March 1, 2010

There are many flood damaged cars being sold on the market. Usually, flood damaged cars, SUVs and trucks are placed in salvage yards. Some though, are made spick and span and put into the car market and they will be up for sale. But the problem is, there really are no tell tale signs of flood damage that would give them away. This is because the cars will be restored so they would look almost like new. The damages caused by the flood would be erased or covered. After the changes, the cars will then be sold to unsuspecting buyers who thinks they are getting a good bargain.

Fact is flood damaged cars are being moved by unscrupulous merchants. Consumers can and should protect themselves against being taken advantage of in the auto market. Luckily, there are several things consumers can do to protect themselves from buying flood damaged cars.

The best things a consumer can do to be sure if a car is flood damaged or not is to get the history of the vehicle. You can do this by submitting the vehicle identification number (VIN) of a car to a website which provides vehicle history information. What these websites do is search a nationwide database of car information then gathers research on the car’s title, maintenance record, registration, and odometer. You will instantaneously know if the vehicle has been stolen, has had a troubled past, or has had its odometer rolled back through the report that the website will return. Just a little research on a car’s history will reveal if it has been salvaged, flooded, rebuilt, or is basically a “lemon.”

Prospective car buyers should be aware of flood damaged vehicles being sold on the car market. Why shouldn’t you buy flood damaged cars? Well simply because water leaves a lasting damage. Even if the devices and machines requiring electricity will restore it, it will probably fail sooner or later because mold and mildew aren’t’ easy to remove. And when a car is flood damaged any warranty warrant is voided.

Below are several things you can do to check if a car is flood damaged:

Check for moisture and dirt.
Flood damaged cars usually have moisture trapped and dirt inside the lights. Dampness can also be seen inside the compartment with glovesF, console and trunk so you better inspect these spots. Dirt, which can also be a sign of flood damage, can also accumulate under the hood. Moisture can also accumulate under the seat. Of course, rust is another telltale sign of flood damage.

Smell the car
Mildew can be easily detected by smelling. Mildew often forms on soaked fabrics so sharpen your sense of smell when you’re on the lookout for a new vehicle. Also try to detect other smells that could be caused by flood damage like spilled oil or fuel.

Check if components match
Mismatched component could mean that the component are changed hurriedly after the car has been salvaged from a flood. So try to see if the carpet, seats and stereo components looks too new for the car.

Also try to check if the car has been titled several times from different states, which is usually a hint that its owners are trying to erase the questionable and negative history of the car by looking for spots where disclosing defects is not required or is easily evaded. Cars that are titled several times are usually salvaged or totaled.

Test drive
Of course the best way to check the performance of a car is to take it for a test drive. Check the electrical system including all the lights and the sound system.

Ask an expert
Have an expert mechanic or technician check the car. Have a second opinion if you may. Expert mechanics and car technician can detect flood damaged cars easily than ordinary people.

Remember that in buying a vehicle, never ever take a chance. Buying a damaged vehicle can cost you more than your money. It could also bring serious accident even death. If you suspect that someone is selling you a car that has been flood damaged immediately say no then walk away. The dough you will save in buying a flood damaged car will quickly go away by the headache it will bring.

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February 24, 2010

Used cars are not as risky a purchase as they used to be. Thanks to certification programs, the industry is changing for the better, and more Americans are turning to used cars for better value.

Certification offers a way to weed out unscrupulous used car dealers who might sell damaged cars. The nearly 600,000 vehicles damaged by floodwaters from last year’s storms are prime candidates to end up as part of such scams.

As more car buyers turn to certified vehicles, the number sold this year is expected to increase significantly from the 1.6 million purchased in 2005. Besides costing less than their new-car counterparts, certified vehicles also come with many of the same benefits, eliminating much of the guesswork associated with buying used.

Be wary, however, because not all certification programs are created equal. To help sort out the best from the worthless, used-car experts offer the following tips:

Certified by whom? Make sure you know who sets the standards for the certification program and who makes certain they’re being enforced. Look for a manufacturer-backed program-the best people to certify a car are the ones who built it and specialize in that make. Most manufacturers will offer a limited warranty in addition to honoring the car’s original warranty.

