Steve Moskos' Blog

How the Pandemic is Affecting the Number of Cars being Manufactured

9/28/2020

For nearly two months, car production plants around the country were closed due to the pandemic and the need for social distancing. There have also been supply interruptions for parts that are manufactured in China. Starting in mid-July, auto manufacturers were producing again, but some are still running at a reduced production rate due to restrictions.

Most automotive manufacturers cannot produce new cars like they used to. With social distancing restrictions, many have had to lower the number of employees that are in the plant at the same time, and they simply can’t keep up with normal production with a reduced work force.
Even with car manufacturers producing again, it is possible that another outbreak of the COVID-19 virus could disrupt production again. A single supplier of needed parts that has to shut down could cause widespread disruption in production across the country. Also, many automakers stopped producing vehicles and made essential medical equipment, such as ventilators, respirators, and face shields. Some manufacturers are still making the medical equipment instead of vehicles. When the medical equipment is no longer needed, it will take time to get the plants ready to produce cars again.

Supply issues have also been an issue to getting car production back up to full speed. Manufacturers no longer stockpile needed components for their vehicles so they simply don’t have everything they need to start building cars again. They have to wait until parts are shipped, often from out of the country. With concerns about receiving parts from China still very high, many parts are sitting in warehouses until they are deemed “safe” for employees to handle.

Chevrolet, Ford, and Lincoln all canceled or postponed the delivery of new models. Even when production is back up to normal, design and testing facilities are still minimally staffed so it may take several months for new models of cars to be available to the public.

How Can I Make Sure a Used Car has been Properly Disinfected before I Test Drive It?

9/21/2020

When the corona pandemic began, many companies sent letters or emails to their customers that shared what they were doing to keep their employees and customers safe. Often, these procedures are posted on the doors as you enter a business. If you visit a dealership that has not posted their guidelines, feel free to ask what they are and be ready to visit another dealership if you aren’t comfortable with what you are told.

Every dealership has a different idea of what sanitizing a car means. For one, it may mean that the driver’s side interior has been wiped with disinfecting cloths, while another will completely sanitize the interior of the vehicle. Some dealerships insist their mechanics sanitize under the hood after they finish working on a car, while others do nothing for the engine.

The reality is, unless you actually see someone disinfect the car, you can’t be sure it has been done. For that reason, it is perfectly fine for you to ask that the vehicle be cleaned while you watch. If a dealership won’t accommodate you, then go somewhere else.

For some customers, the threat of COVID-19 is so worrisome that they take their own sanitizing wipes and clean the car themselves before they test drive it. They can be sure any area that they may touch has been cleaned to their satisfaction and they feel safer when they test drive a car. If you are looking at a car being sold outside a dealership, you should definitely clean the car yourself as a private citizen has no guidelines that they have to follow when selling a car.

When the sales person disinfects the car, make sure they wipe all of the buttons and knobs on the car, the steering wheel, gear shift and mirrors. Before you take the key or key fob from them, ask for it to be disinfected, too. Remember to wipe the door handles, seat belts, and seat adjustment buttons. For your safety, either wash your hands or use hand sanitizer before and after your test drive and keep your hands away from your face while in the car.

How is the Coronavirus Affecting Car Loan Interest Rates?

9/14/2020

In March, the Federal Reserve made several moves to reduce interest rates and help support the economy. While this should help keep your car loan interest rate down, you should be aware that interest rates are slowly going back up. However, many car manufacturers are offering huge incentives to lure consumers back to car shopping.

No interest loans, if financed through their corporation, are plentiful right now on new cars. Manufacturers are even offering longer loan periods and offering options to not make your first payment for several months. Most often, these incentives are only available to those with excellent credit and who are looking to purchase a new vehicle.

If you are looking to purchase a used vehicle, or your credit is less than perfect, the best way to get lower interest on your loan is to shop around different financial institutions. Changes in interest rates are happening daily and to find the best rate for you, you will have to put in time and effort to compare several financial institutions. Remember, you will likely have to do most of your shopping on the phone as many places are still closed or only open for limited hours.

Different financial institutions lower their rates at different times so a few phone calls could save you thousands in interest on your loan. Because the economy is still shaky, some banks don’t want to take on any loans that may be a risk to them, so they are pricing their interest rates very high to drive people to seek other options. Other lenders are making their interest rates very low to offer as many loans as they can.

This is why you need to carefully compare several places. Your credit score will drastically affect what interest rate you are offered. Once you have a pre-approved amount, take it to the dealership and see if they will offer any incentives to convince you to get your loan through them.

