Archive for the ‘Autos’ Category
Tips and Advice on Buying a Used Car
August 25th, 2010 | 
Author: When you think of buying used car online, only think of it as researching about the car in question and browsing through online listings so that you can talk to the owner and see the car in person. This is meant by ‘buy a used car’ online. Now this brings us to look at some safety tips that you may consider while shopping for used car.
See the car in person. If you check out the car on the internet, decide that it’s good enough for you and your family. Next step should be pick up the phone or contact the owner or dealer and set up an appointment to see the vehicle in person. By doing this, you are making sure that the vehicle does exist and the money you are spending is on a quality product. So, make sure to conduct a search online, contact the person and meet in person.
Price too good to be true. Usually if a car is advertised at a much lower price than expected, that’s red flag. It’s always better to do some research. Look up the vehicles book value using online resources and find out what it is actually worth. You can also ask the owner for pricing it so low.
Location of the seller matters. If you live in USA and find the car that is located internationally, do not pursue. These types of offers are mostly scams or fraudulent. If you end up making any transactions with sellers located outside of the country you are in, it is all the more difficult to resolve disputes with such sellers.
Get the car thoroughly inspected. When you make an appointment to see the car, make sure to set up an appointment for inspection as well. It is very important that a technician inspects the vehicle you wish to buy in order to eliminate the hassles faced later on when the car starts showing signs of wear off.
Don’t send cash or money order in mail. Even if you think the purchase is not expensive and you are being asked to send in $350 in cash to reserve your vehicle, don’t take the bait. This is one of the oldest online scams. The seller usually receives the money and claims the cash or money order never arrived. Always make sure to pay by check to the private car seller or dealership. It is the best and safe methods to make the payments.
Auto Repair Insurance: Extended Warranties — Myths And Facts
How much insurance does one need? You have the big four: home, health, life, and car insurance. Then there’s a second category, which starts getting a little hazy with credit card insurance, purchase protection plans, fraud insurance and more. Extended warranties, also called extended service contracts, or extended service policies fall into the mist of this second category.
Extended warranties are supposed to pay (in full or in part) for specified repairs for a specific period of time after the expiration of the factory warranty. They can be a great value. They can also be a significant waste of money. It gets quite foggy in the details. What exactly is covered? How long? How much? Are there hidden charges?
There are numerous extended warranty companies and an even wider variety of warranty packages available: silver, gold, platinum, platinum-plus, and a host of other confidence-building words. What’s the best plan, and are extended service contracts worth the money? Extended warranties, like life insurance policies, are a numbers game. They’re a gamble. You pay $2500-$4500 for a 2 year, 100,000-mile protection plan and hope that you get at least that back in warranty repairs. The provider on the other hand, hopes to pay out less than it insured.
There are three major types of plan providers: The manufacturer, the dealership/third party, and third party providers. Each one has its assets and liabilities (discussed ahead).
What exactly is covered in an extended service plan? As mentioned above, what’s covered depends on the package purchased. Some plans only cover the power train: the mechanical components of the engine, transmission, and rear-end. Others cover the power train plus some electrical components. Still others cover electrical, advanced electrical, and computer components. Some only cover what’s listed in the contract. This is called a “Stated” or “Named” contract. This means that if it’s not stated, it’s not covered. Some cover bumper-to-bumper, similar to a manufacturer warranty, except trim pieces, upholstery, exterior components, cosmetic items, and a number of other exclusions.
Never before has the adage, “The devil’s in the details,” been so applicable.
Manufacturer Extended Plans:
Extended service plans from the manufacturer are the best in terms of coverage, convenience, and quality. Coverage is similar to the warranty while the vehicle was under its original factory warranty—with similar exclusions stated above. The billing is direct, meaning you don’t have to pay out-of-pocket, except for a deductible, if applicable. Quality is great too, as an extended warranty from the manufacturer will only use factory parts. They also have money, so there’s less risk of bankruptcy.
The down side of manufacturer extended service plans is that they are not cheap. These plans are generally the most expensive, require low mileage standards, and necessitate servicing your vehicle at a dealer for coverage.
Dealership/Third Party Plans:
Extended warranties from a dealership are actually from a third party insurer. These providers are “generally” reputable, but not always. However, if there is an issue (such as the warranty provider filing chapter 11, which is quite frequent in the extended service contract business), the dealer “may” step in to cover any repairs that would have been covered under the defunct plan. Also, claims are easier: billing is direct because the dealership has a working relationship with the provider, and there is usually agreement on price.
