Monthly Archives: July 2010

Battle of the electric cars

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Posted in Auto Industry News, Chevrolet, Nissan

Both GM and Nissan have plans to introduce electric cars by the end of the year, but its unclear which approach car buyers will ultimately favor.

While the Chevy Volt and Nissan Leaf are usually mentioned in the same breath, both cars actually have radically different philosophies when it comes to driving.

The Volt is an electric hybrid, with both a 40-mile range electric motor and traditional gas engine. After the motor’s 40 mile limit has been reached, the gas engine kicks in, ensuring that drivers can continue as long as they have gas.

The Leaf, on the other hand, can actually claim to be a purely electric vehicle, and one of the first to be mass marketed. It’s also about $7,000 cheaper than the Volt and offers the attractive possibility of never touching a gas pump again. In addition, its battery pack squeezes out 100 miles of power when fully charged. However, once the charge is gone, that’s it – it needs to be plugged in before it can go again – and charging takes much longer than filling a tank of gas, essentially meaning drivers will be stranded after 100 miles with no charge.

So how should car buyers decide? The best way might be to wait until both cars hit the used car market. By then, consumers will know all the pros and cons and will be able to purchase a used Nissan Leaf or Chevy Volt at a reduced price.

Ford undertakes social media blitz to launch Explorer

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Posted in Auto Industry News, Ford

Ford‘s redesign of its popular Explorer SUV model bucks the usual trend in a number of ways. For starters, the automaker has redesigned the vehicle to provide an emphasis on fuel economy and practicality rather than off-roading and towing capabilities. But the other reason the new Explorer is turning heads is its unorthodox marketing campaign.

Rather than unveil the new car at an auto show, Ford has instead decided to harness the power of the internet in order to coordinate a massive campaign across social media. The automaker has hosted live chats and videos across its YouTube, Facebook and Twitter pages for a number of days to drum up excitement for the new vehicle, according to the Detroit Free Press.

It all culminated with live events in nine cities, where the new model was unveiled in a variety of ways. In Oshkosh, Wisconsin, it was flown in by helicopter. In Chicago, it burst through a faux-wood wall.

“It was a very unorthodox and unusual launch,” Rebecca Lindland, automotive analyst for IHS Automotive, told the news source. “We are going to see this more and more because of the impact of social media.”

The Explorer is a classic model, and was the best-selling midsize SUV in America between 1995-2004, according to the news source. That figure means that there will be plenty of used Ford Explorers in a variety of options available on the used car market, should car buyers have nostalgia for the previous designs.

http://www.freep.com/article/20100727/BUSINESS01/7270323/2011-Explorer-to-keep-Ford-on-track

Nissan to recall Cubes

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Posted in Nissan

Nissan is set to recall its Cube compact SUV, after tests by the National Highway Traffic Safety Administration (NHTSA) found that more than the allowable amount of fuel could spill in a rear-end collision.

According to the Associated Press, the recall affects 46,000 units of the model, including all of the vehicles sold thus far in North America. Though the car has been around in Japan for years, it just recently debuted in the U.S. last year.

Nissan says that the car did not spill any fuel during the company’s own testing, but has issued a voluntary recall. Drivers who take their car back to the dealer will have a special cap installed in order to prevent excessive fuel leakage.

The Cube, immediately recognizable due to its eye-catching design, has been a popular car for the company on its home turf of Japan. With a wrap-around back window and cubelike design, the car definitely exudes a modern Japanese look.

Those who want a Cube but are looking to avoid the potential fuel problems might want to look at used Nissan Versas, a similar car that is not known to suffer from the issues.

Ford posts big second quarter earnings

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Posted in Ford

It’s a good day for Ford, as the company has posted second-quarter profits of $2.6 billion, surpassing Wall Street analysts’ expectations and increasing 13 percent year on year. Ford’s redesigned lineup of cars for sale was reportedly a factor in the large earnings.

The company attributed the rise in profits to vehicle sales, especially of popular models like the Fusion, F-150, Taurus and Fiesta. The company generated revenue of $31.3 billion in global sales during the second quarter.

Ford CEO Alan Mulally, the architect behind the company’s turnaround, said that 2010 has been a “terrific year,” but said he believes 2011 will be even better. When the company’s first and second quarter results are put together, it shows it was the best first half for Ford in more than a decade.

Ford’s new fleet includes some models that are priced a touch higher than their previous incarnations. In addition, Ford customers opted for features, like the voice-activation system Sync, that drove up the cost of the cars. Edmunds reported that customers spent $30,309 on average on Ford vehicles in June.

