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 

Saving on Car Insurance and Getting the Lowest Rate

Everyone wants to save money, and a great deal is always a welcome sight for anyone. There are plenty of areas of your life where you can cut costs and save yourself some cash, but one you may be overlooking is your auto insurance. Since all car loans will require you to carry car insurance of some form, there's no real way to completely dodge the bill. Saving on car insurance is a great way to put some extra money in your bank account. It's also easier than most people realize. While some ways to cut your car insurance bill may not be feasible for you, others could very well lower your rates drastically.

The most important rule for saving on car insurance is simply to shop around.

• A number of people are probably paying too much for car insurance but don't bother changing it because they don't feel like dealing with the hassle.
• But when you consider that some studies estimate that rates can vary by up to five hundred dollars for six months' worth of coverage, taking the time to get a few quotes suddenly seems like a worthy endeavor.
• Get at least three quotes, but get even more if you can. It's the best way to know if you're paying too much.

You should also take the time to inquire about discounts on car insurance.

• Some companies may tell you about them immediately, while others may hold back on explaining them. You can get discounts for combining insurance, for taking defensive driving courses, and even for being a loyal customer.
• You can also get a lower rate by dropping coverage. In some cases, the bare minimum coverage required by law can be hundreds of dollars cheaper, although it will leave you at a higher financial risk during an accident.

Even your credit score can have an effect on your car insurance price. Poor credit could cause you to pay up to thirty to forty percent more for car insurance than someone with good credit, another reason rebuilding bad credit is important. Finally, consider raising your deductible. Like lower coverage, it will leave you at a higher financial risk but can lower your monthly payments tremendously. Saving money on car insurance can help you put groceries on the table and put extra cash in the bank. These tips will make it easier for you to lower your insurance payments while still keeping you covered. For more valuable information, visit www.prudentvaluecars.com

Traffic Violations and Insurance Rates

Traffic violations in Ontario can be major, minor or criminal offences.  The severity of the infraction can make a significant difference in how your insurance rates are affected, as well as in the legal consequences.  Minor offences are the less serious ones and usually result in a fine. Major offences can be much more serious, resulting in heavy fines, license suspensions and possible jail sentences.

Minor violations

Minor violations are the most frequent kind of traffic offences, and have less impact both legally and on the driver’s insurance rates.  They are chargeable on your insurance for three years from the date you are convicted (not from the date you are ticketed), and some carry a sizeable fine, too.

The most frequent minor infractions are speeding—though when exceeding the speed limit by over 50 kph, it becomes major--running red lights or stop signs, failure to obey traffic signs, and tailgating.  Others include improper turning, improper passing, obstruction of traffic, unnecessarily slow driving and driving with your view obstructed.

Minor offences differ in their impact on your insurance premiums. Not all will result in a rate hike, but that varies from insurer to insurer. It’s useful to contact your insurance agent after you’ve been ticketed to find out what to expect on your premiums. But if you are hit with an increase, it won’t take effect until you renew your coverage.

Parking violations and driving with a broken taillight are minor offences that are unlikely to affect insurance rates, as they are not usually regarded as moving violations and therefore do not concern the insurer.

Major violations

Major violations are considered to be more serious, as they are more likely to result in an injury to another driver or a pedestrian.  They include speeding (when driving above 50 km/h), speeding in a school zone, passing a school bus, failing to report an accident and driving without auto insurance coverage.

Insurers take a dim view of major violations.  They show that a driver is a higher claims risk and should, accordingly, pay higher premiums.  A major offence remains on a driver’s record just as long--three years--as a minor one when it comes to insurance premiums.   However, the premium rise is generally higher in the case of a major violation.

Major offences also have more severe legal repercussions. The offender could be hit with heavier fines and in some cases may even face a possible jail sentence.  Offences that carry a criminal record include driving with a blood alcohol level over .08, careless driving, criminal negligence, dangerous driving, driving with a suspended license, racing and motor manslaughter.  

For these types of convictions, the Facility Association of Ontario, which provides coverage to drivers who can’t qualify in the voluntary insurance market, will increase premiums by 100%.

Avoiding rate hikes

Keep in mind that being cited for more than one violation is a sure way to have your auto insurance rates rise.  Two minor violations can be more damaging than one major violation.  Statistically, if you have received a speeding ticket, there is a 20% chance that you will receive another ticket within the three year period. If you’re hit with three speeding tickets, you will be charged "high risk insurance rates" of thousands of dollars per year, for at least three years.  So it’s best to learn from the error and not repeat it.

To check which offences are considered major, minor and criminal, consult http://www.insurancehotline.com/driving-convictions-list/.

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

How to Make Your Car Last Longer

Most cars are built to last much longer than most car owners believe.  According to auto experts, the average vehicle’s useful life is ten years (or 300,000 kilometers). By providing proper preventative maintenance, however, a car owner can often double a car's useful life and spend less time taking it to the mechanic for repairs. Here are some tips on how to keep your car in good condition as it ages.

Regular maintenance

Research by the major auto manufacturers shows that the failure to provide routine service and maintenance is the number one reason for major car repair bills. While the owner’s manual will have a maintenance schedule, you can make sure you stick to that schedule by using the same mechanics each time.

Keeping your vehicle covered contributes to its life span. A garaged car last longest, a carport is second best, and a car cover is third. If you’re unable to garage, carport, or cover your car, at least park under trees or other covering to shield it from the sun’s rays.

Take time to regularly inspect your car by spending five minutes walking around and looking at it.  In that time, you can check to see if the tires are wearing unevenly, open the hood and check the hoses, and make sure all the lights are working.

Fluids and filters

Regular oil changes are the most important measure that you can take in order to protect the car’s engine and make it last longer. But other fluids and filters also require regular maintenance. For instance, changing the air filter will enable the car to breathe easier and the engine to last longer. When the air filter is clogged, the engine doesn’t run properly.  It also hurts the car’s fuel efficiency. 

Driving smart

The way that you operate your car impacts how long your car will last. Taking off in burst of speed and coming to a stop suddenly are hard on a car’s engine and brakes. So stop and accelerate gradually. This will save gas in addition to avoiding wear and tear on the brake linings, transmission, and suspension.

Avoid running the car with a tank that is low on gas and with tires that are low on pressure. A gas tank that is only one-quarter full   increases the possibility of dirt, water and moisture getting into the fuel system.  Tires tend to be the most neglected part of a car. When they’re not properly inflated, it’s not only bad for the car, the tires and fuel efficiency, but it’s also a safety problem.

Take care of the exterior of your car by regularly washing and waxing it. Look after the interior as well, keeping it clean by vacuuming the carpet regularly and getting rid of spills before they become difficult to remove.

Follow the above tips and your car will run gracefully into old age.

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