The Question of Auto Refinance



Everybody likes to take advantage of lower interest rates and save money on their car loans. For buyers who needed to buy a car when they had damaged credit, it is even more of a priority for them to try and refinance their loan once their scores improve.

 

Today, we are going to cover several questions we have received from car buyers about refinancing.

"I would like to refinance my car loan. What are the steps to do that?"

At Auto Credit Express, we don't refinance car loans. We connect car buyers with dealers in our network that can get them a vehicle despite their challenging financial situations. But, if you are looking to refinance, we can tell you how to do that.

  1. To start, you will want to pull your credit reports, as well as research what the current prime and subprime interest rates are. If you see improvement in either area, you may want to inquire further into refinancing. If not, you may want to wait a little longer.
  2. If you are confident that your credit score or lending rates have improved, the next step would be to contact your lender and request the payoff amount for the loan. You will need this information for the potential new lender so they can assemble a financing package for you.
  3. You will need to determine the difference between your car's current market value and the payoff amount on the loan. Since you will not be able to borrow more than what the car is worth from the new lender, you will need to have the ability to pay any difference there may be. Also, you will need to make sure that the age and remaining value of the car meets the new lender's borrowing requirements.
  4. Shop around for the best rate. Once you have determined which lenders you qualify with and which one will give you the best interest rate, contact your current lender and any other associated parties and send them the information on the new contract. This will allow them to transfer the lien on the vehicle to the new lender, and pay off the old loan.

Too Soon to Refinance?

Sometimes, you need to wait until the timing is right in order to get a better rate on your car loan.

"Do you refinance Auto Loans? I purchased a car back in January and was looking for a better interest rate. My current Interest rate is 23% and my credit rating was 500 when the car was purchased. I now have a 600 rating, and would like some relief."

To answer the question, the timeframe and the new score will not make it worth their while. There are two factors here that this buyer needs to consider:

  1. While their score has improved, a 600 credit score is still considered a poor rating, and they would likely not get a better rate than what they are currently getting.
  2. It has been less than a year since they opened the original loan.

The best approach for buyers who are looking to refinance is to get their FICO score back up to at least what is considered good (661 or higher). However, in some cases you may be able to refinance into a better rate if the car loan is in good standing, which means having a consistent payment history for at least 18 months. A solid borrowing history will make it easier for a new lender to consider you.

In the meantime, also consider opening up a secured credit card with your bank or financial institution in order to help your credit history.

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Possible Car Refinancing Outcomes

Not all car loan refinance deals are the same, but customers who chose to refinance often seek one of the following outcomes (this list is not exhaustive).

Lower Your Monthly Payments

Most of the time, people seek car loan refinancing to lower their monthly payments. This priority is understandable because monthly car loan payments can have an immediate impact on a household’s monthly finances. However, your monthly payment should not be your only consideration when refinancing as the sections below describe.

You have two ways to lower your car loan monthly payments. You can get a lower interest rate, you can extend your loan term, or you can do both. Usually, the best way to lower your car loan payments dramatically is to extend the number of months over which you pay for your car. However, when you extend your loan term, you may end up paying more for your car in total than you would without extending it. Still, if your lender allows you to extend your loan term and gives you a lower interest rate, you may both lower your monthly payments and pay less in total for your car. The example below will illustrate how this outcome can occur.

Decrease Your Interest Rate/Reduce Your Interest Charges

While it is interrelated with the goal of lowering monthly payments, some refinance customers prioritize lowering the interest rates on their loans. If during the course of your car loan, you improve your credit worthiness in the eyes of lenders (they sometimes evaluate you according to the Four C’s of Credit), then you usually can get a new loan on your car with a lower interest rate, and when you lower your interest rate you may reduce the total interest charges you pay on your car loan – assuming your car loan term is not extended or not extended by too many months.

Want to see how much refinancing may save you? Try our auto loan refinancing calculator.

Change The Length Of Your Loan

Sometimes refinance customers seek refinancing with an aim to change their loan term lengths. However, this goal usually has more to do with lowering monthly payments than just changing how many months over which a customer pays for his/her car.

