My Extended Car Warranty Info
Tuesday, August 15, 2006
Auto Service Contracts 101: The Need-to-Know Facts
Today, buying car is not just simply buying a car. This is because when a person wants to buy a car, there are many additional services that tag along. One great example of these so-called “extras” is the auto service contract.
These auto service contracts are not necessarily required by most car dealers. However, most car buyers are enticed to get one in order to protect themselves against unforeseen circumstances such as expensive car repairs.
Generally, auto service contracts are pledges made by the agency, usually the car dealer, responsible to provide the necessary services or repairs that the buyer or the contract holder is entitled for.
The problem with some people is that they categorize auto service contract as the same with extended car warranties. What they do not know is that car warranties are normally included in the price of the new car bought while auto service contracts can be obtained any time even if the person did not buy a new car. Moreover, auto service contracts are always an additional cost for the car buyer meaning he may or may not obtain an auto service contract.
However, just like the other financial decisions, careful deliberation is extremely important before making some final decisions. This is because not all auto service contracts are made equal.
Here is a list of the factors that need to be considered when getting an auto service contract:
1. Buyers should be aware of the terms and conditions stipulated in the auto service contract.
In every agency or company that provides auto service contracts, each has its own terms and conditions. Hence, it is important for every buyer to know first the terms as stipulated in the contract so as to know what kinds of details are included and what are those that are not included.
2. Buyers should know the specific entity who will perform the required services.
In this way, the buyer would know what goes on when a certain service is required. In this way, the contract holder would know where to ask for the repairs and to whom they should ask for the needed services.
3. Know the reputation of those who will provide auto service contracts.
It is extremely important to know how long the company or the dealer has been in the business. Along with it comes the reputation that has been built for so many years of reliable services and performances that the customers were able to testify.
The important thing here is that people should be aware of what they are paying for. After all, it’s their money that is at risk.
These auto service contracts are not necessarily required by most car dealers. However, most car buyers are enticed to get one in order to protect themselves against unforeseen circumstances such as expensive car repairs.
Generally, auto service contracts are pledges made by the agency, usually the car dealer, responsible to provide the necessary services or repairs that the buyer or the contract holder is entitled for.
The problem with some people is that they categorize auto service contract as the same with extended car warranties. What they do not know is that car warranties are normally included in the price of the new car bought while auto service contracts can be obtained any time even if the person did not buy a new car. Moreover, auto service contracts are always an additional cost for the car buyer meaning he may or may not obtain an auto service contract.
However, just like the other financial decisions, careful deliberation is extremely important before making some final decisions. This is because not all auto service contracts are made equal.
Here is a list of the factors that need to be considered when getting an auto service contract:
1. Buyers should be aware of the terms and conditions stipulated in the auto service contract.
In every agency or company that provides auto service contracts, each has its own terms and conditions. Hence, it is important for every buyer to know first the terms as stipulated in the contract so as to know what kinds of details are included and what are those that are not included.
2. Buyers should know the specific entity who will perform the required services.
In this way, the buyer would know what goes on when a certain service is required. In this way, the contract holder would know where to ask for the repairs and to whom they should ask for the needed services.
3. Know the reputation of those who will provide auto service contracts.
It is extremely important to know how long the company or the dealer has been in the business. Along with it comes the reputation that has been built for so many years of reliable services and performances that the customers were able to testify.
The important thing here is that people should be aware of what they are paying for. After all, it’s their money that is at risk.
Where To Get Great Used Cars
A franchised new car dealership is a reliable, if not the only, source for anyone who wants to buy a new car. But to those who prefer buying used or previously owned cars, there are plenty of options and sources one could choose from to be able to make that vehicle purchase the perfect one.
The following are some of the readily as well as easily available resources to consider when buying a used car.
The Used Car Superstore
Imagine it as the Wal-Mart of used cars. There have been numerous used car superstores that have mushroomed over the last five years. These superstores usually have a large inventory of used cars, and can number anywhere from 400 to 500 vehicles. The cars found in these stores more often than not are late models.
The vehicles found in these stores come from auctions that cater specially to car dealers. The good thing about buying from these used car superstores is that the warranty they provide are often equivalent to the warranty coverage provided by dealers who sell new cars. However, it is still best to compare.
