Families may need to downsize their vehicles

In these tough economic times many American families are being forced to downsize, but it’s still necessary to have a vehicle that can make it back and forth to the store and still be comfortable for the whole family.

According to MSN autos, there are a number of vehicles families should consider if they’re looking to trade in the gas-guzzling SUV for a used car that’s more economical.

Jeff Bartlett, deputy online autos editor at Consumer Reports says there are a number of reasons families should consider taking a step down from the monstrous vehicles they thought they needed in more prosperous times.

“You save upfront, you save at the pump, you save in your annual maintenance and you’ll recoup a greater percentage on trade-in,” Bartlett told MSN autos.

One of the vehicles that makes the MSN auto list is the Toyota Rav4, which has been in production for over a decade. The site says the vehicle is tiny in comparison to other SUVs so it might be well suited for families with small children.

It appears that a growing number of people who would have normally purchased a new car are turning to used cars. A recent study from Edmunds finds that a half million people who would have normally purchased a new vehicle bought a used car in the three months leading up to February.

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U.S. cars’ median age increases

A new report finds that the median age of cars is increasing, showing that the reliability of cars has increased over the last decade which may make a used car a smart purchase.

The study from R.L. Polk & Co. finds that the median age of the American car is 9.4 years, breaking the previous record of 9.2 years.

Trucks also saw their median age increase, although they still were slightly behind the age of cars. The age of light trucks increased from 7.1 years in 2005 to 7.5 years in 2008. Overall trucks had a median age of 7.6 years.

As automakers have increased the reliability of new cars over the last few years, it has trickled down to the used car market. Buying a used car today means that it’s likely more reliable than a used car was a decade ago.

“[Consumers are] realizing that the used cars of today are not the used cars of a few years ago, and that realization is not positive for new car sales,” Jesse Toprak, an analyst at Edmunds told Dow Jones recently.

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Auto loans should be easier to obtain shortly

A new plan from the federal government may soon make it easier for Americans to get access to loans which can help in the purchase of a used car.

The program from the Federal Reserve and the Treasury Department, called the Term Asset-Backed Securities Loan Facility (TALF), would inject $200 billion into the financial system which could lead to an additional $1 trillion in loans, including auto loans.

Industry experts hope that the influx of government funding will unclog the credit market and allow Americans to more easily obtain car loans.

Federal Reserve chairman Ben Bernanke told Congress this week that TALF, which will begin later this month, will have a positive effect for consumers in the very near future.

“We should see immediate benefits to students, to credit cards, to small businesses, to consumer loans,” Bernanke told lawmakers.

Although it has become more difficult for many people to obtain loans due to the current credit crunch, lenders say there are still loans available for people looking to buy a used car.

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Wired lists cars that should head to the scrapheap

The auto industry is reeling from the economic downturn with GM announcing the end of the Saturn line along with most of Pontiac. But according to Wired magazine, there are a number of other cars that should die as well.

Although Chrysler has said it will soon be rid of the PT Crusier, Wired says it shouldn’t stop there and suggests offing the Dodge Nitro which it says looks rugged and tough, but has a “puny” engine under the hood.

Another vehicle ready for the scrapheap is the Chevy Avalanche whose demise – it says – should be obvious to Chevrolet based on horrible sales figures.

“Even three years before $4 a gallon gas, sales of the Avalanche began falling faster than, well, an avalanche,” writes Wired. “From a 2002 high of nearly 90,000 trucks sold, a mere 35,003 Avalanches made it off the lot in 2008.”

However there are some good used cars drivers should look to when making a purchase. According to Consumer Reports, Honda and Toyota dominated their list of the most reliable used cars with the Honda Civic and Toyota Echo leading the list of best small cars.

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Insurance myths debunked

Many people believe that they’re better off buying a car of any color besides red since it’s the most to insure, or avoid buying a sports car since they get the most tickets from police. But according to Insure.com, those are just two of the car insurance myths that many Americans believe.

The company says that the color of the car plays no part in how much it is to insure. Instead, insurers are more interested in the engine size, model and age of the car.

Many people also believe that thieves are more attracted to newer cars – Insure.com says that’s false. The company says the statistics show it is actually the other way around with more thieves targeting cars from the ’80s and ’90s like the 1989 Toyota Camry and 1995 Honda Civic.

It’s also untrue that an insurance company will automatically pay for a car that is stolen or vandalized. Insure.com says without comprehensive insurance a car owner is not covered.

And as for the most tickets, according to Quality Planning Corp, the vehicles that get the most violations from police are the Hummer H2 and H3. In what some may find a surprising twist, the Jaguar XJ gets the least amount of tickets.

