Monthly Archives: July 2009

Cash for Clunkers may not accept some used cars in New Jersey

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Posted in Auto Loans & Financing News, Toyota

Some used cars in New Jersey that have the mileage ratings required for use in the CARS program, commonly known as Cash for Clunkers, may not actually meet the guidelines for the program and buyers may choose to hold onto their vehicles instead.

Consumers who were considering leveraging their used cars for the discount found that the Environmental Protection Agency had “refreshed” the mileage numbers of several automobiles, making them ineligible for the program, reported Edmunds.com.

“It’s unfortunate that consumers who had been researching and planning to trade-in their vehicle with the new Cash for Clunkers program are now left in the dust,” said Karl Brauer, Edmunds.com editor-in-chief.

The site says that more than 30,000 used cars in New Jersey and other states may be affected by the changes, with examples including a 1993 Toyota Camry wagon that was sold with a combined mileage rating of 18 miles per gallon, qualifying it for the program. The EPA has now revised its rating to 19 mpg.

Other examples provided by the car website include the 1992 Saab 900s with automatic transmission and the 1988 Toyota 4Runner.

CARS law doesn’t beat price of used cars in New York

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Posted in Auto Industry News

Consumers who are perusing listings of used cars in New York may look at the CARS program and wonder if it makes financial sense for them, or helps the environment. Several opponents are hoping they’ll stay away from junking their used cars.

The average price of a new car is $27,800, while used cars run roughly $14,000 dollars, according to Edmunds.com data cited by ABC News.

The program will issue a maximum of $4,500 for trade-ins of used vehicles, bringing the average cost down to $23,000, and the question is whether or not consumers will want to save the $4,500, or the $9,000, according to the news provider.

Opponents of the law aren’t just looking at prices, though, as environmentalists worry that the program won’t have the desired effect of reducing greenhouse gases.

“When introduced, the program had an environmental rationale,” wrote Dan Becker, Safe Climate Campaign director, in a Star-Ledger editorial. “It is now so diluted that in some cases, buying a car or light truck offering an improvement of a mere one mile per gallon over your junked wheels will get you a $3,500 voucher.”

Used Volkswagens in New Jersey may have safer transmissions

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Posted in Volkswagen - DO NOT USE

A used Volkswagen Jetta in New Jersey may be safer than one of the newer models with a direct shift gearbox, a concern the National Highway Transporation Safety Administration is currently investigating.

They have received more than two dozen reports that the transmission system is causing problems for drivers of new Jettas, Golf GTIs and other vehicles. In some cases the vehicle had to be turned off and restarted, and several owners reported that the vehicle had to be towed, according to the NHTSA office of defect investigations.

The ODI said that they will be monitoring the frequency of such reports and the safety consequences as part of the ongoing investigation.

On the other hand, a used Volkswagen Jetta in New Jersey generally does not have the transmission kinks of the new cars.

A 2005 Jetta is one option, as its 60 percent more rigid than earlier models which improves safety, and is larger than previous versions as well, according to a Cars.com review.

“Steering feel is excellent, and the Jetta stays neatly on course on straightaways,” added reviewer Jim Flammang. “With wholly predictable handling, it’s simply masterful through curves.”

Buyers of used cars in New Jersey see Ford post $2.3B profit

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Posted in Auto Industry News, Ford

Financial statements have recently been released by Ford showing more than $2 billion in profit in the last three months, but consumers considering used cars in New York may notice that General Motors is still struggling heavily.

It’s a tale of two sides of the government’s efforts to save the Big Three, and right now Ford is looking better after posting a profit in the second quarter of this year, using restructuring tactics to offset the loss of $1 billion in cashflow, according to the Detroit Free Press.

Alan Mulally, Ford president and CEO, told the news provider that he still plans to be cautious in the recovery, and doesn’t expect to post real profits and improve cashflow for the next 18 months, reported the news provider.

The “green shoots” aren’t so strong at General Motors, which saw sales drop by 15 percent worldwide in the same period compared to second quarter figures in 2008, limited only by success in the Chinese market that has seen remarkable growth, noted the Business Courier.

Online tool may help drivers find lower rates on used cars in New York

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Posted in General Auto News

People who have seen car insurance commercials on TV know that hundreds of dollars can be saved each year when buying coverage for used cars in New York. The question remains, “Where is the best deal?”

BestInsuranceMatch is a website that may provide one solution for consumers who want to buy a new car, but aren’t yet sure where they will purchase insurance.

Users search for plans based on what factors are important to them, including the number of local agents, payment options and availability of claims and customer service representatives.

If they fill out a questionnaire about driving habits and vehicles owned, they can get results from up to 30 national insurance companies, including a quote for coverage and options to be contacted.

“The site provides consumers with a quick and easy way to find insurance providers that are most likely their best fit, as well as complete control over how and by whom they’re contacted,” said Brad Cooper, senior vice president of InsWeb, the website’s parent company.

