Category Archives: General Auto News

Dealers Move Away From Incentives For New Cars

Manufacturers assign certain price tags to their vehicles, but the cost to consumers tends to vary, as additional features can drive the costs higher, while incentives may lower the sticker prices. This means the average transaction price for consumer vehicles fluctuates, and the most recent report by TrueCar.com indicates July saw a 0.5 percent decline compared to June. Last month, the average price paid for a new car was $30,369, which is $139 less than in June, but $487 more than in July 2011. The reason the price has increased in the past year may be due to dealers putting more emphasis on financing than cash incentives.

"Even though automakers may give the impression that they are ramping up incentives spending, the very low cost of funds and historically high resale values are in fact enabling them to create a ton of noise with fewer actual dollars spent," said Jesse Toprak, vice president of market intelligence for TrueCar.com. "Manufacturers are increasingly moving away from cash incentives and pushing finance and lease programs, which – along with consumers continuing to buy highly optioned out vehicles – is helping with sustained high level of transaction prices."

The ratio of incentives to transaction prices has declined from June to July, and last July was higher than the same month this year as well. As many dealers are leaning away from incentive offers, drivers may want to consider buying used cars to find the savings they were looking for in new cars. New Jersey Auto Auction has a range of used vehicles, including many from the 2012 model year. All of the cars on the lot have been CARFAX certified, and the dealer offers guaranteed credit approval thanks to a partnership with the Credit Acceptance Corporation.

Warning Systems To Prevent Kids Being Left In Cars Are Ineffective, NHTSA Says

In warm weather, the interior temperature of a car can get very hot very quickly, which is extremely dangerous to a child left alone in the vehicle. The National Highway Traffic Safety Administration (NHTSA) reports heatstroke is the leading cause of death for children under 14 involved in non-crash vehicle-related accidents.

"With summer temperatures hitting record highs around the country, child heat stroke is clearly an issue of national concern," said U.S. transportation Secretary Ray LaHood. "Public education is the best way to help parents and caregivers prevent tragic accidents and keep their children safe."

There are many products on the market that claim to prevent parents from accidentally leaving their kids in the car, but a recent study by the NHTSA and The Children's Hospital of Philadelphia (CHOP) found these devices are unreliable and cannot be trusted as the only line of defense in preventing child heatstroke. CHOP analyzed the effectiveness of available products that connect to a child's safety belt and found any number of situations can render them useless. If a child slouches in his or her seat or spills a drink on the device, it may not alert the driver if they leave their kid in the car when exiting.

These devices are also ineffective when it comes to children finding their way into their parents' parked cars. If a kid decides to play in the car, he or she may get locked in. It is important for parents to consider other strategies to ensure their child is safe around the vehicle. Keeping a car locked and leaving the keys out of a child's reach can stop children from trying to play inside a vehicle. Putting a purse, wallet or phone with the child can also serve as a reminder to double check the backseat when getting out of a car.

Drivers looking for a new family car can head to New Jersey State Auto Auction. The dealer carries a variety of vehicles, from minivans to SUVs and midsize sedans, so shoppers will be sure to find something that fits their families' needs.

New Electric Vehicles Emerge on the Market

Most major automakers have electric vehicles or hybrids in their lineups, but these options are typically accompanied by higher price tags than comparable gas-powered options. There is now a new option for drivers looking to make the switch to electric without spending too much. Alvarez Electric Motors Company (AEMC) recently unveiled its very first vehicles, the Eco-E Commuter Car, EcoVan and EcoTruck.

The Eco-E has a maximum range of 30 to 40 miles and can reach a cruising speed of 25 miles per hour, making it a possibility for drivers who spend most of their time on city streets. The car starts at about $10,000, and is expected to use up about $5 of electricity on a monthly basis. AEMC partnered with the Liuzhou Wuling Special Purpose Vehicle Manufacturing Company in China to create these new electric vehicles.

"Americans who love the environment and hate the price of gasoline are showing an increasing level of interest in owning an electric vehicle, but they sometimes have been stymied by the relatively high cost of ownership," said Ramon Alvarez, the president of AEMC. "AEMC is going to bridge that gap with a commuter car that is priced just under $10,000 and is eligible for thousands of dollars in rebates and tax credits through our local, state and federal governments."

Alvarez believes the Eco-E could be perfect for commuting across a college campus, getting around a golf course or at large-scale manufacturing sites. The new car is smaller than a Smart ForTwo, and only seats two, so drivers who want something bigger may want to consider used options that don't break the bank and can be driven on the highway. NJ Auto Auction features a wide variety of makes and models at affordable prices, including the Toyota Prius and other alternative fuel options.

