Edmunds: Compact car prices on the rise

By
Posted in General Auto News, How To

The recent uptick in fuel costs has caused the prices on many used car models to soar as of late, especially compact cars with good fuel economy ratings.

According to data from Edmunds reported by MSNBC, the price of a used Honda Accord has gone up significantly since September, with a purported price increase of 24 percent. Used Hyundai Sonatas are also up in price, with an average jump of 22 percent. Other big movers include the Honda Civic at 13 percent and the Nissan Sentra at 12 percent.

"Gas prices are definitely starting to ripple in the used car market right now," Bill Visnic, an analyst for Edmunds, told the news source.

The news may not inspire much confidence in drivers considering a used vehicle, but analysts believe that the recent trend is just the tip of what could eventually be a much larger surge in small car prices. In the past, seeing the price of fuel reach above $4 per gallon tends to send consumers into a panic, trading in their large vehicles for smaller ones. The price has already been above $4 in some parts of the country, but the national average is still at $3.80 – meaning small car prices could go higher still if costs continue to rise.

In addition, the recent Japanese earthquake may mean a shortage of vehicles over the summer, making the future appear a bit bleak pricing-wise. Many dealers are already preparing to have a reduced supply of cars for sale, meaning that incentives are drying up and prices may begin climbing in anticipation of the shortfall.

Of course, for those who can weather the low fuel economy, this can be a great time to get a deal on a used SUV or sports car. It's true you might be paying a bit more at the pump while the prices remain high, but if you end up with significant savings on the initial deal, it'll be worth it in the long run.

In essence, it might be smart for drivers considering the purchase of a used car to buy as soon as possible, before the prices start to go up even further. Shopping at New Jersey State Auto Auction can ensure that you get a fair deal no matter what the national pressures may be. Financing is available for those who qualify, and there is a wide selection of cars for sale no matter if you're looking for an SUV or small car.

Trade your car in now before prices rise

By
Posted in How To

Even those who have never taken an economics course knows that any business is ultimately based off of the law of supply and demand. With the recent Japanese earthquake wreaking havoc on Japanese automakers and car parts manufacturers, it seems like the "supply" aspect of the equation could be in great jeopardy over the next few months – leading to a demand that could send prices soaring.

Nearly every dealer seems to use the phrase "now is a great time to buy." In fact, the slogan is so often repeated that it's essentially lost all meaning to most buyers. However, now really is a good time to buy for those seeking a vehicle, before the effects from the earthquake really start to take their toll. Most dealers have a supply of cars that will last them through April and May. But with production slowing down or ceasing completely at several major automakers, many analysts are predicting shortages over the summer. The situation is not restricted to Japanese vehicles either – many domestic models source their parts from Japan, so they're expecting slowdowns as well.

"If you need a vehicle, buy right now," Edmunds president Jeremy Anwyl told USA Today. "Look for the vehicles that are available and have incentives to get a good deal… If you can wait until fall, the pricing will be better."

So with prices likely to rise over the summer, it's a good time to buy a car, but it's also looking like it will be an excellent time to trade in a vehicle. Dealers are fully aware that they may be seeing reduced inventories over the next few months, so they'll be looking to secure cars that they can resell over that time period. That could potentially lead to a higher price for your trade-in.

Of course, the normal rules of trading in your car still apply. Be sure to utilize pricing guides like Kelley Blue Book to determine what your car is worth, and don't be afraid to negotiate. In addition, keep the discussion about the trade and your potential vehicle purchase completely separate. Many dealers will raise the price of the car that they're selling you while seemingly offering a great deal on your trade. Keep the two figures separate. In fact, Edmunds recommends not even revealing that you have a trade until after you've locked down a price for the car.

With some savvy shopping and a little elbow grease, you can get a great price on a new or used car as well as an excellent deal on your trade-in. When you're ready to buy, head down to New Jersey State Auto Auction for a great selection of vehicles and fair trade-in prices.
 

Chrysler to sell natural gas vehicles in 2017

By
Posted in Auto Industry News

Chrysler has announced that it will be bringing natural gas-powered vehicles to the U.S. by 2017, possibly utilizing technology already being used by its parent company, Fiat, in Europe.

The automaker reportedly sees the technology as a strong alternative to the hybrid and electric vehicles that many automakers are currently producing. Chrysler says that natural gas-powered vehicles are cheaper to produce and could potentially reduce emissions even further than electric models.

