Cash For Clunkers otherwise known as CARS (Car Allowance Rebate System) is a Federally funded program paid for with American tax dollars even though the products of foreign manufacturers qualify for the rebates as well. It was designed for two purposes;
1) To stimulate the economy by reducing new car inventories and
2) To increase overall gas mileage figures by removing older, less efficient vehicles from service.
There are several things you should know before you decide that trading in a car possibly in need of some repairs and services is right for you.
1) To qualify for the program the vehicle being traded in cannot be more than 25 years old.
2) The maximum credit you can receive is $4,500 but it can be as low as $3,500. It depends on the difference between the gas mileage of the car you trade in and the new car you buy or lease. If the fuel economy of the new car is at least 4 but less than 10 mpg higher than the traded vehicle the credit will be $3,500. If it is more than a 10 mpg difference the credit will be $4,500. For SUVs, vans and pickups (category 1 vehicles) the fuel economy of the new vehicle must be at least 2 but less than 5 mpg higher than the trade in for a $3,500 credit and over 5 mpg higher for the $4,500 credit. For category 2 vehicles the fuel economy of the new vehicle must be at least 1 but less than 2 mpg higher than the trade in for a $3,500 credit and over 2 mpg higher for the $4,500 credit. Category 3 vehicles (known as work trucks; large pickups for example with a bed at least 72” long) don’t have an mpg requirement. They only qualify for the $3,500 rebate and must have been manufactured no later than 2001 and no earlier than 25 years prior to the trade in date.
3) A new leased vehicle only qualifies if it is on at least a five year lease.
4) The program does not apply to new vehicles with an MSRP over $45,000.
5) The credit is all you will receive for your traded vehicle. Since it is being sold as scrap it will have no additional value. You may also have to pay a fee of up to $50 to have it crushed.
6) Although the rebate is not taxed federally, it may be taxed by individual states and localities.
7) The vehicle to be traded must have been registered to the current owner and must have had continuous insurance coverage for at least one year prior to the trade in date.
8) For a new car to qualify it must have a combined city/highway gas mileage of at least 22 miles per gallon. Category 1 trucks at least 18 mpg, category 2 trucks 15 mpg and category 3 the heaviest trucks, don’t have a mileage requirement although they can only be traded for another category 3 or a category 2 vehicle.
9) The vehicle to be traded in must have had a combined city/highway gas mileage of less than 18 mpg when it was new.
10) The vehicle to be traded must be drivable.
11) The program only applies to trade-ins towards new vehicles, not used ones.
Factors of which to be aware:
1) Many new car dealers would give up to $4,500 in trade-in money without the program just to move new cars. So the fact that this program exists doesn’t change anything much except that American tax dollars are once again being used to bail out the world.
2) Foreign manufacturers who are not in the same financial difficulties as the American car companies will reap a good portion of the benefits of the program while only a tiny percentage of American taxpayers will be able to avail themselves of it.
3) Even though dealers are supposed to give all additional rebates and discounts to consumers, that may or may not happen depending upon the individual dealer’s sales tactics so the buyer must beware.
4) It’s only another form of trade in money. If you buy a new vehicle you start the monthly payment cycle all over again for the next 4, 5, or 6 years.
5) Even if you can qualify for 0% financing (if your dealer has that program) that only takes care of the interest; you will still have a hefty monthly payment.
6) Registering a new vehicle will no doubt raise your insurance rates as well.
7) You might be paying out thousands of additional dollars to save only a couple of miles per gallon.
8) Even if your vehicle needs a major repair, like an engine or a transmission, the entire cost to fix it could be less than the down payment or the sales tax on a new vehicle. That would give you back full use of your vehicle without the monthly payments.
In tough economic times like these you may want to think long and hard before signing on to any long term commitment. We know how quickly the employment situation can change. Keeping what you have and investing a few bucks in it might be the most prudent way to go.
Thursday, August 13, 2009
Friday, July 31, 2009
How to Shop For Automotive Repairs and Services
The first and best indicator as to whether or not you will have a pleasant experience having your vehicle repaired or serviced is the reputation of the shop you are thinking of using. All automotive shops earn a reputation either good or bad; it doesn't just happen.
If they diagnose properly, don't over or under sell the repairs, and keep their promises to customers, they will likely earn a good reputation. If, on the other hand, they allow customers or others to make the diagnosis for them, do not recommend the proper repairs and services, under or overcharge in an effort to make up for their shortcomings, and don't do what they said they would, customers will stop coming and tell others to do the same.
