Making a Wise Decision when Buying a Car
This situation probably has happened to everyone: You’re driving along the road and you notice that your car doesn’t sound all that good. Before you realize what’s happening, your poor car takes its last gasps on the side of the road. You need a new car.
Television ads tell you that you need a new car. Although a new car does sound appealing, you’ve also heard from friends that buying a new car is a better idea in the long run. You’re faced with a tough decision. This article will look at the positives and negatives of buying new and used vehicles. This will help you pick the vehicle that’s meant to be yours.
The Glory of New
There’s something powerful about the looks of a brand-new car, all the way from the tantalizing smell to that shiny new paint. In this consumer culture, a new car is a symbol that tells everyone you have made it. There also are other benefits to buying a new car rather than a used car.
Positives:
Most new cars do have good reliability. The warranty also will likely cover any problems that do crop up. Buying a new vehicle also means that you shouldn’t have to worry much about how the vehicle was treated before it became yours.
A number of companies also have roadside assistance for new cars. This gives you peace of mind and can save you the expense of getting a roadside assistance program on your own.
New cars also usually have the highest fuel-efficiency standards and the newest safety features, like side-curtain airbags. You may also find a good financing program with either no interest or low interest rates. This can make it less expensive to buy a new car than it is to buy a used car.
Negatives:
Without a doubt, buying a new car is expensive. Most new cars cost more than used cars, and they depreciate very quickly in value. A new car loses the most value during the first few years that someone owns it.
The difference between what you paid for your car and what it is now worth can be substantial. According to the Kelley Blue Book, the MSRP (manufacturer’s suggested retail price) for a 2007 Ford Focus two-door hatchback is $14,335. The resale value for the same car is $11,995. The value has dropped about $2,300 just for driving the car off the lot.
Buying a new car therefore means that you are getting more debt and losing value more quickly than if you had bought a used car. You’ll also be paying more for car insurance than you would if you had bought a used vehicle.
There are also issues to think about on a deeper level. Buying a new car can contribute to the culture of consumption and not the culture of frugality. If you buy a new car, some would argue that you are buying into the consumerism culture. This can be an expensive proposition.
New cars also don’t stay new for very long. You eventually will find your first nick or scratch. Eventually, the floor will be stained, the doors will have dings, and you won’t have the thrill of having a new car. Your monthly payments will last much longer than your shiny new car.
A Humble Used Car
Although “pre-owned vehicles” - what the car dealers like to call a used car - don’t have the mystique and “shiny” factor of a new car, they are hard to top as a practical financial move. Buying a late model car with few miles can be a bargain seeker’s dream.
Positives:
Buying a used car helps you get the most amount of car at the lowest cost. A late-model used car often costs less than half the cost of a new car. Some dealers’ pre-certified programs come with good warranties. They often include the balance of the factory warranty and the opportunity to buy an extended warranty. Low-mileage, late-model used cars are almost new. You probably don’t notice the difference between a used and a new vehicle if you trade in your car every few years. Most modern cars can go 100,000 or more with few problems. You could probably get 60,000 more miles on a car with 40,000.
You can also buy a used car for only a few thousand dollars if you don’t have much cash and are willing to take a chance on a used car. Buying a care that needs a little tender loving care can cut the amount of money you need to spend on your “new” car.
Negatives:
Some used cars still have the stigma of being unreliable. There may always be a fear of buying someone else’s problem because you don’t know how its last owner treated the car, or why the last owner traded the car into the dealer. Even if the car is fine, you still need to perform maintenance sooner than you would on a new car. That maintenance will include radiator and transmission flushes, new tires, and new brakes.
It also may be difficult to find a used vehicle with the features you want. You also will have fewer options if you buy a lemon. Lemon laws usually only apply to vehicles under a certain age.
New or Used?
You should make your decision to buy a new or used vehicle based on many factors. You should be comfortable with your various financing options, as well as any long-term consequences. You need to feel safe and buy a vehicle that is reliable for your needs and meets your monthly expense budget. Your “new” car also needs to meet your requirements for amenities and features.
