Used car chain CarMax sees profits rise

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Posted in Auto Industry News

CarMax, which operates more than 100 used car dealerships across the country, has announced that its second quarter saw a five percent rise in profits.

The company's overall revenue jumped 13 percent on the back of an 11 percent increase in used car sales. Overall, revenue rose to $2.34 billion dollars, which beat many analyst's expectations, according to Reuters. The company revealed that the positive results were a quarterly record.

While manufacturers like Toyota and Ford saw second quarter numbers slip a bit compared to the clunker-inflated sales of the same period in 2009, CarMax was able to post a profit, suggesting that more Americans may be considering used cars over new ones.

"We are especially pleased with the strength of our comparable store used unit sales where, despite our toughest comparison in recent quarters, we still delivered positive comps," CEO Tom Folliard told investors.

As more consumers look to buy used cars, drivers considering an upgrade may wish to do the same, so as not to miss out on some of the great deals being offered.

A Car for Every Lifestyle

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Posted in How To

Cars are diverse enough that when it comes to picking a vehicle, there is no clear “best.” For all the awards from major automotive sources that are handed out every year, nearly every car has strengths and weaknesses that make it suited for certain lifestyles and preferences. One driver may enjoy the off-roading capabilities of an SUV while another would rather have the crisper handling of a crossover. Another might worry about performance while parents will be more concerned with transporting their children comfortably and safely.

Whether shopping for a new or used car, what a driver ultimately wants out of a car will determine their purchase. But as subjective as buying a car can be, there are still some vehicles that are better than others at certain tasks. That’s why this year’s Motorist Choice Awards, compiled by auto analysts IntelliChoice, bucked the traditional categories like “sedan” or “crossover” and instead asked survey respondents about their favorite cars based on their lifestyle.

The awards, which have been handed out for five years, compile over 42,000 consumer surveys. This year is the first that the new categories have been introduced.

“From an emotional standpoint these awards are a reflection of how cars fit into people’s daily lives, the tasks they fulfill on a day-to-day basis and the image people have of their vehicles,” says Charlie Vogelheim, Executive Editor of IntelliChoice. “The cars in these categories not only represent tremendous value, they are also about the image you want to portray to other motorists as well.”

Fifteen categories were broken down into “popular” and “premium” choices to denote value and luxury. For example, the Hyundai Genesis was the popular choice for a “country club” car, while the Audi A6 was the premium winner.

Toyota was a big winner on the list, taking 10 of the 30 awards. According to the respondents, the Japanese automaker represented a good choice for fuel economic cars in the city. The company swept the city car category with the Toyota Yaris and Lexus LS taking honors, as well as the eco-friendly category for its Prius and Lexus RX Hybrid. In fact, the RX Hybrid won in multiple classes, also winning premium value and high tech vehicle awards.

Some drivers, however, want a bit more space with their vehicle, and this is where categories like “people mover” and “kid friendly” come into play. The Honda Odyssey was chosen as the best popular people mover, while Toyota’s Sequoia was deemed the most kid-friendly. The Mercedez-Benz GL was noted as the best premium car in both of these segments.

Consumers won’t find hard numbers on this list, but they will get some popular opinions on subjective categories like “sexy styling.” The winner in that category was the always-popular Chevy Corvette, while the Audi A5 turned heads in the luxury market.

Shopping for a deal is a smart way to buy a vehicle, but by heading to a used car dealership, drivers will likely be able to find a multitude of great prices on a range of vehicles. Once they’ve done that, they can pay a bit more attention to how that car will fit into their everyday lifestyle.

Ford to end Ranger pickup

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Posted in Auto Industry News, Ford

Ford has announced the end of its compact Ranger pickup line as it looks to streamline its fleet and jettison struggling products.

A redesigned Ranger is set to debut at the Sydney Auto Show on October 15th, but that version will not be sold in North America, the company says. The new Ranger is a larger vehicle, much closer to Ford's F-150 in size. Not wanting to cannibalize sales of its more popular pickup, Ford is moving ahead with the decision to solely offer the F-150 and its variants in the North American market, while the new Ranger will be sold worldwide.

