Top 20 Used Cars to Avoid: Consumer Reports » News #vintage #auto #parts


#used suvs
#

Top 20 Used Cars to Avoid: Consumer Reports

20. BMW 7-Series

In the market and shopping for a used car? Consumer Reports has released a list of 20 used vehicles to stay away from as they have a reputation for causing trouble. Listed is a top 20 list of used cars from 2003 to 2012 model year to avoid in alphabetical order. These vehicles had multiple years of much-worse-than-average overall reliability, according to Consumer Reports Annual Auto Survey.

The BMW 7-Series may be the German automaker s luxury flagship, but used models aren t without their issues. From 2001-2008, the 7-Series featured the good ol Bangle Butt and sported some highly controversial styling. Early production of that generation was overwhelmed with issues even causing BMW to purchase back some of the vehicles back in 2002-2003. BMW of North America even extended its warranty on all 2002-2003 model year 7-Series vehicles to six years/100,000 miles from the original four years/50,000 miles.

According to Consumer Reports. the BMW 7-Series ranked worse in the categories of Engine Major, Engine Minor, Transmission Major, Transmission Minor, Body Hardware, and Audio System.


Guide To Auto Auctions, Used Car Auction Scams To Avoid #auto #loan #calculators


#used car auctions
#

Tips for Buying Cars at Auction and Avoiding Scams

Last Modified: April 26, 2015 by Jeff Ostroff | Originally Published December 14, 2001

We’ll cover the various types of auctions, explain the pros and cons and talk about the scams you may find. We’ll teach you how to spot a damaged, totaled or flooded vehicle. You may ask yourself should I try to buy a car at auction? We’ll help you answer that question. We’ll cover online auctions like eBay Motors and the old school auctions like Manheim, Police Seizure and Salvage Auctions.

Every Man for Himself is the Rule of Any Auction

Some auctions offer to guarantee the engine, frame and body for 30 days for a fee. You should keep the saying Buyer Beware in your head at all times when you are at an auction. You can’t take the car to be checked out by a mechanic and the vehicles are usually sold As Is with no warranty. All deals are final unless the title turns out to be fraudulent. Don’t pay attention to any verbal promises, they don’t mean anything. You don’t want to be in a situation where it is word against theirs because they always win. Always assume the worst case at an auction.

When Buying at Auctions You Must:

  1. Get a vehicle history report! You need to know the car’s history. An AutoCheck Report is one of the most useful tools to use to protect yourself against fraud. Find out more in our complete Vehicle History Report chapter .
  2. After you win a car at auction, get an extended warranty. Read our complete section on buying an extended warranty. We’ll review high quality warranty providers like CARCHEX and WarrantyDirect .

Don’t think that Your Bid is the Price You Pay!

You must be extremely cautious when looking for cars at an auction. This venue is where you are most likely to encounter junked, flooded and rebuilt cars.


Auto Financing: Practices To Avoid in Your Next Auto Loan #auto #insurance #canada


#auto financing
#

Fast Facts–Auto Financing

What Are The Problems?

Predatory practices in auto financing force consumers to struggle not only for a competitive and affordable car loan, but for a fair and honest one. Finding a good deal is often not based on the quality of the car or the creditworthiness of the consumer, but rather the consumer s ability to survive a financial shell game with one of the largest investments most people will ever make.

Some known abuses include:

Auto loan markups. Also known as dealer reserves, auto loan markups involve kickbacks from third-party lenders to auto dealers for steering car buyers into loans with subjectively higher interest rates. This practice alone adds $25.8 billion in hidden interest over the lives of many car loans.

Yo-Yo sales. Also known as spot deliveries or conditional sales, Yo-yo sales are deals where the financing is not finalized until after the consumer has already taken the new vehicle home from the dealership. The sale becomes abusive when the dealer calls the consumer back to the lot to sign a new loan with a higher interest rate or other abusive charges.

Loan packing. The practice by which dealers add various types of aftermarket, “add-on” products that are usually unnecessary and overpriced in order to increase the price of the vehicle or the amount financed.

