Automobile Dealerships – Out of Trust – Keepers

The Necessity of a Keeper

When a lender feels its security is in jeopardy, it frequently places a keeper in the dealership. This action is usually precipitated by the lender losing its “comfort level” with the dealer.

While many dealers interpret the placing of a keeper in their dealership as a hostile action on the part of the lender, their reaction is based more upon emotion than logic. The lending officer works for a corporation and the corporation is owned by shareholders. The officer has a duty to the company and to the shareholders to protect their security.

“The act of (a lender) in placing its representatives at the plant of its debtor reflected only the natural instincts, interest and solicitude of any other creditor then in its position, and (the lender) is not on that account alone to be penalized by being declared the principal.” Commercial Credit Co. v. L.A. Benson Co., Inc. 184 A. 236, at 240 (Md. 1936).

See too: Cosoff v. Rodman (In re W.T. Grant Co.), 699 F.2d 599 (2d Cir.) cert. denied, at: 104 S.Ct. 89 (1983) where the court said the banks would have been derelict in their duty to their creditors and stockholders if they did not keep a careful watch on the debtor.

The lending officer did not wake up one morning and decide it would be a good idea to put a keeper in the dealership. In the typical case, the dealership had either been experiencing financial difficulties for a period of time, or a series of floor checks revealed the dealer had “sold and unpaid” vehicles of such an unusually high proportion to monthly sales, that the lender classified the vehicles as being sold out of trust. In either situation, a prudent lender must view the dealer from a different perspective.

No one can predict what a person will do under the continued pressure of serious financial difficulties. By the time a lender puts a keeper in a dealership, the burdens the dealer is shouldering have been growing for some time. The dealer usually does not fully comprehend the extent of the strain under which he or she has been functioning; but, when one faces numerous negotiations with creditors, endless days of chasing cash to make payroll and pay bills and does not have enough cash to purchase and keep a good trade, one’s judgment becomes clouded. An experienced lender knows that a normally rational person can do most anything when placed under a sufficient amount pressure, for a sufficient amount of time.

When the keeper appears, the dealer rather than being vengeful or hurt should realize the dealership needs professional help and seek it. There are many ways to continue operating a dealership with a keeper and to resolve the situation, re-capitalize the store, or sell the dealership at a fair price, vis-à-vis a fire sale.

In most instances, a keeper is placed in a dealership upon the mutual consent of the dealer and the finance company. At the meeting preceding such an action, it is wise for the parties to identify, agree to and understand the specific duties and corresponding actions, of the keeper.

The Keeper’s Affirmative Duties

Although the primary concern of the keeper lies in the care and custody of the floored vehicles, in most instances the lender also holds a security interest in all or part of the dealership’s assets. Consequently, the keeper will want to be and should be aware of the dealer’s attitude towards assets other than the floored vehicles and should report to the credit company any indication on the part of the dealer to dispose of any such assets.

The keeper, usually more than one person, will be at the dealership every business day from the time the first employee arrives, until the last employee leaves. The keeper should be responsible for:

(1) The condition, location and security of the pledged assets;

(2) Keeping the vehicles’:
a. Ignition Keys
b. Dealer License Plates
c. MSOs and / or Invoices and other documentation required to transfer title.

(3) Being present when the mail is opened;

(4) Taking custody of the cash and checks;

(5) Taking custody of the unused check stock;

(6) Supervising preparation of the bank deposit and agreeing upon whom will make the deposit;

(7) The disposition of proceeds on contracts of sold vehicles, to be sure the money gets to the proper parties;

(8) Arranging for third party finance companies, which purchase the dealer’s contracts, to include the lender’s name on proceeds checks, or, in the alternative, to refuse to permit the dealer to contract a sale to other finance companies;

(9) Being responsible for protecting the vehicles after the dealership closes; if the vehicles cannot be blocked from exiting the facility, via a fence and “blockers”, a security guard should be hired;

(10) Establishing a means of maintaining a running, daily, or semi-daily, inventory control of unsold vehicles. Only one vehicle at a time, for which the lender has not received payment, should leave the dealership, whether of not that vehicle is floored;

(11) Being aware of the activities in the Parts Department and its employees.