Do your homework. Research the makes and models that make sense for your driving needs. Check safety and reliability reports published online and prices from your whole area.

How was the car certified? At a minimum, a car should have a detailed mechanical inspection and a vehicle history report. Carfax Vehicle History Reports are a mandatory part of the certification process for 80 percent of today’s manufacturer-certified programs.

What does it get you? The certified used car you’re buying probably comes with an extended warranty. Make sure you know exactly what this covers and for how long. You can always add additional coverage.

Ask for more. If you want roadside assistance, options added to the car, free oil changes or anything else, don’t be afraid to ask.

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Instant Car Loans Making The Car Buying Process Simple

Because of instant approval car loans, many people are enjoying a hassle-free car buying experience. Purchasing a new or used vehicle is a time of excitement and frustration. Pushy salesmen and dealerships have a habit of taking advantage of unsuspecting buyers. Additionally, the temptation to buy more than you can afford is a common problem. However, securing financing before entering a dealership showroom is a great way to take the hassle out of buying a car

Understanding Instant Car Loan Basics

New car buyers and those unfamiliar with car buying tactics may pay sticker price for a vehicle and accept dealership financing without shopping around. Unfortunately, dealerships prey on buyers of this sort. Prior to buying a car, it is essential to shop around and compare offers from various lenders. To avoid a dealership scam, you may consider getting approved for an auto loan before beginning your search.

The internet is loaded with auto loan lenders offering instant approval loans. With instant approvals, you receive a response immediately. The applications are easy to understand. Simply input basic information such as income, employer, desire amount, etc. Instant approvals work two ways. The lender may either approve a stated loan amount, or determine an affordable loan amount based on your income and debts.

How to Find a Lender that Offers Instant Approvals

Various online auto lenders offer instant approvals. However, if you are hoping to compare several instant approval offers, use an auto loan broker. This is the easiest and simplest way to shop around for the best auto loan offer. Brokers are recognized for supplying multiple offers. Savvy shoppers know the benefits of this feature.

By obtaining multiple offers, you are able to compare auto loan rates, terms, and services. Choosing the loan offer with the lowest rate will lower your car payment. Even if the dealership offers you a finance package, before accepting their offer, complete an online quote request. Dealerships tend to adjust auto loan rates to benefit their bottom line.

Completing the Car Loan Paperwork

After receiving the instant approval quotes, the next step involves choosing the auto loan lender with the best offer. If using a broker, you are obligated to complete an official loan application with the lender. Upon approval, the lender will deliver a check to you. Once you decide on a car, and negotiate a sales price, you simply sign the check over to the dealership, which completes the transaction.

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January 24, 2010

Low Interest Rate New Car Loan – Tips For A Smooth Car Buying Experience

The car buying process varies for each person. If you have purchased or financed several vehicles, you likely know several tricks and techniques for securing a good deal. On the other hand, if you have never bought a new or used vehicle, you may fall victim to dealership scams. Here are a few tips to help make the car buying experience easier.

How Much Do You Want to Pay?

Before entering a showroom or dealership, do your research. What types of car do you want to buy? How much are you willing to pay monthly? Walking into a dealership blindly is a bad move. Car salesmen are very clever. Additionally, they have several tactics for convincing car buyers to purchase a vehicle they cannot afford.

To avoid overspending, research various cars and their prices. Take advantage of auto loan calculators. These provide a rough estimate of future car payments. When negotiating with a salesperson, let them know upfront how much you are willing to spend on monthly payments.

Check Your Credit Report Beforehand

When determining an interest rate for a new vehicle, finance companies will review your credit report. Prior to applying for a loan, obtain a copy of your personal report. This way, you have an idea of the interest rate you qualify for. Moreover, credit reports will reveal credit problems and inaccuracies that may hinder you from obtaining a low rate. If problems are present, fix credit blemishes before applying for a car loan.

In some instances, you may improve your credit by simply paying current creditors on time and reducing debt to income ratio. If possible, delay financing a vehicle until your credit score improves.

