If your credit score has gone up or down 20 - 30 points lately, it might have nothing to do with your recent borrowing habits. FICO (formerly Fair Isaac Corporation) has radically changed its methodology to the new "FICO '08." As a result, the three-digit FICO scores you get through credit reporting bureaus Experian, Equifax and TransUnion may have changed dramatically in recent months.
FICO's rationale and how it applies to specific types of borrowers is detailed in our new article. FICO says that half of the U.S. population will see their score fall under the new system, while the other half's score will stay the same or go up. That's going to affect thousands, possibly hundreds of thousands, of the nation's car loans.
When buying tires, the salesman may try to upsell you on a brake job or front-end alignment.
"Upselling" involves persuading a customer to buy more product or service than they originally intended. From the innocous "Would you like fries with that?" to "Buy one, get one free," upselling is a standard part of sales training because it brings in extra profit. Many salespeople are even paid commensurate with their ability to upsell successfully. Car buyers and owners need to be particularly wary, because upselling exists at every point in the game: car dealerships, tire stores, repair shops and even car washes.
Our new article, Avoid the Upsell, illustrates the psychology and sales language involved in turning a smaller sale into a larger one. It tells you what tricks to watch for and how to respond to the salesperson. Knowing these tricks can even protect you from outright fraud, which we discovered when a quick oil change shop offered to "fix" things on our car that weren't broken.
I admit to being a willing sucker for the occasional upsell, such as adding an item to my online shopping cart if it puts me over the "free shipping" threshold. What was the last thing you were tempted to buy (or actually bought) due to an upsell, and how did you handle it?
The Infiniti FX35 isn't for everybody. Compared to more cookie-cutter crossovers, the FX35 -- with its rakish rear pillar and unorthodox exterior styling -- exudes the attitude that it can take you on a ride that other crossovers can't. Why else would Edmunds' staff of normally circumspect scribes have fallen for the FX35's higher-end sibling, the FX50, as evidenced by the many Long-Term Road Test blog posts.
While the FX35 we tech tested doesn't have the full complement of cool tech that our LT FX50 is laden with, it has plenty of bells and whistles to go along with its exterior bling and performance prowess. But all these extras don't come cheap and are packaged so that you can't cherry-pick what you want. Our test vehicle topped out at $46,955 after starting out at $40,950, with the extra $5k consisting of two pricey but extensive options packages.
Our Forums discussion on extended warranties started in 2003 with the question, "Does anyone know of a "reputable" company that sells extended warranties, besides GM?"
Six years and almost 3,000 entries later, the discussion still rages. The most "reputable" extended warranty companies are, by and large, the automakers themselves. But there are many third-party extended warranty companies that are damaging the industry by roping consumers into bad deals or downright fraud.
Through clever language and misleading mailings, they fool many consumers into thinking they're buying an manufacturer-backed warranty. Many of their victims lose most or all of their money.
Our new article, Third-Party Extended Warranty Scams, comes hot on the heels of the new FTC ruling prohibiting robocalls, itself a result of the extended warranty scams that made national headlines this spring. It illustrates the nasty tricks these companies pull, and offers tips on what to look for in an extended warranty -- and when you should run in the other direction. Consider yourself warned.
The folks at CarMax recently released a checklist to help potential buyers identify flood damaged cars. Either private parties or car dealers could try to sell you one of these vehicles, which may appear to be in good condition, without disclosing the vehicle's history. According to CarMax's Jason Day, "Flood-damaged cars that are not...structurally sound could be repaired, re-titled and sold to unsuspecting buyers."
In addition to checking out our article on flood cars, this handy checklist should be required reading if you want to be as diligent as possible with your used car search.
Follow the jump for 10 tips on how to identify a vehicle that may have flood damage.
Do you ever think, "Where the heck is all my money going?" If you're like most Americans, the answer is housing (#1) and automotive expenses (#2). Since the economy has forced the word "budgeting" from the realm of accounting geekdom into dinner conversation, it's more important than ever for car owners to lower their vehicle's operating expenses.