STEP 1: Ask Around
Have your friends, family or co-workers had a vehicle repaired or serviced lately? What was their experience with the shop they chose? Would they recommend it? If not; why not? Keep in mind that most people really don't want to spend anything to fix a car. Ask about their overall experience and the level of professionalism offered by the staff.
STEP 2: Shop for experience and quality rather than price
The experience and certifications of the technicians in a well established shop can save you money even if the shop's labor rate is higher because they likely can complete the task more efficiently and may perform a higher quality repair that will last longer and provide far better serviceability.
STEP 3: Do not self diagnosis - it can be costly
Auto technicians are a lot like doctors. They first have to diagnose the problem before they can recommend the proper repair. When customers self diagnose or take the word of a well meaning friend or relative as to what's wrong they are likely to call and ask only for the price of the repair. If the diagnosis isn't accurate they may wind up paying for repairs they don't need which is the worst possible scenario.
Step 4: Get a free diagnostic check by certified technicians before asking about price
In auto repair, asking for a price indicates that you already know you need the repairs even if no one has yet diagnosed the problem and told you for sure. For example: If you call and say, "How much for a transmission for my 1996 Explorer?" you are indicating that you know you need a transmission, even if you really don't. You may need something far less expensive; a minor repair or maintenance service. The best shops, the ones that will ultimately save you the most money, will not give a price before performing some type of free diagnostic check because they don't want you to buy unnecessary repairs. They will invite you to bring the vehicle in to be road tested and inspected. Some will even tow it in for no charge if it isn't drivable or if you are concerned whether or not it will make it to the shop.
Step 5: Build your trust and in a repair shop
Once you receive a diagnosis and price, you need to feel like you are putting vehicle in good hands. Make sure the service manager you are working with is providing clear and accurate estimates. Be comfortable with the level of professionalism you are receiving before the job begins. It should be a good indicator of your experience throughout the repair process. It may even be a good idea to research the automotive repair shop's website and read through testimonials. Look for certifications and inquire about the experience of the staff.
If you follow the steps outlined above, it will put YOU in the driver's seat when choosing the right automotive repair facility. Be sure you are getting a high quality repair for the right price. It will save you money in the long run!
If they diagnose properly, don't over or under sell the repairs, and keep their promises to customers, they will likely earn a good reputation. If, on the other hand, they allow customers or others to make the diagnosis for them, do not recommend the proper repairs and services, under or overcharge in an effort to make up for their shortcomings, and don't do what they said they would, customers will stop coming and tell others to do the same.
STEP 1: Ask Around
Have your friends, family or co-workers had a vehicle repaired or serviced lately? What was their experience with the shop they chose? Would they recommend it? If not; why not? Keep in mind that most people really don't want to spend anything to fix a car. Ask about their overall experience and the level of professionalism offered by the staff.
STEP 2: Shop for experience and quality rather than price
The experience and certifications of the technicians in a well established shop can save you money even if the shop's labor rate is higher because they likely can complete the task more efficiently and may perform a higher quality repair that will last longer and provide far better serviceability.
STEP 3: Do not self diagnosis - it can be costly
Auto technicians are a lot like doctors. They first have to diagnose the problem before they can recommend the proper repair. When customers self diagnose or take the word of a well meaning friend or relative as to what's wrong they are likely to call and ask only for the price of the repair. If the diagnosis isn't accurate they may wind up paying for repairs they don't need which is the worst possible scenario.
Step 4: Get a free diagnostic check by certified technicians before asking about price
In auto repair, asking for a price indicates that you already know you need the repairs even if no one has yet diagnosed the problem and told you for sure. For example: If you call and say, "How much for a transmission for my 1996 Explorer?" you are indicating that you know you need a transmission, even if you really don't. You may need something far less expensive; a minor repair or maintenance service. The best shops, the ones that will ultimately save you the most money, will not give a price before performing some type of free diagnostic check because they don't want you to buy unnecessary repairs. They will invite you to bring the vehicle in to be road tested and inspected. Some will even tow it in for no charge if it isn't drivable or if you are concerned whether or not it will make it to the shop.