“Buy Here, Pay Here” dealerships. These dealers typically finance used auto loans in-house to consumers with no or poor credit histories. The average APR is much higher than a bank or credit union loan. These dealers use their higher default and repossession rates to operate much like payday lenders; churning the same used vehicle several times as the basis for their abusive business model.


How to finance a used car and avoid scams #used #cars #online


#used car auto loans
#

Used Car Loan Tips

Last Modified: April 23, 2015 by Jeff Ostroff | Originally Published March 8, 2005

A used car loan is a little bit different than financing a new car.

  • Most lenders will not lend you money for a used car that is more than 4 or 5 years old
  • Lenders charge at least 2% higher APR than they do for new car loans
  • Online lenders have a lower premium on used car loans
  • Private party and dealer transactions are handled differently
  • In some cases you may be forced into dealer financing

Never Pay Cash for a Deposit on a Car

You may be wondering why I put this advice so high on the page. I think it’s very important to alert you about this since most people don’t ever think about it. If the deal goes south, you’ll never get your cash back, but you can always dispute a credit card transaction. Most dealers are reasonable, but you don’t want to risk putting yourself in this position. Why take the risk when it is so easy to avoid?

There are two different types of used transactions. The first is when buying from a dealer. The other is when you purchase from a private party. Depending on which route you take, there are different financing options available. Some lenders will not finance a private party transaction.

If You Plan to Purchase From a Dealer

It is easier to get a used car loan if you are buying from a dealer. It doesn’t matter if it is a dedicated used car dealership or a dealer that has a used car department. Banks see less risk in this type of lending. Therefore, you will have more options when financing a used car. The online lenders we recommend below will generally beat the dealer’s rates.

If You Plan to Purchase From a Private Party

Lenders see more risk when you buy from private party. Buying from a private party will usually get you a better price, but it will be much more difficult to get a used car loan. In addition you will be paying a higher interest rate. LightStream (a division of SunTrust bank) is one of the few online lenders that provides used car loans when buying from a private party.

Which site should you use? First make sure your credit score is at least 680, then as a prime borrower, you can choose by who has the lowest APR. People with bad credit pay higher interest rates. Get your credit report instantly online, it’s a must for The Folder. DO NOT apply for a car loan until you get your credit report with credit score. Get it online at one of the big three bureaus. If your credit score is less than 680 Auto Credit Express may be your best option.

Credit Bureaus:

  • Experian.com – Owned by the Experian credit bureau.
    • You get your 3 credit reports
    • 3 scores by Experian instantly online
    • With enrollment in Experian.com
  • TransUnion – One of the big three credit bureaus.

Best Used Loan Sites

Up2Drive (a division of BMW Bank of North America) offers highly competitive rates and superior customer service.

  • Up2Drive financing is not available to first time car buyers.
  • Once approved, Up2Drive will send you a Drive Check .
  • The Drive Check works similar to a personal check and can be used for Refinance or Dealer New/Used car purchases.
  • You can negotiate the sale price of a vehicle as if you have cash on hand.
  • Check today’s online auto loan rates
  • Lock your rate for 30 days.
  • Never an application fee.

LightStream is the online lending division of SunTrust Banks Inc. They offer low interest, unsecured loans for highly qualified customers. LightStream offers “The AnythingLoan” which can be used to finance new or used, private party or dealer, they have you covered!

  • LightStream delivers a revolutionary loan process
  • Low interest rate unsecured loans for highly qualified customers

– Minimum FICO credit score of 700 required to qualify

– A substantial, excellent credit history is a must

  • LightStream offers their unique “Customer Experience Guarantee”
  • Receive funds as soon as the same day of your application on banking business days
  • LightStream loans can be used for new or used cars, private party or dealer
  • LightStream does not charge any fees of any kind!
  • Auto Credit Express is designed for people with poor credit. Auto Credit Express requires you to have a monthly income of $1,500.00 or more and be able to obtain auto insurance.

