NEW CARS

Should I Buy a Car Now or Wait?

December 8, 2017 by admin 2 Comments

A new car, truck, SUV or van may be in your future.

Besides reviewing cars on a regular basis — typically one or two new models week after week — I regularly dispense advice to friends who are shopping for a new or late model used car. Certainly, timing is everything when it comes to buying a car, but there are various times of the year when making a purchase decision is simply the right decision.

And to loosely paraphrase Queen Esther, “and such a time is this one.”

December is when we’re thinking about Christmas, especially decorating the home, preparing special meals, and throwing parties. But if you’re in the market for a car, you should seriously consider setting aside some time to find one as you enjoy the festivities. So, put down the eggnog and spend the next few minutes considering what I have to say.

Why is December so important? For two reasons:

1) dealers, with much manufacturer backing and incentives, want to clear their lots to provide space for new model year vehicles, and

2) manufacturers push hard to increase year-end sales in an effort to gain mark share. Yes, there are bragging rights going on for a number of categories, including best-selling car, truck, SUV, and so forth. The winners then advertise those results, thinking that you’re more likely to choose a best seller then consider some other model (often, consumers DO think that way).

It may seem counterintuitive for manufacturers to reduce their profits to increase market share, but that’s the way things work. Don’t feel bad for them, however. Most manufacturers can handle the big push. You just need to know how to save money when shopping for a car.

Here are some tips to keep in mind while shopping:

1. Year-end sales actually end in early Jan. Manufacturers post monthly sales, but those “months” don’t exactly correspond to the calendar. For the selling year, the calendar ends a few days into the next year. For example, 2017 new auto sales conclude at the end of business on Jan. 2, 2018. This means most dealerships will be open on New Year’s Day and stay open late the following day.

2. Bonuses are posted front and center. Year-end bonuses are advertised where you can see them: on the manufacturer’s website. And on dealer sites too. This week, I’m driving a 2018 Hyundai Elantra, so I went to the manufacturer’s website to see what specials are offered. Right off, there are $3,500 in cash offers (plus separate lease and finance deals) — $2,500 in retail bonus cash, $500 in holiday cash, and $500 in HMF cash. This means you can purchase a new Elantra SE for just $13,450. What a fantastic deal on a compact sedan!

3. Not all offers can be combined. Just because an offer is published, doesn’t mean you qualify for them. For instance, the Hyundai offer for $500 HMF cash means you accept the manufacturer’s financing arm’s standard financing rate instead of its promotional rate. That promotional rate currently stands at 0-percent APR financing for 72 months PLUS a $1,000 HMF bonus cash offer. Here, you’ll get the promotional financing rate and apply bonus cash to your down payment, but you won’t get the extra $2,500 for taking the special financing offer. Here’s my recommendation: arrange your own financing BEFORE you shop for a car, then take whatever offers are available. By the way, the special offers are usually on dealer stock only — not on the model you order.

4. You’re not eligible for every offer. Read the fine print of every offer you find. On closer inspection, you may find restrictions. One of the biggest restrictions says something like this, “…subject to credit approval from XYZ Finance and open to very well qualified buyers only.” This means you need a high credit score, typically at least 700, but maybe 750 or 800 or more. Know your score before you shop: you can get a rough estimate of your current score by visiting CreditKarma.com.

5. Research and shop online. The Internet has made it easier for shoppers to purchase a car. Dealers share their inventory online and the vehicle you want can be viewed thanks to numerous photos and usually a video. If you see something you like, then reach out to the dealer. Arrange a test drive only when you’re ready, but don’t wheel and deal at the dealership. Do all your negotiating online and check out other dealer inventories. This also means knowing what vehicle you want — down to the make, model, and trim level.

6. You’ll make more money selling your trade privately. Yes, I know: selling a car to a private party is a pain! It can also prove dangerous if you’re alone and don’t know the person coming to your home to test drive the car. That said, if you can sell privately, you’ll likely fetch more money than you would get from the dealer. Regardless, when deciding on a purchase price for a new vehicle, don’t discuss the trade-in until AFTER you make a deal. Sales staff love to confuse things by bundling both transactions under one deal. You’ll lose money if you allow this to happen.

7. Don’t wait as deals disappear and inventories shrink. The sooner you can make your purchase decision, the better. Dealer inventories on outgoing model year vehicles are dwindling. Incidentally, these vehicles typically have the best offers. If your schedule is so full and you can’t seal a deal before Christmas, the week between the Christmas and New Year’s Day holidays can work, especially if you’re looking for a new model year vehicle or a late model used car.

Let’s Make a Deal

Buying a vehicle should never be rushed! Avoid as much pressure as possible — sales staff are wheeling and dealing — their bonuses rely on making a deal. To them, you’re a deal just waiting to happen. Be prepared for an emotional onslaught.