Step 5: Build your trust and in a repair shop
Once you receive a diagnosis and price, you need to feel like you are putting vehicle in good hands. Make sure the service manager you are working with is providing clear and accurate estimates. Be comfortable with the level of professionalism you are receiving before the job begins. It should be a good indicator of your experience throughout the repair process. It may even be a good idea to research the automotive repair shop's website and read through testimonials. Look for certifications and inquire about the experience of the staff.
If you follow the steps outlined above, it will put YOU in the driver's seat when choosing the right automotive repair facility. Be sure you are getting a high quality repair for the right price. It will save you money in the long run!
Monday, July 27, 2009
Used Car Inspection: The Transmission
To begin the car inspection start by checking the automatic transmission fluid. Place your car on a level surface. Start the engine. Place the transmission in P position. While the engine idles, pull out the transmission dipstick. The transmission fluid on the dipstick should be red when the transmission is in good shape. The more brown it is the worse the transmission is.
The fluid in a good transmission will not have a burnt smell. The fluid should be a transparent red color. Good transmissions will have fairly clean red transmission fluid. Transmission fluid that is brown with a burnt smell indicates transmission internal problems.
You have to drive the car to do the last part of the inspection. What you are looking for is a delay in the engaging of the transmission when it is shifted into drive or shifting between gears. The engaging of the transmission should feel soft and smooth, not metallic or hard.
To check for this start the car. Leave the transmission in P. While your foot is on the brake, shift to the R position. You should feel the transmission engage almost immediately. This should happen very smoothly, not hard or grabby. It should feel like the car wants to roll backward.
While stopped and with you foot still on the brake shift to N, and the transmission should disengage easily. Again with your foot on the brake shift to D. The transmission should engage quickly. It will feel like the car wants to roll forward. This also should be soft without a hard or metallic sound.
If there is a long delay (more than 1 second) between the moment you move the shift level and the transmission engages, this transmission either has some problem or is worn out. Either way, it won’t get better with time only worse, and a transmission repair or replacement is always expensive. It would be good to skip this car.
Manual Transmission
To begin the car inspection you will need to road test the manual transmission. Test each gear. All gears should shift smoothly, easily and silently. While driving in second and third gear, accelerate. If you feel slipping (the vehicle speed remains the same while engine speed increases), the clutch linings are worn and need replacement.
While driving, slow down using the engine and no brakes. There should be no humming or whining noise when accelerating. Good manual transmissions are very quiet. Shifting into each gear should be easy and silent. The transmission should not grind when shifting into reverse.
This article is by Jerry Rowan. Jerry provides information about car buying, selling. About to buy a new or used car? About to sell a used car? You will find information on how to make the transaction as painless as possible at buy-sell-car-like-pro.com
Visit Lee Myles Flushing New York for:
Transmission Services
The fluid in a good transmission will not have a burnt smell. The fluid should be a transparent red color. Good transmissions will have fairly clean red transmission fluid. Transmission fluid that is brown with a burnt smell indicates transmission internal problems.
You have to drive the car to do the last part of the inspection. What you are looking for is a delay in the engaging of the transmission when it is shifted into drive or shifting between gears. The engaging of the transmission should feel soft and smooth, not metallic or hard.
To check for this start the car. Leave the transmission in P. While your foot is on the brake, shift to the R position. You should feel the transmission engage almost immediately. This should happen very smoothly, not hard or grabby. It should feel like the car wants to roll backward.
While stopped and with you foot still on the brake shift to N, and the transmission should disengage easily. Again with your foot on the brake shift to D. The transmission should engage quickly. It will feel like the car wants to roll forward. This also should be soft without a hard or metallic sound.
If there is a long delay (more than 1 second) between the moment you move the shift level and the transmission engages, this transmission either has some problem or is worn out. Either way, it won’t get better with time only worse, and a transmission repair or replacement is always expensive. It would be good to skip this car.
Manual Transmission
To begin the car inspection you will need to road test the manual transmission. Test each gear. All gears should shift smoothly, easily and silently. While driving in second and third gear, accelerate. If you feel slipping (the vehicle speed remains the same while engine speed increases), the clutch linings are worn and need replacement.
While driving, slow down using the engine and no brakes. There should be no humming or whining noise when accelerating. Good manual transmissions are very quiet. Shifting into each gear should be easy and silent. The transmission should not grind when shifting into reverse.
