Colorado residents may be turning to used cars

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Posted in Auto Industry News

Recently released statistics from the Colorado Automobile Dealers Association (CADA) reveal that more Americans in some regions may be opting to buy used cars over new ones.

In its 2009 Economic Impact Report, CADA revealed that the state registered only 104,540 new cars and light trucks in 2009, the Denver Business Journal reports. This figure is almost half of the annual rate 10 years ago – the state recorded about 208,000 new car registrations in 2000,

“The industry, and indeed the entire state and U.S. economy, declined to depths not seen in modern history” last year, Tim Jackson, CADA’s president, said in a statement.

Despite the recession, which peaked only in the last several years, Jackson mentioned that the decline in new vehicle registrations has been most significant over the last four years.

According to the report, new car dealerships made $410 million in state and local tax revenue in 2009, while sales on new cars in Colorado totaled $9.62 billion, or an average of $34.2 million per dealership.

In light of the recession, drivers may be compelled to purchase new cars to save extra money.

General Motors partners with Google to develop mobile apps

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Posted in GMC - DO NOT USE

Ford and Mercedes-Benz have announced the use of smartphones to add new features to their cars. Now, it’s General Motors’ turn to jazz up its mobile application suite to make driving more fun and easy.

The American automaker has announced that its exclusive OnStar system will use the power of Google technology to develop mobile apps aimed at strengthening Chevrolet‘s commitment to give Volt customers a “connected vehicle experience possible.”

“While OnStar will never lose sight of our core focus on safety and security, this relationship is an example of how we’re evolving our leadership position in connected vehicle technology,” OnStar president Chris Preuss said in a statement.

The partnership will support phones that use the Android software from Google, such as the Motorola Droid and HTC Droid Incredible, Preuss said, adding that initial features will include advanced navigation features using Google’s voice-based search, mapping and routing functions.

While the new mobile apps will be created on the Android platform, the New York Times’ "Wheels" blog reported that iPhone and Blackberry owners can expect to see support for these models announced soon as GM has done demonstrations using other smartphones in the past.

Prices of used car rise, Ford fleet tops the list

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Posted in Auto Industry News, Ford

Prices for new, used and certified pre-owned (CPO) cars have continued to rise in recent months as the economy continues to ride out the recession and consumers start to toy the idea of purchasing a car again.

AutoTrader.com reported in its Trend Engine Report for May that used and CPO car prices have increased substantially, with many of them picking up double-digit increases in recent months.

The Ford F-150 and the Ford Fusion racked up 35 percent and 31 percent increases, respectively, in the certified pre-owned car category when compared to their market prices in April last year, a news release said.

In the used car category, the Ford F-150 also led the pack and was tied with Jeep Wranglers with 18 percent price increase in the same period. Other car brands that saw double-digit price increase since April 2009 were Chevrolet, Toyota, Volkswagen, Honda, GMC and Dodge.

AutoTrader.com President and CEO Chip Perry said more consumers are looking online for new, used and CPO vehicles. In an analysis of AutoTrader’s web traffic, car shoppers used the site to compare vehicles, check prices and see car inventory.

“Car shoppers today, coming off two years of a tough economy, want to know that they’ve made the right purchase when they finally do decide to buy a new or used car,” Perry said.

U.S. sets to sell 11.7 million cars in 2010

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Posted in Auto Industry News

The consulting firm A.T. Kearney has projected that car sales in the U.S. will top 11.7 million in 2010 and the positive economic outlook will bring sales to historical levels next year.

According to a Reuters report, this year’s car sales volume will range from 11.4 million to 12.3 million units, and is expected to hit 12.9 million vehicles to 16.8 million vehicles in 2012.

Analyst Daniel Cheng of Kearney told the news provider that the increase will be fueled by pent-up demand and the availability of more credit sources.

“If you look at the 1980s and the recovery from the low point then, the steepness of the return is much like our forecast,” Cheng said.

He added that the average age of cars in the US is about 9.9 years and will rise to 10.1 years in 2011. After that, more cars are expected to be scrapped and consumers will more likely send buyers to the market.

More than 16 million cars were sold between 1999 and 2007 in the U.S. When the recession hit the industry, sales volume dived to 13.2 million in 2008 and to 10.4 million in 2009.

Used Ford cars command higher prices than other brands

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Posted in Auto Industry News, Ford

Higher resale value of Ford cars, which has increased by about $3,000 over the prior year, will take center stage in the automaker’s summer marketing campaign.

This comes after the American carmaker received the largest increase in quality score in a recent survey conducted by the Automotive Lease Guide, which measures the perception of quality in car brands as a way of determining resale value.

“We have made huge strides in vehicle quality in recent years but customer perceptions don’t change overnight – so it is gratifying to see our real-world improvements begin to fully register with consumers,” Jim Farley, Ford’s group vice president of global marketing, said in a news release.

Ford showed a 7.6 percent improvement on the Spring 2010 results compared with Fall 2009 in ALG’s annual Perceived Quality Score survey, according to a Wall Street Journal report.

The news provider added that while Ford posted the biggest gain, it ranked third in overall quality score at 70.5 percent from front runners Honda Motor, which scored 83.2 percent and Nissan Motor, which received 70.6 percent.