Courts have approved of lenders controlling the release of the bank’s collateral, depositing all accounts receivable in a special banking account and requiring the counter-signature of the bank’s agent for all payments from the special account [Ford v. C.E. Wilson & Co. Inc., 120 F.2d 614 (2d Cir. 1942)], receiving regular reports on the accounts payable activity, receiving estimated weekly expense budgets [Edwards v. Northeastern Bank, 39 N.C. App. 261, 250 S.E. 2d 651 (1979)], proffering advice to the dealer, even coupled with a decision to withhold credit [In re Beverages International, Ltd., 50 Bankr 273 (D. Mass 1985), requiring the debtor to hire a consultant acceptable to the bank in the management and sale of the company, requiring the debtor to implement a lockbox with respect to its receivables and requiring certain individuals to pledge their stock in the debtor, to the bank [In re. Technology for Energy Corp, 56 Bankr. 307 (E.D. Tenn. 1985).

Acts a Keeper Should Not Perform

If the work-out plan ever deteriorates and/or the relationship becomes hostile between the lender and the dealer, or creditors or employees of the dealer, the keeper’s will come under the scrutiny of a court. In such a case, those actions could be the beginning of a basis of liability or exoneration for the lender. In order to best protect the lender, the keeper should be aware of the following:

(1) The lender has an affirmative duty not to unnecessarily, maliciously or promiscuously disclose the financial condition of its debtor and any unauthorized disclosure could be a basis for both compensatory and punitive damages. Rubenstein v. South Denver Nat’l Bank, Case No 86CA0840 (Colo. 1988);

(2) Participating in board meetings and exercising decision making authority with respect to the day to day operations of the business could make the lender liable for all of the debts of the debtor. Lurgen, Liability of a Creditor in a Control Relationship With Its Debtor, 67 Marq. Law Review 523 (1984); See too: Restatement (Second) Agency, Section 14-0, Comment “a”;

(3) Evidence of personality conflicts with the borrower could support a bad faith claim by the debtor. K.M.C. v. Irving Trust Co., 757 F.2d 752 (6th Cir. 1985)

(4) Making threats which the lender is not prepared to carry-out, may support a fraud action against the lender. State Nat’l Bank of El Paso v. Farah Manufacturing Co. 678 S.W.2d 661 (Tex. App. El Paso 1984).

(5) Misleading a lender who intends to refinance the debtor, as to the debtor’s financial condition may result in liability to the third party lender. General Motors Acceptance Corporation v Central National Bank of Mattoon, 773 F.2d 771 (7th Cir. 1985).

Note too: while a factory does not seem to owe a duty to protect a lender’s floor plan status, to inform the lender of the fact that the dealer is going to sell, there is a triable issue of fact as to whether or not the factory has a duty to disclose the foreseeability of the dealer going out of trust. Beneficial Commercial Corp. v. Murray Glick Datsun, Inc. 601 F.Supp. 770 S.D.N.Y. 1985).

Procedures for Handling Insurance and Service Contract Monies

Some lenders have experienced staffs, which understand the above issues and problems. In any case, the dealer should be aware of them and should open new trust accounts. The accounts should be opened at a separate bank, in order to avoid any misunderstandings. If the lender wishes to audit these new accounts, that is fair. If a lending officer threatens to penalize the dealer for protecting the customer’s money, he or she is being unreasonable and the dealer should ascend the chain of command until reason prevails. If reason does not prevail, the dealer has hard evidence of the lender creating an untenable position, which evidence may prove useful at a later date.

The handling of the premiums for life, accident and health insurance, and for service contracts, does not create a problem, if a routine is established. Always, with respect to insurance premiums, and usually with service contracts, the sale is covered under a security agreement. The lender and dealer should agree that all “time sales” will be restricted to the lender, unless a third party financing company agrees to put the lender’s name on the proceeds check, which usually does not happen.

When a time-sale is being arranged, advance approval of the lender is should be required. Subsequently, when the contract is offered to the lender for purchase, the lender should deduct the amount necessary to release the flooring. If the proceeds of sale are insufficient to clear the flooring, the keeper should have already deposited the cash down payment, and/or have taken possession of the title to the trade-in.

The proceeds of sale, in excess of the flooring, are given to the keeper, who supervises the deposit of the service contract and insurance monies to the trust account and the mailing of the premiums to the appropriate insurance companies. If possible, the pay-off for the traded vehicle is also made from the general account of the dealership.

The above process, while time consuming, is necessary. The parties should appreciate the understanding, patience and cooperation needed from each other in order to make the operation run smoothly. If either the keeper, or the dealer, has a problem working with the other, the problem should be discussed with the keeper’s superior and resolved, or a new keeper assigned.

