Good time to refinance an auto loan

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Posted in Auto Industry News, Auto Loans & Financing News

An online aggregator of financial rate information has reported that many of this year’s auto loan refinance rates are 1 percent to 2 percent lower than they were in April of last year, depending on the length of the refinance loan.

“Refinancing an auto loan may be a good option if you need to reduce your monthly expenses in order to get your finances back on track,” said Tara Baukus Mello, an analyst at Bankrate.com.

While it is ideal not to extend the length of any loan, job loss or other similar situations could urge people to consider refinancing their loans to ease some financial burden, according to the news provider.

For example, a car purchased in April 2008 for $28,000 and financed for five years at 6.53 percent (the national average at the time) requires a monthly payment of about $550. This means the owner currently owes the bank a little less than $18,000.

Refinancing the remaining amount for four years, at the national average rate of 5.38 percent, would drop monthly dues by $133 and the owner would spend just $176 more in interest over the life of the loan, Mello said.

According to a Businessweek report, refinancing an auto loan might be a very good idea in the near future because interest rates remain at historically low levels. “Whether you have a used car loan or a bad credit personal loan, you could probably get the interest rate lowered if you go through a refinance process in the near future,” the report said.

Toyota Prius declared greenest car of the year

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Posted in Auto Industry News, Toyota

With its topnotch fuel efficiency, solar-powered ventilation system and various high tech features, Toyota‘s 50-mile-per-gallon Prius topped this year’s list of 10 greenest cars.

According to the Kelly Blue Book, the Prius remains the most fuel-efficient car in its class of hybrids, boasting 51 mpg city and 48 mpg highway. Aside from its hybrid powertrain technology, Prius was praised for its glass moonroof with a solar-powered ventilation system, voice-activated navigation and Dynamic Radar Cruise Control with Lane Keep Assist.

“To be considered for the green Top Ten, each vehicle was required to offer fuel economy and carbon dioxide emissions superior to the bulk of vehicles in its class and at the same time provide all the safety, creature comforts and driving enjoyment that would make it pleasant to own,” Kelley Blue Book said in its website.

This year’s list was largely dominated by last year’s collection, but also included two newcomers — the Volkswagen Golf TDI, one of the newest “clean diesels,” and the Chevrolet Tahoe Hybrid, which demonstrates SUV-like features that can co-exist with a hybrid powertrain.

Rounding up the top five are Honda Insight Hybrid (41 mpg), Ford Fusion Hybrid (39 mpg), Volkswagen Golf TDI (34 mpg) and MINI Cooper (32 mpg). Ranked sixth to tenth are the Ford Escape Hybrid (32 mpg), Honda Fit (31 mpg), BMW 335d (27 mpg), Toyota Highlander Hybrid (22 mpg) and Chevrolet Tahoe Hybrid (22 mpg).

The New York Times reported that Toyota will introduce a third-generation Prius in May in line with Toyota’s plan to sell a million hybrid cars in the next few years, from about 250,000 hybrids in 2008.

Survey: American cars are better than Asian, German makes

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Posted in Auto Industry News, General Auto News

More Americans believe that domestic cars are superior to their Asian and German counterparts, a survey conducted by the Associated Press and GfK Roper Public Affairs & Media showed.

Thirty-eight percent of more than a thousand respondents said they think American cars are the best-made vehicles in the world. About one-third chose Asian-made cars, while 15 percent believed German automakers offer top quality vehicles, according to the survey.

Businessweek’s “The Auto Beat” blog said that the result could boost sales of American car makers Ford, General Motors and Chrysler. “All three can capitalize on this newfound respect if they continue to build better models and if, a big if in GM’s case, they can market the cars well,” it said.

The Kelly Blue Book reported that the new figures are “pronounced variations” from earlier polls made well before Toyota‘s recall issues. In 2006, for instance, the AP-AOL poll showed that 46 percent of Americans felt Asian countries had the best in quality with just 29 percent and 17 percent for U.S. and German cars, respectively.

