Used Car Warranties

As further proof that we never know what gas and oil prices will do, fuel prices have remained steady since Friday, with the nationwide average at $1.85 a gallon.  This ended a three-month free fall of gas prices.

So, now will prices begin to climb?

Well, there could be a slight rise in months to come.  However, we have an economy that is still awful and winter, which is the time of year when gas prices are there lowest anyway.  According to a recent USA/Gallup Poll, just 12% of motorists claim they have gone back to their usual driving habits, which is incredible considering how far gas prices have fallen.

So, what’s to expect with fuel prices down the road?

No one really knows, however experts are predicting fuel prices will hover around $1.50 before they start rising to about $2.25 a gallon this summer.

At the moment, OPEC has cut oil production by about 2 million barrels, we have a weak dollar and one has to wonder if motorists will do away with their new driving habits that are so conservative, since gas is so cheap.  One thing is for sure though, drivers are hanging onto their current cars and purchasing used car warranties instead of buying new vehicles.

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

With about 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 distractions by GPSs.  In addition, drivers should protect themselves by purchasing used car warranties, and avoiding other in car distractions.

Recently, a CEO of Gulf Oil said that a barrel of oil could cost as low as $20, and gas prices could bottom out at $1 per gallon by early 2009.  Currently, gas is at $1.77 per gallon nationwide, according to AAA.

This information, coming from an insider in oil, is mind-boggling when you consider that just six months ago gas was at an all-time high of $4.11 per gallon and people were calling for roadside assistance because they avoided filling up their tanks and ran out of gas.

While many people in the media claim that low gas prices are the silver lining in what one could call an economy that is dismal, it’s in reality the canary in the coalmine, which foretells deflation and a severe recession.

However, in the real world, this may mean simply that the fuel bill won’t be a pressing matter over the next several months, while many people are concerned about housing and jobs.  For now, people are trying not to spend a lot of money.  In fact, most consumers are holding onto their current cars and protecting themselves with used car warranties.

One trick that people use to sell a used 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, dealers that are reputable typically won’t try to sell vehicles 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.

In any case, 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 important, is 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 is 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.

Yesterday, President Obama instructed the EPA to do a re-evaluation of California’s request, as well as 13 other states, to determine and regulate their own vehicle emissions standards.  Unfortunately, motorists haven’t been very concerned with emissions.  In fact, many people would rather hold onto their current cars with used car warranties, instead of buying a new car with cleaner emissions.

One problem that we face In the United States is that we have a federal guideline for gas efficiency, which is called CAFÉ.  President Obama recently claimed he would agree to strengthen this, which would mean stricter requirements coming next year.  Also, the EPA issues mileage ratings, which are placed on the stickers of new cars.  These numbers aren’t the same as the CAFÉ numbers, however the EPA utilizes a sizeable budget to determine these important numbers that consumers use every day.

New standards set for emissions set on a state-by-state basis would add on one more regulation.  So instead of having three or four various standards, it would be much easier to have one national one.  That way, for the states with big budget problems, such as California, they wouldn’t have the expense of regulating something so unwieldy like emissions.  Also, it would be a great help if the formula were a bit cleaner than the current CAFÉ ratings.

College students who live a long distance 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 auto loans for students.

Students must 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 bad credit are even eligible to apply for car loans for students; however, their interest rate will be high.  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 sold to recover the loan amount.

Having just received a multibillion-dollar bailout, Chrysler announced it will have a partnership with the Italian carmaker Fiat.  Within hours of rumors hitting the media about the deal, Chrysler officially released a statement with an explanation of the pact.  Fiat has agreed to share the platforms of its small cars and its fuel-efficient engines, which are extremely popular in Europe, in exchange for a 35% stake in the American carmaker.  Cash is not going to exchange hands; it’s just that Fiat will have a stake in Chrysler.

This plan will mean that Fiat products will be built in the United States and Dodge and Chrysler products.  There probably aren’t any Jeep-like vehicles in Fiat’s portfolio.

Many questions about the deal are left unanswered.  For one, it doesn’t appear that Fiat is getting much in return for contributing to Chrysler.  In recent years past, Fiat has considered bringing back the Alfa Romeo brand to the United States, but its main concern was distribution.  The statement that Chrysler put out mentions distribution extremely vaguely.  Maybe when the economy gets back on track the beautiful slate of modern Alfas will be on sale in America.  That would give Chrysler a truly luxury car brand to sell.

All carmakers, especially Chrysler, have suffered a hard blow with the poor economy.  People have resolved themselves to holding onto their current cars and purchasing used car warranties, instead of buying new.  Hopefully, though, with all of the new exciting cars coming on the market, people will be tempted to start buying new cars soon.

According to the National Highway Traffic Safety Administration, a recall has been issued by Lexus for 214,500 2006-08 GS, IS, and LS cars.  Apparently, there has been corrosion within fuel pipes that has caused a leak.

Lexus discovered that specific ethanol fuels containing a low moisture content will make the pipes rust.  This can cause the indicator lamp on the dashboard to signal a malfunction, but this doesn’t occur in every case, which is why it’s necessary to have your car checked by a professional.  Lexus has notified car owners via email and will replace the parts that are affected at its dealerships, free of charge.

Unfortunately, you never know when your car parts will fail, which is why it’s so important to protect yourself with used car warranties.  After all, you don’t want to find yourself paying unnecessary repair costs.

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.

According to a Soleil Securities analyst, used car values are continuing to decline.  This could have negative repercussions for new car manufacturers that are already struggling.

Analyst Michael Ward claims that the Manheim used vehicle index, which indicates trends in pricing, dropped 6.2% last month, which is the lowest seen since 2004.

Also, according to Manheim, prices of used cars have fallen year after year in each of the past months.

Michael Ward says that the majority of new car sales involve trading in a used vehicle, which heightens the effect of pre-owned car values on the carmakers.  And used car prices that are on the decline are a negative indication of new car demand over the next six months.

The poor economy has hit the auto industry hard, and it appears that this won’t end anytime soon.  Consumers are holding onto their current cars and purchasing used car warranties to protect themselves.