2009-02-16
Even if you are a safe driver with a stellar driving record, you might be seeing an increase in your auto insurance rates due to the lagging economy. Car insurance companies are raising their premiums across the board, and sometimes this is at no fault of your own. True, if you get a ticket or are in an accident you expect to see an increase in your auto insurance rates, but there are other reasons for this overall increase associated with the recession. Here are some of the economic causes for rising auto insurance rates:
Everything is More Expensive:
Everything is more expensive nowadays. From restaurants to auto parts stores, nearly every industry in America has raised their prices. This is because the cost of raw materials, energy, and shipping has increased, as well as other costs to do business. These costs are then passed on to the consumer at the end of a long chain of price increases. For example, auto parts suppliers are charging more for the parts they sell to service centers, so service centers are charging more for repair costs, so auto insurance companies are spending more to fix vehicles, and therefore consumers must absorb the cost by paying higher auto insurance rates. This chain of events also applies to health costs and other outlays by car insurance companies. Put simply, when the car insurance company must pay more, their customers must pay more.
Losing on Investments:
Another reason auto insurance quotes are going higher is the result of the poor investment performance. That is, car insurance companies are losing money in the stock market and other investments. Again, this is at no fault to the consumer, but they are the ones that will end up paying for the losses with higher auto insurance rates. Many car insurance companies use the money they collect from auto insurance premiums and invest it to grow that money. They invest the money in other industries to diversify their own holdings and make a profit. But, markets across the world have been underperforming, and therefore car insurance companies are either not making a good return on their investments, or even worse, they are losing money. To make up for these losses, auto insurance rates are rising for current customers, and new customers are being presented with high auto insurance quotes and rates.
Credit Rating:
Believe it or not, a driver's credit history also affects their auto insurance rates. No matter how good of a driver you are, or how long its been since your last accident, if you have poor credit you will pay higher auto insurance rates than if you had good credit. People with poor credit are deemed to be more risky to insure because they might not make their payments on time, or not make their payments at all. Therefore a poor credit rating means higher auto insurance rates. This applies even if you always pay your auto insurance premium on time, because a foreclosure or defaulted loan would negatively affect your credit rating.
Consumers can still find cheap auto insurance quotes online, however. Visit CarInsuranceQuotes.com and compare quotes from several different companies competing for your business. You'll find the cheapest car insurance quotes from respected companies across the nation.
Sunday, March 01, 2009
Why Are My Car Insurance Rates Going Up in the Bad Economy?
2009-02-16
Even if you are a safe driver with a stellar driving record, you might be seeing an increase in your auto insurance rates due to the lagging economy. Car insurance companies are raising their premiums across the board, and sometimes this is at no fault of your own. True, if you get a ticket or are in an accident you expect to see an increase in your auto insurance rates, but there are other reasons for this overall increase associated with the recession. Here are some of the economic causes for rising auto insurance rates:
Everything is More Expensive:
Everything is more expensive nowadays. From restaurants to auto parts stores, nearly every industry in America has raised their prices. This is because the cost of raw materials, energy, and shipping has increased, as well as other costs to do business. These costs are then passed on to the consumer at the end of a long chain of price increases. For example, auto parts suppliers are charging more for the parts they sell to service centers, so service centers are charging more for repair costs, so auto insurance companies are spending more to fix vehicles, and therefore consumers must absorb the cost by paying higher auto insurance rates. This chain of events also applies to health costs and other outlays by car insurance companies. Put simply, when the car insurance company must pay more, their customers must pay more.
Losing on Investments:
Another reason auto insurance quotes are going higher is the result of the poor investment performance. That is, car insurance companies are losing money in the stock market and other investments. Again, this is at no fault to the consumer, but they are the ones that will end up paying for the losses with higher auto insurance rates. Many car insurance companies use the money they collect from auto insurance premiums and invest it to grow that money. They invest the money in other industries to diversify their own holdings and make a profit. But, markets across the world have been underperforming, and therefore car insurance companies are either not making a good return on their investments, or even worse, they are losing money. To make up for these losses, auto insurance rates are rising for current customers, and new customers are being presented with high auto insurance quotes and rates.
