Monthly Archives: February 2011

Ford ups production but slashes dealers

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Posted in Auto Industry News, Lincoln

Ford has announced that it will be upping its production totals for the first three months of 2011 as it seeks to meet the rising demand for automobiles during the first few months of the year. However, the company is also looking to decrease its dealer network in major cities.

At the recent National Automobile Dealers Association (NADA) convention in San Francisco, Ford announced that it would be increasing production by 13 percent over the next three months, bringing the total number of shippable units up to 555,000. There was more good news for dealers, as Ford announced that more than 80 percent of its dealers were profitable again, a drastic turnaround from the depths of the recession.

However, it wasn't all good news. In order to revive its flailing Lincoln luxury brand, the automaker said that it would be looking to trim nearly 100 Lincoln dealerships in major metropolitan areas, bringing the total number down from 434 to 325. Ford claims that competing dealers in the same area are cannibalizing sales and reducing profits for each other.

"If we don't get the throughput in the major metro markets right-sized, then the transformation of Lincoln is going…to need a different plan," Ford marketing chief Jim Farley told Reuters. "This transformation is going to hinge on several things working including the (dealer) network."

Auto sales rise 17 percent in January

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Posted in Auto Industry News

Major automakers have announced their January results, and the signs were good overall for the industry, as total auto sales rose 17 percent on average.

Early estimates put the total for 2011 at 12.6 million vehicles. The bump in sales meant that January 2011 is currently tied with December 2010 as the best-selling vehicle month since the federal government's "Cash for Clunkers" program ramped up sales temporarily.

Sales of larger vehicles like pickup trucks and SUVs led the charge, with that particular segment rising 28 percent overall.

"We’re off to a good start for 2011," auto analyst Jesse Toprak told the New York Times. "Gas prices rose quite a bit in the last few months, but that hasn’t deterred people from buying larger vehicles."

Among the domestics, Chrysler and GM both rose 23 percent, while Ford saw a 13 percent bump. Hyundai continued its strong showing with a 22 percent increase, while Toyota rose 17 percent, Honda was up 13 percent and Nissan 15 percent. All automakers except for Mazda posted higher sales than January 2010.

Drivers who are thinking about purchasing a new vehicle may want to shop the used car market first. New Jersey State Auto Auction offers drivers a wide selection with prices well below Kelley Blue Book values. 

Great time for auto financing

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Posted in Auto Loans & Financing News

It's a great time for buyers who are looking to secure a loan for their new or used vehicle, as interest and default rates are down and lenders are becoming profitable again, which increases the availability of credit to all buyers.

Auto sales are also booming, with December of 2010 posting the fastest rate for vehicle sales since the government-sponsored "Cash for Clunkers" program ended. That means dealers are eager to continue selling vehicles and keep the momentum moving.

An example of the positive economic effects in action are the dwindling interest rates on vehicles, according to USA Today. Bankrate.com recently reported an average interest rate 6.21 percent, the lowest rate in nearly two decades of data. Some dealers were even going as low as 2.99 percent.

Edmunds, which also factors in special dealer offers into the average, concurred with the low rates, saying that the 4.16 percent recorded in December was the lowest since the company began tracking rates in 2002.

One of the reasons for this is that banks and lenders are competing for every single customer, causing them to offer lower rates.

"What's really driving our market right now are these low interest rates," Pete Greiner of Greiner Ford Lincoln in Casper, Wyoming, told USA Today. "The national lenders became very competitive."

Ally Financial, for example, which offers both mortgages and car loans, recently reported its fourth straight quarterly profit. The beleaguered lender was forced to accept a government bailout in the midst of the recession, but now appears to be bouncing back. As companies return from the brink, they're able to offer loans to a wider variety of customers, including those with bad or no credit.

Another reason that lenders are confident is their low default rates. A lender collects no money on a loan that defaults, which is why bad credit buyers are riskier than others and must pay a higher interest rate. So with default rates down again this month – currently at a meager 1.68 percent – banks and lenders can be a bit more adventurous with their loans.

New Jersey State Auto Auction partners with a variety of banks and lenders in order to secure loans for customers with all types of credit scores. Drivers in the market for a car loan should browse the wide selection of vehicles and lending options available to them.

Sonata named most valuable car

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Posted in General Auto News, Hyundai

Strategic Vision has released the results of its fourteenth-annual Total Value Index, and the 2011 Hyundai Sonata has not only earned the title of the year's most valuable vehicle, but also the best of all time.

The consulting company uses an exhaustive process of measuring 442 separate data points on a vehicle in order to get an overall picture of a car's strengths and weaknesses. That information is then weighted against the vehicle's price to determine which cars offer the most bang for the buck.

The 2011 Sonata not only blew away the competition, but set a new record for the most points ever earned in the study with 860 points, causing the group to create a new award for the vehicle.

"When the data came back on the 2011 Hyundai Sonata, it was so impressive it prompted us to re-examine it several times to be certain." said Strategic Vision President Alexander Edwards. "The findings were solid with particular superiority among owners ranking value for money, technical innovation, standard equipment, fuel economy and a great warranty all wrapped in vehicle with eye catching styling."

The Hyundai Genesis came in a close second with 852 points, while the Audi A8 was third with 821 points.

Chevy announces Super Bowl plans

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Posted in Chevrolet, General Auto News

After General Motor's government bailout, the company toned down the big spending, which included a two-year hiatus from the biggest advertising day of the year: the Super Bowl. Previously one of the game's largest advertisers, the company recently announced that it will be back in a big way this year, with six all-new commercials showcasing a range of products.

"There’s no other place you can get 95 million people all at once," Chevrolet advertising director Kevin Mayer told the Detroit Free Press. "We’re really trying to reinstill that pride of putting a Chevy in your driveway, make you feel like there’s a brand that’s got some things going on."

Two of the major Chevy plans involve integration with popular culture. Chevy has again partnered with the Transformers film franchise, and one of the new ads starts off as a typical car commercial before a Chevy Camaro transforms into one of the giant robots.

While not an ad per se, GM has also announced that the episode of "Glee" following the big game will incorporate several of the company's products.

Drivers who watch the Super Bowl and feel suddenly compelled to buy a Chevy might want to head down to New Jersey State Auto Auction, which offers drivers a wide selection of GM and non-GM models at affordable prices.