Edmunds.com consumer advice editor Philip Reed was recently interviewed on "America's Car Show" by host Tom Torbjornsen. He spoke about changes in the new and used car markets as well as his prediction for the future of the American car business. Have a listen.
In related news, columns about auto maintenance will be presented on Edmunds Daily written by radio host Torbjornsen. The articles will cover a wide variety of topics that will certainly help car owners prolong the life of their cars. Tom's columns will begin appearing weekly in March.
We've been saying for a long time but it's a great time to buy a car. Apparently people are listening. And they're using our advice to press for smokin' hot deals.
Last week I had to sell our long-term Scion xB and nobody even wanted to come look at it before making an offer. Everyone wanted to negotiate over the phone.
I put it on Craigslist and Autotrader.com for $29,000 voting for quick sale. Before doing that I had taken it to Carmax for a quote. They offered $26,000.
Last night, during dinner, my phone rang and when I picked it up it was a woman interested in buying our Mercedes. She didn't make any preliminary comments or ask if I was flexible on the price or even try to make small talk. Here's what she said:
At a time when automakers are desperate for every sale, a remarkable number of shoppers are drifting out of the new car market and purchasing a used car instead. In fact, Edmunds.com has determined that approximately 511,000 used cars sold in the past three months would have been new car sales in a more normal economy.
But how do you determine a fair price -- whether you're buying or selling a used car? The market is so volatile that you can't rely on anything from a book, because it would be instantly out of date.
Edmunds created True Market Value pricing for this very purpose. (For a cool tutorial on TMV, please click here.) Here's how you research a used vehicle's TMV price:
1. click the Used Cars tab from anywhere on the site
3. Select the make, year, model and style of the vehicle you would like to appraise
4. Choose whether you are planning to buy or sell the vehicle
5. Indicate the vehicle's color, mileage, options and condition
6. Finally, click "Get Pricing Report" to generate a customized TMV price for the vehicle. This report will provide you with the vehicle's trade-in, private party and dealer retail TMV prices.
TMV pricing is the most accurate reflection of actual transaction prices in your area. For more information, see How We Calculate Used TMV Prices.
Here are a few bullet points for buying a used car:
In a show of the new consumer conservatism, more people are deciding to buy used vehicles rather than new. According to our experts here at Edmunds, in the last three months over a half-million consumers bought used vehicles while in a stronger economy they probably would've bought new.
We see two major factors contributing to this shift:
1) Consumers are more thrifty than any other time in recent memory. If they need to purchase a vehicle and can't (or don't want to) spring for a new one, a one- or two-year old, well-kept vehicle with low mileage is the way to go. That way, you still get a nice car that should last you and you don't take the huge depreciation hit that occurs when you buy new. Furthermore, often times you still have a fair amount of warranty coverage left.
2) Struggling car dealers are prioritizing selling their used cars, so salesmen are steering some new car intenders to the used car lot. The reason is that the profit margins tend to be much higher for used vehicles versus new, especially now.
There are plenty of fees associated with buying a new or used car -- enough to make you think you should have bought a less expensive vehicle. Which of these fees are mandatory and which can you haggle over? Let's break it down:
Vehicle Registration fee: This one's a no-brainer. Every vehicle must be registered by the state. It covers registration, license plate fees, and title assignment.
Sales Tax: Same as it ever was. At 8%, tax on a $20K car can cost $1,600!
Documentation fee: If the doc fee is regulated in your state, pay it. But in most states it's not, and the dealer could really overcharge you. Try to keep your doc fee at or below $100.
Dealer fee: Often labeled 'dealer prep' or 'shipping' or any of a number of made-up names, this is where you need to be careful.
Advertising fee: If it's listed in the car's invoice, pay it. If not, but the dealer tries to write it into your contract, fight it.
Taxes on Trade-Ins and Rebates: This is a complicated subject and, as usual, it depends on your state law. But a state-by-state breakdown of these taxes, along with more details on all the fees listed above, is in our article, What Fees Should You Pay? Here, as with the price you pay for the metal you'll be driving home, it really pays to do your homework before going to the dealer.
Imagine this -- you buy a nice used car from what you think is a credible dealer and after you start making payments get hit with an additional loan to pay off. Huh? Turns out this other loan is left over from when the previous owner traded the car into the dealership. How did this mess happen and why is the innocent new owner on the hook for it?
What do you buy if you're a car nut and have less than 5 grand to spend? It can be a tricky situation, since cars in this price range have at least 100,000 miles or rank in the "too good to be true" category. That '98 M3 for $4,800 was almost certainly in a New Orleans driveway on Aug. 28, 2005. Also, many have already been trashed (aka modified) by previous owners.
Keeping that in mind, Inside Line took to the automotive classifieds in search of the most-fun used cars for $5,000 or less. Which would you buy?