Procedures for Handling Payroll Monies

With respect to payroll monies, the dealership should continue with separate payroll account and the lender should agree to permit a payroll large enough for sufficient personnel to run the dealership in order to complete whatever stage of the work-out plan the parties have reached. If the dealership is winding-down sufficient payroll should be allowed for a “skeleton crew” to prepare the dealership for sale, or closing. Equipment will have to be guarded and maintained. Secretarial and accounting work will have to be completed. With respect to sales people, although they do fall within the minimum wage laws, they only get paid a commission if they make a sale and, if they do, they probably will have sold the asset for more money than the lender would get at an auction. The source of funds to cover the dealership operations is discussed in the next section.

Commissioned Salespeople

As mentioned, the commissioned salesperson gets paid a commission if and only if a contract for the sale of a vehicle cashes. They represent the best means of obtaining full value for the lender’s security. Consequently, the lender, regardless of its security interest, would probably be wise to subordinate its interest to the extent necessary for the sales people to earn a reasonable commission.

Closing a dealership is covered in another article. At this point, it is enough to mention that a lender, liquidating foreclosed vehicles, would have to deduct transportation, insurance, storage and auction fees from the forced liquidation sales prices of any vehicles it sold, before receiving any monies itself. Therefore, the amount of a salesperson’s commission for selling vehicles, net of the foreclosure costs, would appear to be a good investment, on the part of the lender.

An interesting question arises as to whether or not the lender has an implied duty, knowing the sales people are liquidating the inventory for the benefit of the lender, to inform the sales people that it, the lender, intends to keep all of the gross profit from the sale; and, further, if the lender, knowing it does not intend to allow the sales people to be reimbursed for their efforts, says nothing, do the sales people have an action against the lender?

In any event, the payment of employees (salaried or commissioned) should be made by the dealer from a separate payroll account. The account should be funded under the supervision of the keeper, but the lender’s employees should not participate in distributing the funds. Note: Participation in distributing the company payroll could make the lender liable for taxes. 26 USC 3505 and 6672.

Division of the Discretionary Income

Vehicle Income

If a lender maintains a security interest in the dealer’s vehicle inventory and if the dealership has collected and spent money for vehicles which have been sold, without reimbursing the lender for those vehicles, then the dealership’s gross profits from all future vehicle sales should be applied to reduce the number of sold and unpaid units. The cash profits from such sales should be applied immediately to the lender’s debt, such as vehicle gross profit, finance and insurance commissions and service contract profits. Factory rebate money and incentive monies should be assigned to the lender and applied to the borrower’s debt only upon receipt of the actual cash.

Service Department Income

Unless the dealership is averaging a 100% service absorption rate of its fixed overhead expense, which is unlikely, trying to operate a dealership on the service department’s income will be difficult, if not impossible. If the lender is unable or unwilling to allow these monies to be applied to the general operating fund of the dealership, it means the lender has decided to close the dealership, whether it believes so or not.

The service department monies include gross profits from parts, service, labor and the body shop, if the dealership has one. The percentage of all fixed overhead expenses covered by this profit reflects the dealership’s absorption rate.

If the dealership is being sold or closed, these monies should be used to complete the payrolls necessary to accomplish an orderly transition or liquidation.

As always, consult with a qualified attorney whenever dealing with out of trust situations.

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The US Automotive Industry and The Big Three

We have a proud car culture in the United States but, surprisingly, not many people know too much about this country’s automotive history. For this history lesson, we are focusing on the automotive “industry” rather than the history of the automobile itself.

When It All Began

In the 1890s, the American automotive industry began and, thanks to the use of mass-production and the large size of the domestic market, quickly evolved into the largest automotive industry in the world (though this title would be taken from the U.S. by Japan in the 1980s and then from Japan by China in 2008).

The U.S. motor vehicle industry actually started with hundreds of manufacturers, but by the end of the 1920s, three companies stood apart from the rest:

  1. General Motors
  2. Ford
  3. Chrysler

The Big Three

These three companies continued to prosper, even after the Great Depression and World War II. Henry Ford began building cars back in 1896 and started the Ford-Motor Company in 1903. Ford utilized the first conveyor belt-based assembly line in 1913, improving mass production of its Model T. The assembly line decreased costs significantly and the Model T sold so well that it propelled Ford into the largest automobile company in the U.S.