Driving over 100 can cost you

You’ve purchased a great sporty used car and the first thing you want to do is take it out on the open road and see what’s really under the hood, but the next thing you know there are flashing lights behind you and a police officer says you were clocked going in excess of 100 miles per hour.

According to AOL autos, where you were driving could play a big factor in what’s in store for you.

For instance, in Virginia a driver can face up to $2,500 in fines and mandatory jail time if caught driving over 100, according to the website. But in New York a first time offender is likely to get a fine of $500 and two points on their license, although jail time is also a possibility.

However, some drivers can get a reckless driving infraction tacked on which could add to your problems. AOL autos says a third offense for reckless driving in Florida is a felony while in Virginia speeds over 85 mph are considered reckless.

A study earlier this year from Quality Planning Corp found that, contrary to popular belief, sports cars are not the most ticketed by police. That distinction goes to the Hummer H2 and H3.

Sports cars: Energetic and economical

In this down economy a lot of people need the excitement of a drive in a sports car to get them through the day. But the purchase of a speedy ride doesn’t have to break the bank.

According to MSN autos, there are a number of sports car that can be had for under $35,000 and in this market, and buying a used one can be even more frugal.

Although a number of the cars on the MSN autos list are foreign, the website does focus on a couple of the next generation of American muscle cars, including the iconic Ford Mustang.

Considering the history and power of the Mustang it can still be had for well under $35,000, even when searching for a used GT with a v8 engine. Unlike a lot of other sports cars on the market, the Mustang is also a car that can be used day-in and day-out as it can actually fit passengers in the back and room for some groceries in the trunk.

But for the more pure sports car, the site suggests a Pontiac Solstice or its twin, the Saturn Sky, a rare American two-seater.

This might be the best time to purchase a used sports car as Dow Jones recently reported that the prices of used cars fell 8 percent last year.

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Which automaker makes the best car?

When looking to purchase a used car a buyer usually has some idea of what he or she is looking for. But according to Consumer Reports, some car brands are just better than others.

On the low end of the scale, according to the news provider, are Chrysler and Suzuki, which tied for last place in the magazine’s ranking which tested comfort, fuel economy, performance and reliability.

Chrysler saw its scores drop in this year’s survey, and the magazine had few good things to say about the automaker.

“Most models from [Chrysler] have noisy, inefficient, unrefined powertrains; subpar interiors; and poor visibility,” writes Consumer Reports. “Chrysler is the only automaker with no models on our Recommended list.”

At the top of the list continues to be Japanese automakers, with Honda, Toyota and Mazda all in the top four of the magazine’s list.

It says that Honda, and its luxury brand Acura, continue to make some of the best cars on the market and says the reliability of the cars are better than any other automaker.

The findings of Consumer Reports seems to turn into popularity for Honda as a recent report from Cars.com finds that the Honda Civic and Honda Accord are two of the most popular cars on its site.

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More Americans looking toward used cars

It appears that the downturn in the economy has changed many Americans outlook on the automobile with a growing number investing in used cars over new.

Dow Jones reports that the increase in the sale of used cars may be having a negative effect on automakers as more and more Americans find it unnecessary to look at new cars for reliability and safety.

“People no longer feel they have to have the nicest, newest car on the road,” Jesse Toprak, an analyst at Edmunds told the news provider. “They’re realizing that the used cars of today are not the used cars of a few years ago, and that realization is not positive for new car sales.”

The number of people moving to used cars is only expected to increase. Tom Webb, chief economist with Manheim Consulting told Dow Jones that the leases of 2.6 million cars and trucks are expected to come due this year, meaning an influx of late model used cars onto the market.

Used cars have also seen their prices drop over the last year. According to the National Automobile Dealers Association, the prices of used cars across the board dropped in 2008.

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Singer’s $1.4 million Ferrari Enzo damaged

Jay Kay, lead singer of the band Jamiroquai, must have gone into Virtual Insanity this weekend when his $1.4 million Ferrari Enzo was damaged while staying at a seaside resort in the UK.

Police say they have arrested a man who they believe caused thousands of dollars of damage to the sports car including a broken driver’s side window and shattered windshield.

Kay told the Daily Mail that he is devastated by the destruction of the car.

“It is a special motor car. It is a rare, special thing and I love it dearly,” he said. “It is worth a million [pounds] and the damage will cost a few quid to put right.”

According to Motor Trend which test drove a 2003 Ferrari Enzo, the car has a top speed of over 200 miles per hour and can hit zero to 60 in 3.14 seconds.

The car is perhaps best known for a 2007 accident in which actor Eddie Griffin crashed a Ferrari Enzo while promoting the film Redline. Some have speculated that the crash, which was filmed, was part of a PR campaign for the movie.

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