Despite the huge drops in new and used car purchases, Edmunds AutoObserver is reporting that certified pre-owned sales were up across the industry in 2008. Not even a dismal fourth quarter could prevent an overall growth of 1 percent from 2007. Mercedes-Benz's CPO sales rose 27 percent for the year, with December seeing a 61-percent surge. Infiniti experienced a 150-percent CPO growth. GM was the only manufacturer mentioned that experienced a decline, but even it was a modest 5-percent drop.
The article goes in depth regarding the various sides of this CPO success story: the dealers, manufacturers and consumers. Also, it explains reasons why CPO is going one way while the new and non-certified used cars are going in another. It is particularly interesting how dealers are anxiously awaiting the arrival of end-of-lease returns with the same vigor normally reserved for new car launches.
Edmunds AutoObserver blog, which provides news and commentary about the automotive industry, has an excellent article today on the struggles of the used car market. Even though used-car sales usually climb when new-car sales drop, this year may be the worst for used-car sales in two decades. The reasons? The credit crunch is affecting used-car buyers even more than new car buyers, because there used car shoppers are generally higher credit risks. Fewer people are trading in their used cars as well, making it hard for dealers to keep desirable used cars in stock (though they've still got their share of low-mpg vehicles that were traded in during the summer). And of course, the overall economy affects all of these factors.
The article posits that, in order to survive, used-car dealers have to start pricing their cars more realistically. "The majority of the used-car business is still operating without realizing that customers now go to the internet and know what the market value is on a used vehicle," said the director of industry relations for Atlanta-based AutoTrader.com. Score one for sites like Edmunds.
So if you're considering trading or selling your used car, or shopping for one, read the article and remember to appraise or price out that used vehicle before you hit the dealer lot. You'll be glad you did.
Vehicles prices may be depressed, but I've got a lot of friends whose incomes are even more so. When you can't afford the used cars you see advertised, what can you do?
There is an answer. Three answers, actually: program cars, used rental cars, and salvage titles.
Program cars are cars that manufacturers give to dealer employees to try out and show off to the public. They're used as personal cars and are usually sent to be auctioned before they have 10,000 miles on them. Other dealers buy them at auction and then sell them on their used car lots at great prices. Used rental cars have been well maintained by the rental car companies, but you want to have a third-party inspect a car before you purchase it, in case anyone's abused it.
Salvage cars are those that have been declared a "loss" due to accident, flood, or other reason. While we generally advise staying far away from salvaged cars, there are times when they make sense.
You can also save a lot of money by going for a repossession or donation auction.
When going for these kind of bargains, there's lots to watch out for, but we've got you covered. Our article on Used Car Deals will tell you the detailed pros and cons of each of these deals. And no matter where you buy your used car -- even if it's from a friend -- remember to use our Used Car Worksheet to get answers to all the important questions, first.
The rev-happy little 4-cylinder sports car, Honda's S2000, will end production at the end of the year.
It was a nice run even though it was always a niche car inspiring wild enthusiasm from some and stiffled yawns from others. Still, S2000s will certainly be collector cars for years to come and give eBay surfers hours of bidding pleasure.
Anybody familiar with the Barrett-Jackson auction (the Mecca for classic car enthusiasts that just took place in Scottsdale, AZ and was broadcast big-time by Speed TV) knows that often times the prices paid are just ridiculous. As they say, it only takes two bidders and if they're both rich, both just have to have that car and both have big egos that won't allow them to be out-bid, then the end result is an over-inflated price. Furthermore, the buyer must also pay a 10-percent fee for the privilege of taking part. I wrote a piece on the B-J experience some time ago called Fantastic Cars and Foolish Money.
That said, sometimes there are some pretty good deals to be had, particularly during the first few days of the show.
If you're buying a new car, you've probably invested lots of time and effort trying to make sure you get the best deal possible. You've compared TMV numbers. You've ferreted out the latest incentives and rebates.
We hate to hit you with yet another item to ponder, but how much thought have you given to car insurance? Taking the time to consider potential insurance costs before you buy can help you choose a vehicle that truly fits your budget.
Car shoppers aren't the only ones who can benefit from taking another look at their insurance -- there are things you can do to lighten the insurance bill on vehicles you already own. For example, if you own a ride that's a bit long in the tooth, you may be better off relinquishing collision and/or comprehensive coverage.
For many, buying a car is as much an emotional as it is a practical decision. Sometimes we just can't believe the things that push the right buttons for folks when they're looking for wheels -- certain colors, the gold emblem package. Knowing what you like is all well and good, but when it comes to considering a used car, things such as condition, mileage and a solid maintenance history take priority.