All vehicle expenses aren't the same. Our new article, How To Budget and Lower Your Automotive Expenses, shows you where your money is going and goes into detail on how to save on finance and interest charges, taxes and fees, insurance, fuel, maintenance and repair.
For many people, the process of buying a used car ranks right up there with cleaning out the attic, taking the dog to the vet or getting a root canal. However, getting your next set of "pre-loved" wheels needn't be unpleasant and in fact can be somewhat exciting as you look for that just right car. To make this process much easier, we've come up with a list of 10 steps that should help you navigate through this jungle that can be inhabited by exaggerations, misinformation and confusion.
Almost every car company these days offers premium branded stereo systems, or at least upgraded audio options. But how do you know if the promise of better sound is worth the extra dough?
The short answer is simple: Just listen and your ears will tell you. But first you have to know what to listen for and what to listen to. In a recent feature article titled Sound Advice, we detailed how we critically evaluate a stereo system and the criteria and music we use to do it.
But you don't need years of experience or specialized test tracks to decide if a car stereo system meets your own standards when shopping for a car. You just have to know how to listen critically.
Compared to new car shoppers, used car shoppers have more people willing to sell them a terrible car at a terrible price, but they get less legal protection if they buy one. So unless you can't get enough of those doughnuts in the repair shop waiting area, used car shopping is not something to be done in a hurry, without first getting some education.
Don't worry; we've got your back. We've updated our very popular article, How To Get a Used Car Bargain, which walks you through step-by-step instructions on how to:
- Decide Your Price Range and Arrange Financing - Identify and Locate Your Target Used Cars - Test-Drive a Used Car - Negotiate - Close the Deal
Edmunds' Home and New Cars pages divide vehicles into various "types" (a.k.a. "market segments" or "categories"), which helps readers to quickly focus their car search. Although while many cars' types can be identified just by looking at them (a sedan is pretty obviously a sedan), readers have told us they're sometimes confused: What's the difference between an SUV and a truck, or an SUV and a crossover? What makes a car a hybrid? Confusing consumers more are the automakers that try to create new category names (like "sportback") to make their vehicles stand out from the crowd or to avoid the minivan/wagon stigma.
For our latest article, Defining Vehicle Types, our data and editorial staff put their heads together to develop practical, user-friendly definitions for Convertible, Coupe, Crossover, Diesel, Exotic, Factory Tuner, Hatchback, Hybrid, Luxury, Minivan/Van, Mobility, Performance/High-Performance, Sedan, SUV, Truck and Wagon. For example, if a car's roof continues straight past the rear doors, it's a wagon, but if it dips when it passes the rear doors, it's a hatchback? (Think about it!)
Boy, have you come to the right place to learn about negotiating for cars. Negotiating with auto dealers -- or even with private parties -- can be one of the most intimidating parts of the car-buying experience. Most of us would rather skip the fireworks and just get a great deal.
That angst is what launched the Saturn brand, with its fixed-price policy, and led to the "no haggle pricing" campaigns you sometimes see. But truly, you don't have to have years of negotiating experience to get a spectacular deal. In fact, you may not need to negotiate at all.
After a weekend in which a White House spokesman told the American public "go buy a car," many shoppers might be left wondering if they still have a green light under the cash for clunkers program.
Friday was a roller coaster day for dealers with the White House guaranteeing deals through the weekend and the House of Representatives approving an additional $2 billion to subsidize the trade-in of old cars for more fuel efficient vehicles.
Everyone wants to "time the market" with a new car purchase if they can, just like they try to do with stock prices or mortgage interest rates. That's why there are so many theories as to the best time to buy a car. Many of those theories aren't very reliable. What is true is that we are at moment in history where the factors influencing car deals have converged to make this an incredible time for bargain hunters.
One of the important things to remember, though, is that there is a lot of pent-up demand for new cars. Manufacturers have also cut back drastically on production. In the not-so-distant future, those factors will combine to drive the prices back up.
Where does this leave consumers who are trying to figure out when to make the jump?
With car shoppers expected to flock to dealership lots to claim the government's "Cash for Clunkers" credit, BMW has created an incentive of its own -- a $4,500 "Eco Credit" for its two new diesels, the 2009 335d and the X5 xDrive 35d.