If you’re purchasing a late model used car, insist on a vehicle history report. Even then, they’re not comprehensive or perfect. (Here is an excellent article that details the limits and sometimes the pitfalls with vehicle history reports — Limitations and Problems with Carfax or any Vehicle History Report).

Know what warranties are offered (e.g., the balance of the new car warranty, powertrain, and corrosion) and any special guarantees with your vehicle.

Finally, there’s nothing wrong with taking a friend with you when you purchase a car, especially if you are single. Not all dealers “get” women, with some sales staff directing their conversation to the man, even if it is the woman making the deal. That’s one more reason why it is important to get your final price in writing online BEFORE heading to the dealer, then telling your dealer contact that you’re the one he or she must talk with, not the individual with you.

Are Pull-Ahead Lease Offers a Good Deal?

July 6, 2016 by admin 4 Comments

Getting out of a lease early the no-cost way.

2016 Toyota Tacoma

The call came out of the blue: “Mr. Keegan, this is “John” from XYZ car dealer. We were wondering if you are interested in getting out of your current lease in exchange for moving on to a new vehicle now?” That call came seven months before our current lease expires or well before the usual 90 days “pull-ahead” lease offers.

What are pull-ahead lease offers? Quite simply, it is a dealer or manufacturer plan to allow you to end your lease early without an early termination fee and with the sole purpose of getting you into a new vehicle. Before you can make a move to a competing brand or dealer, a representative reaches out to gauge your interest.

Your Pull-Ahead Offer

For people who regularly lease their vehicles, getting out of a current lease can certainly be appealing. Most leases run for about three years and you may be ready to make a move. However, without a pull-ahead offer, you’re stuck unless you pay costly early termination fees.

2016 Chevrolet Camaro SS

Fortunately, you don’t always have to wait for “the call” to get out of your lease. There are two other ways to learn if an early lease termination program is available:

1. Visit the manufacturer’s website. Car manufacturers routinely push pull-ahead programs, although that information isn’t always published front and center. Head to the manufacturer’s website and you’ll usually see current offers prominently displayed. However, to find pull-ahead offers, you may have to access the “shopping tools” or “local specials” tab to learn more.

2. Head to the dealer’s website. While you’re still logged in, head to the website for the dealer who arranged your current lease. If there is a pull-ahead offer, it should be prominently listed on the front page or at least included on its financing and leasing section. But don’t give up if you don’t see an offer — contact the dealer’s business office directly. If you no longer live in the general area, find a local dealer’s website and do the same.

If you are contacted by a dealer representative as I was, you don’t need to make your decision immediately. Instead, ask the representative for his or her name and phone number as well as for the offer expiration date. Yes, there may be a narrow window to take advantage of the offer.

2016 Audi A3 Sportback e-tron

Consider getting out of your lease if any of the following pertain to you:

1. Your vehicle needs have changed. That cute little roadster was sweet while you were dating, but you have since married and now a baby is on the way. Whatever you’re currently driving may not suit your present needs.

2. You want to lower your monthly payments. For some reason you got carried away and leased a vehicle that costs more than what you can afford and is also more than what you need. Put the struggle behind you by shopping for a new vehicle with reasonable lease payments.

3. You have exceeded your allotted miles. If you have exceeded your allotted miles or will do so prior to lease termination, then you may have to pay the 20 cents per mile overage cost. On the other hand, you can negotiate this cost away as part of the pull-ahead lease offer.

4. Your tastes have changed. Life circumstances are not the only reason why you may want out of your current lease. The car you have isn’t what you want to drive at this stage in your life. Terminating the lease early through a pull-ahead program will give you the freedom to make a new choice now.

2016 Chrysler 200C

Understand the Offer

There is no “one size fits all” pull-ahead offer from the manufacturers. You need to understand the details to ensure that none of the remaining payments are charged to you.

Further, whatever lease offers are provided by the manufacturer at the time should be available for you. For example, if a $1,500 bonus on leases is offered, you can then apply that bonus to your next lease.

Again, make sure that the program pays off your current lease and doesn’t add fees to your new lease.

Pull Ahead or Wait

As for our family, we’ve decided to wait until early fall before making a decision about our next vehicle. In the meantime, we’ll enjoy our current lease while carefully weighing our options.

Either way, we’re in the driver’s seat and will do what every consumer should do when buying or leasing a new car — making an informed decision.

See Also — Right Now: Lease a Used Car

Photos copyright Auto Trends Magazine.

Consumer Car Loans Reach Record Lengths

June 8, 2015 by admin 3 Comments

Hyundai Sonata

New car loan terms are longer than ever before.

