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.

Do used car warranties that are transferable really boost resale values or do they just build buyer confidence?  

Everybody assumes that used car warranties have some value, but nobody really knows exactly how much? Some new car manufacturer’s have come out with longer powertrain warranties and have made them transferable to a vehicle’s second owner.  This may soon be able to help provide the auto warranty industry with a real answer. 

Some of Chrysler’s models sold after they started their transferable warranty program will soon be resold, and many of those new owners will need to pay the $50 fee to continue with the balance of the factory warranty. The question that remains is will they also pay a higher price to the car’s seller because the warranty is transferable?  

It is a difficult question to answer, but a leading authority and editor of a major automotive publication noted that a vehicle under warranty is most certainly worth more than a vehicle that’s not. It seems like common sense, and we always see a marked drop in vehicle’s resale value once it is out of warranty. 

There is no question that used car warranties will definitely enhance your vehicle’s resale vale.  Just make sure the plan you purchase is transferable. 

A South Carolina man whose vehicle was still under warranty said he was an able to get repairs done in a timely manner.

Since the middle of last year this consumer has been trying to get his van repaired but has not been able to get complete satisfaction.  The car has been into the shop numerous times and after several months of trying promises were made that were not kept by the dealer. 

He contacted the auto warranty company that provided him with his coverage and asked them to assist in getting the dealer to complete the repairs.  Many used car warranties offered by some providers would not have gotten involved.  Auto Advantage Inc. was not one of them.  They immediately contacted the dealer and persuaded them to complete repairs in just 48 hours.  Needless to say the customer only has kind words for the representative and company that assisted him.  The customer adds, “I just believe that if you buy an auto warranty the people that sell it to you should stand behind it”.

Used car warranties can be quite a value when purchased on any used vehicle in your family.  In addition they will also increase the value of your vehicle as they are transferable when the vehicle is sold to the next owner.

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.

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. 

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.