Used Car Warranties

Contrary to everything you’ve been told, changing your oil every 3000 miles may no longer be the rule of thumb.

Due to advanced engine design and better quality oil the old maxim may be a couple thousand miles off the mark.

“Ford Motor Co. became the latest manufacturer to extend its oil life guidelines, making public that it is raising the recommended oil change interval from 5,000 miles to 7,500 on its newly redesigned 2007 models and all subsequent redesigned or new models.

The company, like many other manufacturers, said Tuesday that higher oil quality standards and new engine designs were responsible for the change, which affects vehicles driven under normal conditions.

“The oils have advanced a lot since the days when 3,000 miles were the typical oil drains,” said Dennis Bachelder, senior engineer for the American Petroleum Institute, an industry organization that sets quality standards. “They’re certainly more robust than the oils of 10, 15 years ago.”

These days, motor oils start with a higher-quality base oil than in the past, and they have more antioxidants that make lubricating properties last longer and other additives that keep deposits from forming on engines, Bachelder said.

Pete Misangyi, Ford’s supervisor of fuel lubricants, said the company conducted numerous fleet and laboratory tests with newer oils before it raised the interval.

“That allows more comfort, if you will, in extending the intervals using the new oils,” he said.
(Source)

Many manufacturers are recommending sensors to calculate when a vehicle needs an oil change but find that customers would rather have a set intervals of miles recommended as opposed to trusting a sensor even though data confirms their reliability.

“We are absolutely confident of the technology. We back it with a 100,000 mile powertrain warranty now, so there’s no doubt in our mind that this technology works,” he said.

The longer oil life can save customers money. Ford estimates that drivers would save $600 over a five-year period by going from 5,000 miles to 7,500 between oil changes.

“From an environmental perspective we can save an enormous amount of oil,” Lord said. “There’s no point in wasting precious oil changing it prematurely. And we don’t have to dispose of so much waste oil, either.”

If you have never purchased a car on your own before, there are some basics that you should be aware of. UsedCarWise.com promises to give the novice buyer more than the basics. For less than $20 you can delve deeply into a multi-faceted tutorial on car buying savvy garnered from over 25 years in the business.

“I started UsedCarWise.com after seeing first-hand how car dealerships and sellers rip-off buyers. It hurt me to see good people being taken advantage of, so I made it my mission to teach people how to buy a used car so they would be on an equal footing with unethical car dealerships. In my course I will give you the upper hand when buying a used car and negotiating with car salespeople.”

Some of the points  covered:

• How to spot paint and body damage that indicate an accident
• How to measure paint thickness with a simple tool
• How to inspect for flood damage
• How to check for engine sludge
• How to perform a “Proper Test Drive” that reveals the truth about a car
• How to get and interpret a vehicle history report and why it’s not all you need.
• How far you should trust Certified Used Cars.
• How to obtain and interpret a warranty history report that can uncover hidden problems

It is actually not a bad deal if you face this daunting purchase on your own.

However, for sound advice on used car warranties and extended warranties, you can count on us.

When you are studying used car warranties and extended warranties, have you ever wondered where warranties came from anyway? OK, so you just care about cost and reliable providers, but it gives you pause when you consider there was a time when warranties didn’t exist at all.

“Back in the 1950s, people started complaining that their cars weren’t working very well, and that companies weren’t standing behind the cars,” Wojcicki said. “Eventually, the complaints made their way to Washington and Congress took heed. In the late 1960s, Congress started looking into the question, and a Presidential Task Force was born. The Federal Trade Commission was asked to do an investigation.”

“In 1968, the FTC issued its report,” he said. “They found that automobiles were not manufactured to an acceptable quality standard; that manufacturers and dealers were not standing behind the warranty — were not making repairs as promised; that because of the quality problems, the automobiles required more types of service, more frequent preventative service than was acceptable; and that an increase in private litigation, while it would apply pressure on the industry to provide better cars and improved services, does not represent an efficient or generally satisfactory way to achieve proper performance under the warranty.”

In other words, the FTC conceded that litigation wasn’t the best way to improve product quality.

Warranty Legislation Proposed

“Nonetheless, legislation was proposed,” Wojcicki said, in the form of the Automobile Quality Control Act, which he said would have made warranties a statutory requirement, had it become law. “You would have had a set of federal requirements that you would have to comply with if you were an automobile manufacturer.”

There are a few states that have demanded minimum warranties, and in Europe manufacturers have no choice, a minimum 2 year warranty must be available on all consumer goods.

Magnuson Moss Act

Before legislation did pass in the states (Magnuson Moss Act), complaints were rampant; warranties that took away a consumer’s rights, deceptive language, manufacturers that wouldn’t comply. The new law provided for the following:

“The new law required that entities that choose to issue product warranties must characterize them as either full or limited warranties. The warranty must also describe 1) what is covered, 2) what is not covered, 3) what is the period of coverage, 4) how to obtain coverage, and 5) how the warranty is affected by various state laws. But it does not require that warranties be granted in the first place.”