Earlier this month, Experian Automotive announced that the average length of both used and new car loans had increased by one month to 62 and 67 months, respectively. These loan term averages are at record levels, but consumers are eagerly embracing the extended loan terms.

Indeed, Experian noted that 29.5 percent of all new car loans are for 73 to 84 months, representing an 18.6 percent year-over-year increase against the first quarter of 2014. Moreover, used car loans for the same lengthened term and period were up by 14.2 percent, representing 16 percent of all such loans.

Negative Equity Implications

Despite the increasing shift to longer term car loans, Experian’s senior director of automotive finance, Melinda Zabritski, downplayed worries that such loans might have an adverse affect on consumers. “Most longer-term loans help consumers keep monthly payments manageable, while allowing them to purchase the vehicles they need without having to break the bank. However, it is critical for consumers to understand that if they take a long-term loan, they need to keep the car longer or could face negative equity should they choose to trade it in after only a few years,” explained Zabritski.

Experian noted that the average amount financed for new car loans has also set a record. In the first quarter of 2014, consumers financed an average of $27,612. But that amount rose by $1,099 to $28,711 one year later. Monthly payments increased too, rising from $474 to $488.

As a point of comparison, used car debt is coming in lower, at least $10,000 below new car indebtedness. However, those obligation levels are on the rise, increasing from $17,929 to $18,213. Furthermore, the median interest rate for used car loans was 9.17 percent compared to 4.71 percent for new car loans.

GMC Sierra Denali

Longer loan terms mean affording trucks such as this GMC Sierra Denali.

Consumers with excellent credit routinely qualify for the best loan terms. To be sure, those low teaser rates offered by the car manufacturer’s financing arms are reserved only for people with the highest credit scores.

And with an average credit score of 713 for the new car loans financed during the first quarter of this year, that number is about 100 points lower than consumers with excellent credit, underscoring the higher average interest rate. Used car loan borrowers came in even lower, with a median 643 credit score. That’s not far above the 620 credit score that some consider subprime.

Underwater and Sinking Fast

Not everyone is convinced that the trend to longer loan terms is a good one.

For instance, Paul Kirkbride, SVP of CU Solutions at CU Direct noted that there are certain financial implications consumers should keep in mind. Specifically, they may find themselves underwater (i.e., owing more on their car than what it is worth) as vehicles depreciate an average of 13 percent annually according to NADA.

Said Kirkbride, “If a borrower didn’t make a down payment and selected a longer term, the risk is the borrower will possibly need to roll negative equity from one car loan into another when they trade in the car, or worse, should the borrower need to sell the car, they’ll have to come up with the difference to pay off the loan.”

He also pointed out that credit unions typically work with people who have the financial means and creditworthiness to afford such loans. Such consumers usually choose the extended loans for convenience purposes.

2013 Buick Encore

Interest rates for late model used cars average above 9 percent.

Looming and Costly Repair Costs

Ed Snyder, President of Oaktree Financial Advisors foresees a problem that consumers may overlook. In particular, he points out that repair costs tend to mount as a car ages.

“If you take a longer loan, like 72 months, you are going to rack up some miles by the time your loan is paid off. If you average 15,000 miles per year you’ll be closing in on 90,000 miles – and that’s on a new car. If you buy a used car you’d have even more miles on it at that point. This is certainly at the mileage and age where your car could need some expensive repairs. It could easily need some work on the air conditioning or new tires or other repairs. You’ll have to foot that bill on top of the car payment that you still have,” said Snyder.

The longer term new and used car loans may eventually have an adverse impact on new car sales down the line as well. Said Snyder, “These longer loan lengths could end up meaning fewer cars sold in the future as people are forced to hang onto their cars longer since they are still paying on them.”

Credit and Car Loans

Astute consumers can and should keep tabs on their credit by obtaining copies of their three credit reports. Those reports, assembled by Trans Union, Experian and Equifax are available for free once annually at AnnualCreditReport.com. Information in these reports can affect credit scores, a three-digit number that is sold separately.

Shopping around for a car loan, putting more money down and choosing a shorter loan length can reduce your monthly payments as well as curtail your overall costs. Explore your options before committing to a car loan that you may have for the next six, seven or eight years.

Infotainment Systems Take a Beating in Latest Consumer Reports Survey

October 29, 2014 by admin 1 Comment

The Consumer Reports 2014 Annual Reliability Survey is out, what paints a highly critical and negative picture of in-car technologies, particularly infotainment systems. Such systems typically provide audio, information and navigation access, but often do not deliver as promised. Instead, users may find these systems confusing, unreliable or simply unworkable, leading Consumer Reports (CR) to say that they present a “growing reliability plague” for manufacturers.

