There are a lot of articles out there which talk about whether or not extended warranties are worth it from dealerships. The answer is generally "No" - but they do offer peace of mind and a fixed monthly expense, which can really help from a budgeting perspective.
But what about cars with a few more miles on them, or that you bought used? These are often the best value out there for vehicles. Autos tend to depreciate significantly in the first few years, but new models and big changes only come about every 4-7 years or so. Often, you can get the same car that they are selling new for $30,000, three years old and with 45,000 miles on it for $15,000, or 5 years old with 80,000 miles on it for $7000.
There are a lot of companies out there which offer 3rd party warranties for used cars. But are they worth it?
The short answer is "No." The long answer is "absolutely not."
The issue is this: none of these warranties really cover anything except the engine or drive train. They all have disclaimers that all basic mechanical parts are not covered. That means most of your car repair bill will not be covered.
What is covered then? Not a lot. If your engine blows up they MIGHT cover the cost of replacing it or doing a major repair. But if the issue was caused by "improper maintenance" they don't have to cover a thing. So - if you don't keep a perfect maintenance schedule and have records for all of it, they don't have to pay a dime.
Long story short - used car warranties are almost never worth the money.
Tuesday, January 28, 2014
Monday, January 27, 2014
What's The Best Used Car According to a Mechanic
Coming from the car repair industry you see and repair a lot of older vehicles. And a lot of those vehicles are difficult and expensive to work on. So what's the best car from a mechanic's perspective?
There are a few which almost every mechanic agree on.
1. The Honda Accord
This is probably the best. Reliable and cheap to repair, both the v4 and v6 are nearly bulletproof.
2. The Chevy Suburban
Cheap and reliable 4x4 SUV with tons of space. While many people see the fuel economy and that's all they care about. But with about 16mpg, limited depreciation and bomber build quality, these SUVs can be a great value.
How Much Does My Check Engine Light Tell Me?
Your check engine light is a very useful diagnostic tool, and a good way to keep an eye on the heath of your engine, but not your car.
Your check engine light mostly reads from a number of sensors. These include oxygen sensors which let it know if the car is running rich or lean, temperature sensors which let it know if you are overheating, throttle, camshaft and crankshaft position sensors, and on almost all cars these days, ABS sensors that tell it wheel speed.
So, of something is going on which one of these sensors can read, your check engine light will come on and you or a mechanic can use it to help diagnose the problem. For example, a broken house line in the engine could be misread as a misfire which you need to replace your spark plugs or cool packs, instead of a $10 hose. The light only goes so far, knowledge is still key.
The light also tells you nothing at all about the mechanical systems on your car. Axles, brakes, suspension, most of your steering system: none of these things have sensors which tell you when they need repair or what they need, other than a few cars with brake pad sensors which don't work very well.
Your check engine light is a useful diagnostic tool, but it only covers a small percentage of repairs other than on the engine itself.
Sunday, January 26, 2014
Car Repair Shops Growth Slows
http://www.forbes.com/sites/sageworks/2014/01/26/auto-repair-shops-financial-analysis/
Car Repair Top 10 Repairs
http://www.bankrate.com/finance/auto/top-10-check-engine-light-car-repairs-1.aspx
When Should I Get Scheduled Maintenance?
http://www.cbac.com/store/fm-1488-%28woodlands-west%29-tx/blog/when-should-i-get-scheduled-maintenance%3F
Top 5 Basic Terms for Car Repair
http://www.cbac.com/blog/5-basic-terms-your-car-mechanic-wants-you-know
Friday, January 24, 2014
Mobile Mechanics - Can You Trust Them?
Mobile car repair is a hot new topic as mobile car repair is something which customers are increasingly looking for. However, this is a case where supply has lagged behind demand: there are very few reputable mobile car repair companies out there.
Most mobile mechanics are simple guys who have been laid off from a shop, throw some of their hand tools in the back of their truck and put an ad on Craigslist which says something like "Mobile Mechanic SAVE $$$$$!!" and has a phone number and nothing else.
