Year-end clearouts driving auto sales

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Posted in Auto Industry News

As dealers begin to ship out the 2010 models in order to make way for the redesigned 2011 ones, many buyers are taking advantage of the cheap cars for sale and driving up auto deliveries, according to a new report.

Analysts surveyed by Bloomberg believe that July will be the best month for auto sales since August of 2009, when the Cash For Clunkers program heavily contributed to a spike in new and used car sales. On average, those polled predicted 11.9 million deliveries for the month of July, a 5.3 increase over the previous year. Full results are expected to be announced this week.

And according to TrueCar.com, the industry is helping by offering its largest discounts in years. This year’s closeout prices are 3.8 percent cheaper than 2009, meaning it’s a great time to buy a car.

Cars like the new 2011 Ford Explorer are expected to make the 2010 models fly off the lots. Many of these models then make their way into the hands of used car dealers, where they can be found for even cheaper than the new car prices, even at a discount.

Used Ford owners get engine boost

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Posted in Ford, General Auto News

Many drivers opt to increase their car’s power through aftermarket parts and accessories. But few get an offer from the dealer to come back and get their car upgraded for free.

That’s exactly what Ford is offering owners who bought the Ford Super Duty pickup truck this year. The current engine in the Super Duty is a 6.7-liter Powerstroke V-8 turbocharged diesel, but its numbers were just below the best in its class.

However, Ford engineers have figured out a way to upgrade the engine in order to give it class-leading numbers. Now, Ford is thanking customers that bought the vehicle by offering that upgrade free of charge, according to USA Today.

By dropping the car off at the dealer, drivers will get 65 more foot-pounds of torque and 10 extra horsepower, pushing the car up over 400. The upgrade offers will start this month and continue into the next year.

The upgrade also affects any unsold Ford Super Duty cars for sale that dealers have on the lots, as well as trucks currently in production.

Drivers who buy a late-model used Ford Super Duty without the upgrade can know that they’ll have a bit more power once they take it by a dealer.

Honda reports record profit

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Posted in Auto Industry News, Honda - DO NOT USE

Honda is reporting that it recorded a record-setting $3.2 billion in profits for the second quarter of 2010, causing it to raise its financial outlook for the entire year.

The $3.2 billion net income was 36 times greater than 2009’s total of $86 million in profit. In general, Honda is in good shape, posting 5 quarters in a row of growth. The automaker’s continued success has caused it to revise its total outlook for the 2010 financial year to $5.2 billion, eclipsing the predicted value of $4.6 billion posited by an average of analysts surveyed by Reuters.

While all auto companies struggled during the recession, Honda was able to avoid losses, largely because its fleet of smaller vehicles continued to perform well. The company is currently the second-largest Japanese automaker, still trailing its beleaguered rival Toyota and neck-and-neck with third-place Nissan.

As the country comes out of the economic recovery, carmakers are beginning to increase prices again. Drivers who are considering a purchase may want to opt for a used Honda over a new one in order to save some green.

Market possibly shifting toward SUVs again

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Posted in Auto Industry News, General Auto News

New data is suggesting that the SUV might not be as dead as many think, as the segment’s growth outpaced that of smaller cars for the first half of 2010.

According to trends analyzed by Autodata and reported by USA Today, SUV sales actually increased at a faster rate than that of more compact and fuel-efficient compact cars. The data shows that SUV sales grew at a rate of 19 percent as compared to the auto industry’s overall rate of 17 percent and compact cars’ 14 percent growth.

While compact cars still outsold SUVs by a tidy margin – 974,000 to 121,000 – the data indicates that many may be ready to get back into an SUV.

The news source pointed to several potential reasons for the possible shift, citing a recovering economy, lowered fuel prices and the addition of fuel-efficient crossovers to the SUV fleet.

SUV fans may be able to find deals on classic SUV models, like used Ford Explorers, by visiting their local auto auction, as many have opted to trade the vehicles in in favor of crossovers.

