Used Car Warranties

Regardless of the year or make, one of the biggest investments people will make is a vehicle.  Buying a used car is a great way for consumers to save some money.  However, risks can be higher, which is why an auto warranty should be purchased for the car.  Fortunately, there are ways that buyers can recognize the difference between dependable used cars and lemons.

The safest thing to do is to have the car that you are looking to buy checked out by a licensed mechanic.  However, there are some things that you can do on your own.

For instance, bring a soft magnet from your refrigerator to determine if there is damage underneath a new coat of paint.  You can run the magnet all along the fenders and doors, which are steel.  If it seems that the magnet won’t stick, there is probably a type of body filler under the paint.

Also, examine the inside of the vehicle for stains from water.  If the car was damaged in a flood, it could mean trouble in years to come.  You also want to look at the wear on the pedals of the vehicle.  It should be consistent with what the mileage claims to be.  If there is low mileage, there should be little wear on the pedals.

Don’t forget to examine the tires of the vehicle, too.  If you see wear on the outside edges of the tires, the car is probably out of alignment or might have components that are worn-out.

Knowing what to look for in a used vehicle will bring you peace of mind about your purchase.  Also, know that used car warranties will allow you to save on costly repairs that may be unforeseen.

If you want to buy a cheap, older car, Car-Auction may be your best bet.  This is an auction website for seized cars where you can buy seized cars that are inexpensive. In fact, you can find vehicles that are up to 90 percent off of retail prices.

There are some important tips that you should know before buying a vehicle on a seized car auction site.

First of all, you need to do your research.  You want to make sure you are actually getting a good deal. You are purchasing the car ‘as is’, so do your homework.  Seized auto auction sites don’t offer an auto warranty, so you need to buy one somewhere else.  After all, you want to be covered in the event of a breakdown.

Also, make sure you buy a car that has all of its paperwork available.  You will want to check the vehicle’s repair record, safety ranking, and mileage before making your purchase.  You can find this information on-line or from consumer magazines.

If possible, take the car for a test drive.  There is no other way to get a real feel for how the car runs.  This will also let you see if any repairs need to be made.  If so, you might be able to negotiate a deal.

An inspection is also a necessity.  A licensed mechanic will be able to give you information about the car that couldn’t be detected on the test drive.

Buying from a seized car auction can be an ideal way to save money.  However, beware.  Make sure to buy used car warranties to protect your investment.  After all, you never know when your vehicle might require repairs.

If you’re dreaming of purchasing a new vehicle, but can’t afford the high payment, you’re in luck. You can switch out your car without going into debt. To get more value for your money buy pre-owned.

The second that a new car rolls out of the dealership, it drops in price. In fact, you will lose around 25 percent of the price of the car in the first year, and the value drops drastically as the years go by. A rule of thumb for people to consider is that a 3 year-old vehicle is worth half of its sticker price. So, if you’re considering a vehicle that is a ’08 for $50,000 realize a ’05 is worth $25,000.

Americans trade in their automobiles every 3 years. Coincidentally, there is a large pool of quality pre-owned vehicles. There is a great deal of cars with less than 30,000 miles on them that are only two years old. They are practically new. This, and an auto warranty, should eliminate the fear of buying used.

To get the best deal on a pre-owned car, educate yourself. On the Internet you can find out the worth of a used car, and the cost for a dealer to buy it. With used cars, make sure you purchase used car warranties to protect your car in the event of a breakdown.

Nexteppe Business Solutions has just launched a campaign to introduce dealerships to mobile marketing. This is an add-on to the multi-media advertising that already exists. Mobile marketing allows dealers the opportunity to increase interaction with their customers. It also promises to increase sales and revenue in this tough economy.

Predictions say that this year’s sales will be down to approximately 15.6 million. This is a significant decline from 17 million in 2005. Used car sales and parts will be crucial revenue for dealers this year. Since car dealers are expecting new vehicle sales to be down, they are emphasizing selling used vehicles via their websites. Many consumers are doing their initial research online to find used cars and used car warranties.

Nexteppe believes that mobile marketing is a great opportunity that allows dealers to contact people who are interested in buying a vehicle. It is predicted that approximately 78 billion text messages will be exchanged every month in 2008. Customers seem to be receptive to communicating in this way and appreciate the up to date information.

Dealerships will use mobile marketing in several different ways to engage customers via cell phone. They will provide used and new vehicle inventory on a mobile website. Also, customers can arrange to receive text messages when there are updates on inventory. Finally, customers can be reminded of maintenance schedules.

The Internet has offered consumers’ endless opportunities to purchase used cars and used car warranties. Yet now, according to Automotive News, approximately 4,000 car dealers that cell GM’s used cars will be listing their inventory on the popular website eBay Motors. The dealers will be able to list for free. This could totally alter the business of used cars.

GM has many different vehicles that will be listed on the site. These include Chevrolet, Buick, GMC, Pontiac and Oldsmobile cars. Although Cadillac, Saab, Hummer, and Saturn have different certification programs, they will also be listed on the site.

The eBay website has just over 10 million users who will be able to view the used inventory of GM dealers. This program will become even more of a draw to consumers and dealers if additional manufacturers decide to put their used inventory on the site as well.

GM and eBay Motors are still working diligently to complete the site. However, GM already has their inventory posted on over 300 websites, such as AutoTrader.com and Cars.com.

Consumers can now search for a used car without ever leaving their homes. Also convenient is that motorists can shop around online for used car warranties that protect their investment. The Internet offers drivers a full range of opportunities.

