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Tag: vehicle warranty

  • Should you take your vehicle to a car repair shop or a dealership? – MoneySense

    Should you take your vehicle to a car repair shop or a dealership? – MoneySense

    The dealership: Pros and cons

    If your vehicle has a problem that’s covered by the warranty, the dealership is your best  option for repair. Dealership service staff are highly familiar with your vehicle, have completed factory-approved training on it, and have access to its service records, warranty history, repairs, recalls, software updates and a network of other dealerships to consult if needed. Dealerships can also easily access manufacturer-provided data and resources to help effect speedy repairs, even for complex issues.

    Having your car serviced at its dealership helps reduce the chances of certain warranty-related issues, which we’ll dive into later. It also helps ensure your car or truck is up to date on all recalls and software updates, which help it deliver a safer, fully optimized drive.

    Of course, you’re free to have your car maintained and serviced wherever you like. Maybe your favourite tire shop handles your seasonal tire change-overs, and you have your oil changed or suspension repaired at a shop near work over your lunch hour. These relatively low-cost maintenance and repair services (and others including brake jobs, air filter changes and exhaust system repair) are widely available at non-dealership repair shops as well, and may be more convenient. 

    Just remember that, depending on the servicing required, the dealership may be your best or only option. For example, new cars are increasingly built with electronics and systems that require special training and equipment that may only be available at a dealership.

    Image by Drazen Zigic on Freepik

    My typical advice to friends and family is to have their vehicle serviced in a dealership setting as often as possible while it’s under warranty, any time a transmission fluid change is required, for any electronics-related trouble, and for any major servicing of an electric vehicle (EV) or hybrid electric vehicle (HEV), and especially for servicing related to its powertrain or electronics. (More on this below.)

    Plus, if you service and repair your vehicle exclusively at the dealership, you could benefit from improved resale value and an easier, faster sale down the line—which saves you time and money. That’s because you’ll be able to advertise your car as “dealer-serviced with all records,” which gives potential buyers added peace of mind that servicing, repairs and updates are current, warranty-compatible and backed by the vehicle’s dealer network.

    In summary, while you don’t have to service your new vehicle entirely under the dealership’s roof, doing so can help streamline things and save you time. Just remember: If you suspect a warranty-covered problem, contact your dealership first.

    PROS

    • Better access to parts
    • Able to service complex and specialty models
    • All required equipment, parts and training
    • Access to manufacturer resources and tech support 
    • 100% warranty-approved parts and labour

    CONS

    • Often pricier than other options

    Justin Pritchard

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  • Buying your first car in Canada: Insider tips from a salesperson – MoneySense

    Buying your first car in Canada: Insider tips from a salesperson – MoneySense

    Can you negotiate interest rates on car loans? 

    If a car is in stock, and you have a good credit score, you might be able to negotiate a good interest rate for your loan—the salesperson may be more willing to make a deal to sell a car already on the lot. On the other hand, dealerships can also mark up the prices of cars, and buyers may be willing to pay more for the convenience of getting one sooner. Doing your research is the only way to know if you’re paying a fair price. 

    Pay off your car loan faster

    Whenever you come into extra money, such as birthday gifts or work bonuses, consider paying off your car faster. Many car loans are open loans, allowing you to make additional payments or settle the loan in full anytime without penalties or fees. (Confirm with your lender.)

    Common car sales tactics to watch for

    Upselling

    The salesperson might attempt to upsell you on additional features and accessories. If you’re financing or leasing the car, they’ll likely focus on the monthly or bi-weekly payment increase rather than the total cost. They might say, for example, that adding features X and Y will increase your bi-weekly payment by just $15—about the cost of a Big Mac combo. (I’ve used this line myself, and yes, it worked.) Doesn’t sound like much, right? But consider whether the upgrade will fit your budget. Let’s say you’re fully financing a $30,000 vehicle in Ontario. The cost with 13% HST would be $3,390. If you signed a six-year loan with an interest rate of 7.48% and made bi-weekly payments, the total interest would be $8,222.21. If you added a feature or an upgrade that cost another $15 per bi-weekly payment, that would add $2,340 to the cost of the car, plus $641.33 in interest over the life of the loan.

