Extend The Life Of Your New Or Used Car

You don't think much about your car do you? Your car sits outside 24/7, 365 days a year in all extremes of weather. You routinely drive it at speeds that exceed 70 mph. You stop, start, stop, start through city traffic. You sit idling in traffic jams day after day. Yet, you expect your car to start every time you get into it and turn the key. 

The best thing that you can do to extend the life of your car, and to potentially save yourself a bundle of money, is to have your car serviced on a routine basis. All car manufacturers have a schedule of recommended services for each vehicle they sell. Follow this schedule. The best place to have work done on a new vehicle that is still under warranty is the dealership. 

It's a bit different when you have an older, out of warranty car. At this point you can make a decision to continue to use the dealer for service, or find yourself a local mechanic. 

The first rule of thumb is to have the oil in your car changed every 3,000 miles. This is the simplest and most important part of routine maintenance for your car. At that time, whether you go to a "speedy" oil change business or to your mechanic, the technician will take a look at the overall condition of your engine. They'll check belts and hoses and fluid levels of your transmission and brakes. They'll check your air cleaner and the condition of your tires. Some of these drive through services also offer add on's such as engine cleaning and radiator flushes. If they think they see something that could become potentially serious they will tell you about it and suggest you take your car to a mechanic. 

Cars have really changed over the years and most technicians use computers to diagnose problems. You'll need to be able to describe the problem to the mechanic. They'll need to know things such as when you first noticed the problem and exactly under what condition it happens. Does it happen when the car is cold, or after it warms up? Does it happen when you're at an idle or when your accelerating? If you don't use the same mechanic have a copy of your car's service record with you so that the new mechanic can see what maintenance been done in the past. It's best to find a mechanic you're comfortable with and stay with him. Knowing your car's history can go a long way towards helping him diagnose and fix a problem. 

Learn to listen to your car. If you hear an unusual noise, notice a change in it's performance or handling take it to your mechanic. 

About the author:

This article courtesy of http://www.bmw-owners-guide.com

Driver Education - Auto Insurance Tips

From the beginning, starting with your first contact with whatever is connected to driving and cars, you must have heard of the utmost important aspect:the car insurance. To a certain extent the driver education must deal with this aspect which is vital for the driver and the car in itself. 

There are many companies specialized in this field but you should know that there are many of them which make certain advantageous offers such as discounts for the good grades As and Bs, yet, for that you need to qualify;you should get in touch with your insurance company for it.Some discounts are given also for the application for some driver programs, these being quite advantageous too. 

In addition, if you can make a choice, replace the new teen driver or family driver on the oldest and least expensive automobile. This can and will save you the rates. Whenever thinking about buying a new or second-hand car, make sure you get in touch with your insurance company to see if the rate will suit you and your finances. It is likely for you, without checking with the insurance company, to think over a car which is too expensive for you or just not suitable. As general piece of information, you should know that sports cars or other high-cost cars are due to have higher rates, thus disabling you to pay in time. It is also important to know what you buy. If you want to buy a car, it is utmost necessary to know what that car can do. These technical aspects can be revealed to you by means of a driver education course or just specialized magazines, provided you already bear the basic information. 

Drive slower, save the planet!

The environment is a hot issue that we just can’t afford to ignore any longer. To some, being environmentally aware is a way of life, a necessary and fundamental aspect of existence. To others being ‘green’ is something to aspire to, a lifestyle that with a bit of guidance could be achievable. 

Young people have been brought up in a culture of ecological revelations, such as the depletion of the ozone layer and melting polar ice caps. We all know that these things are still happening yet we’ve still got a long way to go before the impacts of modern society on our planet are decelerated. Our parents weren’t particularly clued up about the effect that peoples’ actions have on their environment and recycling was certainly never an option in many houses in the 80s and 90s. However, these days we do have the resources and the knowledge to make little changes that can improve the planet for the better. If we can slow down on the road then we might be able to slow down climate change. 

High levels of Co2 emissions are one of the biggest influencers of climate change and environmental damage. Exhaust emissions contain a myriad of chemicals which clog up the atmosphere and cause long term damage to our surroundings. Aviation contributes to a large proportion of the damage. Each jet requires hundreds of thousands of gallons of fuel to get to its destination. Short of getting to your holiday resort by rail, a bit tricky if you’re off to the Maldives, there is little that you or I can do about aviation emissions. However, drivers can make a massive difference to the environment by taking a few steps to reduce their emissions and help reduce harmful pollution. 