This article is by Jerry Rowan. Jerry provides information about car buying, selling. About to buy a new or used car? About to sell a used car? You will find information on how to make the transaction as painless as possible at buy-sell-car-like-pro.com
Visit Lee Myles Flushing New York for:
Transmission Services
Wednesday, July 1, 2009
Accurate Transmission Diagnosis Can Put Money Back in Your Pocket
Although automatic transmission problems will take several forms, consumers, as well as general mechanics, often misdiagnose them. Many think that whenever a transmission exhibits any symptoms at all, such as: slipping, banging, hard or soft shifts, or fluid leaks, it must be replaced with a new or rebuilt (remanufactured) one. This is not necessarily the case. Many can be repaired for far less than the cost of a replacement, a certified transmission specialist needs to be consulted.
Since we know that no one wants to purchase a transmission if it were to turn out they didn’t need one, an expert transmission technician with the proper diagnostic equipment must be consulted. A systematic check by a professional is the only way to establish the real cause of operating problems and their solutions.
Each symptom may have a number of possible causes; many requiring no more than a minor adjustment or repair. A problem with the vehicle’s on-board computer or sensors can produce symptoms that lead the uninformed to believe the vehicle is in need of a transmission when, in actuality, it needs a far less expensive electrical component.
If your vehicle exhibits any of the following symptoms, a professional diagnosis is the next logical step before a commitment is made to spending a lot of money on what could prove to be unnecessary repairs.
1. A "Check Engine" or "Service Engine Soon" light is shining on the dashboard.
2. Fresh Fluid Stains Under the Vehicle.
3. Strange noises of any kind.
4. Vehicle has Lack of Power. You get no surge of power when you press the pedal to the floor.
5. Delayed Engagement in drive or reverse when the vehicle is cold. Vehicle won't move or shifts late during the first few minutes of operation.
6. No Engagement in Drive or Reverse. You place the shift lever in drive or reverse and nothing happens. Even racing the engine won't move the vehicle.
7. Slippage. Engine races but vehicle moves slowly or won't accelerate as it should.
8. Rough Shifting, Clunking into Gear. Noise or harsh feeling when transmission is placed in gear or when it shifts from one gear to another.
9. The Shift handle is hard to move or doesn't point to the proper range.
10. The Shift indicator must be slightly off P or N to start car.
11. An odor coming from under the hood or underneath the vehicle.
Many of the above are minor difficulties that can be easily cured. Only a transmission professional will know for sure, and only after a diagnostic procedure has been performed. Should you experience any of these, contact a certified transmission technician and allow him or her to go through a complete diagnostic check before committing to any sizeable investment.
Since we know that no one wants to purchase a transmission if it were to turn out they didn’t need one, an expert transmission technician with the proper diagnostic equipment must be consulted. A systematic check by a professional is the only way to establish the real cause of operating problems and their solutions.
Each symptom may have a number of possible causes; many requiring no more than a minor adjustment or repair. A problem with the vehicle’s on-board computer or sensors can produce symptoms that lead the uninformed to believe the vehicle is in need of a transmission when, in actuality, it needs a far less expensive electrical component.
If your vehicle exhibits any of the following symptoms, a professional diagnosis is the next logical step before a commitment is made to spending a lot of money on what could prove to be unnecessary repairs.
1. A "Check Engine" or "Service Engine Soon" light is shining on the dashboard.
2. Fresh Fluid Stains Under the Vehicle.
3. Strange noises of any kind.
4. Vehicle has Lack of Power. You get no surge of power when you press the pedal to the floor.
5. Delayed Engagement in drive or reverse when the vehicle is cold. Vehicle won't move or shifts late during the first few minutes of operation.
6. No Engagement in Drive or Reverse. You place the shift lever in drive or reverse and nothing happens. Even racing the engine won't move the vehicle.
7. Slippage. Engine races but vehicle moves slowly or won't accelerate as it should.
8. Rough Shifting, Clunking into Gear. Noise or harsh feeling when transmission is placed in gear or when it shifts from one gear to another.
9. The Shift handle is hard to move or doesn't point to the proper range.
10. The Shift indicator must be slightly off P or N to start car.
11. An odor coming from under the hood or underneath the vehicle.
Many of the above are minor difficulties that can be easily cured. Only a transmission professional will know for sure, and only after a diagnostic procedure has been performed. Should you experience any of these, contact a certified transmission technician and allow him or her to go through a complete diagnostic check before committing to any sizeable investment.
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