Transcript Buying, Financing and Maintaining a Car

Buying, Financing and
Maintaining a Car
Presented by the
Delaware
Bankruptcy Inn
of Court
Presentation:
•
BASIC BUDGETING
•
BUYING A NEW CAR
•
BUYING A USED CAR
•
LEASING
•
WARRANTIES, SERVICE CONTRACTS & INSURANCE
•
FINANCING
•
REPOSSESSION
•
AUTO REPAIR
•
FUEL
Basic Budgeting
Basic Budgeting
•
THERE ARE THREE WAYS TO CHOOSE A CAR:
– Buy a new car 
• Most expensive.
• Lower maintenance costs.
• Longer-term financing with lower interest rate.
– Buy a used car 
• Less expensive.
• May require more maintenance.
• Shorter-term financing with higher interest rate.
– Lease a car 
• Monthly lease payments are generally lower than
monthly finance payments on the same vehicle.
• Cars are usually new and require minimal
maintenance.
• Once lease ends, lessee will have nothing.
•
YOUR CHOICE SHOULD BE BASED ON:
– Your personal needs; and
– What you can afford.
Basic Budgeting
•
YOUR PERSONAL NEEDS:
– Manual / Automatic
• Manual cars are less expensive and can get better
fuel economy, but can be harder to resell.
• Automatic cars may be better for driving in heavy
traffic.
– All-wheel / Front wheel
• All-wheel drive cars handle better in snowy weather.
• Front wheel drive cars get better fuel economy.
– Space
• Smaller cars get better fuel economy and are easier
to park.
• Larger cars may be better if you have multiple
passengers and / or carry cargo in your car.
– Pick a car based on your needs, not your wants.
Buying a New Car
Buying a New Car
• KEYS TO BUYING A NEW CAR:
– Know what you can afford.
– Know what you want in advance.
– Do your research.
– Negotiate.
– Trade-in tips.
– Know the language.
Buying a New Car
• DETERMINE HOW MUCH YOU CAN
AFFORD:
– Are your current monthly living expenses
covered?
– Can you afford to take on a new monthly
payment?
– Consider other financial goals or priorities.
• KNOW WHAT YOU WANT IN ADVANCE:
– Car model;
– Options;
– How much would you like to spend?
Buying a New Car
•
DO YOUR RESEARCH:
– Check publications / websites that discuss car
features and prices.
• Examples: Newspapers, Consumer Reports,
www.edmunds.com
– Compare models and prices in ads and at dealer
showrooms.
– Contact car-buying services to make
comparisons.
•
NEGOTIATE:
– Dealer profit margin is usually 10 – 20%.
– Order your car if it is not on the dealer’s lot to
avoid paying for extra options.
– OR negotiate a good deal on a car that is on the
lot if the dealer wants to get rid of inventory.
Buying a New Car
• TRADING IN YOUR OLD CAR:
– First, research the value of your old
car.
– Second, negotiate the best possible
price for your new car.
– Third, discuss the possibility of
trading in your old car.
– Remember:
• It may take you longer to sell your old
car yourself.
• However, you will generally get more
money for it than if you trade it in.
Buying a New Car
• TRADING IN YOUR OLD CAR:
– Beware of special promotions
advertising high trade-in allowances:
• Does the trade-in allowance apply to
all cars, regardless of their condition?
• Will the cost of the new car go up as
the trade-in allowance goes up?
• Does the dealer have cars in stock
that have no expensive options?
• Are the special offers available if you
order a car instead of buying one off
the lot?
• Read the fine print.
Buying a New Car
• NEW CAR LANGUAGE:
– Invoice Price  manufacturer’s initial
charge to the dealer; generally includes
freight.
– Base Price  cost of the car without
options, but includes standard equipment
and factory warranty.
– Monroney Sticker Price (MSRP)  label
affixed to car window that shows base
price, manufacturer’s installed options
with suggested retail price, manufacturer’s
transportation charge, and fuel economy
(mileage).
– Dealer Sticker Price  MSRP + suggested
retail price of dealer-installed options.
Buying a Used Car
Buying a Used Car
• KEYS TO BUYING A USED CAR:
– Follow many of the same steps you
would take when buying a new car:
• Determine what you can afford.
• Know what you want in advance.
• Do your research.
• Negotiate.
– Perform your own inspection and hire
an independent mechanic to perform
an inspection of the car.