Ford Focus’ appeal for teen drivers

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Posted in Ford

Mom and dads contemplating the first car of their teenager may consider buying the Ford Focus, which aside from its reasonable pricing and European style, comes with an innovative Sync system that allows voice commands to control the iPod and other smartphones.

The 2008 Ford Focus feels and looks entirely different from its 2007 predecessor, inside and out. The 2008 line-up now includes a 3- and 5-door hatchbacks and wagon, and a new two-door coupe. It boasts an EPA fuel economy of 24 MPG city, 33-35 MPG highway and is reasonably priced at about $14,600 for a brand new one.

But perhaps, Focus’ most attractive feature is its optional Microsoft-designed Sync system, which provides seamless integration with media players and Bluetooth phones. Sync can read incoming text messages out loud, and can text useful one-liners like “Be there in 10 minutes” and “I love you.” It can also recognize voice commands to control music so drivers don’t need to fumble with their controls while driving.

Ford Focus’ Sync system not only adds fun to driving. It’s a great driving safety tool that parents would surely want to have for their teens.

Maine tops list of least expensive state to buy for car insurance

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Posted in Auto Loans & Financing News

Car buyers always want to get the best deal. Those who want to get more but pay less for auto insurance may want to go to Maine, which boasts the lowest average rates in the country.

According to Insure.com, the average car insurance rate in Maine is $902.85, almost two times lower than Louisiana’s $2,510.87, which claimed the title as the most expensive state in which to get car insurance. New Jersey ranked No. 22 with $1,473.73, slightly higher than the national average of $1,429.26.

Maine’s low car insurance rates stem from the fact that its average annual mileage is low relative to other states. The largely rural state has the small population of 1.3 million people, which means fewer people on the roads and fewer claims.

Meanwhile, Louisiana’s No. 1 ranking can be explained by its court system. Only cases with claims in excess of $50,000 receive a jury trial, driving up out-of-court settlements to $49,000 that insurance companies must pay.

Rounding up the five most expensive states in which to buy car insurance are Michigan, Oklahoma, Montana and California, while other states with the least expensive rates include Vermont. Ohio, Wisconsin and New Hampshire.

Shell partners with Penske for 2011 racing season

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Posted in Auto Industry News, Celebrity Auto News, Dodge - DO NOT USE

Shell Oil Company and Penske Corporation have announced a business alliance to increase their motor sports presence in the 2011 racing season, extending sponsorhsip to former champion Kurt Busch, who has driven the No. 2 Miller Lite Dodge since 2006.

As a result, rival company ExxonMobil fired back by announcing that it is also cutting ties with Penske after this season. Its withdrawal means Penske has to look for a new sponsor for Sam Hornish Jr., driver of the No. 77 Mobil 1 Dodge.

“It has been a long and successful relationship, and we wish the Penske team continued success on the track,” the ExxonMobil said in a statement as reported by the Associated Press.

Penske’s deal with Shell will make Pennzoil the primary sponsor for Busch, who will move to the No. 22 Dodge, according to the news provider.

In a new release, Penske said that Pennzoil will become the “official motor oil” of its racing season next year, including all of its entries in the NASCAR Sprint Cup, the Nationwide Series and the IZOD IndyCar Series.

Penske first partnered with Pennzoil in 1983 as part of its IndyCar teams. The partnership won the 1984 and 1988 Indianapolis 500 Mile Races. Busch also drove a Pennzoil-supported car for another team when it won the NASCAR Sprint Cup Series Championship in 2004.

Ford unveils software to liven up driving

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Posted in Auto Brands News, Auto Industry News, Ford

The U.S. car maker Ford has released a new software called SYNC AppLink, which will make possible hands-free control of certain technologies via Android and Blackberry smart phone applications.

While the software will launch on the 2011 USA Fiesta, Ford said that the software will be made available to older Ford models that run its in-car connectivity system called SYNC. Ford also plans to create a developer community to encourage the development of apps for Ford cars.