"The technology is very actively being worked on," Bob Lee, Chrysler’s vice president for engine and electrified propulsion systems, told Bloomberg. "It's a good way for some diversity in the market in terms of fuel use."

Currently, the only natural gas vehicle in the U.S. is the Honda Civic GX, although its only available in limited markets. Honda claims that the vehicle is more affordable and has longer range than electric competitors. Fiat, which owns a majority stake in Chrysler, sells multiple natural gas vehicles in Europe, as do other automakers.

Barriers to widespread adoption of natural gas models include a lack of fueling stations and large gas tanks that take up a lot of space in the vehicles.

Natural gas vehicles are still a long way off, so in the meantime, drivers searching for a fuel efficient model may want to instead opt for a used car from New Jersey State Auto Auction.
 

Ford expands F-150 recall to 1.2 million vehicles

By
Posted in Auto Industry News, Ford

Ford will be expanding its previous recall of approximately 150,000 Ford F-150 pickup trucks to more than 1 million, after considerable pressure from the National Highway Traffic Safety Administration (NHTSA).

The issue relates to a possible short in the electrical wiring that could cause the airbag to deploy unexpectedly, even while the vehicle is in motion. In February, Ford said that the problem could be attributed to an error during a specific shift at a specific factory, meaning just a fraction of the 2004 to 2006 versions of the pickup truck were affected. However, the NHTSA was not satisfied, and urged the automaker to recall all trucks made during the time period, approximately 1.2 million vehicles.

The original recall went through as planned in February, but after discussions with the NHTSA, Ford has decided to expand it to include the extra million vehicles. Drivers will be notified in May, and repairs are expected to take about half a day's work at the dealership.

Drivers interested in purchasing a used Ford F-150 should be sure that the truck is either not included in the recall or has had the necessary maintenance work performed. Those interested in this model may want to consider New Jersey State Auto Auction, where they can get a great deal on these and other vehicles.
 

GM pushes up start date for Malibu

By
Posted in Auto Industry News, Chevrolet

In an unusual move, General Motors has announced that it will be pushing up the scheduled production of the 2013 Chevrolet Malibu, meaning buyers may see the car four months ahead of schedule.

The car was originally slated to begin production in May 2012, but a perceived "hole" in GM's release lineup prompted the company to push the production up sooner to January, according to the Detroit News. Reportedly, new CEO Dan Akerson felt that the company did not have enough guaranteed top sellers being released between now and then, so he asked that changes to the schedule be made to accommodate the Malibu.

"Since Mr. Akerson came aboard, he's challenging us to move faster and this is the latest example," GM spokesman Dave Darovitz told the news provider.

As Chevrolet's midsize sedan contender, the Malibu is one of the top sellers for the company, moving nearly 200,000 units last year alone. A redesign generally tends to boost those numbers even higher.

Chevrolet will unveil the new car next week at the Shanghai Auto Show, with the event simulcast on the company's Facebook page. The car will also be at the upcoming New York Auto Show.

Drivers interested in the new model will still have to wait a bit for the release, so they may want to spring for a used Chevy Malibu from New Jersey State Auto Auction in the meantime. 

Camaro’s power boost to push it past Mustang

By
Posted in Auto Industry News, Chevrolet

Throughout the history of the automobile industry, one of the top rivalries has always been the Chevrolet Camaro vs. the Ford Mustang. These two pony cars have gone toe-to-toe since the late sixties, and it doesn't appear the war will be over anytime soon.

Chevrolet revealed today that the new 2012 Camaro will be getting an 11-horsepower upgrade on the V6 model in order to increase its power past that of its rival, the Ford Mustang. However, the Camaro won't sacrifice any fuel economy to do so – still achieving 30 mpgs on the highway. The current version of the Camaro is already outselling the Mustang, so this announcement will likely have the engineers at Ford scrambling to increase the power on their model.

In addition to the performance boost, Chevrolet will also offer a "45th anniversary" edition of the car this summer. This trim level will be mostly cosmetic, with unique badges, a red and silver racing stripe, a black interior with white dashboard and more. Besides this, Chevrolet has redesigned the steering wheel and added an option rear camera.

Drivers interested in a Camaro or Mustang should realize that these cars can be a bit expensive. It might be better to search for a used model from New Jersey State Auto Auction than buy new.
 

Ford goes green with recycled carpets

By
Posted in Ford, General Auto News

Drivers who want to go green may consider purchasing a hybrid, or a fuel-efficient hatchback that gets good gas mileage. Or they might just look for a company that uses environmentally-friendly practices when building their vehicles.

