Land Rover off-road adventure
Road sign: You don’t have to be crazy to drive this road, but it helps. Page 6
Future mandates on fuel economy Is bigger better when it comes to cars? Page 8
PRESIDENTS DAY 2011
AUTOMOTIVE SHOWCASE Copyright © 2011 Lewiston Daily Sun
Saturday, February 19, 2011
Advertising supplement to the Sun Journal
www.sunjournal.com
Purchasing power:
What prospective auto buyers should know Outside of purchasing a home or choosing a college, buying a car is arguably the biggest financial commitment a person will make. For first-time car buyers, the process can prove as intimidating as it can fun.
Know your credit score. Buyers who hope to lease or finance a vehicle should know their credit scores before visiting a dealership. The interest rate a buyer hoping to finance receives will largely depend on the individual’s credit rating. If a buyer’s credit score is low and a new car isn’t entirely necessary, it might be a good idea for buyers to keep their current vehicle, reestablish their credit and then revisit the buying process once their credit score has recovered.
Most auto buyers will be looking to finance or lease their vehicle rather than buy it outright. But even those buyers who aren’t planning to finance will likely look to negotiate the final cost of the vehicle in the same way buyers hoping to finance or lease will negotiate the terms of their purchase agreements. Before any negotiations can begin, there are things buyers should know about the process that can help or hurt them at the negotiating table.
Men and women hoping to lease a vehicle should know that many lease agreements require a minimum credit score and individuals whose score is not high enough are not eligible to lease.
Know the factors that determine interest rate.
Know your budget. A b u y e r ’s b u d g e t e x t e n d s beyond the sticker price of their new vehicle. Auto insurance and fuel should also be considered when buyers are creating their vehicle budgets. The cost of auto insurance can vary significantly depending on the type of vehicle purchased.
Many factors should influence a buyer’s decision before he or she signs on the dotted line for a new vehicle. For example, the latest sports car to hit the market will cost more to insure than a typical sedan. The same goes for fuel costs, as an SUV
will clearly cost more to gas up than a compact car. Each of these costs should be factored into a buyer’s budget.
Interest rates can be low and they can be high, and it’s not just a buyer’s credit score that determines the interest rate. The type of vehicle, the amount of the down payment and the length of the finance agreement all help determine the interest rate a buyer will receive. When negotiating an interest rate, buyers should ask the lender what they can do to reduce their rates. A bigger down payment, which
should also result in a shorter financing agreement, will likely lead to a lower, more manageable interest rate.
Know the value of a cosigner. Many buyers would prefer to go it alone when buying a new vehicle, but for some buyers a co-signer can greatly reduce how much they will end up spending. Younger drivers, for example, of ten have limited credit histories, which makes them riskier in the eyes of lenders. While a lender might still agree to lend such drivers money, it’s often at the expense of a significantly higher interest rate. Drivers with limited or checkered credit histories might want to ask someone close to them to co-sign a loan, which could greatly reduce their interest rate, saving them substantial amounts of money over the course of the loan.
Know what you are buying. The most flashy car on the lot is not necessarily the most reliable. Because a new vehicle is such an expensive investment, buyers
Purchasing power
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Pros and cons: Is a hybrid car the right fit for you? While some ecofriendly behaviors and lifestyle changes have been easy to adopt, others have proven far more difficult. Perhaps nothing illustrates that more than consumer reaction to hybrid cars. Hybrid car sales have dipped in recent years. But supporters note that vehicle sales in general have also decreased over that period, meaning it’s quite possible hybrid car sales are indicative of a
Auto warranties, routine maintenance, and repairs: Is using the dealer a must? If you own a car, you know how important it is to keep up with routine maintenance and repairs. But can a dealer refuse to honor the warranty that came with your new car if someone else does the routine maintenance or repairs? The Federal Trade Commission, the nation’s consumer protection agency, says no. In fact, it’s illegal for a dealer to deny your warranty coverage simply because you had routine maintenance or repairs performed by someone else. Routine maintenance often includes oil changes, tire rotations, belt replacement, fluid checks and flushes, new brake pads, and inspections. Maintenance schedules vary by vehicle make, model and year; the best source of information about routine scheduled maintenance is your owner’s manual.