Check Out The Facts Before Buying A Car Warranty
Whether buying a new or used car you should always invest in a car warranty as this will save you a considerable sum of money if the vehicle breaks down or new parts are needed. There are several things that you need to take into consideration before you sign the warranty on any new or used vehicle that you buy.
In order to find the most suitable car warranty plan for you we offer a few tips below to help you.
1. When buying a used vehicle first check to make sure that the manufacturer’s original warranty is still valid as normally with vehicles less than three years old this is generally the case. However, if you are purchasing the vehicle from a dealer and the warranty has expired they may offer you a short term warranty for free or elsewhere enquire if it is possible to purchase an extended warranty instead.
2. Ask to see a copy of the owner’s manual as this will tell you everything you need to know about the general warranty conditions for the vehicle. The general warranty provided by the manufacturer will either cover the owner of the vehicle for a three year period or 36,000 miles depending on which is reached sooner. Normally the warranty will list the parts of the vehicle which are covered by it.
3. Look into finding out more about extended or power train warranties which normally provide cover for either 60 months or 60,000 miles. Although they will save you money in the long run you need to be aware that these may not take effect until after the original car warranty has expired.
4. If you do intend to go for an extended warranty on a new or used vehicle then make sure you go with a reputable company. Look for those who have a history of providing such like Carchex auto warranty, Wynn’s auto warranty or CNA auto warranty and who have a number of different car warranty plans for you to select from and who will provide you with their terms and conditions in writing before you sign up to one. Also look for those companies who offer a money back guarantee and will cover your vehicle no matter where you are.
5. It is vital that you read the plan through carefully before signing on the dotted line. As well as long at the length of time the car warranty is valid for look to see what limitations there if any on making claims. A car is quite a large investment you will be making so you want a warranty that really is going to protect it.
A car warranty plan is not going to guarantee the length of life the vehicle but is purely as a way of guaranteeing that when purchased the vehicle was in good working order. There are going to be certain conditions which will limit the claims you can make against the warranty especially if you abuse or mishandle it. So this is another reason why all the warranty plan documentation should be read through carefully before you sign anything.
Is Donating a Car Better Than Selling?
What do you need to keep in mind when deciding whether to sell or donate a car you are ready to get rid of? One thing you need to consider the value of the car. Another thing to consider is whether there is a charity to which you might like to donate it. Also, consider you tax bracket and how it will affect your net profit, as well as considering what you time is worth to fix it and advertise.
To determine the value of your car, you need to consider the real value of it. Many assume the Kelley Blue Book value is the real value of your car. It is not. The KBB value is only a suggested value. You need to decrease that estimate by 30%. Let’s use the example of a car that has a private party value of $1525. Cutting that value by 30% gives the new, more realistic value of $1067.50.
The discounted KBB price will be cut again based on the tax bracket you fall under. If you are single and have a gross income of $50,000 a year, you are in the 25% tax bracket. This means, assuming that you do succeed in selling the car for $1000, after taxes you’ll just be netting $750 from the deal.
Other expenses also need to be factored in. You need to advertise. Let’s say you spend $80 on advertising. That means only $670 for the car now. You may also need to have it professionally detailed. Subtract another $70 for that. Now your car is only going to net $600.
You will want to ensure that the car is running properly. Take away another $75 for a mechanic to inspect the vehicle and write up an info sheet on the car’s condition that you can present to prospective buyers. It’s also important to remember that a car’s exterior condition may be more crucial to its sale than anything else. You may also want to repair body damage on the car as even the most seemingly insignificant everyday nicks and dings can discourage a buyer.
Do you see how the net value from selling the car now goes from $750 to $525? There is actually potential there for less than $525. What if something is wrong with the car? What if you need work done to fix some dents and scratches?
What if the financial benefits to donating the car? Would it compare at all to the $595 you anticipate getting if you sell it? Most cars donated to charity are sold at auction. A new IRS rule says that to get the full deduction a car must be sold and in use immediately after donation. You will typically get a $500 tax deduction or possibly even more, if the car sells for more. You see that if you donate the car, at the most you would come in with only about $25 less than what you would get for selling it. Possibly, you would get even more as a deduction. Even if there is only a $25 difference, is it worth the time and hassle you go through to earn only $25?
