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Bret Michaels, Bill Goldberg, auction used cars for charity

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Posted in Celebrity Auto News, Chevrolet

Rocker Bret Michaels and former pro wrestler Bill Goldberg have gone head-to-head before on shows like "Celebrity Apprentice." But at a recent Arizona car auction, the two celebrities had pride on the line as they each auctioned off two classic used cars.

The money from the auction went to the American Diabetes Association and the Juvenile Diabetes Research Foundation, so each wanted to see their cars go as high as possible.

Goldberg's customized 1968 Dodge Dart, complete with a 713 horsepower Hemi V8 engine, ended up selling for a whopping $92,500. Yet Michaels was able to best Goldberg, as his 1969 Chevrolet Camaro SS, couple with a signed guitar and lifetime backstage pass wound up fetching $200,000.

Bruce Steinberg, the owner of the collision center that rebuilt the car, told the Mason City Globe Gazette that he didn't believe the car would sell for that much.

"Surprised isn't even the word, more like shocked and overwhelmed," he told the news source. "We had an idea in our head how much it would go for, but not that."

Later, the two friends took to the stage in order to pump the crowd up for the big-ticket item, a brand-new 2012 Ford Mustang Boss Lacuna Seca, which eventually sold for $450,000. 

Auto loan rates reach record lows

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Posted in Auto Loans & Financing News

Auto loan rates are at record lows, making it a great time to purchase a new or used car, according to two separate sources.

According to USA Today, both Edmunds and Bankrate have reported interest rates that are among the lowest ever tracked by the two companies. Bankrate claims that the current average interest rate for a four-year new car loan is 6.21 percent, the lowest in two decades. Some dealers are even going as low as 2.99 percent.

Edmunds, meanwhile, also factors in automaker-subsidized loans and special offers into their rate tracking. According to the company, the average rate of 4.16 in December was the lowest since the company began recording rates in 2002.

There are a variety of factors at play that are driving rates down. Automakers made a big end-of-the-year push in order to drive sales higher, but some of the deals have overlapped into January as well. Dealers are also facing competition from banks and other lending institution hoping to expand their loan portfolio now that the economy is improving, which is in turn making them lower their rates.

Paul Taylor, chief economist for the National Automobile Dealer Association, told the news source that it's a great time to trade your vehicle too, as dealers are valuing the used cars higher in order to stimulate sales. 

Automakers gearing up for the big game

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Posted in Auto Industry News, Mercedes-Benz

Now that the world knows that the Pittsburgh Steelers and Green Bay Packers will be vying for the Super Bowl this year, the only thing left to determine is "who's running commercials?"

Year-in and year-out companies like Anheuseur-Busch, Coca-Cola and Disney are sure bets, but the industry that may get the most airtime this year is automotive, according to the New York Times. Reflecting the recent rise in sales, nine brands have reportedly bought airtime for the big game, up from just six in 2010. And that doesn't even count car-related companies like Bridgestone and CarMax.

Two of those brands are already making their presence felt. Mercedes-Benz is planning its first TV spot ever at the Super Bowl in celebration of the company's 125th anniversary. They're leading up to the big game by giving away cars via a social media contest designed to encourage people to watch their sixty-second spot in the fourth quarter.

Meanwhile, Hyundai's budget brand Kia is looking to capitalize off of last year's successful spot, which featured a crew full of stuffed animals taking the Kia Sorento for a joyride. Kia's VP of marketing, Michael Sprague, told the news source that the commercial helped the Sorento become the top-selling vehicle for every month in 2010.

Controversial Kennedy ambulance sells for $132,000

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Posted in Celebrity Auto News

Occasionally, drivers who purchase used vehicles may see the car increase in value if they keep it in mint condition and that particular model ends up becoming a classic. Yet this is usually not the most efficient way to go about purchasing a vehicle, and more often than not a car will decrease in value over time.

