The automotive industry has seen the largest drop in used car sales in almost a decade.  Industry monitors report that in the third quarter of 2007 alone sales dropped by over 3 percent.  Sales of later model cars that are three years old or less have dropped off the most, losing almost 10 percent of their sales.

Some new car programs are partially to blame for the used-car sales drop off.  Increase in some of the coverage offered by new car warranties, special insurance incentives, and finance deals as low as zero percent have buyers looking at new vehicles as opposed to late-model pre-owned cars.  Over the long haul this will probably cause used-car prices to drop off considerably.

This change has surprised the industry as the third and fourth quarter of the year usually see a slight increase in the seller used vehicles.  The outlook is that conditions will probably continue to be tough for dealers who sell used vehicles, especially with the economy in its current condition.  The auto industry, during a recession, usually takes one of the biggest hits in the financial world.

One industry that will probably benefit from the current market conditions will be the auto warranty industry.  Used car warranties will continue to be a necessity for most vehicles on the road.  As consumers will tend to keep their vehicles longer, used car warranties will protect them from having to break the bank for the repairs on these older vehicles.  At least the auto warranty industry will see some benefit from the current economic conditions.

Contrary to huge investments in technology to reduce auto warranty costs and improve quality, auto warranty cost reduction has been quite elusive for many vehicle manufacturers.

One of the problems is that specific identification of the troublesome parts and less than desirable suppliers is a difficult and time consuming costly process. Automobile production, sales, and new car warranties create valuable data that could identify defective parts.  This data can not be fully used because it is too big to be cost effectively looked at by any data warehouse technology. The systems are made more complicated by constraints that make it difficult to cost effectively perform the analyses on data sets with speed and accuracy.

Road service refers to assistance extended by auto warranty providers to vehicle owners at times of distress.  It is not obligatory that a road service plan be included with new car warranties or used car warranties.  They are however, important and assist customers in distress, especially when they are stranded on motorways when their vehicle breaks down.

Normally, the road service is offered by cars manufacturer but expires with the original coverage.  Sometimes dealers may offer independent road service for their customers but this is very rare and is only for breakdowns in their region.

At the time of delivery, insist on an auto warranty that offers a road service program. Road service includes range of services starting from repairs and maintenance of the engine to flat tires service.

Usually road service operates through a hotline telephone number and has a toll-free number to call whenever vehicle owners are in distress and help is usually there in less than 45 minutes.

If you intend to sell your vehicle at some point you should consider purchasing on of the many used car warranties available to you.  Even if you are only considering a sale, automobile warranty can protect you while you still own the car and will add considerable value to the new owner. You will be able to drive your vehicle with the peace of mind that only an auto warranty can bring.  You should also realize that the buyer is likely to want the same comfort when driving the vehicle after the purchase.

In addition, you will increase the car’s value by adding the simple words “warranty coverage” in your ad.  

Consider purchasing an auto warranty for your new replacement vehicle as well.  Down the road the extended auto warranty will most likely save you big money on repair bills.  Remember, the auto warranty you purchase today will be an investment that will surely pay off for you in the future. 

There’s no arguing that 2008 will probably be a rough year for the automotive industry.  The fuel crisis, numerous recalls, and a tough economy will have vehicle manufacturers struggling to stay in the black.  It will be interesting to watch what makes and models can survive the industry wide lack of sales and keep their nameplates at the top of the production list.

Another interesting story will be how automobile manufacturers will keep the impending sales declined from cutting into the profits of their auto warranty divisions.  Manufacturer’s warranties will need to be a large incentive for consumers in the market to buy a new car.  New car warranties are quite varied depending on the make and model of the vehicle and sometimes play a pivotal role in the consumer’s decision about one vehicle to purchase.

The aftermarket auto warranty programs will also have to adjust to the longer powertrain warranties that are now being offered on new vehicles.  Regardless, and auto warranty still remains one of the best investments you can make when buying a new or used car or truck.