Read more of this informative article, “Warranty and the Law”, at Warranty Week.com.

To inquire about a warranty, Auto Advantage have been specialists in Extended Warranties/Vehicle Service Contracts for New and Used Cars, Trucks, Motorcycles,RVs since 1979.

It goes without saying that you need to thoroughly inspect a used car before you buy it. First , look at the buyers guide sticker and see if the used car warranty is limited or if the car has no warranty and is being sold as is. The best option is to have your own mechanic inspect the car with you.

AutoBytle.com has an extensive step by step process that you can review before you go shopping. The first few steps are excerpted below.

Things You Will Need

• Paper towels
• Hand cleaner
• Magnet
• Flashlight
• Small mirror
• VIN (vehicle identification number)
• www.autocheck.com Vehicle History Report
• Small section of the newspaper (to help detect oil leaks)
• Cell phone and the number of your local dealer for this type of vehicle
• This list and a pen to check things off and make notes

Used Car Inspection Step #1

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Setting Up The Inspection
Get the VIN from the used car listing or call the owner and ask for it. If they are uneasy about letting you run a vehicle history report, be wary of the seller’s honesty. Dealerships run this report if you want to trade your used car in. The VIN number is conveniently located on the sellers insurance card, which most states require be carried in your wallet.

Used Car Inspection Step #2

Talk with the Owner Talk to the owner, ask:

• How long have they owned the car?
• How often have they changed the oil? Where was it changed?
• Do they have records for maintenance and service?
• Has it ever been damaged or flooded?
• Why are they selling the vehicle?
• Are there any problems?
• Has it had any major maintenance beyond muffler, brakes, tires, batteries and oil changes? How long has it been since these items were replaced?
• Was the car kept in a garage?

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If you are a woman exploring what is underneath your hood, or you are trying to identify that part that your used car warranty states is still covered, you might find yourself in search of something that you wouldn’t recognize if it hit you over the head. Being able to differentiate between a power steering pump and a power steering box could prove helpful . My Honest Mechanic generously offers a section on their site simply named, Pictures of Car Parts, that is just that; picture after picture of various car parts. Noted also for dispensing good tech advice and providing a complete menu of automotive information, it’s a site well worth book marking. At least now you’ll be able to visualize all of the car parts that your used car warranty still covers.

A friend of mine was once a big skeptic about eBay. A boat salesman for a local boat broker, he was especially displeased when his boss announced that they were going to try auctioning some of their pre-owned inventory on eBay.
These boats were 30 to 65′ long, ranging in price from 100K to 600K. Not your typical online auction item. Much to his surprise, folks flew in from across the country to see these boats, resulting in several cross country transactions.

Though buying a car on eBay is not quite as risky, like any purchase, common sense and caution must prevail.
Car-junky.com explains reasons why buying near new cars off the internet can end up being a safe route to go.

“A two- to four-year-old car today can offer customers much of the comfort, performance, styling and reliability of a new model, and it sells for 30 to 60 percent less than a new vehicle,” says John Davis, executive producer and host of MotorWeek, the critically acclaimed PBS weekly automotive magazine series.

According to Davis, cars are better built these days, and the styling is changed less often and less radically than it used to be, so a three-year-old car looks and drives a lot like a new one.

There is also less risk involved now. New car warranties have been lengthened and coverage is at least three years (36,000 miles) for all vehicles, and for premium cars it can be twice as long. There is usually rust and corrosion protection that lasts even longer and roadside assistance coverage as well.”

eBay is one service that offers buyers a solution for car inspections at a distance.

“But should you actually buy a car you haven’t even seen? Davis cautions shoppers to remember the familiar “buyer beware” warning. eBay Motors offers a mobile inspection service, which sends certified experts anywhere in the country for a nominal fee to check out a vehicle before you buy it. There are also cars available that have already been certified by a dealer.”

Read the entire article for more car shopping advice.

If you are looking to “steal” a car at a government auction, well, you’re overlooking the word “government”. When have you not known the government to grab for as much money as it can? That being said, auctions can be just plain fun for the uninitiated and, with a little study, they can be worth the time invested.

“Three federal agencies resell vehicles through official government auctions: The Treasury Department, the U.S. Marshals Service, and the General Services Administration. In most cases, private companies run the auctions under contract.

The Treasury Department resells vehicles confiscated by bureaus under its control, such as the IRS, the U.S. Secret Service, and the Bureau of Alcohol, Tobacco, and Firearms.

The U.S. Marshals Service sells vehicles forfeited under Department of Justice laws through the Drug Enforcement Administration, the Federal Bureau of Investigation, and the Immigration and Naturalization Service.”
(source)

There can be any number of reasons that a car shows up in an auction, from abandonment to confiscation. The advice is to direct your attention to used federal cars coming out of the General Services Administration – they’ve had regular maintenance and consistent usage.

You are also advised to get the auction list ahead of time and focus on a just a few vehicles. There are no used car warranties, these are “as is”. Inspect your selection during the auction’s preview time, though you are not likely to be permitted a test drive, these cars are deemed to be road worthy.