Consumer Reports took exception with the Infiniti QX60.

Problem First-Year Models

CR especially pointed to flaws found in first-year models for several brands, including Cadillac, Ford, Honda, Infiniti, Fiat, Jeep and Ram, with each having numerous bugs and glitches in their infotainment systems. CR surveyed owners of more than 1.1 million new vehicles, identifying 17 problem areas. Topping the list were in-car electronics, easily outpacing consumer complaints in other areas.

As before, CR found that the Asian brands usually outperformed all others with the American brands finishing far down the pack. Most European brands were in the middle of the pack or toward the end. Audi, however, continues to excel, finishing in the fifth spot for the second consecutive year. Porsche took the ninth position.

Lexus, Toyota, Mazda and Honda nabbed the top four spots. Following Audi, Buick, Subaru, Scion, Porsche and Kia rounded out the top 10. Fiat Chrysler, however, took the last four spots of the 28 brands surveyed with Dodge, Ram, Jeep and Fiat rounding out the group.

And if you think technologies are the sole problem, CR insists otherwise. “Infotainment system problems generally don’t exist in a vacuum,” said Jake Fisher, director of automotive testing at Consumer Reports, “A close look at the results suggests that cars with a lot of in-car electronic issues usually have plenty of other troubles, too.”

Chrysler Defies the Odds With Strong Sales

Despite the apparent quality issues, Fiat Chrysler continues to thrive. Indeed, the Chrysler Group has experienced 54 consecutive months of year-over-year sales increases through Sept. 2014. Chrysler Group sales are up 15 percent for the year, nearly three times the industry average. The Chrysler Group is seeing Jeep sales up by 45 percent and Ram sales up by 25 percent for the year.

For its report, CR gathered data for 248 models, looking at 17 potential problem areas. From its survey it has been able to accurately point out future problems owners may have with their new vehicles as well as to spot trends.

One trend that isn’t boding well for Infiniti is the reliability of two of its models: the new Q50 sedans and the QX60 crossover. Both models have had their share of problems, causing Infiniti to take the largest plunge of any brand, falling from 6th place last year to the 20th position this year.

Improved Infotainment Systems

CR did find that some manufacturers are making changes that have made their infotainment systems easier to use. CR has criticized Ford and Lincoln for their technologies, but the two Ford Motor Company brands have made steady improvements ever since the organization slammed the 2011 Ford Explorer’s quality. While Ford rose three positions this year, Lincoln had the largest year-over-year increase of any brand, jumping 12 positions to the 15th spot.

Mercedes-Benz fell 11 spots on the heels of introducing its CLA-Class sedan and high-end S-Class. A few of its models, including the GLK utility vehicle and the E-Class V-6 sedan, outperformed the market.

Poor Performers by Segment

American manufacturers need to pay closer attention to certain segments where these vehicles are not performing up to par. CR found that the subcompact Chevy Sonic, the compact Chevy Cruze, the compact Ford Focus and the compact Dodge Dart turbo each performed below average. Large pickup trucks have been a problem too with the Chevrolet Silverado, GMC Sierra and Ram 1500 each performing below average.

Auto Trends: Average Age of Cars is 11.4 Years

June 10, 2014 by admin 4 Comments

IHS Automotive issues latest snapshot of vehicles in operation.

Classic cars such as this Chevrolet Corvair convertible
are among the vehicles Americans still drive today.

That aged clunker you are driving might be in good company after all. On Monday, IHS Automotive released its latest analysis of the 252 million passenger vehicles registered in the United States and found that the average age for this “fleet” is 11.4 years as of 2013. That number has held steady, the first time in five years that the average age did not increase.

IHS Automotive VIO

IHS Automotive (inclusive of Polk) says that there are more than 252,700,000 light vehicles in operation (VIO) in the United States, increasing by 3.7 million in 2013. Two reasons for the rise in registered vehicles are: an increase in automotive sales for 2013 and a decrease in scrappage rates. Scrappage describes automobiles that are discarded, with registrations canceled and the cars sent to junkyards.

IHS data also separates cars from light duty trucks. In both categories the average age was 11.4 years, reflecting a slight increase in the age of pickup trucks.

“In our history of tracking, we have seen a gradual increase in the average age of vehicles on the road,” said Mark Seng, director, aftermarket solutions and global aftermarket practice leader at IHS Automotive. “This year, we’re seeing somewhat of a plateau in the market, and expect it to remain over the next few years, without a major change in either direction. We attribute this to a number of factors, including the economy and the increasing quality of today’s automobiles.”