However, one way that a car's price will shoot up dramatically is if it's involved with a celebrity, a famous event, or better yet, both. That was the case for a 1963 Pontiac Bonneville ambulance that was recently sold at auction.

These oddly-shaped machines normally fetch around $10,000, but this model in particular was rumored to have carried John F. Kennedy's body shortly after his assassination. According to the story, the ambulance met the Kennedys at Andrews Air Force Base and carried the body to the hospital for an autopsy and later, the U.S. Capitol.

In the end, a collector shelled out $132,000 for the vehicle, although that was much less than the once-rumored $1 million price tag. That may be because the car blog Jalopnik published a story days before the auction, which claimed that the actual ambulance had been destroyed in 1986.

The auction house independently investigated, but couldn't verify either story 100 percent. Thus, the sale went ahead, although the controversy likely contributed to the much lower bid. 

EPA approves 15 percent ethanol mixture

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Posted in Auto Industry News

The Environmental Protection Agency (EPA) is expected to announce a new approval for the use of corn-based ethanol in a variety of used car models.

According to The Associated Press, the EPA has reached a consensus on the approval of 15 percent ethanol fuel mixtures for use in used vehicles made between 2001 and 2006. Previously, only solutions that contained 10 percent ethanol were okayed for use in those vehicles.

Proponents of ethanol-based fuel argue that it is an attractive alternative to traditional gasoline, which would theoretically reduce U.S. dependence on foreign oil. Many gas stations have begun offering ethanol-based fuels for use. Cars with engines that are designed to accept E85, also known as "flex fuel," have the option of using fuels with higher concentrations of ethanol.

However, the use of ethanol is not without its critics. As ethanol is derived mainly from corn, some in the agricultural industry argue that diverting the resources to fuel will drive up the cost of food. Ethanol is also not safe for use in smaller engines, such as those found on motorcycles, lawnmowers or boats.

Congress has previously stipulated that gasoline refiners must blend in a total of 36 billion gallons of biofuel into auto fuel by 2022, a goal that many believe is only achievable with the higher concentration blends.

Mercedes to introduce hybrid AMGs

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Posted in General Auto News, Mercedes-Benz

In part as a response to tighter emission standards, Mercedes-Benz has announced that it will be offering hybrid versions of its high-performance AMG models in the near future.

Hybrids and high-performance typically don't go hand-in-hand, but the federal government's insistence on higher average mpg ratings for all brands means that automakers must be very careful with debuting any gas-guzzling sports cars, as the AMG models have been known to be. One way to combat that is by offering hybrid versions of the model, which Mercedes appears primed to do.

Mercedes' head of advanced engineering, Herbert Kohler, told Autocar: "In the future AMG will still offer high performance models but there will be hybrids there. AMG needs to reduce fuel consumption."

Hybrid technology can generally be used in two ways with regards to performance-oriented vehicles. Flywheels, ultracapacitors and high-powered batteries can actually serve to increase the available power that a car has, as Porsche will be doing on its upcoming performance hybrids. Or the automaker can incorporate stop-start technologies like regenerative braking that serve to reduce emissions and fuel consumption.

For now, Mercedes appears to be taking the second route, although the models won't be here for a few years. In the meantime, drivers interested in performance or hybrid vehicles may want to shop the used car market, as both of these vehicles typically carry high price tags.

Chevy unveils new Sonic

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Posted in Auto Industry News, Chevrolet

Compact cars are all the rage in a more economically-conscious auto market, and models like the Ford Fiesta and Honda Fit have sold well for their respective companies. But GM's small car offering, the Aveo, was often left in the dust, prompting the automaker to give the car a makeover.

GM debuted that makeover at the recent North American International Auto Show in Detroit, showing off the new Chevy Sonic, an updated, hipper version of the Aveo that looks set to go up against Ford's Fiesta for the title of coolest small car when it debuts in the 2012 model year.

