Frequently Asked Questions

South 20 Dodge Chrysler F.A.Q.

FFUN South 20 Dodge wants to make things as easy as possible for you when looking to make a new vehicle purchase. We collected information on some of the most asked questions relating to finance, parts, service and the trade-in process. Whether you’re trying to determine the differences between leases and loans or want to know more about add-on accessories. Simply choose your desired topic to browse the questions and answers within that category. If you cannot find a satisfactory explanation, please contact us via our online contact form or by phone 1 (888) 466-8786.

Finance

Leasing ensures that you’ll always drive a late-model vehicle, won’t have to pay for warranty-covered repairs and won’t have to bother will re-selling at the end.
Loans are also sensible for those who want to customize their vehicles, plan on keeping their cars for long periods of time and plan to re-sell their vehicles to help recoup the costs of ownership or expenses of additional cars. For those who quickly wear vehicles out, loans may be safer bets as lessors often add “excessive wear” charges if the car is returned with wear over the limits established by the contract.
Annual kilometres restrictions are a major limitation for customers who choose to lease. Lessors want their vehicles returned in saleable low-kilometer conditions, so they place kilometer caps on them. A typical yearly figure is between 20,000 and 55,000 kilometres. Beyond the established limit, fees accrue on a per-kilometer basis, usually in the range of $0.10 to $0.25 per kilometer. So if most of your driving is local, leasing makes sense. However, if you consistently tack on 500 or more kilometres a week, definitely look into a loan.
Yes, registration, taxes, extended service plans and other supplemental charges may be included in the financing plan. Please check with your Financing Specialist for further details.
Yes, although they function somewhat differently from new car loans. A down payment of 20 percent or more is often required and the interest rate can be a point or two higher. Understandably, banks are more hesitant to loan money for used car purchases, as they would rather own a newer car if the borrower defaults. However, the market is full of good used vehicles, many of which are created by short term leasing.
Down payment amounts may range between 10 to 20 percent of the vehicle’s total cost, although some purchases require no down payment. A typical loan period is five years with an annual percentage rate around 8 percent. Some manufacturers offer lower rates, but be sure to investigate any associated conditions or clauses.
The size of monthly loan payments depends on the amount borrowed, the length of the loan, the interest rate and other factors such as your credit history. Paying more money initially lowers the principal of the loan, thus reducing individual payments. At any period during the loan you may opt to pay off the principal in its entirety, at which point the title of the vehicle is transferred to you.
Most leases rely exclusively on the residual value in determining the end of term purchase price. These closed-end deals require you to pay the fixed residual amount regardless of the actual market price. Open-end leases work differently in that the actual market value helps determine the purchase price. As a customer you are responsible for any difference between the residual and actual value when buying outright.
First, the adjusted capitalized cost is determined. This figure represents the real purchase price after elements such as the down payment, incentive discount and trade-in credit are deducted from the capitalized (actual) cost, while any fees or charges (e.g. destination) are added. Second, the residual value, or estimated value of the vehicle at the end of the lease, is determined and then subtracted from the adjusted capitalized cost to yield a depreciation figure. The residual value depends on the length of the agreement, expected kilometres and make/model of the vehicle. Finally, a lessor assesses the money factor, a number that correlates with the cost of borrowing money during the lease period. While these terms may seem unfamiliar, full disclosure laws now require now requires dealers to publicize all leases’ down payment amounts, lengths, residual values and interest rates.
In formulating a monthly payment structure, a lessor is primarily concerned with the extent to which the vehicle will depreciate throughout the lease and the cost of borrowing money to finance the car during that period.
When paid in full, a loan terminates and you assume ownership. Your bank sends you the title that had been held while the loan maintained an outstanding balance. When a lease period ends you forfeit the vehicle to the lessor, unless the lessor offers to sell the vehicle afterwards. During the entire lease period the lessor maintains ownership and simply allows you to use the car. Ownership is only transferred if you chose to buy the vehicle after the lease terminates.
When you take out a loan, all of the money used to pay it off applies to your eventual ownership of the vehicle. The initial down payment and principal on the loan cover the total cost of the purchase. Lease payments, however, apply only to the use of the vehicle. The total sum of payments covers the vehicle’s depreciation over the time you drive it and is usually less than the outright price of the vehicle.
Unless you’re in the position to pay cash for a new or pre-owned vehicle, you’ll need to establish a payment plan to obtain that vehicle. Two options exist – taking out a loan or leasing.