Buying a car can be overwhelming, yet, keeping a car can even be worse.  Enticing television ads and the lure on the web can make it hard to resist buying a new car.  However, during this difficult economy, it makes sense not to give in to temptation.

In America, people find it hard to stay with a car for over five years.  But with a few common-sense tips and an auto warranty, an unnecessary car purchase can be avoided.

First, make sure that the current car you drive is small and Japanese.  For instance, the Honda Civic is a sure thing.  It may get a little rust, but it won’t die.  And even though driving a Tercel from ’92 may not get you a date on Friday night, it’s reliability will make you not want to give it up.

Second, do lots of research.  This is actually a great method to prevent buying a car.  Searching the Internet for the cars in your price range will overwhelm you with too many options.  Also research used car warranties to protect the car you have.

Finally, focusing on a specific model and make is a good tactic.  This is especially good if that model hasn’t been produced for at least a decade.  The odds are very slim that you will find that car on the market with less than 300,000 miles.

So, what do you do if you still desire a new car after weeks of research?  What if your old Civic is pulling you toward the dealer?  Just remember as soon as that new car gets off the lot it’s value will drop instantly.  Keeping your clunker is your best bet.

Web-based technology now allows auto dealerships and consumers to be more knowledgeable about used cars and used car warranties. For example, based out of Chicago, vAuto is introducing new, breakthrough technology. This technology provides dealerships with accurate pricing information on any kind of used car on the market. It also provides supply and demand data.

This software offers a view of the used car market that is “live”. Dealerships can now have detailed information on used cars and trucks that are top sellers in their area. This is based on the vehicles make, year, model, and trim.

They can now identify used vehicles that are moving the fastest in the market. This kind of technology will keep dealerships from wondering what kind of used vehicles they should keep in stock. This gives dealerships a competitive edge.

Pre-owned vehicles account for more than 27 percent of a dealer’s profits. Independent and franchised dealers make used-car inventories their biggest investment after facilities and land. Technology will now allow them to be certain what used cars to stock.

Of course, consumers have been benefiting from web-based technology for years. The web has allowed consumers to research before they buy used cars and used car warranties. It only makes sense that dealerships now have new, advanced technology to help them stock the cars that consumers like.

If you have your heart set on a new car, then make the purchase.  But, if you can get a used car of high quality for a fraction of the cost, then why should you pay more?

A four-cylinder, 2009 Toyota Corolla lists for around $15,000.  However, current projections of depreciation would make that car approximately $10,000 in three years.  Doesn’t it make perfect sense to purchase a good car for that lower price?  Not only are you getting a good price on the car, you are also saving money on loans and used car warranties.

It is important to do your homework before buying a car.  There are numerous periodicals and Internet sites offering auto information on such things as an auto warranty, financing, and ratings about reliability.

You may feel that you don’t have the time to do research for cars.  However, you need to realize that approximately four hours of research would probably save you between $6,000 and $8,000 and give you the option for a good deal on used car warranties.

How do you avoid a financial loss when your car is totaled?

 

New and used car buyers are potentially losing thousands of dollars when their vehicle is totaled after an accident or theft.  Many do not know that they can acquire an additional insurance policy when they first purchase the car.

 

Some auto warranty providers believe the reason many drivers do not take out Guaranteed Asset Protection (GAP) Insurance from their selling dealer is their lack of understanding the benefits of these policies.

 

Almost a million cars are written off in the US each year and many drivers are left owing a lot of money to their finance company as the insurance payout is far less than the outstanding finance balance on their car loan.  On higher value used cars this could amount to a few thousand dollars, especially if the car was recently purchased.

 

GAP insurance pays the difference between the insured value of the vehicle and the outstanding finance balance.  Recently there was a situation where a very expensive luxury car was written off following an accident. The difference between the insurance pay out and the outstanding finance balance $13,000 because the car was only three weeks into its finance contract term.  Because the owner had taken out GAP insurance the policy paid out the difference and he was able to buy another car without any additional out of pocket expense.

 

Many used car warranties purchased with the vehicle have their own built Gap Insurance as the extended warranties are cancelable on a pro-rata basis.  This is just another reason that a used car warranty turns out to be a very smart purchase.

One of our clients, we’ll call him Al Smith who asked for our assistance.  He purchased a 2002 Volvo with 58,000 miles form his local dealer.  Included with the purchase he also got an auto warranty.  It was one of the used car warranties offered by an insurance company.  Last December Al noticed a funny sound, since diagnosed as a pinging.  An Volvo specialist found a crack in his cylinder head, the gasket was blown over two rings, and it had a burnt engine block.

After inspection, the insurance company said that the damage was due to Al’s negligence and that he should have noticed the problem mush sooner. The insurance company said they will pay for the gasket, but not the balance of the repair which was more than $5,000.00.  He wanted to know if he had any recourse?

Answer: I don’t believe insurance-based used car warranties offer very good service or value for what they cost.  It would have been very difficult to detect any loss of power or misfiring of the engine, overheating, and the vehilce was taken in as soon as the pinging noise was heard. The argument that this is owner negligence just doesn’t make any sense.  If the vehicle had been fully serviced then his claim was legitimate. Get an independent engineer to write a report on the exact cause of the engine damage so that the claim can be brought to arbitration.  Used car warranties should always be written clearly. It always pays to spend a little more for a top rated auto warranty from a quality provider.