General Motors was founded by William Durant (formerly a carriage maker)n in 1908. In the first couple of years, GM acquired Buick, Oldsmobile, Oakland (later to become Pontiac), Cadillac, and a number of other car companies. Durant also wanted to acquire Ford but Henry Ford opted to keep his company independent. Having become a little to “acquisition-happy,” Durant over-extended the company and was forced out by a group of banks who took controlling interest in the company. Durant then teamed up with Louis Chevrolet and founded Chevrolet in 1913, which became a quick success. Durant retook majority control in GM after acquiring enough stock and GM acquired Chevrolet in 1917. This did not last long, however. Durant was forced out again in 1921. In the late 1920s, GM overtook Ford as the largest automaker.

The former president of Buick and a former executive of GM, Walter Chrysler took control of the Maxwell Motor Company in 1920, revamped it, and reorganized it into Chrysler Corporation in 1925. Chrysler acquired Dodge Brothers in 1927 and, in 1928, introduced the DeSoto and Plymouth brands thanks to the dealer network and manufacturing facilities that came with the Dodge acquisition. By the 1930s, Chrysler overtook Ford and became the second largest automaker.

1950s and Beyond

By 1950, America produced almost 75 percent of all automobiles in the world. At the start of the 1970s, however, U.S. auto companies (especially the Big Three) were severely affected by increased competition from foreign auto manufacturers and high oil prices. In subsequent years, companies bounced back occasionally but the crisis reached its pinnacle in 2008, prompting Chrysler and General Motors to file for bankruptcy reorganization and be bailed out by the federal government. While Ford was also affected by the crisis, it decided to power through on its own and did not take the bail out. We actually have a lot of respect for Ford as a result of this. They did not take the easy way out.

The year 2014 saw saw the biggest (seasonally adjusted annualized) sales in history with 16.98 million vehicles.

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The Need for Hybrid Cars

Since the very conception of the automobile, engineers and designers have been searching for was to make them more efficient and save on fuel consumption. Petrol fuels the majority of vehicles and diesel fuel is used in heavier automotive equipment. The internal combustion engine is considered to be a major if not the biggest source of environmental pollution and the cost of fuel is increasing every day.

With a constant rise in fuel costs and the environmental concerns regarding automobiles, vehicle engineers have had to develop more economical and environmentally safer alternatives to the internal combustion engine that powers most cars. This has led to the birth of the hybrid automobile. These hybrid automobiles offer a number of benefits. The hybrid automobile is a car that is powered by both an electric motor and a gasoline engine. Compared to non hybrid vehicles, the hybrid car saves on the cost of fuel by being more fuel efficient and has a lower rate of fuel consumption.

Hybrid cars operate on a dual mode where the electric motor, powered by batteries, takes over once the gasoline engine has gotten the vehicle up to speed. Braking and deceleration generates energy that is used to charge the electric motor’s batteries. This system allows the hybrid car to provide better fuel efficiency. This also means that the engine of a hybrid vehicle is shut the moment the car is stopped. Considered the biggest advantage to the hybrid car is the reduction of environmental pollution due to fewer emissions of carbon dioxide and other harmful gases in to our atmosphere. Automobile manufactures such as Honda, Toyota, and Ford have already introduced hybrid car models to the commercial market and several others are in development.

Currently there are two types of hybrid vehicles on the market. The first is the “Series” hybrid. A battery powered electric motor powers the Series hybrid car. It also has a gasoline powered engine but it does not singularly power the vehicle. The gasoline engine powers a generator which is used in turn to charge the batteries of the electric motor. The electric motor is left on during the vehicles entire operation however the gasoline engine can be switched on or off depending on the needs of the vehicle. This type of hybrid automobile provides better mileage in city traffic.

The second type of hybrid vehicle on the market is called the “Parallel” hybrid. The Parallel hybrid car, like the Series type, has a gasoline engine and an electric motor. The electric motor and the electric motor can both be used to turn the transmission and power the vehicle. The major difference between the two types of hybrid cars is that the Parallel hybrid uses its electric motor to boost the vehicles power when required to increase the car’s speed. The Parallel hybrid car is considered better suited for the open highway.