New Vehicles In 2012 Set Fuel Economy Record

New federal guidelines for fleetwide fuel economy improvements as well as consumer demand for better fuel economy have spurred automakers to strive to improve their vehicles' gas consumption. The hard work has paid off, as industry analysts Baum and Associates found new cars that came onto the market in the first half of 2012 set the record for high fuel efficiency.

The average fuel economy of new passenger vehicles in the first six months of 2012 was calculated to be 23.8 miles per gallon (mpg), which is a 1.1-mpg improvement over the previous six months. The estimated averages are already ahead of expert predictions of 23.4 mpg for the year, and they will only get better as the year progresses.

"Thanks to a bumper crop of fuel efficient models in the most popular segments, consumers don't have to choose between fuel efficiency and performance," said Alan Baum, principal of Baum and Associates. "No matter what type of vehicle you want, midsize car, minivan, SUV or pickup truck, car makers are now upping fuel efficiency performance across the board. The new era of fuel efficiency is truly here."

The National Highway Traffic Safety Administration sets fuel economy guidelines for automakers to meet, and last year they set the new corporate average fuel economy (CAFE) standard to be 54.5 MPG by 2025. These guidelines will be finalized by the fall, which means consumers can expect to see the average fuel economy continue to improve over the coming years.

While new cars, in many cases, have vastly improved mileage over their predecessors, this does not mean there are not fuel efficient used models available. In fact, there are many options available for used car shoppers at NJ Auto Auction. Plus, every vehicle on the lot is CARFAX certified, so drivers know they'll be getting behind the wheel of a reliable ride.

July Car Sales Show Year-Over-Year Improvements

Reports of July car sales are already flooding in, even though the month is not quite over, and overall vehicle sales are experiencing the second strongest growth rate they have seen in the past 12 months, according to J.D. Power and Associates. The automotive experts at J.D. Power predict new vehicle sales for the month will come in around 969,200 units. Although it is a modest decline from June sales, it's still promising for the year. Total sales, including used cars, will reach about 1,168,000 units in July, which is approximately 20 percent better than July 2011.

"Retail sales got off to a fast start in July, and while they've slowed down a bit as the month has progressed, through the first 16 selling days, they're still up 15.1 percent compared to July 2011," said John Humphrey, senior vice president of automotive operations at J.D. Power and Associates. "The positive growth has continued to build, as July is looking strong across most vehicle segments."

In particular, subcompact, compact and midsize vehicles are expected to show year-over-year gains of at least 28 percent in July. Sales of midsize crossover SUVs, on the other hand, are projected to slow in July.

Economic recovery, consumer confidence and pent-up demand for new vehicles has taken some of the strain off used vehicle sales, resulting in slowly declining prices for used cars. This makes it an excellent time to head to NJ Auto Auction to find the perfect used ride. All the cars, SUVs and trucks on the lot are CARFAX certified, so drivers know they'll be leaving in a reliable vehicle.

Downsizing Your Ride Doesn’t Mean Sacrificing Quality

There used to be a dramatic difference in quality between smaller and larger vehicles, but that is quickly becoming a thing of the past. J.D. Power and Associates recently released findings from the annual Automotive Performance, Execution and Layout (APEAL) Study, which shows more than twice as many drivers "downd," or downsized when they traded in their old vehicle for a new one, than those who "upd," replaced their old model with one from a larger segment.

The former group accounted for 27 percent of new-vehicle buyers, while the latter made up 13 percent of this group. The remaining 60 percent stayed within the same segment when replacing their old cars. The study found that trade-in cars were on average about 6 years old, and since these drivers have last purchased new cars, there have been major changes and advancements across the board that have made smaller vehicles more appealing.

"New-vehicle buyers who down are not making sacrifices that they once were," said David Sargent, vice president of global automotive at J.D. Power and Associates. "Automakers are heavily focused on providing the U.S. market with appealing smaller models, and buyers may be surprised at just how good some of them are"

Smaller vehicles these days provide better performance, fuel economy, styling and features than many older models. That's not to say older compact and subcompact vehicles are lacking in quality. There are plenty of options available for drivers looking to purchase used vehicles at New Jersey State Auto. Every vehicle on the dealer's lot is CARFAX certified, so buyers know they'll be driving away in reliable rides.

San Francisco and Other Cities Consider Taxing Drivers Per Mile

San Francisco drivers may soon be paying taxes for how far they drive rather than how much gas they use. According to The Associated Press, the local government is determining the effectiveness of taxing motorists per mile driven rather than by gas consumption. To measure mileage, odometer-like equipment will need to be installed in personal vehicles. Drivers may be charged anywhere from less than a penny to 10 cents per mile, the news source reports.

The Metropolitan Transportation Commission and the Association of Bay Area Governments have decided to take this approach as an answer to the improving fuel economy, according to The Associated Press. They are also hoping this taxation may reduce congestion and vehicle emission pollutants by encouraging drivers to drive more frugally.