Credit Rating:
Believe it or not, a driver's credit history also affects their auto insurance rates. No matter how good of a driver you are, or how long its been since your last accident, if you have poor credit you will pay higher auto insurance rates than if you had good credit. People with poor credit are deemed to be more risky to insure because they might not make their payments on time, or not make their payments at all. Therefore a poor credit rating means higher auto insurance rates. This applies even if you always pay your auto insurance premium on time, because a foreclosure or defaulted loan would negatively affect your credit rating.
Consumers can still find cheap auto insurance quotes online, however. Visit CarInsuranceQuotes.com and compare quotes from several different companies competing for your business. You'll find the cheapest car insurance quotes from respected companies across the nation.
Even if you are a safe driver with a stellar driving record, you might be seeing an increase in your auto insurance rates due to the lagging economy. Car insurance companies are raising their premiums across the board, and sometimes this is at no fault of your own. True, if you get a ticket or are in an accident you expect to see an increase in your auto insurance rates, but there are other reasons for this overall increase associated with the recession. Here are some of the economic causes for rising auto insurance rates:
Everything is More Expensive:
Everything is more expensive nowadays. From restaurants to auto parts stores, nearly every industry in America has raised their prices. This is because the cost of raw materials, energy, and shipping has increased, as well as other costs to do business. These costs are then passed on to the consumer at the end of a long chain of price increases. For example, auto parts suppliers are charging more for the parts they sell to service centers, so service centers are charging more for repair costs, so auto insurance companies are spending more to fix vehicles, and therefore consumers must absorb the cost by paying higher auto insurance rates. This chain of events also applies to health costs and other outlays by car insurance companies. Put simply, when the car insurance company must pay more, their customers must pay more.
Losing on Investments:
Another reason auto insurance quotes are going higher is the result of the poor investment performance. That is, car insurance companies are losing money in the stock market and other investments. Again, this is at no fault to the consumer, but they are the ones that will end up paying for the losses with higher auto insurance rates. Many car insurance companies use the money they collect from auto insurance premiums and invest it to grow that money. They invest the money in other industries to diversify their own holdings and make a profit. But, markets across the world have been underperforming, and therefore car insurance companies are either not making a good return on their investments, or even worse, they are losing money. To make up for these losses, auto insurance rates are rising for current customers, and new customers are being presented with high auto insurance quotes and rates.
Credit Rating:
Believe it or not, a driver's credit history also affects their auto insurance rates. No matter how good of a driver you are, or how long its been since your last accident, if you have poor credit you will pay higher auto insurance rates than if you had good credit. People with poor credit are deemed to be more risky to insure because they might not make their payments on time, or not make their payments at all. Therefore a poor credit rating means higher auto insurance rates. This applies even if you always pay your auto insurance premium on time, because a foreclosure or defaulted loan would negatively affect your credit rating.
Consumers can still find cheap auto insurance quotes online, however. Visit CarInsuranceQuotes.com and compare quotes from several different companies competing for your business. You'll find the cheapest car insurance quotes from respected companies across the nation.
Cheap Car Insurance
Finding cheap car insurance is important for many consumers. Even more important is finding cheap car insurance from a reputable company so you know your insurance policy will cover you when you need it. Fortunately, there are many things consumers can do to help lower their premiums and allow them to find cheap car insurance from companies they can trust. CarInsuranceQuotes.com wants our customers to get the best deal possible and that is why we offer these tips to help lower your premiums and ensure you get cheap car insurance from a highly respected insurance company.
Go Shopping- One of the biggest mistakes most consumers make when they purchase a car insurance policy is going with the first company they find. “If you want to find cheap car insurance, the best and easiest way to save is by shopping around the different policies offered by car insurance companies. You will want to get at least three different quotes from companies before you decide on which insurance policy is best for you. CarInsuranceQuotes.com allows our customers to view quotes from different companies so our customers can be sure they get cheap car insurance from one of our partners.