That increased quality has consumers shopping for cars that they intend to keep for many years, perhaps much longer than what they would have considered a generation ago. Indeed, consumers are also financing their cars longer, with 72-month auto loans now commonplace.

auto loans

Rising Average Age

IHS forecasts that the average age of passenger vehicles will continue to rise, hitting 11.5 years in 2017 and 11.7 years in 2019. Notably, the volume of vehicles aged 0 to 5 are expected to increase by 32 percent over the next five years while vehicles aged 6 to 11 will decline by 21 percent. Vehicles that are at least 12 years old are expected to increase by 15 percent by 2019.

The latter figure will most likely be of interest to aftermarket companies and repair outlets. The first group may look for ways to help consumers keep their cars relevant, by selling to them navigation systems, backup cameras and security systems not found in older cars. The second group is composed mostly of garages and mechanics, the people that can keep old vehicles functioning for many years.

Average Price New Car

Another factor that may be keeping many Americans out of the new car market is the average price of a new car. That average price was $32,086 in 2013 reports AOL Autos although we on Auto Trends have found quite a few new models ranging in price from $15,000 to $20,000. Small cars all, but within the price range of many new car shoppers.

Fiat makes cars that are on the lower end of the price spectrum.

Recent News

MINI Hardtop 4 Door Drops Cover

Capacity Unconstrained: Kia Plans Mexico Factory

Downward Displacement: Four Cylinders for Porsche

Source Interlink Media Rebrands as The Enthusiast Network

Life in the Fast Lane: Tales of an Auto Guy

April 7, 2014 by admin Leave a Comment

Im an auto guy. Yep, that is the truth. Except if you inspected my hands you’d see that they’re on the softer side — heck, some women spend more time working on cars than I do.

Time and Talent

It isn’t that I don’t like tinkering with cars. I do. What I don’t have is much time to spare. Besides, whenever I lift the hood of today’s cars I admit that Im outgunned in the engineering and technology departments. One wrong move and you’re looking at a $5,000 replacement part for a bi-turbo engine plus labor.

So, if you cant or wont fix ’em, then drive ’em. And over the past year I’ve had the pleasure of getting behind the wheel of nearly 60 new vehicles ranging in size from the Nissan Versa Note to the Ram 1500 Laramie Longhorn. Plenty of family vehicles, a handful of sports sedans and an assortment of performance models including the Chevy Camaro, Subaru WRX, and the Porsche 911 4S.

test ride mashup

Ive been often asked, how did you get this job? Well, the job found me. Or at least it seems that way.

I had been writing copy for several aftermarket parts sites and started an auto blog in 2006 before launching Auto Trends in 2008. Auto Trends caught the attention of a pair of regional magazine editors who then hired me. Next, I landed gigs or assignments with other publications — online and offline. Press fleet access soon followed.

Most of my work, however, is posted to Auto Trends one of the busiest automotive sites that has not been gobbled up by a major media outlet. At least not yet.

When a new car arrives on site, I shoot pictures within the first day. I have my favorite places to snap photos, including various parks, housing developments and commercial districts. But, I have also parked cars in the middle of my street and snapped away. Yes, my neighbors understand.

Take a Picture, Please!

I take about 50 pictures then choose the best six to eight shots for each article. Funny, my iPhone sometimes delivers better photos than my Canon SX40.

If I could drive every day, I would. There is something about getting behind the wheel of a new car and heading out. I live in the suburbs, but most of my driving is on the back roads of central North Carolina. These are two-lane roads that are thinly populated, dotted with softwood forests, family farms, and other green expanses.

I have my favorite routes and prefer to drive up to two hours at a time. Especially when I’m behind the wheel of a performance model.

In all, I try to drive each car for at least five hours or for about 250 miles. Somehow, even when two cars are in my possession for the week, I manage to get the job done.

I also keep a sharp eye out on the weather black ice and poorly plowed roads are common in my area. And this winter was an especially tough one — I stay put when the roads are treacherous.

Technology as Tested

I have to force myself to use the entire infotainment system with each vehicle. Admittedly, if SiriusXM satellite radio is present, Im hooked and could care less about much else. Navigation systems range from the fairly good to the bad and of course to the downright ugly. In a pinch I always turn to my iPhone mapping for directions as I know that I’ll get a fast and accurate response. And no dropped connection!

I give props to manufacturers that provide an abundance of storage compartments, sufficient beverage holders (that actually hold bottles in place), the requisite USB connections, and a configurable instrument panel. Three-pedal driving ALWAYS excites me — short throws, please.

Demerits are issued for thin or oddly formed drivers seats, rear seats that don’t fold down except when the front seats are pushed completely forward, and for too much torque steer, as well as for imitation anything. Okay, imitation leather is fine if it doesn’t look or feel like plastic. And I understand that plastic dashboards in $17,000 cars are a given most are nowhere near as abhorrent as what manufacturers were serving up in the 1970s and 1980s.