You can reduce the amount of fuel you use by up to 25% by changing some of your habits. Driving is expensive, with the cost of car insurance, road tax and fuel to consider. It’s not difficult to alter your lifestyle; we owe it to our future offspring and more importantly right now, we owe it to our pockets! Whilst we may not live long enough to see the benefit to the environment we can feel the immediate benefit to our pockets. 

By being slightly more conscientious drivers we can all make a huge difference. Follow these tips from www.hootcarinsurance.co.uk and you’ll soon help protect the planet and feel the immediate payback in your pocket. 

• Keep a steady speed when driving; by reducing the use of your pedals you reduce the use of fuel. 

• Anticipate conditions, and accelerate and decelerate efficiently. This is safer and uses less fuel. It is also proven that you won’t get to your destination faster by speeding. According to Earteasy.com the most fuel-efficient speed for your car is roughly 55 mph, or 90 km/h. Increasing your speed from 55 mph to 75 mph boosts your fuel consumption a stunning 20 percent! 

• If you are in traffic or caught behind railway gates, then turn off your engine. Idling uses up a great deal of fuel especially when some train gates stay down for as long as ten minutes. 

• Keep your tyres pumped up to the correct level. This will save you up to 4% fuel. 

• Maintain your car and change the air filter as recommended by the manufacturers’ guidelines. 

• If at all possible, car share to work, this will save you money and give you a clear conscience! Some companies arrange car share schemes as do some local councils. See www.nationalcarshare.co.uk and www.liftshare.co.uk for more information. 

• Walk to work if you live nearby. Not only will this keep you fit but you’ll also save fuel and money. 

• Buy a car with a small engine. This will not only cut emissions but also means really cheap car insurance, cheaper tax and manoeuvrability in busy towns. Driving a 4x4 means 50% less fuel efficiency, so unless you are a farmer and regularly go off road, there really is no need to drive a gas guzzling vehicle in urban areas. By the way spray on mud is a dead giveaway! 

So, we can all cut our costs and save the planet at the same time by making a few changes to the way we drive, but what about the future of fuel? Surely driving more slowly can’t be the only solution? 

The future of travel 

There are some innovative new energy solutions, new engine designs and hybrid car concepts which are set to take off in the years to come. 

Hybrid cars are vehicles that have an ordinary combustion engine combined with another energy source such as batteries or electricity. The alternative energy source takes over from the engine when it is inefficient, such as during long slow drives. These hybrids are extremely efficient and half as polluting as normal cars with petrol engines. The good news is you don’t even have to change your beloved car because it can be converted as long as it’s less than six years old. This can be costly but long term it could save you money. There are also several government schemes running that can help you to convert your car. Some manufacturers have already caught onto the benefits of hybrid vehicles. For examples of hybrids look at the Toyota Prius, the Ford Escape and the Honda Accord to name but a few. 

Electric cars may be the way ahead for city dwellers. With no emissions and using a quarter of the energy consumption of a similar sized petrol car they may revolutionise driving in the longer term. Although the cars currently on the market only drive at a maximum of 40 mph, they are exempt from tax, some congestion charges and great news for young people… they are in the lowest car insurance group. After the initial outlay of around £8,000 the car is cheap to run and extremely eco-friendly. 

The future of fuel 

Sulphur free fuel: We can expect to be able to buy this by 2008, in fact this will become compulsory by that date. 

Biodiesel: This is a blend of 95% low sulphur diesel and 5% rapeseed oil. This reduces CO2 emissions by as much as 5% and can be used in an engine that hasn’t been converted to this type of fuel. 

Durable and Long-lasting Radiator Parts now on sale at Parts Train

Your car radiator is the primary cooling mechanism for your engine. Parts train's Radiators are a simple and elegant solution to the need for engine cooling. Parts train's Radiators are mostly made of aluminum. Light and strong, aluminum is great for making radiators. It is the material of choice for most of today’s radiators. Light and intelligently designed, aluminum radiators are standard on many of today’s new cars and trucks. 

