Auto loan delinquencies hit their lowest levels

As the economy continues to pick up the pace, many people are opening their wallets once again in an effort to make the purchases they had been putting off. The auto market has experienced a surge in sales so far this year, and it seems as though consumers aren't in over their heads.

TransUnion reports the national auto loan delinquency rate hit the lowest level on record, indicating consumers are able to keep up with their car payments. The rate is measured by people who are 60 or more days past due on their bill. For the first quarter of 2012, the rate dropped to 0.36 percent, which indicated a 27 percent decrease from the first quarter of last year.

Analysts for TransUnion said these figures can be attributed to the fact that buying new or used cars is becoming a necessity for many people, particularly if they held onto their old model for longer than they should have. Peter Turek, automotive vice president of TransUnion's financial services business unit, indicates that the sector will continue to see an increase in lending and leasing, particularly in the non-prime risk segments.

"We anticipate national auto loan delinquency rates to remain relatively low for the remainder of the year, rising and decreasing with traditional seasonal patterns," Turek said. "However, a slight increase from this record-low level would not be surprising and should not be construed as a negative event, as lenders continue to originate more loans to consumers across all credit risk levels."

BusinessWeek reports that lenders are approving more auto loans now after pulling back the amount of money handed out due to the recession. As some people have faith in the improving economy, lenders are becoming more willing to help consumers afford their vehicle purchases, with many looking to expand their customer base.

Alternative Fuel Sector May Need Government Support for Growth

While many advancements have been made with alternative energy in relation to the automotive industry, sales of hybrid, electric and other alternative vehicles are still relatively low compared to overall sales. A recent survey conducted by Booz and Co. of original equipment manufacturers (OEMs) found many believe the sector will improve, but only if the government continues to provide support.

The report indicates 70 percent of OEM executives are more confident in alternative powertrains than they were last year, with the exception of fuel-cell and battery-electric vehicles. Roughly 71 and 75 percent of respondents claim they are less enthusiastic about fuel cell and electric technology, respectively. However, about 58 percent claim continued government support would boost non-gas vehicles to account for at least 10 percent of the total market share, while only 30 percent think it will succeed without federal backing. Government intervention includes setting up a nationwide charging station infrastructure for electric and hybrid vehicles.

"One of the challenges we've had is that there hasn't been a consistent energy policy for a long period of time," Scott Corwin, a partner at Booz and Co., told WardsAuto.

The news source indicates many consumers are choosing to purchase hybrids and electric vehicles for the tax incentives rather than for fuel efficiency. If the government removes these incentives, there may be a sharp decline in sales for this sector.

Another issue that may be turning drivers away from alternative energy vehicles is the overall design. Many hybrid and electric vehicles are given unique physical appearances that make them look, in a word, futuristic. But this may not be the best image for the new breed of automobiles, which is why many automakers have introduced alternative drivetrains on their popular models.

Those looking to get behind the wheel of a used hybrid or other vehicles that rely on alternative energy can head to New Jersey State Auto Auction. The used car dealer in NJ offers a variety of makes and models at affordable prices.

Mechanics Reveal Tips to Keep Car Running Longer

With the country still emerging from the recession, many American drivers are holding on to their cars longer than ever. As a result, the average age of a car on the road is around 11 years old. There are many ways motorists can ensure they get the most out of their ride for years to come, and a recent survey of mechanics revealed some of the best options.

Researchers talked to 450 auto maintenance experts across the country, and the results revealed some of the best ways to take care of your car are also some of the easiest. The majority of respondents said that changing your oil at the recommended intervals and regularly replacing all the vital fluids are the most important components in keeping your car on the road. Making sure you get your tires rotated was also one of the most popular answers.

Staying on top of general upkeep likely doesn't come as much of a surprise to many motorists. However, the many mechanics also highlighted the benefits of using higher-quality gasoline. In fact, seven out of 10 of the respondents said people can ensure their cars  run longer thank to higher-quality gas. In a similar vein, almost all of the mechanics (95 percent) pointed to having a clean fuel injector as one of the most important components of having your engine perform well.

Whether you need your oil changed, tires rotated or a more substantial repairs, New Jersey State Auto Auction's Total Car Care center can help you out. With a staff of talented mechanics, you can be sure to keep your car on the road as long as possible.

Saab May Be Saved By a Mysterious Investment Company

Saab may not be gone forever from the automotive world. A recent report by AutoCar indicates the Swedish brand may soon be picked up by National Electric Vehicle Sweden. This is not the first time the near-dead Saab has had a potential investor, but this company shows more promise than the last. Youngman, a Chinese automaker, recently backed out of negotiations to purchase the European car company.