    Auto financing for people with lesser credit: If your Credit Score is below 650 and you’re rejected, don’t submit apps that keep getting you rejected. Submit one free application to a bad credit auto loan site like Auto Credit Express.

    • They can find financing from high risk underwriters. Even if you have a discharged bankruptcy, tax liens or bad credit.
    • If your credit score is 550 or above, your chances are good, also you should full time employment.
    • If you have good credit but get rejected elsewhere for no car loan history.

    Additional Tips

    Make sure you know the car’s history

    Before you even think about financing a used car, you need to run an AutoCheck Report and have a certified mechanic inspect the car. If you don’t do both of these, and you end up getting screwed, don’t email me. You have been warned. Learn more in our Vehicle History Report article .

    Get An Extended Warranty for your used Car


    Common Selling Pitfalls to Avoid – Adviser: Car Advice on How to Sell a Car #detroit #auto #show


    #selling a car
    #

    Common Selling Pitfalls to Avoid

    There’s no perfect way to sell a car—no magic formula that will guarantee you your asking price from a responsible buyer in a timely manner. Instead, selling your car involves making a long series of decisions that will vary based on your car, your location, and many other factors. And a little bit of luck never hurts.

    But even though there’s no guaranteed blueprint for a quick and easy sale, there are lots of things you can avoid that will turn buyers off and make the process harder overall. Here’s a quick list of ten wrong turns you can take during the process of listing, selling and closing the deal:

    Unrealistic Expectations: If you go into the process thinking your car will sell overnight, you may end up disappointed. Of course, buyers will be quick to pounce on any vehicle that seems like a steal, but if you’ve priced your car in the average to high range, it may take longer to sell. So, set your expectations accordingly—the average used car spends several weeks online before the right buyer comes along.

    Incomplete Description: Take full advantage of the Vehicle Description area on your ad by telling the story of your car. Why are you selling? How many owners has the car had? Being up front and honest about these details makes a positive first impression on buyers.

    Low Quality Photos, or Not Enough: Uploading photos with your ad is a must, but that’s not the end of the story. Buyers like to see detailed photos of the car from various angles, to make sure there are no surprises when they come see it in person.

    Slow or Unfriendly Response to Inquiries: Tye Frazier, AutoTrader.com Customer Adviser, recommends channeling your inner salesman. “Make sure that when you get a call, you’re eager to talk to folks,” he says. “Always sell the car to every caller. Even if you have ten calls in a row, you could be talking to the one person who wants to buy the car.”

    Inflexibility: This could mean inflexibility with regard to price, going to meet a buyer for a test drive, or any other related issue. In the end, your asking price is entirely up to you, but most buyers will expect you to work with them.

    Dishonesty about Price or Vehicle Condition: Nothing turns buyers off faster than thinking a seller is dishonest. All buyers know about your vehicle is what they see in your ad, so if you quote them a different price or if they see something that was inaccurately depicted in the ad, they will be immediately suspicious. From there, negotiations can quickly fizzle.

    Lack of Knowledge about Your Car: To sell successfully, you have to be an expert on your car. Anticipate the questions you’ll receive and be ready with quick, knowledgeable answers. This will instill confidence in the buyer and also help you at the negotiation table. According to Frazier, “You have to stick to what your price is by sticking to the facts. You have to know what your car is worth and why.”

    Dirt and Grime: Your car’s outward appearance makes a big difference. Buyers will be impressed if you get your car looking its best . but beyond that, a dirty car might make a buyer think that it has been improperly maintained in other ways.

    Incomplete Paperwork: A buyer will be pleasantly surprised and reassured to see that you have all your paperwork in order, especially if your car has had any major repairs in the past. Again, even if you’re not actively trying to be deceptive, a buyer may think you are if you can’t fill in all the blanks of your car’s history.

    Fraud: Perhaps the worst pitfall of all is dealing with a dishonest buyer. There are many schemes out there, and awareness is the best defense against them. Find out what you need to know to avoid internet fraud .

