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How to Find Affordable Car Rentals

February 17, 2020 by admin 4 Comments

Whether for work or pleasure, there are car rentals companies just waiting to serve you. Enterprise, Hertz, Avis, Alamo, National, and Budget are among the national brands to consider, along with smaller and regional brands such as Dollar, Thrifty, Payless and a handful of independent car rental companies. Finding affordable car rentals can take some work, so keep these tips in mind as you begin your research.

Affordable Car Rentals

1. Consider the Vehicle Needed

Before you begin shopping for a car rental, consider the type of vehicle needed. Know that car rental prices are based on vehicle size and type with a subcompact car such as the Nissan Versa Note costing the least and a luxury SUV such as the Lincoln Navigator usually costing you the most. You should also know that you may be offered a free upgrade especially if your vehicle type is not available. Accept the upgrade if you want, but also consider that you may be offered a less fuel-efficient model.

2. Use Internet Sites to Your Advantage

Consumers can compare rates between car rental companies by using travel sites such as Priceline, Expedia, Orbitz, Kayak, and Travelocity. Compare the rates on these sites and then go directly to the car rental company pages to find the best rate. Rates may vary due to special arrangements travel sites make with one or more companies.

3. What Discounts May Apply

You may be entitled to discounts and not even know it. Most car rental companies automatically provide a rate reduction for AAA and AARP members. They also extend discounts to certain credit card holders, national clubs, and frequent flier program members. If you are not sure that you are due a discount, then just ask.

4. The Long and Short of Car Rentals

Consumers should know that car rental terms are sometimes cheaper for longer rental periods. For instance, if you need to rent a car for four or five days, you may pay more than the person that rents a car for a week. If you need a long-term rental, such as for a month, your daily rate may be the lowest available. For short term rentals, consider renting for a week and returning the car early to enjoy the lower rate.

5. Why Location Matters

Not all rental car locations are the same. For instance, if you rent your car from Hertz and are considering an airport location, then you will pay a higher rate than for a rental that is not at the airport. Airport vendors pay airport management high rent for the convenience of the location. That extra cost is passed on to consumers. If you are flying and need to rent a car upon arrival, take a shuttle bus or taxi to an off-airport location. Daily rate savings of $5 to $10 are possible off-site.

6. Fees, Taxes, Insurance, and Special Charges

That $24.99 daily rate quoted for a midsize sedan may sound too good to be true. Well, it may be true, but it can also come with other charges that can increase your final cost. Among the fees charged are airport concession, parking, reimbursement, and a drop-off fee if you are returning your vehicle to a different location. Be mindful that a peak season surcharge may be passed on to you, as well as regional, local, and state taxes. You’ll also be charged for car insurance, but you may be able to get this charge waived if your insurer covers car rentals. Special charges may also be added, including for a child’s safety seat or a ski rack. Make whatever special arrangements you need in advance and find out what fees apply.

7. Fill the Fuel Tank Before Returning

One of the most insidious charges car rental customers may face is when they return a car without first topping off the fuel tank. Take a few minutes to stop at a service station nearest the rental car outlet and fill the tank. If you do not, then you will be charged the rate the car rental company charges, which can cost two to three times per gallon the local pump rate.

Shop Around

Savvy consumers can save money on their car rental by shopping around and asking for discounts. If you aren’t finding a deal, contact the car rental company directly and ask for their best price. Loyalty can help you too, so if you are a regular user of one rental company, tap that loyalty to procure further discounts.

Devon Janse van Rensburg

The Recent, Worrisome Spike of Software-Based Defects in Vehicles

February 10, 2020 by Cole McKeon Leave a Comment

More and more technology is being integrated into vehicles in today’s world. Much of this technology is complex, leading to significant problems, as seen in the skyrocketing number of software-related vehicle recalls in the past few years. These problems were especially pronounced in 2018, which was a record year for software-based defects in vehicles.

The new Stout Automotive Defect and Recall Report, released in late 2019, suggests the increase in software-based electronic defects was “the most significant trend of 2018.” The report also reveals that 2018 had a record-breaking number of vehicle recalls based on software defects, for a total of 8 million–a higher total than the five previous years combined. 2018 also saw electronic defects accounting for the largest percentage of vehicles recalled, which was 26-percent or 6.3 million of all vehicle recalls.

How Stout defines software problems

Stout looked at a variety of sources, including National Highway Traffic Safety Administration (NHTSA) recall data, Part 573 letters, quarterly completion reports and Technical Service Bulletins (TSBs). They’ve compiled the data from those sources and divided it into four digestible groups. The first three groups have defined the data based on a common failure/defect, while the last group, where the failure/defect could not be pinpointed precisely, is defined by its remedy.

1. Integrated Electronic Components (IECs): Failures involving electrical components that failed because of physical defect–from water intrusion to wiring failure.

2. Software Integration: Failures that occur because the software fails to properly interface with a vehicle’s components or systems.

3. Software Defect: Failures relating to a defect in the operating software.

4. Software Remedy: Failures where a software defect has not been found, but a software flash or replacement has remedied the failure.

2018: The worst year for software-based recalls

Software-based problems–of which software integration, software defects, and software remedy categories are all a part–increased for the second year in a row. One recall, in particular, was responsible for this increase, namely, the FCA (Fiat Chrysler Automobiles) vehicle speed control system recall involving 4.8 million vehicles.

