Vehicle Classics

Getting An Auto Loan In The Current Economic Crisis

It seems as if each new day brings more bad news on the economic front. As you know, the financial crisis has tightened credit markets. To auto dealerships, that means lower sales. To consumers, it means that it can be difficult to get a car loan. But, it’s important to realize that the credit markets are not completely closed. You can borrow money to purchase a new vehicle. In this article, I’ll describe the current state of the auto industry in the context of how hard it is to get an attractive car loan.

Understanding Automakers’ Willingness

It may be hard to tell from watching the news, but automakers are eager – even desperate – to find prospective buyers for their vehicles; and they’re willing to offer financing terms for buyers with a reasonable credit score. In fact, because dealerships are in financial dire straits, a lot of them have begun offering attractive incentives in order to move their inventories. If your credit is good, now may be the most opportune time in years to purchase a new model.

Current Financing Rates

As you would expect, interest rates on auto loans are heavily dependent upon your credit score. Rates always change, so the numbers I’m providing are likely to move up and down. That said, I’ve been noticing that financing rates plummeting over the last few months.

If you’re in the top bracket with a credit score above 720, you should be able to find bank-supported auto financing at less than 6.7% If you’re at a credit union, you might be able to secure a rate below 6%. Once your score dips below 670, rates start moving up significantly. For example, a car loan with a 60-month term at your bank might be set at 11% (credit union financing might be set at 9%).

The Trend Against Leasing

In the past, millions of people considered leasing a vehicle rather than purchasing one. You could count on getting more for your dollar through a lease. However, the current economic climate has had an unanticipated effect on the auto leasing market: it has become much tighter. Most of the automakers have begun to restrict the number of cars they make available for leasing. Those people who have become accustomed to driving vehicles they couldn’t afford to buy have little choice but to downsize their expectations to fit their budget.

The important point is that it is still possible to secure financing for a new vehicle. Despite the prolonged lull in consumer confidence and the recent challenges in the credit market, you can get a car loan. The key is making sure that you’re creditworthy and then approaching the dealer or your bank. For a lot of consumers, the current financial crisis may be the perfect time to get an attractive deal on a new car.

Vehicle Classics

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Protecting Your Car From Catalytic Converter Theft

Even though your vehicle’s exhaust system performs an important job, few drivers give it much thought until one of the parts fails. Your muffler, sensors, manifold, and tailpipe are all susceptible to failure, but can continue doing their respective jobs for years. A new trend has emerged over the past few years which is driving motorists to their local repair garages. Catalytic converters have become the popular target of thieves.

Below, I’ll explain why this component has become a favorite item for the unscrupulous. We’ll also take a look at who is most vulnerable to having it stolen. Lastly, I’ll provide a few tips for minimizing the danger.

Why Thieves Steal This Component

Catalytic converters are manufactured from a variety of materials. Among them are precious metals such as rhodium and palladium. In the same way that gold prices fluctuate, so too, do the prices for an ounce of rhodium and palladium. For example, an ounce of platinum (another precious metal found in this part) often commands prices above $1,000 an ounce.

Thieves realize this. They know that stripping this part can fetch up to $150 from scrapyards and $300 from various metal buyers. What’s more, with a few tools (i.e. a pry bar, reciprocating saw, and a sturdy jack), stealing it can be accomplished quickly and easily. With little risk and a potentially high financial reward, thieves are swiping them from vehicles in broad daylight. Unfortunately, replacing a single catalytic converter can cost several hundreds of dollars.

Who Is At Risk?

Every vehicle is at risk, especially those which use more than one catalytic converter. That said, SUVs and trucks tend to be targeted more often by bandits. The reason is twofold. First, SUVs and trucks are often higher off the ground than sedans. Second, the parts and systems are often less crowded. As a result, there is more room for thieves to maneuver under the vehicle which makes it easier for them to strip the cat.

It’s worth emphasizing that although trucks and SUVs are targeted more often, it is relatively easy to remove this part from any vehicle, even sedans.

How To Prevent Theft

There’s no foolproof way to secure a catalytic converter and rebuff every attempt to steal it. But, there are preventative steps you can take to make your car, truck, or SUV a less appealing target for bandits. For example, try to park your vehicle in a garage overnight. When you’re forced to park outside, try to do so in an area that has plenty of light and traffic. A thief is less likely to spend a few minutes under your car if he (or she) is exposed to other drivers. Also, consider investing in an alarm system that is triggered through a shock or motion sensor.

As long as catalytic converters are manufactured with precious metals and are easy to remove, they will be the target of thieves. By taking a few preventative measures, you can help ensure your cat stays attached to your vehicle.

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How To Find An Auto Repair Garage You Can Trust

As cars, trucks, and SUVs continue to evolve, problems become more difficult to troubleshoot and repair. Worn brake pads can be easily replaced. So too, can a failing alternator, fuel pump, or catalytic converter. However, unless you have advanced tools and plenty of experience, other systems such as your engine, transmission, and air conditioner need the expertise of a trained mechanic. The challenge is finding a mechanic – and by extension, a repair shop – you can trust.

This article will provide a blueprint you can use to find a trustworthy, reliable repair garage when components begin to fail. Now’s the time to begin your search – before your vehicle breaks down. Below, you’ll learn the value of looking for specific affiliations as well as the importance of talking to a shop’s customers. We’ll also take a look at finding a specialist for certain types of repairs.

Noteworthy Memberships And Affiliations

Independent garages can become affiliated with one or more associations if they meet certain qualification standards. These organizations include the American Auto Association (AAA), NAPA Autocare, and Tech-Net. Each organization has their own set of standards which they require members to meet.

For example, AAA requires member facilities to have relatively advanced equipment on-site as well as technicians who have completed certain types of training. They also routinely survey recent customers of each member facility. Customers are asked whether the garage offered a warranty on their work, if the work was completed in a timely manner, and if the estimate was close to the final bill.

When you visit an auto garage, look for memberships in these type of associations. They suggest a high level of service and reliability.

Talk To The Customers

Few people who visit a garage for the first time take the opportunity to ask other customers about their experiences. Doing so can yield valuable insight about the shop. For instance, ask other car owners why they bring their vehicles to the garage. If others mentions that their cars are always fixed correctly the first time, that should give you a level of trust in the proficiency of the technicians.

You might also hear that the repair shop’s estimates are always accurate or that they always complete the work in the timeframe given. These responses too, should make you feel more comfortable entrusting your vehicle to the mechanics.

When You Need A Specialist

Some types of work should be performed by a specialist. For example, engine and transmission problems are best handled by technicians who fix those assemblies on a daily basis. A lot of independent facilities will be happy to work on complex problems, but their technicians may lack the skills needed to do the job correctly. You might have to pay a little more for a specialist’s expertise, but the investment is worthwhile. Not only can they resolve issues more efficiently, but the quality of their work will likely be higher.

Finding a trustworthy auto repair shop is simpler than it seems. The key is to look for professional affiliations, talk to customers, and start looking before your vehicle begins to have problems.

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