Unique Mustang to be auctioned off for charity

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Posted in Ford, General Auto News

A unique Mustang inspired by the Lockheed SR-71 Blackbird spy plane will be auctioned off for charity at an aviation event in Oshkosh, Wisconsin.

According to the Detroit Free Press, the Experimental Aircraft Association AirVenture aviation show asked Ford to design a special vehicle in order to raise money for EAA Young Eagles, a foundation that provides educational flights for children.

The automaker obliged, and designed a one-of-a-kind iteration of its 2011 Mustang model. The unique vehicle includes a supercharger that boosts its V8 engine up over 500 horsepower, special performance wheels, and a lower ride height. In addition, the sleek black paintjob and “fuel streak” racing stripes, calls to mind the classic stealth plane.

“The difficulty is trying to honestly make the car look like the plane has sort of wrapped itself around the car,” Mustang chief engineer Dave Pericak told the news source. “Anybody can just bolt things on and make it gimmicky. You want to really make the car become the aircraft.”

It’s unlikely that many buyers will be able to afford the unique vehicle’s $500,000 price tag. Yet that doesn’t mean drivers have to price themselves out of a pony car. By searching the pre-owned market, consumers can easily find used Ford Mustangs at a fraction of the original price.

Andy Warhol’s used BMW on display in museum

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Posted in BMW, Celebrity Auto News

The great thing about buying used BMWs is that there is a chance that the car will become a true classic and appreciate with time as it becomes a collector’s item. That’s even more true if the owner was especially famous. It’s particularly amazing if the owner was Andy Warhol and he added his own iconoclastic touch to the vehicle.

Andy Warhol’s used BMW is now considered a work of art, and is on display at the Palace of Arts in Budapest for a limited time.

According to car blog Jalopnik, the legendary BMW M1 of Warhol’s has quite a history. Andy Warhol painted the car in 23 minutes, and the random splotches of vibrant colors haven’t completely worn off in the three decades since its inception. BMW raced the vehicle at the 1979 24 hours of Le Mans, where it came in sixth overall.

Now, the car is considered to be art. In many ways, it is, according to the news source. Whatever drivers think of the man who painted it, any M1 is considered to be a work of art by some collectors.

Buying a used BMW carries with it a significant legacy. And if a consumer happens to stumble upon an old M1, they might just want to snap it up on the spot, as the car is legendary with or without an artist’s touch.

Revised crash safety standards to be tougher on vehicles

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Posted in Auto Industry News

The National Highway Traffic Safety Administration has announced that it will begin testing vehicles in September using more stringent safety requirements, quite possibly leading many 5-star rated vehicles to drop in acclaim.

The new tests and restrictions, which have been planned for a number of years, are designed to streamline the safety rating process. Rather than different star ratings for different tests, vehicles will now be assigned one rating on a five star scale. When the measures were initially announced a few years ago, the NHTSA said that many five and four star vehicles may actually drop to 2 stars, thanks to the more accurate and harsher system.

“This new testing program significantly raises the safety bar for all vehicle manufacturers,” said Transportation Secretary Ray LaHood.

The group hopes that the new requirements will encourage automakers to make safer vehicles. The NHTSA has ordered numerous recalls lately for seemingly minor issues, after being given new authority and oversight in the wake of the Toyota unintended acceleration scandal.

Those who plan on buying a used car should always have the car checked out by a mechanic to ensure that it is up to safety standards.

How to lease a used car

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Posted in How To

For many drivers, leasing is the most cost-effective option in order to ensure that their used car payments are manageable. But how does one get the best deal?

The answer is to comparison shop. Many dealers have standard quotes for leasing, but will lower the terms of the deal when confronted by a better price from a competitor. Drivers who do a little research and head to several different dealers can pick the best deal that works for them.

First up is identifying what kind of car a driver wants. There are many options here, but a good idea is to pick a class and stick to it.

Decide on a midsize sedan, or fullsize SUV, for example, then compare cars in that class across several different brands. Narrow this list down to four models or so before beginning negotiations. A savvy buyer might be able to find a used Ford Focus, Honda Civic, Nissan Sentra and Toyota Corolla all within the same price range. These cars are very similar, but after test drives and talking with salesmen, buyers can make a list, ranking the cars from their favorite to the least desirable.