According to Stout’s data, software-based defects/recalls have skyrocketed and, conversely, IECs–which aren’t caused or fixed by software–have plummeted. The report expects this inverse relationship to continue, as it anticipates software-based systems and components will dominate the car market. Software remedies will become more commonplace than traditional methods of delivery.

Overall, the number of vehicles recalled in 2018 due to software issues (8 million) was three times greater than the vehicles recalled in any other previous year. This figure also involved about one-third of all the vehicles that were part of non-Takata recalls for the year. The Takata airbag recall was the biggest safety recall in American history, according to the NHTSA.

When Software Defects Are Likeliest to Occur (Emergence Patterns)

In general, software-based defects occur within the first two years of a vehicle’s life, while non-software issues appear later and can be a potential risk throughout a vehicle’s life. This happens because software issues are more likely to be present from the start of a vehicle’s life. Conversely, non-software issues may emerge only after physical components are exposed to wear and tear or environmental exposure.

Since software integration is relatively new, this emergence pattern is subject to change, as consulting firms like Stout continue to monitor the data in coming years.

The Remedy Procedures in Detail

Stout looked at 10 years of data involving the narrative remedy descriptions for every electronic component recall to make the following findings.

Remedy Procedures

Depending on the issue, the remedies for IEC component defects may vary greatly from remedies used for software-based defects:

IEC repairs are performed at dealerships, while remedies for software-based components can be delivered remotely.
Costs for IECs are determined by the cost of materials, retail mark-ups, handling costs, labor and the number of vehicles involved, while costs for software remedies are dictated by the cost of developing a remedy for the software issue.

IEC remedy procedures involve the traditional process of inspection, repair or replacement of failed components, and software-based component defects could be remedied with the replacement of a component, but may also be fixed with an update to the software associated with the defective component.

Remedy Time

Software-based remedies are more standardized than IECs. For that reason, the Stout report has designated a general timeframe of 0.2 to 2 hours–with an average time of 0.6 hours–as the remedy time for software-based defects.

Non-software-related defects are less standardized, as they vary based on static factors such as the nature of the defect and location of the component. The Stout report listed average remedy times for various component defects, including airbags (0.8 hours) and engine & engine cooling (1.1 hours).

Remedy Delivery

Most software-related defects still require taking the traditional route of traveling to a dealership to meet with a technician. However, with software remedies, more options for delivery exist, including:

1. USB Flash Drives

These remedies are delivered via removable media, either sent to the vehicle owner on a USB flash drive or available for a vehicle owner to download onto their own removable media drive.

2. Over-the-Air Remedies

These remedies are delivered to vehicles via wireless transmission.

The Final Takeaways

If the findings of the Stout report hold true, an increase in software-based defects/recalls and a decrease in non-software problems will continue to trend in the future. This trend can be analyzed through Stout’s method of grouping the IEC, software integration, software defects and software remedies in separate categories.

By looking at this data, Stout determined that, in 2018, the number of software-related defects (software integration, defects and remedies) climbed astronomically, while the number of IECs dropped dramatically.

Stout’s data also reveals that software-related defects are often found within the first two years of the life of the vehicle, while non-software-related defects can be exposed much later on in a vehicle’s life. The remedy process for software-based component defects is generally more streamlined than the remedy procedure for IECs: By the use of removable storage devices and Wi-Fi, a trip to the dealership may not even be required.

Photo supplied by Free Images.

About Lucid Motors

January 28, 2020 by admin 3 Comments

Lucid Motors isn’t a household name, but if this Newark, California-based mobility company has its way, that’ll soon change. And soon cannot come quickly enough for the company, founded in 2007, as it plans to debut its first model at the New York International Auto Show in April 2020.

Long Range, Immense Power

Officially known as Lucid Motors USA, Inc., this upstart automaker is situated in the heart of the Silicon Valley. The company essentially operated undercover for several years, revealing its first model in December 2016. Known as the Lucid Air, this all-electric sedan sports a pair of AC induction motors, which generate a combined 1,000 horsepower. Yes, you read that right: one thousand pounds of forward thrust!

Importantly, Lucid says the planned vehicle has a 400-mile range. That places the Lucid Air in unique territory and effectively removes range anxiety for nearly everyone.

The available Executive Seat Package is a must!

From Atieva to Lucid

The company’s long road to an official unveiling of a production model comes to an end at the New York show this spring. That follows years of development and capitalization, including important backing from a Saudi Arabia public trust fund. The company also underwent a name change, exchanging Atieva for Lucid in October 2016. Initially a battery maker, Lucid Motors’ current mission coincides with the name change.

Batteries remain an important part of what the Lucid Air is all about, thus the company will supply its own batteries for the sedan. For the last two seasons, Lucid batteries have powered all Formula E Season race teams. Notably, Lucid is both the designer and manufacturer for every participating race car.

A tablet-sized interface dominates the lower section of the center console.

Made in Arizona

Unlike Tesla, Lucid Motors will not build its electric vehicles in California. Instead, the company is constructing a plant in Casa Grande, Arizona, located halfway between Phoenix and Tucson.

