Getting a Good Deal on a New Car

A typical Canadian motorist will purchase 10 to 12 cars during the course of his or her life. If you’re planning on buying a new vehicle and want to get a good deal, it’s essential that you do your homework before going to the dealership. Follow the advice below and you will leave the dealership with not only a new car, but also the satisfied feeling of having gotten the best deal possible.

Whittle down your choices

First, you have to decide what kind of vehicle suits your needs. Do you want an SUV with plenty of room for the family or a small car that’s fuel efficient? You have to start by defining your model class and price range.

Do your research

Your next step is to do research on the features, safety ratings and performance reviews. The class of vehicle you prefer may have a dozen different models, so you need to narrow down your selection. Consult dependable online sources such as Edmunds.com, JDPower.com and ConsumerReports.org

Arrange financing off the car lot

Before visiting the dealership, line up the financing for a car purchase through a reputable third party. Auto dealers make much of their profit on financing deals, so third-party financing will likely carry better rates and terms than what the dealer offers. Save money by arranging your car loan off the lot and ahead of time.

Take a test drive

You should take any vehicle you’re considering buying for a test drive. Even if the reviews are positive, you need to be sure that you feel comfortable behind the wheel. So test-drive the vehicle for at least 20 minutes on the same roads that you usually frequent. Adjust the seats and become familiar with the various features.

Negotiate a better price

The car salesperson will try to sell you the car for the Manufacturer Suggested Retail Price (MSRP). This is the published price--what the dealer hopes to sell for, but not what he expects to sell for. If you can knock $500 to $1,000 off that price, you’re probably getting a good deal. But in order to do that, you need to know the factory invoice/wholesale price. You also need to know what factory rebates are available on the car. All this information is available in a CareCostCanada Wholesale Invoice Price Report.

Take the invoice/wholesale price, and deduct all the relevant cash rebates. This is the amount at which to start the negotiations, since this is the true price that the dealer paid for the car from the factory.

If you’re considering a car with a sticker price of $30,000, the dealer may have paid $25,000 for it and wish to make a 10% profit - $2,500. But if push comes to shove, the dealer may settle for a 3 to 4% profit - $750 to $1,000. That would mean a saving to you of as much as $1,750 that would otherwise have been pocketed by the dealer as additional profit. It pays to be an informed and skilled negotiator at the dealership!

For information about PRUDENT VALUE CARS, visit our web site: www.prudentvaluecars.ca

Repair by the dealer or by an independent shop?

Conventional wisdom has it that an independent repair shop is a better bet than a dealership for having your car repaired, but that's not as true today as it used to be.

Dealerships are making a vigorous effort to draw customers to their service departments for repairs.  They now offer longer warranties and certified repair people. This is occurring because profits on new car sales are so low that the service departments have to be profit centres in order for dealerships to survive.

Repairs made under warranty once amounted to 70% of the service done at dealerships. Today, they are only 20% as vehicles are built better and last longer.

Here are the pros and cons for each option.

The dealership

● To retain their franchise licenses, dealerships must pay for training their technicians and providing special tools and equipment. So you can expect their service to be expert.

● Dealers have access to proprietary information on their new Vehicle -information that is often needed for proper diagnosis and repair. Also, dealerships service mostly the makes and models that they sell. Since they are very knowledgeable about those cars, they can usually identify a problem faster.

● The dealership is tied to the auto manufacturer, so if the customer is unhappy with the service or a specific repair, they can always take their complaint to the manufacturer.

● Dealership technicians are usually paid a flat rate. If a specific repair calls for a flat rate of $100 for two hours of work and the repair person can do the job in one hour, they will still receive $100 in compensation. If the job takes longer than two hours, the customer isn’t charged extra. That’s the upside. The downside is that, because of the incentive pay, the repair person may cut corners to finish the repair in less than two hours and pocket more money.

● Many dealers provide a free loaner car or a courtesy shuttle if the customer has to leave the car to be fixed, whereas it's likely the repair shop will expect them to find their own ride home after they’ve dropped the car off.

