Tuesday, December 23, 2014

How does shopping for a car affect my credit score?

Credit scoring systems allow people to shop for the best rates on car loans without having a negative impact on their credit scores. They do so by counting all inquiries for auto loans within a given period of time as a single inquiry.

That time period may vary slightly from one credit scoring system to another but typically is 14-days.

That allows plenty of time for a person to be preapproved by their own lender, or for a car dealership to shop their loan application with multiple lenders in a practice commonly referred to as “shotgunning.”

When a car dealership shotguns a loan application, they send it to many different lenders with which the dealership has relationships. The process usually only takes a few minutes and enables lenders to compete for the loan and for the car dealership to help their customer find the best loan terms.

Often, the customer can pick the car they want, apply for credit, get approved and drive off the lot within a matter of hours, all without leaving the dealership.

Because credit scoring systems count multiple auto loan inquiries as a single inquiry, shotgunning does not affect a person’s ability to qualify for credit.

When considering a large purchase, such as a new car, consumers should get a copy of their credit report well in advance to make sure that everything in it is accurate. Doing so will also give an idea of areas that might need work to improve the credit standing before applying for the car loan.

I also encourage everyone to consider purchasing a credit score at least once when they request their personal credit report. The credit score will come with a description of what from their personal credit report most affected the score, both positively and negatively. Those factors are specific to the individual’s personal credit report and will enable them to identify the specific steps they need to take to become more creditworthy.

Because credit scores are unique to each individual’s credit history, it is unwise to give off-the-cuff advice. While it might be good advice for one person, it could be damaging for another.

By providing customers with credit score risk factor statements this allows to help them take steps to improve their creditworthiness.

Here is an example of a risk base pricing and understanding your credit score.

Sunday, December 7, 2014

Do You Need an All-Wheel-Drive or Four-Wheel-Drive Car?

The Pros and Cons of AWD/4WD

Published: 07/09/2013 - by Ronald Montoya, Consumer Advice Editor

Car shoppers looking at any vehicle with all-wheel drive (AWD) or four-wheel drive (4WD) as an option face a difficult decision. Is AWD that much safer and thereby worth the roughly $2,000 premium these vehicles command?

The short answer is this: AWD and 4WD help a vehicle accelerate in slippery conditions, but don't aid with braking and only sometimes improve handling. That said, you shouldn't necessarily cross the feature off your shopping list.

AWD and 4WD are often used interchangeably, but they operate differently and are found on different vehicles. The Edmunds Car Glossary defines the two as follows:

All-Wheel Drive (AWD): A drivetrain that employs a front, rear and center differential to provide power to all four wheels of a vehicle.

Four-Wheel Drive (4WD): A drivetrain that employs two differentials and a transfer case to provide power to all four wheels of a vehicle.

AWD is found on cars and crossovers like the Subaru Impreza and Dodge Journey, while 4WD is reserved for trucks like the Chevrolet Silverado and truck-based SUVs like the Toyota 4Runner.

The Textbook Cases
There are some cases when you should give AWD and 4WD serious consideration: for example, if you live near or spend time in places with unpaved dirt roads. Similarly, if you live in places where it rains or snows for many months out of the year, AWD or 4WD should be high on your list of "must-have" car options.

But for some people, the choice may not be that clear-cut. Here is a list of pros and cons to help you make a better decision.

Pros of AWD/4WD
Better Acceleration: An AWD or 4WD vehicle can accelerate better than a two-wheel-drive vehicle in inclement weather. "The advantage provided by AWD is mainly in the acceleration, as the traction needs will be equally distributed among all four tires," says Cyrille Roget, director of product marketing for Michelin North America. On a car with front-wheel drive (FWD), "the need for traction will be transmitted only on two tires," adds Roget.

Helps With Traction and Towing: A 4WD truck's improved traction can help you if you are towing from a wet, steep, boat ramp, says Dan Edmunds, director of vehicle testing for Edmunds.com. Similarly, if you go camping off-road in dirt or sandy areas, a vehicle with AWD or 4WD will reduce your chances of getting stuck. But you don't need these systems if towing on dry, paved roads and camping in developed spots is your thing, says Edmunds.

