Q: Why don’t I get the mileage listed on the sticker?

A: The mileage ratings on the vehicle’s original window sticker are estimates. The manufacturers follow federal guidelines to test new vehicle models. The tests are completed in controlled laboratory settings. A dynamometer, a machine that allows the vehicle to simulate driving conditions, is used. Engine emissions are monitored to calculate the amount of fuel consumed. The key to remember is that these are estimates simulating driving conditions, not the actual driving conditions that cars often encounter. The city and highway tests are done in a controlled temperature setting (between 68 to 86 degrees F) without the car’s air conditioning on.

Q: I have a manual transmission and when I put it in reverse and back up an incline (like the driveway) I sometimes hear a "clunk" or "pop" noise. We have had the car in before but the dealer said there is nothing wrong. The bumper to bumper factory warranty expires next month. What should I do?

A: I would take it back to the dealer (or another dealer in the area). Have them document the problem if they can’t fix it. Get the problem written up on a work order so if you need to fight for repairs later you have it in writing. Ask them if they cannot find the problem what their policy is if your transmission has problems after the warranty expires. Some vehicles have a 3 year/36,000 mile bumper to bumper warranty with a longer powertrain warranty. Check your warranty information to see if your vehicle’s powertrain warranty (engine and transmission) extends past your bumper to bumper warranty.

Q: I have seen new cars advertising “quiet steel” technology. What is quiet steel?

A: Quiet Steel^® is a product developed by Material Sciences Corporation (www.quietsteel.com). A Quiet Steel^® panel is made by laminating layers of composite and steel materials. The layers conduct and dampen noises and vibrations much more than standard steel panels.

Q: I am looking at a new vehicle and am confused whether I should obtain a loan and buy it or if I should lease the vehicle. Would you give me some advice?

A: Leasing the vehicle will generally get you into a new car for a lower monthly payment than if you were purchasing it. However, at the end of the lease term (commonly 36 months) you do not own anything. If you always like driving a new car with the assurances of being under factory warranty, then leasing may be for you. If you like the idea of driving a car without payments for a couple of years, then purchasing may be for you. Also, purchasing the car makes more sense if you drive more than 15,000 miles a year, usually drive the vehicle for 5+ years, or like to alter the vehicle’s appearance. Check with your tax advisor for the tax benefits that may apply when purchasing or leasing a vehicle if you use your car for business purposes.

Q: I am interested in participating in a car sharing program. How does this type of program work?

A: Car sharing may be an appropriate option for you if you live in a metropolitan area. Since many people in metro areas can ride public transportation or car pool to and from work, sharing a car can make economic sense. Basically you join a car sharing program and pay for a car only when you use it. You still have the flexibility and freedom of owning a car, but don’t have the hassles of depreciation, maintenance, and insurance. Originating in Europe, car sharing has been a movement to reduce the number of cars on the road, lower pollution levels, ease parking congestion, and decrease individual transportation costs. For more information about car sharing, go to www.carsharing.net or www.flexcar.com.

Q: I am looking to sell my car and want to find out how much it is worth. What are good resources to use to help me appraise my car?

A: I recommend using Kelley Blue Book or Edmunds. These websites can be used to estimate the value of your vehicle and help you look for a new one. To get the most accurate estimate with online calculators, be realistic when identifying the condition of your vehicle.

Q: What is a certified used car?

A: Certified used cars (also known as pre-owned vehicles) have been through a thorough inspection by a qualified technician. After the inspection the vehicle is issued an extended warranty that is backed by the manufacturer. Most certified pre-owned vehicles have low mileage, are within three to four years old, and have no major damage. Certified vehicles will generally cost more than a comparable used car since it comes with an extended warranty that is backed by the manufacturer.

Q: I like to buy American and support workers in our country. Is there a clear choice between foreign and domestic when buying a new car?

A: Not really. In the past the big three in the United States were Ford, General Motors, and Chrysler. Chrysler is now DaimlerChrysler and is U.S. and European owned. The Japanese big three automakers are Honda, Toyota, and Nissan. Many companies that were once thought of as making foreign cars are made in the United States. Among other places Hondas are made in Ohio, Toyotas in Indiana, and Nissans are manufactured in Tennessee. Ford brands include Volvo, Mazda, Land Rover, Jaguar, Aston Martin, as well as Mercury and Lincoln. You need to look at the specific model and find out what percentage of the vehicle was manufactured and assembled in the United States. In reality, we are in a global economy where products are manufactured and sold throughout the world.

Q: Is there a three day exchange or cancellation policy mandated by law when buying a new automobile?