Style is immensely subjective and I usually hold close to the vest my design opinion about most vehicles. It can be difficult to maintain a dispassionate stance when the look is polarizing or downright ugly. I learned long ago that people take such criticism personally how dare you call my baby ugly! Relax, the Pontiac Aztek was discontinued long ago. And Subaru fixed the face of the B9 (Tribeca). Shudder.

I’ve driven cars from most of the major manufacturers, but I am still looking to expand my pool. No, I have no expectations that a Bugatti Veyron will show up one week If I ever get to sit in one Id be happy to ride shotgun and let a professional race car driver take us around the track. I think I can handle whatever comes my way, but the multimillion dollar price tag and the responsibility that comes with it terrifies me.

Just an Auto Guy

Most of my car reviews are posted within a week of completing my drives, at least on Auto Trends. Elsewhere, separate reviews with a unique perspective are published weeks to months later. My enthusiasm for driving and reporting about cars has not waned and I’m just as happy testing a mass-produced model as I am a BMW M6. Well, maybe not.

See Also — Subaru Ascent: LA Auto Show Reveal

Young Car Buyers Eager to Own New

January 30, 2014 by admin 3 Comments

Good news for car manufacturers.

For the second time within a week, a survey has revealed that young car buyers are ready to get into the new car game and buy one. Thats the findings of the J.D. Power 2014 U.S. Automotive Media and Marketing Report, based on a survey of consumers 25 years old and younger.

Young Consumers Want Cars

young driver The J.D. Power report aligns with the findings of a report from Deloitte. Like the earlier report, J.D. Power found that consumers do want to buy new cars, essentially refuting the assertion by some that young adults are much less interested in owning a car, particularly a new one.

And it isn’t just any vehicle that young buyers want. Powerful acceleration and responsive handing is desired by 41 percent of young car buyers compared with 36 percent for the general population. They also prefer to drive on roads with hills and curves, with 22 percent expressing their interest compared with 13 percent of all car buyers.

Image is Important

One-third of these consumers want their vehicles to stand out in a crowd, compared to 20 percent for all car buyers. Further, 19 percent of car buyers say that others can tell a lot about them by the vehicle they choose. That compares with 10 percent of all car buyers.

It shouldn’t come as a surprise that young buyers want to personalize their vehicles too. A full 27 percent are inclined to go with options and accessories compared to 20 percent for all ages.

One Million Consumers

Arianne Walker, senior director, automotive media & marketing at J.D. Power noted that young consumers have expressed increased interest in these attitudes and sentiments, rising by 6 percent since 2009. These are the points that should be kept in mind by car manufacturers as buyers under the age of 25 presently account for 6 percent of new vehicle sales. Thats approximately 1 million car buyers in todays market.

That demographic has varying interests in what types of vehicles they’re interested in too. Certainly, B- and C-segment models such as the subcompact Ford Fiesta and the compact Toyota Corolla are considerations. More affluent buyers are also gravitating toward the premium and luxury brands, and would consider a Buick Regal or an Audi A3 instead. Serving up a variety of vehicles to this age group can help manufacturers win new customers.

Recent News Stories

University of Michigan: American Car Ownership Falls

Chicago Auto Show Debut: 2015 Lincoln Navigator

Deloitte Report: Young Adults Want to Buy Cars

Polk Automotive Awards Places Ford First Again

University of Michigan: American Car Ownership Falls

January 27, 2014 by admin 4 Comments

Car ownership may have finally peaked, study reveals.

Americas love affair with cars remains, but it isnt as strong as it once was. Research conducted by the University of Michigan Research Transportation Institute (UMTRI) has found that the number of US households doing without a car has fallen in each year since 2007. The study comes on the heels of earlier UMTRI research that revealed Americans own fewer light-duty vehicles, are driving them less, but also consuming less fuel.

At the Wheel. — The number of homes without a car is on the rise.

Falling Car Ownership Rates

UMTRI took a look at a trend spanning from 2005 to 2012, noting near-consistent slippage in the number of US households owning light-duty vehicles (LDVs) beginning in 2007. LDVs compose cars, minivans, sport utility vehicles, and pickup trucks. Of the 30 largest US cities, 21 saw an increase in the number of households not owning a car, including the top 13 cities.

The proportion of households without a vehicle is likely influenced by a variety of factors, said Michael Sivak, a research professor at U-M. Examples of such factors include the quality of public transportation, urban layout and walkability, availability and cost of parking, income and price of fuel.

Urban Residents and Car Ownership

New York City has long led the list with the number of households not having a vehicle, coming in at 56 percent in 2012. Seven more cities have at least a quarter of households without a vehicle including Washington, DC, at 38 percent, Philadelphia at 33 percent, and Detroit at 26 percent.