So in the interest of helping you keep a clear head and making sure you do everything possible to ensure the used cars you're considering are worth taking a look at, we've created this handy worksheet for you. Use it when you're calling or e-mailing prospects. It's a pre-emptive strike designed to minimize the chances of you wasting time going to see a car, only to discover, for example, that it doesn't have the features you want or is going to need some big repairs. It's also a good idea to bring it along when you examine the car in person; as any lingering questions can be answered at that time.
The great thing about Edmunds is the wealth of information on our site. The bad thing about Edmunds is the wealth...
This embarrassment of riches is of course an enviable "problem". But we're sure that some useable articles may escape your attention in your quest for automotive advice. So occasionally, we, the editors, will remind you what we have at your service.
Imagine that you have a rich car fanatic relative, someone like Jay Leno, who says he'll get you six cars of your choice for Christmas. The stipulations are that three must be new and that of the six, three are domestic and three are foreign.
Of course, my list will probably change right after I post this blog..."Shoot, I forgot about the ____". But nonetheless, these would be (for the moment) my six picks...
The recent credit crunch and associated downturn in the economy has contributed to the bottom falling out of the lease business. While many leasing companies like GMAC and Chrysler Financial have completely stopped leasing, others have severely cut back on their subsidized lease rates. This has resulted in a bit of sticker shock for lease customers who are approaching the end of their current lease.
Leasing has traditionally comprised about 20% of new car purchases. Most of these lease customers tend to come out of one lease and go right into another one (myself included). This has resulted in a large number of people who, expecting to lease another vehicle, are seeing payments 20-40% higher than what they were paying for their previous lease. Unable, or unwilling, to pay such a premium, many lease customers are thinking of buying their currently leased vehicle. But is this a good idea? How do you decide?
As readers of our Long-Term Blog will have noted, I didn't particularly enjoy the Subaru Impreza WRX STI's company while driving to Oregon and back last week. Which got me to thinking: Exactly what is it that makes a car a good road-trip companion? If you ask me, the following three features are necessary conditions for Roadtrip-Rated status. Check 'em out, and then tell me what YOU think a Roadtrip-Rated ride's gotta have -- and which models deserve this status, past or present.
Cars are a big expense and commitment, no question. Making the decision to buy one should not be arrived at on a whim. Edmunds.com is a fantastic resource for analytical information such as pricing and specifications, along with the valuable insight and opinions of the editors' reviews. But as thorough and professional as those reviews are, their exposure to the various vehicles represent just a snap shot of what an owner will experience over the months and years of ownership. Owners can often point out both positive and negative aspects of a vehicle that can only be realized during the day-in and day-out experience of ownership. The best place to tap into those aspects is vehicle specific forums.
Confused about how to evaluate a used car? Check out our top 10 on the subject
Top 10 funniest commercials, top 10 pop albums, top 10 Chicago bartenders, and my personal favorite, Lifehacker's top 20 top 10s. As December 31 quickly approaches, seems like everyone's got a top 10 list or two of the best, worst, weirdest and other sundry ways to categorize the year that preceded.
But rather than wait for the rush of the holidays and the end-of-year crush, Edmunds.com publishes Top 10 lists frequently throughout the year. You can check out all of our Top 10s on your own, but some of my favorites are Top 10 Deals of the Month - Cars (perfect for shoppers who are ready to buy now), Top 10 Tips on How to Test-Drive a Used Car (used cars can be a great way to get more for your money) and Top 10 Cool Features on Cheap Cars (you don't have to spend a ton to get the latest gadgets and conveniences).
There are all kinds of topics, some funny, some serious and dozens of Top 10s to choose from. So check 'em out! And remember to come back throughout 2009 to see what's at the top of our list all year long.
At Edmunds we don't usually discuss individual dealership promotions, but this one caught my eye. Bettenhausen Dodge, a "one price" dealer in the Chicago area, has a pretty unusual deal. If you buy one of their new 2008 Dodge vehicles at MSRP, you get another used 2008 for only $1.
Before you get too skeptical, know that they've shared their numbers with me, including what would happen if you applied all the rebates instead of paying MSRP, and the bottom-line savings are substantial -- between $$4,181 and $6,324. Though it's not the first time anyone's offered a "Buy One, Get One for a Dollar" sale, the dealership makes a point of saying that all vehicles can be financed and all of them are 2008 model year, not earlier. The only catch (and this is important) is that you don't get to choose which combination of vehicles you want. They've chosen five combos to offer:
New Charger RT or Durango SLT paired with a used Avenger
Grand Caravan SXT or Dakota Crew Cab paired with a used Caliber
Ram Quad Cab paired with a used Caravan
I don't know many people who need to buy two cars at once, but it does happen. And if you don't live nearby but want to take advantage of the deal, you can always have the cars shipped.
A sign of the times? Definitely. But a slightly used car for a buck beats the 99 Cent store any day.
