Mercedes to open driving school in U.S.

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Posted in General Auto News, Mercedes-Benz

Mercedes-Benz has announced plans to open a new driving school in the U.S., citing high accident rates among teen drivers as its primary concern.

The automaker previously launched a driving education program for the U.K. in 2009, which was by all accounts successful. Mercedes claims that drivers enrolled in their school passed their driving test on the first try at nearly double the rate of those who did not.

Now, the company is looking to bring the program to the U.S., with the aim of decreasing the rate of teen accidents and thus increasing auto safety. The company believes 90 percent of accidents are due to human error, and points to studies that say teen drivers are four times as likely to die in an accident than adults.

"Despite the dramatic changes in vehicles, highways, and the driving environment over the past 60 years, driver education remains relatively unchanged in the U.S.," said Alexander Hobbach, Senior Manager, Daimler AG. "The skills required to simply get a license do not fully prepare young drivers to meet the demands of the road. Mercedes-Benz recognizes this issue and as a result is creating an educational program for the U.S. that is based on the best teaching methods and tools available."

Drivers interested in a Mercedes or any other vehicle may want to check out New Jersey State Auto Auction, which offers a variety of new and used cars for sale at affordable prices.

What the GM-Ally split means for borrowers

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Posted in Auto Loans & Financing News, Chevrolet

General Motors' recent announcement that it will be selling more than $1 billion dollars worth of preferred stock in Ally Financial is the latest development in a tangled web of mergers and acquisitions that has left the auto lending industry quite different from what it was years ago. This can be a bit confusing for borrowers, so its worth sorting out where all the loans are coming from.

The first step to understand is that automakers frequently use what is known as "captive lending arms." These are essentially subsidiary companies that solely focus on auto financing rather than the production and sale of vehicles. Perhaps the largest and most famous of these was GMAC, which handled all of the in-house loans for GM customers. Many automakers can actually make more money off of loans than they can selling vehicles, and for this reason its highly desirable for an automaker to own a lending company.

GMAC was sold to a group of investors in 2006, but GM retained a share of the company and they continued to work closely in the lending business. After the economic collapse took its toll on the automotive industry, both companies accepted bailouts from the federal government. GM was able to bounce back from this disaster more quickly than GMAC, which later rebranded itself as Ally Financial.

With the credit market thawing and more automakers beginning to offer car loans to drivers with subprime credit histories, GM was in need of a captive lender again. Some analysts thought that the company would look to reacquire Ally, but instead the automaker acquired independent lender AmeriCredit in a deal valued at $3.5 billion. This left the company's partnership with Ally somewhat in jeopardy, as the financier continued to provide loans at GM dealerships nationwide.

The most recent news is that GM is selling off all of its preferred stock options in Ally, and appears to be fully supporting AmeriCredit as the new lender of choice. GM still owns approximately 10 percent of Ally through common stock, so it's unlikely that their partnership is completely over. The use of AmeriCredit is somewhat preferable for borrowers with bad credit scores, as the company has historically been more open to subprime lending than Ally has.

Despite the split, Ally will likely continue to be a major force in the auto lending market. The company recently reported its fourth-straight quarterly profit, and appears to be looking to launch an initial public offering and pay back the government later this year.

Of course, borrowers should research all options when looking to acquire an auto loan. Banks, credit unions and dealerships may all offer terms that are preferable to the loans from the major automakers.
 

Chevy Colorado will come to U.S.

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Posted in Auto Industry News, Chevrolet

Chevrolet has unveiled its new compact Colorado pickup truck ahead of its official debut at the Bangkok International Auto Show later this week, confirming that the model will be coming to the U.S. in the process.

The compact pickup truck, once a viable market segment, is all but dead in the U.S., as American buyers tend to prefer trucks that are large and in charge. However, after Ford announced that it will be making the Ranger for foreign markets only, Chevrolet appears primed to step into the vacuum and snatch up any consumers who still prefer the smaller trucks.

"There's a market for compact pickups in America," said Haykel Ammari, general manager of a Chevy dealership just outside Boston. "It may not be the biggest segment in the country, but there are drivers out there who need the versatility of a truck but don't need the fuel costs of a full-size model."

International demand for the models remains strong, which perhaps explains Chevrolet's decision to debut the truck in Thailand rather than the U.S. A version of the GMC Canyon based on the same platform of the Colorado is also rumored to be in the works, although it hasn't been confirmed yet for U.S. shores.