Raise your Deductible- A great way to get cheap car insurance premiums is by raising the deductibles they are willing to pay. By raising your deductible from $500 to $1000 you can lower the premiums you pay by up to 40%.
Combine your Coverage- Another easy way to get cheap car insurance is by combining your auto and home policies. Many companies offer breaks to customers that insure their homes and vehicles through the same company.
Stay Close to Home- The less you drive the less chance you have of being involved in an accident. Insurance companies understand this and offer lower rates to people who use their vehicles less. So, if you are looking for cheap car insurance, it may be wise to walk the two blocks to the store instead of driving.
Do the Math- If you own an older vehicle that is not required by a loan company to carry full coverage insurance then a great way to get cheap car insurance is to lessen the coverage on the vehicle. If the amount of the premium on the policy is more than 10% of what the car is worth than the insurance policy is probably not worth it.
Improve your Credit- Think of your insurance policy as a loan. When you apply for coverage, insurance companies check your credit history to help determine how much your premiums will be. If you want to find cheap car insurance it is wise to pay bills on time, apply for credit less and check your credit report periodically for errors.
If you feel you are paying too much for your premiums and would like to find cheap car insurance from a reputable company then the above tips are a great place to start. And when it is time to get quotes for your new insurance policy, let CarInsuranceQuotes.com do your research for you. CarInsuranceQuotes.com searches online for the lowest price premiums from reputable companies like Allstate, esurance.com and Farmers’ Insurance Group to help ensure our customers get cheap car insurance from the best companies.
Go Shopping- One of the biggest mistakes most consumers make when they purchase a car insurance policy is going with the first company they find. “If you want to find cheap car insurance, the best and easiest way to save is by shopping around the different policies offered by car insurance companies. You will want to get at least three different quotes from companies before you decide on which insurance policy is best for you. CarInsuranceQuotes.com allows our customers to view quotes from different companies so our customers can be sure they get cheap car insurance from one of our partners.
Raise your Deductible- A great way to get cheap car insurance premiums is by raising the deductibles they are willing to pay. By raising your deductible from $500 to $1000 you can lower the premiums you pay by up to 40%.
Combine your Coverage- Another easy way to get cheap car insurance is by combining your auto and home policies. Many companies offer breaks to customers that insure their homes and vehicles through the same company.
Stay Close to Home- The less you drive the less chance you have of being involved in an accident. Insurance companies understand this and offer lower rates to people who use their vehicles less. So, if you are looking for cheap car insurance, it may be wise to walk the two blocks to the store instead of driving.
Do the Math- If you own an older vehicle that is not required by a loan company to carry full coverage insurance then a great way to get cheap car insurance is to lessen the coverage on the vehicle. If the amount of the premium on the policy is more than 10% of what the car is worth than the insurance policy is probably not worth it.
Improve your Credit- Think of your insurance policy as a loan. When you apply for coverage, insurance companies check your credit history to help determine how much your premiums will be. If you want to find cheap car insurance it is wise to pay bills on time, apply for credit less and check your credit report periodically for errors.
If you feel you are paying too much for your premiums and would like to find cheap car insurance from a reputable company then the above tips are a great place to start. And when it is time to get quotes for your new insurance policy, let CarInsuranceQuotes.com do your research for you. CarInsuranceQuotes.com searches online for the lowest price premiums from reputable companies like Allstate, esurance.com and Farmers’ Insurance Group to help ensure our customers get cheap car insurance from the best companies.
Car Insurance FAQ
CarInsuranceQuotes.com has developed this Car Insurance FAQ for your convenience. Below you will find many answers to your questions about car insurance.
When shopping around for car insurance online, what information do I need to help make my purchase as simple as possible?
CarInsuranceQuotes.com understands that our customers may be hesitant about giving their personal information when shopping for car insurance online and that is why CarInsuranceQuotes.com only asks for the basic information and keeps all personal information safe and secure. To get an insurance quote, all you will need is your Zip code, information about your driving history and the driving history of other drivers in your household and the type of vehicles you own.
