Best Car Pricing Tips
Best Car Pricing Tips, Warranty, Recalls and Lemon Laws Explained
Buying a car can be both exciting and challenging. Owning a car means – no waiting in queues, no asking people for favors and no postponing your travel plans due to unavailability of rental cars. However, the challenges are many. You need to negotiate the right price, get the best warranty, understand the Lemon Laws as well as keep yourself updated with the recalls to ensure you have a safe drive.
To help you understand every aspect of buying a new car, we will cover each of the above mentioned topics below:
- Car Pricing Tips
In order to get the best possible deal when buying a new car, car buyers must know how to negotiate the car price. The price that you finally agree upon will be something in between your opening bid and the competing bids from local dealerships. However, before visiting a dealership, you must do your homework so that you know where to start.
In order to get an idea, you can use the various car comparison tools offered by KBB, Edmunds, etc. You can also ask someone who is well versed with the auto industry. When placing your bid, consider the features you want in your car, so that you don’t place a very high or very low bid.
- Car Warranty
Car warranty is another important aspect to be considered. In most cases, the car dealerships will try to persuade you to buy an extended warranty, however you must think twice before purchasing it. A report by Consumer Reports suggests, about 55 percent of car owners who purchased the extended warranty never used it for repairs, even though the median price paid was a bit over $1,200.
An extended warranty is not even recommended if you are buying a used car. Most of the times, you will pay more for the warranty that what you will save on the repair costs.
The NHTSA, (National Highway and Traffic Safety Administration) is responsible for all kinds of investigation related to design and manufacturing defects in a particular make or model of the vehicles. Based on the complaints lodged by the car owners, the NHTSA would investigate the issues to determine whether the manufacturer or the consumers are at fault.
A recall is issued if the NHTSA finds it is the fault of the manufacturer and the defects are serious enough to compromise the safety of the drivers. In some cases, a manufacturer might also issue a recall (send official notice to owners) if they find a defect in the manufacturing or design process of a vehicle. The dealer service department then makes all the repairs free of cost, to restore the safety of the car.
- Lemon Laws
About one percent of new cars sold (150,000 cars) are lemons – this means the cars have repeated and un-fixable problems that compromise the safety of the vehicle. In order to empower the car purchasers, every state has enacted some kind of ‘Lemon Laws’ to help them get out of the fix.
In order to qualify as a lemon, the car must:
• have a serious defect covered by the warranty and it should have occurred within a certain period of time or number of miles after purchase of the car
• not be fixed after several repair attempts
The lemon laws vary by state and may not cover used or leased cars. SO take professional help, if you think your car qualifies to be a lemon.