"The last thing we're interested in is where you go and what you do," Commission spokesman Randy Rentschler told the AP. "What we're trying to do is get people to figure out a way to raise revenue that they could support."

San Francisco is not the first city to consider this taxation method, and it may not be the last. The Jacksonville Business Journal reports Florida officials are thinking about a similar tax, in which drivers will be required to report their mileage when they renew their registrations. Being taxed per mile can encourage drivers to think more about how much they're getting behind the wheel.

Drivers can counterbalance these potential taxes by driving vehicles with excellent fuel economy. There are many fuel efficient models for drivers to choose from at NJ Auto Auction. Plus, every car is CARFAX certified, so buyers know they'll be driving away in a reliable ride.

Honda CR-V Wins Compact SUV Shootout

Compact SUVs are rapidly growing in popularity among drivers, as they offer the interior space of an SUV and the handling and fuel economy of smaller vehicles. Cars.com recently got together with USA Today and MotorWeek to determine which of the leading compact SUVs stood out most among its competitors. The Compact SUV Shootout compared six different small SUVs against one another in a series of tests. The Honda CR-V beat out the Chevrolet Equinox, Ford Escape, Hyundai Tucson, Mazda CX-5 and Kia Sportage.

The vehicles were put through tests including a 200-mile drive across highways, city streets and other environments and test drives by families looking to purchase small SUVs. Each model was also driven across the same track by the same professional driver to discern any noticeable differences in their handling and other qualities.

"This was a competitive shootout of an important segment, and we were impressed with all of the vehicles," said Patrick Olsen, editor-in-chief for Cars.com. "The winning Honda CR-V is a great choice for compact SUV shoppers because of its impressive lineup of standard features, great comfort and overall ride, all combined with Honda's history of strong reliability."

Drivers who are in the market for a used compact SUV like an older model CR-V can head over to NJ State Auto Auction. The dealer carries a wide variety of makes and models, and every vehicle is CARFAX certified, so drivers know they'll be getting a reliable ride. The SUVs tested in the Shootout each cost under $25,000 new, so used models are likely to be even more affordable.

Young Drivers Don’t Fear Drowsy Driving

Driving is a serious responsibility that requires complete attention of the person behind the wheel. While most motorists know that driving while tired is unsafe, a recent study conducted by the National Safety Council found younger drivers may not be as aware of the risks of drowsy driving.

Drowsy driving can be just as dangerous as operating a car while intoxicated, as drivers exhibit similar behaviors when they are sleepy as when they are drunk. The report also indicated people under 30 are the most likely to get behind the wheel when they're feeling a bit tired, especially on longer trips.

"Drunk driving is universally viewed as dangerous, but young people especially don't understand the very serious risks associated with drowsy and distracted driving," said Janet Froetscher, president and CEO of the National Safety Council. "All drivers need to understand the dangers of driving while tired."

Parents of teen drivers should discuss this safety issue with their kids to ensure the young motorists are aware of the risks. Many younger drivers do not consider drowsy driving a serious offense, and find it acceptable to get behind the wheel while groggy, the study found. Alerting young motorists to the truth will help them stay safer on the road and avoid getting into car accidents.

Parents and teens shopping for cars for the new driver can head to New Jersey Auto Auction. The dealer carries a variety of makes and models, and each one is CARFAX certified. This allows parents to know their teens are getting behind the wheel of safe, reliable cars.

Total Car Score Announces Its Picks For The Best Off-Road Vehicles

Total Car Score recently released its list of the Top 10 Best Off-Road Vehicles for 2012. The 2012 Jeep Grand Cherokee was ranked the number one model, due to its V8 engine and off-road capabilities. Land Rover's Range Rover and the Ford F-150 came in a close second and third, respectively. Two other pickups – the Nissan Frontier and the Toyota Tacoma –  rounded out the top five. The Jeep Wrangler came in last, even though it is known for being one of the most impressive off-road vehicles available.

"The Jeep Wrangler is arguably the most capable off-road vehicle currently produced, but it gets a low Total Car Score because the industry rates it against compact crossovers that have a smooth ride and a quiet cabin at highway speeds – but very little off-road talent," said Total Car Score's editor-in-chief, Karl Braur. "That's why the Wrangler is on this list of the Best Off-Road vehicles despite its low score, and why shoppers seeking off-road prowess should look past high-level ratings to confirm what influences them."

The Total Car Score list provides a useful guideline to help narrow down your choices. Reading reviews online and talking to other owners of models you're interested in can also help you make an educated decision when it comes to choosing the appropriate vehicle. One of the best ways to better understand a particular model is to take it for a test drive. New Jersey State Auto carries a wide variety of makes and models, making it easy to try out the different cars you're interested in.