Car sales pump up July

The Commerce Department reports that while July saw modest growth in overall retail sales, the numbers were helped by a surge in auto and gasoline sales.

According to the report, food and retail sales, including the auto industry, were up 5.5 percent as compared to one year ago, and up 0.4 percent from June. New and used car sales, meanwhile grew 8.9 percent year-on-year, while gas sales posted a 12.2 percent growth.

When adjusted to exclude the strong showings from car-related industries, the retail sector was only up 4.9 percent yearly and 0.2 percent monthly, meaning car sales were responsible for nearly half of the monthly growth and a significant portion of the yearly growth. While most industries posted small gains, department stores notably slipped 0.8 percent as compared to 2009.

Some investors have been concerned that the economic recovery is losing momentum at a critical juncture, according to DailyFinance. While the overall numbers were slightly below expectations, many saw the auto industry’s strong showing as a good signal.

“July was a bit of a mixed bag,” Kamalesh Rao, director of economic research for MasterCard SpendingPulse, told the news source.

Nissan unveils Infiniti Performance Line

While used Nissans and Infinitis can be great buys, drivers may be a bit envious of those lucky enough to ride around in BMWs or Mercedes – especially the performance-oriented models. However, a new initiative from the Japanese automaker will soon see Infiniti debut cars closer to the turbocharged stallions of other fleets.

In recent years, luxury brands have introduced performance lines, like Mercedes’ AMG, BMW‘s M, or Lexus‘ F. These lineups represent racing-inspired vehicles that tout performance and horsepower over a nice interior or sleek design (although they frequently have those as well). Nissan’s Infiniti luxury brand will soon follow suit by debuting the IPL, or Infiniti Performance Line.

The first car out of the IPL will hit showrooms in December in the form of the IPL G Coupe. Based off an Infiniti G37, the car’s 348-horsepower 3.7-liter V6 engine will be sure to turn a few heads in the high-end class. And if it doesn’t, then the optional red interior might do the trick.

Although these cars can come with hefty price tags, drivers may be able to save off the sticker price by shopping on the used car market.

Car dealers face inventory shortages

Car dealers across the country are facing inventory shortages on some of the hottest models, as automakers struggle to meet the rising demands of consumers.

During the downturn, many dealership owners were left with an overabundance of cars for sale on their lots, as automakers still had vehicles left over from before the recession, yet few buyers interested in them. Since the car companies have slashed production at many factories, however, dealers are now facing the opposite problem – not enough vehicles to quench Americans’ increasing thirst for cars.

According to Bloomberg, car supply among the Big Three is down 30 percent at Ford, 43 percent at GM and 53 percent at Chrysler as compared to 2008. Yet analysts surveyed by the news source predict that auto sales will rise to 11.9 million vehicles this year from 10.4 in 2009.

That can only happen, however, if the automakers make enough vehicles to achieve that. Already, the major auto companies have added shifts to factories that produce the most popular models.

One dealer interviewed by the news source said he had requested 100 Ford Fusions in July and received just seven – and he owned the best-selling Ford dealership in the country.

The laws of supply and demand dictate that an inventory shortage for new cars means that prices may soon rise. Those in the market for a vehicle might be better off shopping the used car market, where they’ll also find a wider selection.

Ford tops Kelley Blue Book’s most-considered list

In a consumer survey to find what brands buyers are looking at when considering cars for sale, Ford has come out on top.

According to Kelley Blue Book, best known for providing values for used cars, Ford topped the list with 29 percent of buyers considering the automaker when purchasing a vehicle. Ford’s turnaround, bolstered by a redesign of its lineup, has clearly resonated with consumers, as it supplanted Toyota in the previous quarter and increased its lead in this one. Much of its strength comes in the SUV/Crossover segment, where nearly half of all buyers consider the brand, at 46 percent.