A good idea is to set the terms of the lease ahead of time. Dealers will change up different offers, so set a few key terms, like 36 months, 36,000 miles, 1,000 due at payment. By giving these figures to several different dealers, buyers can then negotiate on the most important figure- the monthly payment.

Some dealerships offer incentives and bonuses for a limited time, and these should be factored in as well. Its worth going to dealers that are offering low interest rates, no money down or are willing to extend the terms of the lease.

One thing buyers might want to consider is that a lengthier lease means that a car may be outside its warranty. Longer leases also mean lower monthly payments.

Once a buyer has quotes for each model with the same lease terms, it’ll be easy to compare. It’s also worth taking the figures from competitors to each dealer to see if they will come down at all in price in order to beat one of the others. Perhaps the dealer who has a buyer’s favorite used car will lower the price in order to beat the cheaper cost of the buyer’s least favorite used car. Or maybe the least favorite car is also the most expensive, and a buyer can cross that model off their list immediately.

Leasing a used car has many benefits. For example, a car may lose its value significantly after three years, and those who buy will be paying more money up front for a car that will have little to no trade-in value. Rather than driving a used car into the ground, buyers who lease a car every three years or so can keep payments manageable and enjoy the variety of changing up their ride every few years.

Enterprise to obtain fleet of rental Leafs

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Posted in Auto Industry News, Nissan

Enterprise and Nissan have struck a deal that will see the Japanese automaker sell 500 of its upcoming Leaf electric vehicle to the rental car company.

According to the Associated Press, Enterprise will initially make the car available to drivers in eight cities: Seattle, Los Angeles, San Diego, Phoenix, Tucson, Knoxville, Nashville and Portland. The car will be available for rent in January, but Enterprise will begin installing charging stations in November.

The Leaf is one of the first electric vehicles to be mass produced. Nissan says that the vehicle will get 100 miles on a full charge of its electric motor. However, the car requires more charging after 100 miles, meaning that drivers could be stranded if they don’t plan carefully. Still, the car should be perfect as an emissions-free rental for those simply driving around a city while on a business trip or vacation.

Enterprise has not yet announced the cost to rent a leaf. The company currently charges a premium for customers who wish to rent a hybrid.

Rental cars are one way in which vehicles eventually find their way to the used car market. Often, these rental cars are kept in top shape and given dealer certification. Buyers interested in purchasing a Leaf may want to wait until the used Nissans begin finding their ways to dealerships and auto auctions.

New York cabbies prefer used Ford Crown Vics

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Posted in Ford, General Auto News

A new initiative to replace New York City’s 13,400 taxis with a more fuel-efficient and greener option is being met with some resistance by the taxi drivers who navigate the cars through the city’s busy streets every day.

Although the New York Taxi and Limousine Commission has kicked off its “Taxi of Tomorrow” competition in an effort to find cleaner vehicles, many drivers say they will be sad to see their used Ford Crown Victorias go. The commission hopes to replace the varied models among the NY used cars that cabbies drive with one clean, standard model by 2014, according to USA Today.

Yet Ford has decided to discontinue the Crown Vic, so taxi companies will need to find a new option. The Taxi of Tomorrow competition was launched in order to find a satisfactory alternative. Still, many drivers have nostalgia for the vehicles they have driven for years.

Jana Stroe says she has been driving used Ford Crown Vics for 20 years. “The car is good the way it is,” she told the news source. “We don’t want the hybrid. Hybrids have so many problems. We take a lot of customers from the small cars.”

Many drivers echoed her views, saying that when given the choice between the two, many customers will gravitate toward a roomier vehicle like the Crown Vic over a more compact car. Some drivers even report earning extra money behind the wheel of a Crown Vic.

Whatever the city ends up deciding upon as its new model, tourists can rest assured: the cars will still be painted that famous shade of yellow.