    Andrew Golaszewski is a staff writer at AutoTrader.com.


    Top 5 Biggest Mistakes to Avoid When Buying a Car #used #cars #online


    #buying a car
    #

    Top 5 Biggest Mistakes to Avoid When Buying a Car

    Continue Reading Below

    5 Car Buying Mistakes to Avoid

    When you re in the market for a new vehicle, the best thing you can do for yourself is be prepared. So here are the 5 biggest mistakes to avoid when purchasing your next vehicle:

    1. Thinking in terms of monthly payment. Not very many people walk into a car dealership and plan on writing a check or paying cash for their vehicle, and the salespeople know this. In fact, many of them rely on this fact in their sales pitch. This also explains why the negotiation almost always revolves around how much you can afford to pay for the car each month. But focusing on a monthly budget is by far the easiest way to spend too much on your next vehicle. When negotiating a price, the dealer can do a number of things to make almost any vehicle fit your budget. They can do this by adjusting interest on the interest rate. offer you a longer term on the loan, or restructure the financing in a way that creates a payment that fits into your budget. It may not seem like a big deal, but even a few extra percentage points or an additional year on the loan can add thousands of dollars to the total cost of the vehicle. When the average car payment in the U.S. has been between $471 and $482 per month for the last few years, it s worth looking at what that money is actually getting you.
    1. Buying new versus used. A vehicle is not an investment – at least not a good one. Vehicles depreciate in value quickly, so when you buy a new vehicle, you can expect it to continuously decrease in value from the moment you take ownership. In fact, a new car typically decreases in value by 25%-40% in the first two years. The best thing you can do is to let someone else take the initial 40% hit by buying a slightly used vehicle that is a year or two old.

    Years ago, there was a good reason to buy new and that was for the warranty. Today, most vehicles have longer warranties that can still be in effect even if you buy a car that is a few years old. Additionally, you can often opt to purchase an extended warranty, which is typically far cheaper than the value the car lost in the first year or two.

    Continue Reading Below

    1. Choosing the wrong vehicle. Are you a single person who needs a vehicle just to get you to and from work every day? Then you probably don’t need that $45,000 SUV that seats eight and can tow 5,000 pounds. You want a vehicle that meets your specific needs. Sure, there are a lot of cars and trucks out there that will turn heads, but keep in mind that many of these will come at a premium.
  • Not taking into consideration other costs. The actual cost of the vehicle is important, but what is often overlooked are all of the hidden long-term maintenance and insurance costs that go along with a vehicle. Keep in mind that car insurance premiums typically increase with the value of a vehicle, so buying a more expensive vehicle will increase your annual insurance costs. This can amount to hundreds, if not a thousand dollars or more per year.

    In addition to insurance, you have to take into account all of the maintenance costs. Vehicles need oil changes, new brakes, air filters, tires, and much more. Luxury or performance models are generally going to require higher end replacement parts that can cost much more than their standard counterpart.

    Finally, you need to consider gas consumption. The average person will drive between 10,000 and 15,000 miles per year. A vehicle that gets an average of 30 miles per gallon with today’s gas prices. you can expect to spend between $1,000 and $1,500 per year on gas alone. Now, consider a vehicle that only gets about 15 miles per gallon. Now you’re spending $2,000 and $3,000 each year.

    When you think about it, by the time you factor in gas, oil changes. insurance and regular maintenance, you can expect to spend $3,000 to $5,000 in addition to your monthly car payment each year!

  • Putting $0 down. There are a lot of incentives when it comes to buying a car, and you can often put yourself in a brand new vehicle of your choice with no money down. Sounds great, right? Not so fast. Remember, vehicles depreciate rapidly, so if you finance the full purchase price, you often find yourself upside down on the loan immediately.

    Being upside down simply means that you owe more than the car is worth. Remember, there are taxes and other fees that go into a new car purchase, and they are typically rolled into the loan if you don’t put anything down. That means as soon as you drive it off the lot, you owe more money to the bank or dealership than the vehicle is actually worth.