– Familiarize yourself with the terms of
the Buyer’s Guide.
Buying a Used Car
• THINGS TO CONSIDER IN
YOUR RESEARCH:
– What are the crash test ratings?
– What do current owners have to
say about it?
– What is the annual maintenance
cost?
– What kind of warranty is still
available?
– What is the cost of yearly
insurance?
Buying a Used Car
• INSPECTION:
– Examine the car yourself using an
inspection checklist that can be
found online.
– Test drive the car under varied
road conditions.
– Ask for the car’s maintenance
record.
– Talk to the previous owner.
– Have the car inspected by a
mechanic you hire.
Buying a Used Car
• WHAT IS THE BUYER’S GUIDE?
– Informs buyers of important
information about the car.
– Becomes part of the sales
contract and overrides any
contrary provisions.
– Must reflect any negotiated
changes in warranty coverage.
– Dealers who sell 6 or more
cars per year are required to
post it in every used car they
offer for sale.
Buying a Used Car
• CONTENTS OF THE
BUYER’S GUIDE:
– What portion of the repair
cost will the dealer pay;
– What parts and systems
are covered by warranty;
– What is the warranty
length for each covered
system; and
– Is there a deductible, and if
so, how much?
Buying a Used Car
• PRIVATE, NON-DEALER SALES:
– Purchase is usually on an “as is” basis;
buyer must pay for any problems that
occur after the sale.
– Ask seller if you can have vehicle
inspected by your mechanic, either at
seller’s location or at mechanic’s shop.
– Use Buyer’s Guide’s list of car’s major
systems as a shopping tool.
– Ask to review car’s warranty or
service contract. Car may be covered
by manufacturer’s warranty or a
purchased service contract.
Buying a Used Car
• DEALER SALES: Types of Cars
– Pre-owned cars
– Program cars  low-mileage,
current-model-year vehicles
returned from short-term leases
or rentals
– Demonstrators  new cars that
have not been owned, leased, or
used as rentals, but have been
driven by dealer staff
Buying a Used Car
• DEALER SALES: RESEARCH
– Assess the dealer’s reputation
with friends and relatives, state
Attorney General, Better Business
Bureau, and Google searches.
– Ask about dealer’s return policy,
get it in writing, and read it
carefully.
– Review Buyer’s Guide posted in
every used car.
Leasing
Leasing
• LEASE vs. PURCHASE:
– No ownership.
– Monthly payments are usually lower.
– Annual mileage limits (usually 12,000
– 15,000).
– Lease terms are usually 2-4 years.
– At lease-end, you may return the car,
pay remaining costs, and walk away.
– Lessor bears the risk of the car’s
future market value.
– Auto insurance usually costs more.
Leasing
• KEYS TO LEASING A CAR:
– Shop as if you are buying a car by
negotiating all lease terms.
– Make sure the manufacturer’s
warranty covers the entire lease term.
– Ask about extra charges for excessive
mileage, wear and tear, and early
termination.
– Before you sign a lease, take a copy
of the contract home and review it
carefully away from any dealer
pressure.
– Obtain lease cost information from
the lessor before signing the lease.
Leasing
• LEASING LANGUAGE:
– Closed-end lease  return the car at the
end of the lease and “walk away.”
– Open-end lease  pay the difference
between the value stated in your contract
and the lessor’s appraised value at the
end of the lease.
– Lease inception fees  payments you
must make when the lease starts.
– Capitalized cost  price of the car for
leasing purposes plus taxes and extra
charges like service contracts and
registration fees.
– Capitalized cost reduction  similar to a
down payment; if you are trading in a car,
make sure the dealer applies the trade-in
value to the price your lease is based on.
Leasing
• BEGINNING-OF-LEASE COSTS
(Lease Inception Fees):
– First monthly payment;
– Refundable security deposit or your
last monthly payment;
– Fees for licenses, registration, and
title;
– Capitalized cost reduction (like a
down payment);
– Acquisition / processing fee;
– Freight or destination charges; and
– State or local taxes.
Leasing
• MONTHLY LEASING COSTS:
– Monthly payment;
– Additional taxes not included in the
payment (sales, use, and personal
property taxes);
– Insurance premiums;
– Ongoing maintenance costs;
– Fees for late payments;
– Safety and emissions inspections;
and
– Early termination charges, if
applicable.
