Auto loan delinquency rate stablizes

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Posted in Auto Loans & Financing News

The auto loan delinquency rate, which tracks loans with payments that are more than 60 days late, remained relatively flat in the fourth quarter of 2010, although the figure was well below that of the same period in 2009.

According to TransUnion, one of the three major credit bureaus, 0.59 percent of all car loans were delinquent in the fourth quarter in 2010, a very slight increase from the 0.58 percent in the third quarter. However, the rate was still a 27.2 percent improvement over the fourth quarter of 2009.

"As expected, the national delinquency rate changed very little during the fourth quarter as this period typically exhibits the least amount of seasonality," said Peter Turek, automotive vice president for TransUnion. "The good news is that TransUnion expects national auto delinquency rates to continue to be well below the peak of 0.86 percent – a rate experienced during the heart of the recession in the fourth quarter of 2008."

The credit bureau predicts that the figure will remain relatively stable throughout 2011, and won't approach the levels seen during the recession. Specifically, the company is forecasting a rate of nearly 0.48 percent for around mid-June, before jumping back up to 0.56 before the end of the year.

Drivers interested in financing their new or used vehicle purchase may want to visit New Jersey State Auto Auction, which offers car loan solutions for all buyers.
 

Ford to recall more pickup trucks

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Posted in Auto Industry News, Ford

Ford is again recalling a slew of pickup trucks, just days after the automaker was forced to call back many used Ford F-150s for a problem related to airbags.

The new recalls include 23,688 Ford Rangers from 2010, specifically those equipped with the 2.3-liter engine. In addition, nearly 15,000 F-150, F-250, F-350, F-450, F-550, Edge and Lincoln MKX models are being called back for a second time.

For the Rangers, the issue appears to be with the fuel lines. The automaker says that a protective layer near the lines may not properly be installed. Eventually, this could potentially cause a fuel leak, although the company has received no reports of fires thus far.

The second grouping of vehicles are related to issues with the body control module (BCM). Ford believes that an electrical short within the BCM could potentially cause a fire – but again, no problems have been reported. A similar subset of vehicles was recalled in December, but the automaker believes that an issue with the vehicle diagnostic systems may have caused some trucks to be missed.

Last week, Ford announced a recall for 135,000 F-150s due to an airbag that could inadvertently deploy. The National Highway Traffic Safety Administration previously requested Ford to recall 1.3 million pickup trucks, but the automaker claimed only 135,000 were affected. The two groups are currently determining whether the recall was sufficient or if more action needs to be taken.

Relaxed auto financing spurring car sales

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Posted in Auto Loans & Financing News

The auto industry is quickly recovering from the crippling effects of the recession, and one of the key components in the turnaround is the increase in the availability of car loans.

According to the New York Times, new car sales rose 11.4 percent in 2010, with used cars similarly seeing strong sales. The first two months of 2011 have been even stronger for dealers and automakers.

One of the most marked differences between 2010 and 2009 is the availability of auto loans, especially to buyers with a bad credit history. CNW Market Research data shows that 859,000 vehicles were sold to subprime borrowers in 2010, which represented a 60 percent increase over 2009, when lenders were much less willing to take risks on borrowers.

Now, with banks and dealers in a stronger financial position, many lenders are allowing for bad credit loans again. And the availability of loans is in turn facilitating transacations at the dealership.

"We had people coming to our showrooms that wanted to buy, but we couldn't get them financed," Michael Maroone, CEO of the dealership chain AutoNation told the news source. "We are now getting them the financing."

Drivers who are interested in purchasing a new or used car should consider New Jersey State Auto Auction, where they can choose from a wide selection of vehicles and get financing for their purchase.
 

Consumer Reports releases Automakers Report Card

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Posted in Ford, General Auto News

Consumer Reports has revealed the results of its Annual Automakers Report Card, and while the top and bottom spots remained the same, there was a bit of a shuffle in the middle.

Honda once again topped the list, with the automaker scoring an overall rating of 74. The ratings are compiled after the magazine tests each vehicle at nearly 50 different data points. The scores for each vehicle are then averaged across the entire fleet, giving a ranking for the automaker as a whole.

Despite not nearly generating the sales interest that the major brands do, Subaru was able to earn second place with a score of 73. That beat out the largest automaker in the world, Toyota, which scored a 71 overall.

The most improved automaker was Ford, with the company noting that the brand had made some major jumps in reliability. The manufacturer scored a 67, good enough for fifth place on the report.

