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.

When buying a new car, it is up to the consumer to do their homework before shopping. This will ensure the best deal possible. Three important tips will save you from unnecessary costs.

First, shop around to find a good dealership. One way to do this is to check blogging about dealerships. Web searches can be a wealth of information. Many times you will find complaints or positive revues that could help you. Also, it is a good idea to contact three car dealerships in your area to see which ones are going to respond quickly and be helpful.

Next, don’t give in to alarm systems or dealer financing. These are two ways that consumers lose in the end. For example, when cars are manufactured they already have wiring installed. However, automakers sell alarms separately for up to $1200. This is added on to the price of the new car. Also, finance offices don’t usually give you the best deals. A better option would be to put your money towards an auto warranty.

Finally, sell your car before you get to the dealership. If you sell yourself, you will get a much better deal than you would on a trade-in.

The bottom line is that any mechanical breakdown leaving a motorist stranded could wipe out all of the gains from a perfectly negotiated deal. New car warranties should be an essential part of your purchase in order to protect you from costly repairs.

Car sales in Hawaii are expected to drop this year.  Vehicle registrations will decline significantly to just over 4 percent since the economy is slowing down. The Hawaii automobile industry is braced for lower car sales for the year, with vehicle registrations and sales of new car warranties expected to drop 4.1 percent as the economy slows, according to some Auto Dealers in Hawaii.

Registrations for cars are expected to only reach 57,000 because of credit markets being tight, unemployment rising, house values declining, gas prices soaring, and consumers in debt. In this type of economy, it is a good idea to purchase an  to protect your investment. It was forecasted late last year that there will be a decrease of approximately 3.5 percent in auto registrations this year.

In the meantime, registrations for vehicles last year were down to just over 59,000, which was a more significant drop than expected. Kauai had a smaller decline at just over 7 percent, and the big island reported a greater drop at approximately 12 percent.

Why buy a car when you don’t have to?  One of the best ways to get a super deal on a new vehicle is to avoid having to be in the position of having to replace the one your present car because it has broken down and it’s beyond repair.  Being desperate rarely results in a good deal for the buyer.  Smart shoppers will anticipate the need for a new car or truck and begin looking at what’s available long before they actually need to purchase.  New car warranties should also be an essential part of your purchase.

Unless you are buying as a cash purchase, you should think about the great new car financing deals available.  Many consumers forget that the cost financing is just as important to their bottom line as the vehicles pirchase price. Whatever you save up front on the car or truck’s price can easily be lost over the course of your new car loan if without realizing, you sign up for a loan with a higher interest rate than you could have gotten by shopping around.  New car warranties can also be incorporated in your financing.

Always check with a number of potential lending institutions including credit unions and banks, as well as the manufacturer’s special finance deals.  After shopping around you’ll know you have gotten the best deal you could, or at least one of them.

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.

Mitsubishi Motors is trying to build on the excitement that has been generated the launch of the new Lancer Evolution and brand new 2009 Galant.  The new Galant made its debut today at Chicago’s Auto Show and comes with hopes that they can raise themselves up from the lack of attention their predecessors had gotten.

 

Mitsubishi is trying to cover all the bases in what is a very complex and competitive mid-size market segment by offering the 2009 Galant in several different trim levels.  It will also have a choice of 4 or 6 cylinder motors.  The top of the range for the 3.8L V6 is available in the Ralliart-Tuned Galant and offers a hefty 258 horsepower output. Also available are a 230 horsepower V6, and a 2.4L 160 horsepower 4 cylinder engine. All engines come with Mitsubishi’s Sportronic transmission.

Mitsubishi vehicles are backed by short term new vehicle limited auto warranties. The Eclipse, Lancer, Galant, Endeavor and Outlander also come with a 10-year/100,000 mile powertrain warranty along with a 5-year/60,000 mile bumper-to-bumper auto warranty. This still leaves a void in the later years when many typical failures occur.  This is continued proof that an auto warranty is a necessity on these high powered mid-sized cars.

Lexus’ new pre-collision system is an important innovation to current automobile manufacturing and design.  Toyota/Lexus, in an effort to put safety at the forefront and add it as a strong selling point, are creating systems in cars that prospective vehicle buyers are demanding.  They are clearly on the bandwagon for safety and innovation. Vehicle buyers should research new car warranties to protect the new safety innovated cars being produced today.  This will help to build confidence in their cars and continually guarantee their upkeep and safety implementations when the needs arise.

An extended auto warranty can protect your automobile and is well worth the money spent to warranty these new safety features.  To keep your investment on the road for many years to come and keep it functioning properly dependable new car warranties are clearly the answer.  They will allow driver’s to get the amount of coverage needed to so that important repairs can be done when necessary.

A group of state and national aftermarket associations filed a lawsuit versus the California Air Resources Board, aka-CARB that challenged their proposed regulations that requires vehicle manufacturers to extend auto warranties on emissions parts to 10 years and 120,000 miles which would keep replacements running through their dealer networks.

One of the plaintiffs, the Automotive Service Association aka-ASA, said the action by CARB to extend auto warranties for this extended term will cause massive economic damage to independent aftermarket auto warranty providers and service facilities in the California and is not likely to provide any clean air or consumer benefits.  Another plaintiff in the case, Automotive Service Councils of California, said because vehicle owners will not know whether a needed repair indicated by the malfunction indicator light is covered by the extended auto warranty, they will need to return to the dealer for almost all repairs. 

The lawsuit states that CARB provides no real evidence that extending emissions auto warranties will effectively motivate manufacturers to build a more durable emission system, or that it will motivate a driver to seek emissions-related repairs when they are indicated.

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.