Some dealers set up their own “internal extended warranty,” which is honored by the selling dealer. This is rare, and should not be confused with a manufacturer warranty. Important: extended warranties are often passed off as “manufacturer” warranties. They’re not. This is a sales trick. Also be aware that there is a significant mark up, as the dealership is merely acting as the middle man. Lastly, extended warranty companies often go bankrupt without warning.
Third Party Plans:
These plans are called third party plans because they are outside the responsibility of the manufacturer and the service center performing the repairs (unless there’s a working relationship with a repair shop as stated above).
There are hundreds of extended service contract companies. Some have good reputations, some don’t. Third party plans are frequently sold by used car dealers. You may also receive an official looking notification in the mail stating that your warranty is expiring, and directing you to call an 800 number ASAP. This is a marketing tactic by an independent warranty provider. Despite the “official” appearance of the postcard or envelope, it’s not from the manufacturer. Manufacturers do not send out reminders about warranty expirations.
Given the wide-variety of third party plans there are numerous red flags.
1) Claims: Extended warranty companies will be quick to tell you that filing claims is easy, and that the service center gets paid immediately via a credit card. Thus, there’s no out-of-pocket expense for you. However, the warranty company can’t dictate a service center’s policies. Some service centers will only accept payment from the repair customer. Thus the burden is on the repair customer to fill out the forms, contact their warranty company, and await reimbursement via check, which can take 2-8 weeks.
It is the service center’s responsibility to contact the extended warranty company to let them know what’s wrong with the vehicle and to check coverage. This process can take anywhere from 20 minutes to 20 days, sometimes more, depending on the degree of repairs and especially the amount. (See $1000 and Adjusters ahead)
Service centers and extended warranty companies frequently battle over the “fair” price of repairs. Many repair shops no longer negotiate, and just state the price, leaving the contract holder (i.e., the service customer) responsible for the difference.
2) Rentals: Rental coverage is a great benefit. However, there are fixed rates and time limits. In other words, the warranty company is not going to pay to have you drive a Mercedes-Benz, even if you drive a Benz. Rental allowances range from $25 to $35 per day. Also, rental coverage is based on the number of hours it takes to repair the vehicle, NOT how long your car has been at the shop.
3) $1000 and Adjusters: Repairs that approach $1000, or that require a significant amount of work, will be cause for the warranty company to call in an adjuster to confirm the diagnosis. This will delay the repairs by a minimum of 24-48 hours. It may cost you additional money when an adjuster is involved. You may be charged to have your vehicle pulled back into the shop for inspection, as well as for the time spent with the adjuster.
4) Tear-down Charges: In many cases, an extended warranty company will require that a particular component be taken apart for inspection to determine if the repair is indeed needed and covered. This puts the service customer in a very awkward position. The customer will have to authorize potentially hundreds of dollars of tear-down expense in the hopes that the repair is covered. If it’s not, the customer is out the hundreds in tear-down PLUS the actual repair. This does happen!
Common Myths:
1) “Extended warranties cover maintenance services and brake work.”
No. Extended warranty plans do not cover maintenance or wearable items. Brake pads and rotors are wearable parts. Maintenance such as coolant, brake and transmission flushes, tune-ups, services, oil changes, bulbs, wipers, and more are not covered.
2) “They told me it’s bumper-to-bumper, so it covers everything right?”
Wrong. Not even a factory warranty covers everything. When pitching the sale for the extended warranty, one is very often lead to believe that he or she will have nothing to worry about. This is just not true on so many levels. For example, if your bumper falls off it’s not covered.
3) “I don’t have to pay anything, right?”
Wrong. Despite the claims of 100% coverage, there are many factors involved. The labor rates, labor hours, diagnostic times, parts prices, and machine work are just a few items that often conflict with a service center’s policies. Some extended contracts only pay a maximum of $55 per hour, and only allow one half hour for diagnostic time. This is generally unacceptable to the service center, as labor rates have skyrocketed to over $100 per hour at many dealerships, and average $75 at local shops. Moreover, with the complexity of today’s vehicles, diagnostic time is at a premium. The customer pays the difference.
4) “If I have an expensive problem, I can just purchase an extended service contract.”