Most experts agree that there is no way to know exactly what will happen to interest rates in the next several months. Many factors are unknown. Right now, interest rates are still low, but slowly rising, so if your job is secure, it may be a good time to search for a new vehicle.

Does the Lemon Law Cover Business Vehicles?

8/15/2020

When your business depends on reliable transportation, mechanical issues with your vehicles can cause a loss of income or even customers. When it’s a new vehicle that is not running properly, your frustration can be even worse.

The lemon law states that a vehicle that does not operate correctly and the manufacturer (or an authorized agent of that manufacturer) cannot repair the vehicle within a certain amount of time, you are entitled to a replacement or a refund.

In South Carolina, only vehicles that are designed to transport ten or fewer people are covered. The law also covers trucks that weigh less than 9,000 pounds when they are empty. This law pertains only to new vehicles, not used or previously leased vehicles.

To be considered a lemon, the problems must show up within the the warranty period. The mechanical problem must substantially affect the vehicle’s market value, safety, or use, and it cannot be repaired within a reasonable amount of time. Under South Carolina law, a reasonable amount of time is considered to be when the vehicle is out of service by reason of repair for thirty or more days or three attempts to repair the same problem.

Business vehicles are not covered by the Lemon Law. But what is a business vehicle? Obviously, a tractor trailer rig or a piece of farm equipment are business vehicles and not covered. On the other hand, a vehicle can be owned by a business but still be covered by the Lemon Law. The issue comes down to whether the motor vehicle is normally used for personal, family, or household purposes and subject to the manufacturer's express warranty.

As the business owner, you also need to be very careful about how your vehicles are driven. If the mechanical problem is caused by abuse or neglect of maintenance guidelines, your lemon law rights may be affected. Also, if you plan to alter your car in any way, such as adding a trailer hitch or roof racks, you should have an authorized dealer install the items. If the alterations are not approved or installed by the dealer, the manufacturer can claim those alterations caused the mechanical problems, and you will have a harder time proving your car is a lemon.

Just remember, the more you use the vehicle in your business, the more ammunition you give the manufacturer’s lawyer to claim that the vehicle does not qualify under the lemon law.
If you have problems with a vehicle, start documenting everything that is done to repair it from the very first trip to an authorized mechanic. Keep all paperwork and notes of any discussions you may have with the dealership. You will need to notify the manufacturer of the problems within the time frame, and be sure to have copies of any documents you send to anyone. You should also document lost wages for when you were unable to use your vehicle for your business.

After three attempts to repair the vehicle, it may be in your best interest to hire an attorney who has experience with the lemon laws of your state. Your lawyer can advise you of the next steps you need to take to receive a refund or a replacement on your vehicle.

Did you Buy a New Ford and then Lose your Job?

7/20/2020

Recently, the Ford Motor Company launched a new program called the Ford Promise program. It is intended to help those people who purchased their new vehicle and then lost their job due to the coronavirus and the downturn of the nation’s economy. It is also intended to reassure people who are considering the purchase of a new vehicle.

Anyone who purchased or leased a vehicle and financed it through Ford can now return their vehicle within the first year they own it if they lose their job. The return must be made within thirty days of losing their income. The program only covers personal vehicles not commercial or business ones.

Vehicles with model years 2019, 2020 and 2021 are eligible, and the vehicle can be used, new, or certified pre-owned. This program is good for vehicles that are purchased through September 30, 2020.

A value will be assigned to your vehicle using the National Automobile Dealers Association average trade-in value. The amount you owe will be reduced by that amount, and Ford will waive up to another $15,000 of your loan. If you owe more than that on your vehicle, you will be responsible for the rest of the loan.

You are also responsible for any late or deferred payments, and if there is any damage to the vehicle, you must pay for that. Once all of the conditions of the program are met, the account is marked as closed and paid so no one needs to worry about a negative report in their credit report.

The company states the program is to assure anyone considering a vehicle purchase but who is worried about the uncertain economy and possible job loss, that there is help available if they do lose their job.

“We feel like right now, the economy is at the stage of recovery where people want things to be back to normal, they want to buy, but they’re still a little nervous about what the future holds,” says Mark LaNeve, vice president, U.S. marketing, sales and service. “We want them to know we understand that, and we’re here to support them in their buying decisions.” (media.ford.com)

Do I Need a Lawyer if my Car is a Lemon?

6/28/2020

Anyone can end up with a new car that has constant problems. A new car like this is known as a “lemon” car, and there are laws to protect consumers who may purchase one. If you have one, you may be angry and not sure what to do first. If contacting the dealer where you purchased the vehicle does not bring you the results you need, you should contact an attorney who specializes in the “lemon laws” of your state.

why you Need an Attorney

Just like other professions, attorneys often specialize in certain areas of the law. When you begin your search, make sure you ask the lawyer how much experience they have with lemon laws. If they don’t have much experience, you would be better off to search for another lawyer. The laws can be confusing, and you need someone who is familiar with the law in your area to guide you through the process of getting your vehicle repaired or replaced.