Ford said the AppLink will allow drivers and passengers to control some of the most popular apps through SYNC’s voice commands and steering wheel buttons while keeping their hands on the wheel and eyes on the road. Some of the apps that motorists will be able to control include the online radio provider Pandora and the micro-blogging site Twitter.

“The growth in smart phone mobile apps has been explosive, and Ford has worked hard to respond at the speed of the consumer electronics market,” Doug VanDagens, director of Ford’s Connected Services Organization, said in a news release.

Studies have shown that the mobile app development, which was a niche market just three years ago, will grow into a $4 billion industry by 2012. Mobile devices will become the No. 1 source for Internet access by 2015, surpassing the home computer.

Used Toyota resale values on the rise

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Posted in Auto Industry News, Toyota

Resale values of Toyota vehicles are gaining slowly after a boost in sales, as reported by the Japanese automaker earlier this month.

Consumers who currently own a Toyota have gained back “at least some of the resale value” they lost at the peak of the safety recall in February, Bankrate.com reports.

The automotive websites Edmunds.com and Kelly Blue Book have shown an uptick in resale values of used Toyota cars, in sharp contrast to their forecasts two months ago that prices would drop by as much as 10 percent.

“Values for three-year-old Toyotas are improving, though at a slower rate than the current industry average,” the news provider reported, citing Kelley Blue Book’s analysis.

Edmunds.com senior analyst Joe Spina also said that prices of used Toyota cars are “almost back to their pre-recall levels,” noting that a full rebound will not come until late summer.

Toyota has recalled more than 8 million vehicles due to safety concerns, but its March sales increased 41 percent compared with those in the month a year earlier. The rebound has largely been fuelled by subsidized leases and interest-free financing.

Cadillac offers more color options for car buyers

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Posted in Auto Industry News, Cadillac - DO NOT USE

Summer is just around the corner and it could be the perfect time of the year for people to revamp their car’s look. A California-based company has recently launched a new line of pigment specially made for Cadillacs.

JDSU, which provides color solutions for a wide range of industries including the automotive sector, has launched the “From a Different View” campaign to highlight the role of colors in brand differentiation and personal style.

Designers from Cadillac said colors impact the car-buying process as customers want colors to match their personality. Cadillac uses JDSU’s pigments, which add depth to cars by changing color when viewed from different angles.

“We have been collaborating with JDSU for nine years and in that time have created six special car colors for our Cadillac vehicles,” Chris Webb, senior creative designer at Cadillac, said in a news release. Cadillac owners have options to repaint their cars with JDSU’s chrome, tuscan bronze and thunder gray colors.

Scientists have long examined the psychology of colors. Numerous studies have pointed out the meanings each color evokes, and advertising companies have used them to come up with catchy color themes for their campaigns. So for car owners who want to change their personal branding, a new car color can usher in the change.

Justin Beiber gets driver’s license, will drive a Range Rover

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Posted in Celebrity Auto News, Land Rover - DO NOT USE

The millions of fans of teen sensation Justin Bieber shouldn’t be surprised if they see the 16-year old singer behind his Range Rover some time soon.

The Canadian singer has reportedly received his driver’s license from the Atlanta Department of Motor Vehicles, though Bieber’s rep has not released a statement on whether or not the claims are true, according to entertainment news site TMZ.

Bieber recently revealed in an interview with the British TV show “Live on Studio Five” that R & B superstar Usher bought him a Range Rover for his birthday.

“Usher helped buy me a car. He bought me a Range Rover. I can drive. They wanted a bigger car so if I got in an accident I’m not going to get as hurt,” the teen star told the show.

Bieber is one of the youngest male artists to reach the top spot on the Billboard 200 with his new album “My World 2.0.” The record is currently held by Stevie Wonder, who topped the chart in 1963 as a 13-year-old with “Little Stevie Wonder/The 12 Year Old Genius.”