Tuesday, 06 September 2011 06:16

Caution when buying vehicles, and GM's big mistake

Written by  Mark Burch
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chevyWhile the country, and even the world, continue to be mired in an economic crisis, people are still using great caution while making major purchases, particularly in the area of automobiles. We are keeping our cars, trucks, and SUV's longer, and avoiding car payments. While an automobile is a necessity for a majority of Americans, car payments are most certainly not.

Since so many of us are choosing to keep our vehicles longer, we must be careful to avoid imprudent purchases such as new cars, or cars that become an economic burden due to frequent and/or costly repairs. Purchasing brand-new vehicles continues to be a less than wise investment even with radically low interest rates. The problem is that new vehicles lose so much of their value the moment you drive off the lot. I have met so many people upside down on their balances that they are very discouraged when attempting to get out of debt. The overwhelming majority of people cannot justify the expense of buying a brand-new car. This includes hybrid cars. As a results, many of us are left to purchase used vehicles. This can be a great choice for many of us.

But what are the types of things that we need to look at? I would suggest reliability and even manufacturer support for starters. Recently, General Motors, aka Government Motors, now claims that it has no warranty responsibility for vehicles built prior to GM's bankruptcy filing in 2009. Responding to a lawsuit regarding warranty work for a vehicle built before reorganization, General Motors states that warrantees that were covered by the old General Motors prior to the bankruptcy filing in 2009 should no longer have to be honored because that entity of General Motors no longer exists. Now this is alarming on many fronts, Since the Obama administration had promised that warrantees would be honored and backed by the full faith and credit of the federal government. As a result of this action, you might need to reconsider purchasing GM and Chrysler vehicles built before their reorganization in 2009 if the manufacturers will not honor their warranties.

I also recommend that folks talk to a trusted mechanic to get some ideas about cars. I've been in discussions with friends in the past and maybe they like the VW, or a Volvo, or an Acura. But the problem is that while those cars are great performers and even fantastic cars, you may be in for a little bit of sticker shock once you have some repair work to be done. So it's a good idea to do some research. There are resources on the web that will tell you what the average annual maintenance costs, or even the lifetime maintenance costs of a vehicle can be. If you do find a vehicle locally, do be afraid to get it checked by a mechanic before you purchase it. You want to make sure that there are no surprises in store for you. The last thing you want is to wind up shelling out a lot of money afterwards on repairs. I know this first-hand.

Just understand that maintaining a car well, and not taking shortcuts will help you in the long run avoid needing to replace it too soon.

Last modified on Tuesday, 06 September 2011 06:18
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