Leasing
• END-OF-LEASE COSTS:
– If you don’t buy the vehicle, you may
have to pay:
• Disposition fee;
• Charges for excess miles;
– Dealers may charge $0.15 to $0.20 for
every mile that exceeds the limit.
• Charges for excessive wear, such as
body damage and worn tires; and
• Early termination charges for ending
the lease early.
Leasing
• NEGOTIATING POINTS:
– Agreed-upon value of the vehicle;
– Up-front payments;
– Length of lease;
– Monthly lease payment;
– End-of-lease fees and charges;
– Mileage allowed and per-mile charges
for excess;
– Option to purchase at lease-end or
earlier; and
– “Gap” coverage to protect in case of
car being totaled or stolen.
Leasing
• KNOW YOUR RIGHTS:
– To use the car for agreed-upon
number of months and miles;
– To turn in vehicle at lease-end, pay
end-of-lease fees and charges, and
walk away;
– To buy the car if you have a purchase
option; and
• NOTE: If you buy the car once your
lease has expired, it will cost more
than if you had bought the car new
instead of entering into the lease.
– To take advantage of any warranties,
recalls, or other services that apply to
the car.
Warranties, Service
Contracts & Insurance
Warranties
• TYPES OF WARRANTIES:
– As-Is  No warranty. Buyer is
responsible for anything that goes wrong
with the car.
– Implied Warranties  Unspoken,
unwritten promises; never expire.
– Express (Written) Warranties  Full or
limited; coverage can be negotiated.
• NOTE: Implied warranties are included
automatically.
– Unexpired Manufacturer’s Warranties 
• Ask the dealer for the warranty documents.
• Call the manufacturer’s zone office to verify
the information.
Warranties
• IMPLIED WARRANTIES:
• Merchantability  Seller promises that
the car will do what it is supposed to
do.
– Applies only to the basic functions of a
car.
– Breach occurs only if the buyer can
prove that a defect existed at the time
of sale.
• Fitness for a Particular Purpose 
Buyer buys car based on dealer’s
advice that it is suitable for a
particular use.
– Example: A dealer who suggests you
buy a specific car for hauling a trailer is
promising that the car will be suitable
for that purpose.
Warranties
• EXPRESS WARRANTIES:
– Full Warranty
• Anyone who owns the car during the
warranty period is entitled to service.
• Service will be provided free of charge,
including costs to remove and reinstall
a covered system.
• You have the choice of a replacement
or a full refund if the dealer cannot
repair the covered system after a
reasonable time.
– Limited Warranty
• If any of the statements regarding full
warranties do not apply, the warranty
is limited.
Warranties
• UNEXPIRED MANUFACTURER’S
WARRANTIES:
– Must specify the percentage of the
repair cost that the dealer will pay;
– Lists the specific parts and systems
that are covered by the warranty;
– Includes the warranty term for each
covered system; and
– States whether there is a deductible,
and if so, how much.
Warranties
• AVOIDING WARRANTY SCAMS:
– If you get mail or phone calls about
renewing your warranty, do not take the
information at face value.
– Take your time. Most legitimate
businesses will give you time and written
information before asking you to commit
to a purchase.
– Never give out personal financial or other
sensitive information (including your
driver’s license number or VIN number)
unless you know who you are dealing with.
– Be skeptical of any unsolicited sales calls if
the call is a recorded message or your
phone number is on the Do Not Call
Registry.
Service Contracts
• WARRANTIES v. SERVICE CONTRACTS:
– Both provide repair and/or maintenance
for a specific period.
– Warranties are included in the price of
the product.
– Service contracts, a.k.a. “Extended
Warranties,” cost extra, are sold
separately, and may be arranged at any
time. They provide optional protection on
specified mechanical and electrical
components of the car available for
purchase to supplement any warranty
coverage period with the new or used
vehicle.
Service Contracts
•
CONSIDER WHETHER A SERVICE CONTRACT
IS A GOOD BUY FOR YOU:
– Does it duplicate warranty coverage?
– Does it extend beyond the time you expect to
own the car?
– Is it transferable / is a shorter service contract
available?
– Will the cost of repairs exceed the price of the
contract?
– What parts and systems are covered?
– Is a deductible required? If so, what are the
amount and terms of the deductible?
– Are there cancellation or transfer fees?
– Who backs the service contract, and are they
reputable?
Insurance
• Credit Insurance – Optional
insurance that pays the scheduled
unpaid balance of your car loan if
you die or become disabled.