Drivers interested in a new or used Chevrolet Colorado may want to visit New Jersey State Auto Auction, where they can find a great deal on the truck and many other models.
 

Earthquake leading to high prices on Prius, Fit

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Posted in Auto Industry News, Toyota

The fallout from the Japanese earthquake and subsequent tsunami is still unfolding, but it already appears that the quake will have major effects on the auto industry in America.

Despite many of Honda, Toyota and Nissan's Japanese factories operating at limited capacity, it's unknown when the country's shipping will be straightened out, nor whether maller parts suppliers will be able to rebuild. For the time being, many are predicting a small shortage on some popular models exclusively manufactured in Japan, such as the Toyota Prius and Honda Fit.

That means that many buyers are accelerating their purchase timelines and making offers on vehicles now, leading to a spike in prices. These cars were already in high demand thanks to the recent increase in fuel costs, but the situation in Japan is complicating matters by leading to dealer shortages and high prices on the remaining models.

Fortunately, those considering these models could be in luck – if they have a trade-in. Brian Allan, general manager at Galpin dealerships in Los Angeles, told USA Today that many dealers are looking for used cars right now since the recession cut down on the number of trade-in vehicles, which means higher prices for trades can take some of the sting out of the price increases.

Drivers who are interested in smaller, fuel-efficient vehicles will have a decision to make: act soon before prices really skyrocket or hold off until the hubbub dies down. Either way, they might want to consider shopping at New Jersey State Auto Auction for deals on any type of vehicle. 

AAP revises car seat recommendations

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Posted in General Auto News

When a couple learns that they're going to be parents for the first time, they'll be suddenly faced with a whole range of new concerns and considerations. One of the more important ones is transportation – new families typically want larger vehicles that offer good safety protection.

While selecting a safe model is important, choosing the right type of car seat is equally critical. Many go by the American Association of Pediatrics' (AAP) recommendations on car seats, and which types are appropriate for certain age groups.

For several years, the AAP said that rear-facing seats were best for children up to one year old. Now, the group is revising that statement, advising parents to keep their children in rear-facing seats up until the age of two, at which time it's fine to switch to a front-facing sit-up model.

The group says that new studies were able to demonstrate how rear-facing seats better protect children by distributing the impact evenly over their body, lessening the chance for serious injury in critical areas like the neck, head or spine.

New couples in the market for a vehicle may want to consider New Jersey State Auto Auction, which features a wide range of safe and well-reviewed models at prices that won't break the bank.

Japanese suppliers affected by earthquake could slow U.S. auto production

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Posted in Auto Industry News, Chevrolet

General Motors has announced that it will be temporarily halting production at its Shreveport, Louisiana, factory due to a parts shortage caused by the recent earthquake in Japan.

When the earthquake and tsunami hit, many auto industry analysts predicted that the quake could have dire effects for Toyota, Nissan and Honda, as the three automakers all source parts from various suppliers in Japan. The current status of those suppliers, especially the ones located in the areas badly affected by the blast, is currently unknown.

Yet many didn't predict that the effects could have far-reaching consequences for the industry as a whole. General Motors actually sources many of its parts from Japan, and with the country practically crippled in the wake of the disaster, GM was forced to shut down production at the Louisiana plant, which produces the GMC Canyon and Chevrolet Colorado pickup trucks.

GM isn't likely to be the only company affected. It's also believed that Ford sources a variety of parts from Japan, and the automaker has said it is monitoring the situation closely. Honda, Nissan and Toyota could be forced to slow or halt production at U.S.-based plants as well.

It's unknown how much this will affect production totals for the year, but it's not unreasonable to assume that some popular models may fall victim to a shortage. Drivers interested in making a purchase should head to New Jersey State Auto Auction before the problems become widespread and prices begin to spike.

Lincoln tops JD Power dependability study as industry gains overall

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Posted in Auto Industry News, Lincoln

JD Power has released the result of its annual dependability survey, and in a somewhat surprising turn of events, Ford's luxury Lincoln brand ended up on top.

Lincoln has never topped the survey over the 21 years its been run, but the marquee was able to edge past Lexus. JD Power reported that Lincoln owners tallied an average of 101 maintenance problems per 100 3-year-old vehicles, while Lexus had an average of 109.