To most of us, our time is extremely valuable. You only have a limited amount of time, and probably could find something better to spend it on than fixing up and selling a car for such a small amount of net profit. You will have to arrange you schedule to allow time to handle the sale, plus having to deal with strangers. Is it worth it to you?
Selling a car may mean having to deal with phone calls at whatever time the phone rings, whether it is convenient to you or not. You could well spend an hour or more dealing with potential buyers and their questions. Planning and producing ads and signs can easily consume another hour and a half. Taking the car in to the body shop and mechanic may take an additional two hours and may even involve having to miss some work or arrange another means of transportation while it is in the shop. Having it cleaned and detailed may involve another half hour or so.
You will have to schedule times for people to come see the car, check under the hood and test drive the vehicle. You might even schedule with someone and have them no-show the appointment. Others not only want to look at the car themselves but will also request that you take the car to a mechanic that they trust for an inspection. And, most of the time, people with these type of demands are the ones who don’t close the deal! It is said that someone selling a car can optimistically expect five to ten inquiries that go nowhere before the car is sold. Let’s estimate that a total of three hours is spent meeting with people.
Add it all up and it takes approximately eight hours and about a dozen different steps to sell your car. In comparison, when you donate a car, it’s a matter of one phone call before a tow truck comes to haul the vehicle away. The car is put on auction and eventually goes to a person in need. You don’t think or worry about it until it’s time to claim your tax deduction. So, are you ready to donate your car?
The Great Oil Change Scam
The evolution of the automobile has been amazing. From the early rickety models to modern computer controlled versions, things have changed a lot. That being said, friction and heat are still a threat to any car engine and have to be managed.
If you own a car, you know that the key to fighting these two devils is oil. It lubricates the parts of an engine which minimizes the friction. Without excessive friction, heat is kept to a minimum as well.
Motor oil can take an absolute beating. That being said, the modern car engine will give it one. From stop and start traffic to hot climates, you will have to change your oil sooner or later.
What answer immediately popped into your mind? I bet it was that the oil should be changed every three months or 3,000 miles, whichever came first. Right? Somewhere, an oil marketing executive has a big grin on their face.
The three month marketing slogan is simply not correct. It may never have been. Cars perform differently, which means the stress placed on the engine and oil will differ. Oils have also improved dramatically and now last longer.
The simple truth is there is no one standard mileage or time period that should be used for oil changes. A big Ford truck simple runs differently than a Honda Civic. The oil in the truck will need to be changed well before the oil in the Honda.
Still, we need some type of guideline right? Well, you have one. For men, this will be painful. Yes, we will have to read directions. In the owners manual for the car, we can find the information for the specific needs of our vehicle.
You can expect to find a recommendation regarding the miles and time period for the oil change in the manual. There should also be a recommendation on the weight of oil and specific oil brand that should be used.
The weight of oil to be used is absolutely vital. Do not just throw anything in your engine. You can kill the engine and violate any warranty. Do not worry too much about the brand, however. You can use whatever you like in most cases.
This also brings us to the issue surrounding the types of oil you can buy. Synthetic oils are all the rage and for a good reason - the work! Depending on the vehicle, they can last 15,000 miles or more between changes.
A personal favorite of mine is Mobile 1. I’ve used this for years after a racing mechanic recommended it to me. I have to say I have experienced no engine problems since then and I drive a Jaguar! Pretty miraculous, eh?
Do not be a chump. Avoid obeying the marketing slogans of various oil change businesses. Pull out that owners manual and get the truth on oil changes for your car. You will undoubtedly save some money on less frequent changes.
How To Make Your Car Insurance Claim A Worry-free Process
Having car insurance is important legally and financially. Anyone who owns a car must also purchase insurance for it. The kind of insurance policy and amount of coverage you have depends on how much you are able or willing to spend on it. A less expensive insurance quote with minimal coverage can be generated in minutes using the internet. Purchasing comprehensive coverage is more expensive but has the advantage of bringing peace of mind.