How much will it cost to get a quote for car insurance online?
Everybody hates to spend money for assistance when they could do the work themselves for free. That’s the beauty of getting a quote for car insurance online from CarInsuranceQuotes.com. CarInsuranceQuotes.com will search top rated companies for the best quote from a reputable insurer and it won’t cost you a cent. This will allow you to get multiple quotes for car insurance online without having to open your wallet.
How much time does it take to get a quote for car insurance online?CarInsuranceQuotes.com understands that our customers are very busy and don’t have time to spend hours or even days waiting for a car insurance quote. Because of this, CarInsuranceQuotes.com has streamlined the quote process so you can move on to other important issues of your day. The entire process of getting a quote for car insurance online takes under five minutes with CarInsuranceQuotes.com.
Can I get a quote for car insurance online at any time of day?
The short answer is yes! CarInsuranceQuotes.com, unlike your local insurance company, is open for business 24 hours a day. This allows our customers to get a quote for car insurance online when they are sitting at the breakfast table, on their lunch break or after they put the kids to bed.
What is the maximum amount of drivers or vehicles I can insure on one policy when I purchase car insurance online?
Most car insurance companies allow for a maximum of four vehicles and/or four vehicles to be insured on a single policy. This is the same whether you purchase your car insurance online or from your local agent.
Are there any other benefits to purchasing car insurance online?
Shopping for car insurance online offers many benefits to consumers. Some of the benefits include:• Convenience- You can shop for car insurance online from anywhere you have a computer and the internet and from any time of day.
• Comparison shopping- Shopping for car insurance online allows you to compare quotes and companies quickly and easily without ever having to leave your desk.
• Save money- Shopping for car insurance online cuts out the middle man, which allows you to save even more money.These are some of the more common questions people have when they are shopping for car insurance online. If your question has not been answered here feel free to contact CarInsuranceQuotes.com anytime by email.
When shopping around for car insurance online, what information do I need to help make my purchase as simple as possible?
CarInsuranceQuotes.com understands that our customers may be hesitant about giving their personal information when shopping for car insurance online and that is why CarInsuranceQuotes.com only asks for the basic information and keeps all personal information safe and secure. To get an insurance quote, all you will need is your Zip code, information about your driving history and the driving history of other drivers in your household and the type of vehicles you own.
How much will it cost to get a quote for car insurance online?
Everybody hates to spend money for assistance when they could do the work themselves for free. That’s the beauty of getting a quote for car insurance online from CarInsuranceQuotes.com. CarInsuranceQuotes.com will search top rated companies for the best quote from a reputable insurer and it won’t cost you a cent. This will allow you to get multiple quotes for car insurance online without having to open your wallet.
How much time does it take to get a quote for car insurance online?CarInsuranceQuotes.com understands that our customers are very busy and don’t have time to spend hours or even days waiting for a car insurance quote. Because of this, CarInsuranceQuotes.com has streamlined the quote process so you can move on to other important issues of your day. The entire process of getting a quote for car insurance online takes under five minutes with CarInsuranceQuotes.com.
Can I get a quote for car insurance online at any time of day?
The short answer is yes! CarInsuranceQuotes.com, unlike your local insurance company, is open for business 24 hours a day. This allows our customers to get a quote for car insurance online when they are sitting at the breakfast table, on their lunch break or after they put the kids to bed.
What is the maximum amount of drivers or vehicles I can insure on one policy when I purchase car insurance online?
Most car insurance companies allow for a maximum of four vehicles and/or four vehicles to be insured on a single policy. This is the same whether you purchase your car insurance online or from your local agent.
Are there any other benefits to purchasing car insurance online?
Shopping for car insurance online offers many benefits to consumers. Some of the benefits include:• Convenience- You can shop for car insurance online from anywhere you have a computer and the internet and from any time of day.
• Comparison shopping- Shopping for car insurance online allows you to compare quotes and companies quickly and easily without ever having to leave your desk.