Improves Dry Handling: This only applies to AWD vehicles with torque vectoring. The AWD version of the 2013 Acura TL is one example. Acura's "Super Handling All Wheel Drive" (SH-AWD) distributes torque to all four wheels, using a pair of electromagnetic clutches to freely regulate torque distribution between the rear wheels. This system is one of the rare cases when AWD can help with cornering.

Added Resale Value: Your vehicle may be worth a bit more if you live in an area where trucks are popular, like Texas, or in a place with harsh winters, like Colorado. People are willing to pay a premium for vehicles with AWD and 4WD says Richard Arca, senior manager of pricing for Edmunds.com. If you look at the depreciation curve for these cars, it dips initially, but then regains its value after a few years, Arca adds. But if you live in a place with milder winters, like Southern California, there will be less demand for AWD and 4WD vehicles, and buyers won't be as willing to pay for the feature.

Cons of AWD/4WD
Added Cost: The cost of an AWD or 4WD system can range from $1,250 on a Honda CR-V to $3,275 on a Ford F-150. You'll also have to factor in slightly more for gas, since the vehicles' rated fuel economy is slightly lower.

Lower Fuel Economy: The AWD and 4WD components weigh more and place a higher load on the engine. This will decrease fuel economy by about 1-2 mpg. It may not seem like much, but this is a 5-10 percent decrease in trucks (4-9 percent in cars and crossovers) and can add up to a couple hundred dollars in a year.

More Maintenance: The differentials on AWD and 4WD vehicles require oil changes. And while the differential fluid doesn't need to be changed as often as the engine oil, it is an extra maintenance item to account for. These oil changes range roughly between $40 and $150. If something goes wrong with the differentials, they tend to cost more to repair than a 2WD vehicle.

False Sense of Security: It is easy to be lured by an automaker's advertising and think that having AWD means you can drive in the snow or rain as easily as you would in dry conditions. But the truth is that AWD and 4WD help only with acceleration and traction. Braking distances and handling will be the same as with the 2WD vehicle.

Focus on Good Tires
Ultimately, your vehicle's tires can be more important than the number of wheels being driven. For example, the 2013 Audi S5 is an AWD car, but it's not a great idea to take it for a ski trip straight from the dealer's lot. That's because the S5 comes standard with summer tires that wouldn't do well in the cold.

Here's another way to think about it: What would perform better in the snow? A front-wheel-drive car with winter tires or an AWD car with all-season tires? Michelin tested this scenario in a study a few years ago. The FWD car with winter tires outperformed the AWD car in nearly every test. The AWD vehicle had the edge in acceleration, but when it came time to hit the brakes, its braking distance was significantly longer than the FWD car. Of course, if the AWD vehicle had a full set of winter tires, it would be the hands-down winner, but it goes to show you the importance of good tires.

Don't Buy a 10 Percent Car
People sometimes buy an AWD or 4WD vehicle for the occasional off-road outing or ski trip, while 90 percent of the time they'll be sitting in traffic or using the vehicle on paved roads. These drivers would be better served by renting a car for their ski trips. This would save them money both on the price of the car plus the lower fuel costs.

Regardless of where you end up, make sure you take the time to weigh the pros and cons and find the right car for you.

Sunday, October 12, 2014

How to Prepare for Changing Seasons

The shifts in temperature and moisture that accompany changing seasons can take a toll on your car—and on its performance. Have the following services performed at least twice each year.

Coolant Level
Check your antifreeze/coolant level. The most common cause of engine-related breakdowns is cooling system failure. If you top off the coolant yourself, check the label on the coolant bottle to ensure it's the recommended type for your car make and model. Use a 50:50 ratio of antifreeze to water.

Wiper Blades
Replace your windshield wiper blades every year. In extremely cold climates, fill the washer reservoir with freeze-resistant wiper fluid (water and standard windshield washer fluid will freeze) and keep an extra gallon in the trunk.