A person has to submit a car insurance claim if his car is stolen or damaged in an accident. Submitting a car insurance claim is not very difficult. If a person has an accident then he is required to file a claim. He should immediately inform his insurance agent or the company through which he has bought insurance about the damage, theft or accident.
Submission of your auto insurance claim after an accident or theft must be accompanied by the filing of a police report. A copy of the report will go to the insurance company. This is especially important when there are deaths or injuries resulting from a car accident. You will also need to gather and share with your insurance carrier all pertinent details of the car theft or accident. These details include names, addresses and phone numbers of witnesses and other people involved in as well as the time and place at which the event took place.
Your insurance agent or company will provide you with all sorts of forms to fill out and other tasks to complete. The agent or company will also make its own inquiries into the event(s) and any associated damage or loss to verify and support what you state in your claim. As the insurance company conducts its own investigation, you have the right as the claimant to ask for an estimated time frame for recovery of losses, repair of damages and any other compensation to which you might be entitled, depending on your policy and coverage.
An insurance policy with collision coverage is ideal, as you are entitled to compensation for damages from any sort of accident, including those with walls, other cars, or even trees. Your agent should let you know about repair estimates and where you should go to have repairs done. Remember to be assertive and not be intimidated by the agent, company, repair shops or the claims process. You have a right to ask for clarification for any details you want, for you are the customer and claimant, and in the end it is your money that is at stake.
If you have not been informed yet of the time frame for a settlement, inquire again. Time frame is important because in the meantime you must have access to a rental car, which your policy may or may not cover. If car rental is not included in your policy, then a longer settlement time frame could result in additional expenses for you. You should also double-check on any other benefits included in your policy.
The claimant can also inquire from the agent the duration after which he will be contacted about any further proceedings about the case. If he has an auto insurance policy with collision or comprehensive cover then he will not have any worries. The insurance company will pay the damages without assigning the fault.
Car accidents and thefts are certainly not any fun. Filing and submitting an insurance claim for damages and loss from any of the above incidents should not add to your difficulties. Make the process easier on yourself by keeping clear-headed, making sure you have all the necessary information and details, involving your agent/company as soon as possible, and asking any questions you might have and expecting straight answers. If you do all of the above, you should be compensated fairly, depending on the type of coverage included in your policy.
Ferrari and Alonso versus McLaren and Hamilton in 2009
There are many lessons to be learned from this season in Formula One. The first is that Fernando Alonso is still a master. The second is Ferrari needs a dominant driver given the fall of Kimi.
Mention Formula One and the same criticisms are spewed out. There is no real fire. Drivers do not try to pass one another enough. The personalities are to boring. There is no real passion with the teams.
I propose that the only way to add life to F1 is to get a good, vicious rivalry going. Yes, McLaren and Ferrari have a go every so often, but we need individuals involved to really get the blood up and boiling.
How great would a driver rivalry be? Look at last year. Alonso and Hamilton went at it so hard on the same team that they forgot about Kimi and let him win the title. It made for great entertainment and racing.
For much of this season, the rivalry has short circuited do to the poor performance of the Renault. That has changed recently and what has happened? Alonso and Hamilton have fired up the rivalry. Hopefully, they will meet on the track in the last few races as well.
For my measure, the Ferrari is a bit better than the McLaren, but the McLaren is a bit more reliable. As we have all seen, the McLaren is far superior in the wet. On top of this, the Ferrari team has made some horrific gaffs.
Turning to the 2009 season, imagine Alonso at Ferrari. One tends to think the pit and strategy problems would become a thing of the past. As a great driver in the rain, he would also solve much of that short coming in the car.
Who would Alonso replace? The obvious answer is Raikkonen. I love Kimi, but he is done. He may have a contract for next year, but Ferrari would be crazy not to let him go. Do not be surprised if something does not come together in the offseason.
When it comes to Lewis Hamilton and Fernando Alonso, you simply cannot sit on the fence. You love one of them and think the other is a no good punk. Whatever your choice, a rivalry built around these two drivers would be epic.
The blazing red Ferrari of Alonso and the silver fox McLaren of Hamilton. First race of the 2009 season. They are side by side on the front row. The lights go out and the two blaze down to turn one and the rivalry would start to boil.