The independent

● Independent shops tend to be small, employing only three to five technicians. So over time, the customer will come to know the owner and the techs, and is able to pose questions directly to the mechanic working on their car.

● In addition to a personal relationship, the independent offers versatile service for different makes and models. Seasoned mechanics who have worked in independent shops have been exposed to a variety of vehicles. They make excellent resources for difficult repairs.

● Independent shops usually use aftermarket parts unless the customer requests OEM parts (ones supplied by the Original Equipment Manufacturer). Dealerships generally use OEM parts even though they are more expensive than aftermarket parts.

● Traditionally, independents have had lower hourly labor rates than dealerships. That differential is closing, as independents face rising costs. Rapid technological change in the auto industry has resulted in the need for ongoing training and the purchase of new tools and equipment.

● Still, the independent’s repair person is usually paid an hourly rate or a salary. Therefore, the mechanic has no incentive to rush through a repair or to compete with the other techs for the “easier” job.

● Today, top-notch independent repair shops offer nationwide warranties through the auto parts suppliers.

For information about PRUDENT VALUE CARS, visit our web site: www.prudentvaluecars.com 

How To Save Money On Gas By Improving Driving Skills?

Better Driving Tips to Pile Up Sizable Savings over Time

High gas prices are a constant gripe of car owners these days, with many eager to trade in their gas guzzler for a fuel-efficient model. That’s certainly not a bad idea, but even if you keep your gas guzzler, there are some easy ways – both driving techniques and maintenance -- to improve its fuel economy.  By squeezing a few extra kilometers out of every tank of gas that you use, you can pile up sizable savings over time.

Easy on the gas pedal

Don’t floor the gas pedal forcefully whenever you want to accelerate.  Every time you make an abrupt, quick or sudden movement, you’re throwing away money.  Instead, opt for a smoother driving style. Use light, smooth throttle inputs, not deep throttle blips and full-throttle moves.

Easy on the brake

Keep your eyes focused further down the road. If you spot traffic congestion ahead, don’t immediately hit the brake pedal. Instead, take your foot off the accelerator and coast until you need to brake. When you do brake, ease on the pedal and maintain as much forward motion as possible. It takes more fuel — and, therefore, money — to get a car up to speed than to maintain that speed.

Keep your cruising speed low

Wind resistance increases sharply at higher speeds, so keeping your cruising speed below 105 km/hr will make your gas dollars go further. Use cruise control on highways..

Plan Your Day Smartly

Arrange your daily errands so that you make as many stops as possible in one trip. This approach is especially important in rural areas where you may have to travel long distances to reach your destinations. In more congested environments, also consider the time of day so as to avoid stop-and-go traffic. Idling wastes fuel. 

Tune up the engine

A tune-up of your car’s engine can improve its fuel efficiency by 4 percent.  A tune-up that fixes a faulty oxygen sensor can result in an improvement of up to 40 percent. Basic maintenance can also affect fuel efficiency. Even something as ordinary as the grade of oil you use can be a big factor.  It’s always best to use the manufacturer's recommended oil.

Inflate your tires

Be sure to keep your tires properly inflated if you want to get the best fuel efficiency. Tires that are under-inflated have more drag and need more energy in order to move, Check the tire pressures once a month, because leaks and temperature changes will deflate them. An estimated 17 percent of vehicles on the road have under-inflated treads. Properly inflated tires can boost fuel efficiency by as much as 3.3 percent, plus they are safer and will last longer.

 Reduce travel weight

Be sure not to keep heavy items in the trunk of your car when you travel.  By reducing the weight by 45 kilograms, you will gain up to a 2 percent increase in fuel efficiency. Rooftop racks are a bad idea, too.  Even when they are empty, they increase wind resistance, lowering fuel efficiency by 5 percent.

Follow these tips and you will benefit from less fuel consumption no matter what kind of vehicle you drive.