Jaguar and Porsche grabbed third and fourth place, respectively. Toyota was rated as the most dependable non-luxury brand, with an average of 122 problems per 100 vehicles.

Overall, the industry turned in its best year ever for the survey, with automakers averaging 151 problems for every 100 vehicles. That was down from recent totals of 155 in 2010 and 167 in 2009.

"Automakers, as a whole, have made significant improvements in reducing traditional problems" the past several years, claims David Sargent, vice president of auto research for JD Power.

Still, while the industry is doing well, some companies were not up to par. The Chrysler group fared particularly poorly, with Ram trucks at 173 problems and Dodge, Chrysler and Jeep all over 200.

Those looking for a dependable vehicle at an affordable price may want to check out New Jersey State Auto Auction, which offers a variety of cars for sale at affordable prices. 

2013 Shelby Mustang could top 600 hp

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Posted in Ford, General Auto News

There's a reason the Ford Mustang is named after a horse: it's packing plenty of ponies under the hood.

Whether its the Mustang or its chief rival the Chevrolet Camaro, drivers can bet that they'll be getting lots of horsepower out of the massive engines that these cars pack. That goes double for the special editions – with the recently revealed Camaro ZL1 producing a reported 550 horsepower.

Not to be outdone, Ford's next version of the Mustang's Shelby GT500 special edition may be upping the ante even more, according to unidentified insider sources that spoke to Car and Driver. The entire Mustang line is due for an overhaul for the 2013 model year, and the new Shelby will reportedly be coming with a 5.8-liter turbocharged V8 engine that could go as high as 620 horsepower.

The news source believes the price will approach the $60,000 mark, which would make it one expensive Mustang, considering that the V6 editions currently retail for less than $30,000. In addition, the bodywork will likely be restyled to be less retro and more modern.

Drivers interested in a Mustang may want to check out New Jersey State Auto Auction, where they can find an affordable used model. They'll likely need to start saving some green now if they plan on upgrading to the new Shelby in a few years. 

New Hyundai Elantra GLS could threaten Honda’s Civic dominance

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Posted in General Auto News, Hyundai

The Honda Civic has long been the reigning king of small sedans, in both sales and critical acclaim. Yet South Korean automaker Hyundai has been making waves in recent months with its well-designed vehicles that often come in much cheaper than the competition.

According to CNET, the Civic "should definitely be afraid" of the new Elantra GLS. The news provider was able to get some one-on-one time with the new vehicle, and they came away thoroughly impressed.

Hyundai markets the new Elantra as "the compact car other compact car makers don't want you to know about," and it seems like there's something to the hype. In terms of performance, CNET only preferred the Honda's handling to the Hyundai. The Elantra beats its Japanese counterpart in both pure power and fuel economy. Plus, it comes with a 10 year/100,000 mile warranty, which is the best in the industry.

The interiors of the two vehicles are pretty similar, although the Elantra does have an option for a rearview camera, which isn't offered by Honda.

As tested, CNET reports that the Elantra GLS would have ran them about $20,230 – approximately $3,000 less than a similarly-equipped Civic. There's no doubt that the new Elantra will give drivers great value, but those interested in the vehicle may want to wait until it hits the used car market before committing to a purchase so that they can save even more.
 

BMW pairs 650i coupe and convertible

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Posted in BMW

BMW has revealed that its new 650i convertible will soon be followed by a hardtop version later this year.

The 650i convertible has already been unveiled, but those who don't like the feel of the wind in their hair (or the premium that they have to pay for the privilege) were likely disappointed that there was no mention of a hardtop option. Now, the German automaker has announced that the 650i coupe will be hitting showrooms this fall. The convertible model is slated for a late spring release, just in time for drivers to take full advantage of the car's strengths during the summer.

Both versions of the 650i will be using BMW's twin-turbocharged 4.4-liter V8, a monster of an engine that produces 400 horsepower and 450 lb-ft of torque. That kind of power means the cars can go from zero to 60 in less than 5 seconds – a time when drivers may appreciate the shelter of the coupe edition as opposed to the whipping wind felt in the convertible.

No official price point has been unveiled, but MotorTrend puts the ballpark figure at around $90,000. Those interested in the vehicle might want to wait for a price drop when the vehicle hits the used car market.