In the words of Justin Timberlake, the 2009 Toyota Venza is bringing wagon back (yeah!). Well, maybe that's not quite what old Timberlake said. But the Venza really is doing its part to convince Americans that the much-maligned wagon is a good thing. Here's three reasons why.
A colleague of mine was thinking of getting a used sports car and we ended up talking about the Honda S2000. After perusing Craigs List and eBay, we found a fair number of low-mileage, 2001 to 2003 examples in nice condition for $12,000 - $17,000. By low mileage we mean low-to-mid 20,000-mile range. These high-winding, stiff-riding but tons of fun roadsters are typically bought as fun weekend toys, and thus usually lead pretty good lives.
Readers of our Long-Term Blog will have noted that I'm rather infatuated with our 2002 BMW e46 M3. That car is an enthusiast's fantasy -- it's like BMW scanned the brain of a car nut, figured out exactly what made it tick, and then made the e46 M3 the embodiment of those qualities. Too bad the same development team wasn't in charge of the current M5 sedan. The M5's principal virtue and vices are the subject of this week's Top 3.
The Good
The engine folks at BMW's M Division are still on top of their game. The M5's 500-horsepower V10 is scintillating. Put it in third gear at about 65 mph, wood the throttle, and...wow. It's not just the ridiculous power it makes -- it's the fire-breathing F1-style wail it emits while doing so. This engine fully deserves to be mentioned in the same breath as the e46 M3's 3.2-liter inline-6. It's the highlight of this car.
The Bad
Surprise! The M5's steering stinks. Oh, it's not that bad compared with the mere mortals of the automotive world, but we're talking about the M-freakin'-five here. This is a variable-assist, variable-ratio setup, and it's invariably uncommunicative. There's so little feel that it reminded me of the rack in the new Acura TL SH-AWD, which is pretty good...for electric power steering! The M5's rack isn't electrically-assisted, so BMW can't use that as an excuse. What they should do is ditch this nonsense and replace it with, say, the telepathic steering available in even the lowliest 3 Series model.
The "What In Das Vaterland Were They Thinking?!"
SMG. Sequential Manual Gearbox. It was widely panned when it debuted years ago, and guess what -- it's still really bad. Frankly, I can't believe BMW's product people ever agreed that SMG was ready for prime time. The delays between upshifts are unacceptably long, even when the sportiest setting is selected, and each upshift lurches you forward in your seat while you wait for the single clutch to engage. It's uncomfortably reminiscent of the Smart's painfully crude transmission, except the M5 costs an additional $70 grand.
The Moral
Give me typically communicative BMW steering and a six-speed manual transmission, or at least BMW's new dual-clutch M-DCT transmission, and we'll talk. Until then, I'll take an M3 sedan with either of those transmissions, thank you...or a C63 AMG...or a CTS-V....
It's no big secret that the 2009 Toyota Prius is the most fuel-efficient car on the market, thanks to its thrifty gas/electric hybrid powerplant. And therein lies much of its appeal, though the Prius' green credentials have not gone unchallenged in these parts. But with all the hubbub about fuel economy, it's easy to lose sight of the Prius' other virtues. The Weekly Top 3 is here to set the record straight.
3. It's a pleasant car to drive.
Plenty of folks these days would probably be happy with the Prius no matter how harshly it rode, or how loud it was inside. But the Prius' refined nature is nonetheless a welcome surprise. It's reasonably quiet at 80-85 mph over a variety of surfaces, and its suspension conjures up images of hovercrafts as the Prius calmly floats over bumps and ruts.
I've often wondered why even the high-tech Prius can only match the combined fuel economy of an '86 Civic CRX HF -- and that's using the EPA's revised estimates, as opposed to the 54 mpg on said Civic's window sticker. But say this for the Toyota: it's not at all the rolling penalty box that economy cars used to be.
2. There's plenty of backseat space.
Econocars of yore weren't exactly known for their accommodating rear quarters, either, so the Prius' spacious backseat is more icing on the cake. Would Prius owners have rioted if there weren't so much room in the rear? Of course not. But it's pretty cool that the Prius gives you midsize-sedan backseat space and, well, '86 CRX HF fuel economy.
1. It can haul a whole lot of stuff.
Thanks to some ingenious battery-pack placement, the Prius has a flat load floor, and its rear seatbacks fold flat as well. Throw in the hatchback bodystyle, and the result is a very useful cargo bay. I once wedged a kitchen table, four chairs, a set of golf clubs and a few boxes back there, and last weekend I took a friend to Ikea and managed to squeeze in just about everything he needed to furnish his one-bedroom apartment. One doesn't often think of the Prius as a practical vehicle, but name a car other than the new Jetta diesel wagon that can hold this much cargo with remotely comparable fuel economy.