I may envy my friends a little as they are all driving beautiful new cars, but I don’t envy their high monthly payments.  After many years of carting with my family around, the interior of my Explorer may not be much to look at, but mechanically it is still fairly sound.  Rather then taking on a new loan and dealing with the monthly payments, I chose to purchase an auto warranty.  I consider used car warranties and essential investment if you plan to keep an older vehicle and it is your primary mode of transportation.

When I returned to the dealer who sold me my car originally and asked him if he could provide warranty coverage, I was told they were not able to sell it to me after the date of sale.  I then went on a quest to find another way to obtain coverage.  I found a number of aftermarket auto warranty companies that offered a variety of different plans and chose a bumper to bumper planned that seemed to work best for me.

After going through this process, which I considered a learning experience, I found that doing a extensive research on the different companies that provided and auto warranty online was essential.  Some auto warranty reviews were available that showed that the quality of the companies varied considerably.  Remember, you usually get what you pay for.

When buying a certified used car in Minnesota the word “certified” now really means something. Earlier this month a new law took effect that will regulate what a car dealer can say is a certified vehicle. It is part of a new car owners’ bill of rights that lawmakers passed in early 2007.  It is something that consumer activists as well as car dealers both agree is a good idea.

The term “certified” is used quite liberally and much too loosely in the automobile industry and the new used car warranty law gives it some credibility.  It is important to note that “certified” still means different things to different people. With the old law a dealer who advertised a “certified” car could define the term however he felt he wanted it presented. Now the law says that a certified used vehicle must include some type of auto warranty and the dealer must state that the car is in good shape and has no current damage.  As we are all aware, used car warranties are an essential part of any vehicle’s sale.

Lawmakers recently voted to strengthen the regulation of auto repair facilities after an investigation by a television news team from Nevada.

Apparently the current laws in place are more or less a license to rip people off. The new laws help streamline the regulatory process and have the Department of Motor Vehicles named as the place for disheartened consumers to lodge their complaints. This is a great step as the DMV has authority to shut down a crooked repair shop.

Auto warranty providers had also lobbied for the new legislation as it will provide them with an additional safety mechanism for the used car warranties they offer. 

It has already helped as some repair facilities have already felt the sting of the new system and have lost their license to do business.

The bill also helps to provide additional funds for the attorney general’s office to do more in the future with their undercover investigations.

Recently Saab debuted the worlds first completely hybrid car.  The vehicle Saab unveiled is the first fossil-fuel-free hybrid and it’s a convertible to boot. The car is called the BioPower Hybrid 9-3 convertible concept car. It is a giant leap in hybrid cars. This concept is based on using pure bioethonal instead of just a part bioethonal formula.

In addition, this biopower convertible has a “zero mode,” which is a button that enables the car to run from two very powerful batteries eliminating all emissions.  Even though while in “zero mode” the car’s maximum speed is limited, it has the ability to switch back automatically to the biofuel mode. 

Saab’s BioPower Hybrid also includes anew and natural step in the development of BioPower technology.  One challenge is how to fit this technology into the auto warranty market.  New car warranties are not currently structured for this.

Their turbochargers have been tuned to take advantage of the high octane rating of pure bioethanol so the engine can produce a solid 260 bhp and 375 Nm torque. Acceleration has been increased by two electric motors of the hybrid system. At low speed and take-off they can add a huge instant 785 Nm of torque helping to catapult you from zero to 100 in 6.9 seconds, faster than most diesel or gas-driven cars, but with zero fossil fuel emission.

Very exciting, I can hardly wait until they are actually developed to work in the “real world.” If Saab can deliver it sounds like a success story to me.

Owning a fuel-efficient Hybrid car is a great idea but one problem is that these cars still use gas or diesel engines.  With the batteries produced today they do not have enough energy to hold a charge long enough making people believe that all electric cars are in the future.

However, there is news of a new Ultra Battery. This smart new battery technology increases the life of the battery four times, and has more than twice the power. In the future this new UltraBattery could find its way into vehicle production as the answer to all electric cars.

Whether you buy a new gas powered vehicle or a Hybrid model, a good auto warranty is very important, and it’s worth doing some research to choose the best policy for you.  New car warranties cover repairs and maintenance from about three months up to five years. Follow the same auto warranty tips when purchasing a used vehicle, as there are many good used car warranties available.