GM auction halted by government

It appears that the auction General Motors had planned to rid itself of about 100 classic cars it had in storage and raise money for the failing automaker has been called off by the National Highway Transportation and Safety Administration (NHTSA).

GM, along with Barrett-Jackson Auction Company, was planning on auctioning off cars which it housed in its Heritage Collection.

Both companies have pointed out that many of the cars would not be able to be registered and would be sold with salvage titles as they would not be street legal vehicles, but apparently the federal government is concerned that people who purchase the cars will try to get them registered anyway.

Edmunds cites a story from Sports Car Market which says the NHTSA has halted the auction in Florida for fear of the rogue registration attempts.

A GM auction in January went through without reprisals from the federal government. At that auction more than 200 vehicles were sold including a 1969 Reggie Jackson Camaro which in a 2007 review Edmunds.com called “pure vehicular violence,” “a cranked-up 24-hour high,” and a “rolling onslaught of rawness.”

The Honda Fit makes a fun, and green, used car

With tax day right around the corner, many Americans could be seeing some tax refunds in their mailboxes soon which could go toward the purchase of a used vehicle. For people looking to be frugal and environmentally conscious – while still having a fun ride – there are some options.

According to Jim Motavalli, a contributor to the New York Times and blogger for Mother Nature Network, there are a number of used cars people should consider if they’re looking to save money and the environment.

Motavalli’s first choice is the 2007-2008 Honda Fit, which he admits he owns himself.

“[T]he Fit combines great performance from its 1.5-liter engine, very crisp handling, and incredibly versatile cargo capacity. The rear seats fold flat, and the car’s tall stance affords both great visibility and sofa-swallowing load potential,” writes Motavalli. “My dealer sent a letter recently begging me to trade in our car, because ’07 used examples are in short supply.”

The Kelley Blue Book website says a 2007 Honda Fit with 30,000 miles and in excellent condition will run around $14,585.

For that price a buyer is likely to get some pretty good gas mileage as the site says the car gets an estimated 31 mpg in the city and 38 mpg on the highway.

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A used car could last well over 100,000 miles

In the past many people were leery of buying a used car because of the mileage on the vehicle, but today’s cars are more reliable than ever before meaning it might be possible to drive them well over the 100,000 mile mark.

John Ibbotson, a supervisor at the Consumer Reports Auto Test Center, told MSN Money that over the years the life-span of cars has increased dramatically.

Ibbotson says that 100,000 was the limit of most cars through the 1970s, but the number began to shift upward through the decades. By the 1990s, cars were able to handle up to 150,000 miles before an engine went. Cars of today, Ibbotson says, might be able to handle up to 200,000.

What this means to a used car buyer is that a properly maintained late model used car with high mileage is probably not as scary as it would have been 20 years ago.

Maintenance is always an important factor in keeping a car running and Ibbotson says one of the most important things used car owners can do is read the car’s manual and stick to the scheduled maintenance in the book.

Jesse Toprak, an analyst at Edmunds told Dow Jones last month that used cars are better than they were in the past.

“[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,” he said.

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Motorists paying less to own a car

Lower costs at the pump have many used car owners thinking they’ve been saving money, but the AAA says motorists have seen an insignificant drop in ownership so far this year.

According to the automobile association, drivers currently spend 54 cents per mile – 0.1 cent less than last year.

The AAA’s Daily Fuel Gauge Report says the average price of regular unleaded gasoline is at $2.047 per gallon, far below the $3.331 motorists saw a year ago today and less than half the $4.114 consumers paid for a gallon last July.

Marshall L. Doney, vice president of AAA Automotive, says that while gas prices have dropped significantly from a year ago, drivers are facing increases in other automotive expenses.

“While motorists are experiencing relief at the pump, those savings have been countered by revised Environmental Protection Agency fuel economy estimates and increases in vehicle ownership costs such as insurance premiums, depreciation, finance charges and other fees and taxes,” he said.

In what may be surprising to some, the cost of ownership of an SUV has actually fallen 1.9 cents per mile, according to the report. Although they have seen a rise in depreciation and insurance costs, SUV owners pay 68.4 cents per mile – or $10,259 per year – to own their vehicle.

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Credit score is important to getting a used car loan

The credit of many Americans has taken a hit during the current recession. But for those attempting to get a loan for the purchase of a used car, there are some steps to take.

According to Edmunds.com, one of the first things a used car buyer should do is check his or her credit report to make sure they can qualify for the best rates.

The higher your FICO score the more likely you are to get a loan – and the more likely you are to get a good deal. Although Edmunds says the national average FICO score is somewhere around 675, car buyers can improve their score if it falls below that level.

Lucy Duni, vice president of consumer education for TrueCredit.com tells the website that although it’s nearly impossible to drastically improve a credit score in a short period of time, making payments on time on outstanding debts can improve a credit score in just a few months.

Although lenders have become stingy with funding over the last year, it may soon be easier for everyone. Last week GMAC announced it would open new lines of financing to car buyers and would begin financing the purchases of people with credit scores below 620.

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GM to auction classic cars to raise funds

It’s no secret that times are tough for General Motors, but now it seems that the country’s largest automaker will need to auction 100 or so classic used cars to make ends meet.

The Los Angeles Times reports that GM will be selling about 100 antique and show cars in an effort to raise money for the failing automaker and to reduce warehousing costs.