Ford recently revealed an innovative idea that has helped them cut down on the carbon footprint that normally comes with building a vehicle. The automaker has revealed that in 2010, they used nearly 4.1 million pounds of recycled carpet – 154 football fields – to make the cylinder heads for vehicles such as the Escape, Fusion and Mustang.

Perhaps best for Ford, the automaker reportedly didn't incur any abnormal costs in using the material.

"We didn’t have to make compromises for this application," said engine sealing supervisor Roy Ford. "With a fixed raw material cost that delivers cost savings compared to oil, along with the green benefit, this application adds to the ways Ford is minimizing our impact on the environment."

The carpet recycling program wasn't the first green practice for Ford, which also uses soy foam seat cushions and recycled blue jeans for sound dampening material.

Drivers interested in a used Ford or any other vehicle may want to consider New Jersey State Auto Auction, which offers a wide range of cars for sale.

Toyota warns dealers of possible shortages

By
Posted in Auto Industry News, Toyota

Automakers and dealers continue to deal with the aftermath of the recent earthquake in Japan, and the latest word is that car dealers may be facing some seriously short supplies come summertime.

Up to this point, most of the news revealed by automakers has been with regards to temporary plant closings and stoppages in production. While not a good sign, these announcements did not directly confirm that dealers could expect a shortage of vehicles for the coming months. However, Toyota has released a memo that speaks to exactly that fact.

"Toyota will be producing new vehicles at significantly reduced levels," Bob Carter, group vice president of U.S. sales, wrote in a memo to dealers. "What we don’t know are vehicle production levels for May through July. The potential exists that supply of new vehicles could be significantly impacted this summer."

The memo does it make clear whether the issues are only affecting Toyota or all automakers. Toyota will lose production of at least 35,000 cars and trucks at its North American factories due to stoppages in March and April. It's unclear how many cars will be lost because of production stoppages in Japan.

Drivers interested in a used Toyota or any other vehicle may want to head to New Jersey State Auto Auction soon, before the model that they have their eye on ends up becoming tough to find.

Chevy to recall Cruze for steering wheel issue

By
Posted in Auto Industry News, Chevrolet

It seems like something out of a cartoon – a steering wheel coming off in the driver's hands while the car is still moving. Yet that's exactly what happened to one unfortunate Chevrolet Cruze driver – leading General Motors to issue a recall.

The affected driver was reportedly able to get over to the side of the road safely without getting into an accident, but the incident prompted Chevrolet to look into the matter. The automaker found that on a select number of models made at a certain factory, the wrong steering wheel had been initially attached. This issue was later corrected, but the correct steering wheel was not properly fastened in some cases.

GM claims that the recall affects approximately 2,100 vehicles, a relatively small number compared to the size of many recent recalls. However, the problem is serious enough that drivers should take notice. The recall has already begun and drivers have been notified. Dealership service staff will check the wheel and ensure that it is correctly attached to the steering column.

Keeping appraised of the latest recall and safety news can help buyers make a decision between several different models. Once they're ready to test out some vehicles, they should consider New Jersey State Auto Auction, which has a wide variety of cars for sale.

Auto loan spending up in February

By
Posted in Auto Loans & Financing News

The monthly report from the Federal Reserve indicates that more Americans are borrowing for "big-ticket" items via boat, education and car loans, while simultaneously decreasing their amount of credit card related debt.

The Federal Reserve's recently released figures, which tracked spending throughout February, are broken down into "non-revolving" and "revolving" debt. In simple terms, revolving debt is anything that's put on a credit card, while non-revolving are long-term loans other than mortgages (typically boat, education, vacation and car loans).

Non-revolving debt saw a big upswing in February, as it increased by more than $10 billion dollars. That was coupled with an $8 billion increase in January. Analysts are pointing to the brisk sales at auto dealerships as one of the primary causes, as Americans are financing their new purchases with auto loans.

On the other hand, credit card debt shrunk by more than $2 billion in February, suggesting that consumers are being careful with their finances. With the two figures combined, debt increased by 3.8 percent, the biggest swing since June 2008.

Drivers who need a car but are still being careful with their financial budgeting may want to come down to New Jersey State Auto Auction. There are a wide variety of models to choose from, and drivers can get car loan financing for the vehicle of their choice with terms that won't break the bank.