Each city is located in the congested northeast or upper midwest corridors, with the exception of San Francisco. At 31 percent, San Francisco’s rate matched Baltimore, trailed Boston’s 37 percent and was ahead of Chicago’s 28 percent.

The Cost of Car Ownership

Analysts have been looking at the cost of car ownership for many years, a factor that can also contribute to the fall in car ownership. Indeed, in 2012 Consumer Reports (CR) found that over the first five years of a median cars ownership, it costs more than $9,100 per year to own one. Cars such as a Mini Cooper averaged $5,800 per year while large SUVs cost $13,000 or more per year to own.

In its survey, CR looked at six categories of car ownership led by depreciation representing 48 percent of ownership costs followed by fuel at 24 percent. Interest on loans at 11 percent and insurance at 10 percent followed. Taxes, as well as maintenance and repairs, accounted for 4 percent each.

CR also looked at one- and eight-year owner costs to show a drop in those costs over time. However, depreciation remains the largest cost throughout, accounting for 57 percent for the first year, gradually falling to 43 percent for the eighth year.

Desiring Affordable Transportation

Americas love affair with cars has long been based on affordable transportation. With the economy struggling to find footing and with consumers seeking to contain costs, the trend toward fewer vehicles on the road seems assured. That some households are doing without a car at all usually points to urban living where car ownership is as much as a hassle as it is a significant cost.

Notably, what often isn’t included in these reports is consumers attitude towards car sharing. This is an option that allows people to use a car for as long as they need it, from just a few hours to a few days. Thus, people have access to a vehicle without the burden of car ownership and of parking as is the case for city dwellers.

Recent News Stories

Chicago Auto Show Debut: 2015 Lincoln Navigator

Deloitte Report: Young Adults Want to Buy Cars

Polk Automotive Awards Places Ford First Again

Five Top Selling Large Crossovers of 2013

White Remains the Top Color Choice For New Cars

October 28, 2013 by admin 1 Comment

The most popular new car color is white according to PPG Industries. PPG is a leading coatings and speciality products company for the auto industry, releasing its latest annual automotive color trend data on Thurs.

Top Global Finishes

That data took a global approach to tracking car finish choices. Globally, white leads with one in four new vehicles adorned accordingly. Silver and black tied for second at 18 percent each followed by gray, red, natural hues, blue and green, the last five retaining the same share of popularity achieved in 2012.

In North America, the numbers came in at 21 percent white, 19 percent black, 17 percent gray and 15 percent silver followed by red, blue, natural hues and green. In South America, silver is the dominate color with one in three new vehicles sporting that finish. White at 29 percent, black at 13 percent and gray at 11 percent followed, with red, natural, blue, green and other colors bringing up the rear.

White remains the most popular color with PPG seeing “growth in the variety whites being offered to consumers,” noted Jane E. Harrington, PPG manager, color styling, automotive OEM (original equipment manufacturer) coatings.

Variations on the White Theme

Variations are also being used with silver, black and gray with manufacturers choosing colors to suit different vehicle types. Said Harrington, “Distinct effects such as micas, glass flakes, fine bright aluminum and hue-shifting pigments help them achieve this.”

Some colors are more popular with certain types of vehicles. Sport models are most likely to feature shades of blue and red, while gold and beige are used most in the minivan segment. Among luxury vehicles, 57 percent were gray with black metallic and white pearl used to create feature effect finishes. SUVs come in a variety of colors with various shades of red, blue, black and gray chosen almost evenly.

“Red” is a favorite sports car color.

PPG Colorography

PPG also tracks what colors will be new to the industry in the future. Looking ahead at 2016 and 2017 models, the company sees that color innovation is on the way. The company has done its part to further innovation by introducing more than 60 exterior shades or what its calls its “colorography,” a collection of five palettes:

Hi-Breed emphasizes the new design harmony between man and nature with a palette consisting of neutrals, pastels and bright hues such as Lapis, a brilliant gemstone blue that uses ANDARO® tint dispersions by PPG.

Mosaic is based on the wealth of artisan patterns, shapes and prints, as well as their strong colorations, and it includes colors such as Autumn, a vivid metallic orange with colored aluminum flake that evokes an image of fall foliage.

New Spirit reflects the primitive, natural colors of a desert sunset with shades such as Sunray, an intense yellow tri-coat color with a high-sparkle glass flake.

Magnifigance combines the words magnificent and elegance, and the palette recaptures elaborate styling details and opulent, regal colors for a post-recession world with colors such as Mystic Magenta, a vibrant purple with a unique hue-shift effect.