New Car Dealer
The logic here is that since new car buyers usually trade in their old cars when they buy a new one, the collection that new car dealerships have are almost always extensive. So used car buyers have a wider range of vehicles to choose from. Also, new car dealerships provide better reconditioning to the used cars traded to them. They are also a more reliable source of used cars because their business is more established compared to other used car dealers. Be aware though that sometimes it would take a lot of negotiation on the price of the vehicle to be purchased. They may also attempt to make you buy more car than what you would actually need.
Used Car Dealers
There are usually hundreds of used car dealerships in every state. Sometimes, they are small operations that contain not more than fifteen cars in a lot.
Established used car dealers, can have as many as 100 cars or more on their lot. The great thing about buying from used car dealers is that the prices they offer are a lot less than new car dealerships. Also, it is fairly easier to negotiate with them. Not so good news though, the quality of these cars are usually less than the new ones of course. There also may be a smaller selection of makes and models.
Private Owners
The good thing about buying from private owners is that the prices that they offer are usually reasonable compared to dealers because this is in accordance with book values. You also get the opportunity to actually speak with the owner of the vehicle and witness for yourself how the car was or was not, cared for. A potential disadvantage of this scenario, however, is that it could be a bit inconvenient driving to the private owner’s place especially if you are considering looking at eight different cars. Basically that would be eight different places, time and appointments.
Beware though private owners who have a stable of used cars to sell may actually be a dealer. Do not be afraid to ask if you could possibly see the title and registration. Start to get suspicious if you see it is only a few days old.
Car Auctions
The last decade has seen the development of public auctions for vehicles. Originally, auctions like these were reserved primarily for licensed car dealers. Now, even individuals have the opportunity to bid aggressively for used cars. The quality of these cars put up for auction, as well as the selections of vehicles, actually vary from one auction to another. There are those auctions that specialize in late model vehicles while there are others which dedicate themselves to cheaper and less expensive vehicles. The good thing about buying used cars from auctions is that you can conveniently compare prices and cars because they are shown side by side with each other.
Also, the prices that they offer are most likely lower than dealerships. However, there is not much chance for you to thoroughly inspect the vehicle being auctioned off. And since you are buying from an auction, it is therefore understood that all sales are final. Any car purchased is automatically yours. Plus, the bidding frenzy could take a hold of anyone and there is a great possibility that you could pay way more than what a vehicle actually costs.
We will delver deeper into the subject of car auctions in an upcoming post.
The following are some of the readily as well as easily available resources to consider when buying a used car.
The Used Car Superstore
Imagine it as the Wal-Mart of used cars. There have been numerous used car superstores that have mushroomed over the last five years. These superstores usually have a large inventory of used cars, and can number anywhere from 400 to 500 vehicles. The cars found in these stores more often than not are late models.
The vehicles found in these stores come from auctions that cater specially to car dealers. The good thing about buying from these used car superstores is that the warranty they provide are often equivalent to the warranty coverage provided by dealers who sell new cars. However, it is still best to compare.
New Car Dealer
The logic here is that since new car buyers usually trade in their old cars when they buy a new one, the collection that new car dealerships have are almost always extensive. So used car buyers have a wider range of vehicles to choose from. Also, new car dealerships provide better reconditioning to the used cars traded to them. They are also a more reliable source of used cars because their business is more established compared to other used car dealers. Be aware though that sometimes it would take a lot of negotiation on the price of the vehicle to be purchased. They may also attempt to make you buy more car than what you would actually need.
Used Car Dealers
There are usually hundreds of used car dealerships in every state. Sometimes, they are small operations that contain not more than fifteen cars in a lot.
Established used car dealers, can have as many as 100 cars or more on their lot. The great thing about buying from used car dealers is that the prices they offer are a lot less than new car dealerships. Also, it is fairly easier to negotiate with them. Not so good news though, the quality of these cars are usually less than the new ones of course. There also may be a smaller selection of makes and models.
Private Owners
The good thing about buying from private owners is that the prices that they offer are usually reasonable compared to dealers because this is in accordance with book values. You also get the opportunity to actually speak with the owner of the vehicle and witness for yourself how the car was or was not, cared for. A potential disadvantage of this scenario, however, is that it could be a bit inconvenient driving to the private owner’s place especially if you are considering looking at eight different cars. Basically that would be eight different places, time and appointments.