Get Pre-Approved for an Auto Loan

Dealership financing is offered. However, to get the best rate possible, you should obtain quotes from at least three auto loan lenders. If you are looking to speed up the process, consider getting pre-approved for an auto loan.

A pre-approval involves completing a loan application and providing necessary documentations. The lender will approve you for a specific amount. This is ideal because you avoid overspending. In most cases, lenders approve you for an amount that fits comfortably into your budget.

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Reasons For Buying A Car

Author: admin
January 13, 2010

Besides the obvious reason, transportation, are there any other pressing reasons for buying a car? Perhaps it is a necessity like requiring inexpensive transportation to and from work. Or, maybe you are a stay at home Mom or Dad and need a vehicle to haul children around to school and various other activities. Regardless of your reason, make certain that purchasing the car is for a valid purpose and not just because you want to outdo The Joneses.

In this guide we will show you some of the pitfalls to avoid as well as information to make your selection much easier. The following are basic reasons you should consider when making that all important car purchase.

Is it a good buy?

The best time period to buy that car you have always dreamed of having is later in the month. Usually, there are numerous rebate programs and bonus offered by months end based on a dealers monthly sales quotas. The idea is that, sometimes dealers fall short of meeting their sales objectives. If their performance is assessed by the end of the month this can prove to be good news to most car buyers since dealers now have no choice but to sell vehicles at a price that is lower than their norm. They are pressed to make more sales that will count for their monthly sales and that puts you at an advantage as a buyer.

Peace of mind

Sometimes dealers do a song and dance routine just to make that sale. The result is that often car buyers end up with car features they realize later on they do not really need and a price they actually could not afford. You can avoid this potential stress by always remembering to trust your instincts. If ever you feel in doubt, the answer — dont — do not let yourself be pressured to making that purchase now.

This is a common strategy of car dealers wherein they compel the customer to buy that car, now, this moment, today!

Do not forget that you should always sleep on it and then decide. This is a lot better than making your mind up now and forever holding your peace.

First Impression

To quote a common clich, first impressions usually last. Though not always true, when buying cars, you could get many ideas just by observing how car sales people deal with you. Usually, these non-verbal signals are fairly correct enough enabling you to know what to expect from your car purchase.

If at any time you feel that the person selling you the car is not trustworthy or simply do not like him or her, always remember that you have the option to leave. It is advisable that you do not sell yourself too much. 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 not many 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 one to be more confident then in negotiating the price.

The Manufacturer’s Suggested Retail Price

In laymans term, 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 are 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 cars purchase price and have yourself a very good deal and hopefully, a very good car as well.

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December 18, 2009

Nowadays, life can be pretty hard. Everything is increasing with prices escalating out of site! This makes us all targets of potential scams and frauds.

With all these swindlers and scammers lurking just about anywhere, it is best to always be on guard and to know the things to be avoided in order to prevent the probability of being a victim of frauds and swindles.

Consequently, people who are buying used cars should also be aware of the different fraudulent activities being employed by unscrupulous people in order to have the best buy of used cars.

Moreover, people who are aware that the cars they have bought are stolen, chances are, they will be held liable.

Here are some things to avoid when buying used cars:

1. Used car buyers should avoid any transactions that are too good to be true. This will only make the matter worst if the buyer will believe that the deal is the best-used car deal ever.

2. Buyers should avoid buying used cars from sellers that do not provide a permanent address or the actual place of work of the phone number given.

3. It is important for a buyer to check on the VIN or the vehicle identification number plate. It must be securely fastened onto the used cars dashboard, with no rivets that are loosened.

Loosened rivets would mean that the VIN plate does not fit or it has been previously removed.

4. Also, the buyer should also avoid buying used cars that have VIN plates that are touched up, its paint is newly retouched, and the numbers look as if they are not the original factory numbers.

VIN plates can be easily swapped by a thief and use those that are taken from a destroyed vehicle.

5. As much as possible, it would be better to avoid buying a used car that is freshly painted. There are instances wherein the stolen cars identity is being changed through changing its paint color.

6. Used car buyers should avoid buying cars from a seller that cannot present the cars insurance policy. This could mean that the car is stolen or the seller is not the true owner of the car.