A small leak on your Radiator can be indicating a larger problem. A cooling system that runs low too often is less efficient and you can damage your cooling system by letting the coolant level get too low. Too little coolant flow can be bad, but at normal and high operating temperatures, the rate at which coolant moves through the radiator does not change the amount of heat that is dissipated by the cooling cores. The amount of cooling will not be reduced even when the mean temperature of the coolant rises and flows faster. 

Many cheap coolants do not have the corrosion protection, PH balancing, or sediment prevention that the top-quality coolants do. These low quality coolants do not have the same additives of name brand coolants. To help your engine stay cooler, rev up your engine slightly when you are overheating in traffic to help push more air across the cooling cores and more coolant through the engine. 

Driving Safely in the Dark

Safety is a primary concern for all drivers, especially at night. Although there are fewer cars on the road, most fatal car accidents happen at night than any other time of the day. Our ability to see the road ahead is seriously impaired at night. Darkness can dramatically alter the driver's ability to cope with even the most normal driving conditions. As we are more vulnerable to dangerous road situations at night or in low visibility, we should double our preparedness, alertness and common sense when driving at night. Preventive maintenance is one of the best ways to protect ourselves from potentially dangerous situations on the road. Here are some of the most important points to consider when driving in the dark.

The most important difference in night driving is visibility. At night, we become completely dependent on artificial sources of light to help us see and show us where we are going. Highway signs, pedestrians, and other vehicles are more difficult to see at night. Thus, lights, mirrors, and windows are doubly important at night. We should maintain clear, clean and scratch-free mirrors and windows. They should not be clouded by steam, frost, water droplets or tarnished by cracks or scratches.

Your entire car's lighting equipments must be in good condition to ensure safety when driving in the dark. Headlights, Tail Lights, Corner Lights , signal lamps, license plate lights and others all play a big role in your safety when driving at night. Your lights should be turned on during the night especially during periods of rain, snow, hail, sleet or fog. Make sure that your headlights are properly aimed. Have it checked by a professional to make sure that all the lights work. Keep your headlights and your windshields clean. Remember that your lights are your only communication with other drivers on the road. Make sure that your windshield is clean, clear and unobstructed so that you can see what's ahead of you. One of the most hazardous habits that that drivers do during the night is "overdriving" the headlights of their vehicles. 

Do You Want to Increase Your Car’s Resale Value? Here’s How!

If you are planning to resell your car in the future and buy a new and more advanced model, then you have to exert more effort in keeping it in good shape and excellent driving condition. Even if it’s already old, you can sell it at high price if it looks and performs like new. Anyway, let’s go straight to the question: how do you improve its resale value?

The truth is, you have a lot of options in preserving its good shape and condition, but there’s one store that can completely answer your question, Auto Parts Deal. Here, a great variety of replacement and aftermarket auto parts is available for your car’s proper maintenance and upgrading. Yes, there are thousands of other online auto parts stores that provide various kinds of aftermarket products, but there are few, which meet your needs and wants and help you save at the same time. This online store definitely does both.

Aside from regular check up like most of us do to safeguard our health, you need to replace some of your car’s parts and mechanical components even if they are still working to upgrade its performance and style. If you have an old Ford F-150 truck for example, which you frequently use to haul and transport heavy cargoes, you have to continuously upgrade its performance parts so it can always perform highly challenging tasks. Ford truck parts are known to be exceptionally tough but it doesn’t mean they don’t require much attention and care.

Among the auto parts that require your utmost care are the car wheels and tires. These parts are closest to the road and their quality affects significantly your vehicle’s ride quality and handling. Replace your worn out tires and wheels with top quality replacement wheels offered at Auto Parts Deal. Here you can find the most dependable line of replacement Ford wheels, Nissan wheels, Jeep wheels and Chevrolet wheels.

For your added safety, this one-stop auto parts store also offers durable and high quality auto parts like Chevrolet bumpers, Mazda mirrors, Toyota tail lights, BMW headlights, and Dodge fog lights. All these parts are helpful in keeping you away from accidents, which of course excuses no one and no vehicle. It’s always better to be on guard and prepared for any road accidents that might happen. Also, check out the store’s top quality safety Ford truck parts,GMC truck parts, Dodge truck parts and Toyota truck parts.