Remove Or Add Someone As A Co-Signer To Your Loan

For various personal reasons, sometimes car loan borrowers want to refinance to remove someone from or add someone to their car loans. Refinancing is an easy way to take someone off of your car loan because the refinance process gives you a new loan with a new contract.

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Two Kinds Of Extended Auto Warranties

 

There are two main kinds of extended auto warranties. There are auto warranties that are bought through aftermarket auto warranty companies and there are auto warranties that are backed by a manufacturer.

An extended auto warranty that is bought through an aftermarket auto warranty company tends to be less expensive. Also, this kind of auto warranty tends to vary in both price and quality depending upon which company you buy from. This is why it is always important to do your research before making a purchase.

An extended auto warranty that is backed by the manufacturer generally includes a wide variety of repairs and services. Repairs performed on your vehicle are usually done in a dealership that is approved by the manufacturer. This means that you will not usually experience any issues when going to get them done.

No matter where you get your extended auto warranty company from, it is essential that you do research. Compare a variety of warranties for price and quality.

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How to File a Car Insurance Claim



 Getting into a car crash can be stressful and cause panic, even if you are protected with car insurance. Many folks have coverage, but don’t know what to do after an accident and don’t know how to file a car insurance claim. Keep calm and read on.

The car insurance claim process may seem daunting, but it is easier than it appears. Here is some information on what to do after a collision and how to file a claim with little hassle.

Things You Should Know Before the Worst Happens

No one plans to get into an accident, but it’s important to know what your policy covers in case you have file a car accident injury claim or any other insurance claim. Read through your policy so you always know where you stand. Know how much liability coverage you have and if you have collision and comprehensive coverage. If you notice any coverage you want that isn’t included in your plan, contact your insurance company to get it added to your policy. Reading over your policy can also inform you on how to best file an auto insurance claim with your insurer if you cannot proceed with traditional methods.

After the Accident

There is a whole guide on what to do after getting into an auto accident and there are some steps that take priority before filing accident claims. In short, pull over and park away from traffic if possible, check yourself and others involved in the accident for injuries, call the police to report the accident, and exchange insurance information with the people involved with the collision. Also, take pictures of the accident scene if you are able, write down license plate numbers of all vehicles involved in the collision, and write down the names and contact information of any witnesses.

Contact Your Insurance Company

Regardless of whoever caused the accident, you should call your insurance company as soon as possible to report the accident and file a claim. There should be a national or local phone number on your insurance card that you can call. When you speak with your insurance representative, ask if there are any particular forms you need to fill out or other information they need in order to swiftly process auto accident claims. Knowing what information you’ll need to obtain, usually items such as repair bills and the police report, will save you from making follow-up phone calls later on.

Take Your Car to a Repair Shop

While most state laws prohibit insurance companies from favoring specific auto body repair shops, many will provide you a list of local shops that are backed by repair and labor guarantees. Ultimately, you will be the one to choose which repair shop will fix your car. Make sure you know what your settlement amounts are before signing off on an estimate for repairs. You don’t want to end up paying beyond your policy’s limit if you can help it. Keep and make copies of all paperwork.

Cooperate With Your Insurer

Depending on the severity of the accident, you may be required to give your insurer additional information. They may call the repair shop to discuss the estimate for repairs or send an insurance adjuster to inspect the car. You may need to send copies of any legal papers or settlement offers you receive in relation to the accident. This can help your insurer defend you if you are sued as a result of the accident. It may seem like a hassle, but it is all in the interest of providing you the protection you purchased.

Keep Records of All Related Expenses

If you get a car estimate, hospital bill, a bill for a rental car, or any other expense related to your car accident, you need to be able to show proof of it to your insurance company. Keep any and all receipts or paperwork that indicates how much you paid or need to pay. You should also write down and report anything that could be considered lost wages. This can help you get reimbursed properly for these expenses.

Keep and Store Copies of Paperwork

This has been mentioned previously multiple times, but it bears repeating. It is important to keep any and all paperwork related to your accident in order for your insurance provider to refer to it when filing your car insurance claim. Keep the originals and make copies of any forms, bills, or other items related to your accident. You should also consider keeping your records organized in a file and kept in a safe place in your home.