Beware though private owners who have a stable of used cars to sell may actually be a dealer. Do not be afraid to ask if you could possibly see the title and registration. Start to get suspicious if you see it is only a few days old.
Car Auctions
The last decade has seen the development of public auctions for vehicles. Originally, auctions like these were reserved primarily for licensed car dealers. Now, even individuals have the opportunity to bid aggressively for used cars. The quality of these cars put up for auction, as well as the selections of vehicles, actually vary from one auction to another. There are those auctions that specialize in late model vehicles while there are others which dedicate themselves to cheaper and less expensive vehicles. The good thing about buying used cars from auctions is that you can conveniently compare prices and cars because they are shown side by side with each other.
Also, the prices that they offer are most likely lower than dealerships. However, there is not much chance for you to thoroughly inspect the vehicle being auctioned off. And since you are buying from an auction, it is therefore understood that all sales are final. Any car purchased is automatically yours. Plus, the bidding frenzy could take a hold of anyone and there is a great possibility that you could pay way more than what a vehicle actually costs.
We will delver deeper into the subject of car auctions in an upcoming post.
What are YOUR reasons for buying a car?
Reasons for Buying a Car
Besides the obvious reason, that being transportation, just like water a car is now considered a necessity in most urban areas. One of the reasons to consider when buying a car is if the vehicle being purchased is a good deal. Is it in good condition? How long a life does it have left? Is it an excellent ride? Does it have a great warranty, etc.
As we said, it’s virtually impossible to get along without a car and if you can’t afford a new car, following are some basic reasons you should consider when making that all important car purchase.
Is it a good buy?
The best time period to buy a car is later in the month. Usually, there are numerous rebate programs and bonuses offered by month’s end based on a dealer’s monthly sales quotas. The idea is, sometimes dealers fall short of meeting their sales objectives if their performance is assessed by the end of the month. This happens more often than not. The result of this is good news to most car buyers. Since dealers are more desperate to meet their quotas, they now have no choice but to sell the vehicle at a lesser than normal price just to make the sales they need to meet their goals.
Peace of mind
Sometimes dealers will do a “dog and pony show” just for them to make that sale. The result is that car buyers then end up with features that they realize later on they do not really need with a price they actually could not afford. The moral? Don’t buy more than you absolutely need. Avoid unnecessary stress and/or sleepless nights.
Always remember to trust your instincts. If ever you feel in doubt, the answer to that is don’t -- do not let yourself be pressured into making that purchase now. This is the common strategy of car dealers where they would compel the customer to buy that car, now, this moment, today!
Do not forget that you can always sleep on it and then decide. This is a lot better than making your mind up now and forever holding your peace. If the car is gone the next day, there’s probably a good reason why you shouldn’t have had it in the first place.
First Impression
First impressions usually last. Though not always true, in buying cars, you can gather a great deal of information by just observing how car salespersons deal with you. Usually, these non-verbal signals are fairly correct enough to give you a good idea of what to expect from the salesperson and your car purchasing experience.
If at any time you feel that the person selling you the car is not trustworthy or you simply do not like him or her, always remember that you have the option to leave. And, time is precious, especially yours. So do not waste it. You are always free to politely walk away, anytime, anywhere, and in any way you like it. But if there are just a few car dealers in your area, you may want to linger for a few moments more and wait until the negotiations you have with your dealer breaks down and you simply have no option but to run off.
The Invoice Price
Another thing to consider when buying a car is the invoice price. Make sure to ask that you see the invoice. If dealers are working their tails off against it, you have enough reason to believe that the car being offered is an unpleasant deal.
Usually, the price on the invoice is the cost the dealer paid the manufacturer for buying the car. This is before any rebates or incentives were included. Once this is known, only then will you have an idea as to how much the dealer could profit from each vehicle sold. Knowing this information could enable you to feel more confident in negotiating the price.
You may also run across this occasionally when purchasing a “used car.” This would occur primarily where you are buying a very late model used car with low mileage and still under the factory warranty.
The Manufacturer's Suggested Retail Price
In layman’s terms, this is commonly called the sticker price. This is the price one usually sees in the window of the car that is being sold.