    Skip the unwanted add-ons

    Evaluate the necessity of extra offerings like extended warranties or upgrades, especially if you have a strict budget. Request an itemized list of all charges and look for unexpected costs.

    “Good cop, bad cop”

    While many salespeople are genuinely helpful, informative and valuable in the car-buying process, that doesn’t mean they won’t use psychological tactics to persuade you to buy. During test drives, I’d tell customers a little bit about the car and then focus on personal lifestyle questions that I could bring up later in the sales pitch. For example, if I found out that they commuted to work, I’d say something like “If you’re here, that means you don’t want to spend hours a day taking the bus to work and back, right? Let’s work together and write a deal today.”

    Sales tactics might involve a coordinated strategy. For example, when negotiating with a customer, my sales manager and I employed a “good cop, bad cop” tactic where he would assume an aggressive attitude, while I had an understanding, sympathetic demeanour. My goal was to build rapport and gain the person’s trust, in contrast to my manager’s near-hostility. This was a technique I was taught by someone with more than 20 years of industry experience—and most of the time, it worked.

    Don’t bend under pressure

    A salesperson might try to rush or pressure you into buying. This may be amplified if car inventory is low, but stand your ground and remain calm. 

    What can you negotiate besides price? 

    As part of your deal, you can ask about perks you want, such as complimentary oil changes for a year, car accessories, winter tires, window tints or all-weather floor mats. But if you want to attempt this, research the costs of these add-ons before you visit the dealership. (Read further tips on planning for a financial negotiation.) 

    Get it in writing

    If a salesperson makes generous offers like free oil changes or extended warranties, get them in writing. Documenting all promises can help avoid misunderstandings.

    It may be hard to trust your instincts during negotiations, as emotions and high-pressure sales tactics can cloud your judgment. However, thorough preparation can help you tell if a deal is too good to be true—or not good at all. Don’t hesitate to seek a second opinion. Above all, stay calm and confident, and be willing to walk away if you’re not comfortable with the terms of the deal. 

    Key questions to ask before signing a car deal

    • What is the final out-the-door price, including all fees and charges?
    • Are there additional warranties or protection plans added to the deal? Can I opt out?
    • Can I see a breakdown of the financing terms and monthly payments?
    • Are there prepayment penalties if I decide to pay off the loan early?
    • Can I review all the documents and contracts before signing?

    Check for hidden fees

    Look for hidden or tacked-on fees not previously discussed during negotiations, such as excessively high administrative charges. Carefully review all documents, question unfamiliar charges, and don’t hesitate to call off the deal if you’re uneasy. 

    The best first car to buy

    Buying your first car in Canada is an exciting milestone. By following these insider tips and navigating the car market with caution, you can make informed decisions and find the best first car to buy for your needs, preferences and budget. 

    If you have a particular car in mind and you’re not in a hurry, it’s worth thinking ahead by up to a year, if not more. And if you’re open to variations in colour, model or trim, this flexibility can work to your advantage. 

    Rachel Guanlao

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  • Repairing a CVT transmission failure on a Toyota C-HR – MoneySense

    Repairing a CVT transmission failure on a Toyota C-HR – MoneySense

    1. The owner of a 2018 C-HR that experienced a failure at just over 100,000 kilometres and five years received an estimate of $10,000 to replace the transmission with a new one. After he complained, the repair cost was reduced to $4,000, with Toyota Canada and the dealer making up the difference.
    2. Toyota Canada rejected a claim for a transmission failure at 138,000 kilometres on a 2019 C-HR; the Montreal-area dealer estimated the repair at slightly over $10,000.

    An alternative to replacing the transmission: A less expensive repair

    If no help is forthcoming, an alternative may be to find a used transmission from a wrecked C-HR and have it installed, for a final price in the range of $4,000 to $5,000. The risk: a replacement used transmission may well develop the same defect as your original transmission over time—that’s a risky bet if you intend to hang on to your C-HR for many more years.

