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Insider Report News |
| Time Is Running Out for Big Savings on Extended Warranties If you are considering purchasing an extended warranty now is the time to buy. As the clock runs down to ring in the New Year, it’s also running down the age of your car or truck. At midnight on December 31st your vehicle is now officially one year older. Along with the normal new year price increases, more importantly your vehicle will be considered one year older. This has a huge impact on what you will pay for coverage and what level of coverage you qualify for. Warranty company's coverage and prices are based on eligibility guidelines. The two main factors in determining eligibility are the model year of a vehicle and the mileage. When your vehicle turns a year older the warranty companies view it as having a higher risk of requiring repairs and therefore charge more for a warranty policy. Just to give you an idea of the price impact this will have, here is a sampling of cost increases the new 2006 eligibility guidelines will bring for a 72 month 100,000 mile Bumper to Bumper policy:
In addition to the cost increases, depending on the make and age of your vehicle you may not qualify for the longer term policies and may not even qualify for a full Bumper-to-Bumper policy. If You Decide to Purchase Give yourself enough time to evaluate different warranty companies and different policies. Most companies, like Warrantybynet and AutoWarrantyBroker, will honor their quotes until close of business on Friday, December 30th. AAAutoWarrranty honors all quotes up until midnight December 31st. You must purchase before each company’s deadline. In the case of AAAutoWarranty you can also purchase online at the last minute. An insider’s tip is select no more than two or three companies to review. Any more than that is overwhelming and requires a team of accountants and auditors. For links to warranty companies do a Google or Yahoo search for “Auto Warranty” or “Extended Warranty”. Warranty companies can also be found on our Resources section. And remember, if you are going to purchase make sure you have your Vehicle Identification Number (VIN) in front of you. The VIN can be found on your title, registration, insurance card, or the driver side dashboard of your vehicle.
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What Determines a Recall A wide variety of engineering and manufacturing errors can cause a defect or unsafe condition in a vehicle. Defects that have been determined to be potentially life-threatening or safety hazards will initiate a recall. A defect is usually confined to a specific make and model produced at a specific time and sometimes even at a specific plant. In the case of tires or parts that are used across multiple vehicle models a recall might encompass many different makes and models across many years. Typical safety related defects include:
The National Highway and Traffic Safety Administration (NHTSA) is responsible for investigating safety related defects. Consumers can report problems to the NHTSA Safety Hotline at 1-888- 327-4236 or online at www-odi.nhtsa.dot.gov/cars/problems/complain/. When multiple reports for the same problem are received, the NHTSA will initiate an investigation to determine the exact cause of the problem. If a safety issue is found, the manufacturer will issue a recall, and if they don’t the NHTSA can force a recall. On occasion the manufacturer will issue a recall based on its own findings. The Recall Process Once a recall is issued vehicle owners will be sent an official Safety Recall Notice by mail. The recall notice will outline the specific repairs needed and list dealers who will do the repair. Repairs are typically done free of charge, but don’t expect a free loaner car. In some cases manufacturers may replace the vehicle or refund the purchase price, less depreciation, if the problem is severe. Is a Technical Service Bulletin a Recall? No. Problems that are not safety related do not fall under a recall. Items such as a radio or air-conditioner failure are considered warranty items and would be covered under the normal manufacturer’s warranty. Technical Service Bulletins are issued to cover repair techniques or procedures on specific problems or defects and include guidelines for warranty repairs. On occasion, a manufacturer will repair an out of warranty problem at no cost or reduced cost if they consider it a defect just to keep you as a loyal customer. The guidelines for these types of repairs are issued as Technical Service Bulletins to the dealers. Vehicle owners are not notified of Technical Service Bulletins. If you need a repair it is a good idea to call the dealer’s service department, explain the problem and ask if a service bulletin has been issued. This could save you considerable headaches and money. To research recalls and complaints on your vehicle, links to the NHTSA and Office of Defects Investigation can be found in our Resources section. |
| Tip of the Week Lock de-icer does a great job freeing a frozen lock but you could be harming your locks if you don’t re-lubricate. The alcohol in de-icer melts the ice but also dissolves the lock lubricant. After using a de-icer you need to re-lubricate your locks with a graphite based lubricant like Lock-Ease. |
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Top 10 Most Dependable Vehicle Manufacturers
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Government Opens Probe Into Ford, Mazda Trucks The government has opened a probe into the brake lights on the Ford Ranger and Mazda B-Series trucks from the 2003-2005 model years. The National Highway Traffic Safety Administration said that it was investigating the potential for a short circuit in a wiring harness that could blow a fuse providing electrical current to all brake lamps. |
| Survey Says Car Color Matters More to Men
A new survey has revealed color is more important to men than women when it comes to shopping for a new car. Women were found to be more practical rating fuel economy and environmental impact high priorities. While men consider make, model, and engine power high priorities. Go figure. They needed to do a survey to determine that men want more horsepower! |
| Toyota Recalls Doubled in 2005 The auto industry as a whole has dramatically improved the number of recalls in 2005 over record-breaking 2004. With one exception, Toyota ’s recalls have more than doubled in 2005 now up to 2.2 million vehicles. Toyota has been plagued by steering linkage and ball joint problems compounded by the increase of common parts used among many different car and light truck models. |
| Where You Live Could Lower Risk of Car Accidents?
In our continued coverage of “Another Insurance Industry Waste of Money Study” - a new study released by the insurance industry says that if you live within 1-mile of a church, you're far less likely to have a car accident than drivers who live more than a mile from a church. But if you live within 1-mile of a restaurant, you face a significantly greater risk of an accident than most other drivers. Our question is what happens if you live within 1-mile of a church and a restaurant? Does it equal out? |
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