Battery
Check your battery. If it is more than three years old, have a service technician test its capacity and the output of your alternator. Make sure the battery terminal ends are corrosion-free.

Tire Pressure
Check your tire pressure before you've driven more than fifteen minutes. This ensures that the tires are inflated to the proper pressure (listed on the sidewall). In colder weather, the air inside the tires will contract, and the pressure will drop.

Tread Depth
Check the tread depth on your tires. Hold a penny between the treads. If you can see the top of Lincoln's hair, it's time to replace the tire. In areas with a lot of rain, you should use the same "hair" rule with a nickel instead of a penny. In snowy/icy climates, consider changing your regular tires to winter/studded tires for the season.

Heat/Cooling System and Lights
Check that your lights, heater, and defrosters are working properly. Before summer, have the AC system checked and recharged if it's not doing a good job cooling incoming air.

Hoses and Belts
Check all rubber hoses and belts to ensure they are not damaged. Coolant hoses wear from the inside out. Inspect for heavy cracks or chunks missing from the belts.

Brakes
If you haven't had it inspected in the previous six months, have your car's brake system checked.

Winter Emergency Kit
Assemble a winter emergency kit and keep it in the trunk of your vehicle. The kit should include a blanket, extra boots and gloves, an ice scraper, windshield washer fluid, jumper cables, a first-aid kit, flares, a small snow shovel, a flashlight, kitty litter (for traction when stuck in the snow), and bottled water. Bottled water is good to keep in the car regardless of the season—you want to stay properly hydrated if you have to wait for help by the side of the road.

"Winter Weight" Oil
In very cold climates, consider changing to a "winter weight" motor oil, which works better in lower temperatures (regular oil grades get too viscous at low temperatures). 5w-30 is a typical winter-weight motor oil.

Gas Tank
Keep the gas tank 1/2 filled all winter long. This reduces the likelihood of moisture buildup in the fuel lines. Moisture buildup increases the likelihood that fuel lines will freeze and fail.

Repairman.com

Thursday, October 9, 2014

Average Bugatti owner has 84 cars, 3 jets, 1 yacht

First Drive: Bugatti Veyron 16.4 Grand Sport

By Noah Joseph

Posted Oct 5th 2014 7:07PM

Between Audi, Porsche, Lamborghini, Bentley and Bugatti, the Volkswagen Group has no lack of prestige marques under its umbrella. And while some of these marques may produce models that compete against each other, each seems to be profitable enough in its own right to justify its existence. But what about Bentley and Bugatti? Surely these marques cater to the same customers, right?

Not according to their shared CEO. "The clientele between Bentley and Bugatti is remarkably different," saidWolfgang Dürheimer in an interview with Bloomberg. "The Bentley customer on average owns 8 cars. The average Bugatti customer has about 84 cars, 3 jets and 1 yacht."

That may be a slight exaggeration (we'd have expected three yachts and one jet), but it puts things into perspective: Bentleys are for the one percent. Bugattis are for the one percent of that one percent. Which only goes to show why it's taken Bugatti over eight years to sell 450 Veyrons – a number of units it would take Bentley about two weeks to move, albeit at about one tenth the price.

With only about 20 units left to go, the Veyron is about to roar off into the sunset, after which Bugatti will introduce its replacement sometime late next year or early in 2016. The Alsatian marque is reportedly working on three different versions, and the final design – thanks in no small part to a hybrid assist – is expected too pack some 25 percent more power than the 8.0-liter quad-turbo W16 in the current Veyron, which produces 987 horsepower in standard form and 1,184 hp in the Super Sport and Vitesse models.

News Source: Bloomberg

Category: Car Buying, Performance, Bentley, Bugatti, Luxury

Tags: bentley, bugatti, customer, wolfgang durheimer

Tuesday, October 7, 2014

Lemon Law

We at DMV.org hope you never have to read our Lemon Law guide (because it probably means your shiny new car has gone sour). But if you do, we've cut through the legalese in your state's statutes to educate you about your rights under the law―in language anyone can understand.