• Guaranteed Auto Protection (GAP) –
Optional protection that pays the
difference between the amount you
owe on your vehicle and the amount
you receive from your insurance
company if your car is stolen or
destroyed before you have satisfied
your credit obligation.
Financing
Financing
• FINANCING OVERVIEW:
– Financing Tips
– Financing Terms
– Step-by-Step Guide to Financing
– Paying Cash
– Obtaining Credit
– Direct Lending
– Dealership Financing
– Car Title Loans
Financing Tips
•
FINANCING TIPS:
– Shop before going to the dealer. Get preapproved by a bank or credit union.
– Make the largest down payment possible.
– Pay for the tags, title and taxes separately
instead of financing them.
– Negotiate the best price on the car before
applying for a loan at the dealership.
– Beware of dealers who ask you how much you
can afford to pay each month. Do NOT buy a
car based on the amount of monthly payments.
– Be aware of penalties for paying off your loan
early.
– Be wary of ads that promise loans for people
with bad credit. These deals often require a
higher down payment or have a very high
interest rate.
Language
•
FINANCING LANGUAGE:
– Annual Percentage Rate (APR) – Cost of credit
as a percentage.
– Down Payment – Amount paid at purchase to
reduce the amount financed.
– Amount Financed – $ amount of credit provided
to you.
– Finance Charge – Total $ amount you pay to use
credit.
– Fixed Rate Financing – Finance rate remains the
same over the life of the contract.
– Variable Rate Financing – Finance rate changes
over the life of the contract.
– Assignee – A bank, finance company, or credit
union that purchases the contract from the
dealer.
Step-by-Step Guide
• BEFORE VISITING THE DEALERSHIP:
– Evaluate your financial situation to
determine how much you can afford
to pay each month.
– Determine the price range of the car
you are thinking of buying.
– Understand the value and cost of
optional credit insurance if you agree
to purchase.
– Compare annual percentage rates
and financing terms from multiple
finance sources. Your credit history
may affect the finance rate you are
able to negotiate.
Step-by-Step Guide
• WHEN VISITING THE DEALERSHIP:
– Stick to what you can afford in
terms of car price and optional
products.
– Negotiate your finance
arrangements and terms.
– Read the contract carefully before
you sign.
– NOTE: There is NO 3-day right to
rescind a car purchase in
Delaware!
Step-by-Step Guide
• WHAT HAPPENS WHEN YOU APPLY
FOR FINANCING:
– Fill out a credit application.
– The dealership will obtain a copy of
your credit report and sell your
contract to a bank, finance company
or credit union.
– The dealer may still be able to offer
manufacturer incentives, such as
reduced finance rates or cash back on
certain models.
– If no special financing offers are
available, negotiate the APR and
terms of payment with the dealership.
Step-by-Step Guide
• AFTER COMPLETING THE CAR
PURCHASE OR LEASE:
– Be aware that if you financed the
car, the lender holds a lien on the
car’s title until you have paid the
contract in full.
– Make your payments on time.
Late or missed payments incur
late fees, appear on your credit
report, and impact your ability to
get credit in the future.
Paying Cash
• PAYING CASH:
– If money is tight, pay cash for a
less expensive car to avoid these
problems:
• Sale before loan expiration: The
amount received from the sale
may be less than the amount
needed to pay off the loan.
• Car repossessed / totaled: You
may need to repay the remainder
of the loan after the proceeds
from the sale of the car or
insurance payment have been
deducted.
Obtaining Credit
• WHAT IT DOES:
• Increases total cost of car because
of interest and other loan costs.
• Consider amount of down
payment, loan term, and Annual
Percentage Rate (APR).
• Rates are usually higher and loan
terms shorter for used cars than
for new cars.
– New car loans last 3 to 7 years.
– Used car loans last 2 to 5 years.
• Be cautious about ads offering
financing to first-time buyers or
people with bad credit.
Obtaining Credit
• FACTORS THAT INFLUENCE
YOUR APR:
– Credit history
– Current finance rates
– Competition
– Market conditions
– Special offers
Obtaining Credit
• BEFORE FINANCING, KNOW
THE FOLLOWING:
• Exact price you will pay for the
vehicle;
• Amount you are financing;
• Finance charge;
• Annual percentage rate (APR);
• Number and amount of payments;
and
• Total sales price (sum of monthly
payments + down payment).
