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Insider Report News |
| How to Avoid Purchasing a Flood Damaged Hurricane Vehicle Current estimates are that over 500,000 cars may have been destroyed following Hurricane Katrina and that number could be significantly higher because of Hurricane Rita. “Anyone buying or selling a used car needs to be aware of potential problems that may exist," says Larry Gamache, communications director at Carfax. It’s not just “water damaged” branded cars you have to worry about. "Our data tells us that storm-related damage to vehicles isn't limited to just flooding. We have found that states brand up to ten times as many cars 'salvage' as they do 'water damage' after a hurricane," said Scott Waldron, president of Experian Automotive. "Potential used car buyers need to safeguard themselves from purchasing storm damaged vehicles from unscrupulous sellers and should be sure that their check includes salvage vehicles." Immediately after Hurricane Katrina passed through the Gulf Coast, special National Insurance Crime Bureau (NICB) catastrophe teams begin the process of identifying and cataloging vehicles and watercraft affected by the hurricanes. Working in partnership with the Louisiana State Police Insurance Fraud Unit and insurance company investigators, NICB created a database of vehicle identification numbers (VINs) and boat hull identification numbers (HINs) affected by either hurricane. This data is made available to law enforcement, state fraud bureaus, insurance companies and state departments of motor vehicles to keep future consumers from being victimized by unscrupulous auto and watercraft sellers. Beyond the official users of this data, NICB is making it available to the general public to give the information the widest possible distribution and to provide potential buyers of these vehicles one more self-defense tool against fraud. Links to the free CarFax Flood Check, Experian/AutoCheck Storm Scan, and the National Insurance Crime Bureau database can be found on the ConsumerAutomotiveReseach.com Resources section under Hurricane Damage Vehicle Information. |
Proper Washing And Waxing Adds Value To Vehicle More than one-third of car owners use damaging non-automotive products that could contain harmful detergents, abrasives, and additives when washing their cars. And almost half of motorists don't ever wax their vehicles. "Waxing at least twice a year is recommended for maximum protection, yet surveys show that 48 percent of motorists don't wax their vehicles at all," said Jeffrey Webb, director of retail marketing at Turtle Wax, Inc. "That's leaving money on the table at trade-in time, as a clean, well-maintained car can be worth up to 50 percent more than one in 'fair' condition, according to the Kelley Blue Book." Motorists should avoid dish detergent, which contains harsh chemicals that, intended to cut through grease, will strip away the wax finish on your car. Some are hard to rinse off and leave streaks. For best results, a formulated automotive wash is recommended, one that gently lifts the dirt and grime while protecting the finish. Washing an automobile on a regular basis protects it from the natural elements that harm the finish. The Car Care Council recommends the following dos and don'ts when it comes to a do-it-yourself car wash:
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Recall, Warranty, and Investigation News: Volvo Extends Warranty on Stalling Cars Volvo has quietly reached an agreement with regulators to extend the warranty of defective throttles in about 356,000 vehicles in the United States and Canada that have a potential problem with stalling. The ETM throttle can become corroded and cause the car to stall or slowdown. Possibly 94 percent of these ETM throttles will fail. A dashboard light will indicate the part is becoming defective. The throttle warranty will now cover 200,000 miles for 10 years. Volvo will also reimburse consumers who have paid up to a $1,000 to have the throttle repaired. This agreement is not a recall, but only provides motorists with a repair. The affected Volvo’s are the 1999-2002 C70, 1999-2000 S70, V70 and V70SX , 2000-2001 V70, V70XC and S60. 1999-2001 S80, and 2000-2002 V70 and S60 models. Ford Recalls Models Because of Battery Cable and Fuel Tank Problems Ford has recalled almost 220,000 model year 2005 vehicles regarding concerns that a battery cable could rub against the vehicle frame potentially causing fires, and that a fuel tank strap could separate. The cable recall involves the 2005 Ford Crown Victoria, Lincoln Town Car and Mercury Grand Marquis. Ford said in a letter to the National Highway Traffic Safety Administration that it has received four reports of fires. A Ford spokesperson said chafing of the cable causes exposure of wires to the vehicle frame, causing the frame to become electrified in some cases and carry the potential for heat damage or fires. A separate recall of the Ford Freestyle, Five Hundred, and Mercury Montego was caused by separation of fuel tank straps. There is a possibility that the strap could separate and cause the fuel tank to drop at around 100,000 miles. The National Highway Traffic Safety Administration is investigating Dodge Durango SUVs and Dodge Dakota pickup trucks because of a possible loss in steering control. The preliminary investigation involves nearly 500,000 Durango 2004-05 models and the Dakota 2005 model. The NHTSA said it has received several reports of looseness in the steering shaft or separation because of loose or missing coupling bolts in the vehicles. They also report no crashes or injuries related to the issue.
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Tip of the Week |
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Extended Warranty Savings Warranty Direct is offering $25 - $100 off on selected plans. No closing date reported yet on this offer. www.WarrantyDirect.com |
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Top 10 Foods Not to Eat While Driving Eating while you drive is one of the most distracting things you can do, according to several recent surveys by insurance companies and data from the National Highway Traffic Safety Administration. Insurance companies analyzing what people eat? And you wonder why we're paying such high insurance rates. Anyway, here goes... the top 10 food offenders in a car are: 1. Coffee |
| Dunlop Tire Defect Law Suit
A class action suit was filed against Toyota Motor Corp. and Goodyear Tire & Rubber Co. alleging the companies sold defective tires on some of Toyota 's Sienna minivans. The suit claims run-flat Dunlop tires produced by Goodyear and installed on Toyota Sienna minivans could wear out after approximately 10,000 miles of use. The suit claims the tires are defective and need to be replaced yearly. |
| Auto Insurance Doesn’t Cover Personal Property Personal property stolen in a vehicle or damaged in an accident is not covered by your auto insurance. For less expensive items you can file a claim with your home-owner's insurance policy. If you constantly carry expensive items like golf clubs or laptop computer in your car consider adding a rider to your home-owner's policy. |
| Deceptive Lending – Insiders Secret
Known as the “dealer markup”, car buyers who finance through the dealership often have percentage points added on to their loan. This auto loan markup results in customers paying up to $1,000 in hidden fees. Insiders tip – compare rates from multiple sources such as banks, finance companies, and credit unions before going to the dealer. Also, increasing numbers of people are now using online lenders. They usually offer the lowest rates on auto financing. Online leaders can process your application and tell you the amount you qualify for in minutes. It’s important to note that the good online lenders do not charge an application fee. To find some no application fee lenders visit our Resources – Insurance and Financing section. |
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