Keep your Kelly Blue Book on you, bone up on auction basics – when and how to bid – and be prepared to pay in full or with a substantial down payment.

More info on auction shopping is available here.

You have the five year warranty that came with the car and you put out another 700 and some change for the extended warranty and you feel you can breathe easily for 10 years. If you failed to save your oil receipts, you might find that the blown gasket you are replacing will not be covered. It’s in the extended warranty’s fine print.

This CBS13.com consumer report tells the story, the moral of which is get a folder for all automobile related paperwork and never fail to put all related expense receipts in it.

“Extended auto warranties may give you peace of mind when you buy them, promising years of service for your car. But we call on Kurtis Ming, with what you should know about the roadblocks before you decide to buy one.

When Randy Fetter bought his Hyundai Accent in 2002, the five-year factory warranty was a big selling point.

“They market themselves and position themselves as the best warranty in the business,” says Fetter.

For even more protection, randy paid $759 dollars to extend that warranty to ten years.

“This was one vehicle I wasn’t going to have to worry about for the next ten years,” he says.

So last month when his car broke down with a blown gasket, he expected the fix would be covered. But Hyundai refused, because Randy didn’t keep his receipts for oil changes.

It’s a clause listed in the fine print of his warranty.

An extended auto warranty can be a good deal. But before you buy, the experts at edmunds.com have a couple suggestions:

1. If you’re leasing your car or plan on getting a new model in a few years, extended warranties are usually not worth buying.

2. Make sure the extended warranty lengthens the term of the original warranty…

3. Maintaining the car your self could void the warranty. And always keep detailed records – hold on to receipts for repairs and routine maintenance, you may need them, as randy found out.

“They wanted to have it on there that you purchased this oil on this date, what the viscosity was,” says Randy.

After randy’s car was in the shop three weeks, Hyundai decided to honor the extended warranty and do the repairs”.

It is very reassuring that now the used car buyer can look for used cars that have been certified and can easily shop for a good used car or extended warranty. There are still, however, some basic “rules of the road” to keep in mind when shopping for a used car.

• Do Check a used car history report This does not give you a 100% warranty that the car is OK, but may save you some money if it will show you some bad records, for example, if the car was written off after an accident or has had an odometer rolled back.
• Do ask someone knowledgeable to inspect the car for you; it may save you a lot of money.
• Don’t buy a car after a serious accident – especially following a frontal collision. You wouldn’t believe how many possible problems may arise later as a result of an accident.
• Don’t buy a car as soon as you see it. Take your time, test drive the car as long as you can. For example, some problems may only be caught when the engine is cold while other problems may only be discovered when cruising at highway speeds, etc.
• Don’t base your decision on what you have been told. “One Owner, highway driven” in fact, may be an ex-rental, heavily abused vehicle.
• Don’t buy a car if you have reservations or hesitate for one reason or another…if you don’t have a good ‘gut’ feeling about it. If the engine seems too noisy or works as if it is in rough shape and sounds heavy, the transmission shifts harshly, some works needs to be done, something seems to be wrong with the papers, etc. – move on.
• Don’t buy a car if it needs some “minor” repairs. Often this results in spending big bucks for repairs that never seem to end.
• Don’t buy a flooded car; it may look good and still be drivable but later a flooded car may develop many expensive to fix problems: corrosion, electrical, electronics, wheel bearings, transmission, etc.
• Don’t be rude to a salesperson at the dealership. Regardless of the many stereotypes we share, many salespersons are genuinely nice people. Be persistent but not rude; treat them well and they will be willing to help you…

(Source)

Most would agree that there is nothing so particularly American as the image of a pick-up truck. Nonetheless, Toyota is determined to make inroads on that iconic association with their ‘B-cab” edition of the Tundra.

“Toyota Motor Corp. has extended a special offer to its dealers nationwide: They will be given $2,000 to purchase base-model “B-cab” editions of the Tundra pickup, redesigned for the 2007 model year to better compete with Detroit’s Big Three automakers in the full-size truck war.

The company is offering its more than 1,200 dealers in the United States the incentive to purchase the new Tundra for use as a parts delivery truck. Toyota spokesman Bill Kwong said the program is a way to gain exposure for the new Tundra, which went on sale in February. Dealers typically have to go through other channels to buy the pickups for their own use, so this deal will save them time and money, Kwong said.

The incentive expires April 30 and is available for Lexus, Scion and Hino Motors Ltd., all truck dealers that sell Toyota vehicles. At the same time, the automaker is giving dealers cash incentives that can be used at their discretion to discount B-Cab editions of the 2007 by up to $1,000 on a nationwide basis, Kwong said. In some regions, the incentive is as high as $1,500.

A base model variant of the vehicle, composed of a basic two-door cab, carries a base price of $22,290, more than $2,000 higher than a base Ford Motor Co. F-150, the traditional segment leader.

Toyota is making a strong push into the full-size truck market. The company, in a surprising move, priced its trucks higher than the domestic competition in some cases, and now is offering special programs to cut prices and lure buyers.”
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