Car buyers who may not want to pay that much may want to search for some late-model used Fords on the pre-owned market. With models like the Explorer SUV and Focus compact slated to get a redesign later this year, there may be an influx of the 2010 models.

Teenager swaps cell phone for Porsche

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Posted in General Auto News

Some folks will stop at nothing to get the used car they want. When that car is a Porsche Boxster, buyers may have to search several used car lots in order to get a great deal. But even the biggest discount probably doesn’t compare with the deal that 17-year-old Steven Ortiz got on his Porsche.

Ortiz used the “barter” feature on Craigslist to make swaps that eventually landed him the Porsche over a period of two years, according to the Whittier Daily News. Starting with an old cell phone that a friend gave him, he traded up for a slightly better phone, then parlayed that into an iPod Touch.

The iPod got him a dirt bike, leading to several slightly better dirt bikes, which he eventually used to get a MacBook Pro. He then traded the MacBook for a used Toyota 4Runner.

But since Ortiz was only 15 at the time, he had no use for the car. So he traded it for an expensive golf cart, which he used to eventually get himself a motorcycle. The motorcycle proved the key to swapping for a used Ford Bronco.

Some enthusiasts consider particular models of used Ford Broncos to be collectibles – and Ortiz’s 1975 Bronco was probably worth about $15,000. One user was willing to swap his 2000 Porsche convertible for it, and now Ortiz has the nicest car in school.

With a little determination and patience, folks can find a great deal on the used car they desire as well.

AutoNation posts growth on back of used car sales

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Posted in Auto Industry News

AutoNation, one of the largest chains of auto dealerships in the U.S., reported a strong uptick in sales during the second quarter, signalling that consumer confidence may be returning to the auto industry.

The growth came on the back of a 28 percent surge in used car revenue, along with a 20 percent increase in new car sales. Combined, the result was a 25 percent increase in revenue derived from sales and a 20 percent overall revenue growth compared with the previous year. According to analysts polled by Reuters, the results were beyond expectations.

“We delivered strong double-digit growth in the second quarter, which was driven by both new and used vehicle unit sales and revenue. We continue to expect full year industry new vehicle unit sales to be in the range of 11.5 million new units,” said CEO Mark Jackson. “We continue to see a solid automotive recovery going forward.”

AutoNation purchases dealerships and runs them under their own brand, which gives them the largest amount of cars for sale in the country, according to the company. For example, AutoNation recently announced the acquisition of the Toyota Mall in Atlanta, the city’s largest new and used Toyota dealer.

The company said that domestic brands strongly contributed to the growth, especially Ford and Chevrolet.

GM purchases financing arm

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Posted in Auto Loans & Financing News

General Motors has spent $3.5 billion to purchase AmeriCredit, a subprime lender that specializes in providing financing for late-model used cars. The move restores a financial services arm to the automaker, who split from its in-house lender, GMAC, in 2006.

According to CNN, the deal is expected to greatly improve GM’s ability to move its wide variety of cars for sale. An in-house lender allows GM greater financial flexibility in offering financing and auto loans on its vehicles. It also gives those shopping for used cars another option in finding the money to do so.

GMAC, now known as Ally Financial, was GM’s in-house lender for a number of years, but GM sold its stake in the company in 2006. Both companies were later bailed out by the federal government. GMAC, which also offers mortgages, is trying to improve its lending business by only offering loans to consumers with near-perfect credit. While GMAC currently provides loans for GM customers, GM wanted a lender who would be able to offer loans to buyers with poor credit as well.

Some analysts have speculated that GM’s lack of a financial arm, which can be quite profitable, is one of the reasons it is lagging behind rivals like Toyota and Ford in recovering from the downturn.

Finding value on the used car market

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Posted in How To

When it comes to cars, “value” most often brings up negative connotations. But drivers who haven’t bought a new car in awhile should know that as technology becomes more affordable, the value cars of today are, in many ways, as powerful as some of the mid-range cars of yesteryear.

In this tough economy, it pays to save whenever possible, and that’s doubly true for large purchases such as cars. Many Americans opt to save money by going to a used auto dealer rather than a new one. Another advantage of a used car dealer is that they will frequently have a large selection of cars for sale. And when users head to an auto auction, those savings and selection become even greater.

MSN Auto recently listed its picks for the best value cars within each class. Using this as a guide in conjunction with the cars offered by their local used car dealer, consumers can get a great car at the right price.

The figures quoted here are the sticker prices that will be on display at most new dealers. It goes without saying that used car prices will be even cheaper.

The subcompact class has become increasingly popular because the vehicles always get great gas mileage. Although much has been made of the redesigned Ford Fiesta, the news source’s choice is the Honda Fit. In addition to its maneuverability, the Fit also has a ton of cargo space; 57.3 cubic feet, to be exact, which is the same as the much larger Nissan Rogue.