Honda and Ford move to top of auto market in U.S.

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Posted in Ford, Honda - DO NOT USE

Once the premier automaker in the U.S. market, Toyota has recently dropped two spots and made room for Honda and Ford in the top two positions.

According to an April survey by the nonprofit publication Consumer Reports, 57 percent of current Toyota owners would “most likely” purchase a new Toyota vehicle, says Reuters. This figure is down dramatically from December, when 70 percent said they would buy another vehicle from the Japanese automaker.

More than half respondents said that the reputation of a brand was the most compelling factor in their choice of a new car, a factor which could have contributed to the negative approval rating because of Toyota’s recent negative publicity due to recall issues.

Though the brand’s reputation has suffered a blow, the sales of used Toyotas may not be as drastically affected.

In comparison to the opinions of Toyota owners, 68 percent of Honda owners and 61 percent of Ford owners said they would return to their brand.

As a result of dropping two spots in Consumer Reports’ ranking, Toyota may continue to extend sales incentives aimed at attracting more drivers in the U.S.

2009 Mazda6 built with more guts

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Posted in Mazda - DO NOT USE

Some critics were known to attack the size, power and quality of the midsized cars released by Mazda through much of the past decade – and the 2009 Mazda6 was the automaker’s answer.

Designed with all the comforts to please American sedan owners, the 2009 Mazda 6 unveiled in the U.S. contains only about 10 percent of the key-dimension components of the world-car platform version and has no common sheet metal or glass, according to MotorTrend.com.

Aside from being a pleasure to drive, the car boasts new eye-catching bodywork that consists of a blending of contours and edges. A stylized grille and jewel-like projector-beam headlamps lead into fenders with bold RX-8 and CX-9-type features. In addition, tighter gaps in the Mazda’s body panels and the addition of aero cleanups help to reduce the model’s drag coefficient by about 10 percent, compared to earlier versions.

When drivers climb into the 2009, the cockpit motif will make them feel like a pilot behind the wheel. The interior features an attractive blend of textured plastic surfaces with matte metal trimmings.

According to Edmunds.com the car also comes with antilock disc brakes, stability control, front-seat side airbags and full-length side curtain airbags.

Toyota prepares for hydrogen fuel-cell sedan

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Posted in Toyota

Toyota has announced that it is preparing to introduce a hydrogen fuel-cell sedan by 2015, with a retail price of about $50,000.

The automaker believes this sedan will have an advantage over electric cars, as it will have no emissions and the same range and refueling time of a gas-powered car, the Chicago Tribune reports.

While consumers might expect a higher price tag on the innovative vehicle, Toyota representatives have said that the cost of making fuel-cell cars has decreased by about 90 percent in the past 10 years – initially estimates for building a hydrogen fuel-cell car reached $1 million.

“Our target is, we don’t lose money with [the] introduction of the vehicle,” Toyotas managing director for advanced autos, Yoshihiko Masuda, told Bloomberg News. “Production costs should be covered within the price of the vehicle.”

As the technology emerges, some consumers have expressed hesitation in purchasing the new cars, as refueling options for the vehicles seem limited at present.

Drivers currently in the market for a Toyota may note the low expense of used cars. According to Automotive.com, a used four-wheel-drive 2009 Toyota Camry Sedan can sell for as little as $10,675.

Toyota predicts substantial sales increase

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Posted in Toyota

In a bright spot in an otherwise rough year for the troubled automaker, Toyota Motor Corp, the company recently released a report that predicted a 48 percent rise in profit this fiscal year.

The increase is expected to be the result of an anticpated recovery in Toyota’s large North American market, where sales recently suffered due to the notorious series of recalls, and a boost in sales the Asian market, outside of Japan, Bloomberg reports.

“North America is the only market that matters [for Toyota’s earnings],” said Gentoku Kiyokawa, a Tokyo-based fund manager for Fortis Investments, which bought shares from the automaker in February.

He added, “Based on the recent sales numbers, the recalls aren’t posing a problem.”

During April, Toyota’s sales in the U.S. rose 24 percent. The company anticipates selling 2.13 million vehicles in the U.S. by the end of the fiscal year, constituting a 1.5 percent rise.

The uptick would be a promising reprieve from 2009’s market trends, which were reflected in a 20 percent drop in Toyota’s U.S. sales.

Used cars lasting longer than ever

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Posted in Auto Industry News

Cars are lasting longer now than ever before, making used cars a sound investment for consumers planning for the future.

While many automotive experts once estimated that cars typically are spent when they hit about 100,000 miles, some are changing their tune, MSN Money reports. According to Edmunds.com, cars can now easily endure about 200,000 if their given regular maintenance.

Steven Lang, the owner of two used-car lots, told MSN, “A conservatively driven and well-maintained $5,000 car should last 10 years.”

He added, “Cars are engineered today so that you’ll get tired of them long before they tire you out.”

A study by CNW Market Research found that the average value of a new car in the U.S. is $30,266, and is financed for an average of 58 months with a monthly payment of $411.

Analysts suggest that by that the savings gained by purchasing a used car are compounded by poor interest rates on car payments.

According to the Bureau of Transportation Statistics, about 41 million used cars are sold each year, about half of which are purchased from new car dealers.