Auto financiers recommend planning ahead before buying used cars in New Jersey

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Posted in Auto Loans & Financing News

Automotive financiers say that buyers considering used cars in New Jersey can benefit from making sure they understand the terminology surrounding loans and credit options before they sign their names to a contract.

Start by checking with outside loan agencies like credit unions or banks where one has an account to determine what interest rates are available, says industry group Americans Well-informed on Auto Retail Economics. Consider increasing one’s down payment as a way to lower the rate, or APR.

When one has an idea of what monthly payment is affordable based on his or her budget, AWARE recommends sticking to that number. It may be easier to negotiate the interest rate and lower monthly payments there as opposed to haggling over the purchase price of a used car in New Jersey.

Extras like credit insurance or extended service warranties are often offered at this point in negotiations, the coalition notes, but determine whether they are necessary beforehand and stick with that decision, it says.

Consumers “will get the most out of their vehicle financing experience if they do their homework,” says Eric Hoffman, AWARE spokesman.

Cash for Clunkers backlash could increase sales of used cars in New Jersey

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Posted in Auto Industry News

One industry group says that car buyers who thought the Cash for Clunkers program would help make new cars more affordable are likely to find that they’re better off with used cars in New Jersey.

The program offers vouchers of up to $4,500 for owners with low fuel mileage who have owned their vehicle for at least a year and then trade it in for a more fuel efficient new car.

It would be just as easy to trade up to a newer used car or through better maintenance of existing cars, argues the Automotive Aftermarket Industry Association.

“It wouldn’t surprise me if there is a consumer backlash once car owners realize that ‘Cash for Clunkers’ is nothing more than a … program to fund a government subsidized vehicle trade-in to help new car dealers sell cars,” said Kathleen Schmatz, the association’s president and CEO. “Consumers will soon learn that they are simply trading in their vehicle and will still have to jump through all of the hoops to qualify for and purchase a new vehicle.”

Race enthusiasts can take advantage of program for used Honda cars in New York

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Posted in General Auto News, Honda - DO NOT USE

Owners of used Honda cars in New York can take advantage of a program sponsored by the automaker that offers amateur racers access to performance parts on an expedited basis.

While not everyone has the millions of dollars required to put together a race team for NASCAR or the IndyCar series, Honda knows that owners may want to take Civics or Accords to local autocross events or other races.

Its Honda Performance Development subsidiary will enable amateur racers to get aftermarket parts more easily by offering owners of used Honda cars in New York direct access to factory-supplied equipment under the Honda Racing Line program for licensed amateur racers.

“Thousands of our customers are racing Hondas or Acuras today with a need for regular access to parts,” said Erik Berkman, HPD president. “We are pleased to provide the [Honda Racing Line], and look forward to expanding the roster of benefits and services available to … members.”

HPD currently provides the engines used by Honda teams in the IndyCar and LeMans series.

Used Ford Fusions in New Jersey can take advantage of fuel-saving tires

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Posted in Ford

Ford has tried to position the Fusion as an environmentally friendly, fuel-efficient car through publicity-raising events like a 1,000 mile drive in the hybrid version on a single tank of gas and various billboards referencing the EPA estimated mileage ratings.

Now they’ve announced that this year’s model will be fitted with Goodyear Assurance Fuel Max tires, which the company estimates could save up to 4 percent in average driving conditions. But buyers considering used Ford Fusions in New Jersey need not buy a newer model to take advantage of the new technology.

Designed to reduce energy loss with an enhanced tread compound, buyers may want to buy a set with the savings they could gain buying a 2006 model.

In the first year that the Fusion was offered, Edmunds.com reviewers described it as marking ” the first time in nearly two decades that Ford has a high-quality midsize sedan that can go toe-to-toe” with Japanese and European midsize sedans.

Buyers considering used cars in New York may see new GM ads

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Posted in Auto Industry News, Buick- DO NOT USE, Cadillac - DO NOT USE

General Motors marketing head Bob Lutz has told his advertising teams that he was not impressed with recent marketing efforts for Chevrolet, Buick and Cadillac, and some say that his arrival could mean that buyers considering used cars in New York will see new commercials with more input from automotive designers within the company.

He told teams that while recent spots for Cadillac and Chevrolet may have tested well, they were not “effective” advertisements, according to a report in Advertising Age.

“I think you will very quickly see a drastic change in the tone and content of our advertising,” Lutz said according to online magazine. “And if you don’t, it will mean that I have failed.”

The move by Lutz to curtail recent marketing efforts represents one facet of GM’s attempt to become profitable before its chief stakeholder puts the automaker back on the market.

Ron Bloom, chairman of the U.S. Treasury task force overseeing the bailouts of both GM and Chrysler said that he was eager to “dispose” of the government’s stake in General Motors, hopefully by next year, according to an Associated Press report.

