The finance office, what a hassle.  When purchasing a new car you go through all the trials and tribulations of negotiating a good price that fits your budget.  Just when you think this hellish experience is over you get planted in the seat of the finance manager.  His job is to sell you as many products as he can for as much money as possible to try and make up for the lack of profits the dealer makes on the new car sale.  It may not seem ethical but it is the way it is done. 

The products they offer in this ”aftersale chamber of horrors” are for the most part completely unnecessary.  Each of them is made more attractive in many cases by including them in your automobile financing which makes it seem more affordable.  One of the few products you are offered that actually makes sense is an extended auto warranty.  An aftermarket auto warranty can be offered on almost any car or truck.  New car warranties and used car warranties are both available.  Even the Better Business Bureau, who is for the most part anti warranty, recommends purchasing one on an automobile.  Invest in a quality auto warranty program now and save big on repair bills later.

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.

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.

Even though forecasters predict a slow 2008 for automobile sales, many dealerships are hoping for a steady recovery toward the end of the year.  More specifically, some dealers are backing up their hopeful outlook by reinvesting money back into their own businesses.  Their stocking levels and ordering project 2008 will be about the same as 2007. 

Some think 2008 will have some late momentum and that things will start to get better. They are hopeful that they saw the bottom in 2007. In 2007 just over 16 million cars were sold in the U.S., down from almost 17 million the previous year. 

In Detroit, analysts predict that 2008 may fall to around 15.5 million cars and trucks. Regardless, dealers will be looking for a way to increase profits.  The aftersales market, including auto warranty sales will probably be a great way to make more money.  Dealers who sell new car warranties and used car warranties generally make $500-$1,000 dollars on each warranty sale.  Aftermarket auto warranty companies are their only threat as they have much smaller markups so their prices are considerably lower.

I guess time will tell, we’ll check again in January 2009.

A new law that took place last week in Minnesota requires a higher standard to dealerships selling vehicles advertised as “certified” used cars.

In the past, a dealer might be able to explain certified many different ways, possibly withholding history or damage towards the vehicle. Under the new used car warranty law that is part of a “car owners’ bill of rights” passed last spring, state law requires, among other things, all certified used cars must go through a thorough inspection. All sales must include an auto warranty whether by the dealership or one of the many quality aftermarket auto warranty companies…

Besides defining “certified,” dealers now must make over 40-disclosure statements including whether a credit report was done in determining their ability to pay off their loan. These new requirements help restore a new car buyer’s faith in making their purchase.

Regardless of whether the vehicle is certified or not, used car warranties should be an essential part of any purchase.

One of our customers asked, does my car really need high grade gasoline?

With gas prices at near all time highs, people on tighter budgets want to know using lower octane fuel is OK.  If you ask the gas station you’ll get different opinions.  Some think that it does help a car’s engine to run better, but most think it just doesn’t matter. 

After polling a group of automotive gurus, it appears that most of them believe that using a lower octane fuel does little or no damage to the car. The consensus is that even if it is not recommended by the manufacturer, you can probably get away with using a less expensive fuel. 

A lower octane gasoline may cause a slight knock in the engine but it doesn’t necessarily mean the engine is struggling.  The knocking is actually a more violent detonation of more explosive gasoline. The lower the octane, the more explosive, the louder the knocking. 

Additionally, almost all cars marketed in the US over the past 10-15 years that operate with a fuel injection system have knock sensors. These sensors can sense when there’s lower octane fuel and adjust to it. 

These more complex systems can be expensive to repair so an auto warranty is more necessary than ever.  Used car warranties can be tricky so make sure you choose an aftermarket auto warranty that offers a close to bumper to bumper protection as possible.

When buying a new or used car, don’t just sign the contract that’s put in front of you. Make sure you ask some questions about all of the extras that are added on after you make the deal on the car.  Fees like doc fees, financing fees, delivery fees, and fees related to used car warranties are not always justified.

A good auto warranty needs to be negotiated prior to taking your vehicle home.  If you are told any fee is mandatory, make sure you question it and ask for proof.

Some major auto trade groups have taken the California Air Resources Board to court over a new regulation that would extend some warranties on vehicle emissions equipment.  They claim it will cost members billions of dollars.

The lawsuit, which was filed a week ago in California’s Superior Court, represents the aftermarket auto parts/service industry. Questioned is the rule recently approved that would extend the manufacturer’s warranties on emissions equipment to 10 years or 120,000 miles on new cars.

They claim that the regulation was designed to pressure automobile manufacturers into improving the quality of parts like catalytic converters & oxygen sensor.  This will only turn over a large share of California’s annual service budget to dealer-owned shops. Some drivers have a longer warranty and argue that it will be more likely that dealers will get the repair work whether they are covered by a warranty or not.

Some aftermarket auto warranties actually offer coverage for the emissions systems as a surcharged add-on.  This reinforces the reasoning that a good auto warranty is a basic necessity for new or used vehicles.  Most new car warranties and used car warranties alike offer some type of coverage for a vehicle’s emissions system.

Back in the summer of 2007 one of my clients purchased a used Land Rover Discovery from a dealer. It came with a mechanical breakdown warranty issued by an aftermarket auto warranty company. On the date of purchase the car had 85,000 miles and 3,500 miles later it broke on the highway and had to get towed. The claim was called in to the company that issued the warranty in accordance with the contract terms. The vehicle was taken to a local dealer where the rear axle had to be broken down for inspection. The inspector advised that the damage was not a covered claim by the warranty because it was a wear & tear failure. The selling dealer insisted that the vehicle had no problems at the time of sale, so he could not be held liable for the cost of repairs. The repairs needed entailed replacing a seized rear differential following a bearing failure. The vehicle needed to get back on the road so the repairs were completed and the issue is now in small claims court.

The moral of the story is when purchasing an auto warranty for your used car be sure that the plan is of the highest caliber.  Read through the contract as some used car warranties leave much to be desired.