Drivers generally choose a Ranger if they want a smaller and more fuel-efficient engine, but 2011 will see the F-150 get several new options for smaller engines that don't consume as much gas. Thus, the Ranger won't be offered past that year. Last year, Ford sold just 55,000 of the compact truck.

After 2011, it appears that drivers will have to search the used car market to find Ford Rangers. They may also want to consider used Ford F-150s, which have won several top awards and are generally considered to be one of the best pickup trucks available.

Automakers betting on smaller cars

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Posted in Auto Industry News, Ford

With the compact car segment growing and more models on the way, car buyers may notice a shift toward compact and microcars over the next few years.

As drivers worry both about the initial price of the vehicle and the fuel economy, both new and used car buyers are turning to subcompacts as an alternative to bulkier sedans, according to the Detroit News. Automakers have been happy to oblige, with a wave of small cars hitting the scene in recent years and even more to follow.

According to the news source, the "C-Segment" or compact sedan (including the Ford Fusion or Hyundai Elantra) were the dominant small cars for many years, as Americans tended to favor larger vehicles. Meanwhile, small cars that were easy to drive in the city enjoyed success in Europe and other regions around the world. Yet the "B-Segment," which now consists of hatchbacks like the Ford Fiesta, Honda Fit and Mini Cooper, was introduced to America with some success. Now, more "B" cars are on the way with "A" cars – like the Smart Fourtwo, Fiat 500 and Scion iQ – close behind.

Automakers are not yet sure how Americans will react to the shrinking interior space, but Rebecca Lindland of IHS Automotive predicted strong growth in these segments, with at least 850,000 cars per year in the B-Segment by 2015, up from the current level of 300,000.

For drivers in the market for a vehicle now, there are more than a few options in the small car category that they may find appealing, and quite a few on the way. These cars are already marked down when compared to their bigger counterparts and save drivers more at the pump, but patient consumers who wait for them to hit the used car market may be able to save even further.

The recently debuted redesign of the Ford Fiesta has been a big hit for the company, with the automaker currently struggling to keep up with demand. Reviewer's have praised the wealth of customization options in addition to its 32 miles per gallon EPA combined rating.

The Honda Fit is another example of a compact car that has enjoyed robust sales, jumping out to a clear lead in the segment sales-wise before the Fiesta came along. The car is a solid alternative and affordable option with basic features like air conditioning, power locks and a radio all available for under $15,000.

Whether it's one of the current subcompacts or one of the upcoming microcars like the Scion iQ, Fiat 500 or Chevy Spark, drivers can't go wrong with these small cars' mix of power and efficiency at a low price. 

Lincoln eyes new direction

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Posted in General Auto News, Lincoln

With Mercury set to close down in the coming months, Ford will be paying more attention to its Lincoln luxury brand as it looks to compete with top luxury automakers in Europe and Japan.

According to the Detroit Free Press, Lincoln has a new dedicated design team and will roll out seven new models over the next four years. These will be a mix of reworkings of Mercury vehicles, overhauls of existing models and brand-new cars.

The new head of product development, Scott Tobin, is a Ford veteran who will look to establish a new identity for Lincoln that is separate from Ford. The challenge for Tobin will be creating a brand that stands on its own. Many people don't think Volkswagen when they see an Audi or even associate Lexus with Toyota, yet critics have been quick to point out that many Lincolns are simply high-end Fords without their own unique powertrains.

"When people think of Lincoln, I want people to think of a very serene, beautiful vehicle that is very connected to the road and responsive," he told the news source.

The company will also try to skew younger, as research currently shows that the average age of a Lincoln driver is 61 – over a decade older than a BMW driver. Tobin will aim for the 40-50 year old range with features like touchscreen navigation and gas-electric hybrids.

Drivers shopping for a luxury vehicle may want to check out their local used car dealership, as they may be able to find a great deal on the typically expensive cars. 

Which larger sedan is right for you?

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Posted in How To, Hyundai

Full-size sedans have a storied history, with many followers preferring to sacrifice a bit of mobility for enhanced spaciousness and the versatility to fit a number of passengers comfortably. And while larger cars may have earned the "boat" nickname for many years, recent advances in technology means that these vehicles can still handle pretty well despite their wider size.