Theorem is a precise and minimal contemporary palette that uses rich brown, red and deep blue as accents for balanced neutrals such as Crisp Grey, a graphite color with a surprise highlight of green metallic.

Beyond Black

The auto industry has been testing and embracing new color trends as never before. That’s far different from the thinking long attributed to Henry Ford about the Model T where he supposedly said, “You can have any color as long as it’s black.” As many people know the Model T was sold in other colors, a fact that Automotive News has also confirmed.

When to Time Your New Car Purchase

November 21, 2012 by admin 1 Comment

So, you think that heading to the showroom on any given day will produce the intended result, namely the best deal possible on a new car? Well, think again. There are times of the day, weather conditions and dates on the calendar that may yield the best savings for car shoppers or at least those are some of the prevailing theories. Nevertheless, you may want to strategize your car shopping quest accordingly in a bid to save hundreds, perhaps thousands of dollars on your next new vehicle purchase.

End of the Month

Its the first of the month and you’re ready to buy a new car. Not so fast! Although a good deal on a new car can be had at any time of the month, you may find that a sales manager is more likely to cut a special deal if you buy just before the month ends. Monthly vehicle sales may be tied in with quotas that still need to be met. Meet those quotas and manufacturers will often kick in more cash back to the dealer.

Unfortunately, you wont know if the dealer is behind on quotas for the month unless you are told so. You’re taking a gamble here too the car you really want may no longer be sitting on the dealers lot, which means you’ll have to wait for your special order to be shipped weeks later.

At Year End

Come December, if not earlier, you’ll see a slew of advertisements for new cars. Lexus is one of the first to jump in, running its December to Remember sales event. Competing sales include the Mercedes-Benz Winter Event. Oddly, the M-B sales initiative ends on Nov. 30, some three weeks before the winter solstice arrives. Also, The Season of Audi Event, is currently going on, and other events will crop up over the coming weeks.

Can you save money at the end of the calendar year versus other times of the year? Yes, but that is a qualified yes. Hot sellers, for instance, wont be discounted or at least not to the extent that you might expect. If inventories are lean, your deals wont be. The best savings will come for two types of models: the last model years leftovers and vehicles that offer an older design. With the latter, you’re looking at a previous generation model the all-new design has arrived on dealer lots and the old models need to be moved out and will most likely include special manufacturer incentives.

Sweetened Deals

There are times in the year when buying a new car makes absolute sense: the manufacturer has sweetened its rebate or financing offer, improving on a previous deal. Discounts or cash incentives may be increased to reduce inventories for slower selling models. Cash incentives, for instance, are what you are given once you have negotiated your best price.
Never negotiate a deal by putting the manufacturers incentive on the table or allowing the salesperson to do that. Instead, research the price for your vehicle, negotiate your best deal, then claim the rebate.

Weather Conditions

Some consumers are under the impression that car dealers will cut a special deal with them on a rainy day. Thats a nice thought, but a wrong one at that. When you arrive on the dealers lot, a salesperson may greet you with an oversized umbrella in hand.

Now there may be an exception to this belief that should be considered: business following a severe storm that knocked out power and kept shoppers away from dealer showrooms for days on end. Dealers, with the help of manufacturers, may sweeten their offers. These one-time or short-term deals may happen following a calamity where customers lost their cars to flood waters and have insurance checks in hand to make a deal. Cash and checks talk use your loss as leverage.

Personal Advice

When would I buy a new car? At the end of the month or whenever traffic is so slow that dealers are itching to sell cars such as on Black Friday. Still, you can find a good deal at any time of the year, provided you do your research and prepare to negotiate accordingly.

See Also — Last Minute Year-End Car Buying Tips

NEW CARS

Why is December so important? For two reasons:

Here are some tips to keep in mind while shopping:

Let’s Make a Deal

Your Pull-Ahead Offer

Understand the Offer

Pull Ahead or Wait

Negative Equity Implications

Underwater and Sinking Fast

Looming and Costly Repair Costs

Credit and Car Loans

Problem First-Year Models

Chrysler Defies the Odds With Strong Sales

Improved Infotainment Systems

Poor Performers by Segment

IHS Automotive VIO

Rising Average Age

Average Price New Car

Recent News

Time and Talent

Take a Picture, Please!

Technology as Tested

Just an Auto Guy

Young Consumers Want Cars

Image is Important

One Million Consumers

Recent News Stories

Falling Car Ownership Rates

Urban Residents and Car Ownership

The Cost of Car Ownership

Desiring Affordable Transportation

Recent News Stories

Top Global Finishes

Variations on the White Theme

PPG Colorography

Beyond Black

Further Reading

End of the Month

At Year End

Sweetened Deals

Weather Conditions

Personal Advice