Monthly Archives: June 2010

Mercedes and BMW to open used car business in India

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Posted in Uncategorized

The Indian market is a quickly growing one in terms of auto sales, and Mercedes-Benz and BMW, who just recently expanded into the country, have announced plans to open up used car dealerships in the area soon.

According to Business Standard Motoring, Mercedes dominates the luxury market share in India, starting sales there in the late nineties. The company currently estimates that there are 30-35,000 Mercedes on the road in India.

BMW, while leading luxury sales worldwide, is far behind in India. The company only began selling cars there in 2007, and less than 8,000 cars are on the road, although the brand is rising in popularity.

India does not yet have an outlet for pre-owned luxury car sales. Both companies hope that selling lightly-used cars at a price comparable to popular new models like the Honda Civic will encourage drivers to switch to a used Mercedes or BMW and build brand loyalty.

“[The] used car segment is something that every car manufacturer in the country would like to explore, depending on the initial volume base. Now these two big luxury car makers in the country seem to have a desired car park to make the business viable,” Rakesh Batra, an industry expert at Ernst & Young, told the news source.

Ford Fiesta focuses on fuel economy with a gas engine

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Posted in Ford

Hybrids have become the kings of fuel economy, but old-fashioned gas engines have also come a long way in conserving gas. Ford‘s new Fiesta model, for example, promises to get at least 40 miles per gallon on the highway. Those worried about both saving and going green may want to look at used Toyota and used Ford models before paying new car prices.

The Fiesta’s 40 miles per gallon is impressive for a gas-powered engine, and puts it in the ballpark of hybrids like the Honda Insight at 43 mpg and the Toyota Prius at 48 mpg. According to the Wall Street Journal, Ford designed the car in the same manner of the economy cars of the past.

The model attains its impressive fuel economy from its lightweight frame and small four-cylinder engine. The design is reminiscent of classic, fuel-efficient vehicles like the Volkswagen Rabbit, Honda CRX, and Suzuki Sprint, some of which got over 50 miles per gallon decades before hybrids hit the market.

However, safety features have caused cars to gain in weight. Most cars today weight over 3,000 pounds, but the Fiesta’s small size of 2,600 allows it to achieve some of the best fuel economy available with a gasoline engine.

Uptick in sales causes luxury brands to add workers

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Posted in Auto Industry News, Mercedes-Benz

An unexpected reignition of interest in luxury cars has led BMW, Mercedes-Benz and Audi to add more shifts to its production facilities in an effort to meet the increased demand.

According to BusinessWeek, Mercedes-Benz is adding 1,800 temporary workers and adding Saturday production at its factories in Germany, which are responsible for the E-Class convertible, GLK SUV, and SLS AMG sports car.

Its countrymate BMW is following suit, adding 5,000 temporary workers to keep up with rising sales. BMW recently announced that their 5-Series was sold out worldwide, another sign that this sales surge was not predicted by the car companies.

"The recovery in luxury-car demand has been a bit faster than expected as confidence returns," Colin Couchman, an analyst at IHS Global Insight in London, told the news source "The growth is sustainable, because these companies have continued to invest in new products and expand into new markets."

Luxury cars can be quite pricy when bought new. As the economy rebounds, those who find themselves with a little extra money to spend might want to search for a late-model used BMW or Mercedes at a pre-owned dealer in order to avoid the inflation that occurs at new car dealers.

Used car sales rise

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Posted in General Auto News

National used car dealer CarMax has announced a large increase in sales for the year, possibly signalling a return in confidence to American car consumers and a healthy period of growth for used car dealers.

According to Forbes, sales for the nationwide chain increased 27.8% year on year, to $2.3 billion. In addition, cost-cutting by the company helped total earnings rise 253%, to $101 million dollars from just $27 million one year ago.

Although the economy hurt sales, the used auto dealers are recovering quicker than automakers, as consumers look for deals off somewhat expensive new cars. Many are looking for late-model used cars, according to the news source.

CarMax’s stock enjoyed a small bump after the news hit, as did the stocks of several other companies related to the used car market.

Drivers can often get a better deal on a used car by bidding at an auto auction or talking to their local dealer rather than shopping at nationwide chains.