The Sonic debuted in a bright orange, attention-grabbing paint scheme, and GM execs were quick to point out that the backseat has more room than the Fiesta. The new Sonic packs some punch under the hood, with drivers able to choose between the base 1.8-liter four-cylinder or the turbocharged 1.4-liter variant.

All signs pointed to the Sonic being a bigger part of GM's plans as well. The company showed off a concept version of the car called the Z-Spec, a tuner car with outfitted with funky rims and a racing stripe. The company will also be using the Sonic's platform to build the new luxury Buick Verano. 

Ford execs: Lincoln to receive new identity

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Posted in Auto Industry News, Lincoln

While Ford has engineered a massive turnaround for its core brand throughout 2010, its luxury Lincoln marquee has lagged behind for the most part.

If Ford executives have their way, however, that won't be true for long. At the North American International Auto Show in Detroit, Derrick Kuzak, Ford's global vice president of product development, outlined the big changes that Ford has for the struggling luxury line.

"The strategy isn't just new products, but full differentiation from the Ford brand in not only design, but in technology," he said.

Until now, Lincoln products have been slightly upgraded versions of existing Ford vehicles. But the new outlook for the brand is to develop models that will be based off of Ford platforms, but vastly different in all other areas. Examples include significant performance upgrades, entirely new sheet metal, high-end technology on the interior and in some cases, unique engines.

According to USA Today, Ford CEO Alan Mulally further told a group of reporters that the naming conventions for Lincoln vehicles were also under consideration, and that the automaker may move away from the "MK" style seen on recent vehicles.

Toyota expanding Prius offerings

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Posted in Auto Industry News, Toyota

The Prius has been the top selling hybrid of the last decade, and whether an eco-conscious buyer is shopping for a new or used car, it's likely near the top of the list. So it should come as no surprise that Toyota is looking to parlay its successful model into an entire range of offerings.

At the recent North American International Auto Show in Detroit, Michigan, the Japanese automaker announced the new "Prius family" consisting of the existing Prius and three brand new models, one of which is still in the concept stage. The company hopes that the varied offerings will appeal to a broader customer base than the existing sedan Prius can.

First up is the new Prius v, which the company says stands for "versatile." This hybrid wagon is designed to compete with crossovers, SUVs and vehicles aimed at families.

Going in the opposite direction in terms of size is the Prius c, the compact Prius. Although still just a concept, Toyota hopes that this version of the Prius will be able to take on smaller hybrids, like the Honda Fit, and provide an affordable option for eco-conscious consumers.

Finally, the company also unveiled the new Prius Plug-in, which is expected to go toe-to-toe with the Chevrolet Volt, Nissan Leaf and other EVs rumored to be in the works by other automakers.

The Prius can be a bit expensive, so drivers looking for a hybrid option now may want to check out the used car market for some slightly more affordable options.
 

Volt, Explorer, named Car and Truck of the Year

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Posted in Auto Industry News, Chevrolet

The North American International Auto Show will see the debut of a number of new cars, but all eyes were on the awards podium as two of the most important honors of the year were announced.

The North American Car and Truck of the Year Awards are significant bragging points for automakers, as the results are tabulated by the votes of 50 automotive journalists from a number of publications, rather than one source. The finalists have been known for awhile, with the Chevy Volt, its electric nemesis the Nissan Leaf and the Hyundai Sonata competing for the title. In the end, the much-hyped Chevy Volt was the winner, a significant victory for the once-beleaguered General Motors.

Meanwhile, another domestic automaker took home Truck of the Year when the Ford Explorer beat out Chrysler's Dodge Durango and Jeep Grand Cherokee for the honor.

While the Explorer is a somewhat traditional pick for the automotive press, the Volt and Leaf were two unconventional choices to say the least. Not only were the models the first electric vehicles to be given the honor, but the Volt and Leaf have a tiny number of sales compared to more established vehicles. The Associated Press reported that the Volt had moved just 350 units in December, while the Leaf sold only 10 models – though the numbers are expected to rise as the cars are rolled out nationwide.