• Save money- Shopping for car insurance online cuts out the middle man, which allows you to save even more money.These are some of the more common questions people have when they are shopping for car insurance online. If your question has not been answered here feel free to contact CarInsuranceQuotes.com anytime by email.
Car Insurance Quote
Whether you are a first time car buyer or a collector of classic automobiles, finding the best car insurance quote is important to protecting your vehicle. But, many people pay far too much for car insurance because they don't take the time to research companies, and shop around.
Fortunately, finding cheap car insurance quotes from reputable companies is easier than you think. CarInsuranceQuotes.com has partnered with companies like AIG, Nationwide and Progressive to help our customers get the quotes for insurance they deserve at a price they want to pay.
Car insurance benefits are numerous, but more importantly, having auto insurance is mandatory in many states.A common misconception about getting car insurance quotes online is that you will have to spend hours navigating through company websites and give out all your personal information to find the rate you are looking for. CarInsuranceQuotes.com has taken all the hassle out of the process.
All you need to do is enter your Zip code and answer a few general questions and CarInsuranceQuotes.com will search our partner companies to find you the lowest quotes available. And the entire process takes less than five minutes! Besides finding a car insurance quote quickly and easily, CarInsuranceQuotes.com offers other benefits to our customers. Some of these benefits include:• Quote Comparisons- You wouldn’t buy your car without finding out if you can find the same model cheaper and shopping car insurance quotes should be no different.
That’s why CarInsuranceQuotes.com will come back with multiple quotes for you to look at and then make the decision on which company you like the best.• Lower prices- By getting insurance quotes online, you cut out the middle man. This allows companies to offer lower prices to their customers.• Convenience- By shopping online with CarInsuranceQuotes.com you can find the best rates from the comfort of your own home. No more phone calls or personal meetings with pushy insurance agents trying to sell you coverage you don’t need.And these are just a few of the many benefits you will discover when you shop insurance quotes online. Visit CarinsuranceQuotes.com to find more for yourself.CarInsuranceQuotes.com wants our customers to be well informed when they shop for car insurance. That is why CarInsuranceQuotes.com offers informative articles that will help you make the best decision possible on car insurance policies. Some of these articles include:• Car Insurance Resources- Information on different places to get car insurance quotes.• Car Insurance FAQ- Commonly asked car insurance questions people have when they shop for car insurance quotes online.• Car Insurance Tips- Things you can do to lower your car insurance quotes today and for the future.And many more! These are just a few of the advantages of getting your car insurance quote through CarInasuranceQuotes.com. It doesn’t matter if you are looking for insurance for a new car or a better deal on the vehicle you already own, CarInsuranceQuotes.com is your one stop shopping experience when you’re looking for vehicle insurance and more.
Fortunately, finding cheap car insurance quotes from reputable companies is easier than you think. CarInsuranceQuotes.com has partnered with companies like AIG, Nationwide and Progressive to help our customers get the quotes for insurance they deserve at a price they want to pay.
Car insurance benefits are numerous, but more importantly, having auto insurance is mandatory in many states.A common misconception about getting car insurance quotes online is that you will have to spend hours navigating through company websites and give out all your personal information to find the rate you are looking for. CarInsuranceQuotes.com has taken all the hassle out of the process.
All you need to do is enter your Zip code and answer a few general questions and CarInsuranceQuotes.com will search our partner companies to find you the lowest quotes available. And the entire process takes less than five minutes! Besides finding a car insurance quote quickly and easily, CarInsuranceQuotes.com offers other benefits to our customers. Some of these benefits include:• Quote Comparisons- You wouldn’t buy your car without finding out if you can find the same model cheaper and shopping car insurance quotes should be no different.
