Category: Buying A Car

5 Tips to Choose a Cheaper Car to Insure

4/18/2021

Expenses with a new car can add up quickly. Car insurance is one thing that everyone has to have, but there are ways to cut the costs which are based on three things – your personal demographics (gender, age, driving history), where you live, and what type of car you purchase.
Check out our tips below to find a vehicle that will be less expensive to insure.

Check the Safety Ratings of the Vehicle
To really save on car insurance, it’s best to purchase a car that has a high safety rating. Vehicles that have more safety features are more likely to qualify for lower premiums and discounts. Be sure to look for recalls on any vehicle you are considering, as some insurance companies won’t insure cars that have recalls on them.

Safety ratings for cars are easy to find. Five stars is the highest safety rating, and one is the lowest. Remember that insurance companies also consider how much damage your vehicle could cause to another car which could increase your liability premium.

Avoid Sports Cars
Any car that has a high performance engine and other speed features are higher to insure. Insurance companies consider you to be more of a risk on the road, as drivers with sportier cars tend to drive faster and be in more accidents. Also, sports cars cost more to replace and repair.

Avoid Luxury Vehicles
Expensive luxury vehicles always have higher insurance costs. The very high repair and replacement costs can increase your insurance premiums significantly. Models such as Rolls Royce, BMW, and Mercedes-Benz have the highest collision and comprehensive insurance losses.

Be Aware of Popular Models among Thieves
How likely it is that your vehicle could be stolen is also plays a role in what you will pay for insurance. Certain vehicles are more popular among thieves. In 2019, the five most stolen vehicles were the Honda Civic, full-size Chevy trucks, full-size Ford trucks, the Honda Accord, and the Toyota Camry.

Compare Insurance Rates before you Buy
Once you have narrowed down the list of cars you like, contact your insurance company and get insurance quotes on each of them. Insurance costs can vary by a few hundred dollars a year depending on the vehicle you purchase. Always shop for insurance the same way you shop for your new car.

While researching your next car to buy might be time-consuming, you could save a lot of money in premiums each year.

Three Vehicles Consumers May Want to Avoid

3/29/2021

Purchasing a new vehicle is an exciting time, but it can also be very nerve wracking. No one wants to spend a large amount of money on a car that may be unreliable. Consumer Reports magazine has a long history of sharing opinions on vehicles. They recently released their ratings for 2021 vehicles. The following three vehicles had low ratings.

2021 Volkswagen Atlas

There are many mixed feelings about the Volkswagen Atlas. People who have purchased one have reported problems with the climate system, engine minor, exhaust system and the emissions system. Volkswagen’s usual warranty is four years/50,000 miles but because of the known issues, many who purchase it also purchase the extended warranty to have protection for 150,000 miles or up to ten years.

The Atlas does have a huge cabin space and an exterior that is very stylish. However, the concerns with reliability are keeping many buyers wary of purchasing one. Consumers who are looking for this size of vehicle are choosing a Kia Telluride, Mazda CX – 9 or a Hyundai Palisade instead.

2021 Chevy Silverado 1500

The Chevy Silverado and the GMC Sierra both scored the lowest possible score on the Consumer Reports rating scale. Both models have had reported problems with in-car electronics, both major and minor issues with the transmission and engine, brakes and the drive system. Consumers looking for a new truck may want to check out the Ram 1500 or a Toyota Tundra. Both of these trucks have high reliability ratings.

2021 Subaru Ascent

The Subaru Ascent has widely different ratings. It is considered the safest mid-size sports utility vehicle and is a very comfortable on both trails and paved roads. However, the reliability issues worry many potential buyers.

Transmissions problems, in-car electronic issues, problems with the climate system, steering and suspension have all been reported by consumers. For those wanting a SUV of this size, a Toyota 4Runner or the Subaru Outback might be a better choice.
The ratings these models received are based on information gathered by Consumer Reports from people who have purchased the vehicles. These are not personal opinions.

If you are having a problem with any of these vehicles, give us a call at 843-763-5297 or fill out the form on our contact page.

Should you Purchase a Car Online?

3/22/2021

Because of the pandemic, many purchases are being made online now, including vehicles. For many people, buying a car online is a better choice as they dislike negotiating with sales people. For others, the thrill of the hunt is better in person.
Before you decide to purchase your vehicle online, make sure you understand the dealer’s guidelines for purchases made over the internet and consider each of the following as you decide how to buy your next car.

Pros to Purchasing a Vehicle Online

The biggest reason many people are choosing to buy a vehicle online is convenience. It is simple to check a dealer’s stock when you have time and you don’t have to visit several dealerships to see what is available. Most dealers offer drop off options.
Shopping online also allows you to shop after hours.

If you are looking at dealer websites, you have a much larger variety. With online shopping, you can search a much wider area.

If you don’t like negotiating, online purchasing might be the best option for you. Most vehicles online have fixed prices and if you do try to negotiate, it is all done over the internet. You can also compare prices among dealers so you can make the best choice.

Cons to Consider Before Purchasing Vehicle Online

The risk of online scams is enough to keep some people from considering a purchase over the internet. If you do want to shop online, make sure you are looking at the website of a reliable dealership. Look for buying protection and avoid peer to peer payment services.
Dealers may not negotiate prices. If you love to get the perfect deal, you may not have that option shopping online.

If you want to finance your purchase through the dealer, your options may be limited, especially if your credit is not that great.