Motor Trend recently looked at three of the more popular large sedans and pitted them against each other to determine which were worth a buy and which were worth passing over. The models chosen included the Toyota Avalon, Hyundai Genesis and Ford Taurus. The test also functioned as a comparison of drivetrain styles, with the Taurus an all-wheel-drive vehicle, the Genesis with rear-wheel-drive and the Avalon with front-real-drive.

There are quite a few similarities between the vehicles – they come with similar interior features like Bluetooth connectivity, six-speed automatic transmissions and aluminum V6 engines. But that's where the parallels end, as each of these vehicles offers its own distinct ride. Drivers interested in any of these big sedans should take them all for a test drive at their local used car dealership to see which they prefer, but the news source lent its expert opinion to the equation regardless.

The Ford Taurus, while coming in third of the group, had some points that made it worthy of consideration. The group agreed that the car was the best-looking of the bunch, and its handling was more than adequate thanks to its crisp all-wheel-drive. Unfortunately, it pays the price in the muscle department, with the least amount of horsepower out of all three vehicles pulling around the heaviest frame. That meant disappointing 0-60 times and fuel economy ratings.

The Avalon was praised as being near-limo like in its comfort, with the largest back seat and best interior. In addition, it delivers a quiet ride and can hit high speeds pretty easily. But it got points knocked off for some questionable styling choices and poor handling as compared to the other vehicles. Still, the Avalon came in a close second and would probably be the best choice for long hauls.

Overall, the winner was the Genesis, offering a nice balance of comfort and performance. The news source reveals that the car's cabin was the best of the three vehicles, but recommended the Premium Package as really helping to up the ante as compared to the other cars' less desirable interior upgrades. It was also the fastest of the bunch without compromising agility.

The choice comes down to personal preference, so drivers should be sure to try all three used cars before they decide on purchasing any one in particular. 

Tom Brady gets upgraded Audi after crash

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Posted in Audi, Celebrity Auto News

New England Patriots quarterback Tom Brady recently walked away from his crash in a 2010 Audi S8, but was spotted in the new 2011 Audi A8 at a charity event.

At a recent postgame press conference, a reporter asked Brady if he had gotten a new car since the accident.

"I did, I did," Brady joked. "I just wanted to get the 2011, so I had to crash the 2010."

The Boston Herald spotted Brady at a charity skeet-shooting event where he rolled up in the new A8. The original S8 was loaned to Brady by Audi because of his work with Best Buddies International, which is sponsored by the automaker. Car blog Quattroholic contacted Audi to see if the new A8 was also a gift from the automaker, which a senior official confirmed as part of their "VIP Fleet."

Fortunately, drivers don't have to wreck their existing vehicle in order to get into an Audi. Most used car dealerships will accept trade-ins, so drivers looking to upgrade can knock some dollars off a pre-owned Audi's already lowered purchase price and drive off the lot in a sleek luxury car.

Searching for a fun vehicle

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Posted in Ford, How To

When drivers are searching for a used car, they now have access to all sorts of stats and figures on the Internet. But its hard to quantify exactly how "fun" a car is without driving it.

Although this quality is highly subjective, Edmunds' Inside Line recently listed their personal picks for the most fun vehicles. The one restriction was that the vehicle must be commonly available as a new or used car in America.

While the list had some high-priced vehicles like the Ferrari 458 Italia and Rolls-Royce Drophead Coupe, there were also more than a few choices that will fit into many drivers' price ranges, especially if bought used rather than new.

One choice that didn't surprise anyone was the BMW M3. For whatever reason, this car has become one of the darlings of the automotive press over the years, frequently earning top reviews from a wide variety of sources. Available as either a coupe, convertible or sedan, BMW's performance-enhanced version of its popular 3 Series is definitely a car to have fun in. The news source writes that "like few cars new or old, the beautifully balanced M3 has always made its operator feel like a better driver than he is."

The Cadillac CTS-V took a lot of cues from the M3 in its design, but adds a bit of a muscle car soul under the hood. Powered by a V8 engine that produces 556 horsepower, the CTS is nowhere near as subtle as the M3 – which is exactly what makes it a fun vehicle.

But for pure muscle, there's no beating the Ford Shelby GT500 Mustang. This is the highest trim level of Mustang available and it shows. In recent years, Ford has updated the vehicle's suspension and given it an aluminum-block engine to make for better handling – so now its not just a drag racing straightway vehicle, but a track car as well.