But some families will simply find subcompacts to be impractical for their needs. For these car buyers, there’s the minivan market. Those searching for a used minivan may want to look at the Honda Odyssey. This van has seating for eight and tons of configurations to fit everything a family needs, plus various powertrain options that can make the model quite powerful for a van. The best part about the Odyssey, however, is that Honda will soon debut its redesigned model, meaning many of these late-model vehicles will find their way onto the used car market.

Some car buyers may be looking to not only save on their initial purchase, but at the pump as well. These shoppers may want to take a look at one of the various hybrid models. But before drivers are drawn to the used Toyota Priuses, they should consider the Ford Fusion Hybrid, according to the news source. For about the same price, the Fusion boasts a much more powerful engine while still getting 41 mpg in the city.

Finally, some car buyers use the used car market in order to get deals on luxury cars that would normally cost an arm and a leg, like used BMWs. These potential car buyers may want to look at the BMW 3-Series, which has won acclaim as one of the best sports sedans on the market. In addition, there are a host of different variations to choose from, including sedan, coupe, wagon and convertible.

By knowing some of the top models available, car buyers can find value on the used market and drive home in a vehicle that’s right for them.

U.S. may have been too hasty in closing down car dealers

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Posted in Auto Industry News, Chevrolet, Chrysler - DO NOT USE, General Auto News

A new report by the Troubled Asset Relief Program has found that the United States Treasury Department should have carefully considered its decision to order GM and Chrysler to close hundreds of dealerships while the two companies were in the bailout process.

GM and Chrysler both went bankrupt during the financial crisis, forcing the government to step in and take over the companies’ balance sheets. The Treasury Department rejected GM and Chrysler’s plan to close dealerships over a five-year period, calling the measures “too slow,” and instead asked the two automakers to close hundreds of dealerships immediately in an effort to cut costs. Now, many are questioning the decision, as GM and Chrysler have rebounded to the point that they are reinstating many of the dealers.

Special inspector general Neil Barofsky wrote in his recent report that “such dramatic and accelerated dealership closings may not have been necessary and underscores the need for the Treasury to tread very carefully when considering such decisions in the future”

With the closing of so many dealerships, many lightly used cars have found their way onto the pre-owned market. Drivers in areas with a closed GM or Chrysler dealer may want to head to a used car lot in order to find deals and savings.

The most popular used cars

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Posted in How To

Buying a used car can be tricky. While there is tons of information available on the internet and other resources about new cars, used cars bring with them their own special considerations.

For starters, every used car is different. Although potential buyers can look up information regarding how particular models tend to perform, two cars from the same model year with the same mileage may actually drive completely differently, depending on the vehicle’s history and maintenance.

Another consideration is reliability. Is the car considered to be a generally reliable model? Is it backed by a certified warranty? And if it breaks down, will parts be easy to obtain in order to fix it?

Finally, the most important factor for many consumers is price and resale value. These figures can fluctuate wildly depending on the make, model and overall market. A used BMW, for example, will most likely have better resale value than a used Toyota, simply because of the prestige that comes along with the brand name.

With that in mind, the most popular used vehicles differ quite a bit from the most popular new vehicles. According to data gathered during the second half of 2009 by Cars.com, there are significant differences between the two lists. The news source compiles the lists based on user inquiries and searches while shopping for a car on their site. And the results could influence car buyers in the market for a used vehicle.

Toyota and Honda dominate the new cars, for instance, with no other brand cracking the top 10. Toyota has six of the top 10 most popular new car models, including the first-place Camry. Other popular Toyota models include the Prius, Corolla, Rav4, Tacoma and Siena. Honda, meanwhile, has four of the top 10 spots, with the Accord, Civic, CR-V and Odyssey models.

Yet the most popular used cars are considerably more varied. Honda and Toyota’s most popular models, the Accord and Civic and Camry and Corolla respectively, all make the list, but in different positions. The Accord is the most popular used car model, followed closely by the Civic – a big shift from their third and fourth positions on the new car list.

The Ford Mustang is the most popular domestic used car model, followed by its fleetmate, the F-150 pickup truck. The fact that these cars place so highly on the used car list but not the new car one suggests that car buyers look for performance and utility when buying a used car. Other entries on the list, like the Jeep Grand Cherokee and Wrangler, also point to this conclusion.

Again, every used car will drive differently, and buyers should test out several models before deciding on a car that’s right for them. But the most popular used car list is a good indicator of the types of models that many buyers are satisfied with.