Hybrid automobiles provide several benefits due to some very unique features. The construction of the hybrid vehicle uses more lightweight materials than traditional automobile. This saves energy by using less to propel the hybrid car. Hybrid cars also increase energy efficiency because of their more aerodynamic shapes. Tires used by hybrid vehicles run on a higher pressure and are made of a more rigid material than general car tires. The higher pressure helps to increase the vehicles gas mileage per gallon of gasoline used. The overall efficiency of the vehicle is increased by these tires because they reduce friction on road surfaces and provided a grip. The braking system provided an energy transfer from the electric motor to the vehicles batteries when ever the brakes are applied. The overall gas mileage of a hybrid varies from model to model. The EPA test numbers report that the Lexus RX400h receives 31 MPG in the city and 27 MPG the highway while the Honda Insight receives 61 MPG in the city and 68 MPG on the highway.

In conclusion, the future of automobiles is currently the hybrid car and purchasing a hybrid vehicle will not only save you money but will also allow you to take responsibility and do you part in creating a safer, cleaner and greener environment.

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Why Act on Windshield Replacement?

Windshields play an essential part in automobiles but a lot of drivers are not aware of this fact. Windshields will serve as structural shield and support for the roofs of automobiles. In addition, windshields will protect drivers and the passengers as well from wind and other elements. Because they play such essential tasks, they must be constructed well and there must not be any room for error during the process of manufacturing. Manufacturers must guarantee the quality of the products before they are going to install them to the automobiles.

On the other hand, hundreds of people pass away every year due to car accidents since they were thrown away from their automobiles. Sadly, a lot of people do not recognize the risks and dangers a simple nick or crack on their windshields can cause. It must not take busted glass across the whole windshield in order to get your attention on your car. When it comes to the repair of auto glass, it is very essential to take the right precautions.

At times, repair is good enough but if the break done is very serious, then, simple repair is out of question. In such cases, windshield replacement will be the best bet. Whether you will admit it or not, windshield replacement is necessary if there is a break which is lesser than three inches. At times, these cracks begin as little as the tip of a needle which can be caused by mechanical stress, temperature deviation and rocks. But regardless of the reasons behind the scratch or crack, it is very important to act on windshield replacements before it will be too late. As mentioned earlier, windshields are there to shelter you from any object flying on the air. Therefore, waiting for too long to replace faulty windshields might actually become a troublesome element of the automobile. More than 12,000 fatalities every year come from individuals who are being thrown away from their cars.

In order to minimize such accidents caused by broken auto glass, windshield replacement is needed. Take enough time in order to shop around to locate reputable service and know the windshield replacement cost. Make sure that the manufacturer have good replacement safety standard and can deliver the service that is worth the cost. Make sure that the quality of the glass is good enough to shelter you from any form of debris falling into your car. It will also be helpful if you are going to contact a technician to find out what kind of services that is good for your car.

Most companies might prefer to arrive to you and they may offer higher price tag yet if they can offer safety standard then it will be worth it. If you are thinking of the price tag, there is a windshield replacement insurance where you can take advantage of. You just have to know what are the needed requirements for the insurance given in your locality. Having windshield replacement insurance will not only help you financially but will ensure that you get standard quality of service.

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The Automobile in Melody

Historical events are captured in the music of the era. ‘Over There,’ ‘How ‘Ya Gonna Keep ’em Down on the Farm after They’ve Seen Paree, and ‘When Johnny Comes Marching Home’ were some of the Doughboy songs of World War I. Al Jolson singing ‘Brother, Can You Spare a Dime’, and ‘Dust Bowl Blues’ marked the Great Depression. ‘Fightin Side of Me’ revealed the nation’s conflict over Vietnam in the ’60s. So it is only natural that the automobile, which changed American life forever would be immortalized in song and it was.

At first the automobile was only for the wealthy and this was reflected in early sheet music. Even though there were no lyrics, ‘The Swagger’ and ‘Up Broadway’ featured fashionably dressed urban couples with an automobile. Then came the song ‘The Auto Man’ with the lyrics implying that ownership of an automobile indicated wealth and prestige. But along came Henry Ford who pledged to manufacture an automobile that the man on the street could afford and he kept his promise. In October 1908 the first Model T’s, priced at $850, rolled off the assembly line. Over nineteen years of production, its price would drop to $260. The Model T was referred to as the Tin Lizzie and the Flivver and became the subject of many songs. Lizzie is a nickname for Elizabeth and was a popular name for horses at that time.

So then they sang:

Old Zeke Perkins sold his hogs the other day,

The gosh-darned fool threw his money right away;

Rode into town, sittin on a board,

Came home ridin’ in a brand-new Ford!

