Used Car Warranty. Do I Need It?
Most people have auto insurance — from an auto insurance company — to protect them from the cost of accident damage, theft, and liability resulting from at-fault accidents. However the kind of insurance that most people have doesn’t cover mechanical failures, wear-and-tear, electrical failures, or any damages not caused by an accident.
These kinds of problems are typically covered by new-car factory warranties — for a limited time or for a limited number of miles. Most new-car warranties expire in 36 or 48 months, and 36,000 or 48,000 miles. Powertrain warranties which cover certain engine and transmission failures are usually longer.
Why do car manufacturer’s not offer warranties longer than 3 or 4 years? Because that’s when problems are most likely to begin.
People who buy used cars with no remaining factory warranty, or a soon-to-expire factory warranty, should consider a kind of car repair insurance to protect them from the high costs of unexpected repairs. Don’t make the mistake of thinking that your conventional car insurance pays for non-accident related repairs.
Continue reading Car Repair Insurance – Do I Need It?
Is it possible to buy a car for less than $1000?
Buying a good used car for $200, or $500, or even $1000 is not impossible but it requires extra time looking, checking, and driving to find the jewels among the junkers.
Most cars in this price range will be older and have high mileage, and lots of wear and potential problems.
Age and high mileage, however, is not necessarily a reason not to buy. Many cars with high mileage are in great condition and can last many more miles before finally falling apart.
Many problems with older used cars can be fixed relatively easily and inexpensively. Problems with engines and transmissions are the most expensive to repair. If the only problems are things like hoses, belts, wires, brakes, or electrical equipment, these can be fixed or replaced without great expense.
Continue reading Where can I buy a good cheap car for $200, or $500, or $1000?
Can a Dealer Take Back a Car After Papers Are Signed? Is it Legal?
The short answer to the above questions are Yes and Yes.
It’s a fairly common situation.
You buy a car from a dealer who arranges a loan, you sign the papers, possibly make a down payment and/or trade an old vehicle, and you drive away — thinking the deal is done.
You may have received the impression from the dealer that your loan was approved, which is presumably why you were allowed to drive away in your new car.
However, most dealers don’t provide or approve loans (except for buy-here-pay-here used car dealers). They use outside banks or finance companies. One of the papers you signed was a loan application, not a loan approval or grant.
Continue reading Dealer Wants Car Back – Legal or Not?