BMW's Eco Credit is in addition to the "Cash for Clunkers" credit so a car shopper could be looking at the 335d would get a price reduction of $9,000. (Since the X5 has a base MSRP of over $45,000, it doesn't qualify for the Cash for Clunkers credit.)
Additionally, the 335d qualifies for a $900 alternative fuels tax credit and the X5 XDrive35d qualifies for a $1,800 credit. Finally, the sales tax on both cars is also tax deductible.
With Cash for Clunkers rolling out today, many manufacturers are viewing this as a chance to boost lagging sales. Some carmakers, such as BMW, are doubling the government's credit.
Consumers have long been lukewarm in their acceptance of run-flat tires. While many people like how a run-flat tire eliminates the hassle (and potential danger) of road-side tire changes, they've also found them to be more expensive, harder to replace, less supple in terms of ride quality and lacking in overall tire grip and performance as compared to an otherwise equivalent regular tire.
In the past 12 months, however, a couple of tire manufacturers have introduced next-generation run-flat tires. The companies say that these new tires deliver improvements in both ride quality and tire performance, thereby addressing at least a couple of people's concerns.
Last week we had the opportunity to test out these claims at a Michelin-sponsored event featuring Michelin's latest run-flat summer tire, the Pilot Sport PS2 ZP.
After witnessing a dapper, middle-aged man fueling up his Mercedes CLK convertible, completely oblivious to the fact that two of his tires were visibly low on air, it put me back on my tire maintenance soapbox. I gave him the heads-up and on my way in to work vowed to put up a blog to remind y'all to keep tabs on your tire pressure. Edmunds feels so strongly about this that we recently (on Earth Day) checked the tire pressure on nearly 500 cars and found that over half were under-inflated.
Good car care doesn't require greasy fingernails, bloody knuckles or oily footprints on the new carpet. With these car care tips, you can keep your vehicle healthy while keeping your hands clean.
Edmunds.com has so many great calculators, tools and capabilities on its website that some things don't get the attention they deserve. This week, our Idle Chat hosts give a shout out to their favorite features on Edmunds.
Mr. Romans:Edmunds Local Services is my favorite. Here, consumers can rate their recent dealership experiences (for both sales and service) and locate and rate local repair shops. It's word of mouth experience right at your fingertips. Plus, its automotive focus makes it easier and quicker to get info than from something like Yahoo Local. Edmunds Local Services is still relatively new and unknown, though, so there aren't a ton of ratings yet. But the more people that use it, the better it gets.
Ms. MacKinnon: I want to make an Edmunds Comparator T-shirt. That's how much I love the Comparator. If you're researching a car, it's your best friend. The Comparator allows you to choose up to 5 cars (all the way down to the trim level) to compare side-by-side. Then you can toggle between four different sets of information: Pricing, Ratings, Features, and Specs. There's even a printable page so you can take a break from the computer. The Comparator's also a great way to compare trim levels within a specific model. If you know you want, say, a Nissan Altima, but want to see what features come with each trim level, just load up the Comparator with a bunch of Altimas and compare away!
Idle Chat is hosted by Bryn MacKinnon and Brent Romans, two editors at Edmunds.com. Each Sunday in the Idle Chat Lounge (read: beside the koi pond at Editor in Chief Karl Brauer's house), they pontificate on a topic that's kinda about cars. They might have listed more favorite features this week, but you know, it's "Idle Chat," not "Bryn and Brent's Great Weekly Web Thesis."
Pop quiz: Of the Toyota Yaris, Chevrolet Aveo and Saturn Vue, which is cheapest to insure?
If you guessed the Yaris or the Aveo, your answer is incorrect. The Vue actually offers a lower insurance rate than both these vehicles. This achievement is no fluke. If you were to look at a list of models offering the lowest insurance expense, you'd find that the best bets are often SUVs and crossover-type vehicles like the Vue.
Of course, some crossovers and SUVs offer better deals on the insurance front than others. Click here to learn which 10 are cheapest to insure.
My 2000 Mitsubishi Galant has a trade-in value of $2,437 but it isn't technically a "Clunker."