New 7-series price point and weight could tip buyers towards used BMWs in New York

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Posted in BMW

For consumers who need a luxury sedan that goes from 0 to 60 miles per housr in less than 5 seconds, it may be easy to justify the $136,000 that a new BMW 760i will cost. Others who enjoy the styling and quality that the line offers may prefer a used BMW 7-series in New York that runs less than a quarter of that price.

The cars represent the top-of-the-line for BMW sedans, and a V12 engine that puts out more than 540 horsepower to the wheels along with a spacious interior and an eight-speed automatic transmission to help the driveline handle the power, according to the automaker’s release.

But consumers who like the design cues of older BMWs without the “shark nose” of more recent models, and would enjoy a luxury sedan that can propel them from a standstill to 60 mph in 6.3 seconds may find used BMW 745s more to their liking.

The 2005 model allows drivers to enjoy a “satisfying” level of ride comfort, even when the sedan shows “its ability to slice through curves considerably faster than expected,” according to Cars.com reviewer Jim Flammang.

Cash for Clunkers may not accept some used cars in New Jersey

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Posted in Auto Loans & Financing News, Toyota

Some used cars in New Jersey that have the mileage ratings required for use in the CARS program, commonly known as Cash for Clunkers, may not actually meet the guidelines for the program and buyers may choose to hold onto their vehicles instead.

Consumers who were considering leveraging their used cars for the discount found that the Environmental Protection Agency had “refreshed” the mileage numbers of several automobiles, making them ineligible for the program, reported Edmunds.com.

“It’s unfortunate that consumers who had been researching and planning to trade-in their vehicle with the new Cash for Clunkers program are now left in the dust,” said Karl Brauer, Edmunds.com editor-in-chief.

The site says that more than 30,000 used cars in New Jersey and other states may be affected by the changes, with examples including a 1993 Toyota Camry wagon that was sold with a combined mileage rating of 18 miles per gallon, qualifying it for the program. The EPA has now revised its rating to 19 mpg.

Other examples provided by the car website include the 1992 Saab 900s with automatic transmission and the 1988 Toyota 4Runner.

CARS law doesn’t beat price of used cars in New York

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Posted in Auto Industry News

Consumers who are perusing listings of used cars in New York may look at the CARS program and wonder if it makes financial sense for them, or helps the environment. Several opponents are hoping they’ll stay away from junking their used cars.

The average price of a new car is $27,800, while used cars run roughly $14,000 dollars, according to Edmunds.com data cited by ABC News.

The program will issue a maximum of $4,500 for trade-ins of used vehicles, bringing the average cost down to $23,000, and the question is whether or not consumers will want to save the $4,500, or the $9,000, according to the news provider.

Opponents of the law aren’t just looking at prices, though, as environmentalists worry that the program won’t have the desired effect of reducing greenhouse gases.

“When introduced, the program had an environmental rationale,” wrote Dan Becker, Safe Climate Campaign director, in a Star-Ledger editorial. “It is now so diluted that in some cases, buying a car or light truck offering an improvement of a mere one mile per gallon over your junked wheels will get you a $3,500 voucher.”

Used Volkswagens in New Jersey may have safer transmissions

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Posted in Volkswagen - DO NOT USE

A used Volkswagen Jetta in New Jersey may be safer than one of the newer models with a direct shift gearbox, a concern the National Highway Transporation Safety Administration is currently investigating.

They have received more than two dozen reports that the transmission system is causing problems for drivers of new Jettas, Golf GTIs and other vehicles. In some cases the vehicle had to be turned off and restarted, and several owners reported that the vehicle had to be towed, according to the NHTSA office of defect investigations.

The ODI said that they will be monitoring the frequency of such reports and the safety consequences as part of the ongoing investigation.

On the other hand, a used Volkswagen Jetta in New Jersey generally does not have the transmission kinks of the new cars.

A 2005 Jetta is one option, as its 60 percent more rigid than earlier models which improves safety, and is larger than previous versions as well, according to a Cars.com review.

“Steering feel is excellent, and the Jetta stays neatly on course on straightaways,” added reviewer Jim Flammang. “With wholly predictable handling, it’s simply masterful through curves.”

Buyers of used cars in New Jersey see Ford post $2.3B profit

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Posted in Auto Industry News, Ford

Financial statements have recently been released by Ford showing more than $2 billion in profit in the last three months, but consumers considering used cars in New York may notice that General Motors is still struggling heavily.

It’s a tale of two sides of the government’s efforts to save the Big Three, and right now Ford is looking better after posting a profit in the second quarter of this year, using restructuring tactics to offset the loss of $1 billion in cashflow, according to the Detroit Free Press.

Alan Mulally, Ford president and CEO, told the news provider that he still plans to be cautious in the recovery, and doesn’t expect to post real profits and improve cashflow for the next 18 months, reported the news provider.

The “green shoots” aren’t so strong at General Motors, which saw sales drop by 15 percent worldwide in the same period compared to second quarter figures in 2008, limited only by success in the Chinese market that has seen remarkable growth, noted the Business Courier.