If You’re Dissatisfied, Talk to Your Insurance Agent

If your claim has been processed and you aren’t satisfied with your payout, don’t be afraid to talk things over with your insurance provider. You can both review what was outlined in your policy agreement and see if there was any information that was overlooked or forgot to provide. It could also be an opportunity to update your insurance policy to include certain coverages that weren’t available to you in this instance.

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How to Finance an Auto Purchase

When you walk into a dealership, you won’t be there long before a salesperson asks how you intend to pay for your new car.

When the dealer starts in, just explain that you intend to pay in cash. Saying you’ll be paying in cash doesn’t mean you’re going to open up a briefcase with bricks of money inside, it just means that you’re not interested in dealer or manufacturer financing.

In some cases (if you have perfect credit if the car is about to be replaced by a newer model) dealer-sponsored financing might be a good deal, but most of the time it isn’t. You can usually find better deals on car loans at credit unions and banks.

Telling the dealer that you’re not interested in their financing takes away an opportunity for the dealer to pad the deal with an extra profit. Dealers make money on charging you, so they have ways of slipping various extra fees and charges into your financing arrangement. Forgoing dealer financing also allows you to focus on the features and purchase price of the car you want — a far more important and useful task than focusing on the monthly payment figure.

After declining financing, your next task is negotiating the purchase price of the car. Some survival tips:

Resist the temptation to lease. Leasing is basically an extended car rental. When you lease a car, you must return it at the end of the lease or buy it from the dealer at a predetermined price — usually higher than what you’d pay for a similar used car. When you take a loan out to buy a car, you pay down the loan and then the car is yours, free and clear. The only payments you’ll have to make after that are for gas, repairs, and insurance.

Lots of people lease. Smart, respectable people lease. It’s not a terrible thing to do, but it’s not the best way to keep a car because you’re always making payments. Lease a car for three years and, when the term expires, you need to look for a new lease or shell out thousands to purchase the car you’ve been driving.

Consider factory certified pre-owned cars. “Certified pre-owned” is another term for “used.” But these cars do come with extra assurances about the car’s condition. Going pre-owned can be a really smart move because most cars lose 18% of their value in their first year. A certified pre-owned car is one that has been inspected and fixed before it goes on the market, and comes with a manufacturer-backed warranty like new cars do.

Size up your future car loan. Once you decide you want a new car, the first thing you should do is figure out how many cars you can afford. Calculate this amount before you go shopping; don’t let a car dealer influence your decision.

Figure out how big a loan you should get. A good rule of thumb: Your monthly car payment should be no more than 20% of your disposable income. That means that after you’ve paid all your debts and living expenses, take one-fifth of what’s left. That’s your maximum monthly auto expense. Ideally, this number should cover not only your car payment but also your insurance and fuel costs.

Decide how long you’ll give yourself to repay your car loan. A monthly payment is, essentially, the amount of your loan, plus interest, divided by the number of months you have to pay back the loan. The more months you have to pay it back, the lower the monthly payment will be. But stretching out a car loan too long—or any loan, for that matter—will ultimately cost you a truckload more in interest payments.

For example, say you take out a $20,000 car loan at 5%. If you borrow the money over four years, your monthly payment will be $460.59. At the end of four years, you’ll have paid $2,108.12 in interest.

If you borrow the money over ten years, your monthly payment will only be $211.12, but at the end of 10 years, you’ll have paid $5,455.72 in interest.

Keep your loan term to five years or less (three is ideal) and you should be in good shape. If the monthly payments are too much even for five years, the car you’re looking to buy is probably too expensive.

Consider all pools of money. Should you sell investments to pay for the car instead of borrowing at 7%? That’s a tough call; usually, we’d say no. Do not spend any of your tax-sheltered retirement savings (IRAs, 401(k)s), as you’ll pay through the nose in penalties and taxes and rob from your future. As for taxable investments, consider whether cashing out would have tax implications (you’ll pay 15% on capital gains for investments held longer than one year; investments held less than a year are taxed at your ordinary income-tax rate) or whether you may need that money for something else over the next two to three years.

Should you take out a home equity loan to pay for a car, since the interest of those loans is tax-deductible?