The Moral
The Prius' calling card will always be its miserly fuel consumption, but it also offers an appealing combination of refinement and practicality.
On Monday I told you how Toyota was now offering 0% financing while GMAC was limiting some long-term loans and had virtually ceased leasing. Now it seems that GMAC has gone one step further by now requiring applicants to have a credit score of at least 700 in order to get approved for a loan. GMAC blamed "lack of stability in the global capital and credit markets" as the reason for the new policy.
This has the potential to have a major impact on GM sales. According to information from Experian Automotive, 43.5% people who financed new or used vehicles during the second quarter of 2008 had credit scores under 680. While third-party lenders, banks and credit unions will still make loans available, consumers will almost certainly not see anything close to the 0% financing that is being offered by other manufacturers' captive lenders. GM buyers will likely look elsewhere if GM dealers can't offer competitive finance rates.
It is important to remember that Cerberus owns a controlling 51% of GMAC. Cerberus also owns Chrysler. Cerberus has virtually eliminated leasing through GMAC and has now cut off lending to potentially half of GM's buying public. While it is likely that Cerberus is simply trying to improve its ability to sell asset-backed securities in order to maintain liquidity, the cynic in me thinks there is something a bit nefarious going on here. Is Cerberus trying to squeeze GM sales for its own benefit? hmmm...
Even in this crazy economic climate, most people can get still auto financing. Preparation and knowing what to expect at the dealership can make the difference between getting a car loan (yes, a good one) and not getting one at all. Below are the most common auto financing pitfalls that consumers experience:
#1: Not knowing their credit rating when they apply for an auto loan.
#2: Overspending once they get to the dealership.
#3: Not knowing the current interest rates being offered in the marketplace
#4: Not having approved financing in hand before entering a dealership
#5: Assuming a zero-percent loan will save more money than a cash-back rebate
#6: Falling victim to the F&I officer, who may try to confuse you by "intertwining" different elements of your deal. ("We'll give you an extra-low price on the vehicle, but this interest rate is the best we can do.")
#7: Not reviewing the contract for "extras" that have been thrown in before signing.
#8: Succumbing to pressure and exhaustion by signing the contract, despite confusion, second thoughts, or misgivings.
Most people forget that the price of the car is important, but the financing deal is often moreso. Paying a slightly higher interest rate or extending your payments for a few more months adds up to hundreds, sometimes thousands of dollars more. If you take time to do a little homework, you'll leave the dealership confident that even in these strange economic times, you got a good deal.
(The Rhodes family from Camas, Wash. From Left, Hilary, Ryan, Mary and Randy.)
While bickering about the economy dominates the news from Washington, two typical American families are doing their best to make a difference by saving money on gas. The "Frugal Family Challenge," sponsored by "Good Morning America" and USA Today concluded its first week and the results are impressive. The answer so far is, yes you can cut your gas costs and still get to work, school and the places you need to go.
The Rhodes family, with three cars and four fulltime drivers (the Acura pictured above was damaged in an accident) saved so much gas in one week they are on track to cut their monthly fuel bill by $280! They had been spending $790 a month on gas and Randy Rhodes said they are currently on track to spend only $510 for the month. Their 2004 Subaru Forester got 24 mpg and their Camry got 25 mpg.
It's hard to find anyone willing to put in a good word for the Mercedes-Benz R-Class, and understandably so. It looks weird, it's exorbitantly priced, and its extra-long second-row doors can't hold a candle to a minivan's sliding doors in terms of convenience.
That's why I wasn't expecting much when I spent this past weekend driving up and down the California coast in a diesel-powered 2009 R320 BlueTec. Turns out I sorely underestimated the R's charms. In at least three ways, this is an excellent vehicle -- and I've got the list to prove it.
(3) Best Hood-Closing Sound Ever.
Imagine a humorless German prison guard slamming a cell door shut with all his might. That's what the R320's hood sounds like when you close it. It's genuinely spine-tingling. On the R320 photo shoot, Mr. Niebuhr and I must have opened and closed the hood five times, just for kicks. Now that's a Germanic thunk!
(2) Steers And Handles Better Than The ML320.
Well, of course it handles better -- it's got a lower center of gravity. But that doesn't explain why the R320's steering is notably tighter and less gooey-feeling than the similarly-priced ML320's. It also doesn't explain why the R320 feels smaller than it is in corners, while the ML320 feels every bit its size. The R320 was actually kind of fun to drive on the twisty Big Sur Highway. The ML320 was not fun to drive anywhere.
(1) Eats Highway Miles For Frühstuck.
I love the futuristic rake of the R-Class' windshield, and the panoramic view it affords of the road ahead. The front seats are über-supportive, and the driving position was just right for my lanky 6'1" frame. Some unseemly road noise filtered in over a couple coarse surfaces, but for the most part, the R320's ride remained hushed and utterly composed at all velocities. It was kind of like piloting a personal high-speed train.