    A third way to fix a CH-R transmission

    I checked with Alain Groulx, a transmission expert who has helped many members of the APA resolve transmission failures. Here’s his take on the transmission failure in your C-HR:

    “Based on the information provided, it seems to be an issue with defective bearings inside the transmission. It’s a shame that dealers are recommending replacing the entire transmission at the customer’s expense instead of trying to repair it. By replacing a complete transmission, the warranty is carried by the manufacturer, so there is less risk for the dealer, but it comes at a heavy price to the customer.

    “A good transmission rebuilder may be able to open and repair the transmission. We had similar issues with the Jeep Patriot that used a CVT transmission on some models. The differential carrier bearings experienced many failures at low mileages; we were able to source and replace the bearings at a fraction of the cost of a new transmission.

    “If this is a recurring problem, Toyota could make a bearing set available as a recommended repair kit. That has the potential to drop the repair price to about $3,000, if the problem is picked up early before a complete bearing failure ruins other components inside the transmission. Sometimes bearings are available from independent suppliers like General Bearing Service (GBS) or similar suppliers. In order to know if they are available in the aftermarket, the transmission would have to be dismantled to get the part number on the defective bearing. In many cases, the bearing is made exclusively for the manufacturer and is not available unless the automaker offers it as a replacement part independently of a complete transmission.”

    “Broken telephone” effect: Documenting your transmission failure complaint to prepare a claim

    Information sometimes gets lost in translation when a customer reports a problem. In your case, a suggestion to check for “a whine from the engine” may have been enough to throw the technician off the trail. Or the road test conducted during the warranty period was not done at sufficient speed or for enough time to elicit the noise you were hearing.

    Here are some steps you can take during the warranty period to improve the odds that issues with your vehicle will be addressed and avoid the “broken telephone” effect:

    1. Ensure your concerns are recorded accurately. Focus on symptoms over solutions, unless you are already familiar with the problem and its repair.
    2. If possible, identify a location on the vehicle to check more carefully, the speed, road conditions, warm/cold engine and other factors that appear relevant.
    3. Use your cellphone to capture intermittent problems that magically seem to disappear when you take your vehicle in for service. For example, record abnormal sounds that come and go, and take photos of warning lights that come on temporarily.
    4. Obtain copies of repair orders, even for no-charge inspections, and retain them.

    In my experience, helping consumers with resolving complaints, you can go back about a year relatively successfully for a problem that was reported during the warranty period but wasn’t addressed. To do that, having complete service records will improve your chances of a favourable outcome significantly.

    Making your case if your claim is rejected

    A transmission, which is a lifetime component of a vehicle, should last for much more than six years or 110,000 kilometres, as long as it’s maintained and isn’t abused. Almost all the automakers that introduced CVT transmissions eventually extended the warranties on some of them past the original “five-year, 100,000-km” powertrain warranty to address durability concerns.

    If Toyota Canada isn’t forthcoming with assistance, Ontario lawyer Michael Turk says you could sue the manufacturer, basing your claim on the implied warranty of fitness under the province’s Sale of Goods Act:

    You will need to obtain an expert report from a third party, typically a mechanic or transmission expert who will be able to confirm that the bearing is the cause of the failure, and that the failure occurred as a result of a manufacturer’s defect in the transmission. With the expert’s report in hand, your next step is to file a claim in the Small Claims Court for the cost of repair and any additional costs you have incurred as a result of the loss of use of the vehicle arising form the transmission failure. You could also argue that the vehicle exhibited problems with the transmission while it was still under the manufacturer’s original warranty and this was brought to the attention of the dealer at the 88,000-kilometre service while still under warranty. Lastly, when choosing an expert, it is important for the expert to be able to be qualified by the Court as an expert and that your expert is willing to come to court and testify on your behalf. This process has become easier and less disruptive to those who provide expert evidence as the courts have transitioned to a virtual format.

    Given that the complaints received to date are serious, I invite other Toyota C-HR owners with an experience to share about their vehicle’s transmission to contact the APA. This will help the association identify a pattern of failures and determine what actions Toyota Canada is taking to address complaints.

    George Iny

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