Many people think home loans are the perfect way to finance the purchase of a new car. But the length of the term for a home loan — most require payments over at least 10 years, with penalties for early repayment — will send your total costs through the roof, even after the tax savings. Borrow for no more than five years, lease (if you must) for no more than three. If you’re considering a home-equity line of credit to pay for your car, remember that most HELOCs have a variable interest rate, so it’s possible your payments will rise over time.

How to Find the Best Auto Loan

You’re going to show up at the dealer with your own loan, but where should that loan come from?

Begin by getting a sense of the prevailing rate for a new-car loan. Focus on is the APR or annual percentage rate offered by each lender. The APR is the annual cost of the loan or interest rate. With this number, you can cross-compare loans from one lender to another, so long as the duration of the loans is the same.

You’ll probably get the best deal at a credit union— a members-only, nonprofit bank that can offer lower-cost loans than a traditional bank can. But check out rates at traditional banks and online-only car lenders such as AutoWrranty Auto Loans.

Don’t be distracted by dealerships offering rebates or zero-percent financing if you obtain your loan through them. “Zero-percent financing” means you are not charged any interest on the loan. So if you were buying a car that cost $24,000 and you had a 48-month car loan, your monthly payment would be $500, without any added interest. A rebate is a money taken off the price of the car. Rebates are also called cash-back deals.

Here’s the thing about those offers: The money you save via interest and rebates is probably coming from somewhere. If you qualify for 0% interest (and most people don’t, as it’s given only to people with near-perfect credit), your dealer won’t budge on the sticker price. If you take the rebate, you won’t get a rock-bottom or 0% interest deal.

That’s why splitting up the financing and purchasing of your car is a good idea: First, you can shop around for the best credit-union car loan, and then you go to the dealer and focus on negotiating the purchase price of the car. Bundling the transactions can lead to lots of stress and added expense — you may be so focused on financing costs that you the punt on the purchase price — to keep them separate.

If you do choose dealer financing, be extra vigilant about what you agree to, and what you’re signing—it’s not uncommon for dealers to add in various unnecessary fees (rustproofing, extended warranty) that fatten their bottom line. Question everything that wasn’t explicitly discussed during negotiation, and don’t be afraid to walk away.

There are some easy ways to catch a break with your dealer when negotiating the price of your car. Timing can be everything:

Shop early in the week
. Weekends are prime time for dealers. But if you show up on a Monday, a salesman may be more motivated to cut a deal because business will be slow for the next few days.

Shop at the end of the month. Car dealers get monthly bonuses if they move enough metal. If you show up on the 30th and your salesperson is two cars short of a bonus, he or she may cut you a better deal so to make numbers.

Shop for a car that’s about to be replaced/discontinued. Pretty simple logic here: Things that are about to be considered “old” sell for less. If you’re looking at a 2008 Honda Accord and the 2009s are about to arrive at the dealer, you usually can get a bargain. If the 2009 model is completely new and different from 2008, you’ll save even more. (Who wants to be seen driving the old-looking model? Smart, frugal people, that’s who.) And if Honda decides the Accord isn’t selling much anymore and kills it after the current model year? (OK, fat chance, but this is just an example.) Untold riches await. As do potential maintenance headaches — remember, some cars are unpopular for good reason.

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Should you refinance your auto loan? That’s a good question.

Everyone is talking about using the current low-interest rates to refinance mortgages. What about auto loans? Why shouldn’t people consider using these same low rates to refinance their car loans? Well, they should… and they are.

 

Why should you refinance?

Whether it be a mortgage, auto or other types of loan, there are many reasons people choose to refinance.

  1. Save money by refinancing with a lower rate – paying less interest and lowering your monthly payments.
  2. Increase your term length in order to lower monthly payments or decrease your term length to pay the debt off sooner.
  3. Personal reasons like removing a co-signer from the loan or having the peace of mind knowing you’re getting the best possible rate.

Whatever the reason, it’s important to understand the impact of refinancing and also decide what you’d like your payments to be. (You can calculate your new payments by plugging in different interest rates at myFICO’s auto loan calculator.)

When should you refinance?