Construction began in December with the first phase expected to be complete by the end of this year. Production of the new sedan should begin early next year with a modest 15,000 units projected for the 2021 calendar year.

Price Point and Amenities

Eventually, annual output could reach 100,000 vehicles, but we’re talking about a sedan with a top price point somewhere above $100,000. By then, Lucid may have another model or two in the mix, perhaps following Tesla by offering a mass-production sedan for about half the price. Also, there is some debate about whether a shorter range and one electric motor version will be offered from the onset. If so, we’re looking at a sedan with a far lower price point, but perhaps not much lower than the Tesla Model S.

Most of the other details about the sedan will emerge in New York. However, reports indicate that full LED lighting, alloy wheels, a leather interior, power front seats, heated seats, and an infotainment system with an oversized screen are on the docket. Other available features include a premium audio system, panoramic sunroof, an executive seat package, and an active suspension system.

Does the Lucid Air remind you of a competing model?

Looking Ahead

Of course, we’ll be following the Lucid Air’s debut in New York this spring and will share additional information about this sedan and the company. We’ll get clarity on a few things, including battery offerings, equipment levels, and perhaps price.

What’s especially interesting about Lucid Motors is that the company employed a stealth mode early on, just like Rivian. But Rivian has attracted far deeper and wider backing from a host of companies, including Amazon and the Ford Motor Company. Then again, Rivian’s first two models are a pickup truck and an SUV, vehicles in far greater demand than sedans these days. They’ll find their way in many fleets and the skateboard platform will also be used to power an upcoming Ford electric truck.

Photos copyright Lucid Motors.

9 Winners and Losers of 2019

January 7, 2020 by admin 1 Comment

Ram Trucks
Ram Truck brand sales topped 700,000 units sold for the first time in 2019.

It’s a wrap: 2019 is in the books. And if you’re thinking we’re a bit late sharing this information, hold on: the U.S. auto industry finished reporting its annual sales on Monday, closing out an extended period of news releases hyping the details.

We’ll cut to the chase and look at the winners and losers for the past year.

Winner: U.S. auto industry. This was supposed to be the year the industry fell below 17 million new light vehicles sold. Indeed, last year was also supposed to fall short. But neither year did. Yes, sales were down slightly year over year, by 1.6-percent, but managed to finish around 17.1 million units sold for the year. That’s five consecutive years of topping the 17 million mark. Importantly, there’s a chance we’ll see a sixth year for 2020.

Loser: American consumers. Stop right there: purchasing a new vehicle isn’t necessarily a bad thing. What’s problematic is the loan terms, which are averaging 68 months. Worse, is the availability of long-term loans of 72 and 84 months, respectively. That means there are a greater number of consumers paying for their new vehicle for seven years. What’s not always apparent are consumers rolling over their loan balances into a new loan. That’s a costly decision and very concerning.

Winner: Ram 1500 pickup truck. Yes, the Ford F-150 is the indisputable pickup truck king for four decades running. Indeed, the Ford F-Series recorded 896,526 units sold, down 1.41-percent versus the year earlier. The big news is the Ram 1500, which notched 633,694 vehicles sold, an increase of 18.01 percent. Not only is the Ram Pickup a big gainer, but it has displaced the Chevrolet Silverado as the number two seller in the U.S. Though Chevrolet has egg on its face by losing its place to Ram, GM still builds more full-size pickup trucks, selling 807,894 units of the Silverado and GMC Sierra combined.

Prius sales are falling, thanks in part to new models such as this Toyota Corolla Hybrid.

Loser: Toyota Prius Family. Hybrid sales continue to fall as fuel prices remain stable and well below historical highs reached in 2012 at $3.64 per gallon. With prices averaging $2.55 per gallon in December, models such as the Toyota Prius continue to lose appeal. Indeed, Prius sales fell by 20.84-percent in 2019 to 69,718 units. That’s less than half the Prius’ sold in 2012 and well below the peak 181K units purchased in 2007. Some of the sales have gone to other Toyota hybrid models as well as to new competitors, such as the Hyundai Ioniq.

Winner: Fiat Chrysler. The deal is all about done. That deal has Fiat Chrysler merging with the PSA Groupe to form the world’s fourth-largest automaker. FCA is a winner as it was the dream of its late CEO Sergio Marchionne to find a partner. The new company will realize economies of scale and be better positioned to work through vehicle electrification and autonomous driving, which are the two largest and costliest technologies of our time. Without a merger, FCA most likely would have been left behind.

Loser: Sedans. Remember when sedans (and coupes and convertibles) ruled the road? Sure, there were some pickup trucks and vans in the mix, but the family vehicle of choice was the sedan as well as its station wagon variant. Well, car sales continue to fall and now represent about one-quarter of the market. We said good-bye to the Chevrolet Cruze, Ford Taurus, and to the Hyundai Azera last year. Other Ford and Chevrolet models are also gone and the Volkswagen Beetle is no more. Likely, car sales will continue to fall for a few years before finally stabilizing. Manufacturers that stay in the segment may find the remaining market too good to ignore.

2019 Nissan Altima SR — Sedan sales are declining but new models such as this Nissan Altima are keeping the segment fresh.