Included in the list of cars to be auctioned, according to the paper, is a 1920 Chevrolet Model T truck and a 1978 Corvette Indy 500 pace car – one of only four in existence.

This will be the second time this year that the car company will be auctioning off some of its collection. In January GM sold more than 230 of the cars in its collection, including a 1996 Buick Blackhawk Custom which sold for $522,500.

It is unlikely that the company will sell off any of the one-of-a-kind vehicles it owns and is attempting to rid itself of the many duplicates it currently houses.

“We realized that we had a lot of duplicates and cars that we could do without,” Greg Wallace, manager of the General Motors Heritage Center, told the paper. “We had three GTOs. We figured, ‘Do we really need three?’ We decided to keep the best one.”

According to its website, GM’s Heritage Center houses more than 200 vehicles on display along with many other documents and products from GM’s history in its 81,000 square foot space in Sterling Heights, Michigan.

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Queen Latifah’s Lexus looks damaged

Even celebrities sometimes have car problems which leave them without their means of transportation for a few days. According to one blogger that’s the case with Queen Latifah and her Mercedes.

According to the LexusNet Blog, Latifah’s Mercedes-Benz S-Class was seen with some serious damage to its passenger side recently.

The blog says a tow-truck driver reported that he pulled the car out of a ditch, and from the looks of pictures, the car appears to have suffered most of the damage to its passenger side.

LexusNet Blog says that the major problems with the car appear to be with the suspension, control arm oil cooler and right front wheel.

U.S. News & World Report ranked the 2009 Mercedes S-Class as its number two car in the “super luxury” category – just behind the BMW 7-Series.

According to the magazine, the car ranges from between $90,000 and $200,000 depending on options and can apparently do 0-60 in about four seconds. Like many in its category, the S-Class is not a gasoline sipper as the S550 has an EPA rating of 14 miles per gallon in the city and 21 on the highway, says the magazine.

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Consumers looking to used gas guzzlers

It appears that falling gas prices have changed people’s buying habits when it comes to used cars as a new report from AutoTrader.com finds that an increasing number of car buyers are looking at gas guzzlers.

According to the figures from AutoTrader.com, trucks and SUVs took 11 of the top 20 spots of the most viewed vehicles on its website with muscle cars taking three additional spots on the list.

The company says that while many people are wary of purchasing a new car in the current economic climate, used cars sales are seeing growth. Of that growth, large vehicles like SUVs are seeing the biggest increase.

Between March 2008 and last month, views of the Ford F-150 rose 12.77 percent while its larger cousin, the F-250 saw a 24.4 percent increase.

Chip Perry, president and CEO of AutoTrader.com, says that while the auto industry is being hammered for not producing fuel-efficient vehicles, it appears consumers are not very concerned with buying those cars at the moment.

“The government says that part of the reason for General Motors and Chrysler‘s current woes is their failures at building the smaller, more fuel-efficient vehicles, but at the same time, we are seeing consumers shopping and buying full-size pick-ups and SUVs – not compacts,” said Perry. “Americans have traditionally gone for larger and more powerful vehicles and without gas prices spiking to $4 a gallon or above like they did last summer, there’s little indication that this trend will change anytime soon.”

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Kim Kardashian handles a Ferrari F430

She’s got money, a reality television show and a NFL boyfriend, what else could Kim Kardashian need? Apparently a Ferrari F430 as she was recently seen driving around in the sports car.

The former Dancing With The Stars contestant was seen driving a gray Ferrari F430 around Los Angeles. The base model of the car has a retail price of $186,925 but it’s more likely that the convertible Kardashian has been seen in runs upwards of $230,000.

Clearly Kardashian is not in the Prius-camp of Hollywood celebrities who are looking to improve their gas mileage as the 2009 Ferrari F430 gets an estimated 13 miles per gallon.

But for most Ferrari owners, miles per gallon are the least of their concerns as they’re specifically looking for speed, something the F430 delivers in spades. According to Cars.com, the car can go 0-60 in just over 4 seconds while handling the quarter-mile in 12.34 seconds at a speed of 117 miles per hour.

For the price, some argue that the Ferrari is not the best performance vehicle available.

“If you’re in the market for an exotic street machine, consider the Lamborghini Gallardo – the F430’s primary competitor,” writes U.S. News & World Report. “It provides faster off-the-line performance, but still can’t handle corners as seamlessly as the F430. However, at this level of performance, that’s just [nitpicking].”

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GMAC to increase used car lending

It appears that it may soon be easier for used car buyers to get a loan as one of the biggest auto financers eases restrictions.

GMAC says it will be opening new lines of financing for used car buyers who have less than perfect credit. The company announced today that it would allow customers with credit scores below 620 to expand the number of borrowers the company lends to.

In addition, the lender says it will increase allowable advance rates for financing terms of 60 months or less.

Bill Muir, GMAC president, said the company hopes to increase the number of people it lends to and will boost funding over the next two months.

“GMAC now finances a broad spectrum of auto buyers, similar to traditional levels,” Muir said. “Through March, we financed over $2 billion in new and used retail auto contracts. Over the next 60 days, GMAC will make available at least $5 billion in order to increase the flow of credit to U.S. automotive customers.”

The company will also reduce rates for used car financing.

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