So when does it make sense to consider refinancing your auto loan? The answer is different for every borrower, but you might want to ask the following:

  • Have interest rates dropped since you first took out your loan and refinancing would help you save money?
  • Has your credit improved since you initiated the loan and you want to take advantage of your higher FICO®Score? (There’s actually an auto-industry specific score used by auto lenders to check your creditworthiness.)
  • Did you realize that the auto dealer charged you a much higher interest rate than what you deserve and you want to borrow from a different lender at a lower rate?
  • Are you having problems keeping up with the current payments? If financial hardship is the issue, you can extend the loan’s term which can help lower your payments. However, extending the term means paying more interest, so do your calculations carefully.

How should you refinance?

Refinancing an auto loan can happen a lot faster than it previously did. As long as you have a history of six to twelve months of consistent, on-time payments, refinancing should be very possible. You can even refinance online – it’s the best place to do your research and find a lender who can help you save money. However, before you begin, make certain that your current loan does not incur a prepayment penalty. Most auto loans don’t, but just check to be sure so you can feel secure that the refinance process will be worthwhile.

  1. Find the lowest rate. Check with two to three lenders to identify the lowest interest rate for which you qualify. Comparing offers provides the greatest opportunity for finding the best rate, and lowest payments.
  2. AutoPay.  You can get the best interest rate by selecting the AutoPay option during the application process. Many lenders lower your interest rate even further if you choose to pay your monthly bill this way.
  3. Make higher payments. If, and only if, you can afford higher payments you should consider doing so. It shortens the term of the loan so that you can pay it off sooner and save a lot money down the line on interest.

A quick example.

Here’s an easy-to-understand example of how refinancing an auto loan can save you money… big money.

Loan Amount: $16,500

Loan Term: 60 months

Interest Rate: 21% APR

Monthly Payment: $446.38          Interest on Loan: $10,282.83

After refinancing at 7%

Monthly Payment: $330.63          Interest on Loan: $3,337.57

Every percentage point the interest rate is decreased can make a big difference in your monthly payment and the total interest paid.

SIDE NOTE: A few things to remember when refinancing…

  • The new loan needs to be in the same name as the current loan
  • Have your car loan account number available
  • Have the car’s year, make, model and VIN handy
  • You will not be required to have the car appraised in order to refinance your loan
  • A refinance of less than $7,500 is probably not worth the lender’s time
  • Borrowing more than the car’s value will not be possible
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Auto Security: Do Feds Have Our Back?

Government agencies in the U.S. and the U.K. are working to get ahead of the curve and let the public know that they are concerned about vehicle cyber security.

 Consumers should be aware of the possibility of a hacker attack on their cars. We now know that what used to be considered a movie scenario — remote hacking — could be done.

The current reality is that, while a variety of connectivity technologies have been transfused into cars, the equal and opposite security measures are yet to be deployed.

Surely, car hacking is the last thing automakers want to mention as they push the connected cars into the vast consumer disconnect. But government watchdogs in both the U.S. and the U.K. are working to get ahead of the curve and let the public know that they are concerned.

 Principles of cyber security for connected and automated vehicles

"Whether we're turning vehicles into WiFi-connected hotspots or equipping them with millions of lines of code to become fully automated, it is important that they are protected against cyber-attacks," said Martin Callanan, a minister in the Department for Transport at the British government.

He said this last week when the U.K. agency issued new guidelines, requiring manufacturers of Internet-connected vehicles to put in place tougher cyber protections to ensure a stronger shield against hackers.

It isn’t just the U.K. The National Highway Traffic Safety Administration (NHTSA) in the United States also issued last fall the federal guidance to the automotive industry for improving motor vehicle cyber security.

Questions to ask
So should we all sleep well, confident that the feds have our back?

Not so fast, Gracie.

Questions that come to my mind include:
1. Do the guidelines issued by NHTSA and British Department of Transportation have any teeth for security enforcement? 
2. More important, have they gone far enough to suggest effective cyber security measures for cars?
3. What are the differences in the proposals of the two separate governments?

As Roger Lanctot, director automotive connected mobility in the global automotive practice at Strategy Analytics, told us, “All of the work and guidance today is advisory vs. compulsory in nature.” Things will become real, in his opinion, “when financial and liability consequences are in fact defined.”