It is extremely important for the buyers to take note of these things before buying a used car. An ounce of prevention really is worth a pound of cure!

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December 3, 2009

Used car buyers need to get their moneys worth as soon as their purchase has been confirmed. New or not, cars should have warranties. It is a right, not a privilege.

The following are tips to better your chances of getting the best warranty for your money. Know what you are buying

Some people who avail themselves of auto warranty coverage usually have a notion that they are purchasing a special shield that protects their vehicle from unnecessary wear and tear. Though this is true, this idea is primarily bound to a contract that the buyer should read prior to signing anything. There are instances when consumers buy a used car then expect the warranty company to get their cars back in shape for them. Buyers then unnecessarily file a complaint and get angry once their request is denied simply because their understanding of the conditions that constitute the warranty differs from what the warranty company has explicitly stated on their contract. It is advisable therefore to read in order to avoid uncalled for weeping.

See through the lies.

Do not believe when auto warranty companies claim that their warranty can not be refunded. One hundred percent of extended car warranties are refundable within thirty days provided no claims have been made. If in any instance you feel that you were in some way forced to purchase or getl a Ford, Hyundai or Honda warranty that you didnt want, do not hesitate to get your money back.

Sift through their trashing

If a warranty company has a good enough standing, it does not need to trash the competition or badmouth the other companys warranty contract. You need to see them point out their own warranty company merits, offers and packages and not the competitors worthless clauses in order to make a sale. Though it is a competitive world out there, the only way to stand out is to offer excellent and ethical service. In this case, action speaks louder than words.

Avoid buying auto warranty from you dealer

Though it is extremely convenient to do so, the effects are short-term. The price car dealers offer for extended auto warranty, believe it or not, is usually two to three times higher than the normal rate. Plus, their contracts have far too many limitations and unfair clauses that buying warranties from first-rate warranty companies that provide better service for half the price, is a clearer and should be – the only option.

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What The New California Car Buyers Bill of Rights Means To You

Beginning on July 1, 2006, California granted its car-buying residents a new set of protections under the Car Buyers Bill of Rights. Not only will these new rights change the way cars are bought and sold in California, they’re already spreading across the country and being adopted by other states as well.

The protections under the new law apply to vehicles (cars, trucks, SUVs) purchased in California for personal use from a dealer/dealership. They do not apply to private sales, out of state purchases, commercial vehicles, RVs and motorcycles.

What are the protections?

1. The Two Day Return

Used car buyers now have the opportunity to protect themselves with a two-day return option. This is designed to help buyers who may not have had the time to have the vehicle properly inspected by a mechanic, for those who are purchasing a car “as is,” or for those car buyers who might have succumbed to the pressure to buy on the spot.

There are a few limits on the two-day return protection. First, the option only applies to used vehicles purchased through a dealership for personal use that cost $40,000 or less. Second, the dealership can charge you for this option (anywhere from $75 to $400, plus a restocking fee, all depending on the price of the vehicle). Additionally, the vehicle must be returned within two days, having been driven fewer than 250 miles, and be in the same condition as when it was purchased.

2. Trade-Ins

With the two-day return option, the dealer is required to hold onto your trade-in until the option expires. If the dealer sells your trade-in early, you’re entitled to the vehicle’s fair market value or the price listed in the cancellation agreement, whichever is more.

3. Certified Used Cars

In the past, any used car that a dealer has had inspected by a mechanic could be advertised as a “certified pre-owned vehicle.” This is no longer the case. Dealers can no longer advertise (or sell) certain problem cars as “certified pre-owned vehicles.”

4. Seller Disclosures

Under the new law, auto dealers must provide the following in writing:

a. The price of the vehicle without extra options and add-ons.

b. The specific price for add-ons, such as anti-theft devices, fabric protection, extended service contracts and “gap” insurance.

c. A copy of your credit score if you’re getting a loan through the dealership. Your credit score will range from 300 to 900, and reflect your credit worthiness as primarily determined by the timeliness of your past loan payments. If your credit score is high enough, you can often benefit from lower interest rates.