Simple things like accessorizing your vehicle can go along way. This can help you sell your car with a worthy price tag in the future. But more than this, it makes your ride more comfortable, more fashionable, more convenient and safer, which in effect reduces a lot of stress in driving. So be wise, get replacement parts only from a dependable dealer like Auto Parts Deal.

About the author:
As a manager of one of the largest auto stores in Springfield,Massachussets, Sarah has extensive expertise on auto parts and automotives in general. This 42 year old is a certified car enthusiast. 

Do Your Part For The Environment, Your Health, And Your Wallet

Vehicle owners nationwide have the same complaint; the high price of gasoline. It's as if you're going to work just to pay for the gas to fill up your tank. Everyone knows when the price of oil goes up, the cost of everything else rises. And the price of keeping your engine running smooth always puts you back in the hole financially. 

People who dwell in larger cities constantly breathe in poisons released in the air. Research on this pollution problem is well established. Pollutants coming from cars and trucks are responsible for lung disease, lung cancer and asthma. But that's not all. New research has shown that the poisons coming from our cars and trucks are responsible for increases in many types of cancers, heart disease, and even Alzheimer's disease. 

An Easy Way to Help Stop Pollution and Save Your Lungs 

A good suggestion would be to find a product that reduces toxicity in the air, while extending the life expectancy of your car's engine. Ideally, the product should be effective when used in small amounts and be unique (can be used in gasoline, diesel, RFG, biodiesel, and propane). This product is known as a fuel catalyst, which has been used successfully for over 9 years by thousands of people, as well as city governments, large trucking lines, railroads, farming, and boating companies. 

Save Money While Improving Your Mileage 

Your product should save you money by reducing fuel consumption and engine maintenance, in addition to the positive environmental effects. If your product can supercharge your gas, you'll spend less but drive further on every tank of gas! Getting up to 35 ncrease in gas mileage would certainly be worth your money and time. Just make sure that your product is affordable, yet able to work in all gas vehicles. 

To recap, you should look for a product that (a) doesn't poison our air, (b) keeps our lungs healthy and strong, and (c) stop wasting money on gas and engine repair. Let's keep Planet Earth fresh for our children and grandchildren to enjoy. 

Copyright (c) 2005 by David M. Rolle' 

About the author:

David M. Rolle' is a Franchise Business Owner and understands the value and importance of a clean and healthy environment. For more information on fuel catalysts for your car and other gas engines, go to http://tinyurl.com/ch2sh.Also, you can claim your FREE Special Reports at USFuelsavers@yahoo.com 

Do you have enough car insurance?

Many people who reserve a rental car show up to the counter with little thought given to the “what if's” that could result from them driving a car that is not their own. You wouldn't think of driving your own car without coverage, so take a few moments to consider how you will make sure that your rental car is covered. Here are 3 steps to take to ensure you have adequate coverage. 

1. When you're calling the rental car company for a quote, find out how much the coverage costs and what it covers. Their rates for insurance/coverage may be higher but they also offer the least hassle, since you may not have to file a claim on your own insurance. Many car rental companies have a couple of options, including buying down the deductible to a hundred dollars (or so, depending on where you live) or even to zero. 

2. Contact your car insurance company. They may already cover you for rental cars in certain situations. For example, if your car is in the shop, they may automatically transfer your coverage and deductible to a rental car. This is a replacement-only type of coverage because they are covering you on a different car. For an additional cost, you may be able to purchase either a temporary or ongoing rider (depending on the insurance company) to cover your rental car even if your car is not in the shop. This is considered a non-replacement-type of coverage since you will need coverage on both cars because they potentially could both be driven. 

3. Contact your credit card company or check out the Cardholder's Agreement. Your credit card may cover you for rental car insurance. Check to see that they cover you in your specific situation. For example, there are certain cars they cover (some don't cover trucks or SUVs) or they may not cover you depending on where you drive or how long you have the car. 

Armed with this knowledge, you can make an educated estimate of what the costs are to ensure that you are fully covered on your rental car. After all, you want to have peace-of-mind when you're on your next trip. 

About the author:

Jeff Lakie is the founder of Insurance Information a website providing information onInsurance 

Do you have enough car insurance?