Most of these guys demand that you pay up front for parts (probably because they don't have the money themselves, and they certainly don't have commercial credit accounts) and they are generally pretty poor mechanics. I have personally come across a lot of stories of one of these guys coming out, starting a job, and then failing to finish it because they screwed something up and simply walked away.
So who can you trust? Well, if you live in the SF Bay area there is a service called YourMechanic which basically wants to take these guys off Craigslist and use an app to connect you and them... which seems ok... except you are still dealing with mobile mechanics operating without a shop and with no way to complete most major repairs. YourMechanic says "80% of all repairs can be completed on site" - which clearly shows they need a few less developers and a few more mechanics (even one!) on staff. Around the country there are a few other mobile mechanic services, including a number in Texas and Florida, and a new service which launched recently in Boston, The Driveway Doctors which are backed by a full service shop.
The simple truth is that I would not trust someone off Craigslist to fix my car. I would look around, find a shop with good reviews, and go with them. Mobile car repair is a great concept and the supply will expand to meet the demand, and reputable services like Driveway Doctors will emerge around the country, but don't try a craigslist mechanic unless you are really desperate.
Most mobile mechanics are simple guys who have been laid off from a shop, throw some of their hand tools in the back of their truck and put an ad on Craigslist which says something like "Mobile Mechanic SAVE $$$$$!!" and has a phone number and nothing else.
Most of these guys demand that you pay up front for parts (probably because they don't have the money themselves, and they certainly don't have commercial credit accounts) and they are generally pretty poor mechanics. I have personally come across a lot of stories of one of these guys coming out, starting a job, and then failing to finish it because they screwed something up and simply walked away.
So who can you trust? Well, if you live in the SF Bay area there is a service called YourMechanic which basically wants to take these guys off Craigslist and use an app to connect you and them... which seems ok... except you are still dealing with mobile mechanics operating without a shop and with no way to complete most major repairs. YourMechanic says "80% of all repairs can be completed on site" - which clearly shows they need a few less developers and a few more mechanics (even one!) on staff. Around the country there are a few other mobile mechanic services, including a number in Texas and Florida, and a new service which launched recently in Boston, The Driveway Doctors which are backed by a full service shop.
The simple truth is that I would not trust someone off Craigslist to fix my car. I would look around, find a shop with good reviews, and go with them. Mobile car repair is a great concept and the supply will expand to meet the demand, and reputable services like Driveway Doctors will emerge around the country, but don't try a craigslist mechanic unless you are really desperate.
Alternators, Starters and Batteries - How Do I Know Which One?
When your car won't start there are three main causes: bad starter, bad alternator, bad battery.
Your battery is where the power comes from to start the car. The starter draws power from the battery and mechanically spins the motor over to get it started. Your alternator charges your battery while you are driving and powers all of the electronics while the car is running (think of it as the power plant).
But when you car won't start, how can you tell which one is causing the issue?
Luckily there are some simple guidelines for you to follow.
1) Your Battery
If it is your battery the car will start when jumped (sometimes this will take a while - the battery may need to charge). Leave the car running for a while. If when you turn it off again, it won't start, it is most likely a bad battery.
2) Your Alternator
If your alternator dies, your car will start when jumped, but the electricity will slowly die. All of your gauges will go flat, your lights will turn off, and eventually you will lose all power steering and everything else which is run by the car's computer. However, the car should start when you try and turn it over.
3) Your Starter
If you starter is bad the car will not start no matter how long you charge the battery or jump it. Sometimes if you hit the starter with something wooden (back of a hammer is the usual choice) the car will start one or two more times, but then will stop working after that.
Your battery is where the power comes from to start the car. The starter draws power from the battery and mechanically spins the motor over to get it started. Your alternator charges your battery while you are driving and powers all of the electronics while the car is running (think of it as the power plant).
But when you car won't start, how can you tell which one is causing the issue?
Luckily there are some simple guidelines for you to follow.