Winner: Carlos Ghosn. The former Nissan and Renault CEO is now a free man. At least he’s freed from Japanese confinement as he snook his way out of the country and found his way to Lebanon. How he got there is a story for the ages and one that isn’t quite clear just yet. Regardless, Mr. Ghosn should stay out of jail as long as Lebanon ignores an international warrant and public opinion aligns with the executive as he tells his story. On the flip side, Nissan may prove the biggest loser, especially if the details of how it all went down raise serious questions.

Loser: UAW. The UAW appears the winner following a protracted strike with GM. Organized labor certainly looked strong as it kept GM plants shut for more than a month, representing the longest strike in nearly 50 years. The settlement yielded several gains for the rank and file, including forging a pathway to permanent employment for temporary workers. Also, GM created a shorter route to top-tier wages, agreed to keep open and transform one assembly plant targeted for closure, and maintained its strong health benefits for employees. So, how is the UAW the loser? The union failed to organize Volkswagen’s Tennessee plant, it remains shut out of Nissan factories in the U.S. and continues to lose members. Then there is the matter of a corruption scandal involving union brass. Several leaders accepted kickbacks from UAW vendors and contractors, enriching themselves at members’ expense. At least 10 individuals were involved, giving the UAW a black eye in the process.

Winner: New models. We like new and updated models. And we show our approval (or disapproval) in the way we carry out our purchase decisions. Several new models enjoyed success in 2019, registering big gains or significant sales as they debuted. Among them were the Audi Q8, BMW Z4, Cadillac XT4, Genesis G70, Nissan Kicks, and the Subaru Ascent. Other winners included the Ford Expedition, Honda Insight, Mercedes-Benz AMG GT, and the Mitsubishi Eclipse Cross.

The Audi Q8 debuted with robust sales to show for it.

2020 Auto Trends

We have a few predictions for 2020 to share, including our guess auto sales will narrowly top 17 million units for an unprecedented sixth consecutive year.

Further, we think the Chevrolet Corvette’s debut will be followed by announcements of even more powerful models. Moreover, Rivian Motors will get its first models to the market before the year closes, Ford and Volkswagen will form an alliance, and GM will not resurrect its Hummer brand. Lastly, Hyundai’s first pickup truck will arrive, Ford will keep the Mustang name on the Mach-E electric crossover, and Jeep will unveil its full-size SUVs.

Fab Five

1. UAW Strike Labors On – The UAW, itself embroiled in scandal, went ahead and launched a protracted strike against GM. Originally expected to end within a few days, the strike lasted longer than a month, causing the longest shutdown in the past half-century. GM lost billions of dollars during the strike, agreeing to keep one plant open and save some jobs. We think the labor victory will ultimately prove shallow as it’ll force GM to find additional ways to save money long term, with job loss gradually increasing.

2. Carlos Ghosn Debacle – Is he guilty or not? Former Nissan CEO Carlos Ghosn was jailed in November 2018 for a variety of charges, including fraud. What was shocking wasn’t so much the alleged scandal, but how the Japanese justice system treated the former executive. Ghosn was isolated, often without legal representation, and the charges against him seemed stacked. On the next to the last day of the year, Ghosn flew to Lebanon where he most likely will stay and avoid a return to Japan. The story isn’t over yet nor are the many twists and turns that defined this relationship.

3. FCA-PSA Merger – One year after its Sergio Marchionne died, Fiat Chrysler Automobiles has fulfilled one of the CEO’s important goals: a full merger with another automaker. FCA, the product of a big merger earlier this decade, is set to join forces with France’s PSA Groupe to form the world’s fourth-largest automaker. The deal should conclude by late 2020, but we may not know for a few more years the status of various brands (including the eponymous Chrysler) and certain models (the Dodge Challenger and Charger, for example).

4. Introducing An All-New Corvette – We won’t see a new Corvette for a few months, as production was delayed due to the strike as mentioned in our first story. What’s significant about the Corvette is that GM will finally transition its sports car to a mid-engine layout. As a result, even the base Stringray will immediately become the fastest Corvette ever. Also of note is the base price, as that will come in at under $60,000. Soon after the new model arrives, we should hear about follow-up versions with more powerful engines and the lofty price tags to go with it.

5. Ford Adds an Electric Mustang – Ford’s Mustang is America’s pony car, but it will soon be joined by an all-electric SUV. The Ford Mustang Mach-E is its name, an all-new model built on a separate platform, but sporting the iconic model’s name. With many Mustang styling cues, the EV gives a connection to the coupe, but the resemblance ends there. We dislike Ford’s decision and have followed the anger of Mustang faithful, including some who feel deeply betrayed. There’s still time for Ford to change the name, but we doubt it will.

Honorable Mention

Among the other stories of note for 2019 include Nissan’s drop in market share, the Tesla Cybertruck debut, the expanding financial backing for upstart Rivian Automotive, the electric truck/utility vehicle maker, and the ongoing shift away from cars to crossovers and trucks.

Stories about driverless cars and full electrification dominated; we’re also on the cusp of seeing the first Chinese automotive brand arrive stateside.

Possible Scenarios

Looking ahead, we expect many of the current stories to play out, with perhaps a few twists along the way. Auto Trends expects another blockbuster merger announcement in 2020 with perhaps Volkswagen and Ford tying the knot. A suitor for GM seems possible, but will Hyundai/Kia make the bold move to acquire or will it allow a Chinese company to jump in first? Finally, we’ll continue to see more car models die, but a few will hang on and likely thrive in a smaller market.