New Ford Mustang shows off fuel economy

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Posted in Ford, General Auto News

The 2011 Ford Mustang is the first car with 300 horsepower to also get over 30 miles per gallon, rated at 31 miles per gallon highway. Not satisfied with that, Ford took the Mustang to Bristol Motor Speedway to see just how many miles they could get out of the pony car when put to the test.

Ford aimed to run the car for 1,000 laps, or 533 miles, on just one tank of gas. Using fuel-efficient techniques like maintaining a constant speed, not starting or stopping and not running fuel drainers like air conditioning, they were able to extend the car well past its rating of 31 miles per gallon.

Five drivers took one-hour shifts with vehicle. NASCAR driver David Ragan drove the car past the 1,000 lap mark at 7:26 PM. But the new Mustang wasn’t done yet. It didn’t run out of gas until 12:41 in the morning. In total, it conquered 1,475 laps, or 776 miles, without ever refueling. Drivers kept the speed around 45 miles per hour and averaged almost 50 miles per gallon.

It wasn’t the first time Ford attempted such a stunt. Last year, they got 1,445 miles, or 81.5 miles per gallon, using the same techniques on the roads of Washington DC. Neither car was modified from its production specifications.

Those interested in a fuel-efficient vehicles might want to take a look at used Fords to save money both at the dealer and the pump.

BMW 5-Series is sold out

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Posted in BMW, General Auto News

BMW 5-Series might be flying off showroom floors, but that doesn’t mean users who want to drive the German automaker’s flagship vehicles have to stick to their old ride. By searching for used BMW vehicles on the pre-owned market, drivers can put themselves in a BMW – while saving quite a bit of cash.

According to BusinessWeek, new car sales for the recently revamped 5-Series have been quick, and customers are currently waiting three to four weeks for delivery on the popular model. BMW expected the redesign to find an audience, but sales have outperformed expectations.

"The 5-Series is at the core of the BMW brand and we knew it was going to be a very strong vehicle for us," Ian Robertson, BMW’s sales chief, told the news source. "In the U.S., where it’s doing very well, it could come to between 15 percent and 17 percent of our business as we ramp up."

The previous “E60” model was somewhat controversial for its exterior design, which many did not view as traditional for BMW. BMW lead designer Chris Bangle was criticized for his “Bangle butt” rear ends, which critics argued was not aesthetically pleasing, but BMW became the world’s leading luxury manufacturer during his tenure.

With Bangle’s departure, the 5-Series underwent a heavy redesign. Since BMW is selling off the old E60 models to make room for the new ones, drivers who want a BMW might want to search the used car market for a lightly-worn BMW.

Big three take the pickup crown

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Posted in Uncategorized

When the American auto industry partially collapsed in the wake of the economic downturn, one of the factors was a loss of sales to foreign cars, which many critics said had to do with the decline of quality American vehicles.

However, one area where Detroit’s big three automakers can claim victory are pickup trucks. Kelley Blue Book recently ranked the top five full-size pickups for 2010, and Ford, Chrysler, and GM took the top three spots over their Japanese rivals Nissan and Toyota.

The ever-reliable F-150 took home the overall top spot, with the news source calling it “strong and refined in every aspect.” The F-150 has been the best selling American-made car for 29 years in a row.

The truck was closely followed by Chrysler’s Ram 1500 in second and the Chevy Silverado in third. The Toyota Tundra placed fourth, with the Nissan Titan in last.

As GM and Chrysler look to pay back their government bailouts, news like this bolsters American’s confidence in their models.

Many of these pickup trucks have received acclaim for years beyond 2010. Those interested in buying a pickup might want to search for used Ford F-150 models at the pre-owned dealers.

Toyota Camry is the top car “made in America”

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Posted in Auto Industry News, Toyota

A lot of stock is put in buying cars that are American made, especially to support the floundering economy. Traditionally, this involves buying from the big three U.S. automakers: GM, Ford and Chrysler.

However, the reality is that many parts are sourced from overseas. And while the U.S. automakers employ auto workers in this country by manufacturing cars on American soil, foreign companies have opened American plants in recent years as well.