The Moral:
Hey, I wouldn't buy one either -- just look at the thing. But from behind the wheel, the R-Class is an unexpected treat.
One our Edmunds staffers is in search of a new car. His 1988 BMW 535i is on its last legs and he's in need of something new/old.
Here's some of his requirements, needs and/or wants...
Maximum price is $5,000.
It has to be a car large enough to hold his keyboard and other musical equipment. A hatchback would be OK.
He would prefer six-cylinder power and a five-speed manual, but he's realistic about finding the latter in Southern California.
Finally, he wants it to be reliable. Maybe your Saab 900 hasn't caused you any problems, but let's face it, reliability often nixes quite a few cars off any used list.
We've been suggesting various entry-level luxury mid-sizers from the late 1990s, such as the Acura TL and Infiniti I30. We also liked the idea of an Integra hatch, but finding one that hasn't been destroyed by some crazed wannabe street racer is getting harder with each passing day.
But our hard-working, piano-playing staffer (let's call him Emmett) needs your help. What should he buy?
It's hard to imagine any good news about credit right now. According to Bloomberg.com, Senate Banking Committee Chairman Christopher Dodd said, ``I was told today you have to have a FICO score of 720 to qualify for a car loan. The effects of this could be huge.''
Huge, indeed. Before you can buy or lease a car, a dealer checks your credit, and if you don't pass the smell test, the rate s/he offers you will be higher... or you might not qualify at all.
We've got lots of information on the importance of your credit score and tips for subprime borrowers. (Is 710 the "new" subprime?) But the bottom line is, not only do you need to know your score, you need to know what's keeping it from being the best it can be. For example, when I refinanced my mortgage, I discoverd that my score was getting dinged for an outstanding payment owed to a book club from five years ago... and I knew nothing about it.
So where's the silver lining? TransUnion, one of the big three credit reporting agencies, got caught giving away too much information about its customers to insurance and credit marketers (read: unsoliticed phone calls and junk mail). As a result of a successful class-action lawsuit, TransUnion now has to provide free, 24-hour credit monitoring to pretty much the entire country. The benefit of this is that you'll be able to see your TransUnion score, what's affecting it, and receive 24-hour credit monitoring (which will help protect you from identity theft, a service not to be underestimated). Whether you get six or nine months free depends on whether you opt to take a little cash that might come your way with the settlement. Personally, I would forego the cash, because it's likely to be pennies or a couple dollars at most. (Analysis on the settlement can be found here.)
The settlement is old news, but now you can register for benefits at a special site set up for the purpose. It's super easy and we strongly recommend you tell all your friends about it. (To make this work, you will need to have an email address.) This service is far beyond the once-yearly credit report that these companies are normally obligated to provide.
You would think that with all our advances in engine technology and lightweight materials, the cars of today should be getting the best mpg ever. But this doesn't seem to be the case.
According to a recent Los Angeles Times article, "For the 1992 model year, car buyers had the choice of 33 cars that had a combined city and highway EPA rating of at least 30 miles per gallon. For the current model year, there are 12."
What happened? Cars have been gaining weight with each new generation. It seems like most consumers want their cars to be bigger and have more power. Can you think of a new model that had less power or weighed less than its previous model? As size and horsepower was increased, in many cases, so did the car's weight.
An extreme example of this can be found in the 2008 BMW M3, which has 222 more horsepower than the 1991 model, but weighs 837 pounds more. This car has grown 10.7 inches longer, and went from having a four cylinder engine in '91, to an eight cylinder in '08. Fuel economy has dropped, from a combined 19 mpg, to 16 mpg. (Note: EPA numbers have been adjusted to reflect current standards.)
Sometimes this added weight is necessary. More safety equipment, like airbags, reinforced frame and roll-stability control have become standard, but at the cost of making the car heavier and therefore less fuel efficient. SUVs in particular have grown wider to make them more stable in rollover situations. This requires more metal, which in turn leads to more weight. The SUVs of 15 years ago were lighter, but more susceptible to rollover than the current models.
Ever notice some of the nonsensical things folks do when they place a used car ad? I have, and here are a handful of these amusing but annoying gems I see over and over:
Original miles: Example: 1995 blah-blah with "only 56,000 original miles". Is it not sufficient to just say "56,000 miles"? Really, it's kind of understood unless the car has a replacement engine, which one would hope would be indicated in the ad.
Actual miles: Umm, as opposed to what, those that are imagined? Like "original", this is assumed unless the car has had a replacement engine (which again should be indicated) or perhaps a problem with the odometer, which is very rare.