For information about PRUDENT VALUE CARS, visit our web site: www.prudentvaluecars.com

Getting an Auto Tune-up

Like any other complex machine, a vehicle needs preventative maintenance if it is to run well and for the maximum number of years. A tune-up is a regularly scheduled appointment, usually once a year, to do all of the necessary preventative maintenance.

Most car owners take their vehicle to the dealer or an auto mechanic to have the tune-up expertly done, but others have the know-how to do it themselves. Here are some of the key elements a tune-up should include:

Filters

Experts say that changing filters on a regular basis may have the biggest impact of any single factor on a car's lifespan.

The fuel filter eliminates dirt and other particles from the fuel so that it burns cleanly. During the tune-up, the device is either cleaned with a special liquid or replaced outright, depending on its state.

Air filters keep dirt and other particles out of the engine chamber. They should be replaced at least once a year; Failing to change an air filter when it's dirty will result in the engine having less of the air it needs to run properly. Eventually, there will be too much fuel and not enough air in the mixture, and that may cause other parts to fail.

Belt Checks

The engine relies on a set of rubber belts to run, including timing belts and transmission belts. The tune-up includes checking them for cracks or general deterioration, and replacing them if necessary. If a belt snaps while the car is in motion, the engine will stop immediately, so it's important to keep the belts in good condition.

Spark Plugs and Wires

The spark plugs are found in each of the engine’s cylinders, providing the initial spark that it uses to burn fuel. The spark plugs wear out over time, which can cause the engine to turnover slowly or misfire. So they’re usually checked and replaced—along with the spark plug wires. And as they may be permanently attached to the distributor cap, it may have to be changed, too.

(Most new cars have platinum spark plugs, which are longer lasting, and need not be replaced at each tune-up.)

Other parts

Other parts of the car need regular attention, too. If the vehicle has manual transmission, the tune-up should include adjusting the clutch. The battery should be serviced, with distilled water added (if required), and the terminals and cable ends cleaned.

It’s important to replace the PCV valve, which can make the car stall if it becomes clogged. The oxygen sensor(s) also should be replaced at recommended intervals, as a worn oxygen sensor drastically changes engine settings.

Oil and Fluids

Car engines need several fluids to perform properly, including transmission fluid. As part of the tune-up, the mechanic tops up every fluid, including the washer fluid for the windshield wipers. The car also requires an oil change, providing fresh lubricant for all of the engine’s gears to turn.

If you’re planning to do the tune-up in the spring or early summer, have the air conditioning system checked, too, since it won’t have been used for several months.

As noted above, a tune-up generally involves replacing several parts. Some of them may seem relatively minor, but neglecting to replace them regularly can reduce your vehicle’s performance and do long-term damage.

For information about PRUDENT VALUE CARS, visit our web site: www.prudentvaluecars.com

Driving Safely at Night

If you’re going to be on the road after sunset, keep in mind that driving at night presents unique challenges that are absent during the day. The field of vision in a person’s eye is much smaller and depth perception less reliable without the benefit of natural light. Drivers also lack the benefit of color and contrast that are available in daylight.

Traffic death rates are three times as high at night as they are during the day, despite there being less traffic at night. One major factor is eye fatigue, which is a serious issue when driving at night. To prevent, or relieve, this problem, keep your eyes moving from side to side, and focusing from near to far ahead.
Here are some additional tips to help with night vision and road safety.

● Adjust to the darkness

Give your eyes some time to adapt to the dark before you begin driving. It takes a few minutes for the pupils to dilate fully, allowing the maximum amount of light to enter your eyes. The more light that your pupils let into your eyes, the stronger your vision will be.

● Avoid glare

Don’t look at oncoming headlights; instead, look toward the right side of the road and keep watching the white line marking the outside edge of the traffic lane. When the headlights from cars that are behind you reflect in your rearview mirror, adjust the mirror to eliminate as much of the light as possible.

● Use your lights courteously

Turn your headlights on an hour before sunset so that it will be easier for other drivers to see you in early twilight. Also, keep those headlights on for at least an hour after the sun comes up. Don’t flash your high beams at a car that has its high beams on, as this will result in both drivers blinding each other. In fog, use your low beams.