1) Your Battery
If it is your battery the car will start when jumped (sometimes this will take a while - the battery may need to charge). Leave the car running for a while. If when you turn it off again, it won't start, it is most likely a bad battery.
2) Your Alternator
If your alternator dies, your car will start when jumped, but the electricity will slowly die. All of your gauges will go flat, your lights will turn off, and eventually you will lose all power steering and everything else which is run by the car's computer. However, the car should start when you try and turn it over.
3) Your Starter
If you starter is bad the car will not start no matter how long you charge the battery or jump it. Sometimes if you hit the starter with something wooden (back of a hammer is the usual choice) the car will start one or two more times, but then will stop working after that.
The Top 10 Things Mechanics Don't Want You to Know
Mechanics are generally a shady bunch. It is an industry that thrives in the dark. Very few mechanics actually promote open and transparent interaction with their customers. Think of how often you go into a shop and the price they originally quoted goes up by... $100? $200? 200%? Sound familiar? It is.
Americans waste 2 billion days and $90 billion dollars a year on car repair. That is equal to over 3 million years of savings for the average American. 3 MILLION YEARS - every year. It is a colossal waste of money.
So how do you avoid wasting your savings on car repair?
Here are the top 10 things that mechanics don't want you to know:
10) You can request parts back from the mechanic. They get around this because most parts have a core charge - in which case they don't have to give them back. However, you can still request to see the old part and to have them show you where/how it is broken.
9) You can always get your car towed out of a shop. Even if the work has started - it can often be cheaper to get competing quotes and pay the $65 (AAA will not typically tow from one shop to another) for towing than it is to get the repair done at a shop which overcharges you.
8) ASE Certification is on an individual basis. It is the closest thing the industry has to being accredited, but anyone (and I mean anyone) can call themselves a mechanic and work on your car. ASE tests are given in different subject matters - so someone can be "ASE Certified" but only for brakes... and he's telling you he's a transmission expert. See where I'm going with this?
7) It's not just mechanics either, shops are generally also not certified. Shops are generally meant to be licensed with the state, but a large percentage of them are not. You should ask to see their state certification if you are not sure.
6) They drive your car, a lot. Mechanics test drive all the time, but the less reputable shops this means you are getting charge "hours of labor" for going and picking up the groceries, getting a beer, or just driving fast around the neighborhood.
5) Most parts are available same day - usually within hours. If a mechanic is telling you that they are just waiting on the part - there is a 95% chance that they are lying to you. These days, you can order a part and get it delivered typically within a few hours. Even something very rare and dealer only you can usually get within one day. If your car is sitting for over a week while your mechanic is "waiting for parts" you are being had.
4) You can find out what parts cost! Most shops use either Advanced Auto Parts or Auto Zone for most of their parts. Take about 30-50% off retail pricing and you should have what the shop would pay for parts. Try to avoid paying more part than the retail price from one of these shops.
3) You can get competing quotes for your repair. Openbay.com is a new service which lets you get multiple quotes for a repair from pre-screened service providers.
2) There are websites which give you full estimates for the repair. The biggest of these are AutoMD and RepairPal - beware the estimates though. Sometimes they are significantly different from what the actual repair calls for, or they fail to include the price of parts etc.
1) Prices are always negotiable. And more than that, you can hire a negotiator! A new service called CarFixd lets you hire an ASE Certified mechanic to negotiate car repair for you. Otherwise you can always bring in someone you know and trust and you feel has a good handle on car repair (or maybe just a good negotiator).
Americans waste 2 billion days and $90 billion dollars a year on car repair. That is equal to over 3 million years of savings for the average American. 3 MILLION YEARS - every year. It is a colossal waste of money.
So how do you avoid wasting your savings on car repair?
Here are the top 10 things that mechanics don't want you to know:
10) You can request parts back from the mechanic. They get around this because most parts have a core charge - in which case they don't have to give them back. However, you can still request to see the old part and to have them show you where/how it is broken.
9) You can always get your car towed out of a shop. Even if the work has started - it can often be cheaper to get competing quotes and pay the $65 (AAA will not typically tow from one shop to another) for towing than it is to get the repair done at a shop which overcharges you.