In the wake of Hurricane Ike's devastation, and the resulting shut-down of many of this nation's oil refineries, some gas stations have taken the opportunity to raise gas prices through the roof. In some cases breaking the $5.00/gallon barrier, with station owners blaming shortages for the drastic price increases. Florida's Attorney General's office sees things a different way, blaming the drastic price increases solely on price gouging. After receiving more than 350 complaints from the public, the AG's office is set to serve four gas companies with subpoenas in order to ask for documentation justifying the price increases.
While oil prices have retreated below $100/barrel, the gas spike following Hurricane Ike shows how quickly an circumstances can cause energy prices to quickly rise. Whether it is a hurricane, political instability or a terrorist attack, we are very much at the mercy of events that are beyond our control, when it comes to gas prices. It is important to keep this in mind when you are shopping for a new or used vehicle. You should ask yourself if your budget can comfortably withstand a sudden and/or prolonged spike in gas prices and whether or not you have a sufficient income cushion.
If you're trying to save money by buying a used car instead of a new one, watch out. According to Experian Automotive, which compiled the data from DMV departments across the country, almost 15% of the 1.3 million cars that were severely damaged by collision, flood, or fire in the first half of 2008 have received "clean" titles that don't identify that damage. Meaning, of course, that these vehicles can be sold to unsuspecting customers. Called "title washing," this illegal practice often happens when unscrupulous dealers (or auto brokers) take the cars over state lines, where they get new titles for them.
With peak hurricane season now underway, it's likely we'll see more of this type of behavior. So to protect yourself, read our updated article, How to Avoid Buying a Flood-Damaged Car. It's got some really useful tips for spotting these cars and what to do if you find out too late.
For many car shoppers, it's common sense -- if a stereo has a premium label on it, it must produce premium sound. You want the truth? Can you handle the truth? Read on for the Weekly Top 3.
While the aftermarket car audio industry is singing the blues, it's never been a better time to get great music in your ride -- without visiting a car stereo shop. Wired's Autopia points to Bentley's alliance with fellow Brits at the high-end home audio company Naim Audio as yet another example of the automaker/audio brand mash-up, but Naim's Paul Stephenson makes it sound like you have to spend tons of money on a car and a premium audio system to get better than "quick and dirty low-cost" audio add-ons.
Although hardcore audiophiles can and will beg to differ (because that's just what they like to do), there are several examples of premium audio systems below $1,000 that offer better sound dollar for dollar than aftermarket options. Several Boston Acoustics systems available in Dodge, Chrysler and Jeep vehicles range from $495 to $995, and while these systems are far from the last word in superior car sound, try getting similar quality from the aftermarket for the same amount of coin.
THX is another premium audio supplier that offers excellent value. I've often pointed to the $995 THX Certified Premium Sound System in the Lincoln Zephyr as an example of excellent bang for the car audio buck, and the company's stereo system in the '09 Lincoln MKS runs $645, while the 5.1 Surround version is bundled with the vehicle's Navigation Package option that includes voice-activated nav, a hard disc Jukebox and Sirius Travel Link for $2,995.
As noted in my teaser post, automakers currently find themselves in an awkward transitional period. Consumers suddenly want maximal fuel-efficiency, yet most manufacturers are saddled with gas-guzzling fleets that offer only a few efficient alternatives. So what are they doing about it? Calling Madison Avenue, of course. This week we'll highlight three ways in which marketing mavens are trying to pull the wool over your eyes with misleading MPG claims.
With the sudden increase in gas prices, automakers are scrambling for ways to pitch old products with timely new claims about fuel-efficiency. Are they being honest about it? Are you kidding?! They're doing what companies do -- trying to make their wares look as attractive as possible for the buying public, reality notwithstanding. Tune in later today for our Weekly Top 3, in which we'll highlight three sneaky tactics designed to impress consumers with MPGs while keeping some uncomfortable facts under wraps.
Conventional wisdom can be a drag when it comes to car shopping. Many shoppers will settle on a particular brand because it has a reputation for this or that virtue, only to discover that the reality is rather different. Or maybe they'll go on believing in that mythical reputation, simply because no one's told them otherwise. That's where this week's Top 3 comes in. We're going to break it down for you -- three examples of brands that either deserve more credit or aren't living up to their reputations.
Earlier today I argued that MPGs aren't the only thing consumers should be thinking about when they go car-shopping these days. For many people, I suggested, it might be worth paying a little more at the pump for a more enjoyable car. In the spirit of this suggestion, here are two informal top-three lists -- one consisting of fun cars that are still pretty fuel-efficient, and one featuring fuel-efficient cars that are about as much fun to drive as a Zamboni.
Car shoppers are understandably freaking out about skyrocketing gas prices. Suddenly those big black EPA estimates are among the most important numbers on the window sticker. But in some cases you may be sacrificing a lot in order to get a few extra MPGs. We'd recommend trying to strike a balance between fuel economy and enjoyment, particularly if you spend a lot of time in your car.