Many people who reserve a rental car show up to the counter with little thought given to the “what if's” that could result from them driving a car that is not their own. You wouldn't think of driving your own car without coverage, so take a few moments to consider how you will make sure that your rental car is covered. Here are 3 steps to take to ensure you have adequate coverage. 

1. When you're calling the rental car company for a quote, find out how much the coverage costs and what it covers. Their rates for insurance/coverage may be higher but they also offer the least hassle, since you may not have to file a claim on your own insurance. Many car rental companies have a couple of options, including buying down the deductible to a hundred dollars (or so, depending on where you live) or even to zero. 

2. Contact your car insurance company. They may already cover you for rental cars in certain situations. For example, if your car is in the shop, they may automatically transfer your coverage and deductible to a rental car. This is a replacement-only type of coverage because they are covering you on a different car. For an additional cost, you may be able to purchase either a temporary or ongoing rider (depending on the insurance company) to cover your rental car even if your car is not in the shop. This is considered a non-replacement-type of coverage since you will need coverage on both cars because they potentially could both be driven. 

3. Contact your credit card company or check out the Cardholder's Agreement. Your credit card may cover you for rental car insurance. Check to see that they cover you in your specific situation. For example, there are certain cars they cover (some don't cover trucks or SUVs) or they may not cover you depending on where you drive or how long you have the car. 

Armed with this knowledge, you can make an educated estimate of what the costs are to ensure that you are fully covered on your rental car. After all, you want to have peace-of-mind when you're on your next trip. 


About the author:
Jeff Lakie is the founder of Insurance Information a website providing information onInsurance 

Buying new vs. used cars.

New vs used. Which car is right for you? Consider the following. 

Owning a brand new car is exciting. But financially speaking, it makes more sense to buy a used car. As soon as you drive a new car off the lot, it loses a great portion of its value. This is because your car is no longer “new”. 

New cars lose about 40% of their value within 3 years, then depreciation starts to slow down. Why not buy a used car and allow someone else to take that depreciation hit? 

The previous owner will have absorbed the steepest part of the depreciation cycle. At that point the costs of owning and operating the car will be reduced. The money you save on depreciation will surely go a long way. 

Another benefit of buying used is lower cost. By buying used you pay less. You will also save on financing costs, insurance premiums, registration and licensing fees. You don’t have to worry about paying sales tax. 

As with everything else there are a few downsides to buying a used car. There are greater chances for costly unwarranted repairs. You may very soon have to do major maintenance on your car, including replacing tires, battery, brakes, muffler, and perhaps even the transmission. 

Buying A Used Or Second Hand Car In UK

If you are considering the purchase of your next used or second hand car, you might at this point be very nervous. Its not a purchase you make regularly like going to the supermarket for your monthly shop or buying that next outfit for hitting the town. Its something you might only do every three or four years sometimes longer. 

Some popular makes are: 

Audi, Alfa Romeo, Bmw, Citroen, Ford, Fiat, Honda, Hyundai, Jaguar, Jeep, Kia, Land Rover, Lexus,Mazda, Mercedes-Benz, Mg, Mini and Mitsubishi. 

Confused? Who should I buy it from? A large garage group, a medium sized independent, a small independent, or a back street garage? The Answer? Whichever of these have the vehicle that you want! (With certain reservations which we will explore later.) 

A common mistake is to go out in the car and visit all local sellers in the hope you see something you like, if you do this you will be at your most vulnerable and may well find that you buy something on impulse and may not in the long term be the best for you. 

Buying A Used Car - The Wise Way!

I have always purchased my cars used. And each time, I got a great deal. Don't think I counted on luck, though - no siree. There are a few "musts" for making sure you don't end up drinking "lemon"-ade. 

Spending a little time now may save you serious money later. Check Consumer Reports on the safest cars out there. Looks are one thing, but don't ignore safety. 

Go to a reputable car repair shop and ask if you can bring the vehicle by for a look-over. While you're there, ask what cars they have to repair most often. Take heed. Also, ask what the inspection includes, how long it takes, and the price. Always get this information in writing - just to be safe. 

Once the vehicle has been inspected, ask the mechanic for a written report with a cost estimate for all necessary repairs. Be sure the report includes the vehicle’s make, model and VIN. Go over it with a fine-toothed comb and make sure you understand every item. If you decide to make an offer to the dealer after approving the inspection, you can use the estimated repair costs to negotiate the price of the vehicle. 