Also from Ford is something that pickup truck fans might appreciate: the Ford F-150 SVT Raptor. The Ford F-150 is a popular model, but not exactly what people would think of as a "fun" vehicle. It's great for towing or helping a friend move, but not exactly tearing up the road. That changes when a driver upgrades to the SVT Raptor performance package. This off-road monster packs a 6.2-liter V8 engine, and its large size only adds to the fun.

One of the choices wasn't actually a specific model at all, but a nondescript used car that the news source dubbed "The Beater." This car's value is that it has no value, making it perfect for taking it off-roading or pulling tricks like donuts. Even if something happens to the car, it's okay because it will never be used as a main ride.

There's no shame in wanting a fun vehicle. Drivers who aren't happy with their current non-descript vehicle may want to think about selling or trading their car for one of these models and introducing a little fun into their lives. 

Does the new Hyundai Equus live up to its luxury price tag?

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Posted in General Auto News, Hyundai

As Hyundai continues to enjoy increased sales due to its affordable lineup of cars that became popular during the economic downturn, the company has made a curious move. Rather than introduce cheaper models, the South Korean automaker went in a different direction and introduced the $67,000 Equus luxury sedan.

The release wasn't completely unprecedented for Hyundai: it had previously built the Genesis sedan, designed to compete with entry-level luxury vehicles. Yet the Equus costs nearly twice as much as the Genesis and represents uncharted territory for Hyundai in the U.S. So does it live up to its price tag?

Edmunds Inside Line seems to think so. While noting that the Equus was not particularly flashy or overly impressive in its four-star review of the vehicle, the Equus was also praised as a bargain for those who don't want to pay for a prestigious brand name yet still desire luxury performance.

The Equus isn't exactly an eye-catching vehicle, with a rather basic interior and exterior. Yet for those who only really care about what's under the hood, the news source believes that the Equus represents good value. To put that theory to the test, it stacked the Equus up against the Lexus LS 460, a popular high-end sedan priced at over $75,000.

"Ten, heck, five years ago, this would've been the start of some sort of gag comparison. 'We pit the new Hyundai sedan against a Lexus we found in a river!' And the Lexus, still full of free river carp, would probably walk away with a solid victory," begins the comparison.

Yet the Hyundai, while not outclassing the Lexus on the track, held its own. The vehicle matched the Lexus in the 0-30 miles per hour time before slowly falling behind as the distance increased. Its 385-horsepower V8 compared to the Lexus' 380-horsepower engine only outclasses it because the Equus is a slightly bulkier and roomier vehicle. The Lexus won by .3 seconds in the quarter-mile and .5 in the slalom, but drivers will have to decide for themselves if those tenths of a second are worth the extra bucks.

Add in that every new Equus comes with an iPad, and luxury owners may give the new Equus some strong consideration when it comes to purchasing a luxury vehicle. Those looking to further save may want to consider a used Hyundai Equus or another luxury vehicle, to help mitigate the high price of these expensive machines. 

Audi plans TT RS debut after successful Facebook campaign

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Posted in Audi, Auto Industry News

Audi has listened to its fans and plans to bring its new TT RS model to the U.S.

After unveiling the TT RS at the Geneva Auto Show, the German luxury automaker received considerable attention and praise from the automotive press. And no wonder – the RS, a high-performance version of Audi's popular TT coupe, packs a direct-injection turbocharged 2.5-liter five-cylinder screamer that produces 360 horsepower. Considering the light and aerodynamic style of the compact hatchback, that means a zero to sixty time of just 4.6 seconds.

But American fans ready to tear up straightaways were left disappointed, as the model appeared destined to be a European exclusive, as many cars are. Compacts generally sell better in Europe, and though the TT has done well here, the company wasn't sure if it would be welcomed with open arms.

So it turned to its Facebook fans – asking them if they wanted the TT RS in the United States. After 11,500 "likes," the German automaker buckled – the car will make its way stateside after all.

Those looking forward to the TT RS may want to wait until models begin hitting the used market, as all that power will likely come at a premium, which can be mitigated by the lower prices of pre-owned vehicles.