Other domestic automakers didn't fare so well. Chrysler was once again in last place with a score of 43, while General Motors was next-to-last at 56. Despite this, the guide did have a few encouraging words, noting that many of the companies' new models were promising, but the older cars dragged their average down.

Drivers interested in any of these brands may want to pay a visit to New Jersey State Auto Auction, where they'll find a wide range of both new and used cars for sale at affordable prices.

Sedan version of Hyundai Genesis Coupe in the works?

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Posted in Auto Industry News, Hyundai

Hyundai has announced that it may be expanding its luxury offerings by debuting a new sedan based off of its current Genesis Coupe.

According to Automotive News, the South Korean automaker is looking to create an entry-level sedan that could compete with vehicles like the BMW 3-Series, Audi A4, Mercedes-Benz C-Class and Acura TL. The Genesis Coupe has been a successful luxury vehicle for the company, so the automaker is currently considering a model that is based off the car's sharp styling cues.

"The Genesis Coupe is in the same segment, really, as the 3-Series coupe," Hyundai CEO John Krafcik told the news source. "One of the things we're thinking is: Should we do something that's a sedan version of that?"

Although only recently talked about, unidentified sources with knowledge of the automaker's plans told the news source that the car had been in development for some time now, dating back to 2006. Hyundai execs call the vehicle the "RK" internally.

Those interested in a used Hyundai or any other vehicle may want to seek out an online third-party provider of auto financing. These companies can allow drivers to negotiate with dealers using cash, which puts them in a stronger position when it comes time to talk about the price of a car. 

Top choices for off-roaders

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Posted in Ford

In the early part of this decade, consumers looking for an SUV would have had no trouble finding a wide array of options to choose from. While that's still somewhat true today, many automakers have shifted away from traditional SUV models in favor of more fuel-efficient and environmentally-friendly crossovers.

Although crossovers are popular, fans of off-roading vehicles may bemoan the lack of "utility" in many modern sport utility vehicles. Crossovers are less about off-roading and more about family road trips.

However, full-size SUVs have been making something of a comeback in recent years, as many automakers have reported increased sales for large vehicles in recent months. With that in mind, MSN Autos recently profiled some of the top models – both used and new – that can still conquer the toughest terrain.

The Ford Expedition is one of the classic SUVs that was around during the boom of the late nineties, but drivers might not recognize the vehicle now thanks to all the upgrades that Ford has made. This massive truck has proven its towing capacity in the past and obviously features four-wheel drive to handle any kind of off-roading adventure. With power from a 5.4-liter V8 cranking out 310 horsepower, it's easy to see why this made the news source's list.

Another classic model with a fresh facelift is the Jeep Grand Cherokee. The SUV was recently updated, although previous versions are quite versatile as well and can likely be found on the used car market at a discount. The Jeep brand is basically synonymous with off-roading, and the Grand Cherokee is the flagship. However, those who don't want to spend the money may be interested in something a bit smaller, like the Wrangler, which also made the list.

A similar budget option is the Nissan Xterra. These SUVs can typically be found for under $30,000, but still offer drivers plenty of value when it comes to off-roading. The news source recommends the Pro-4X trim level, which features rugged essentials like skid plates, Bilstein shocks and BFGoodrich off-road tires.

Finally, the Toyota 4Runner is still one of the best SUVs on the market. This midsize SUV strikes a nice balance between price and features. To top it off, it was recently redesigned just last year, and the news source notes that it now features a whole host of electronic aids to help handle tough terrain.

Drivers interested in purchasing a rugged off-road vehicle may want to consider New Jersey State Auto Auction, which offers a wide range of cars for sale at affordable prices. 

Analysts predict February sales gains

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Posted in Auto Industry News, Chevrolet

It wasn't just couples who were in a romantic mood in February – the auto industry got some love, too.

Most major analysts are predicting significant sales increases for the industry in February, as consumers helped automakers post some big gains. J.D. Power and Associates announced a forecast of 917,000 total units, or a 17.3 percent increase over February 2010. Edmunds was a bit more optimistic, with 937,000 units, or a 20.1 percent gain. Those figures also represent an improvement over January.

Both analysts acknowledged that the month started off slow, with J.D. Power attributing the sluggish sales to the fact that much of the country was pounded by snowstorms. Edmunds said that traffic began to pick up over President's Day weekend, however, as dealers held special sales to entice buyers.

Among automakers, GM is forecast to have the biggest gains by far. Edmunds pegged the company as posting a 37 percent increase year-on-year, with a 9 percent rise over January. Other major manufacturers expected to post above-average sales figures include Toyota (29 percent) and Nissan (27 percent).