Of course, there are some cars that offer both class-leading fuel efficiency and driving pleasure. But the ones to watch out for are the one-trick ponies -- you know, the cars that boast "A Best-In-Class 36 MPG!" but drive like glorified golf carts, or give you all the accoutrements of a farm tractor.
Consider two hypothetical cars -- one that gets a combined 30 mpg, and one that gets a combined 25 mpg. Suppose you drive 12,000 miles a year, and gas costs $5 a gallon. The premium you'll pay for the 25 mpg car over the course of a year is $400. That's not exactly chump change, but we suspect most people would be willing to pay an extra 33 bucks a month for a car they'd actually look forward to driving.
Be sure to check back later today for Against MPG-Mania: Part II, in which we'll move from the hypothetical to the actual and tell you which models we'd avoid despite their high MPG numbers -- and which marginally thirstier models are worth the extra gas money.
Are you overwhelmed and clueless about where to start?
For some things, getting started is the hard part. Once you're rolling, you might even enjoy it.
We have an article that will help you get off the dime. It's called "Three-Day Shopping Plan for Holiday Weekends" and it will break down the process and tell you what to do on day one, two and three.
Car buying requires a combination of skills. In the beginning you need to be research oriented and analytical. Then you need to be intuitive as you ponder your choice. And finally, as you enter the deal-making section, you will need to be verbal and socially aware. The three-day plan separates these skills and lets you apply them most effectively.
Also, remember that incentives are rampant right now with everything from Ford's Employee Discount Program to GM's 0 percent financing to Chrysler's $2.99 a gallon gas cards. So, as the story says, check out our Incentives and Rebates page.
So before heading to the car lot, read our user-friendly story. It will save you a bundle. And who knows? Maybe this time around, you'll actually enjoy the process.
We were changing sides on the tennis court Saturday morning when my opponent blurted out: "So what am I supposed to do about my SUV?"
Without elaborating I knew what the question was. Gas prices had made him want to dump his SUV and get something fuel efficient. I had blogged about dumping the SUV once before but here was the question again.
I didn't answer him right away so he said, "It's that bad, huh?"
Actually I didn't respond right away because the answer sounds kind of lame...
For the first time since 1991, the Ford F-Series is not the nation’s best selling vehicle. Last month, that honor went to the Honda Civic. With gas prices at an all time high, it is not a surprise.
The entire truck and SUV segments have seen a sales crash, not unlike what we have seen in the housing market...
Gas prices may be sky high, but apparently most Americans (at least those in Buttler, MO) would prefer a free gun over gas. Max Motors is currently offering anyone who purchases a vehicle the choice of either $250 in gas or a gift certificate, worth the same amount, good at the local gun store. Their offer has garnered international attention and has no doubt been good for business. Most curious, however, are reports that about 80% of people have chosen the handgun over the gas...
Many car shoppers make the mistake of evaluating a car from the driver seat only. This does a grave disservice to future front passengers, who may have to contend with a surprisingly common design flaw -- the lumpy footwell.
Check out this shot of my feet in the front passenger footwell of a Buick Enclave, for example. If you merely drive the Enclave, you're bound to be impressed by its compliant ride, good sound insulation and generally high-quality interior materials...
When shopping for a vehicle, most people tend to buy the most vehicle that they can afford, with the highest monthly payment that their budget allows. Often, buyers haggle over that last $10 per month without looking into other monthly expenses that they may be facing. Some of these expenses hurt their bottom line, if they are not considered ahead of time.
Used to be that you could count on Japanese automotive interiors to feature plenty of soft-touch materials, even in relatively inexpensive cars. To wit, the five modern Japanese cars my family or I have owned -- '93 Prelude Si, '94 Accord EX, '95 Corolla DX, '95 Integra GSR, '98 Accord LX -- all had pliable plastics on their dashboards, which imparted a pleasantly surprising sense of quality given their modest MSRPs. American cars, of course, were a considerably different story. Ten or fifteen years ago you could pretty much count on any vehicle with an American badge to be chock-full of cheesy materials and crude construction.
Is your car a lemon? Or do you really want another car and so you try to force the manufacturer buy it back?
For every consumer protection law, such as the so-called Lemon Law, there are people trying to game the system and use it to their advantage. And then there are the lawyers (don't get me started on lawyers!) exploiting the laws for personal gain.
The screaming headline of Automotive News this week was: "Industry in Turmoil." Cars aren't selling. Pickup truck sales in particular are completely stalled. Dealers are desparate for ways to get buyers into the showroom (as evidenced by Chrysler's "Refuel America" plan).
What does all this mean for you?
It means all bets are off when it comes to negotiating...
In the wake of Hurricane Ike's devastation, 