Are you going to purchase from an individual? 

Buying a New Sports Car – Twelve Tips To Avoid Financial Sticker Shock

Nothing (well, almost nothing) can compare to the thrill of driving a road-hugging high performance sports car. Instant steering response. Power at the exact nanosecond you ask for it. 

Then, if you have one of the sexier models, you’ll attract attention on the road, filling up, and in the shopping mall parking lot. 

Yes, you can pretend you’re driving the Autobahn with the wind blowing your hair. But beware of state troopers just waiting for an “arrest me red” entry on their ticket issuing track record. 

Before You Fall In Love . . . 

Before you step into that showroom and fall in love, consider the following practicalities: 

1) How much do you want to spend? $20,000? $30,000? Or more? 

2) What’s the tradeoff between performance (power) and gas mileage? Higher performance usually equals less gas mileage. 

Does the vehicle use premium gas? Right now, the difference between premium and regular is 20 cents per gallon. At 20 miles per gallon and 15,000 miles per year, the cost differential is $150. 

Buying a New Car? Why Not Modify Your Old One?

Ready to buy a new car? If you still have doubts about it why not just consider modifying your car or giving it interior and exterior upgrades? Although this may cause you to spend thousands of dollars, it’s much cheaper than purchasing the latest in the market. Giving your car a new look, improving its driving potentials and enhancing its utility is so easy and a lot cheaper nowadays. If you’re after changing your typically boring driving routine, upgrading your car’s interior and exterior features can save you from—oh well, boredom.

Changing the way your car looks can be just as exciting as buying a new vehicle. But apart from choosing which car to buy, or which auto parts to purchase or add to your car for that matter, you need to choose a reliable and trusted auto parts dealer that cannot only supply you with your exact needs but can help you save big. Don’t worry because there’s one store that can do these at the same time, Auto Parts Deal. Replacement parts for Ford parts,Chevrolet parts, GMC parts, Toyota parts, Volkswagen parts and a whole lot more are readily available. All these premium quality products can be purchased at very affordable deals.

Most auto mechanics and professionals would recommend buying replacement or aftermarket auto parts only from one source for this will ensure the parts’ compatibility and exactness. And not only that, it can help you save time, efforts and money especially on shipping. Installing those new parts can also be easier and quicker if you get them from only one supplier. Auto Parts Deal, however gives you more than these benefits. Added benefits such as security, affordability and convenience can all be enjoyed upon purchasing any of the products. 

Buyers guide for aftermarket replacement car seats.

Aftermarket replacement car seats come in a variety of colors and styles. This can be a tricky and potentially costly decision to make. But it does not have to be. This is no different than buying anything else. Just do a little research. We are going to provide a few hints to make your experience a little easier. 

1. Buy from a reputable dealer.One way to check this is to email them and ask a few questions before you purchase. How long in business, who their supplier is, what support do they offer etc. 

2.Although you might be tempted to buy the lastest fad such as new designs and such you are better off staying with your original color and design as this will preserve the value of your vehicle. 

3. Before you purchase make sure they guarantee that your new seat covers fit with a money back guarantee. 

4. If you are not installing your new seat covers yourself, find some one in your area to do this before ordering. This is because some don't like to do this if you do not purchase from them. 

5.If you are doing the installation yourself make sure some concise instructions are included.Some also provide online manuals to follow. 

6.If you are a do-it yourself type person replacing your seat covers should not be a problem.Basic hand tools are required. 

7.Check with your supplier to see what is included with your purchase and to see if any additional supplies are needed. 

By following this short outline this will make your purchase and installation of aftermarket replacement car seats go much smoother. 

About the author:
High quality seat covers at discount prices.You can now buy seat covers online. For more info visit: http://buy-seat-covers-online.partnersinsuccess.net/ 

Body Shop, How To Value One?

Many smaller body shop owners have asked, “How do I appraise my body shop?” In the last month I have been asked to do two appraisals on body shops. The first appraisal was to assist in partnership dissolution; the second appraisal was for marriage dissolution. (That is what the attorneys call a divorce.) Would you like to know how to appraise the value of a body shop business? 