    This is a very bad idea if you intend on selling or trading the car in before the loan is paid off. If after three years you need to get a new vehicle and you owe $10,000 while the car is only worth $8,000, you will have to either pay $2,000 out of your pocket, or finance that into your new loan. It may feel good to walk out of the dealership with a brand new car without having to fork over a dime up front, but it will cost you.

    Want more tips for saving money? Sign up for the Money newsletter  and get insights from our personal finance experts, delivered straight to your inbox.


  • Top 20 Used Cars to Avoid: Consumer Reports » News #auto #electrician


    #used suvs
    #

    Top 20 Used Cars to Avoid: Consumer Reports

    20. BMW 7-Series

    In the market and shopping for a used car? Consumer Reports has released a list of 20 used vehicles to stay away from as they have a reputation for causing trouble. Listed is a top 20 list of used cars from 2003 to 2012 model year to avoid in alphabetical order. These vehicles had multiple years of much-worse-than-average overall reliability, according to Consumer Reports Annual Auto Survey.

    The BMW 7-Series may be the German automaker s luxury flagship, but used models aren t without their issues. From 2001-2008, the 7-Series featured the good ol Bangle Butt and sported some highly controversial styling. Early production of that generation was overwhelmed with issues even causing BMW to purchase back some of the vehicles back in 2002-2003. BMW of North America even extended its warranty on all 2002-2003 model year 7-Series vehicles to six years/100,000 miles from the original four years/50,000 miles.

    According to Consumer Reports. the BMW 7-Series ranked worse in the categories of Engine Major, Engine Minor, Transmission Major, Transmission Minor, Body Hardware, and Audio System.


    Auto Financing: Practices To Avoid in Your Next Auto Loan #cars #for #sale #usa


    #auto financing
    #

    Fast Facts–Auto Financing

    What Are The Problems?

    Predatory practices in auto financing force consumers to struggle not only for a competitive and affordable car loan, but for a fair and honest one. Finding a good deal is often not based on the quality of the car or the creditworthiness of the consumer, but rather the consumer s ability to survive a financial shell game with one of the largest investments most people will ever make.

    Some known abuses include:

    Auto loan markups. Also known as dealer reserves, auto loan markups involve kickbacks from third-party lenders to auto dealers for steering car buyers into loans with subjectively higher interest rates. This practice alone adds $25.8 billion in hidden interest over the lives of many car loans.

    Yo-Yo sales. Also known as spot deliveries or conditional sales, Yo-yo sales are deals where the financing is not finalized until after the consumer has already taken the new vehicle home from the dealership. The sale becomes abusive when the dealer calls the consumer back to the lot to sign a new loan with a higher interest rate or other abusive charges.

    Loan packing. The practice by which dealers add various types of aftermarket, “add-on” products that are usually unnecessary and overpriced in order to increase the price of the vehicle or the amount financed.

    “Buy Here, Pay Here” dealerships. These dealers typically finance used auto loans in-house to consumers with no or poor credit histories. The average APR is much higher than a bank or credit union loan. These dealers use their higher default and repossession rates to operate much like payday lenders; churning the same used vehicle several times as the basis for their abusive business model.


    Used SUVs to Avoid #auto #finance #companies


    #used suv
    #

    Used SUVs to Avoid

    With the price of the all-mighty SUV starting in the $20K range and climbing to heights which most don’t even like to envision, finding an affordable one can be a task which decides whether your financial future lies on the positive side or the negative side. Getting an SUV lemon can drain your bank account, your patience, and your sanity. To preserve your mind, and your wallet, you’ll want to avoid these used SUVs, as judged by the professionals at Consumer Reports, Edmunds, Motor Trend, and J.D. Power Associates.

    The Range Rover’s reliability record is one of the most infamous in automotive history. Despite its 4-year/50,000-mile warranty, the Range Rover received only 5 out of 10 stars in the J.D. Power Associate’s reliability studies. All in all, the Rover is very comfortable, practical, and luxurious. The problem here is that you may hardly ever get to enjoy that luxury on the road. Unless you’re willing to spend all your time enjoying your vehicle from the repair shop window, avoid this one.