Image by Gerd Altmann from Pixabay

6 Year-End Car Buying Tips

December 28, 2019 by admin Leave a Comment

2019 Volvo V60

The best opportunities to purchase a new vehicle is during a manufacturer’s transition times, including model changeover, the end of a generational build, and as the calendar moves from December to January. The following six tips can save you money, enabling you to drive off in a new ride with your budget intact.

1. End of Model Year

Car manufacturers used to make the model year transition in October, by updating its full product line across the board. All-new models were timed to release in the fall, putting big pressure on manufacturers to get cars to dealers in time for seasonal advertising campaigns.

These days, new models come out throughout the year, allowing manufacturers to stagger releases. When a new model debuts, manufacturers typically place incentives on previous model year vehicles to help clear dealer inventories. Consumers should learn when the transition is being made and follow the manufacturer’s website to discover what incentives — including rebates and special financing – are in place.

2. Old Design Versus New Design

Car manufacturers usually keep a model for five or six years before a complete redesign is made. In the interim, minor annual refreshes are made along with a mid-product-cycle update that is typically accomplished by the fourth year.

A complete design change signifies a generation shift. Older vehicles are routinely discounted as manufacturers seek to clear out inventory. Discounts may be deeper than with the traditional model year change-over as automakers begin to promote the new model that will cost consumers close to the sticker price.

The all-new Jeep Gladiator (l) and the Jeep Wrangler (r).

3. Black Friday Shopping

There are times during the year when car dealers see a plunge in showroom traffic. One of those days is the Friday after Thanksgiving, the traditional start of the Christmas shopping season. It is called Black Friday, what used to mark the day when merchants began to make a profit for the year, which is represented by going from red ink to black ink on financial statements.

Black Friday has another meaning for car dealers: a dearth of car-buying customers. With fewer customers in dealer showrooms throughout Thanksgiving weekend and with the month about to close, consumers may find dealers are eager to negotiate to meet their quotas. Meeting those quotas means receiving more money from manufacturers for reaching their sales goals, something that would not happen if consumers stayed busy buying Christmas presents, not new cars.

4. From Christmas to the New Year

Just as Black Friday may present a special opportunity to strike a deal, the period between Christmas and the New Year can also be a good time to negotiate a new vehicle purchase. Such deals may last a few days into the new year as dealers and manufacturers will close their books no later than Jan. 4.

Car manufacturers are obsessed with market share and use these sales numbers for marketing promotion. As the year fades, automakers know which models or brands stand the chance of finishing on top and may promote these accordingly. For example, Mercedes-Benz, BMW, and Lexus have an annual battle for luxury vehicle leadership. Year-end discounting usually begins in Nov. and lasts until early Jan. You’ll also find financing and leasing deals.

5. Arranging Your Own Financing

You are in a much better negotiating position when buying a new car if you offer a 100-percent cash (all-cash) transaction. However, most of us cannot afford a heavy cash outlay, instead, we rely on loan financing or a lease to swing our deals. Car dealers offer financing, usually through the manufacturer’s financing arm as well as from banks.

Often, new cars come with incentives allowing buyers to choose between cashback or a low-rate loan. You can also arrange your own financing before you shop for a car. In this case, when you’re ready to buy, give the dealer your loan information and ask to have the rebate applied to your total. Credit unions typically offer the lowest financing rates, making it worth your while to come in with your own loan and take the rebate.

6. Rebates and Dealer Incentives

We already looked at rebates and financing, but there are other rebates available to consumers. Manufacturers like to woo customers with various enticements, but these special offers are generally not publicized. It pays to do your homework by studying the manufacturer’s website.

For example, the Toyota College Graduate Finance Program provides a $500 rebate on select Toyota models and sweetens that offer by writing loans with no money down and deferring the first payment for 90 days. Its program is open to recent college graduates, people that have secured a college degree within the past two years.

Also, the Ford Motor Company awards $500 bonus cash on most Ford and Lincoln products to active duty and recently retired military personnel and their families through its Military Appreciation program. Here, military retirees have up to 24 months after leaving service (separation) to remain eligible for the rebate.

Other manufacturers usually provide similar rebates and may also offer discounts to first responders, credit union members, suppliers, and their employees. These extra incentives are typically on top of other offers and may be applied to the purchase price of the new vehicle.

2019 Chevrolet Silverado LT

Saving Money

It isn’t that difficult to save money on your new vehicle purchase. Study the manufacturer’s website, visit local dealer sites, and keep in mind the special offers listed here when negotiating your price. It is possible to save thousands of dollars, especially on well-equipped models. Don’t allow cash offers to fall to the wayside by not having the dealer apply what’s available to you.

See Also — Care Tips for Your New Vehicle

Car Rental Primer: What You Need to Know

December 26, 2019 by admin 1 Comment

Whether you need a car to take a vacation or to borrow one while your car is getting repaired, a car rental can get you behind the wheel of a vehicle quickly. Car rental periods may range from hours to weeks or longer, with nearly any make or model available. Each car rental company establishes its own rules and guidelines, therefore we will examine the general practices of the industry and include tips on how you can secure a quality rental for less.