To be considered a lemon, a new vehicle must have a defect that is covered by the manufacturer’s warranty that became known during a certain time frame or number of miles you have driven. Every state has different lemon laws and different timelines which is why it’s important to contact an attorney as soon as possible after you start having problems with your new car as they are best able to guide you in the process.

If you are unlucky enough to purchase a new vehicle from a dealership that cannot repair your vehicle, an attorney can contact the dealer or manufacturer on your behalf. Sometimes, a letter from an attorney is enough to force the dealer or manufacturer to discuss options with you, but this isn’t always the case.

Most manufacturers require you to go through non-binding arbitration first. You and your attorney will have the opportunity to present your proof of attempted repairs and the time you were without your new car. Once the arbitration board has heard your case, the manufacturer may make an offer. You and your attorney can discuss whether to accept or decline the offer.
If you decide the offer is not satisfactory to you, your attorney can file a law suit against the manufacturer of your vehicle. Your attorney can offer more of the evidence you have collected in court. Always be sure to keep careful records of repairs that were completed on your vehicle and any discussions you have had with the dealer you purchased the car from. All of this will be important in helping your lemon law attorney in building a strong case for your law suit.

While it may seem like this is a simple process that you can handle on your own, the complexity of lemon laws are very confusing to someone who isn’t experienced with the law. You may miss an important detail or deadline that will prevent your car from being declared a lemon and repaired or replaced. It would be best to let an experienced lemon law attorney handle the process for you so you get the best outcome for your situation.

Is it Better to Trade my Car to a Dealership or Sell it on my Own?

5/18/2020

When it’s time for a new vehicle, it can be a tough choice deciding whether to trade your car in on the new one or try to sell it on your own. The choice really comes down to whether you are willing to put forth the effort in selling it on your own or if you need the trade in for your down payment.

Pros and Cons to Selling your Car on your Own

If you are willing to spend a little time and effort, selling your car on your own can offer some big benefits, but many people don’t want to deal with it.

Most of the time, selling your car on your own will get you more money for your vehicle. Dealerships will often not offer much more than wholesale value for your vehicle, but selling it yourself lets you put the price on it.
It may be easier to negotiate with your potential buyers as they probably don’t have the experience at haggling like a car sales person would. You may be able to keep the price closer to what you want.
It does take a lot of time to sell your car. You need to get it ready to sell, advertise, deal with strangers, and give test drives.
If you are counting on the money for your old car to make the down payment on the new, you may not be able to get your new car as soon as you would like. Or, if you still owe on the old car, you may have to make two vehicle payments a month until you do sell it.
The longer you try to sell it, the harder it may be. If you don’t trade it in, you may be stuck with taking much less than you wanted if you can’t afford to make two payments a month.
You will have to pay more sales tax on the new car, but if you make enough on the old one, you may still come out ahead.

Pros and Cons to Trading your Car to a Dealership

Many people think that trading their car to the dealership is the best way to get rid of an old car. There are many advantages to doing that, but one big disadvantage.

The biggest reason to not trade your vehicle is the price. Dealerships will simply not give you as much for your car as if you sold it yourself. They need to think of resale value and will want to make money on your old car when they resell it to someone else.
A huge advantage to trading in your car is how simple it is. You just drop it off at the dealer and from then on, it is their problem. You don’t have to advertise it and try to find someone willing to pay your price.
The amount the dealership gives you can be used as part, if not all, of your down payment for the new vehicle.
You will have to negotiate with very experienced sales people over the price.
Many states only charge sales tax on the difference between your trade-ins value and the price of the new car so you may save some money in taxes.

Making the decision of whether to trade in your old vehicle or sell can be difficult. If you don’t have the time to deal with advertising and with people looking at your car, trading it in may be the better option. However, you may get more money for it if you sell it yourself. The choice becomes whether you have the time and need the extra money or whether you just want the car gone.

How to Disinfect Vehicles to Prevent the Spread of COVID – 19

5/11/2020

While many people are thoroughly disinfecting their homes to prevent the spread of COVID-19, disinfecting their cars may never cross their minds. Even if you are extremely careful in stores and wash your hands as soon as you get home, you may transmit the virus to your car between stores and home. Follow these steps to be sure your car is germ-free.

If someone who is positive for COVID-19 has been in the vehicle, leave the car alone for at least 24 hours, if possible, before starting to disinfect it. Limiting the number of people you transport in your car to members of your household will help prevent the potential spread of the virus.