It's a great time to buy a vehicle, but drivers who want to get the best deal while browsing a wide selection should consider paying a visit to New Jersey State Auto Auction.

The secrets of resale value

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Posted in How To

Even novice car buyers have heard the term "resale value" over and over again. In short, a car with good resale value will eventually command a higher price when you eventually decide to trade in your vehicle. However, what exactly goes into determining a car's resale value?

The quick answer is "everything." Nearly every detail of a car goes into determining its resale value. Many car dealers use pricing guides, like Kelley Blue Book (KBB), to get a rough estimate of the starting point for a negotiation. However, everything from the make and model to the service history to even the color can cause that initial value to fluctuate wildly.

It's also a price that's open to negotiation. Some dealers will offer you what initially sounds like a great price for your trade-in. Then they'll make that money back by playing tough on the negotiations for the new car. Others will do the opposite – seemingly give you a break on the car being sold but lowball you on the trade.

So, how can buyers pay attention to this very important value and turn it so it works in their favor? FoxBusiness talked to Mark Scott, a senior manager at AutoTrader.com, for some of his tips.

The biggest factor is likely the make and model. Some brands tend to hold their value well over the years, while others simply don't. The winners and losers in resale value are largely based on consumer taste at the time and can change quickly. Every year, KBB posts some of the top models that it predicts will hold resale value well. That's a good starting place for those looking to maximize their resale value.

Other factors, like color, are also important. You might love your bright pink car, but it's unlikely that many other drivers will, killing the resale value.

But what if you already have the car? Unfortunately, you can't change the make, model or color. Still, you can maintain your resale value simply by maintaining your car. An accident-free record and no major service incidents go a long way. As does avoiding things like aftermarket parts and accessories.

Timing and location are also big factors. As a general rule, dealers are more interested in trades when they're less busy. And geography is important too; a dealer in snowy Minnesota isn't likely to be too interested in your rear-wheel drive convertible in the middle of winter.

Finally, it's important in the negotiation to handle the trade and the buying of the new car as separate transactions. Doing so can ensure that you get a fair price on both. Drivers looking for a good deal on their trade-in may want to consider New Jersey State Auto Auction, which accepts all trades and offers a wide variety of new and used cars for sale. 

Ford recalls F-150s under government pressure

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Posted in Ford, General Auto News

Ford has announced that it will recall 144,000 F-150 pickup trucks from the 2005 and 2006 model years for an issue in which the airbag may deploy without cause.

In November 2010, the company was made aware of the issue in a memo from the National Highway Traffic Safety Administration (NHTSA). The NHTSA requested that Ford look into the issue after it received 238 separate complaints that resulted in 77 injuries.

The government agency recommended that Ford recall all 1.3 million trucks manufactured between 2004 and 2006. However, Ford has limited the recall to a subset of that. According to the company, all of the incidents could be traced to a specific shift at the plant in Norfolk, Virginia. The automaker believes that an airbag wire may have been installed incorrectly, making it liable for a short circuit.

When the vehicle is turned on, it can cause the wire to accidentally trigger the airbag. That means that most of the cases occurred in driveways while the car was stopped, although the NHTSA claims that a few were on public roadways.

The NHTSA has said it will investigate the matter and determine if the limited recall will adequately address the issue.

Drivers interested in a used Ford F-150 may want to avoid the 2005 and 2006 model years for the time being, but they'll be able to find a wide range of other pickup trucks at New Jersey State Auto Auction.

Chevy Cruze to get diesel option

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Posted in Chevrolet

General Motor's new Chevrolet Cruze just had a successful launch a few short months ago, but it looks like GM isn't content to just rest on its laurels. A new report claims that the car will be offered with a new 2.0-liter diesel engine.

According to GM Inside News, an independent website, sources at the Lordstown, Ohio, factory revealed that workers have been told that they will begin building a diesel-powered Cruze for the 2013 model year.

In addition, test models of the Chevy Cruze have reportedly been spotted on the streets of Detroit, with the cars sporting a "diesel" badge on the rear.

If true, the report is not all that surprising. According to the news source, the Cruze is GM's first truly global vehicle, and is sold in more than 60 different countries. Many of those countries have both gas and diesel-powered versions available for purchase.

A 2.0-liter diesel engine is offered on one version of the Cruze in Australia. That model reportedly gets approximately 34 miles per gallon while producing 147 horsepower and 235 lb-ft of torque.

Drivers interested in a used Chevrolet or any other vehicle may want to check out New Jersey State Auto Auction.