The Swedish company is the latest business rumored to be considering taking Saab under its wing. The news source reports not much is known about it, and its name was only officially registered earlier this week.

"We have a very anonymous investment company that owns shares in this registered company, Sun Investment, but we still don't know who's behind it," Valdemar Lonroth, a local reporter in Saab's hometown of Trollhattan, told the news source. "We don't know if it's a Chinese or a Japanese company behind this conglomerate. Nobody really has a picture of what kind of resources they have or what their intentions are, besides the fact that they want to produce electric vehicles."

Since the company declared bankruptcy, the few remaining new models for sale were quickly snatched up from dealers. Many owners are holding onto their Swedish vehicles, as there is no certainty the brand will ever be revived or be the same if it does make a comeback.

Those looking to keep their Saabs on the road as long as possible will need to keep up with regular tuneups. The mechanics at New Jersey State Auto Auctions' Total Car Care Center in Jersey City can take care of maintenance, oil changes and repairs to preserve your Saab.

Kia Forte Named a Top Car for College Grads by Total Car Score

May is graduation season, and many parents choose to reward their kids' hard work with the gift of a car. Total Car Score recently published a list of its picks for the best cars for drivers fresh out of college that are reliable, safe, fuel efficient and affordable. The Kia Forte not only made the grade, but it was the most affordable vehicle on the list, which also included the Ford Focus, Volkswagen Golf, Chevy Cruze and Scion xB.

"Forte's achievement of being named to Total Car Score's 'Top Cars for College Grads' list is validation that its low cost and abundance of smart, youthful characteristics make it a natural fit for young adults who are about to enter the professional world," said Orth Hedrick, product planning director for Kia Motors America. "Furthermore, as the automotive marketplace becomes increasingly competitive with higher-quality cars, the Kia Forte is poised to succeed as one of the most well-built, well-equipped cars in its class."

In the past few years, Kia has built up a reputation for delivering affordable, trustworthy vehicles and the company is now one of the leading brands in the U.S., making it a great choice for a college grad.

A new Forte has a starting price of just $15,200. This means used models are likely to be even more affordable. The Forte has not undergone any dramatic changes in the past few years, so parents can save money by purchasing a used model from a used car dealer in New Jersey like New Jersey State Auto Auction. An older version will still have many of the same amenities as the 2012 model. 

Auto Loan Delinquencies Reach 13-year Low

Lenders have become increasingly likely to approve loans for people looking to a buy a used car in New Jersey or elsewhere, and it looks like their trust in consumers has been rewarded. The rate of late auto loan payments is currently at its lowest point in 13 years, according to The Associated Press.

From January to March of this year, the number of auto loan payments that were at least 60 days overdue dropped significantly to a national level of 0.36, good for a decrease of about 27 percent compared to the same period in 2011. The findings are especially encouraging given that lenders are approving financing for even the most high risk borrowers. Additionally, consumers seem to be especially likely to prioritize their car payments.

"Consumers have done a very good job of adjusting to their ever-changing circumstances and managing their debt load," Peter Turek, a vice president at TransUnion's financial services business unit, told the AP. "The data show consumers are, in fact, paying their auto loans more on time than other loan products."

This marks the 10th consecutive quarter that auto loan delinquency rates have been lower than the previous year's quarter. Experts say a lot of that can be chalked up to the fact that the recession caused many consumers to make paying off loans and other debts a priority.

If you're still concerned about being approved for a loan, you should head to New Jersey State Auto Auction. Thanks to a partnership with the Credit Acceptance Corporation, NJ Auto is able to offer guaranteed credit approval, regardless of your past history, and there's no better way to rebuild your credit score than by making loan payments on time.

Test Drives Are Key To Finding the Right Vehicle

There are many different aspects consumers needs to pay attention to when shopping for new or used cars in New Jersey. Everything from researching the market value of the vehicle to finding out how it compares to similar makes and models can contribute to the final decision, but the test drive is the best chance to really find out if a certain vehicle is right for you. Getting behind the wheel gives you the chance to check for any issues with how the car drives, the interior features and other things like visibility and cargo space.

"The test drive can be the most important aspect of buying a new or used car, but it's also one of the most overlooked," said Joe Wiesenfelder, executive editor for Cars.com. "We want to ensure that shoppers don't let their emotions get the best of them when they should be gathering the important information they need to make the right purchase."