Parts

Like replacement parts, some add-on accessories are factory authorized while others are produced in the aftermarket. Depending on the popularity of a vehicle, a variety of special components exist to modify it. Engine enhancements, body kits, interior pieces, electronics, exhaust systems, wheels and tires are among the many elements that contribute to customization. In some instances non-OEM Parts might void a warranty. Please consult your Parts Service Advisor for further details.
Many suppliers offer both OEM and aftermarket parts for a broad range of vehicles. Some specialty parts may not be produced in the aftermarket if demand does not warrant investment. Tracking down these obscure pieces may require consulting a parts specialist. Some dealers have caches of unused factory parts, often called New Old Stock (NOS) or New Old Replacement Stock (NORS). These command high prices especially when out of production. In some instances non-OEM Parts might void a warranty. Please consult your Parts Service Advisor for further details.
To determine the best method of replacing a part, check with you dealer, owners of similar vehicles and on the Internet to determine what option makes sense. You know the new OEM part will work, so read online testimonials to see if aftermarket replacements are worth the cost. You can also gain insight that’s helpful in a used search, learning the common defects/attributes of a part before buying it yourself. In some instances non-OEM Parts might void a warranty. Please consult your Parts Service Advisor for further details.
First, you can find a factory OEM part by either going through a dealer or contacting the manufacturer directly. Factory parts are built by the OEM manufacturer to the exact same specifications as the existing parts. New OEM components are generally the most expensive option but often yield the best fit, durability and overall quality. If you own your vehicle and are thinking of reselling, documenting repairs using factory parts can increase the resale value of the vehicle. Second, you can find a new aftermarket part from a variety of parts dealers online and at shops around the country. Aftermarket parts are often exact replicas of OEM parts but are built by companies not associated with the primary auto manufacturer. While aftermarket pieces are less expensive than their OEM counterparts, they also may suffer in terms of quality, fit and finish. Aftermarket parts are great to get a car back up to speed if the budget is an issue and fit/quality do not matter. However, some aftermarket companies produce pieces that are of exceptional quality. Third, you can find a used factory (or maybe even a used aftermarket) part at a salvage yard or from a private seller. Good used factory parts are a great way to save money and get an OEM specified piece at the same time. Obviously, used parts are subject to wear and are highly variable in their quality and usability.