● Keep the car interior dark.

Turn off all the lights in your car’s interior. Any light inside the car will seem extremely bright and will make it harder to see.

● Slow your driving speed.
Reduce your driving speed in order to give yourself a longer reaction time if something unexpected occurs in front of you. It is advisable to increase following distance by four to five seconds while driving at night, in case you or the car in front of you must make a sudden stop.

● Tune up your car
Be sure to keep your car in top shape for maximum safety. This means regularly checking fluid levels, tire pressure and brakes. It also means thoroughly cleaning headlights, taillights and signal lights. And it means making sure all the windows are clean both inside and outside. (Dirty windows can increase glare, making it harder to see, and dirty headlights can lower efficiency by as much as 90 percent.)

● Wear anti-reflective glasses
Many eye care specialists recommend eye glasses that have anti-reflective (AR) coating. The ultra-thin film reduces internal reflections in the lenses. AR-coated glasses transmit more light than regular lenses, which improves vision at night.

Driving at night is never going to be as easy as driving during the day, but with appropriate adjustments, you can set your sight on a safe arrival at your destination.
For information about PRUDENT VALUE CARS, visit our web site: www.prudentvaluecars.com

Hybrid Vehicles: Good for the Pocketbook?

The rising price at the gas pump is prompting more and more Ontarians to consider making a hybrid their next vehicle purchase. For sure, there is plenty of emphasis on how much hybrid vehicles can save you in gas costs because of their fuel efficiency.

A hybrid basically operates on the combination of a conventional engine and a battery-powered electric motor. The battery-run electric motor relieves the engine of some of the workload. The result is a vehicle that performs like a traditional car with a smaller, more efficient engine. The hybrid car with the reputation for the most fuel economy is the Toyota Prius, which averages about 5.1 L/100km

But unless you’re motivated purely by environmental concern, fuel efficiency should not be the only consideration. Let’s look at the other costs or savings that apply to a hybrid.

Purchase price

While fuel efficiency is certainly a strong selling point for hybrids these days, that has to be weighed against the purchase price. The hybrid is a more expensive vehicle than its conventionally-powered counterpart. Even the least expensive hybrids start at $27,000 (for a Toyota Camry Hybrid or Honda Civic Hybrid). It will require a number of years for a hybrid buyer to recover their upfront costs.

As part of its goal of one in every 20 vehicles on the road being a hybrid by 2020, the Ontario government has been offering since 2010 an incentive program for consumers buying a plug-in hybrid electric or battery-fueled car. The incentive applies only to new cars.

Auto insurance

When comparing online quotes at the website Kanetix.ca for the Honda Civic Hybrid, Toyota Camry Hybrid and Ford Escape Hybrid, it turns out there is no discernible trend in the insurance rates for hybrids. When compared to their gas-guzzling counterparts, hybrid vehicles are not consistently more or less expensive to insure.

However, some Canadian insurers do offer a discount for hybrid owners. The availability of this discount indicates that at least some insurers favour hybrid motorists as a low-risk group.

Maintenance

Hybrids are perceived to be high-maintenance vehicles. In fact, this may or may not be so. Regular preventative maintenance costs for hybrids are comparable to those for gas-powered cars. If, however, a hybrid has mechanical problems with the charging system, this could be costly.

To counter the maintenance cost concern, some hybrid manufacturers offer warranties on their hybrid models that extend beyond the basic coverage. Toyota, for example, offers a 160,000 km warranty on their Prius and Highlander hybrid-related components.

In considering the cost implications of a hybrid with those of a conventional car, be sure to compare applies with apples. If you purchase an SUV-sized vehicle, no matter how fuel efficient it may be, it won’t match most of the conventional gasoline-powered sedans, simply due to their size, and the size of the engines.

For information about PRUDENT VALUE CARS, visit our web site: www.prudentvaluecars.ca