell phones, kids, the radio, or passengers.  This might be one of the reasons that road safety campaigns say that ‘Good Drivers Just Drive’.

Drivers should pre-plan their trips in order to avoid GPS distractions.  In addition, drivers should protect themselves by purchasing used car warranties, and avoiding other in car distractions.

The AARP, which was formerly the American Association of Retired Persons, supports various goods and services and endorses them for their members; this includes auto insurance.  Recently, Bloomberg news reported some practices that appear to be pretty shady, in regards to their insurance endorsements.

Some members are actually shelling out double for insurance that is AARP-backed in comparison to what the price would be for another plan.  Why would AARP advise them so wrong?  When people pay for their vehicle insurance, part of the premium goes to the AARP as “fees” and “royalties”.  What this means is that AARP gets a cut of each payment before the insurer receives any payment, and since AARP has a large membership base, it’s a pretty lucrative business.

These so called “fees” have leaped from accounting for about 11% of the AARP’s revenue in the year 1999 to about 43% in 2007.  If this organization is intentionally coaxing its members to pay added funds for their insurance to get financial awards, that is definitely shady.  Especially considering all of the car costs that people have to pay these days, such as used car warranties and maintenance.

With the poor economy, motorists are looking a little more closely at used cars.  The National Automobile Dealers Association reports that last year the average cost of a used vehicle was around $15,000, while it was $29,000 for new vehicles.

While you want to purchase a pre-owned car that has a solid reputation for dependability, it’s even more beneficial to purchase a used vehicle that consumers find less popular, because it has already depreciated rapidly.

Many people believe that the best new vehicles make the best used vehicles, which is true in general.  However, often these cars depreciate at a slower rate, which makes them popular as new vehicles, but means they cost more as used vehicles.

According to Kelly Blue Book, the vehicle brands that depreciate the slowest are Mini, Scion, Volkswagen, BMW, and Honda.

Instead of purchasing those models, consider other brands that have high reliability scores, but depreciate more quickly and can save you thousands of dollars.  Domestic brands are good to consider, such as Dodge, Ford, and Chevrolet.  These will get you a bargain.

If you want to save money by buying a used car, consider depreciation. You can get a good bargain by buying reliable, more rapidly depreciating models, and buy used car warranties to give you peace of mind.

It can be tempting to text-message in your car, especially if you’re stuck in traffic.  You assume that there is little risk involved, however, if the person in front of you stops a little faster than you intended, all of a sudden you may find yourself calling your road service program.

Recent studies show that avoiding texting in the car will drastically reduce your chances of getting into a car accident.  In fact, four states are making an attempt to ban driving while texting (DWT).  Washington put a ban earlier in the year on texting while on the road.

Statistics suggest that DWT is a danger that is growing.  In drivers ages 16 and 17, 46% admitted that they have texted while driving.  A study by Nationwide Insurance indicates that DWT is a generational activity.  Out of people ages 18-27, 37% admit to texting while driving, meanwhile, only 14% of 28-44 year olds admit to this.  Also, only 2% of 45-60 year olds said they texted on the road.

Cities around the nation are passing text-message ordinances because of the danger that it poses.  It is best to just refrain from this activity, otherwise you might find yourself calling for emergency roadside assistance.  Drivers should protect themselves by practicing safe driving habits and making sure they have good used car warranties.

GM’s financing arm recently made a decision to give loans only to consumers with the best credit.  This is due to the tightening of the credit market and unstable economy.  Only car shoppers who have a credit score of at least 700 will qualify to get a loan for a car.

The state of California has made it known that it is against the GMAC’s decision, claiming that it will rule out 40% of Californians from getting a car loan, which will result in many dealerships having to file for bankruptcy.

The president of the California Auto Dealer Association wrote to GMAC CEO Alvaro de Molina warning that these strict guidelines would result in disaster for dealerships.  GM already suspects that dealer profits will drop 18% for the year.

Although California’s dealers have been the first to point it out, the new lending rules by GMAC will most definitely have an impact all over the country.  In fact, many consumers will be holding onto their current cars and purchasing used car warranties, because they won’t be able to get car loans.

Governor Deval Patrick of Massachusetts is contemplating putting a tax on big SUVs that are gas-guzzlers.  This tax would have to be paid when vehicle owners go to register their cars after their purchase.  This “Hummer Tax,” as it is widely known, would be used to pay for infrastructure, which Deval claims is suffering from a full decade of neglect.

This tax, which is designed to make car shoppers consider buying vehicles that are more fuel-efficient, will probably ruffle some feathers if it goes into effect.  Vehicle purchases are already down, and any kind of tax on vehicles as the car industry is struggling will be met with some strong opposition.  This law would be the first one of this kind in the U.S.

Lawmakers in Massachusetts are already thinking of enacting an increase of 19 cents in the fuel tax, which will no doubt be controversial.  When you have to come find $19 billion in the next 20 years in order to modernize and maintain your transportation system, it is likely that you will have to put some unpopular ideas on the table.  Unfortunately, right now consumers just feel more comfortable hanging onto their current cars and purchasing used car warranties, instead of buying new vehicles.

Many people believe it is easiest to trade in your current car when buying a new one.  However, is trading the right choice for you?  There are some advantages and disadvantages to trading.

The big advantage to trading over selling is that you have very little hassle.  You don’t have to haggle with buyers and you get rid of your car quickly.  However, the fact is that you aren’t going to get as much for your car if you trade it in.

Any used vehicle has a specific retail value.  If a dealership is going to sell that vehicle, they will have certain expenses, such as fixing dents and scrapes, cleaning it, and just overhead costs of running their business.  Therefore, the dealership has to sell it for a little more than a private owner would.

Since dealers need to make a good profit on used vehicles, they purchase them for less than the retail value.  When the dealership takes a trade in vehicle, they are essentially purchasing it from the new car customer, and at a price below the retail value.  Essentially, this is called the trade in value.

Although trading in your car is easier than going through the hassle of trying to sell your car privately, you are going to get less money for your vehicle.  If you sell your vehicle on your own, you can put the extra money you get towards important things such as an auto warranty and maintenance costs.  And with used vehicles, used car warranties are a smart choice.