A: The three day cancellation policy (sometimes called the three day cooling off rule) generally applies to door-to-door sales or sales made away from the normal business location. When buying a new vehicle, unless it is written into the contact or mandated by local law, you cannot return it after you have signed the paperwork and taken possession of it. When purchasing a pre-owned or used vehicle, some dealers do have exchange policies. It is important to read the fine print before making your final decision. Check with your local consumer protection agency to find out what is applicable in your area. For more information, go to www.consumeraction.gov.

Q: Is it sensible to purchase an extended warranty when buying a new car?

A: This depends on several factors. First, it depends on how you use your vehicle. Do you put excessive stress on the engine, transmission, or other components (e.g., when towing a trailer)? How long do you plan on owning the vehicle? Most auto manufacturers give a minimum of a 3-year/36 mile bumper-to-bumper warranty. If you get a new car every 4 years or so, it is usually not worth it to purchase an extended warranty. Also, read consumer based ratings to determine the reliability of past models. If you buy a high quality automobile with good reliability records and maintain it as required, put the money you would spend on an extended warranty in a bank account and keep that for your own private insurance if something happens down the road. Be sure to read the fine print if you do decide to purchase an extended warranty.

Q: When buying a used vehicle, how do I tell if it has been in a flood?

A: Especially after hurricanes, thousands of flooded cars are transported to various locations around the country for sale. Cars that have been submerged can have a variety of problems. The seller should disclose this information, but some will try and cover it up. Inspect the trunk area for musty smells or debris. Inspect the instrument gauges for moisture and make sure they work. Test all the electrical components (e.g., power windows, power seats, headlights, radio, heater, AC, etc.). Look into the heater vents for mud or moisture. It is also a good idea to run a vehicle history report through a company like CarFax. Finally, check with the Better Business Bureau to see if the company you are dealing with is reputable.

Q: I have had some financial problems in the past and want to know what my credit score is before I go into a dealership to buy a new car. Where can I get this information?

A: The consumer reporting companies (TransUnion, Equifax, and Experian) are required under the Fair Credit Reporting Act to supply you with a free annual credit report. You can request a credit report every 12 months. To obtain your credit report, go to the collaborative website set up by these companies at www.annualcreditreport.com or call 1-877-322-8228. Be careful to only use this site. According to the Federal Trade Commission there are imposter sites on the internet that advertise free credit reports. For more information about the Fair Credit Reporting Act, go to www.ftc.gov.

Q: I am looking into purchasing a new car and want to know the fuel economy (MPG) that each vehicle achieves. Do you know of a website where I can compare several vehicles side-by-side?

A: An excellent website to compare vehicles is www.fueleconomy.gov. This website uses information from car manufacturers, U.S. Department of Energy, National Highway Traffic Safety Administration, and the U.S. Environmental Protection Agency. At this website you can select and compare new or used cars’ MPG, safety ratings, and the amount of greenhouse gases that they emit.

Q: I am considering buying a new ¾ ton truck but don’t know if I should get one with a diesel engine or a gasoline engine. What are the main differences between the two types of engines?

A: A diesel engine is a compression ignition engine while a gasoline engine is a spark ignition engine. Diesels do not have spark plugs to ignite the fuel, resulting in lower maintenance costs. Even though gasoline engines usually produce higher horsepower, diesels turn out more torque. Torque is crucial for pulling. If the truck is used to tow or haul heavy loads, a diesel may be the better choice. Diesel engines are more fuel efficient and have a longer life, but tend to initially cost significantly more than gas engines. Gasoline engines start better in cold weather. Even though both types of engines produce pollutants, diesel engines emit more particulate matter (i.e., small airborne particles) that can damage the lungs.

Q: How much of a tax incentive can I get for buying a new hybrid vehicle? What hybrid vehicles are eligible?

A: According to the website, www.fueleconomy.gov, the following vehicles have a federal tax credit up to $2000 when purchased in 2005: Ford Escape Hybrid, Honda Accord Hybrid, Honda Civic Hybrid, Honda Insight, and the Toyota Prius. The IRS may approve other hybrid vehicles as they are introduced into the market. The current legislation states that the tax credit will reduce to $500 in 2006 and will become obsolete in 2007. However, keep an eye on Congress because the tax incentives could change.

Q: What is a hybrid vehicle and why should I consider one for my next vehicle purchase?

A: Any vehicle that combines multiple power sources for movement is considered a hybrid. Hybrid vehicles on the market today use an electric motor and an internal combustion engine for propulsion. Hybrids evolved from electric vehicles but have eliminated their predecessor’s inconveniences of short driving distances and the need to be plugged in. Hybrids combine the convenience of a gasoline-burning car and the efficiency of an electric car into one reliable mode of transportation. Hybrids are not plugged in like electric vehicles. The internal combustion engine on a hybrid recharges the batteries as well as supplements the electric motor to move the vehicle. Hybrid passenger cars like the Honda Civic Hybrid, Honda Insight, and Toyota Prius are extremely fuel efficient (50-70 mpg) and low polluting. Look for hybrid SUVs in the near future. For example, the Ford Escape Hybrid SUV will be available later this year. Consider buying a hybrid if you want to lower your fuel bill and reduce harmful emissions.