Direct Lending
• DIRECT LENDING
– Buyer obtains a loan
through a finance company,
bank, or credit union.
– Buyer uses loan proceeds
from direct lender to pay
dealership for car.
– Buyer agrees to pay amount
financed + agreed-upon
finance charge over a period
of time.
Dealer Financing
• DEALER FINANCING
– Buyer obtains a loan
through dealership.
– Buyer agrees to pay amount
financed + agreed-upon
finance charge over a period
of time.
– Dealership typically sells
contract to assignee, such
as bank or credit union,
which services the account
and collects the payments.
Dealer Financing
• PROS & CONS:
– PROS:
• Convenience.
• Multiple financing relationships  dealer can
offer buyers a range of financing options.
• Special programs  dealerships may offer
manufacturer-sponsored, low-rate programs.
– CONS:
• Dealers might try to make extra profit
through the loan process.
• The dealer may pick the lender that makes
the most profit for the dealership instead of
the one with the best rate for you.
• The lender might pay the dealership for
referring customers to it.
Dealer Financing
• WHEN DEALERS OFFER LOW
INTEREST RATES:
– Dealers sometimes offer low loan
rates for specific cars. To get the
lowest advertised rates, you might
have to:
• Make a large down payment;
• Agree to a short loan term (usually 3
years or less);
• Have an excellent credit history; and
• Pay a participation fee.
– Example: Although a 2% APR might
be advertised, the company might
charge you a participation fee of $200
up front to get the low rate.
Dealer Financing
• FEDERAL LAWS THAT
REGULATE DEALER
FINANCING AND LEASING:
– Truth in Lending Act
– Consumer Leasing Act
– Credit Practices Rule
– Equal Credit Opportunity Act
– Fair Credit Reporting Act
Car Title Loans
• BEWARE OF CAR TITLE LOANS:
– Title loans are short-term (usually 1
month) loans that allow you to use your
car as collateral to borrow money.
– These loans can be very costly:
• Instead of an APR, the lender charges a
high rate of interest on a monthly basis.
• You keep your car, but you must give title
to your car to the lender.
• If you fail to repay the loan, the lender can
repossess the car.
• The lender may renegotiate and allow you
to pay only the interest on the loan. More
interest will accrue during the next month.
Repossession
Repossession
• SEIZING THE CAR:
– A creditor can seize your car as soon
as you default on your loan or lease.
– The creditor can come onto your
property to do so, but the creditor
may not commit a breach of the
peace.
• i.e. using physical force, threats of
force, or removing your car from a
closed garage without your permission.
– If the creditor agrees to change your
payment date, the terms of your
original contract may no longer apply.
Get such a change in writing.
Repossession
• SELLING THE VEHICLE:
– Once the car has been repossessed,
the creditor may either keep it as
compensation for your debt or resell
it at a public or private sale.
– You may be entitled to “redeem” or
buy back your car by paying the full
amount you owe, plus expenses
connected with the repossession.
– You may try to buy back the car by
bidding on it at the repossession sale.
– The resale of a repossessed car must
be conducted in a “commercially
reasonable manner” for an amount
not below market value.
Repossession
• PAYING THE DEFICIENCY:
– Any difference between what you
owe on your contract and what
your creditor gets for reselling the
car is a “deficiency.”
– Your creditor may sue you for a
deficiency judgment to collect the
remaining amount owed.
– Your creditor must pay you if
there are surplus funds after the
sale proceeds are applied to the
outstanding contract obligation.
Fuel
Fuel
• Alternative Fueled
Vehicles (AFVs)
• Alternative Fuels
• Hybrids
• Octane Levels
• “Gas Saving” Products
• Ways to Increase Fuel
Efficiency
Fuel
• ALTERNATIVE FUELED VEHICLES (AFVs)
– Operate on methanol, ethanol,
compressed natural gas, liquefied
petroleum gas, or electricity.
– Some can run on conventional fuels as
well as alternative fuels.
– AFVs are required to have labels that
include:
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Vehicle’s estimated cruising range;
Fuel type and availability;
Operating costs;
Performance / convenience;
Energy security / renewability; and
Emissions.
– Some AFVs do not travel as far as
gasoline-powered vehicles.
Fuel
• ALTERNATIVE FUELS:
– PROS:
• Substantial tax breaks may be
available for the purchase of
environmentally-friendly cars.