So although the Toyota Camry is a Japanese car, it has topped Cars.com “American-Made Index” for the second year in a row. The survey not only takes into account where the car was manufactured (in the Camry’s case- Kentucky and Indiana), but the content of its parts that are American and its overall sales. The reason for the sales inclusion, the website explains, is because a completely-American made car may not sell well and thus employ less workers to make it.

The Ford F-150, once at the top of the charts, was nowhere to be seen this year, as Ford shrunk its domestic parts to just 55 percent in an effort to cut costs.

Despite misconceptions, buying used cars still helps support the economy. Used car dealers pay fees to the brands in order to sell their cars, so business for dealers is good for the entire auto industry.

How to get a pony car on the cheap

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Posted in How To

The affordable performance vehicle is a small market, but one that is dominated by a fierce rivalry between two classic vehicles: the Ford Mustang and Chevy Camaro. These cars are tuned for performance, and while slightly expensive, they can both be found at used Ford or Chevy dealers for a fraction of their dealer price.

Motorists have debated the merits of the cars since the Mustang’s debut in 1964. The car’s popularity caused competitors to introduce similar vehicles, known as “pony cars,” which were closely related to their larger brethren, the muscle car. These cars were defined by their sporty characteristics and emphasis on performance at a non-luxury brand price.

Direct competitors to the Mustang included the Plymouth Barracuda, Dodge Challenger and Chevy Camaro. While pony cars and muscle cars began to fall out of favor over the years, they have seen a recent revival. Ford’s redesigned Mustang has enjoyed critical success and big sales, and Chevy has reintroduced the Camaro in order to compete. The Dodge Challenger, while lagging behind in sales, has also made a comeback.

Those who are looking for a sporty car without paying Mercedes or BMW prices are frequently turning to new Mustangs and Camaros in the same way that drivers did forty years ago. In fact, the battle of the pony cars has led to a war of words between Ford and Chevy, who tout their model’s superiority over the other.

When Ford recently debuted the new 2011 Mustang to the automotive press, they were sure to have a Camaro on hand to point out all the ways the Mustang improved over its rival. And when the May sales figures came out showing Mustang’s triumph over the Camaro, Chevy responded with a press release detailing how many more Camaros they had sold over the previous months.

So drivers might be wondering – which one to buy? The cars are very close in price and both offer either a V6 or V8. MSN Auto recently did a point-by-point comparison between the two ponies and found that there wasn’t a striking difference in performance and handling. Instead, they found the difference came down to styling. MSN praised the Mustang’s slightly roomier interior and trunk space while favoring the Camaro’s sleek, eye-catching appearance.

Once drivers have made the decision, they should hit the used car market before paying the dealer’s inflated price. Buying a used Ford Mustang is an especially good idea right now, because Ford will be selling off the late-model Mustangs to make way for the redesigned 2011 model. These late-model cars can reach used car dealers with a slim amount of mileage but a huge amount of savings off the manufacturer’s price.

There will be plenty of Camaros, Mustangs and Challengers to be found at used car dealers, but those who want a true American pony car might want to scour the internet for some of the classic models of the sixties and seventies.

Nissan launches parts loyalty program

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Posted in General Auto News, Nissan

One consideration when buying a used car is maintenance. While the savings that can be found on used cars is substantial, the fact is that the mileage of these cars may eventually lead to a problem.

Those who buy a certified pre-owned car may be covered by the dealer’s original warranty, another great reason to buy a used car. However, these cars are not always possible to find, and drivers may find themselves at an independent repair shop.

But those who bought a used Nissan now have the option to use Original Equipment Manufacturer (OEM) parts when repairing their vehicles, thanks to a new parts reward program that Nissan and Infiniti are offering to independent mechanics.

Under the new program, mechanics will be able to sign up and be awarded points in a variety of ways. These points can then be exchanged for free parts. The new program is designed to encourage independent repair shops to use certified Nissan parts rather than aftermarket parts. In this way, the car runs as closely to the original specifications as possible.

Those who buy a used Nissan may be comforted to know that local repair shops will carry OEM parts through this new program.