What is a warranty? larger slump, and not necessarily indicative of an adverse consumer reaction to hybrid cars. Whatever the reason for dwindling sales, it’s clear consumers have been reticent to embrace hybrid cars, especially when compared to other eco-friendly lifestyle changes that have caught on seemingly en masse. For those considering a hybrid car, there’s a valid case to be made on both sides of the fence.
Why buy a hybrid car? Buying a car is never an easy decision. Choosing to buy one that’s fundamentally different
than one you’ve ever purchased before is even more difficult. Perhaps there’s no greater reason to buy a hybrid car than the environmental benefits. A hybrid’s low emissions mean less greenhouse gases, which can include harmful carbon dioxide. Less emissions make for a healthier planet. For consumers whose chief concern is the environment, then hybrid cars are the way to go. There’s also more practical reasons to buy a hybrid car. Better gas mileage means drivers will be paying less at the pump, which can add up to significant savings over time, not to mention less fuel
consumption that will help the environment as well. Hybrid cars also tend to be more efficient. Hybrids have both an internal combustible engine and an electrical system, enabling drivers to switch back and forth bet ween the power sources to make their vehicle more efficient, burning less fuel when the conditions allow and using less electrical energy when the conditions would otherwise drain the electrical power system.
Why steer clear of hybrid cars?
largely economical. Resale value of hybrid cars pales in comparison to that of traditional automobiles. Much of this lower resale value is thanks to the battery needed for hybrid cars. Hybrid car batteries typically n e e d to b e r e p l a ce d o n ce per decade. When selling a preowned vehicle, drivers might find that vehicle is less attractive to prospective buyers if that battery has not previously been replaced or if it’s been several years since it was replaced.
Hybrid cars
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Hybrid cars’ biggest problems are
Navigating the road map to car shopping success Despite a wealth of information available to help consumers find a vehicle, the car shopping process can still be intimidating for some—especially women.
Do your homework before visiting dealerships; you’ll feel more confident about your decisions.
A recent survey from AutoTrader. com, the Internet’s leading auto classif ieds marketplace and consumer information website, found that about one in four women finds shopping for a vehicle “stressful,” compared to only 15 percent of men.
Furthermore, while nearly half of men feel “certain and confident” when visiting car dealerships, only one in four women feels the same way. According to Courtney Hansen, host of Spike TV’s “Powerblock” and author of “ The Garage Girl’s Guide to Everything You Need to Know About Your Car,” shopping for a car can be a fun a n d rew ar d in g e x p e r i e n ce, r e g a r d l e s s o f t h e b u y e r ’s automotive know-how. “Long gone are the days when making car purchases is a man’s role. In fact, women influence over 80 percent of all automotive sales,” she said. “Doing your homework on sites like AutoTrader.com and
arming yourself with a few simple tips will help anyone in the market for a new car feel more satisfied with the purchase in the end.” Developed by Hansen, the new AutoTrader.com Roadmap to Car Shopping Success makes it easy for women to approach the car-shopping experience with certainty, regardless of how car savvy they are. It also provides them with tips and insights needed to find the right vehicle for them. Some of these tips, available at www.AutoTrader.com/roadmap, include:
Navigating page 4 ‰
A warranty is a promise, often made by a manufacturer, to stand behind its product or to fix certain defects or malfunctions over a period of time. The warranty pays for any covered repairs or part replacements during the warranty period.
Do I have to use the dealer for repairs and maintenance to keep my warranty in effect? No. An independent mechanic, a retail chain shop, or even you yourself can do routine maintenance and repairs on your vehicle. In fact, the Magnuson-Moss Warranty Act, which is enforced by the FTC, makes it illegal for manufacturers or dealers to claim that your warranty is void or to deny coverage under your warranty simply because someone other than the dealer did the work. That said, there may be certain situations where a repair may not be covered. For example, if you or your mechanic replaced a belt improperly and your engine is damaged as a result, your manufacturer or dealer may deny responsibility for fixing the engine under the warranty. However, according to the FTC, the manufacturer or dealer must be able to demonstrate that it was the improper belt replacement — rather than
Questions about your warranty
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