Most states' Lemon Laws are spelled out in their legal code. But who wants to read through all that to find out whether your vehicle qualifies as a lemon? Our state-by-state guides will explain in plain English how Lemon Law claims are handled where you live.

In most cases, your state will mediate between you and the automaker to get the vehicle repaired or replaced, or your money refunded. Don't get stuck with a car you can't drive. Instead, empower yourself with information.

Use our state Lemon Law guides to find out how to keep good records, notify the manufacturer that the vehicle is flawed, file a Lemon Law complaint, and receive restitution.

We'll tell you exactly what your state's laws say regarding what qualifies as a lemon, how long you have to file a claim, and what the burden of proof is. With a purchase this expensive, it's critical to make sure you don't miss the deadlines or omit required paperwork in your filing.

Check your state's Lemon Law guide at the first sign of trouble―and protect your rights as a consumer.

Most states have a lemon law that gives consumers justice if they bought or leased a new vehicle with serious defects. In North Carolina, manufacturers must warranty their new vehicles for at least 12 months or 12,000 miles from delivery. North Carolina's Lemon Law, officially known as the New Motor Vehicles Warranties Act, does not cover used vehicles.

A lemon is a seriously defective car, van, motorcycle, or pickup truck where the defect cannot be repaired after a reasonable number of attempts, usually 4 attempts or more. It also applies to vehicles that have been out of service for at least 20 days within 12 months of the motor vehicle delivery date. According to the law, the manufacturer must replace the vehicle or refund the customer's money, a choice made by the consumer.

What's defined as seriously defective? A defect ("nonconformity") is one or more conditions that substantially impairs the value of the motor vehicle to the consumer. It's not limited to just operations of the car. If there are serious problems with the heat, air conditioning, or paint, they might substantially impair the vehicle's value to the consumer. The car can still be considered a lemon.

Ask a Lemon Law Attorney

Got a complex question and need a little help? Ask a paid expert today. 100% satisfaction guaranteed.

How to Get Justice or "Remedies"

If you want to rely on the presumption of a reasonable number of repair attempts, you must notify the manufacturer in writing, letting them know about the defect. You must allow the manufacturer up to 15 days to correct it.

By law, the manufacturer is required to put this information in the warranty or owner's manual, so you will know where to send notification. Of course, you should keep track of the notifications, as well as your repair bills and other records as proof that the manufacturer is at fault.

If you choose instead to sue the manufacturer, you must give them written notice before you file suit. If it's in your contract, the manufacturer may have you first try to settle the problem out of court. Considering they are under obligation to repair or replace the vehicle, or refund your money, they will likely comply with your request. Still, you might want to consult with an attorney at this point in the process.

When you choose to have the manufacturer repurchase your car, they must give you the full contract price including undercoating, dealer preparation, and the nonrefundable parts of any extended warranties, plus collateral charges such as sales tax and registration fees, and finance charges. They can subtract a reasonable allowance for your use of the vehicle during the time you owned or leased it.

If you choose a replacement vehicle instead of a refund, the manufacturer must replace it with a comparable new vehicle. If it's a leased vehicle that is being replaced, you must transfer the title to the manufacture so that you can receive a new vehicle.
The NC Department of Justice offers many consumer tips and suggestions, including the Lemon Law. For more information, visit the Attorney's site or consult your attorney.

Finally, though you have protection under the Lemon Law for new vehicles, used vehicles are another matter. See our page on buying and selling a vehicle for some consumer protection tips on buying used cars.

Choose a State:

Written by DMV.ORG

Monday, October 6, 2014

Test Drive a Used Car

Whether you shop for a used car through a dealer or a private party, you will want to get behind the wheel and take the car for a spin. Individual owners may be reluctant to allow you to drive the car by yourself. If that is the case, agree to have them accompany you in the passenger seat but don't allow them to have a running conversation with you as you drive along. This is perhaps your only opportunity to really check the car out before you make a decision to buy or not.

