Don’t get talked into unnecessary car repairs

With the economic crisis taking a toll on new car sales, you might need to be even more vigilant for car repair and maintenance schemes, as two recent cases demonstrate.

In one example, a New York area Ford dealer tried to sell one of our staffers hundreds of dollars in unnecessary repairs, claiming that his Ford Explorer would not otherwise pass state inspection.

When our knowledgeable reporter brought the incident to the attention of the service manager, the manager acknowledged that the fixes were not needed. He said that had our reporter authorized them instead of raising questions, he would have nonetheless checked the technician’s assessment and notified our reporter that the work, including tire and brake replacement, was not required for the vehicle to pass inspection.

“I do it all the time,” he said. Yeah, right.

In another case, a Toyota dealer wanted to charge a Prius owner more than $500 for 30,000-mile service. In additional to all those basic inspections that a repair shop should do anyway when servicing a car, the vehicle owner’s manual details just four items: oil change, tire rotation, and replacement of the engine and cabin air filters. Figure maybe $100. Just as bad, the dealer insisted that the work had to be done by a dealer in order to maintain the vehicle warranty. Wrong. A second dealer wanted to throw in a transmission fluid change for $189.

The bottom line? Don’t just blindly agree to do whatever a repair shop says. If you’re not knowledgeable about the basics of auto repair and maintenance, check with a friend or family member, especially if there’s even a hint that the work may not be necessary.

And when it comes maintenance, don’t mention the 30,000-mile, 60,000-mile, or any other mileage-interval service. Instead, determine the procedures your owner’s manual recommends and find out how much a repair shop charges to do those items you can’t do yourself. Surely, you don’t need to pay hundreds for someone to make sure your door hinges are greased and your lights are working. And don’t forget to comparison shop.

This article from the Consumer Reports Money Adviser offers additional advice on how to avoid car repair rip offs.—Anthony Giorgianni

The season of free shipping and other goodies

Just like the rest of us, retailers are reeling from the depressed economy, and they’re worried that once consumers empty their pockets to heat their homes and put food on the table, there won’t be anything left for holiday gifts.

So to sweeten the pot and bring in the fence-sitters, many stores are dangling discounts extra early this season. Since late September, my inbox has been flooded daily with promotions. Frankly, the incentives are so generous that I’ve drawn a line in the sand and refuse to buy from any store or e-tailer that doesn’t toss me a bone.

Most of the offers involve free shipping, but there plenty of other come-ons. And when one promotion ends, another begins. So don’t feel that you’ve missed the boat. Here are a few of the recent goodies ...

Hold on to that clunker!

Let’s be honest. We’d all rather cruise around town in a brand new car instead of a 10-year-old clunker. But with money and credit as tight as they are, there’s plenty of incentive to keep our old wheels running a little longer.

The auto experts here at Consumer Reports say that any car can reach 200,000 miles if you’re willing to keep replacing parts. But it helps if you start out with a vehicle that has a good reliability record. One way to do so is to use the Consumer Reports reliability ratings, although you have to be an online subscriber to see the detailed report on individual cars.

Even if you're not a subscriber, though, there are a number of things you can do to make your car or truck last longer ...

Be wary of promotions for used-car "blow-out" sales

If you receive a glossy flyer from a local car dealership promoting a huge used-car sales event, proceed with caution. Such events usually feature contests, simulated checks, or “bonus” vouchers that customers are urged to use to take thousands of dollars off the price of a used car. One flyer we saw included a key that recipients were instructed to take to the sale to see if they’d won a new car.

These “blow-outs” typically use a local dealer’s name, but they are conducted by outside companies that sometimes charge higher prices than the dealership itself. And some have used high-pressure and deceptive sales tactics, say state attorneys general who have investigated the industry.

Earlier this year, the Washington state attorney general’s office announced a settlement with a company that it accused of, among other things, failing to disclose the number of vehicles available at an advertised price; misrepresenting the ease of obtaining financing; and using words such as “drastically discounted” to misrepresent the value of the vehicles sold. The settlement, with the Automotive Consultant Group of Metairie, La., didn’t include a finding or admission of wrongdoing. The agency said it had seen an increase in out-of-state firms marketing new and used cars for local dealerships.—Anthony Giorgianni

Beware of bogus car warranty pitches

Law enforcement officials throughout the country are warning of misleading solicitations aimed at pressuring car owners to buy extended warranties.

Missouri Attorney General Jay Nixon recently announced that he had filed lawsuits or reached settlements with numerous companies that he said misled and pressured scores of car owners across the country into buying extended warranties that, in most cases, they didn't need. In some instances, consumers were charged thousands of dollars.

He said the companies, most based in St. Louis, used official-looking postcards that included words such as “Notice of Interruption!” or “Important Dated Material Enclosed” to mislead vehicle owners into thinking that the mailing was from the vehicle manufacturer or dealer that sold them the car. He said one elderly consumer paid nearly $1,900 to buy a warranty after being told that her existing coverage “expired or was about to expire” in March 2007; the actual expiration date was November 2008. He said the company then refused the customer’s request for a refund.

“Many consumers—confused, but not wanting their car warranties to expire—went ahead and purchased the new, but in most cases unneeded, service contract the company was hawking,” Nixon said, in a news release.

A warning on the Washington State attorney general’s office Web site said that attorneys general around the country have been receiving increasing numbers of complaints about the practice. It said many of the postcards are personalized with the car owner’s name and a customer ID number. On such postcard, which appears on the Web site, was labeled in large, capital letters: “FINAL WARRANTY NOTICE.”

The Connecticut attorney general’s Web site reports that 20 states are investigating such solicitations, which it said also come in the form of letters, e-mail messages, and telephone calls.

Even when extended warranties are being sold honestly, they often aren’t worth the added expense, especially if your car has a top-reliability score. On the other hand, if your heart is set on a model with below-average reliability, deciding on whether to buy an extended warranty —also known as an extended service contract—is more of a toss-up. —Anthony Giorgianni