Car Rental Overview

The car rental industry is made up of multiple players, but three companies dominate. Enterprise, Hertz and Avis lead the industry and all three own other companies.

For example, Enterprise owns Alamo and National, Hertz owns Dollar and Thrifty, and Budget belongs to Avis. Other car rental companies include Advantage, Payless, Rent-a-Wreck, Fox, and Sixt. There are regional operators too and you also may be able to rent a car from your car dealer.

Shop and compare prices online; booking via the Internet will often bring you the best deals.

Flexibility Equals Savings

Expect to pay more for a car if you rent it on a weekday than on the weekend. Business travelers usually rent from Monday to Friday, driving up prices on those days. Weekend rates will often kick in on Friday and provide you with a car until Monday morning.

If you need a car for four or five days compare that cost to renting a car for an entire week. Usually, the rental rate for a week is less than a five-day rental. You should be able to return the car early without a penalty too.

Car Insurance Considerations

Besides the basic daily rate for renting a car, you will find that car insurance is offered. Rates vary, but can range from about $8 to as much as $30 per day reports Bankrate.com. Also, your credit card provider may have you covered should you get in an accident. Contact your provider and ask if damage and total loss are covered. If so, charge your next car rental to that credit card.

Your auto insurance company may have you covered as well. For just a few extra dollars per term, your rental car can be protected. However, a deductible will apply and your insurance rates may be affected if you file a claim. Moreover, it won’t cover the rental car company’s loss of use, a cost the company will charge you for as long as the vehicle is out of commission or until a replacement vehicle arrives.

To Upgrade or Not

You’ve asked for a compact car and for $37 per day that is a price you can live with. That said, it isn’t uncommon for car rental companies to bump customers up to a larger vehicle at no extra cost, putting you behind the wheel of a midsize sedan or an SUV instead.

A larger vehicle will drive up your fuel costs, so decline the offer if that matters to you. In any case, you will also want to refuel the car yourself as car rental companies may charge you more than twice the price of a gallon of fuel if you opt for this service.

Higher Mileage Vehicles

Rental car companies have typically turned cars over after 25,000 to 30,000 miles, selling these vehicles to the public or at auction. In 2006, Hertz held a car for about 10 months, but by 2012 it extended its hold to 18 months.
The car your rent today can easily have 35,000 miles on the odometer to well over 50,000 miles according to the Wall Street Journal. Rental cars are usually very well maintained, thus mileage is rarely a concern. You can, however, ask for a replacement car at the rental counter.

Vehicle Safety Check

Always check the rental car before you get behind the wheel and drive off. You are liable for damages and if an existing scratch, ding or dent is not noted on the rental agreement, you could be held liable.

Don’t overlook examining the tires as any car with higher miles should have had at least one tire replaced. Bald tires are dangerous, reducing grip when you need it most. Check the headlights, the turn signals, navigation and audio systems as well. Your agent will supply you with an emergency contact number before you begin your journey.

Surveying the car rental car market can help you find deals. Moreover, if you are a regular renter, join the company’s loyalty program for additional discounts and perks.

See Also — Your Rental Car Insurance Options

Photo Credit: By Clotee Pridgen Alloc…, CC BY-SA 3.0, Link

When is the Best Time to Buy a Car?

October 28, 2019 by admin Leave a Comment

One goal millions of American consumers would like to attain before the new year arrives is to purchase a new vehicle. There are about 270 million registered passenger vehicles in the United States with an average age of 11.8 years according to IHS Markit. That’s a long time to hang on to a car and for many people getting a new one has become a high priority, especially if their current ride is experiencing significant downtime.

The months of November and December provide very good opportunities for people to purchase a new vehicle. For one, the year-end sales rush is on and brands such as Lexus, Buick, and Mazda are among those making the push right now. For another, the 2020 models have arrived and dealerships are anxious to clear lots of 2019 inventory. If you do your homework thoroughly, you can slash thousands of dollars off the sticker price of some new models before incentives are taken. Yes, this could be the best time to buy a car, SUV or pickup truck.

There is some debate among experts about the best time to buy a car. Manufacturers and dealers usually insist, “right now!” — but that isn’t always the case. With an eye on the remaining weeks of the year ahead, the following dates, days, and even times of the week may help you in your new car shopping decision.

Black Friday

The day after Thanksgiving is known as “Black Friday” or when merchants offer tantalizing deals to help kick off the Christmas shopping season. The day is so busy that stores are packed with customers from Thanksgiving evening to late Friday night.

Pity the poor new car salesperson who looks out at the traffic-choked highway and observes potential customers whose minds are locked on getting a Christmas gift deal and on nothing else. Very few customers venture to dealer lots and that omission may cost them a big bargain.

In 2013, Consumer Reports surveyed the automotive landscape just days before Thanksgiving and found that several older, but still new models had discounts ranging from 15 to 25 percent off the sticker price. For example, that means a $55,000 full-size pickup truck might retail for as low as $45,000 if buyers were aware of the incentives.

Consumer Reports noted that Black Friday could be an especially beneficial day to shop as “dealers may even sweeten the deal further to clear their lots” and the day is also close to the end of the month as “dealers are more willing to negotiate to meet their quotas.” If Black Friday isn’t the best time to buy a new car, it certainly ranks as one of the top days.