Dealers are accustomed to having people test drive their vehicles; they will have their own requirements for letting you behind the wheel. In either case, be sure to bring along your valid driver's license, another form of photo identification, and information on your insurance provider for good measure. Be sure to generally allow 20-30 minutes with you behind the wheel in order to get a full picture of the car's performance.

You can print out a copy of a test drive worksheet so you won't forget what to check.

Pre-Trip Inspection For Used Cars

Before you even get into the vehicle, do a little preliminary check:

Are the tires in safe condition―no cracks, splits or excessive wear?

As you slide into the driver's seat, there are a number of things to consider even before you turn on the ignition:

Is the car in overall good condition?

Are the seats, carpets, switches, mirrors and headliners all in acceptable shape?

Is the seat comfortable, evenly padded, in good repair, and adjustable?

Does the car provide the primary driver with an unobstructed 360-degree view?

Do the safety features work―horn, headlights, emergency brake, seat belts, and windshield wipers?

During a Used Car Test Drive

Once you have settled in, adjusted the seat and mirrors, and fastened your seatbelt, you can begin your actual road test:

Is the car easy to start?

Does it turn over on the first try?

Are the gears (manual transmission) easy to shift?

Is the clutch easy to engage with no abnormal sounds or hesitation?

In an automatic transmission, does the car move smoothly from gear to gear?

Is there any unusual noise or hesitation while changing gears?

Are the brakes strong?

Is there a pull to either side as you step on the brakes?

On the freeway, does the car have good acceleration?

Can it easily reach speeds in order to merge with the flow of traffic?

Do the turn signals work?

Is the car easy to maneuver during lane changes?

Are there any blind spots?

Does the cruise control work?

Around town, does the car handle well and idle steadily during stops?

Is the acceleration strong starting off on a green light?

Is the car easy to park in a number of types of parking spots?

Do the air conditioning and heating systems function properly?

During a quiet moment, listen for any strange sounds:

Does the wind whistle through windows that can't quite close all the way?

If there is a moon or sunroof, is air coming through even when closed?

Check the sound system, if that is an important feature to you:

Is the radio reception unclear?

Is the CD or DVD player functional? (You may want to bring one along just for a test.)

Post-Trip Review Of Used Cars

Back at the dealer lot or the seller's home, you should take a few minutes to walk around, crawl under, and pop the hood of the car. Check to see if there is any dripping fluid, smoke billowing from the exhaust system, or any build up of dirt and grime on and around the engine.

If you are testing a car for sale by an individual, it is also good practice to ask to see their file of maintenance records and any receipts of auto parts and repairs. Most people keep many of these records, and if the seller claims not to have any at all, you may want to view the car with a degree of skepticism.

Ask how long they have owned the vehicle―if they haven't owned it very long, request the previous owner's name and phone number and give them a call. There may be real reasons why the latest owner is disappointed with the car and wanting to sell it right away.

Order A Vehicle History Report

Regardless of whether you are shopping through an individual or a dealer, it is wise to jot down the Vehicle Registration Number (VIN) and run a vehicle history report through DMV.org. For a nominal fee these reports will provide you with a wealth of information on this unique vehicle.

The report will show you if the car has a valid title, if the car has been involved in a serious accident (or flood or fire), how many times the vehicle has changed hands, and when and where the car was built. Knowing this information may not necessarily change your mind about buying the car, but at least you will have the facts from which to base your decision.

Get A Mechanic's Inspection

It is important to have any car you consider purchasing checked out by an independent mechanic. A reasonably priced diagnostic report can save you from buying a car that will cost you a lot of money down the road. Private owners won't usually balk at the idea of you taking the car to your local mechanic, but if they do, there are mobile units that will come to where the car is located.

Sometimes car dealers will discourage you from taking the car to an independent mechanic; they may say that it is unnecessary because it has already been cleared by its own service department. If you trust the dealer, it may be enough to request a copy of the service department's findings, but now is the time to make a written list of any problems you have identified. Negotiating who will be responsible for the correction of these problems now becomes a bargaining chip when it comes to closing the deal.

Written by DMV.ORG