Service

  • Be sure your engine oil is the correct viscosity. Colder climates can cause oil to thicken, demanding a thinner oil to start.
  • Check your antifreeze and be certain the proper water-to-antifreeze mixture is maintained. Antifreeze testers are available at many auto parts stores.
  • Verify that your windshield wipers are operable and keep the washer fluid reservoir full.
  • Double-check hoses and belts. Cold temperatures can cause rubber to shrink and crack, so be sure your hoses and belts have some flexibility left.
  • Always remember to check your vehicles service needs in your vehicle’s service maintenance guide provided to you or call and speak to a Service Advisor.
Always be sure to maintain the proper inflation for safety, performance and longevity. Buy four matching tires, for the most part. Some rear-wheel-drive cars can get by with just rear snows, but front-wheel-drive cars should never have snows up front and non-snows out back. The inconsistency in grip during braking can cause the tail end to slide out of the driver’s control. All-wheel-drive vehicles require four tires as well. When purchasing a set of snow tires try to pick up an extra set of wheels on which the rubber can be mounted. Not having to mount/dismount tires each season saves time and maximizes tire life. Often your dealer will sell a reasonably priced set of steel wheel to match the snow tires.
No tire is perfect, as extra competence in one category often means compromise in another. For example, a tire that is great in snow may be so-so on dry pavement and average in the rain. Try to find reviews on a tire to determine if it meets your criteria. Check your vehicles maintenance guide to determine your vehicles needs or ask your Service Advisor.
Different seasons require different types of tires. Many manufacturers sell vehicles with all-season tires that are suitable for most conditions. However, if your vehicle arrived with performance summer tires you should invest in a set of snow tires for safety in the bad weather. Some drivers with all-season rubber may also fit snows for added security.
Anything required for an annual inspection can also need replacing. Light bulbs, exhaust components and emission controls may require fixing. Check your vehicles maintenance guide to determine your vehicles needs.
Like tires, brake life depends heavily on driving style. Lots of stressful braking will significantly shorten the life. Replacement requires new rotors and sometimes, new pads. Check your vehicles maintenance guide to determine your vehicles needs.
The type of vehicle, specific tire and driving style determine the life of a tire. Many are rated to last 30,000 to 70,000 kilometres, but an aggressive style can wear out tires in 15,000 kilometres. Customers may deviate from OEM specification in the interest of better looks or performance. Check your vehicles maintenance guide to determine your vehicles needs.
Wipers need to be replaced, especially in climates with ice and snow. Sometimes just the blade needs replacing, while other times the entire wiper unit should go. Some customers may choose different types of wipers for better performance. Check your vehicles maintenance guide to determine your vehicles needs.
During scheduled maintenance it’s a good idea to inspect all hoses, belts and other connections under the hood to be sure everything is in good shape and properly attached. Check your vehicles maintenance guide to determine your vehicles needs.
Again, the interval of changing a battery depends on the type of battery, type of vehicle and local climate. Super cold regions may require a more powerful battery for cold starting, or a block heater. Also, rechargeable batteries that have completely lost their charge at some point often never reach full potential again. Check your vehicles maintenance guide to determine your vehicles needs.
The interval for changing the filter depends on the quality of filter, type of vehicle and environment in which most driving occurs. Travelling on dirt roads will surely clog a filter faster than paved highways. Also, local pollution can determine filter life. Check your vehicles maintenance guide to determine your vehicles needs.
Older vehicles required the replacement or adjustment of spark plugs much more often than new vehicles do. Manufacturers today promise over 100,000 kilometres before a tune-up that includes changing the plugs. Still, checking the plugs at 50,000 to 60,000 kilometres is not a bad idea. Check your vehicles maintenance guide to determine your vehicles needs.
Water and antifreeze keep your engine from overheating and freezing during extreme temperatures. Intervals for flushing the system and replacing coolant vary, as some manufacturers promise long lasting antifreeze good past 100,000 kilometres. A general timeframe would be every few years or 30,000 to 40,000 kilometres. Check your vehicles maintenance guide to determine your vehicles needs.
Changing your engine’s oil and filter is one of the most vital maintenance procedures possible. Oil keeps friction down in the engine and prevents the motor from seizing up. Typical intervals for new cars are between 5,000 to 15,000 kilometres. Check your vehicles maintenance guide to determine your vehicles needs.
Many warranties cover the parts and labour costs involved in fixing unexpected repairs but place the burden of expected maintenance on the customer. Certain repairs may be covered by some manufacturers and not by others. Check your vehicles maintenance guide to determine your vehicles needs.
You just need to take the vehicle in for service when the time arrives. Factory-authorized technicians must perform service and any other outside maintenance can potentially void a warranty. Check your vehicles maintenance guide to determine your vehicles needs.
By performing required service at the proper intervals and responding if something clearly goes wrong. Your owner’s manual explicitly lists service intervals, although cars are often equipped with “check engine” dashboard lights that signal needed maintenance. Check your vehicles maintenance guide to determine your vehicles needs.
Warranties are often transferable, meaning that a vehicle inside its kilometer and duration caps will maintain its factory warranty. Check your vehicles maintenance guide to determine your vehicles needs.
Depending on what is being repaired, the length of a factory warranty varies. Often a comprehensive “bumper-to-bumper” warranty covers everything outside of schedule maintenance. This is generally the shortest warranty period. Usually a longer powertrain warranty covers engine and transmission defects. Anti-corrosion protection often lasts even longer. Finally, some manufacturers offer roadside assistance for a limited time. Check your vehicles maintenance guide to determine your vehicles needs.
All new and many used vehicles arrive with a warranty covering unexpected repairs. Be sure to understand the duration and covered components of the warranty. A typical warranty might be written “48/50,000” meaning that coverage lasts either 48 months from the initial purchase or until the vehicle has 50,000 kilometres, whichever comes first. Check your vehicles maintenance guide to determine your vehicles needs.

Trade-In

Check used car values in guides, websites or by outside appraisers. You can also ask your Sales Advisor for trade-in value of your vehicle. Often both trade-in and private sale values are listed. Factors such as kilometer, overall condition, damage and known mechanical problems heavily influence the trade-in value.
Some are kept by the dealer and resold as used cars. Many are sent to auction and purchased by other dealers for resale. Dealers know that auction prices often will not match the sum credited toward a new vehicle, but they absorb the losses as sales incentives.
If you think you can get a better price selling privately, and it’s worth the time, money and effort, do not sell to the dealer. Some cars are of special interest and dealers will not always recognize those interests.
When you trade-in you don’t have to worry about selling the vehicle yourself or any of the associated costs (advertising, showing the car, etc). A dealer may offer a price you could not get yourself as an incentive to purchase a new vehicle. If the trade-in has known problems that could plague you later (when the buyer returns complaining), selling the car to the dealer eliminates the bother. Trading-in a lease car may relieve you of, in the long run, monthly costs you cannot afford. Sometimes people trade in lease vehicles because of poor gas kilometer or lack of practicality. Plus you could qualify for a tax savings when you trade in your vehicle to a dealer that you would not get if sold privately.
Trading in your current vehicle towards another can partially offset the cost of the new vehicle. The trade-in’s net value goes towards the purchase or lease of a new car. Conditions of a trade-in vary depending on who owns the vehicle. If you own the vehicle, trading-in means that you’re selling the car to the dealer for some determined price. As a result, the price of the new car goes down, only. If you are leasing a vehicle and do not own it, trading-in means that the seller of the new car agrees to pay the outstanding costs associated with the lease. Depending on the financing of the new vehicle and the outstanding balance on the old one, trading-in can either raise or lower the new car’s price.
South 20 Dodge Chrysler Ltd. | Frequently Asked Questions