Many folk have been asking about Cash for Clunkers, how it will apply to their specific situation and details of how the program will work. I have a clunker. It's a 2000 Mitsubishi Galant. I'd love to turn it in for a $4,500 voucher but I can't. The mileage is too high -- 21 mpg combined. Not only that, but I'm not looking to get into a car payment right now.
But based on the email we're getting about this bill that was passed last Thursday, a lot of you are sharpening your pencils and staying up late at night looking for loopholes in this government program.
"Hey, what if I trade in TWO clunkers? Can I get $9,000?" Or, "Can I tow in a rusting piece of junk and get my voucher?" And even, "Can I put an ad in the paper, find someone with a clunker, trade it in and buy a car for me? Then I'll give the guy $500."
Calm down everyone. You're making this WAY too complicated. Here's how to think this through.
Buyers know a test drive is crucial in ascertaining the value of a used car, but few know how to conduct this endeavor in a truly productive way. Instead, most used-car shoppers just motor around a bit and listen to the sound system.
These 10 tips will help you make the most of your test drive, so that you can competently separate the keepers from the clunkers.
In a series of press conferences today, President Obama and GM's CEO Fritz Henderson released details on GM's earlier filing for Chapter 11
bankruptcy protection.
Saying, "give us another chance," Henderson promised that the bankruptcy filing would be "the start of a new and better GM." He predicted that the restructuring process would take from 60 to 90 days. GM has launched its own site to help keep the public informed of its latest efforts and promotions.
Henderson was preceded by President Barack Obama who essentially said that Chrysler's apparent reemergence from bankruptcy bodes well for GM's long term success. He noted that after entering Chapter 11, Chrysler sold more cars in May than in April. However, he didn't mention that most of those sales were at fire sale prices.
Chrysler announced yesterday that half of the inventory it's trying to liquidate from closing dealerships (over 44,000 mostly 2008 models) has already been sold.
You've heard there are great deals at Chrysler and GM dealerships that are closing due to recent or impending bankruptcies. Still, did you know that you shouldn't pay asking price for a car, no matter how low that is? So how do you find your best deal?
Negotiate.
Are the rules different now that Chrysler has until June 9 to sell its inventory? The answer is yes. Here's what we suggest.
Whenever we discuss whether there's a "best" time to buy a car, a lively debate ensues. End of the month, in the rain, end of the year -- there are lots of possibilities for saving money. Taking a lesson from Wall Street, though, we tend to believe that trying to "time the market" is fraught with peril. But one thing is generally true, and that's that holidays bring out special incentives on new vehicles.
It's not enough, though, to just run into the car dealership and get a new car to try to take advantage of, say, $500 cash back being offered for Memorial Day weekend. Why? Because that time pressure (buy it before the incentive disappears) can cause you to grab a "deal" that isn't really the best one for you.
You need a real plan to save real money. Our article, Your Three-Day Shopping Plan for Holiday Weekends, covers all the bases. The most important step, of course, is figuring out how much car you can really afford, made easy with our new Affordability Calculator. The hardest part? Sticking to that budget! Seriously, though, if you follow the plan, you'll be sure to finish the holiday weekend with confidence that you've got the best possible deal on your new wheels. I did this during Memorial Weekend last year, and walked away with a great deal on a Nissan Altima Hybrid with all the trimmings. I never had to wonder if I could have done better, and that's a great feeling to have on such a major purchase.
A number of us on staff here have personal cars that don't get driven much (yes, there's some Photoshop-enhanced humor there). A big perk of our job is getting to drive all kinds of new cars all the time, hence the semi-retired life of our personal rides. We've even dubbed the parking area for them the Editorial Graveyard, as some of the vehicles (including yours truly) have a layer of dust on them seemingly dating back to the Clinton Administration.
Automakers have been aggressively muscling in on the aftermarket's dominance in car electronics for about 10 years now. A watershed moment for me was when Lexus linked up with the high-end home-audio brand Mark Levinson in 2000: It was the first time I thought that the sound quality of an OEM system could be seriously compared to what was available from the aftermarket. But you could still get something better from the aftermarket for the same amount of money.