Q: My new car has been in the shop several times now for the same problem. What recourse do I have to get a new vehicle?

A: Lemon laws vary from state to state. In general, many states identify that a new car is a lemon if it has been in the shop four times for the same problem or if the car has been in the shop for an extended period of time (usually 30 days) in the first 12 to 24 months of ownership. Go to www.autosafety.org to read the specific lemon law in your state and to see what you can do to get a new vehicle or refund. Remember to keep detailed records to support your claim.

Q: I am looking at purchasing a used vehicle. What is a reasonable amount of miles a vehicle should accumulate per year?

A: The average driver puts on around 12,000 miles a year. When looking at used cars, try to determine the driving habits of the previous owner. Highway miles generally provide less wear on the vehicle’s engine and transmission than large amounts of stop and go city driving. Also, inspect the vehicle’s maintenance records to confirm that periodic maintenance has been performed.

Q: I am looking at purchasing a Ford pickup. How much can I haul with an F-150?

A: Traditionally, a Ford F-150 was considered a ½ ton pickup. The technical term, payload, is the weight of the passengers and cargo. The payload capacity varies depending on the engine, wheelbase, body type, and suspension system. Depending on the exact body type and engine size, a Ford F-150 has a load capacity between 1340-1990 pounds. Automotive manufacturers offer many options including “Heavy Duty Payload Packages”. Adding this option can increase the payload capacity 1000 pounds on some models. Go to www.fordvehicles.com to find more information about the specific truck you are researching.

Q: I am interested in buying a car from an auto auction. What things should I look for when I inspect the car?

A: Auto auctions commonly have an inspection period before the auction takes place. Write down the vehicle identification number (VIN) and run a report about the vehicle’s history using a company like CarFax. Carfax will give you a detailed report about whether the vehicle has had serious problems such as being flooded or if it was previously totaled. Reports can also identify the vehicle’s previous use (e.g., if it was used commercially) and its emission inspection records. If you do not have Internet access available at the auction, set up to call a friend with the VIN number and have them run a report on the Internet for you. You should also look for things such as leaking oil, holes in the exhaust, cracked CV boots, or mismatched paint. Use the inspection time to your advantage to check over the vehicle thoroughly. Don’t bid more than the car is worth. Have access to a price guide such as Kelley Blue Book or Edmunds to help you determine a fair market value.

Q: What does it mean in automotive ads when it states “residency restrictions apply”?

A: Automotive manufacturers commonly offer rebates and other incentives on a regional basis. According to the General Motors website it has five regions in the United States: Western, South Central, Central, Southeast, and Northeast. Rebates and incentives offered in one region may not be available in another region.

Q: When purchasing a new car how much below sticker price should I pay?

A: The sticker price on a new vehicle is also called the Manufacturer’s Suggested Retail Price (MSRP). Few vehicles sell at MSRP. The first thing you need to determine is what the dealership paid for the vehicle. Dealer cost is the amount that the dealer actually pays for the vehicle after holdbacks and incentives. When you see advertisements such as “$100 under dealer invoice” the dealerships are still making a profit. Commonly 2-3% can be estimated off the dealer invoice to establish the dealer’s actual cost to account for holdbacks and incentives from the manufacturer. It is reasonable and fair to offer 4% more than dealer cost. For example a car with an MSRP of $20,000 may have a dealer invoice of $18,000 and an actual dealer cost of $17,460. A fair offer on the vehicle may be $18,158 (4% over dealer cost). Remember always negotiate up from the dealer cost not down from MSRP. Kelley Blue Book (www.kbb.com) lists dealer invoice on most new vehicles. Remember to ask for any special incentives offered by the car manufacturer.

Q: How will the new National Energy Plan that was recently signed into law by President Bush affect car buying?

A: Starting January 1^st, 2006 car buyers will receive tax credits for qualifying hybrid cars and clean burning diesel vehicles. The tax credits vary by model, but have an upper limit of $3400. Tax credits are limited to production numbers for each manufacturer. Since many hybrids and diesels have a $3,000 to $4,000 premium over a similar model with a conventional gas engine, buying these alternatively powered vehicles will be more attractive. However, some models have a significantly smaller tax credit. The tax credit uses a formula that is based on several factors including a vehicle’s lifetime fuel savings.