It’s unethical, but it’s an option many attempt. However, most service contracts have a minimum time requirement before the first claim can be filed: usually three months. Also, many contracts require that your vehicle be inspected by a service center to check for pre-existing conditions—just like life insurance.
5) “My contract lasts up to 100,000 miles.”
Only if the time limit doesn’t run out first. All extended warranty plans have a time limit. For example, a typical contract will state that the vehicle is covered for two years or 100,000 miles, which ever comes first. During the sales pitch, however, the emphasis will be on the 100,000 miles, not the time.
6) “If my car breaks, it gets fixed like new.”
Actually, depending on the contract, an extended warranty company can insist on installing remanufactured or even used parts.
Items commonly not covered by extended warranties:
• Any component with a pre-existing condition
• Any component related to a Technical Service Bulletin (TSB)
• Many components that has been updated by the manufacturer
• Extra components necessary “due to manufacturer updates” to complete the repair
• Trim pieces: molding, cup holders, dashboard, console, body parts, glass
• Many accessories: radios, DVD players, TVs
• Many expensive electronics: climate control units, navigation assemblies
Service contract positives:
Some service contracts are transferable, and may thus increase the resale value of a vehicle. Many come with trip interruption reimbursement, towing and 24-hour road side. Some plans can also be financed, or have E-Z Pay Plans. Others offer a money-back guarantee.
What should you do?
You’ll get lots of advice about doing the research, comparing plans, and reading the fine print. This is all sound advice. But what about doing the math?
Let’s say a plan costs $2500 for 2 years or 100,000 miles, whichever comes first. To break even you’ll need a minimum of $1250 per year in covered repairs, excluding regular maintenance. Remember covered is the vital word here.
Another way to break it down is to anticipate having to pay $104.17 per month over the next two years in “covered” repairs. Do you want to take that bet?
What could happen?
You could double your money or more in repair work. You could conceivably get a new engine and transmission (or used ones anyway). You could also easily spend $2500 for a service contract, and still have to pay another $2500 for repairs, which for a variety of reasons, were not covered under your plan. Now you’re out $5000.
Alternatively, you could keep the initial $2500. In many ways all an extended warranty does is prepay for repairs. You could stick the money in the bank and collect interest. Then you could withdraw the money for repairs as needed.
Another consideration that’s rarely discussed is the cause of the problems. Many car repairs problems are the result of wear and tear, neglected maintenance, physical damage, or acts of God—such as flood damage. None of this is covered. The gamble only covers failed components.
If the vehicle you’re driving does cost $2500 to $4500 in repairs due to outright failed components, is it a vehicle you even want to consider keeping? A vehicle that needs this kind of repair work due to mechanical, electrical, or computer failures may not be worth it. The $2500-$4500 would be better spent on an upgrade to a quality vehicle rather than insuring a lemon.
There’s no question that auto repair is expensive, and even quality cars break from time to time. But do they breakdown to the tune of $2500-$4500? That’s a hefty bet on a “possibility.”
Terence O’Hara from the Washington Post makes an excellent assessment about extended warranties in general. He writes:
…extended warranties play upon a basic human trait to avoid loss, even if it means sacrificing a possible future gain…the gain is all the other things of value that a consumer could buy with the money that was spent on a warranty
What’s the best plan?
Money in your bank account!
Are ATV Dangerous To Ride
All terrain vehicles (ATVs) have a reputation as being dangerous, as each year, many adults and children are seriously injured or even killed by accidents or wrecks. Just like any vehicle, the short answer is: yes, ATVs are dangerous, the same way cars, sport utility vehicles, motorcycles, or trucks are dangerous. Far too often, these accidents involving ATVs come about due to improperly using the vehicle or ignorance about the vehicle. Riding an ATV does not guarantee an injury just as riding in a car does not guarantee an injury; however, certain safety precautions should be taken in order to minimize risk.
For starters, no one under the age of 16 should ride a full sized ATV. This is a recommendation put forth by the American Academy of Pediatrics and should be taken as law. Children under the age of 16 do not have the development necessary for operating a vehicle of this magnitude. There are options for children who are interested in riding an ATV, as manufacturers make smaller models with less powerful engines for children. Before anyone gets on an ATV, he or she should be sure to know the proper rules for operating the vehicle. Training courses for ATV driving are offered all over the country, so be sure to enroll in one before you begin operating the vehicle. Finally, the rider should wear protective gear—including a helmet, gloves, boots, and eye protection—to protect their body from hazards of riding an ATV or potential accident.