That’s why CarInsuranceQuotes.com will come back with multiple quotes for you to look at and then make the decision on which company you like the best.• Lower prices- By getting insurance quotes online, you cut out the middle man. This allows companies to offer lower prices to their customers.• Convenience- By shopping online with CarInsuranceQuotes.com you can find the best rates from the comfort of your own home. No more phone calls or personal meetings with pushy insurance agents trying to sell you coverage you don’t need.And these are just a few of the many benefits you will discover when you shop insurance quotes online. Visit CarinsuranceQuotes.com to find more for yourself.CarInsuranceQuotes.com wants our customers to be well informed when they shop for car insurance. That is why CarInsuranceQuotes.com offers informative articles that will help you make the best decision possible on car insurance policies. Some of these articles include:• Car Insurance Resources- Information on different places to get car insurance quotes.• Car Insurance FAQ- Commonly asked car insurance questions people have when they shop for car insurance quotes online.• Car Insurance Tips- Things you can do to lower your car insurance quotes today and for the future.And many more! These are just a few of the advantages of getting your car insurance quote through CarInasuranceQuotes.com. It doesn’t matter if you are looking for insurance for a new car or a better deal on the vehicle you already own, CarInsuranceQuotes.com is your one stop shopping experience when you’re looking for vehicle insurance and more.
Your Car Company Is Dead. Now What?
What exactly is happening to each brand?
Right now, all we know is that GM and Ford are looking to end their ownership of certain brands. That doesn't mean that the brands themselves will necessarily end. It is much cheaper for Ford and GM to sell them to another company rather than close the brands. The best case scenario for many of these brands would be to find a buyer and continue selling cars.
While Ford had some success selling its Land Rover and Jaguar brands to Tata Motors last year, with the credit markets tight, it might be harder for Ford and GM to sell such brands as Saab (in fact, Saab just filed for bankruptcy, indicating that a sale isn't likely) and Volvo. Selling domestic brands like Saturn is even more difficult -- so difficult that General Motors doesn't even appear to be planning on a sale. If that's the case, Saturn will close its doors. Hummer is in the same situation. GM announced that Pontiac will likely continue, but as a small, performance-oriented brand with a trimmed model lineup.
What happens to my warranty?
If you own a car from a brand that's up for sale or is likely to be closed, your warranty will be honored. A warranty is a contract between the car company and you; if the car company is sold, the new owner takes over the obligation. If the car company closes, the parent company is still responsible for the warranty. You may have to travel a bit further to get your car serviced, particularly if your local dealership has closed, but your warranty will continue to be honored.
What happens to my dealership?
As car companies shut their doors, it is likely that they'll take some dealerships with them. Even without car companies dying, dealerships all over the country are going out of business because of slow sales. While no one can say what will happen to every local dealership, there are some precedents for what happens to them when a car company goes under. When Isuzu announced that is was leaving the U.S. market, some dealerships closed shop, while others stayed open as parts and service shops. Many of the dealerships that sold other brands alongside Isuzu stayed open and still provide service and warranty work for Isuzu owners.
Will I be able to get parts and service for my car?
Anyone who has ever had a classic car can attest to the difficulty of finding replacement parts for a car that's no longer made. However, modern car owners are lucky in this respect: many of the car companies on the chopping block share components with models from companies that will continue. So, you don't have to worry about getting parts for your Saturn Aura because it shares many components with the Chevrolet Malibu. Also, because so many of these cars will be on the road for years to come, parts manufacturers will continue to make replacement parts. At the same time, mechanics will have already trained on these cars, so finding a qualified one shouldn't be too hard.
Is now the time to buy from a doomed brand?
While there are likely to be heavy discounts on cars from discontinued brands, a lot of buyers will wonder if the deals are worth taking. The answer depends.
Most of the cars from the brands on the chopping block are good cars -- they aren't going to turn into pumpkins the second the brand closes its doors. But, they may lose their value more quickly than cars from brands that are continuing. If your car company is bought by another company, your car's depreciation should be relatively stable. After all, Jeep has been bought and sold many times, but Jeep models are still popular, which translates into value for owners.
However, if your company closes its doors, your car could depreciate steeply, making that great discount you got at the dealership seem like less of a deal. Still, if you intend to drive the car for years to come, then depreciation is less of a factor. If you're looking for a car you can sell in just a few years, consider a car from a company you know will be around for a while.