    The Range Rover has a horrible reputation for reliability, but at least it can offer some luxury. The Jeep Liberty possesses the best of neither world. It scored only 4 out of 10 in the J.D. Power reliability studies, and it is frowned upon by automotive experts for its disappointing interior materials quality, uncomfortable on-road ride, and mediocre performance in both power and handling. “Liberty has a more chiseled exterior but it drives much like the unrefined original, finishing last in a nine-SUV comparison test.” (Car and Driver)

    3. 2007-2009 Suzuki XL7

    Thankfully, the Suzuki XL7 was discontinued after the 2009 model year. It was another atrocity that scored a mere 5 out of 10 in the J.D. Power studies. Add to that the fact that Suzuki is miles behind Asian competitors with its 3-year/36,000-mile warranty (when Hyundai and Kia are at 5-year/60,000-mile) and you’ve got a vehicle to pass on even with a good price tag. The interior and exterior stylings are listed as mediocre, but effective. Still, the risk of breakdown is high, and the warranty low.

    For whatever reason, Dodge can’t seem to get the whole transmission thing together. The Nitro is just one of its latest victims to suffer from the Dodge tranny nightmares. “The Dodge Nitro has a macho name and a macho image, but that s about where its appeal ends. Just about any other compact crossover SUV would be a wiser purchase.” (Edmunds) It was also a winner of the mediocrity award with a score of 5 out of 10 in the J.D. Power reliability studies. Even though it has a nice, boxy style with a mean front end, the Nitro falls short in several areas.

    Rarely do you find luxury vehicles on lists of cars to avoid, but the Acura ZDX in these model years just isn’t appealing in any category, least of all reliability. The one good thing that can be said for it is that it scores high on the safety scale, and it still possesses all the comfort and elegance which gave Acura its name. However, it is a newer model line that suffers from newer model line problems. “Is it an overweight hatchback or a sporty SUV? In either case, the Acura ZDX is an automotive oddity that compromises in the wrong places. It possesses a cramped backseat, compromised cargo capacity, and unimpressive power from the V6 model.” (Edmunds)


    Guide To Auto Auctions, Used Car Auction Scams To Avoid #auto #auction #ny


    #used car auctions
    #

    Tips for Buying Cars at Auction and Avoiding Scams

    Last Modified: April 26, 2015 by Jeff Ostroff | Originally Published December 14, 2001

    We’ll cover the various types of auctions, explain the pros and cons and talk about the scams you may find. We’ll teach you how to spot a damaged, totaled or flooded vehicle. You may ask yourself should I try to buy a car at auction? We’ll help you answer that question. We’ll cover online auctions like eBay Motors and the old school auctions like Manheim, Police Seizure and Salvage Auctions.

    Every Man for Himself is the Rule of Any Auction

    Some auctions offer to guarantee the engine, frame and body for 30 days for a fee. You should keep the saying Buyer Beware in your head at all times when you are at an auction. You can’t take the car to be checked out by a mechanic and the vehicles are usually sold As Is with no warranty. All deals are final unless the title turns out to be fraudulent. Don’t pay attention to any verbal promises, they don’t mean anything. You don’t want to be in a situation where it is word against theirs because they always win. Always assume the worst case at an auction.

    When Buying at Auctions You Must:

    1. Get a vehicle history report! You need to know the car’s history. An AutoCheck Report is one of the most useful tools to use to protect yourself against fraud. Find out more in our complete Vehicle History Report chapter .
    2. After you win a car at auction, get an extended warranty. Read our complete section on buying an extended warranty. We’ll review high quality warranty providers like CARCHEX and WarrantyDirect .

    Don’t think that Your Bid is the Price You Pay!

    You must be extremely cautious when looking for cars at an auction. This venue is where you are most likely to encounter junked, flooded and rebuilt cars.