What a difference a decade makes. Not only have auto-audio brand hookups proliferated, but car companies have taken the lead on several tech fronts, such as with the seamless iPod and Bluetooth integration offered by Ford's Sync system -- for which the aftermarket still hasn't come up with a better or less expensive alternative. Talk about a reversal of roles.
And although the aftermarket will always be the place to go if you want the utmost quality, maximum flexibility and the latest features, we wondered whether automakers or the aftermarket now offer the best value for the average consumer. So we considered four categories in which the two camps compete -- audio, rear-seat entertainment, navigation and Bluetooth -- to determine whether you get more for your money from automakers or the aftermarket.
While not an apples-to-apples comparison, our analysis gives a good indication of what it will cost on average to go each route. And the results we found in a recent feature story are surprising.
One of the most popular questions we get is, "What is the definition of a hybrid?" Recently, Edmunds' Director of Testing, Dan Edmunds, broke it all down and demystified the technical jargon in a new article.
Briefly, the most basic definition of a hybrid is a vehicle that uses more than one form of onboard energy to achieve propulsion. In practice, that means a hybrid will have a traditional internal combustion engine and a fuel tank, as well as one or more electric motors and a battery pack. Some of the terms associated with hybrids are motor-generator, start-stop, regenerative braking, and electric drive.
Those terms are defined in his article, along with the three "hybrid layouts":
You'd have to live way off the grid to not know that Chrysler just declared bankruptcy, and that Pontiac, Saturn, Saab and Hummer are in their death throes. But where does it leave consumers?
As Phil Reed noted yesterday, and as we detailed in this article, the immediate impact on consumers should be limited (see the above links for details if you're still worried, but you needn't be unless you work for one of those companies or their dealerships).
Yes, it's a shock to realize that your car's brand may cease to exist -- or be reincarnated as something you don't recognize. But will that change the way you feel about your car?
On Earth Day last week we offered to check and fill tire pressure for free at a local Shell Station. We recorded the air pressure levels people were riding around on and, well, it's pretty amazing. And a little scary.
I thought everyone was going to be super low. Instead, they were super all-over-the-place.
We checked 83 cars at the Shell Station and recorded the levels people were driving on. (Meanwhile, at other locations around Santa Monica, another 400 cars were checked -- but no data was collected.)
As half of America tries to sell its old junk on eBay to try to make a few extra bucks, people who have clunkers in the driveway are hoping to offload them for cash. Selling your used car to a private individual has always been the best way to make money on it -- dealers won't give you as much for it. But what about taking a tax write-off if you donate your car to charity? Advertising abounds on television and in the papers, encouraging well-meaning people to help their causes with a used car donation. Sounds like a win-win.
But in 2005, the federal laws changed, largely because people were abusing the system. Today, if your car is valued at more than $500, your deduction is limited to the price that the charity can get for selling your car, which happens at auction. The donor must attach a statement of sale to the tax return in order to receive the deduction. (The charity is obligated to provide the statement within 30 days.) Here are the problems with the new system: You are not entitled to know the deduction amount before donating your car. And auction prices are notoriously low.
There is still a way to deduct full market value of your used vehicle: If the charity uses the car itself to further its specific purpose. For example, the nonprofit organization 1-800-Charity Cars refurbishes donated cars and provides them directly to the economically disadvantaged. Its goal is to help the needy and welfare-dependent to become self-sufficient, tax-paying citizens. But most cars donated to their organization don't qualify as "program cars" and end up at auction, regardless.
The bottom line? Charities still desperately need your cars, but donating one, like any true charitable giving, should be done without expecting much in return.
For more the details on what qualifies and how, click here.
If you've recently bought a used car, or even if you've owned yours for some time, occasionally checking for TSBs (Technical Service Bulletins) and Recalls is well-advised. TSBs are typically non-safety-related defects whereas Recalls are safety related. You can get the low-down on both with this article.
Either way, you'll want to know whether or not your car has any potentially upleasant surprises in store for you. To get the skinny on your car, go here and you'll see links for "Safety Recalls" and "Service Bulletins" on the left hand side.
This new feature for Edmunds Daily about car repair and maintenance is written by Tom Torbjornsen, the popular host of America's Car Show on satellite radio. His column will appear weekly on Wednesday afternoon.