Test drives may not be available. If you are shopping online for safety from COVID, having to go to the dealership for a test drive might be a deal breaker for you. Some dealers are now offering to drop off vehicles at your home so you can test drive safely. Check the dealer’s website for their policy on test drives.

Only you can decide if shopping for a vehicle online is the best choice for you. Consider the dealers’ guidelines and prices, whether you definitely want to test drive vehicles and your own safety in making your decision. Also, remember that even if you purchase a vehicle online, you will need to visit the dealership or the lender’s office for paperwork.

If you are having a problem with you purchase, give us a call at 843-763-5297 or go to our website and fill out our contact page.

What do I Need to do if My Lease is Expiring during the Pandemic?

12/7/2020

With all of the uncertainty in the world during the pandemic, dealing with your car lease expiring may seem like a giant obstacle in your life, but most dealerships are offering several options for your expiring lease. Car dealerships have taken a huge hit during the corona crisis and are doing whatever they can to keep repeat customers happy.

With so many people being laid off from their jobs, they may be struggling to make their payments each month. Some financial companies are offering payment deferrals to help their customers. If you are in this position, contact your leasing company as soon as you realize you may have trouble with your payments. Do not wait until you have a late payment or have missed one. Companies are often more likely to offer deals to people who ask before they miss payments.

If you want to return your leased vehicle when your lease expires, you may be able to do that, even with many dealerships closed. Call your dealership and let them know you want to return the car. Many automakers are making this as easy as possible and are offering ways to complete the return online. They may even offer home pickup of your car so you don’t have to go to the dealership at all. If the dealership is closed, you may be able to return the car to their service department as those are considered essential.

Before you return your car, spend time researching your next car and looking for the best lease deals. Contact dealers directly as you may get a better offer on the phone than you can get on their website. Ask if the dealer can deliver the vehicle to your home and if the necessary paperwork can be completed online.

You may also have the option of extending your lease. Again, contact your dealer and explain that you would like to extend your lease but aren’t comfortable going to the dealership. Many companies are offering online lease extensions so you won’t have to leave your home. If you do decide to extend your lease, make sure to discuss the mileage cap. Will it be increased, or do you have to stick to the original limit?

With some research and a few phone calls, handling an expiring lease during the pandemic shouldn’t be a big issue for you.

How COVID – 19 has Changed the Car Buying Market

11/30/2020

Although many businesses and industries suffered greatly when COVID-19 hit, the mobility and the automotive industries were part of the hardest hit. Even though many businesses have reopened, consumers are still suffering from financial and health concerns and a worry about the future.

There have been significant improvements in the automotive industries financial outlook in the last few months. Across the country, car purchases are still 14% below averages before COVID, but that shows a four point percentage improvement since earlier this spring.

Purchase intent is increasing across the country, especially in homes with higher incomes. The numbers are still below pre-COVID, but show increases from last spring and summer. Many consumers are planning to spend less on their new or used car than before and are taking advantage of discounts offered by dealerships and automakers.

A big factor consumers are looking for is the ability to conduct all of the purchase online or with very little contact at the dealership. Many dealers are offering test drives with no sales person in the car and may even bring the vehicle to your home for you to drive. Some consumers are willing to pay extra for this service if it isn’t offered at their dealership.

People are also traveling less and while they are likely to return to pre-COVID habits, it is believed that walking and biking as much as possible will become more popular. Many consumers are still concerned about public transportation and are choosing to commute and travel by private vehicle rather than by plane or bus. Younger consumers want constant access to a private vehicle and this will likely drive car sales higher when people feel more financially secure.

Tips from People Who’ve Bought Cars during the Pandemic

11/16/2020

Buying a car during the COVID-19 pandemic will most likely be unlike any other time you have purchased a vehicle. Dealerships may not be open, or if they are, they are open for shorter periods of time with fewer sales people. Their inventory of used cars may be smaller, as fewer people are trading in cars right now. Check out these videos of people just like you who found cars during COVID – 19.

Buying a car during the pandemic could be a great deal. “Be prepared for surprises and don’t get discouraged!”

How to buy a car in a pandemic. “Make a plan before you need to buy a car.”

What I learned buying a car in a pandemic “Don’t be afraid to speak about safety concerns. Expect the sales process to take longer than usual because dealerships are often using only a skeleton staff.”

Buying a car during the pandemic: what to expect “Test drives look a lot different. Here are tips to stay safe while looking at a new vehicle.”

Pros and Cons of Car Buying during Covid- 19 Pandemic “Try to buy something in stock as custom orders could take several months.”

When you are ready to purchase a new vehicle, do your research on what incentives may be available and how other people handled buying a car during the pandemic.

Assignment of a contract

11/9/2020

Most people think that when they can’t afford to pay cash for a car, a financing institution, like a bank or credit union, gives them a loan to buy the car. If you go to the bank and you are given a check, you would be right. When financing occurs at the dealership, the dealership is actually extending you credit so you can buy the car over time. It is sort of like layaway at a department store. Outside your presence, the dealership enters into negotiations with a bank, credit union, or subprime lender to sell the financing contract to the financial institution. If the bank buys the contract, you get the car, the dealer gets its money, and the bank gets payments over time.

Next time you buy a car or truck, look for language like this at the bottom of the financing paperwork: Seller assigns its interest in this contract to (name of financial institution like FMCC, GMAC, etc) (Assignee) under the terms of Seller’s agreement with Assignee.

This provision makes it clear the dealer is financing the sale of the car and then selling its right to repayment to a financial institution.

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.

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.

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