8) ASE Certification is on an individual basis. It is the closest thing the industry has to being accredited, but anyone (and I mean anyone) can call themselves a mechanic and work on your car. ASE tests are given in different subject matters - so someone can be "ASE Certified" but only for brakes... and he's telling you he's a transmission expert. See where I'm going with this?
7) It's not just mechanics either, shops are generally also not certified. Shops are generally meant to be licensed with the state, but a large percentage of them are not. You should ask to see their state certification if you are not sure.
6) They drive your car, a lot. Mechanics test drive all the time, but the less reputable shops this means you are getting charge "hours of labor" for going and picking up the groceries, getting a beer, or just driving fast around the neighborhood.
5) Most parts are available same day - usually within hours. If a mechanic is telling you that they are just waiting on the part - there is a 95% chance that they are lying to you. These days, you can order a part and get it delivered typically within a few hours. Even something very rare and dealer only you can usually get within one day. If your car is sitting for over a week while your mechanic is "waiting for parts" you are being had.
4) You can find out what parts cost! Most shops use either Advanced Auto Parts or Auto Zone for most of their parts. Take about 30-50% off retail pricing and you should have what the shop would pay for parts. Try to avoid paying more part than the retail price from one of these shops.
3) You can get competing quotes for your repair. Openbay.com is a new service which lets you get multiple quotes for a repair from pre-screened service providers.
2) There are websites which give you full estimates for the repair. The biggest of these are AutoMD and RepairPal - beware the estimates though. Sometimes they are significantly different from what the actual repair calls for, or they fail to include the price of parts etc.
1) Prices are always negotiable. And more than that, you can hire a negotiator! A new service called CarFixd lets you hire an ASE Certified mechanic to negotiate car repair for you. Otherwise you can always bring in someone you know and trust and you feel has a good handle on car repair (or maybe just a good negotiator).
The Car Repair Industry and Driveway Doctors
The Driveway Doctors
So - the main reason that I have been writing so much less on this site is because I have been working full time on launching my first company, The Driveway Doctors. We are trying to build the first software-centric car repair company. In addition to that, we offer on-site or mobile mechanic / mobile car repair services to our customers.
A lot of our customers ask "can you really do that on site?" The answer is generally yes. What most repair shops and dealerships don't want you to know is that the majority of repairs are actually quite simple. We have been open for almost two years now and we do about 75% of repairs can be done on site. Common issues such as brakes, check engine lights, and tune ups can all be done from the comfort of your home.
The benefits are that you never have to leave home or work (always nice), but more than that, you don't lose your car. When you drop your car off at a traditional repair shop they have complete control over it. They will often tell you that parts are taking days or weeks to shop up: they aren't. Parts are almost always delivered within hours. I can get parts for a 1974 Alpha Romeo Spyder delivered withing two hours to my shop. If a shop is telling you that parts are taking days or weeks to show up - they are lying to you. They are using that as an excuse for not fixing you car yet. The difference with us is that we come to you. You never lose your car, you can see us working on it, and if it does need parts, we want to get them to you as soon as possible. It's a different kind of car repair.
The other reason we are so different is because we don't pay mechanics "flat rate." Flat rate is the industry standard way of paying their mechanics. There is a book (website these days) which says exactly how many hours each job "takes." This is almost always significantly higher than the actual hours it would take a good mechanic to get the work done. When a shop tells you they worked on your car for six hours, they didn't. The book said it was a six hour job. They probably spent 2-3 working on your car. However, the mechanic who worked on your car gets paid for those six hours. And that is all they get paid. If they book 5 hours of work in a day, they get paid for 5 hours. If they book 15, they get paid for 15.
In other words, mechanics get paid based on the number of hours the job rates. The higher hours the job, the more they get paid. Naturally, they want to try and sell you on higher hour jobs. You show up for one thing, and all of a sudden you have a $2,000 estimate. Sound familiar? It's common because the mechanics are trying to make as much as they can off each job. You can't really blame them either: if the shop is slow and they are not booking work, they get paid nothing. Their income is traditionally really variable: in a good week they can "work" 100+ hours (while only actually working 50), but in a bad week, they might only book 20 (while actually working 50).
