Investing in Automobile Warranties

Automobile warranties are a great investment to make. We all know that sometimes our automobiles can break down at any time. Automobile repairs can be very serious and can require hundreds, or even thousands of dollars to pay for them. In today’s economy many Americans cannot afford to make the necessary car repairs for their automobiles because of the immense repair costs.

Getting a warranty on your automobile can protect you from having to pay most, or if not all of your necessary automobile repair costs. You can obtain an automobile warranty through your automobile’s manufacturer, or you can ask your local car dealership about warranties. Most new automobiles come with some type of automobile warranty called a factory warranty, but you can always purchase an extended warranty when your current automobile warranty expires.

There are two different types of warranties for automobiles; the power train automobile warranty and the bumper to bumper warranty. The bumper to bumper automobile warranty covers most of the car’s parts except those that need repair due to constant use and wear such as tires, wind shield wipers, brakes, brake pads etc. This can be a good warranty to have because it covers the most expensive repairs that might arise. The downside is that you still have to pay for the repairs that are caused by wear, but it is still a good warranty to have because it protects you from larger problems.

The power train automobile warranty covers all the moving parts of the automobile such as the engine and transmission. This is a great type of warranty because a transmission can cost over $3,000 to repair and if your engine goes as well, it is just as expensive, if not more expensive than replacing a faulty engine.

The bad thing about purchasing a new automobile, is that even if the car cannot work mechanically, you will still need to make the monthly payments that you agreed to when purchasing the vehicle. If you purchase a warranty or an extended warranty on your automobile then you are protecting your investment. You don’t want to have to make monthly payments on an automobile that is parked in your front yard because you cannot pay for the necessary car repairs on top of your monthly car payments. When you go to buy your next automobile, consider purchasing a warranty if your automobile does not come with one. You will be grateful when you need a car repair and your coverage takes care of the expenses. Any warranty pays for itself in the long run.

Bond Mejeh produces automotive related articles for Quick Cash Auto, a cash for cars service. Quick Cash Auto not only buys pre-owned vehicles of any year, make or model, but they also provide numerous articles about vehicle repair and automotive news.

Safer Cars Does Not Mean Safer Roads

These days, it is pretty standard for cars to include top of the line safety features. These range from rear-view cameras, lane departure warnings, traction control and even blind spot detection.

Driving a safe vehicle can also mean more money in your pocket as drivers can save on car insurance cost. A car insurance company is generally able to provide more affordable car insurance if your vehicle has safety features. However, safer cars do not necessarily mean safer roads across the country.

From January to June, approximately 18,720 people have died on U.S. roads. As a result of a growing economy, people are driving more miles compared to recession level data. Less unemployment means more cars are on the road getting people to and from work and more money for leisure activities. In 2017, Americans traveled 3.22 trillion miles according to the Federal Highway Administration.

Factor in more miles driven along with speeding, drug and alcohol impaired driving and distracted driving and the fatality rate is at an all-time high.

South Carolina leads the nation in traffic fatality rates per miles traveled. In 2017, the state had 1.88 deaths per 100 million miles traveled, which is almost two times the national average. Illinois reported 1,090 traffic deaths.

This trend prompted Governor Rauner to declare August 17 as Traffic Fatality Awareness Day at the Illinois State Fair through a partnership with the Illinois Department of Transportation, the Illinois State Police, Illinois Department of Health, Illinois Secretary of State and Mothers Against Drunk Driving.

States across the country have launched similar awareness efforts like Vision Zero. Vision Zero’s goal is to strategically eliminate traffic fatalities and injuries while increasing safe, healthy and equitable mobility for everyone.

Reducing speed is perhaps the most effective way to reduce the fatalities. Speed increases the distance it takes a car to come to a complete stop. The speed of impact is also directly correlated to the risk of death. The higher the speed of impact, the higher the probability of a passenger dying becomes.

Even with lower speeds, it is hard for police officers to enforce these lower limits. Automated cameras are already unpopular and adding more would also be costly.

What Is an ICO in Cryptocurrency?