To disinfect your vehicle, choose any disposable wipes that are sanitizing. Please note that baby wipes will not kill the virus. The first time you disinfect your vehicle, be sure to thoroughly wipe all of the following areas of your car. Once you have cleaned it the first time, use wipes to disinfect any areas you touch every day.

Clean the following areas:

Seat belt buttons and adjustors
Buttons that control mirrors, lights, door locks, sunroof, and windows
Gas cap and fuel lid
Interior and exterior door handles
All radio controls (buttons and touch screens – including Bluetooth devices)
Steering wheel and all control buttons on it
Turn signals, windshield wipers, fog lights, and four-way flashers
Gear shift
Trunk, hood, and gas cap release knobs
Exterior hood release
Exterior trunk handle
Power seat switches
Arm rests on all doors (both window and interior rests)
Ignition switch and keys (or fob)
HVAC controls and vents
Center console
Cup holders
Sun glasses and case
Leather seats
Glove box button and handle (It would be a good idea to wipe the entire box down.)
Side and rear view mirrors
Garage door openers
Any chargers you may leave in your vehicle (do not wipe the ends – only the wires themselves)

As a precaution, put sanitizing wipes in your car so you can easily wipe down surfaces you touch often. Get in the habit of doing that as soon as you get home every day or between stops if you are running several errands at a time.

In addition, while car dealerships have strict orders in place on disinfecting your vehicle when you take it in for repairs – both before they work on it and after, it is still a good idea to disinfect your car as soon as possible after it has been serviced or repaired.

Keeping your vehicle clean is an important part of stopping the spread of COVID-19, and it only takes a few minutes each time you use your car.

message for prospective clients during covid-19

4/16/2020

The current situation has placed a great burden on many people. We are trying to accommodate everyone as quickly as we can. The best and fastest way to contact us is through this website on our contact page. We will be in touch with you as soon as possible.

Please know that we are making efforts to meet virtually with clients so we may continue to serve you in a timely manner. As with any new process, there are hiccups.

We thank you in advance for your patience. Please stay safe and healthy.

What Fees Can I Expect When I Purchase a New Car?

4/7/2020

Many people know that car dealerships are very good at adding fees to the cost of your new vehicle. These little additions can add up quickly so always question the list of fees you are given when negotiating the price for your new car. You might be able to negotiate a lower fee at times, but be sure to ask about total fees before agreeing to the cost of your car. You don’t want to get a nasty surprise when you look at the finance paperwork and see a much higher price than you agreed on.

Be aware that some fees are regulated by state and local agencies, and you will have no choice except to pay. The most common fees you may be asked to pay usually fall into one of three categories – sales tax, registration fees, and documentation fee. These are usually non-negotiable.

Sales Tax

Sales tax is required on every vehicle purchase and is non-negotiable. The dealer does not set the amount of tax – that is state regulated and must be paid. Make sure to ask whether the sales tax will be included in the amount you finance or if you will be required to pay it when you register your new car. If you can afford it, it is better to pay cash for your sales tax as it will reduce the amount you have to finance and save you interest.

Vehicle Registration Fees

Often, a dealership will register your vehicle for you to save you a trip to the Department of Motor Vehicles. Again, this is a state regulated fee, and the dealer has no control over the amount. This fee covers the registration and title fees for your new car. It will vary, depending on the car you choose – the more expensive your car is, the higher the fees will be.

Documentation Fees

Documentation fees are supposedly meant to cover the cost of the office personnel needed to do the paperwork after you purchase a new car. When examined, this fee looks more like additional profit to the dealer as the dealer is paying an hourly employee to handle several transactions per hour. These fees vary from dealer to dealer. Some states put a limit on how much they can be. Most documentation fees are between $50 - $500. South Carolina does not have a limit on this fee, and documentation fees average around $350 here. Always ask about this fee before you sign any papers as many dealers will not mention the amount until you have signed a contract. You can try to negotiate this fee with the dealer, but expect a fair amount of push back.

Other Fees

Most dealers also charge a small fee based on environmental laws in their area. They will also charge regional advertising fees. All dealers are required to join in regional advertising for dealers in their area. Manufacturers insist on this to help pay for expensive ads that run nationally but point you to your local dealer. Make sure the dealer is not charging for their own advertising. If you aren’t sure, call another dealer in your area and ask them about their regional advertising fees and compare the two amounts.

The reality is every new car purchase will be saddled with fees. You may not be able to negotiate lower fees for certain things, but it never hurts to ask. A dealer may want to move merchandise and be willing to reduce some fees.

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