In the big picture, it is hard to imagine why Alonso would not end up at Ferrari. He clearly desires it and Ferrari must realize it has a driver problem. Let us hope the move happens so 2009 can be a season for the ages.
Choosing A Reliable Car Insurance Company
Due to there being hundreds of companies for car insurance out there it has become challenging to decide on the right one. The company that you choose has to offer the services you require and be there for claims to be filed as needed. In order to decide upon a car insurance company that is not only dependable but that can meet the needs that you have as a customer. To do this there are things that have to be considered. When making your final decision there are a few vital considerations that you will want to keep in mind.
How good is the customer service provided?
Before utilizing services you want to take a thorough look at the customer service. You do not want an insufficient amount of customer service. Ask people that have had experience with a company about the level of customer service provided. To find out about customer services check for complaints filed with the Better Business Bureau. You will be assisted with finding out about the reliability and the customer service offered this way.
Are they financially sound?
The financial stability of a company has to be looked at when trying to find an auto insurance company. It is important to look at the Standard & Poor rating of a company to get the full picture of their finances. You do not want to end up in a situation where the company does not have adequate funds to pay a claim. You want a financially sound company that has a rating higher than BBB with Standard & Poor.
Compare the rates of various companies
Of course price is also going to be something to look at as well. Wondering how the price lets you know whether a company will be reliable? Well, companies that are going to offer great service and be reliable for you are going to offer you prices that are competitive. If a company has prices that are sky high and much higher than most of the competition, you have to wonder why their prices are so high. So, price can be something important to consider as well.
When searching for a car insurance company that is going to be reliable these are three of the most vital things to take into consideration. You will be sure to find an incredible company that will meet all of your needs for car insurance when you look for adequate customer service, financial security and prices that are competitive.
Automatic Car Alarms: Don’t Be A Victim Of Car Theft
An audible security system that sounds when it notices a possible break-in is a car alarm. These car alarms can make a noisy disturbance which can be very annoying and a lot of the time is ignored. There are a lot more technologically sophisticated vehicle security systems that are available.
To help reduce the billion-dollars of car theft, manufacturers have developed innovative technology with two-way communication remotes to warn you when your vehicle’s engine is started and notify you why the alarm was activated. The most common options in newer car security systems include glass break sensors, a two-way communication remote and passive arming.
A noisy alarm just won’t be heard if you’re not near the car, and if you’re on vacation it could take days for you to even figure out that your car is missing. Certain types of car security systems will place an automatic call to a number you have specified (or send an urgent text) in case of a break in. Alarms that are two-stage can also tell you whether your car has just been jostled or if it is actually turned on and in motion.
If the vehicle is moving, you could communicate to the automatic car alarm to turn off the fuel pump, which will effectively stop the vehicle. Of course, if your car is on the back of a tow truck, stopping the engine will not prevent the theft. Many of the newer vehicle security systems are also equipped with GPS tracking devices to keep tabs on your vehicle’s location.
Preventing Car Jacking: Several models of vehicle security systems are now equipped with car jacking preventative mechanisms. These mechanisms allow you to turn off the supply of gas to the vehicle with the press of a button. Having this safety feature gives you options you would not otherwise have. The feature is generally activated by a switch that is near the seat belt release; when activated it shuts off the fuel supply and applies the brakes to stop the car. This features gives a person a good chance of preventing their car from being hijacked.
A lot of times these systems will notify police in the event that a car is hijacked. Some systems are programmed to quickly notify the authorities that something is going on and might be a life-threatening situation. It can be very dangerous when approaching a car thief in the middle of stealing your car, so it’s better to let police handle the situation. Once your car alarm notifies you with a text message or phone call that the car is being stolen, you can then tell the police who will already have a head start trying to catch the thief in the act.
Hydrogen Gas Saver - Installing A Hydrogen Conversion Kit
If rising gas prices have you worried and you have the interest and skills to do basic mechanical jobs on your vehicle, you may want to consider installing a hydrogen gas saver in your car. Among the benefits that you can see by installing this system are increase in gas mileage, considerable reduction in emissions and reduction in operating costs. Further, hydrogen gas is environment friendly, making it even more worthwhile.