Sources of vulnerability in connected cars are many. Lanctot listed: “diagnostic ports, hobbyist/enthusiasts, dealers, suppliers/supply chain, criminals, and terrorists to say nothing of incompetence, bugs, and the management of multiple onboard systems crossing domains with different development standards.”

Facing so many areas inside cars that must be protected as cars morph into always-on computing devices, it isn’t easy to come up with comprehensive guidelines. And yet, “Regulators need to demonstrate they are doing something,” said Lanctot.

How do security experts see the development of government guidelines?

Gene Carter, vice president of products at OnBoard Security, for example, believes that “both the U.K. and NHTSA guidance documents included basic security tenets.”

He explained such measures should be followed by any company connecting hardware or software to the web — including security by design, defense in depth, principles of least privilege, etc.  In Carter’s opinion, however, these are basics. “I would hope that the automakers have learned enough from the IT world’s experiences, and they [should be] already doing those essential things.”

A few experts, including Carter, pointed out that the U.K.’s guidance does not go far enough in the area of software updates after a vulnerability is discovered.

Carter said, “The guidance merely states ‘organizations plan for how to maintain security over the lifetime of their systems.’”

In his view, “Over The Air (OTA) updates should be a requirement for automobiles.  It is impossible for a manufacturer to create a car that is free of vulnerabilities throughout the 10-20 year life of a car.  Without OTA, automakers are relying on car owners to bring their cars into a repair show every time a new vulnerability is discovered.  This will leave many cars exposed to known attacks, while OTA would allow the fix to be pushed to the at-risk vehicles immediately.”

Of course, car makers “will save a lot of money in recalls by offering OTA, so it is likely they will move to that technology on their own,” said Carter. Still, “I would have preferred the UK specify its use and not leave it so ambiguous.”

Meanwhile, David Barzilai, chairman, and co-founder of automotive cyber security firm Karamba Security weighed in on the U.K. government’s guidance. While applauding pre-emptive action they might take, he pointed out that there is one area “we don’t feel these guidelines go far enough toward effectively preventing car hacking,” he said. 

Again, that’s the area of how to deal with security bugs.

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Android for cars: Secure connection?

Fast-forward 17 years and there are apps for everything — even your car. Chances are, if an app might make part of your life easier, someone will develop it and plenty of people will use it.

Over the past few years, the concept of the connected car has continued to evolve — and become reality. At this year’s RSA Conference in San Francisco, our anti-malware researchers Victor Chebyshev and Mikhail Kuzin presented research that they conducted on seven popular apps for vehicles.

The apps seem to make users’ lives easier by linking their Android devices to their automobiles, but we have asked: Are we trading security for convenience? And as with many IoT connected devices, the answer is, security needs to become more of a priority for developers and manufacturers.

The primary functions of these apps are to open doors and in many instances start the car. Unfortunately, flaws in the apps could be exploited by attackers:

No protection against application reverse engineering. As a result, malefactors can dig in and find vulnerabilities that give them access to server-side infrastructure or to the car’s multimedia system.
No code integrity check. This allows criminals to incorporate their own code in the app, adding malicious capabilities and replacing the original program with a fake one on user’s device.
No rooting detection techniques. Root rights provide Trojans with almost endless capabilities and leave the app defenseless.
Lack of protection against overlaying techniques. This allows malicious apps to show phishing windows on top of original apps’ windows, tricking users into entering login credentials in windows that send the info to criminals.
Storage of logins and passwords in plain text. Using this weakness, a criminal can steal users’ data relatively easily.

Upon successful exploitation, an attacker can gain control over the car, unlock the doors, turn off the security alarm and, theoretically, even steal the vehicle.

The researchers disclosed their findings to the developers (they did not disclose names of the apps publicly) and also told them that no exploitations had been seen in the wild. A full, detailed report on this can be found over on Securelist, where each of the apps is evaluated.

It’s easy to bury your head in the sand, thinking you won’t be hacked or that this is the stuff of science fiction, but the truth is, ever since its invention, the automobile has been a target for criminals. And if there is a hack to make things easier, just imagine the possibilities.