Company officials add that users are not bound to buy the insurance through the website, and may do so through the companies’ agents or their corporate websites.

Buyers of used Chevrolet Silverados in New Jersey don’t let gas prices influence choices

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Posted in Chevrolet

While a used car in New Jersey can help motorists save at the pump, a new report finds that rising fuel prices last year did not change the number of purchases of more fuel-efficient vehicles for very long.

Experian Automotive found that from May to September, small and economy cars showed a brief uptick in sales as consumers worried about the 70-cent increase in fuel prices nationwide. But even as gas prices continued to rise, the segment quickly returned to its normal share of the market, rougly 10 percent.

“Anyone who predicts a long-term shift in consumer car-buying sentiment based solely on last summer’s knee-jerk reaction to gas price increases could be in for a surprise,” said Jeff Anderson, Experian Automotive head of consulting and analytics.

In fact, some buyers looking at used Chevy Silverados in New Jersey will choose their car even as gas prices skyrocket, as sales remained steady during that period, Experian’s data showed.

The 2005 model handles well, even in urban environments, and the powerful engines may be one reason for sustained demand, note Cars.com reviewers.

Jamie McMurray wants drivers of used cars in New York to stay safe

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Posted in Celebrity Auto News, Ford

Nascar drive Jamie McMurray understands that driving in risky situations can increase the risk for injury and damage to one’s vehicle since he drives more than 150 mph at work. He is hopeful that owners of used cars in New York will take advantage of a program to limit drunk driving and keep motorists safe.

That’s why he will be strapping into a Ford Fusion that looks a lot like his raceday vehicle and provide free rides home in Indianapolis to fans and others who may be too intoxicated to drive themselves during race weekend.

“Racing in Indy is always special, but participating in the Safe Rides Home program the last few years really allows me to interact one-on-one with some of the most passionate race fans in the world,” said McMuray. “Once [passengers] realize I’m a cautious driver, we usually start chatting and before we know it, have arrived at their home and they are thanking me … for the safe ride.”

Similar efforts are available nationwide, and allow drivers who may feel they are unable to operate a vehicle to get a ride home without the hassle of finding a taxi service during busy Friday and Saturday nights.

German automakers vie for control as consumers look for used cars in New York

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Posted in Auto Industry News, Volkswagen - DO NOT USE

Two intertwined German automakers are locked into a negotiations struggle over who will own whom, and buyers looking at used cars in New York may soon see Volkswagen take control of Porsche.

The principal problem in trying to understand what’s been happening is that several people are top shareholders in both organizations, and that means that a potential deal could involve anything from a sale of Porsche to Volkswagen, or to Qatar-based investors, reported Reuters.

There are two large numbers that have to be factored in: the taxes from the deal would be be well over $4 billion to merge the two automakers, and the debt of Porsche’s parent company which is more than $10 billion, according to the news provider.

A combination of the two firms would bring makes like Porsche, Audi and Volkswagen all under the same roof, but sources told Bloomberg that a deal isn’t likely until July 29, at the earliest.

“This drama doesn’t seem to end,” said Stefan Bratzel, head of the Center of Automotive Research Institute in Bergisch Gladbach, told the wire service. “Neither Porsche nor Volkswagen can afford any further distraction.”

More people buying used cars in New Jersey

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Posted in Auto Industry News

Edmunds says that there are roughly 100,000 shoppers in the planning and research stages of purchasing a used car in New Jersey and other states, according to recent research.

As dealers continue to offer increasing incentives to spur sales, prospective buyers may find that they have waited too long.

“There has been a recent surge of purchase intent that has not translated into sales,” Dr David Tompkins, Edmunds.com senior analyst. “Given that these 100,000 shoppers represent about 10 percent of monthly sales, automakers and dealers should find a way to capitalize on the opportunity and entice these folks to actually buy.”

An L.A. Times report also sheds light on reasons to consider making a purchase of a used car in New Jersey sooner rather than later, explaining that as people hold onto their cars longer, there is a smaller supply of used cars available from trade-ins and former rentals.

Edmunds.com analysts say that the average trade-in car is driven an extra 8,000 miles before buyers consider bringing it in, the equivalent of 8 months more for the average driver.

How to assess the value of used cars in New York

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Posted in General Auto News

When trying to estimate the value of a used car in New York, the make and model may give a benchmark for buyers, but it is often how the car has been driven that can drive prices into or out of a potential owner’s price range.

A survey of prospective buyers and sellers found that many looked at mileage as the chief factor in determining a car’s selling price, according to research conducted by Ipsos Public Affairs.

That may not tell the whole story, according to car researchers at Carmax.com. They say that an appraisal of the car may offer buyers of used cars in New York a better understanding of how the car was driven. For example, a delivery vehicle may have been operated much differently from a car used to attend church on Sundays.

However, other conditions that affect the price a buyer may be willing to pay noted by the survey respondents receive equal weight from the experts, including verifiable reports of regular maintenance and limited structural damage.