Before we begin, I would like to make one comment. Whenever a CPA has done an appraisal of a body shop, I find that their opinion of value is much greater than the actual value the market place will pay. This is not because the CPA’s do not know what they are doing because they do; it is just that the market place places a much higher risk on buying a body shop than the accountants do. The following is an excerpt from one of those appraisals.

THE THREE WAYS TO APPRAISE A BUSINESS 

1. The ASSET VALUATION METHOD. This method is basically used when a body shop does less than $400,000 a year in gross income and the seller is making wages, but no real profit above what he would be paid if working for another. On this size business, a buyer is willing to pay for the assets of the business but little or nothing for goodwill. The equipment is usually worth between $50,000 and $100,000, depending on how many frame machines the business owns and how nice a spray booth the business owns. 

I have seen some specialized shops sell for more than the above number because they have a truck spray booth or another business attached to the main business. Examples of attached business might be an auto repair shop or towing operation. Also the location, size and real estate rental amount will influence the value of any business, to some degree. 

2. The second method, I call the GROSS SALES METHOD. This is used when the sales are over $1,000,000 a year but the profit is unknown or financials are not available or reliable. Because of experience, a Body shop buyer can make reasonable estimates of future profits, if they have some basic information. The basic information includes rent, source of business (DRP, STREET, or a CAR RENTAL AGENCY), and the desirability of the location. 

When this method is used, the value appears to be about 3 months sales or 25% of the last 12 months sales. This method is not very reliable on businesses with sales of less than $1,000,000, because the question of being profitable is very questionable. Why is this breaking point $1,000,000 in annual sales? Multi-store buyers will have well paid managers, so many figure their breakeven point is around a million. 

Less than $1,000,000 in sales is not even worth their time. Of course we know that there are exceptions to the rules. Some of the exceptions are A. when a new location will be a satellite store to a bigger location. B. The buyer must have a location in a specific area to please a DRP. C. To get rid of a competitor. 

3. The third and most used method of evaluating any business, including body shops, is the NET PROFIT METHOD. This method is based on the idea that a business is worth what it generates, in profit and benefits, for an owner. Body shops, like so many other small businesses, often do not show a profit, at the end of the year. Strange, how so many businesses of different sizes all just happen to end up with little or no profit. What I find really amazing is that the IRS doesn’t audit more businesses then they currently do. 

As a result of showing poor profits, on the books, it becomes very difficult to use the NET PROFIT METHOD for appraising many small businesses. Luckily for me, I can quite often find hidden profits, of a business, by adding to the books, items we call owner’s benefits. These include: Owners salaries, if a corporation. Personal autos and all the related expenses used by the owner and his family that are written off against the business, fife insurance and health insurance for the owners. 

Depreciation is also a hidden profit that is usually added back in to the taxable profit to help build up the total owners benefits. And lastly, personal utilities, phones, trips, etc. that are deducted on the tax return but are not really costs to run the business. 

After saying all this, what is the value of a business based on the Net Profit Method? Automotive businesses, especially auto body shops appear to sell for between 1.5 to 2 years adjusted profit (book profit plus owners benefits added back in). Larger body shops doing over $2,000,000 in annual sales may sell for much more, because the owner is making much more money, than just his salary and a buyer will consider part of the profit a return on his financial investment. 

Very large body shops that are being bought by public corporations are evaluated primarily on their return on investment (Percentage profit that is being made on the cash purchase price of the business.) These big buyers can afford to pay between 5 times and 10 times annual net profit, after deducting all officers’ salaries and perks. 

Best Negotiating Tips When Buying An Used Car

Being a good negotiator doesn't have to be difficult. Sooner or later everyone has to negotiate with someone if they want to get a good deal on a purchase. 

When you are trying to negotiate with a car dealer, you should know that they are very practiced in the art already. You will need to know how to get through their car speak in order to be successful. 

Since you now know how to calculate your offer and already know what the dealer paid for it, you should get a copy of the paperwork from a friend that recently bought a car, so that you can become familiar with what you will see on your paperwork. They are all generally the same. 

If you've followed the above mentioned tips, you will also be pre-approved for a loan. The key is for you to get in and out of the dealership as quickly as possible because the salesman will definitely find more loopholes to up your charges if you stay. 