The Driveway Doctors is different. Our senior mechanics get paid salary with bonuses based on customer feedback. Our junior mechanics get paid hourly (real hourly) so they don't make anything more or less depending on what they sell to the customer. It is such a radically different model that we were told by many in the industry that it just was not possible. They would ask "how can you keep your guys motivated? How can you make sure you make money if you are paying them like that?" We keep our guys motivated by finding the best guys and giving them the opportunity to join a growing company, and getting a piece of that growth for themselves. And it is the company's job to show profitability, just like it is for any major company. It should not be up to the mechanics to sell unnecessary work in order to make payroll that week. It is a different kind of car company, and a different kind of service.
Thank You
Alexander Tallett
Founder of The Driveway Doctors
So - the main reason that I have been writing so much less on this site is because I have been working full time on launching my first company, The Driveway Doctors. We are trying to build the first software-centric car repair company. In addition to that, we offer on-site or mobile mechanic / mobile car repair services to our customers.
A lot of our customers ask "can you really do that on site?" The answer is generally yes. What most repair shops and dealerships don't want you to know is that the majority of repairs are actually quite simple. We have been open for almost two years now and we do about 75% of repairs can be done on site. Common issues such as brakes, check engine lights, and tune ups can all be done from the comfort of your home.
The benefits are that you never have to leave home or work (always nice), but more than that, you don't lose your car. When you drop your car off at a traditional repair shop they have complete control over it. They will often tell you that parts are taking days or weeks to shop up: they aren't. Parts are almost always delivered within hours. I can get parts for a 1974 Alpha Romeo Spyder delivered withing two hours to my shop. If a shop is telling you that parts are taking days or weeks to show up - they are lying to you. They are using that as an excuse for not fixing you car yet. The difference with us is that we come to you. You never lose your car, you can see us working on it, and if it does need parts, we want to get them to you as soon as possible. It's a different kind of car repair.
The other reason we are so different is because we don't pay mechanics "flat rate." Flat rate is the industry standard way of paying their mechanics. There is a book (website these days) which says exactly how many hours each job "takes." This is almost always significantly higher than the actual hours it would take a good mechanic to get the work done. When a shop tells you they worked on your car for six hours, they didn't. The book said it was a six hour job. They probably spent 2-3 working on your car. However, the mechanic who worked on your car gets paid for those six hours. And that is all they get paid. If they book 5 hours of work in a day, they get paid for 5 hours. If they book 15, they get paid for 15.
In other words, mechanics get paid based on the number of hours the job rates. The higher hours the job, the more they get paid. Naturally, they want to try and sell you on higher hour jobs. You show up for one thing, and all of a sudden you have a $2,000 estimate. Sound familiar? It's common because the mechanics are trying to make as much as they can off each job. You can't really blame them either: if the shop is slow and they are not booking work, they get paid nothing. Their income is traditionally really variable: in a good week they can "work" 100+ hours (while only actually working 50), but in a bad week, they might only book 20 (while actually working 50).
The Driveway Doctors is different. Our senior mechanics get paid salary with bonuses based on customer feedback. Our junior mechanics get paid hourly (real hourly) so they don't make anything more or less depending on what they sell to the customer. It is such a radically different model that we were told by many in the industry that it just was not possible. They would ask "how can you keep your guys motivated? How can you make sure you make money if you are paying them like that?" We keep our guys motivated by finding the best guys and giving them the opportunity to join a growing company, and getting a piece of that growth for themselves. And it is the company's job to show profitability, just like it is for any major company. It should not be up to the mechanics to sell unnecessary work in order to make payroll that week. It is a different kind of car company, and a different kind of service.
Thank You
Alexander Tallett
Founder of The Driveway Doctors
Subscribe to:
Comments (Atom)