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.

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.

Here is the situation presented to us…

Q: One of our contract holders allowed a friend to take over his car payments for 6 months while he was out of the US. A notarized contract was signed by both people. A month later, after the car was put in the shop for repairs incurring a $750 repair bill the person who took over the payments lost his job.  He claimed he was broke and moved out of the state, abandoning the car at the repair facility. The shop refused to release the car to the original owner saying that as the car’s owner he was responsible for the bill even though all repair paperwork was signed by the person who had assumed responsibility for the car.Is the repair shop in the right?

Is it worth the effort of taking legal action against the shop to release vehicle since taking the other party to court is not an option?   

A: Legally it really depends upon the laws regarding an auto repair in your state. In most states the person who authorized the work is the one that is liable to the repair facility for the repairs. Since this person had possession of the car with your consent (and by your “contract” arrangement), they were the one acting as your agent and had authority to contract with the shop for repairs. 

The shop is entitled to get paid for the work they did. They’re under no obligation to release the car to you without any charge. If they wanted, the shop could even get technical about the situation and require that they will only release the vehicle to the party who brought it to them in the first place and for whom the work was performed in good faith.

Obviously, in the future you would be many dollars ahead of the game by simply purchasing a comprehensive auto warranty.  This would keep you form worrying about any used car warranty law issues in the future.  There are many excellent aftermarket auto warranty programs to choose from.  In my opinion the best of the best is Auto Advantage Incorporated at www.autowarranties.com. 

Good luck with your current situation.

At one time or another every vehicle owner has been stuck on the side of the road or highway with a vehicle that has broken down.  Faced with the fact that a large repair bill is imminently on the horizon this is not a happy time.  To avoid this helpless feeling some people choose own auto warranties to protect their pocketbooks.

There are many companies in the market that offers different types of warranties. Below auto warranty tips on what a person should keep in mind when buying new car warranties or used car warranties.

First, inquire about the coverage that a warranty company provides. Get information about the warranties available in the market as different type of warranties cover different replacement parts. Some companies offer online information on auto warranties so the buyer can purchase the right plan for their vehicle. Some different types of coverage available are bumper-to-bumper, component, and powertrain type coverage.

With so many car warranty companies out there some are not of the highest quality. Companies claim to cover many parts but once bought, they deny many claims. This is why a buyer must research the company they choose carefully.

There is no doubt about it, vehicles are lasting longer these days. For instance industry representatives point out that in 2000 just over 28 percent of 15 year old vehicles are still on the road. In 2007, that number jumped to about 45 percent. This means there is a very good chance that most vehicles will be on the road far past their new car warranty.

The need for a good used car warranty is now far more likely. There are numerous aftermarket auto warranty companies offering solid auto warranty options.

Perhaps at some point in the future auto manufacturers will catch up with the trend.

Sometimes I think there is no such thing as a good new car warranty. 

 I had a new Ford Thunderbird and just prior to the manufacturer’s warranty expiration it was missing on one cylinder, apparently because the ignition coils failed. After some arguing, Ford issued a warranty extension for just this issue.  Shortly thereafter, while on a trip I had to take the car to Ford dealership in Miami, they told me they were going to have to replace the throttle body, flush the injectors, and reprogram the computer (which had already been done). It was then that I was told the bill would be $1098.00 because this was not covered. 

It was then that I decided to look into an extended auto warranty. I looked at some extended auto warranty plans and decided to contact Auto Advantage.  I was able to purchase a used car warranty at a rate far less that the dealership was able to offer. 

 

Many people don’t know how to select motor oil that will get them optimum performance levels from their vehicles. People usually simply select the oil their parents used or they take the suggestion of a counter person at an auto parts store. There are many differences in motor oils and choosing the right one can have an impact on how well your vehicle runs. Selecting the right oil is a quick, cheap way to improve your vehicle’s performance.  Regardless of what type of oil you use, whether you have a new car or a used car you are still eventually going to face a major repair bill sooner or later. That is why an auto warranty is a necessity. A new car warranty or a used car warranty can provide its owner with peace of mind.  When auto repairs are necessary, the owners are protected from the high cost of automobile repairs. 

Two components determine how well motor oil will perform in your car. One factor is the base oil, and the other is the combination of chemicals (additives) that are added to the base oil. The two primary types of base oils used are mineral and synthetic. Mineral oils are by-products of refined crude oil. Refining helps reduce the impurities but leaves molecules of all shapes and sizes. Synthetic oils are manmade compounds whose molecules are all the same size and shape; consequently, synthetic oil has less friction and performs significantly better than mineral oils.

It comes as a surprise to most that their car starts getting mechanical failures as soon as the original factory warranty comes to an end. The pile of bills just keeps getting higher and higher and there is no way out of it. To avoid these most people go for a car warranty. The warranty ensures that you will have not only the peace of mind of knowing that should there be any mechanical failure in the car it can be easily repaired, but also that you can take it to the repair shop of your choice and have the cost of the claim covered by the company with whom you drafted the contract. The warranty nearly covers most of the costs of repairs from dead batteries to mechanical failures.

 

Nowadays another new trend is being set by the companies offering car warranties in order to ensure more customers. Some of the car warranty companies now provide their customers with free of charge transportation in case their car breaks down on the freeways. Now those who are stuck on the highways do not have to wait tirelessly for a Good Samaritan to help them.

 

While a car warranty would provide coverage for your car in cases of repairs and maintenance, it is important to remember that a car warranty is not the same as an insurance coverage.  Car warranties work by aiding the vehicle owner in the cost of maintenance and repairs on the vehicle, but only so long as the parts that are covered are those that are being replaced or repaired.  Car warranties are very tricky documents because even though a warranty contract says that your vehicle is fully covered, a lot of things can still go wrong in a claim for re-imbursement or vehicle repair assistance.
Of the many problems that may arise during a claim at a car warranty dealership or service provider, one of the most common is that you are not covered for the type of claim that you are making.  Some car warranties provide bumper to bumper coverage.  This is the highest level of coverage that most services offer, and it covers everything in your car besides the wear and tear.  The catch is however to ensure that the parts not covered are listed, because what you may consider as being included, your warranty company may have listed in the wear and tear non-covered section.

2007 Saturn Aura Sedan Repeatedly Beats Competition

The 2007 Saturn Aura is continually proving is top position in competition against other midsized sedans. It is being recognized as the “2007 Car of the Year” by Motoring Television, “Driver’s Choice Award for the Best New Family Sedan” by MotorWeek, the “North American Car of the Year” by independent automotive journalists, and adding to the slew of awards; “Editor’s Choice for Family Sedan” by World of Wheels.

Car buyers can appreciate the extend of GM of Canada’s praise for the Saturn Aura because multiple awards means a much easier decision over competition at the car lot. It’s easy to find some sort of accolade somewhere for nearly every car, but there is substantial value to several straight wins.

The impressively equipped 2007 Aura XE starts at just $24,990 and the up-level 2007 Saturn Aura XR starts at $31,080. This spring, a Saturn Aura Green Line hybrid model will also be offered starting at just $27,290 – making it Canada’s most affordable – and most stylish – midsize hybrid.

See Also

• Extended Warranties
  Auto Warranty Coverage