Chrysler Recalls Over 900000 Cars for Electrical Problems – DailyFinance
By TOM KRISHER
DETROIT — Nearly 907,000 Chrysler, Dodge and Jeep SUVs and cars are being recalled for alternators that can fail and heated power mirror wiring that can short and cause minor fires.
The recalls, posted Thursday by U.S. safety regulators, push the total number of recalls so far this year 544, totaling a record of more than 52 million vehicles.
The largest of Thursday’s recalls covers nearly 470,000 Jeep Grand Cherokees, Chrysler 300s, and Dodge Chargers, Challengers and Durangos from the 2011 through 2014 model years. The alternators can fail, causing the 3.6-liter V6 engines to stall unexpectedly.
The problem also can cause the electrical system to fail, as well as knock out power-assisted steering, antilock brakes and electronic stability control. It can even cause fire or smoke, according to documents Chrysler filed with the U.S. National Highway Traffic Safety Administration.
NHTSA opened an investigation into the problem in July, and Chrysler began its own probe in August. The company analyzed warranty complaints and alternators that had failed. The alternator generates electricity to recharge the battery and run other devices.
Chrysler investigators traced the problem to heat fatigue in an alternator diode. Chrysler said it received 322 complaints about the problem, while 55 people complained to NHTSA. The company said it knows of one crash related to the problem, but no injuries or fires.
The company will replace the alternators with upgraded versions for free. Owners will be notified in November. The company says customers who see warning lights or suspect a problem should contact their dealers.
The recall affects cars and SUVs sold mainly in the U.S. and Canada, but some were sold in Mexico and overseas markets.
The second recall covers almost 437,000 Jeep Wranglers from 2011 through 2013. Water can find its way into the heated power mirror wiring harness and cause corrosion. That can cause a short and could cause a minor fire and smoke, as well as cause loss of function of the mirror.
The problem was discovered in February after three Wranglers in Canada were damaged. Chrysler says it has 26 complaints about the problem, but it knows of no fires, crashes or injuries.
Dealers will move the wiring and install a protective shield to keep water out at no cost to owners, starting in December. Most of the Wranglers are in the U.S., Canada and Mexico, but more than 78,000 were sold overseas.
The total number of recalled vehicles already has shattered the full-year record of 30.8 million that was set in 2004. The number of auto recalls, however, isn’t a record. That record, 684, was set in 2008, according to Stericycle, a firm that helps companies track and manage recalls.
General Motors’ massive series of safety recalls totaling over 30 million vehicles is mainly responsible for the record vehicle total. GM (GM) did a companywide safety review after it botched the recall of 2.6 million older small cars with faulty ignition switches.
Automakers are recalling cars more quickly after GM was fined $35 million for its slow response to the ignition switch recall and Toyota (TM) paid a $1.2 billion penalty to settle a criminal charge that it hid safety information from NHTSA.
When you get into that back office and start signing all the paperwork, the topic of extended warranties will come up pretty quickly. Ellie Kay, an author of 15 finance-related books, notes that such warranties are negotiable.
“Before you sign on the dotted line, check out other sources of extended warranty pricing,” she says, such as those provided by your bank or insurance company. “Then either use this lower price in the financial and insurance office for negotiation to get them to match the price, or buy it from the other source.”
A scenario from Kay during her last car purchase: “The dealer quoted me $4,200 for a three-year extended warranty for my 280SLK Roadster Mercedes that included a $250 deductible. USAA — my insurance company — gave me a three-year warranty for $3,200 with zero deductible. I’ve used the new warranty once already. The bill was $1,100 and I paid nothing because of the zero deductible.”
Bottom line: The default extended warranty is almost always the worst deal.
You may have a monthly payment figure in your head when shopping for a new car, but your interests are better served when you focus on the out-the-door price instead.
“A sales rep can often trick you by offering a lower monthly payment, but [one that] will stretch out the terms of the loan,” says David Bakke, a car buying expert at MoneyCrashers.com.
You can reduce the overall cost of the car via negotiation and by skipping accessories and add-ons. “Things like navigation systems, rims, floor mats or car audio/entertainment systems can be purchased from a third party vendor, usually for less.”
All our experts agree: Don’t even mention your preferred or maximum monthly payment price.
It may be tempting to just head to one local dealership, take a test drive or two, and walk out the door with a new car, but you’ll save yourself a lot more money by doing a little pre-shopping research.
“Once you have your choices narrowed down to a few makes or models, contact the Internet sales manager of a few dealerships,” suggests Bakke. “These folks can often offer better pricing than what you’d find dealing with an on-site sales person. Plus, you save time.”
In addition to, or in lieu of, e-shopping, Joshua Duvall of Capital Financial Services says to “find a few vehicles from different manufacturers and pit them against one another.” He explains that the car buying market is based on quantity and the fact that dealers want to move cars. “Force them to compete for your business.”
“Dealerships often employ hard-sell tactics that can be overwhelming for a first-time buyer, so it is a good idea to go with someone who has been through the process before,” explains John Ganotis, founder of CreditCardInsider.com.
Granotis also says that if you’re buying a used vehicle, it’s wise bring along a friend who knows his or her stuff when it comes to car health. For example, a mechanic who can peek under the hood, or recognize if something subtle is wrong during the test drive, would be especially handy.
OK, so sometimes ol’ Sally breaks down, and you need to get a new set of wheels, stat. If you don’t fall into that category, though, our experts recommend choosing your purchase date strategically, such as during a major sale. Better yet, wait for the end of a promotion.
Dealership salespeople often receive a bonus if they meet their targets during a promotion. Even if they lose money on a vehicle at the end of a promotion, they typically make up for the loss with their promotion target bonus.
Erin Konrad of CouponPal suggests buying near the end of the month. This is when salespeople are trying to meet monthly quotas and are more likely to negotiate.
Be familiar with common strategies employed by dealerships and sellers. For example, MSN Money warns against the “four-square” trick. (I’ve had this one used on me.) In this trick, the salesperson draws four boxes with a number in each: your old car’s trade-in value, the new car’s price, the down payment, and your monthly payment. “From there, the salesperson begins crunching numbers — most likely making it too hard for you to follow,” writes MSN. He or she will shift your focus to the monthly payment, which can result in a longer loan and a higher interest rate.
Another common trick is to heighten your sense of urgency, says Business Insider via Gregg Fidan, founder of RealCarTips.com and the author of “Honest Guide to Buying a Car.” For example, the dealer may tell you “that color is not available; there’s only three left statewide; the price is good only for today; someone else is interested in the car, better decide quickly, etc.” In this case, be patient and courteous, but remain level-headed and never rush to buy. Study up on Fidan’s list of 112 car-buying scams.
To sum up the list: Don’t let yourself get too caught up in the excitement of shiny metal, and remember that in six months that “new car excitement” will have faded, and you’ll be due for an oil change.