Never ever consider paying the amount stated on the sticker price. This amount is just the starting point to your negotiations with the dealer.
Incentives
There are instances when manufacturers provide the dealers with a little something extra, like money, rebates or a bonus because they were able to sell cars that are either overstocked or undersold. Make sure that before actually purchasing a car, you were able to know if that car you are buying has some dealer incentives attached to it. If so, take off that amount from the car’s purchase price and have yourself a very good deal and hopefully, a very good car as well.
Remember most of our discussion on invoice pricing pertains to very late model cars. It was worth mentioning here in case you do run across the opportunity to purchase this type of “used car.”
Besides the obvious reason, that being transportation, just like water a car is now considered a necessity in most urban areas. One of the reasons to consider when buying a car is if the vehicle being purchased is a good deal. Is it in good condition? How long a life does it have left? Is it an excellent ride? Does it have a great warranty, etc.
As we said, it’s virtually impossible to get along without a car and if you can’t afford a new car, following are some basic reasons you should consider when making that all important car purchase.
Is it a good buy?
The best time period to buy a car is later in the month. Usually, there are numerous rebate programs and bonuses offered by month’s end based on a dealer’s monthly sales quotas. The idea is, sometimes dealers fall short of meeting their sales objectives if their performance is assessed by the end of the month. This happens more often than not. The result of this is good news to most car buyers. Since dealers are more desperate to meet their quotas, they now have no choice but to sell the vehicle at a lesser than normal price just to make the sales they need to meet their goals.
Peace of mind
Sometimes dealers will do a “dog and pony show” just for them to make that sale. The result is that car buyers then end up with features that they realize later on they do not really need with a price they actually could not afford. The moral? Don’t buy more than you absolutely need. Avoid unnecessary stress and/or sleepless nights.
Always remember to trust your instincts. If ever you feel in doubt, the answer to that is don’t -- do not let yourself be pressured into making that purchase now. This is the common strategy of car dealers where they would compel the customer to buy that car, now, this moment, today!
Do not forget that you can always sleep on it and then decide. This is a lot better than making your mind up now and forever holding your peace. If the car is gone the next day, there’s probably a good reason why you shouldn’t have had it in the first place.
First Impression
First impressions usually last. Though not always true, in buying cars, you can gather a great deal of information by just observing how car salespersons deal with you. Usually, these non-verbal signals are fairly correct enough to give you a good idea of what to expect from the salesperson and your car purchasing experience.
If at any time you feel that the person selling you the car is not trustworthy or you simply do not like him or her, always remember that you have the option to leave. And, time is precious, especially yours. So do not waste it. You are always free to politely walk away, anytime, anywhere, and in any way you like it. But if there are just a few car dealers in your area, you may want to linger for a few moments more and wait until the negotiations you have with your dealer breaks down and you simply have no option but to run off.
The Invoice Price
Another thing to consider when buying a car is the invoice price. Make sure to ask that you see the invoice. If dealers are working their tails off against it, you have enough reason to believe that the car being offered is an unpleasant deal.
Usually, the price on the invoice is the cost the dealer paid the manufacturer for buying the car. This is before any rebates or incentives were included. Once this is known, only then will you have an idea as to how much the dealer could profit from each vehicle sold. Knowing this information could enable you to feel more confident in negotiating the price.
You may also run across this occasionally when purchasing a “used car.” This would occur primarily where you are buying a very late model used car with low mileage and still under the factory warranty.
The Manufacturer's Suggested Retail Price
In layman’s terms, this is commonly called the sticker price. This is the price one usually sees in the window of the car that is being sold.
Never ever consider paying the amount stated on the sticker price. This amount is just the starting point to your negotiations with the dealer.
Incentives
There are instances when manufacturers provide the dealers with a little something extra, like money, rebates or a bonus because they were able to sell cars that are either overstocked or undersold. Make sure that before actually purchasing a car, you were able to know if that car you are buying has some dealer incentives attached to it. If so, take off that amount from the car’s purchase price and have yourself a very good deal and hopefully, a very good car as well.
Remember most of our discussion on invoice pricing pertains to very late model cars. It was worth mentioning here in case you do run across the opportunity to purchase this type of “used car.”