Here are a few tips to successful negotiating. 

· Remain positive and confident 

· Don't talk down to your opponent 

· Show up prepared and ready to counter anything that may come up 

· Bring ads from other dealerships with you as an extra weapon 

· Finance your loan before you arrive at the dealership so as to avoid paying unnecessary extra fees 

· Bring a friend with you for extra support 

Something that you should look out for from salesmen is the extra little tricks that you will likely encounter that will try to force or rush into a buying decision. 

You have to remember that they are trying to negotiate you into paying more money just as you are trying to negotiate paying less. Here are some of the things that you can expect to hear from them. 

1. These cars are flying off of the lot. It may not be available for the same deal tomorrow. (Threaten to leave and they will ease up and try to change their strategy) 

2. This deal is only good for today. If you come back tomorrow I can't guarantee that the deal will be the same. 

3. I'm an honest man. Look at how many cars I've sold this weekend (This is where he will show you his list of sold cars. If he does this, then tell him that he doesn't need your money). 

4. I hate to tell you this but I have another offer on the table from a man that is willing to pay more money than this. I am just waiting for his paperwork to be returned. (Tell him that if he promised the car to someone else, you don't want to step on someone else's toes and that you should leave then). 

5. To cover the overhead costs, we have paid $13,000 for this car (Just check your paperwork in your folder and prove them wrong). 

Body Shop, How To Value One?

Many smaller body shop owners have asked, “How do I appraise my body shop?” In the last month I have been asked to do two appraisals on body shops. The first appraisal was to assist in partnership dissolution; the second appraisal was for marriage dissolution. (That is what the attorneys call a divorce.) Would you like to know how to appraise the value of a body shop business? 

Before we begin, I would like to make one comment. Whenever a CPA has done an appraisal of a body shop, I find that their opinion of value is much greater than the actual value the market place will pay. This is not because the CPA’s do not know what they are doing because they do; it is just that the market place places a much higher risk on buying a body shop than the accountants do. The following is an excerpt from one of those appraisals.

THE THREE WAYS TO APPRAISE A BUSINESS 

1. The ASSET VALUATION METHOD. This method is basically used when a body shop does less than $400,000 a year in gross income and the seller is making wages, but no real profit above what he would be paid if working for another. On this size business, a buyer is willing to pay for the assets of the business but little or nothing for goodwill. The equipment is usually worth between $50,000 and $100,000, depending on how many frame machines the business owns and how nice a spray booth the business owns. 

Auto loan: the path for your new car!

If you want to buy a new car but you don’t have enough money, you should consider the idea of getting an auto loan. 

Auto loans are pretty helpful for people who cannot afford buying a new car, but still need either a new car or a car. This is common among students who usually work part-time and pay for an auto loan with the payment they receive from the job. Well, nothing better than buying our own car with our own money, right!? 

Here are simple advantages of auto loans: 

- Sometimes, getting all the money we need to buy a car is difficult. For these people who don’t have the luck of having this facility, auto loans make possible the dream of having a car or a new car. 

- When you get an auto loan, sometimes the final price of the car is cheaper than it would be if you had bought the car with a dealership. 

- If you are aware of the terms of the contract, there is no way for to be deceived and the facility of getting a car with an auto loan is much bigger than buying a car with a dealership. 

Auto Coverage In Alabama

If you live in Alabama and want to know what insurance you need read on. By speaking with car insurance agents online you will also be able to get car insurance estimates. Having the right coverage and getting it for the right price are important. 

Bodily injury liability is required by law in Alabama. It provides coverage for damages to a person covered by the policy to pay for bodily injuries to other people involved in the accident when you are responsible. If you injure someone in an auto accident the liability can add up very quickly sometimes totaling into the hundreds of thousand of dollars. So you need to make sure you have adequate bodily injury liability coverage to protect yourself and your financial interests. Always purchase the highest amount you can afford. The more assets you have and the better off you are financially the more coverage you will need. 

Property damage liability is also required by law in Alabama. This coverage protects the policy holder from damage caused to property when you are at fault. Property includes vehicles, houses, lamp posts and any other non human item. Here again you should purchase as much as you can afford. Remember some of these new cars are worth a lot of money and if you don’t have adequate insurance to replace the vehicle then the other party will come after your personal assets.