Many ATV accidents occur when more than one passenger is riding on the vehicle. ATVs are designed for only one person, and the weight of two individuals can cause the vehicle to turn over. Also, the distraction of having another person on the ATV can cause the driver to wreck. Furthermore, ATVs are designed for off road driving and should not be driven on hard surfaces like concrete or asphalt. In addition to the hazards of riding on a road with cars and trucks, ATVs do not perform well on hard surfaces and are incredibly difficult to control.
Most accidents occur while the driver of the ATV is using the vehicle improperly. This includes navigating dangerous terrain, riding at excessive speeds, or dangerously interacting with other individuals or ATVs. Keep in mind that your ATV is designed to go a certain speed over certain terrain, so speeding should be avoided at all costs, since the vehicle can tip over or crash. Furthermore, any stunts or tricks using an ATV should be avoided, since that is the easiest way to get injured.
While riding an ATV, be sure to have some sort of communication device, whether it is a walkie talkie or a cellular phone that can call for help in case of emergency.
Boat Loans – Enjoy the Privilege of Being a Boat Owner
Owning a boat of your own is a matter of privilege. You can explore the wonders of the sea with your own boat rather than renting a boat, which is available for a limited time span. What is stopping you from buying a boat of your own? Is it lack of sufficient funds in your account? If your answer is yes, then no need to worry any longer, boat loans are here to help you get your dream boat.
Boat loans ,facilitate the UK residents with an opportunity to buy a boat of their choice. For some of you a boat may be a passion while for others it could be just a luxurious item. You can choose the boat that suits your personality and need from the variety of boats available in the market ranging from a powered speed boat to a narrow boat and a house boat to a smaller cruiser.
If you have decided to take a boat loan you need to keep few points in consideration. First and the foremost thing you need to do is to decide which boat do you wish to buy and find out its price, this will help you in determining how much funds do you need. The next thing is to unearth how much money do you have which you can invest in purchasing the boat. Both these steps will help you in finding how much money do you exactly need to borrow with a boat loan.
Lenders in the UK offer boat loans ranging from £10,000 to £10,000,000. Thus, you can design your budget accordingly. The best thing about boat loans is that they get approved easily and quickly. Boat loans are usually offered for a term of 5 to 25 years. The amount you can get with a boat loan depends on your credit history as well as your repayment capability.
There are two types of boat loans available in the loan market – secured and unsecured boat loan. Secured boat loan requires a borrower to put some kind of collateral to become eligible for the loan. Tenants can apply for an unsecured boat loan, which does not require a borrower to put a security against the loan. In the same way, homeowners who wish to protect their home from the risk of repossession too can apply for an unsecured boat loan.
Boat loans are offered at both fixed as well as variable rate. In case of a fixed rate loan, you will have to pay fixed sum of money every month, this loan option will help you in accommodating your budget each month. On the other hand, in variable rate loan or adjustable rate loan the interest rate fluctuates with market interest rate. This interest rate loan option will allow you to take advantage of the falling market interest rate. You can choose the interest rate option as per your
Do take into consideration the various fees associated with the boat loan that sometime results in a low cost seeming loan turning out to be costly. A boat loan may accounts for fees such as underwriting fees, processing fees, cost of credit report, and other related costs. Make sure to consider all the cost involved which will help you in deciding which loan option is best suited to your needs.
When you reach out in the market to find the best boat loan there will be enormous number of lenders offering you great loan deals. Now, you have to decide whether want to undergo the lengthy stressful loan process or a fast, easy and cheap loan. Majority of you will opt for second option as everyone wish to save his or her valuable time and money. Online lenders aim to provide you with the comfort of getting a cheap and fast boat loan arranged.
It is easy to apply for a boat loan; you just need to fill in an online loan application form with some of your personal and financial information. Lenders will get back to you with the loan deals they find appropriate for you. Don’t accept the very first loan deal you get. Search around, collect loan quotes from lenders and compare them to find the loan deal that you find to be perfect matching your needs and desires to the best.
Exploring the wonders of the sea with a boat of your own, this may be a dream come true for some of you. Don’t let this dream fade away. Borrow a boat loan and get the finance you need to finance your dream boat.