Cars.com recommends giving the vehicle a thorough once-over before you even start it up. Checking the door handles, power windows, radio and other features is a good start, especially when choosing a used vehicle. There may be something minor, such as a seat adjuster that sticks, that will wind up driving you up a wall if you buy the car. When you're sitting in the driver's seat, make sure you have clear visibility. You may find the SUV you had your heart on makes it next to impossible to see behind you. Cars.com recommends checking the storage space of the vehicle to ensure it will fit your needs.

New Jersey State Auto Auction carries a wide variety of makes and models, giving you will have plenty of options to choose from. Plus, all their vehicles are CARFAX certified, so you know you're getting a reliable vehicle.

Stay Safe on the Road This Memorial Day Weekend

Whether you're planning to hop in the car and head to the beach or you just want to stay home and enjoy the holiday weekend, you should be sure to keep car safety in mind. Memorial Day is notorious for celebrations and barbeques, and this often includes indulging in a few alcoholic drinks. Mothers Against Drunk Driving (MADD) is reminding people to think twice before getting behind the wheel after the parties are over.

"MADD wants people to be safe on the roads this holiday weekend, so we have some tips to help," said MADD national president Jan Withers. "Coupled with law enforcement's efforts to deter and detect drunk driving, we hope this information will help keep our loved ones safe."

The organization recommends people plan ahead if they want to commemorate the beginning of summer with a few brews. Choose a designated driver before the festivities begin, and be extra careful and aware on the road. There is likely to be an increase of pedestrians, so it's especially important to observe the speed limits and pay attention to everything going on around you. MADD also suggests watching out for other motorists who appear to be driving erratically. If you notice this behavior, it is best to stay out of their way. If they are behind you, pull over and let them pass rather than risk being nearby if they lose control of their vehicle.

It can also be a good idea to get a tuneup before the weekend to ensure your car is running smoothly and reduce the risk of a crash when you're trying to enjoy the holiday. The automotive experts at New Jersey State Auto Auction's Total Car Care Center can perform routine maintenance and address any necessary repairs so your car is running well this Memorial Day.

Fuel Economy Continues to Drive Consumers’ Car-Buying Decisions

The  price of gas may have stopped climbing for the moment, but drivers are still concerned with fuel economy when it comes to picking out their next vehicles. A recent survey conducted by Consumer Reports found fuel efficiency is the most important factor for the majority of drivers. Roughly 37 percent of survey respondents said this was their top concern, while quality (17 percent) and safety (16 percent) rounded out the top three. Value (14 percent) and performance (6 percent) were also leading factors.

"These results make it clear that high fuel prices are continuing to impact driver behavior and influencing future purchase considerations," said Jeff Bartlett, deputy auto editor for Consumer Reports. "While quality, safety and value are still important, this may be foreshadowing a market shift by folks seeking relief at the pump."

Choosing a fuel efficient vehicle was not all about saving money either, as 65 percent of female drivers and 58 percent of men claimed they wanted to get behind the wheel of a vehicle with decent fuel economy to reduce their impact on the environment. Vehicles with alternative options, such as electric, hybrid and diesel cars, are gaining popularity as well, according to the survey results. More drivers (73 percent) are willing to consider these types of vehicles that ever before.

Whether drivers want to get behind the wheel of an electric car like the Chevy Volt or a hybrid like the best-selling Toyota Prius, they can head to New Jersey State Auto Auction. The deal has a wide selection of used cars in NJ to choose from, including alternative fuel options as well as efficient gasoline-powered models.

Always Research Vehicles Prior to Buying to Avoid Lemons

If you are not thorough when you purchase a used car, you could end up with a lemon. Unlike reputable car dealerships in New Jersey like NJ State Auto Auction, some dealers may try to pull the wool over your eyes to make a quick buck. Before you purchase a car, it is always wise to check the vehicle history report to find out if there have been any major repairs. This could bring down the value of the car as well as increase the odds of encountering a major mechanical problem early in ownership.

Some dealers are up front about their inventory such as New Jersey State Auto Auction, which guarantees all its cars are CARFAX certified. A CARFAX report not only details the individual vehicle's history, but alerts drivers to any recalls that have been made on that particular make and model. CBS News reports this excludes BMW, Toyota, Volkswagen, and Lexus, as these automakers refuse to work with CARFAX. For these brands, and as added assurance for others, you can have an independent mechanic inspect the vehicle you want before you buy it to look for signs of
previous repairs or major damage.

If you do encounter mechanical problems with used cars in NJ, you can bring them to the Total Car Care Center at NJ Auction. The certified mechanics at this Jersey City shop can help you sort out any necessary repairs as well as perform maintenance to keep your used vehicle on the road. The service is available to drivers whether they bought their cars at NJ Auto or from independent sellers.