Best Days of the Week

You may think that shopping for a new car on a weekend is the ideal time to buy. However, that usually isn’t the case unless it’s the end of the month and dealers are battling to meet their sales quota. Keep in mind that there’s no way to know if the dealership has met its quota. Don’t expect the salesman to greet you as you enter the showroom by saying, “Gee, we’re really glad you stopped by today. If we make a sale, we’ll meet our monthly quota!”

Monday may be the best day of the week to buy a car as most of the business has been conducted over the previous weekend. The lower the foot traffic, the more likely you’ll have increased negotiating power. This may be even more apparent in December when people are stepping up their Christmas shopping. For instance, if you shop on the Monday following the Thanksgiving weekend — also known as Cyber Monday — you may find showrooms are nearly empty.

At Year-End

Some people think that December 31 is the best day to buy a new car, especially as the calendar year comes to a close. Although it can certainly be a good day, the first few days of the new year can be a good time to shop too. Why? Because those days are counted in the previous year’s totals.

Dealer’s work with what is known as a “U.S. Sales Reporting Calendar.” For 2019, the sales month and year cutoff are on Thursday, Jan. 2, 2020. Many dealers are open on New Year’s Day and many will remain open late on Jan. 2, in a bid to get that final sale.

Dispelling Myths

Just as there is the best time to buy a new car there are some myths about timing your purchase that should be examined and dispelled.

For instance, some people believe that shopping for a new car on a rainy or snowy day is ideal for securing a bargain. On the contrary, many dealerships are packed with people whose plans were changed because of the foul weather.

Arriving at a dealership just as your sales associate is ready to leave for the day seems like a great way to snag a deal too. After all, she may have plans and is eager to get home. Don’t be fooled: salespeople are used to working well beyond their scheduled hours in a bid to secure a deal. Besides, it is the sales manager who ultimately approves or nixes any deal.

Get Prepared

Now that you’re ready to buy a new car, visit the manufacturer’s website to identify the vehicle and trim level that interests you. Contact at least three dealerships to obtain quotes. Learn what incentives are available, which is information that is typically found on the manufacturer’s website. You can arrange to finance on your own or do so through the dealership, but with the latter choice, you may forfeit cash back in exchange for cut-rate financing.

Photo credit Pixabay.

What You Must Do Following a Car Accident

September 14, 2019 by admin 3 Comments

Getting into a car accident is no small matter. Your problems and grief are compounded if someone was seriously hurt or killed. Regardless of the extent of the casualties, there are some things you must do immediately following a car accident.

1. Pull off the road.

If possible, pull off the road and as far off the shoulder as you can. Moving a car may not be possible due to damage and personal injuries. If the vehicles cannot be moved, ensure that oncoming traffic sees you. This may include asking other motorists to pull up, drop flares, turn on emergency signals, and stay with you until help arrives.

2. Check the condition of each passenger.

If the injuries are minor, then the urgency for medical help is not so great. Even so, you need to verify the condition of the people in your car as well as in the other cars. If you know first aid, then begin to apply it. Ask someone else to call for emergency assistance. The greater the injuries, then the more that time is of the essence. Ask for help from others who arrive at the scene. A medical practitioner can perform first aid and stabilize the injured.

3. Await the police.

Unless your accident is minor and is composed only of a fender bender, you’ll need to have the police on hand to file a report. That report should be available a few days after the accident, therefore obtain a copy to forward to your insurance company as quickly as possible. If you handle the accident without the police being present, then exchange all pertinent information, including driver’s licenses, registration, insurance information, and contact numbers. Write this information down, but if you don’t have a pen handy, taking pictures of the documents with your smartphone is another option. When talking with the police, never admit guilt. Simply explain your story and allow them to draw the conclusions.

4. Contact your insurance company.

Once all people have been stabilized and your report taken, contact your insurance company. If your car is not movable, you’ll need to call for a towing service too. Your insurer or your auto club should be able to send a wrecker. When talking to your insurance company, provide as much information about the accident as required. Your insurer will send out a claims adjuster to look at the car and make a declaration based on the damage. If there are personal injuries, you’ll be submitting those bills too. If you are not certain about how the process works, your insurance representative is there to help you. Ask questions and listen carefully for the answers.

5. Follow up.

Your work isn’t done even if after you receive a check from your insurance company. If the car is repairable, then you’ll need to take it to a collision repair shop to have it worked on. If possible, get at least three estimates. Compare the rates, check references, and go with the company with the best reputation. Certainly, price matters, but you need to get the job done correctly. If your car has been totaled, then you will need to shop for a new car. In the interim, your insurance company may have a rental car to keep you behind the wheel until you’re able to repair or replace your current model.

After Crash Considerations

When you have a car accident, you want to be made whole. Your insurer will help rectify the problem and will go after the other insurance company, if necessary. If the settlement amount does not suit you, then file an appeal with your insurer. In some cases, you may have to retain an attorney to ensure that your rights and financial position are protected.

Lastly, If you’re battling with personal injuries or someone you love has been hurt, then make sure you’re getting all the help required too. This is where a personal accident attorney may be able to intervene, to ensure that your disability claims and ongoing medical needs, as well as your financial losses, are addressed.

