Franchise Dealers Become More Aggressive!
With the decline in auto sales and the tightening of per car profits the new car franchise dealers are looking for new ways to keep customers. They are focusing on the service department trying to woo away customers from independent shops and retain customers after the new car warranty has expired.
There is a big push to sell extended maintenance contracts. These are pre-paid plans that cover all of the scheduled maintenance on a car for 60 or 100 thousand miles. They do not cover breakdowns. The idea is that if they can get the customer back into the dealership on a regular interval they will sell more service and have first shot at selling the replacement car in a few years. From a dealer’s point of view it is a very good idea. From the car owner’s maybe not so much.
When you buy an extended maintenance contract it is calculated on the “normal” service schedule. Most conscientious motorists realize that the “normal” service interval may not protect their car if they plan to keep it beyond the payment schedule. You are paying for service you may not need if you sell, wreck or have the car stolen before the contract expires. On top of that with all of the dealerships closing or selling out you may have a problem getting the terms honored even if you keep the car.
Another item growing in popularity is extended warranties. New cars come with at least a 3 year 36,000 mile warranty and many come with much more. Extended warranties pick up the cost of repairs after the normal warranty expires. For the dealer this is a very profitable add on sale. They get the sales commission on the contract and if they roll it into the financing they also make more money on the sale of that note. The consumer may not be getting all they expect.
There are some very good extended warranty plans; GMPP is a good one. There are many that are terrible. The motorist has to read the contract and be sure that they understand what the agreement includes. Often the warranty company is not the manufacturer but is an independent reseller of repair insurance. Fedelis is an example of this and they just went bankrupt.
Many of these warranties specify that they alone can determine the parts to be used on the repairs and the labor rate they will pay. Often used parts are included and a labor rate that is well below the area average is specified. That leaves the car owner with option of paying the difference for a quality repair or getting a poor job.
If you buy an extended warranty at the time you by the car you will pay for it during the time that the car is covered under the factory warranty. That means for at least 3 years you are paying for something you cannot use. If you cancel the policy it will be prorated for the time you had it, including the time you could not use it.
If you go to a dealer and they approach you about either a maintenance plan, or an extended warranty consider carefully your options.
Freedom Automotive will be happy to work with you to develop a maintenance program that will keep your car performing well for as long as you want to keep it. We also honor most extended warranties.
Freedom offers what we consider on of the best protection plans available today. Freedom and BG Products offers an unlimited mileage, lifetime, transferable protection plan that will cover many of the serviceable components. For more information about this alternative or addition to your car warranty call the shop. |
Car Problems on the Freeway
After a recent event helping a friend of the family I thought it might be useful to provide some safety advice on what to do when you have car problems on the freeway.
We have all seen the poor motorist stuck on the side of the freeway at one time or another during our driving career. Some of us have actually been that person. If you find yourself in a situation where your car starts to run bad, shake, shimmy or vibrate try to follow these simple guidelines to safety.
When you notice a problem, immediately start to slow down, turn on your hazard signals and move to the farthest outside lane on the roadway. If you find that you have to pull over this is the safest lane to be in. The right hand shoulder provides you with slower traffic and easier access to exit the highway.
If a problem develops and you are on an overpass, either stop before the crest or proceed to the bottom of the hill. This will increase your visibility to other motorists and greatly reduce the chances of being struck from the rear.
If you have to change a flat tire on the shoulder of a highway you need to exercise great caution getting in and out of your vehicle and while you are kneeling on the traffic side of the car. Get your car to a flat spot off of the hill or overpass to change the tire. Jacking a car up on a hill or overpass can lead to very dangerous conditions such as the car rolling and coming off the jack. It is better to run on the flat tire and ruin the rim than to become a statistic.
Never get under your car while it is on a jack. If you have a passenger with you do not let them stay in the car while it is jacked up, their movement inside the car can cause the car to slip off of the jack. They can help keep watch on upcoming traffic and provide someone for the other motorists to see when they drive up on you.
Some handy items to keep in the trunk at all times in case of an emergency would be a crank operated flashlight, handy wipes to clean your hands, an old towel to use if you have to kneel down, a gallon of water and a good set of jumper cables. Jumper cables should be at least “0” gauge wire if not thicker (the smaller the number the thicker the wire).
Your cell phone is probably your greatest asset if you have car problems. If you get stranded on the road even if you can handle the situation yourself call someone and let them know what happened and where you are. Arrange to call them back in a specified time. Cars are not the only danger on our highways.
On the back of your driver’s license is the phone number for the Texas Roadside Assistance Program. If you need help and have no other resources to get it call it. The phone number for Texas Roadside Assistance is 1-800-525-5555.
Buying vs Good Maintenance
The average cost of a new car in 2009 was $30,002. That is up about $1800 from the 2008 average. Dealers report that while many potential buyers can no longer qualify for new car loans, those that do have stronger credit and can buy higher priced vehicles. They also say that lower end cars are still popular, but buyers are loading them up with options driving the economy price up to new levels.
The State Sales Tax on a $30,000 new car is about $2,000 (6.25%). That's on top of the 30 grand for the car. Seems to me you could do a lot of maintenance on the car you have for that $2,000 and not have to sign a note for the other 30 grand.
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There's no trick to being a humorist when you have the whole government working for you.
A fool and his money are soon elected.
About all I can say for the United States Senate is that it opens with a prayer and closes with an investigation.
Alexander Hamilton started the U.S. Treasury with nothing, and that was the closest our country has ever been to being even.
Our Constitution protects aliens, drunks, and U.S. Senators.
The country has come to feel the same when Congress is in session as when the baby gets hold of a hammer.
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A holding company is a thing where you hand an accomplice the goods while the policeman searches you.
Advertising is the art of convincing people to spend money they don't have for something they don't need.
Ancient Rome declined because it had a Senate, now what's going to happen to us with both a House and a Senate?
Be thankful we're not getting all the government we're paying for.
I bet after seeing us, George Washington would sue us for calling him "father."
The only difference between death and taxes is that death doesn't get worse every time Congress meets.
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