Right now, all we know is that GM and Ford are looking to end their ownership of certain brands. That doesn't mean that the brands themselves will necessarily end. It is much cheaper for Ford and GM to sell them to another company rather than close the brands. The best case scenario for many of these brands would be to find a buyer and continue selling cars.
While Ford had some success selling its Land Rover and Jaguar brands to Tata Motors last year, with the credit markets tight, it might be harder for Ford and GM to sell such brands as Saab (in fact, Saab just filed for bankruptcy, indicating that a sale isn't likely) and Volvo. Selling domestic brands like Saturn is even more difficult -- so difficult that General Motors doesn't even appear to be planning on a sale. If that's the case, Saturn will close its doors. Hummer is in the same situation. GM announced that Pontiac will likely continue, but as a small, performance-oriented brand with a trimmed model lineup.
What happens to my warranty?
If you own a car from a brand that's up for sale or is likely to be closed, your warranty will be honored. A warranty is a contract between the car company and you; if the car company is sold, the new owner takes over the obligation. If the car company closes, the parent company is still responsible for the warranty. You may have to travel a bit further to get your car serviced, particularly if your local dealership has closed, but your warranty will continue to be honored.
What happens to my dealership?
As car companies shut their doors, it is likely that they'll take some dealerships with them. Even without car companies dying, dealerships all over the country are going out of business because of slow sales. While no one can say what will happen to every local dealership, there are some precedents for what happens to them when a car company goes under. When Isuzu announced that is was leaving the U.S. market, some dealerships closed shop, while others stayed open as parts and service shops. Many of the dealerships that sold other brands alongside Isuzu stayed open and still provide service and warranty work for Isuzu owners.
Will I be able to get parts and service for my car?
Anyone who has ever had a classic car can attest to the difficulty of finding replacement parts for a car that's no longer made. However, modern car owners are lucky in this respect: many of the car companies on the chopping block share components with models from companies that will continue. So, you don't have to worry about getting parts for your Saturn Aura because it shares many components with the Chevrolet Malibu. Also, because so many of these cars will be on the road for years to come, parts manufacturers will continue to make replacement parts. At the same time, mechanics will have already trained on these cars, so finding a qualified one shouldn't be too hard.
Is now the time to buy from a doomed brand?
While there are likely to be heavy discounts on cars from discontinued brands, a lot of buyers will wonder if the deals are worth taking. The answer depends.
Most of the cars from the brands on the chopping block are good cars -- they aren't going to turn into pumpkins the second the brand closes its doors. But, they may lose their value more quickly than cars from brands that are continuing. If your car company is bought by another company, your car's depreciation should be relatively stable. After all, Jeep has been bought and sold many times, but Jeep models are still popular, which translates into value for owners.
However, if your company closes its doors, your car could depreciate steeply, making that great discount you got at the dealership seem like less of a deal. Still, if you intend to drive the car for years to come, then depreciation is less of a factor. If you're looking for a car you can sell in just a few years, consider a car from a company you know will be around for a while.
Your Car Company Is Dead. Now What?
There are some unhappy gearheads right now. As part of its effort to become profitable, General Motors announced it is shrinking its lineup from eight car companies down to four. On the chopping block are Saturn, Saab and Hummer, with Pontiac likely to continue, but on a much smaller scale. Ford has also announced that it is paring down brands to focus on its core of Ford, Lincoln and Mercury cars.
But as auto enthusiasts mourn the passing of brands that gave us the incredible off-road prowess of the Hummer H2 or the venerable American muscle of the classic Pontiac GTO and Trans-Am, regular Joe Saturn Driver is left with a lot of questions. Here's what you need to know:
But as auto enthusiasts mourn the passing of brands that gave us the incredible off-road prowess of the Hummer H2 or the venerable American muscle of the classic Pontiac GTO and Trans-Am, regular Joe Saturn Driver is left with a lot of questions. Here's what you need to know:
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