Toyota held on to the second spot by a slim margin, with its 22 percent share just edging out Chevy’s 21 percent. The automaker has lost its top position due to quality concerns stemming from the company’s unintended acceleration debacle.

Rounding out the top five was Honda, at 20 percent, and Hyundai, a surprise in the fifth spot with 13 percent.

Those in the market for a used car should do a bit of research in order to narrow down their own list of brands. They might even want to consider using Kelley Blue Book values to get a good price for their current car.

BMW to enter four-door coupe market

With many luxury automakers debuting four-door coupes, like the Porsche Panamera, Mercedes CLS and upcoming Audi A7, it only makes sense that BMW would follow suit when it debuts the Grand Coupe in 2012.

According to Automotive News, BMW’s development chief Klaus Draeger has confirmed that the company will put its Grand Coupe concept car into production. The four-door vehicles will be based on BMW’s 6-Series, which is set to debut a two-door model in 2011.

Draeger told the news source that the pricing and technology will be close to the 6-Series, which is expected to retail for around $93,560. The company is also considering a hybrid option.

“We are in position to bring out an additional hybrid version since we are using the same powertrain architecture as the 5, 6 or 7 series,” said Draeger.

BMW says that it is aiming the Grand Coupe at sedan fans who also appreciate the ability to get behind the wheel and drive as opposed to the “chauffeur-driven” clientele of its 7-Series.

Drivers who see themselves in a BMW don’t need to break the bank in order to achieve that dream. There are many used BMWs available that may fall into a more affordable price range.

Honda, Mercedes recalling models

Honda and Mercedes-Benz have separately announced that they will recall units of some popular models. The announcements affect some new and used Mercedes and Honda vehicles.

Honda Accords, Civics and Elements made between 2003 and 2004 may have a problem with the ignition. The automaker says that a pin within the keyslot can become deformed, which could possibly allow the key to be taken out while the car is not in park, which would cause the vehicle to roll away until the driver was able to reinsert the key and get the car under control. The problem is expected to affect nearly 385,000 vehicles.

New versions of the Honda Element, made in 2010, may have a problem with the automatic shift lever, which may become disconnected from the transmission and not allow the driver to shift gears.

Mercedes, meanwhile, has realized that a protective grille placed over turn signals in 2002-2010 models of its G-Class may not comply with federal standards, making the lights difficult to see.

Those driving a used Honda or Mercedes should make sure that their vehicle is not listed in the recall.

The best looking used cars

While what’s under the hood is certainly integral in deciding which used car to buy, the aesthetics of a vehicle are also an important consideration. Many cars in the same class are very similar in terms of the parts inside, so how a car looks can be an important tiebreaker for car buyers.

With that in mind, MSN Auto recently listed some of the best cars at various price points in terms of aesthetics. According to one designer, there are various factors that go into making a car aesthetically appealing.

“A good-looking vehicle is a good-looking vehicle, whether it’s a $2,500 Tata Nano or a $220,000 Aston Martin Rapide,” Stewart Reed, chairman of the transportation design department at the Art Center College of Design, told the news source. “You may not consciously know why it looks so appealing, but a good design has a sense of surface refinement and authority. The light and reflections play over the surfaces, and that’s what people respond to.”

The winner for a cheap car with an appealing design was the Nissan Cube, priced around $15,000. The car’s boxy design makes it stand out from the pack of compact sedans and hatchbacks typically found in the price range. The car also features a sleek wraparound rear window. Inside, buyers can select from 20 different types of lighting colors in order to further customize the car.

Nissan had another winner a bit higher up in the price range, at $35,000. The unique design of the 370Z Coupe beat out strong contenders from Porsche and other luxury brands in the eyes of the news source.

“It’s not like other cars,” said Reed. “It has its own sense of sculpture inspired by a lot of things in popular culture, from stealth aircraft to motorcycles to Transformers.”