There are two routes to installing a hydrogen gas saver system. There are plans available for purchase for the person who is handy or knows someone who is. The items to build this system can be found at most automotive outlets, home improvement stores or specialty distributors. Depending on your plans and where you purchase your supplies, the construction of your hydrogen gas saver can run anywhere from less than $200 to several thousand dollars. There are plenty of internet sites where you can purchase step-by-step instructions to install so-called water for gas units.
Hydrogen gas saver conversion kits basically work as miniature hydrogen plants in your vehicle. Using as little as a quart of water these systems are able to extract hydrogen gas from the water using a small amount of electric current from the vehicle’s charging system. The hydrogen gas extracted from the water is then introduced into the air fuel mixture already entering your vehicle through the induction system. These types of systems are adaptable to almost every vehicle that rolls or floats. From all terrain vehicles a.k.a. ATV’s to yachts there is a hydrogen gas saver kit out there for you.
If you don’t want to tackle installing a hydrogen gas saver kit yourself, the best way for adding hydrogen power to your vehicle is to have a hydrogen gas saver system professionally installed, by either a manufacturer or a licensed installer trained and certified by a manufacturer.
It is hard to find installation centers for hydrogen gas saver vehicle conversions in areas without access to a hydrogen fueling station or production facility. If there is not an installation center nearby, you can contact the installation center closest to you and get information on where the nearest center is located or details on how to ship your vehicle to that particular installation center. Many installation kits also list people that can make and install systems if you decide this is the option for you.
Most companies offering kits to convert your car to a hydrogen hybrid claim that these installations do not affect your vehicles manufacturers warranty, you should check with your selling dealer or even the home office of the vehicle manufacturer. And by all means make sure you write down the name of the person you spoke with good or bad.
Regardless of the type of hydrogen gas saver installation you prefer to switch your car’s fuel to hydrogen gas, it can save you money and help protect the environment. Depending on your installation kit, you may even be lucky enough to receive a tax credit during the next tax season, saving you even more money.
Car Sales In The Exploration Of Ideas Difficult Market
The sale of cars could come with many challenges, especially when the current economic climate of the United States unstable. It is important, now more than ever that car sales managers and sales throughout the country learn some sales of innovative exploration techniques to find buyers regardless of economic conditions.
Economic developments in the existence of life events, as a result, an economy car that’s good or bad purchase is needed to tip. However, those that \”to buy a car until they shift the economy is going to probably see it that way may want to be kept closed. The challenge is to find buyers and said that the need to buy a car and showing them that now is the right time buyers want.
Many auto dealerships for their sales staff, which is certainly beneficial offer comprehensive automotive training. However, these difficult period of time so that the success of their dealerships to keep up, you feel that the construction of very great importance to the motor vehicle sold in sales training is also prospecting ideas.
Some of the greatest selling car advice will come from those who have been in the industry longer. After all, has seen the market through good and bad, and perhaps you can provide many of the strategies that worked for them over the years. This is a great place to start collecting your car sales training exploration of ideas.
His gleaning ideas from experienced professionals certainly can be helpful, but this is one place that you do not want to see. Are going to court and get a list of families who only have been discharged bankruptcies in the market that maybe very soon for a new vehicle are going to be a major source of clues was. Divorce decrees also are great places or people who are still in the market for clues to take.
Of course, there very good leadership to find other places as well are doing. They gas prices, your service department manager who might be happy in their recent gains with the gas are not to have seen some customers are as high as being with. These leads are golden. First, because they already have and what you bought with your relationship with your customers are continued, and second because you have a new, more fuel efficient vehicles by buying a lot of money to save the situation Into the can.
Another great place to look for prospecting purposes is with police reports, detailing cars that have recently been totaled in damages. These are people who are going to need a new vehicle and very soon, if you can prospect them first, you will be able to net some additional sales each quarter.
Of course these are just a few of many automotive sales training prospecting ideas. Upon creation of your own training program to provide to your sales staff, I am sure that even more ideas will surface, but this should get the gears pumping in the right direction. Sales isnat about what happens, itas about what you make happen.