– CONS:
• Some alternative fuels do not
allow consumers to travel as
many miles on a gallon-for-gallon
basis.
• AFVs may cost more than a
comparable gasoline-powered
vehicle.
Fuel
• HYBRIDS
– Combine the benefits of gasoline
engines and electric motors.
– Can be configured to achieve a
variety of objectives, including:
• Improved fuel economy; and
• Increased power.
– Unlike AFVs, hybrids are NOT
required to have labels regarding
vehicle statistics.
Fuel
• OCTANE LEVELS:
– Use the octane level
specified in the car’s
owner’s manual.
• For most cars, this will be
regular octane.
• Only switch to higher octane if
your engine knocks or pings.
– High octane gas does not
keep your engine cleaner
than regular octane gas.
Fuel
• “GAS SAVING” PRODUCTS:
– No government agency endorses
gas-saving products for cars.
– No product has been found to
significantly improve gas mileage.
– Some gas-saving products may
damage a car’s engine or cause
substantial increases in exhaust
emissions.
– Consumers do not have the ability
to test precise changes in gas
mileage after installing a product.
Fuel
• “GAS SAVING” PRODUCTS:
DEVICES TESTED BY EPA
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Air bleed devices
Vapor bleed devices
Liquid injection
Ignition devices
Fuel line devices
Mixture enhancers
Internal engine modifications
Accessory drive modifiers
Fuel additives
Oil additives
Driving habit modifiers
Fuel
• WAYS TO IMPROVE FUEL
EFFICIENCY:
– Stay within posted speed limits.
– Use cruise control when
appropriate.
– Anticipate driving situations to
avoid unnecessary braking and
acceleration.
– Avoid unnecessary idling by
turning off engine unless in traffic.
– Remove excess weight from the
trunk.
Fuel
• WAYS TO IMPROVE FUEL
EFFICIENCY:
– Keep your engine tuned.
– Keep your tires properly inflated
and aligned.
– Change your oil.
– Consider buying a fuel efficient
vehicle.
– Combine errands.
– Stagger your work hours to avoid
peak rush hour.
– Carpool or use public transit.
Auto Repair
Auto Repair
• HOW TO CHOOSE A REPAIR SHOP:
– Ask for recommendations from people
you trust.
– Look for an auto repair shop before
you need one to avoid being rushed.
– Shop around by telephone for the
best deal, and compare warranty
policies on repairs.
– Check with the state Attorney
General or local consumer protection
agency to see if there is a record of
complaints.
– Make sure the shop will honor your
car’s warranty.
Auto Repair
• UNDERSTANDING REPAIR CHARGES:
– Ask if shop charges based on a flat
rate or actual time spent.
– If repairs will be complicated or
expensive, consider getting a second
opinion.
– Find out if there will be a diagnostic
charge if you decide to have the work
performed elsewhere.
– Shops that only do diagnostic work
may be able to give you an objective
opinion about which repairs are
necessary.
– Ask for a written estimate.
Auto Repair
• WRITTEN ESTIMATES:
– A written estimate should be
signed and should identify:
• The condition to be repaired;
• The parts needed; and
• The anticipated labor charge
– A written estimate should state
that the shop will contact you for
approval before they do any work
exceeding a specified amount of
time or money.
Auto Repair
• PART REPAIR / REPLACEMENT:
– New parts  Made to original
manufacturer’s specifications, either
by the vehicle manufacturer or an
independent company.
– Remanufactured, rebuilt, and
reconditioned parts  Parts that have
been restored to a sound working
condition. Parts may have a warranty.
– Salvage parts  Used parts taken
from another vehicle without
alteration. Reliability is seldom
guaranteed.
Auto Repair
• COMPLETED REPAIR ORDER:
– After the work is done, get a
completed repair order listing:
• Each repair;
• Parts supplied;
• Cost of each part;
• Labor charges; and
• Car’s odometer reading when you
brought the car in as well as when
the repair order was completed.
– Ask for all replaced parts.
Auto Repair
• PREVENTIVE MAINTENANCE:
– Consequences of postponing maintenance:
• Failure of specific parts or an entire system;
• Poor fuel economy;
• Unreliability;
• Costly breakdowns; and
• Invalidation of warranty.
– Maintenance guidelines:
• Follow manufacturer’s maintenance
schedule in your owner’s manual.
• Compare shop maintenance schedules with
those recommended in the owner’s manual.