However, the roads were still designed for horses and did not easily accommodate the speed of the new tin horse so in 1912 along came the song, “Bump, Bump, Bump in Your Automobile.” While the song lyrics emphasized the poor road conditions, one line inferred that women were attracted to male car owners with the words “Molly May said she loved Willie Green. Best of all she loved Willie’s machine.” This theme was repeated in many of the early automobile songs.

And the poor road conditions often resulted in mechanical breakdowns that popularized the tune, ‘Get Out and Get Under’ with the cover sheet depicting a well dressed man under a cabriolet with his legs extended, wrench in hand and his fashionably dressed lady friend in the passenger seat looking down anxiously. The freedom provided by this new invention also carried over to courting customs allowing more opportunities for intimacy and privacy triggering some social anxiety about the relationships between unmarried couples. This together with the liberation of single women in the Roaring 20’s inspired tunes such as ‘Up and Down the Eight Mile Road,’ 1926.

There were also songs about particular models like ‘Cole 30 Flyer’ with the lyrics ‘You will win me Bill, heart and soul, if you buy a Cole.’ These may well have been early attempts at product-placement advertising. Since Ford was producing most of the automobiles of the era, they were popular song subjects. In 1928 when the Model A was introduced, Walter O’Keefe wrote ‘Henry’s Made a Lady out of Lizzie’. Abner Silver and Jack Meskell followed with ‘Poor Lizzie, what will become of you now that your sister is here.’

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A History of Hybrid Cars

As people become more environmentally conscious, gas prices begin to soar, and independence of foreign oil becomes more of a concern, hybrid cars become more and more popular. A hybrid automobile is defined as a vehicle that uses more than one source of fuel. Many of these vehicles use a combination of a typical gas powered internal combustion engine with an electric motor. While these vehicles were quite rare historically, they have only recently become more popular. Many automobile manufacturers now offer a variety of models that use this technology. While these vehicles still rely on gas, they can greatly reduce the amount of fuel used.

When automobiles were still in their infancy around the turn of the century, there were actually quite a bit of electric powered vehicles on the road. At that point, gas-powered vehicles did not dominate the roads in the way that they do now. Hybrid cars did not develop until about one hundred years later, at the beginning of the 21st century. While the first known model was developed in the 1960s, they did not become available until the end of the 20th century. The very first hybrid vehicle was introduced in 1900. It was initially an electric only vehicle, but a gas-powered engine was added to the automobile soon after, making it the first hybrid automobile.

The idea for this kind of double powered vehicle reemerged multiple times over the following decade. These electric and gas powered cars are well known for their better fuel efficiency and their ability to prevent environmentally friendly driving. These vehicles are built much in the same way as conventional gas powered automobiles, but the battery is much more prominent. These batteries are rechargeable, and they are used to power the electric engines that are installed into these vehicles.

While they do still rely on fuel to run, hybrid cars are certainly a step in the right direction. Since electric motors do not use any energy and typically only operate at slower speeds, this can greatly reduce your use of gasoline, particularly if you are only driving below 40 miles per hour. The battery also charges while the car is running, meaning you don’t have to worry about doing any charging yourself. While these vehicles can be a bit expensive, the prices are getting more affordable. Plus, you may be eligible for a tax incentive, and you may find that your savings in gas money will make the investment worth the cost.

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Salvage Cars Significance in Automobile Industry

The business of salvage cars and the parts of such cars contribute to a major part of automotive/automobile industry in the US economy. It has provided jobs for thousands of people not only in US but elsewhere in the world. There are uncountable companies today which make their livelihood out of this business. In this article we will see the practical aspects of salvage car business, precautions to be taken while buying such cars and factors that affect the resale value of such cars.

The salvage titled car is one which faces damage in many ways like a natural calamity like flood or earthquake and mainly by a road accident. Such cars are usually rated with a very less value or even of no value by the insurance companies in the US. The factors that affect this value are the current value of the same car in the market. If the expenditure to repair the damaged car is more than half of its current price, it will be declared as salvage motor.

Then how do such cars get buyers? And how did this salvage business flourish?

Over the period of a decade these cars managed to get a good number of buyers, so much so that the business expanded its reign into the internet world. Not only the auto auctions are held in different parts of the country but also conducted in many websites. The resale value of such cars is individually decided by the buyers but generally, the buyers get carried away with the value declared by the insurance companies.