ICO is short for Initial Coin Offering. When launching a new cryptocurrency or crypto-token, the developers offer investors a limited number of units in exchange for other major crypto coins such as Bitcoin or Ethereum.

ICOs are amazing tools for quickly raining development funds to support new cryptocurrencies. The tokens offered during an ICO can be sold and traded on cryptocurrency exchanges, assuming there is sufficient demand for them.

The Ethereum ICO is one of the most notable successes and the popularity of Initial Coin Offerings is growing as we speak.

A brief history of ICOs

Ripple is likely the first cryptocurrency distributed via an ICO. At the start of 2013, Ripple Labs began to develop the Ripple payment system and generated approximately 100 billion XRP tokens. These were sold through an ICO to fund Ripple’s platform development.

Mastercoin is another cryptocurrency that has sold a few million tokens for Bitcoin during an ICO, also in 2013. Mastercoin aimed to tokenize Bitcoin transactions and execute smart contracts by creating a new layer on top of the existing Bitcoin code.

Of course, there are other cryptocurrencies that have been successfully funded through ICOs. Back in 2016, Lisk gathered approximately $5 million during their Initial Coin Offering.

Nevertheless, Ethereum’s ICO that took place in 2014 is probably the most prominent one so far. During their ICO, the Ethereum Foundation sold ETH for 0.0005 Bitcoin each, raising almost $20 million. With Ethereum harnessing the power of smart contracts, it paved the way for the next generation of Initial Coin Offerings.

Ethereum’s ICO, a recipe for success

Ethereum’s smart contracts system has implemented the ERC20 protocol standard that sets the core rules for creating other compliant tokens which can be transacted on Ethereum’s blockchain. This allowed others to create their own tokens, compliant with the ERC20 standard that can be traded for ETH directly on Ethereum’s network.

The DAO is a notable example of successfully using Ethereum’s smart contracts. The investment company raised $100 million worth of ETH and the investors received in exchange DAO tokens allowing them to participate in the governance of the platform. Sadly, the DAO failed after it was hacked.

Ethereum’s ICO and their ERC20 protocol have outlined the latest generation of crowdfunding blockchain-based projects via Initial Coin Offerings.

It also made it very easy to invest in other ERC20 tokens. You simply transfer ETH, paste the contract in your wallet and the new tokens will show up in your account so you can use them however you please.

Obviously, not all cryptocurrencies have ERC20 tokens living on Ethereum ‘s network but pretty much any new blockchain-based project can launch an Initial Coin Offering.

The legal state of ICOs

When it comes to the legality of ICOs, it’s a bit of a jungle out there. In theory, tokens are sold as digital goods, not financial assets. Most jurisdictions haven’t regulated ICOs yet so assuming the founders have a seasoned lawyer on their team, the whole process should be paperless.

Even so, some jurisdictions have become aware of ICOs and are already working on regulating them in a similar manner to sales of shares and securities.

Back in December 2017, the U.S. Securities And Exchange Commission (SEC) classified ICO tokens as securities. In other words, the SEC was preparing to halt ICOs they consider to be misleading investors.

There are some cases in which the token is just a utility token. This means the owner can simply use it to access a certain network or protocol in which case they may not be defined as a financial security. Nevertheless, equity tokens whose purpose is to appreciate in value are quite close to the concept of security. Truth be told, most token purchases are made specifically for investment purposes.

Despite the efforts of regulators, ICOs are still lingering in a grey legal area and until a clearer set of regulations is imposed entrepreneurs will attempt to benefit from Initial Coin Offerings.

It’s also worth mentioning that once regulations reach a final form, the cost and effort required to comply could make ICOs less attractive compared to conventional funding options.

Final words

For now, ICOs remain an amazing way to fund new crypto-related projects and there have been multiple successful ones with more to come.

However, keep in mind everyone is launching ICOs nowadays and many of these projects are scams or lack the solid foundation they need to thrive and make it worth the investment. For this reason, you should definitely do thorough research and investigate the team and background of whatever crypto project you might want to invest in. There are multiple websites out there that list ICOs, we recommend checking this ICO calendar if you’re interested to invest in a crypto project.