5. Limit On Interest Rate Markups

It’s a common practice in the industry for auto lenders to pay dealers an incentive for getting buyers to pay a higher interest rate than they should be paying, according to their credit history. This additional boost in the interest rate is referred to as a “markup.” The new California Car Buyers Bill of Rights limits the markup a dealer can receive from a lender to a maximum of 2.5% for loans up to 60 months and to 2% for longer loans.

The New California Car Buyers Bill of Rights is designed to make it safer for you to purchase your next used vehicle through a dealership without fear that you’re going to get stuck with something you either don’t want or something that doesn’t live up to its advertising. Knowing your rights can save you both months of headaches and significant money, but only if you take advantage of them.

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November 2, 2009

Where Can I Buy Cars For As Little As $100.00

You’ve heard claims like you can buy cars for as little as $100.00 at repossessed car auctions, but is this true? If so, where does one find listings of repossessed car auctions?

To know where to go to purchase one of these cars, you must first know what a repossessed car is. Most of the time cars get repossessed by the banks, because the owners have defaulted on the car loan or lease payment. When this happens, the institutions such as the banks, the police, the customs or the IRS offer these repossessed cars offered for sale at auctions.

The main reason why repossessed cars are priced cheaply is not so much for the state it was found in or the brand, as much as the continuing supply and the expense of storing these cars, that tend to lower their prices.

If repossessed cars are dirt cheap, why do only a very few buy at these kinds of auctions?

Three reasonable explanations have been put forth; one is that there is a lack of information on these kinds of auction, including pertinent information on schedules, venues and which institutions actively hold these kinds of auctions.

Another credible point put forward is that the reason why this is so, is because car dealers want to keep these auctions a secret. They can re-sell the cheap auctioned off car at retail prices to the public. Allowing them to generate more profits.

The third explanation that a majority of car buyers find it hard to change their buying pattern. They are used to buying new cars from a car dealership. Provided you do your homework and research well, there is no reason you can not go home with an also brand new vehicle priced at $200.00 or less.

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October 29, 2009

Before buying a car new or used you should ask yourself why exactly do you need a car. Other than the obvious reason of having convenient transportation, are there any other pressing reasons for buying a car?

You should try to identify the reasons for buying a car and justifying if they are indeed valid reasons. Perhaps it is a necessity like requiring inexpensive transportation to and from work. Or, maybe you are a work at home mom or dad and need a vehicle to haul children around to school and various other activities. Regardless of your reasons, make certain that purchasing the car is for a valid purpose and not just because you want to outdo your neighbors.

The following are basic questions and reasons you should consider when making that all important car purchase:

How They Treat You – Though not always true, when buying cars, you could get many ideas just by observing how car sales people deal with you. Usually, these non-verbal signals are fairly correct enough enabling you to know what to expect from your car purchase.

Is The Price Right? – The best time period to buy that car you have always dreamed of having is later in the month. Usually, there are numerous rebate programs and bonus offered by months end based on a dealers monthly sales quotas. The idea is that, sometimes dealers fall short of meeting their sales objectives. If their performance is assessed by the end of the month this can prove to be good news to most car buyers since dealers now have no choice but to sell vehicles at a price that is lower than their norm. They are pressed to make more sales that will count for their monthly sales and that puts you at an advantage as a buyer.

Peace of Mind – Sometimes dealers do a song and dance routine just to make that sale. The result is that often car buyers end up with car features they realize later on they do not really need and a price they actually could not afford. You can avoid this potential stress by always remembering to trust your instincts. If ever you feel in doubt, do not let yourself be pressured to making that purchase now.

Is The Dealership Trustworthy? – If at any time you feel that the person selling you the car is not trustworthy or simply do not like him or her, always remember that you have the option to leave. You are always free to politely walk away, anytime, anywhere, and in any way you like it. But if there are not many 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.

Incentives – There are instances when manufacturers provide the dealers with a little something extra, like money, rebates or a bonus because they are 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 cars purchase price and have yourself a very good deal and hopefully, a very good car as well.

Manufacturer’s Suggested Retail Price – 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.

Finally, do not forget that you should always sleep on it and then decide. This is a lot better than making your mind up now and forever holding your peace!

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