The reason for this is the extent of damage done to the car. Even after the car is repaired and is ready for use, it is viewed with high suspicions regarding the healthy working of the engine. The buyers generally used to prefer used cars over salvage title cars. Overcoming these hurdles, the automobile auctions performed considerably well in terms of specific salvage cars like Ford and Chevrolet. Sometimes the auto auctions even conduct exclusive ford salvage car auctions and Chevrolet salvage car auctions.

The buyers mainly look at the brand names of automobiles in such cases.

The online presence of this business is through certain websites which allow viewers to actively participate in online auctions and online sale and purchase of repaired cars, damaged cars and salvage title cars. There are two ways of doing this business; one is to buy them and have them in the junkyard. They are also called as Salvage Yards. Owners preserve them in a junkyard and buyers just choose a car of their wish and purchase it. Or even take a few parts from salvage cars and pay only for the parts. This type of business is usually termed as You-Pull-It-Yard. The other way of doing is to buy such cars, repair and sell them or even auction them. There are many companies and individual owners doing this work in their websites.

There are websites which sell reasonably cheap and good salvage cars online; which are mostly privately owned. There are also the US government websites which give information of different used cars like http://www.bar.ca.gov and http://www.vehiclehistory.gov. These are maintained by the government so you need not worry about the duplicate content issues.

As much as it is advantageous and profitable business, certain precautions should be taken while purchasing these cars from dealers. Be careful of fraud dealers who fake the authenticity of the repaired cars. Some tips to value the rates are: find out the exact value assigned by the insurance company of that car before purchasing it, compare the value of salvage car with that of a new car of the same model. By doing this, one will clearly know the genuineness of the proposed rates. Some dealers also include the repair cost into the resale cost. Exclude any such repair costs when you buy salvage cars or salvage auto parts; make sure you clearly have an idea of the market rates of all automobiles.

Find out about more dealers and junkyard from the store locator provided in various websites including the two sites mentioned above.

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How to Purchase a Used Automobile: Tips From the Auto Insurance Guys

These days, purchasing a new car requires a lot of money. For those looking for another option due to the financial output, shopping for a used car may be a good bet. Of course, a previously owned car, no matter how sleek and shiny may have hidden disadvantages.

Below find tips from some finely-tuned insurance professionals on how to go about the task of shopping for a used car.

8 Ways to Get a Good Deal on a Previously-Owned Car

• Decide How Much You Can Spend on the Purchase

Prior to shopping around for a good used car, do a personal financial tally. Then focus only on buys you can afford – whether via financing or full payment method.

• Choose the Right Kind of Vehicle

Unmarried people without kids do not need a big car. On the other side of the coin, married folks with children in tow could use a larger car. Recreational drivers, long-distance drivers and city or highway drivers have different needs as well. Assess your individual requirements, then shop for the car that matches them.

• Check Out Prices and Repair Frequency

Look online to determine what you should be paying for car makes and models according to year and usage. This search will also let you know what type of vehicles requires less maintenance work and what type has less mechanical headaches.

• Learn about the Car’s Past

Research a particular car’s history by putting in the Vehicle Information Numbers. This will get you to a full report about past collisions, owners and even recorded maintenance and repair jobs.

• Test the Car out by Taking it for a Spin

Drive your prospective car purchase over a calculated route that includes hills, bumps, curves and highway maneuvering. This way, you’ll get an idea how the overall driving ability is.

• Get a Professional Mechanic’s Opinion

Enlist your favorite mechanic in the decision by hiring him or her to inspect the car for surface problems that a layman like you may not be able to detect.

• Use Your Price-Negotiating Skills

Utilize the knowledge you have gained from all your research on the car to negotiate a price that fairly reflects its true value.

And Last But Surely Not Least

• Don’t Forget About Auto Insurance

Before completing the buying process, speak to an experienced independent insurance agent about insurance for the vehicle. After binding the policy, sign the contract, pay, and you are good to go. No worries about the possibility of no coverage on the road to home!

Now that you have a new (used) automobile take care of it with good maintenance practices and remember to keep driving safety a priority.

Happy driving!

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Military Hospital Abuse and Filing Medical Malpractice Lawsuits

Anyone that has kept up even remotely with the news over the last two years is very aware of the many atrocities that have occurred at military hospitals especially those for veterans or Veterans Affairs hospitals. Despite the fact that these hospitals have probably been engaging in reprehensible behavior for years, it finally all came to light when the story about the extreme negligence and abuse regarding patients at Walter Reed hospital in Washington DC broke. It was then found out that many of these hospitals had negligent and sub par staff, dirty and unkempt facilities and countless instances of medical malpractice.