Photo credit: Pixabay.com

Car Manufacturers: Who Owns What?

August 31, 2019 by admin 2 Comments

This Buick Regal TourX was developed by Opel. Opel, once owned by GM,
is now a subsidiary of France’s PSA Groupe.

The global auto industry consists of dozens of brand names, but not all are marketed throughout the world. Opel is popular in Europe, but it is not sold in North America. Suzuki cars are no longer sold in the United States, but its Maruti Suzuki brand is a top seller in India. Industry consolidation has united or forged alliances for several car manufacturers and brands, including some owned by rival automakers.

General Motors Company

This Detroit, Mich., company has been around for more than 100 years. For decades, it was the world’s largest manufacturer of passenger vehicles since surpassed by Volkswagen and Toyota. GM’s four core North American brands are Cadillac, Buick, GMC, and Chevrolet. The company used to operate Saturn, Oldsmobile, Saab, Hummer, and Pontiac. Its other subsidiaries include Holden and GM Korea (formerly Daewoo), a joint venture with SAIC Motor, a Chinese company, and partnerships with other Chinese concerns. GM used to own Vauxhall and Opel but sold these two European brands to Groupe PSA in 2017.

Volkswagen Group

Based in Stuttgart, Germany, Volkswagen owns or has a stake in 12 brands including its eponymous Volkswagen moniker. It also owns Audi, Lamborghini, Porsche, Bentley, Bugatti, Skoda, and SEAT. It previously had a stake in Suzuki and joint ventures with two Chinese automakers. Volkswagen also owns Ducati, a motorcycle manufacturer, and MAN, a commercial vehicle brand.

The Plymouth brand is gone, but this 1964 Belvedere reminds us of what once was.

Fiat Chrysler Automobiles

Fiat Chrysler Automobiles represents the merger of two well-established automotive manufacturers. Its North American brands include Chrysler, Dodge, Jeep, Ram, and Mopar. In the US, it also manages the Fiat and Alfa Romeo brands. Chrysler previously owned several other brands, including Plymouth, Imperial, Eagle, and DeSoto. Other FCA properties include Ferrari and Maserati. The automaker has partnerships or stakes in companies based in China, Turkey, and India.

Toyota Motor Corporation

Toyota and Lexus are the two North American brands managed by the Toyota Motor Corporation, a Japanese business. From 2003 to 2016, Toyota also operated the Scion brand. The company is one of the largest conglomerates in the world, an entity with stakes or affiliate agreements with hundreds of companies. Toyota has a controlling interest or a stake in several automotive brands including Daihatsu, Hino Motors, Noble Automotive, Subaru, and Isuzu.

BMW AG

The Germany-based BMW AG entity is best known for producing BMW brand vehicles. It also owns Mini, a British brand it obtained in 1994. In 1998, BMW acquired Rolls-Royce Motor Cars, another British marque. The company also produces motorcycles under the BMW name.

Renault-Nissan-Mitsubishi Alliance

Formerly known as the Renault-Nissan Alliance, the current set up now includes Mitsubishi. Originally established in 1999 whereby Renault and Nissan have investments in each other, Mitsubishi joined in 2017 when Nissan took a stake in it. Today the alliance is a strategic partnership that enables these companies to partner for vehicle development. Besides the three monikers, there are other brands associated with the alliance: Alpine, Dacia, Datsun, Infiniti, Lada, Renault Samsung Motors, and Venucia. The alliance also has stakes in or partnerships with Daimler, AvtoVAZ, and China’s Dongfeng Motor.

This Mini Countryman is a British model built by a German manufacturer.

Ford Motor Company

Besides the Ford brand, this Dearborn, Mich., car manufacturer owns Lincoln and previously had Mercury before shutting down the latter in 2011. The company has shares in Mazda and Aston Martin, and previously owned Jaguar, Land Rover, and Volvo. Other Ford partnerships include with Brazil’s Troller, an SUV manufacturer, China’s Jiangling Motors, and Changan Ford.

Daimler AG

German car manufacturer Daimler’s best-known brand is Mercedes-Benz. The company also produces Smart brand vehicles, Mercedes-AMG performance models, and owns the ultra-luxury Maybach marque. Daimler is heavily invested in commercial vehicles with Freightliner, Mitsubishi Fuso, Thomas Built Buses, and Setra under its control. Daimler also has shares in the Beijing Automotive Group and MV Agusta.

This Infiniti QX30 is the result of a partnership between Nissan and Daimler. The tiny hatchback shares its platform and key components with a Mercedes-Benz model.

Hyundai and Kia

Hyundai and Kia are a pair of South Korean car manufacturers, with both companies comprising the Hyundai Kia Automotive Group. That group formed in 1998 when Hyundai gained a controlling interest in Kia. Hyundai’s share now stands at about 33 percent, but the alliance continues. Hyundai, Kia, and Genesis are the three brands associated with this group.

Cooperation and Collaboration

Apart from outright stakes or full partnerships, car manufacturers will often collaborate to build components or explore new technologies. It’s a cost-saving move that can benefit the consumer through shared expenses spread across more vehicle lines. We’ll see more of this in the coming years, especially as the cost of developing autonomous and electric vehicles become too prohibitive for most manufacturers to undertake alone.

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