Another thing to keep in mind is that we’ve already seen vulnerabilities allow smart white-hat hackers to make the jump from “benign vulnerability” to controlling a car. Two of the bigger automotive stories of the past two years was about how Charlie Miller and Chris Valasek took control of a Jeep via vulnerabilities.

 

Ultimately, personal security and app usage come down to personal preference. Who we share our data with or entrust our convenience to is really up to us. With IoT devices and apps, convenience is too often considered before security.

In closing, Chebyshev notes:

“Applications for connected cars are not ready to withstand malware attacks. We expect that car manufacturer will have to go down the same road that banks have already taken with their applications… After multiple cases of attacks against banking apps, many banks have improved the security of their products.

“Luckily, we have not yet detected any cases of attacks against car applications, which means that car vendors still have time to do things right. How much time they have exactly is unknown. Modern Trojans are very flexible — one day they can act like normal adware, and the next day they can easily download a new configuration, making it possible to target new apps. The attack surface is really vast here.”

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IS YOUR CAR STILL WHERE YOU PARKED IT?



According to FBI reports, in 2015 in the US alone, a motor vehicle was stolen every 45 seconds.

We spend only a fraction of our time in our cars that we spend a lot of money on, so it’s good to know what goes on with our cars when we’re not around to watch them.

We can’t scare the thieves away or arrest them, but you’ll get a notification to your phone every time someone tries to compromise your car or tamper with the device – even when someone just hits your car while it’s parked, and tries to get away with it. The notification you receive from We will allow you to catch thieves or reckless drivers.

Even if you’re too late to catch the perpetrators on spot, We allows you to monitor the movement of your vehicle and report the location of your car to the authorities so they can retrieve it and return it to the safety of your garage.

With we car tracking feature you can even park your car wherever you like while you run your errands, without ever worrying if your car is safe or if you can remember where you parked it. We provides you peace of mind while your car is parked.

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What Car Warranty is Best for Me?

 

Whether you're shopping for a new or used car, most people have a general idea that a warranty is a good idea. Warranties are often considered to be a form of "insurance" - you pay out a fee and in exchange, your car will be fixed if anything on it breaks, but unfortunately, it's not quite that simple. There are different types of warranties and a warranty might not necessarily cover everything that you think it will. Here is everything you need to know:

What Exactly is an Auto Warranty?

A warranty is a contract between either you and your dealership or you and your manufacturer. At its simplest, a warranty sets out a specific amount of time and mileage; any defects and repairs that are necessary under that time and mileage amount are automatically covered under warranty. Warranties usually last around three years or 36,000 miles. They can also be extended upon vehicle purchase. This is very common when used vehicles are purchased. 

But an auto warranty is not a type of insurance even though it is often presented as one. Auto warranties are only designed to fix parts that are considered to be defective or faulty. They are not designed to fix parts that have broken down from wear-and-tear, collisions or other issues. There are also different types of auto warranties that you need to understand.

What Types of Warranty Coverage Exist?

  • Drivetrain and powertrain warranties - These warranties are designed to ensure that the very essential components of the vehicle last: the engine, transmission and the associated parts. Drivetrain and powertrain warranties protect against manufacturer defects of these components but will be voided if they haven't been properly serviced (such as with regular oil changes).
  • Bumper-to-bumper warranties - The standard bumper-to-bumper warranty is a three-year warranty (or 36,000 miles) that governs the parts of the vehicle from bumper-to-bumper. If these parts are considered to be defective, they will be repaired as needed.
  • Rust or corrosion warranties - This type of warranty is rarer but may be tacked on to the other warranty. This covers rust and corrosion if it occurs due to a defect.
  • Federal emissions warranties - This warranty is more popular now and will cover any repairs necessary to ensure that the vehicle meets its emissions standards.
  • Roadside assistance - This is another specialty warranty that offers roadside assistance if a vehicle breaks down. Most people already have this through their insurance.

How Does a Warranty Work?

To go through a warranty, you must first contact the vehicle entity you have a relationship with: either your dealer or your manufacturer. They will then direct you to the repair shop that will work with you. 

Warranties can be voided if an individual does not maintain their vehicle properly. Auto Tek provides complete auto services that will ensure that all the parts of your vehicle are well-maintained so that you can stay within your warranties. Contact our team of professionals today!

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