Dear Tom, I own a 2004 KIA Amanti with 15,000 miles. At the last inspection, the mechanic said the vehicle would need brakes all around in a couple of months. He quoted me a price of $772, and he said that I should have ceramic brake pads installed. Is it necessary to go with ceramic pads and is this a reasonable price? What type brakes do you suggest? -- Cindy from Rochester, NY
Cindy, Ceramic pads will hold up better to high-speed stops compared to metallic brake pads. In addition, ceramic pads are quieter, they do not produce "brake dust," and they wear less on brake rotors. Overall, I prefer ceramic brake pads. The price you were quoted seems high. Call for a couple more quotes and make sure you tell them the specifics of what the first shop quoted you. That way you will be comparing apples to apples. In my area (Western New York) the going price for pads and rotor replacement is usually about $150-$200 per axle set. -- Tom
Dear Tom, I own a 2004 Chrysler Town & Country minivan (small V-6 engine) with 78,000 miles. I hear a single clicking sound in front under the floor when I shift from drive to reverse or vice versa. The car seems to shift fine (no gap in gears). However, the sound worries me. I don't notice this problem when shifting from low gears to drive or from park to drive or reverse. Could the noise be an indication of a future transmission problem? -- Ed from Jamestown, NY
Don't get too excited, but spring has officially entered the building. This means that somewhere ice is melting, flowers are blooming and birds are once again bursting into song. More importantly, though, the advent of spring suggests that it's time to start getting your car prepped for the warmer weather that lies ahead.
If you live in snowy climes, you'll want to enlist the help of your garden hose or lawn sprinkler to get rid of road salt before it does a number on your car's undercarriage. And how about those wiper blades? If they've been working hard all winter battling the white stuff, they'll likely need some attention; don't wait for a heavy spring or summer rainstorm to discover your blades aren't performing properly.
There's as much advice about when to buy a car from a dealer as there are days in a year. Some say that Mondays are good because business is slower on Monday than on the weekend. Others advise to go when it's raining or snowing, because who wants to look at a car and get wet? Still others say that the end of the month is the best time, because the dealership needs to make its quota and will be more willing to cut a deal. And finally, others advise not to buy a car until the end of the model year, or in slow months like August or December when people are busy thinking about going back to school or shopping for Christmas gifts.
While there is some truth to all these theories, our advice is that you should not buy a car until you're ready. By then you have saved enough for a good down payment, researched the lowest interest rate, and you know all the current incentives and rebates. And by the way, you'll never get a good deal when a new hot model has just been introduced. Those vehicles are in demand and go for over sticker price. Let the excitement die down if you want to get a discount.
(Car buyers often buy the warranty under pressure. Photo by Andrew Reed.)
A friend of mine said she just got a screamin' deal on a 2009 Chrysler Town and Country Limited but she was concerned because she bought the extended warranty and didn't know if she needed it. She knew that there was a lifetime power train warranty but she was wondering if it applied to the transmission.
Though this is bound to stir up lunch- and dinner-time "debates" between husbands/wives, boyfriends/girlfriends and brothers/sisters, a recent survey done by leasetrader.com found that girls tended to be slobs more than the guys when it came to keeping their cars' cabins clean.
The economy is on everyone's mind. But if fuel economy is part of that picture (we argue that fuel economy should be a "must have" when car shopping), Edmunds has several different methods to find the perfect gas-sipper. .
* Use Advanced Search (in the "Specifications" section, select the MPG range from the drop-down menu under "Fuel Efficiency") * Check out our Fuel Economy Center * Check out the Green Car Guide * Review some of our Top Ten Lists on fuel-efficient vehicles
* From the New Cars area of the home page, you can also select "Hybrids," "Diesels"
What if you just want to see vehicles that get a certain MPG? Do this...
The fact that you're a car shopper on a very tight budget doesn't mean that economy hatchbacks are your only options. Midsize sedans are available that will set you back less than 20 large.
How does a Mazda 6 sound? Or a Hyundai Sonata? Or a Toyota Camry? Click here for the full lineup.