One of the reasons that these hospitals were able to operate in the manner that they were for so many years was because of the many restrictions the militarily makes when an individual signs up for duty. One of the things that an individual gives up when he or she decides to become a member of the military is the right to sue the government. Suing a military hospital counts as suing the government, so many people suffering from abuse did not go about bringing medical malpractice lawsuits against these hospitals. As a result, the hospitals continued to degenerate. Lawsuits can be an incredible way to keep hospitals and other organizations in check.

But despite this huge restriction, there are ways around it. The best thing that someone that has suffered from abuse or negligence at a military hospital is to get a close relative to file the lawsuit instead of him or herself. One other thing is that a patient who is not on active duty may have grounds in certain cases to file a claim.

There are many medical malpractice cases that can be filed in regards to these hospitals. Atrocities that may occur include:

• Mistreatment
• Misdiagnosis
• Delayed diagnosis
• Wrong amputation
• Wrongful death

If something has occurred to you or someone you love while staying at a military hospital, the following can legally file a claim against the hospital:

• Someone who is married to a current soldier
• The child of a current soldier
• A retired member of the armed forces

Do not let these restrictions keep you from reaching for justice.

To find out more about filing claims against military hospitals, visit the website of Washington military hospital claim lawyers of Fuller & Fuller today.

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Cardinal Hill Rehabilitation Hospital, Lexington, KY – Premier Post Acute Rehab Specialists

Opening in 1950 to treat childhood victims of polio, Cardinal Hill Rehabilitation Hospital has evolved into a 108 bed physical rehab facility that provides premier services to post acute patients from Kentucky and across the nation. Patients and family visiting from outside of Lexington have an attractive selection of hotels in Lexington, Ky from which to choose.

Owned by the Kentucky Easter Seals Society, Cardinal Hill’s mission is to assist people with limiting disabilities to achieve as much independence as possible. The hospital is accredited by CARF, or the Commission on Accreditation of Rehabilitation Facilities, and serves over 9,000 adult and child patients every year, meeting their physical rehabilitation needs via healthcare services provided in outpatient, inpatient and at-home settings. It is one of the largest physical rehabilitation centers in the Commonwealth and can be visited from various hotels in Lexington, Ky.

Inpatient care is provided at the Hospital and includes services for end-of-life, elderly/disabled, and infection. Outpatient care is provided through the Cardinal Hill Pain Institute, Outpatient Clinic, Home Care Services and Adult Day Health. Services rendered through these facilities and programs include physical rehab, geriatric services, sports medicine, wound management, arthritis center, home health, fitness center, and more. Patient and family support services are also provided for assistance with government services, translation, support groups, transportation, and chaplain/pastoral care.

Cardinal Hill Rehabilitation Hospital specializes in a variety of injuries and conditions which require extensive rehab treatment. Such specialized services include treatment for brain injury, spinal cord injury, amputation, neurological and orthopedic conditions, and other conditions which are traumatic or disabling. Those requiring Cardinal Hill’s specialized rehab services will find wonderful accommodations in the many hotels in Lexington, Ky offered throughout the city.

The hospital also contains several therapeutic pools to help patients progress in their treatments and are easily accessed from nearby hotels in Lexington, KY. These pools include a Therapeutic Pool with a maintained temperature of 95ºF, a Therapeutic pool maintained at between 86-88ºF, and another pool that provides swimming resistance. These pools can be accessed via ladders, stairs, zero entry ramps, or chair lifts.

The Rehabilitation Unit opened in 2005 and is housed within the Hospital. The unit contains semi-private rooms, meets the rehab needs of inpatient guests and utilizes state-of-the-art techniques administered by skilled rehabilitation professionals. The goal of this specialized unit is to treat orthopedic problems and mild neurological conditions as well as to help de-condition patients who are not qualified for acute physical rehab.

If you have a debilitating physical problem and live in Kentucky, or live outside of the state but cannot find adequate physical therapy assistance, contact Cardinal Hill Rehabilitation Hospital to help you or a loved one recover a more independent life. Should you need a place to stay during your visit to Cardinal Hill, book a room at one of the many luxury, mid-range, or budget hotels in Lexington KY, where you will be greeted with Kentucky hospitality and inviting accommodations.

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