Both Nissans that were selected buck the classic trends of automobile aesthetics. Yet some drivers want a classic ride. In that sense, the BMW 335i convertible is the car that many buyers will gravitate toward in the $45,000 price range. Its sleek design is eye-catching while also calling back to sports cars of the past.

When a driver thinks aesthetics, station wagons don’t normally come to mind. But the Mercedes E350 wagon’s elegant design separates itself from the “woody” wagons of yesteryear – although it will set drivers back $60,000.

“It’s not the historic, stigmatized family wagon that was the precursor to the minivan,” said Reed. “It’s a sporty, sophisticated wagon.”

Although some of these cars are a bit on the expensive side, drivers can save a bundle by shopping on the used market. Those who want to look good while riding around may want to consider some used BMW, Mercedes and Nissan models while shopping for their next vehicle.

Toyota’s unintended acceleration problems help driver escape prison

Toyota has come under fire for its unintended acceleration problems, which the National Highway Traffic Safety Administration estimates may have contributed to more than 80 fatalities on the road. The new findings about the issues have helped exonerate one man who was sentenced to jail for vehicular manslaughter.

MotorTrend reports that Koua Fong Lee was behind the wheel of a 1996 Toyota Camry when it struck an Oldmosbile Ciera from behind, killing the three occupants inside. Lee repeatedly testified during his trial that although he stepped on the brakes, the vehicle would not slow or stop. Lee was eventually convicted and sentenced to an eight year prison term

In light of the problems with Toyota vehicles, District Judge Joanne Smith recently ruled that Lee should be allowed to go free. The district attorney has announced she will not challenge the ruling, and at least one member of the victims’ family said they were happy that Lee was being released. The family has also filed a suit against Toyota.

Those in the market for a used car shouldn’t necessarily shy away from used Toyotas. With a little research, drivers can find which models are unaffected and possibly get a great deal, since the value of Toyota cars has dipped because of quality concerns.

AP: Scion xD is overlooked

When buyers are looking at a used Toyota, they often go for a Corolla or Camry. Yet many drivers forget about Toyota‘s youth-oriented Scion brand, which features a few vehicles that drivers might want to give a second look.

Scion is usually identified with the boxy-looking xB, one of the first modern cars on the road that embraced a squared-off look. But drivers who aren’t fans of that aesthetic and are in the market for a used car might want to consider the xD.

According to the Associated Press, buyers have continually overlooked the car, and it’s not clear why. The small five-door hatchback boasts more horsepower than its competitors in the segment and Consumer Reports recommended the car as eminently reliable. Still, despite acclaim that would make it a hit under other brands, the xD is Toyota’s slowest selling non-luxury car.

The news source reports that the car is great for city driving, gets 30 mpg, and has a number of seat configurations that its major rivals do not.

Drivers who are buying a used car might want to consider trying out a Scion xD and seeing how it compares to other cars in its class, like the Honda Fit or Nissan Versa.

Mustang helps Ford post sales increase

Strong sales of Ford‘s mustang and other models have helped the automaker post a rise in July sales as compared to 2009.

Ford is reporting a 3.1 percent rise in auto sales for the month of July. Ford’s main brand was up 8.1 percent while its luxury Lincoln line bounced back 16.3 percent. The company’s Volvo brand, which it recently sold to China’s Geely, was down 33 percent. The soon-to-be phased out Mercury brand dragged the numbers down with a 31 percent loss. Overall, Ford has proven to be one of the brands heading in the right direction as the recession recedes, with an increase of 24 percent total as compared to the first seven months of 2009.

Though the automaker struggled through 2009, July’s numbers were slightly inflated by the government’s Cash for Clunkers program.

Ford’s new Mustang, introduced this year, posted a 12 percent increase in sales. In addition, its redesigned Taurus doubled sales over the model’s previous iteration.

One of the reasons to buy a used Ford Mustang is that the car may end up appreciating if drivers keep it in good condition. There are a slew of auto enthusiasts who specifically value Mustangs, so investing in one is never a bad purchase.