Back in the early '90s I worked for a couple of months during the summer at an Acura dealership selling new and used cars. Being a somewhat naive car nut and needing a job, I figured my automotive expertise and honest demeanor would work with a respected, high-line brand.
Yes, I was wrong; I distinctly remember the sales manager telling me "You gotta hammer these people!" because I would try to arrive at a mutually-agreeable price rather than go for the jugular. I nicknamed him "Gino" because he looked and talked (in a low, husky voice) like he was in the mafia. But I digress. I did learn a few things there, such as what pushed buyers' hot buttons...
The importance of placing a concise, effective ad when you're selling your car can't be overstated. What may seem so obvious to some people completely escapes others (such as stating the mileage). To help you out, following is a list of five key points to keep in mind when working up your ad.
In the olden days, headlights were made of glass and were round (okay, sometimes rectangular). Most modern headlights have plastic lenses/covers that in time get hazy and even yellowed as they age. Thousands of miles of getting bombarded with dirt, sand and grit are to blame for clouding up these headlights. And until recently, you had no option but to replace them with expensive new units. Depending on how far gone they are, you can probably save them with a headlight restoration kit, provided you don't mind mimicking Daniel-san in the Karate Kid.
Drive by new car dealers and used car dealers and it's hard not to notice the difference. The new car dealer typically has a much larger building and lot, as well as nicer furnishings inside and out. The used car dealer, meanwhile, will likely have a smaller facility, a less luxurious showroom and a dearth of manicured real estate. So of course, the new car dealer will have better used cars, right? Don't be so quick to answer that...
While doing research on the Dodge Challenger, I was reminded of yet another reason why Edmunds continues to be the go-to source for used car information. Perhaps you didn't know this, as there is so much on our site, but we have a section on model histories.
We have dozens of these covering many popular models, and they cover a given model from its birth to its latest form. The information provided is exhaustive -- I know because I used to write them! So you found an old but nice, low-mileage 1996 Accord EX in the classifieds and want to know the differences between the LX and the EX? We've got you covered. Got a bet going with your gearhead friends on how much horsepower the '84 Mustang GT had compared to the '87? No problem.
I provided the link (above), but to otherwise access them, here's the drill: From the Edmunds home page, click on "Car Reviews" (on top of the page), scroll down all the way and click on "Model Histories" (on left underneath "Retrospectives").
When you're shopping for a used car it's essential to get it inspected by a professional before you decide whether to buy. But let's face it, schlepping to the mechanic is a hassle. Now there's an alternative. Alliance Inspection Management (AiM), based in Long Beach, Calif., is offering pre-purchase car inspections to consumers who are buying or selling a used vehicle.
A 150-point inspection can be scheduled online through AiM's website. AiM has conducted more than fifty million new and used vehicle inspections for corporate clients including auto manufacturers, financial organizations and daily car rental companies.
So I headed back to the East Coast for a wedding this past weekend, which gave me a chance to reacquaint myself with my old 1995 Acura Integra GSR. My parents are driving it now, and with 14 calendar years and 108,000 miles on the clock, it couldn't be running more smoothly. This, folks, is a special car, a sublime marriage of Civic reliability and M-Division enthusiasm -- but driving it also reminded me of the two months I spent scouring the online classifieds before I found this thing back in the summer of 2006. Which brings me to the subject of this column: whether it's worth the considerable effort that may be required to find that unblemished gem of your dreams.
In the crossover craze that's been going on for the better part of this past decade, it's hard to remember those things called station wagons. A dying breed, traditional station wagons are similar to their sedan counterparts until you get to the C pillar, where past that, instead of a trunk, you have an extended roofline over the cargo area.
Station wagons are typically smaller, lower and lighter than crossovers. As a result, they offer sportier driving dynamics (especially those based on sport sedans), better fuel economy and easier maneuverability in crowded streets and parking lots. And let's be honest, the additional cargo capacity they offer over the sedan version is usually more than enough for most folk's needs.
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.
So my dear friend The Professor bought a car last weekend -- a 2007 Mazda 3 hatchback with 23,000 miles. It was a private sale, and he got a doozy of a price: $13,400, well below our TMV.
Before closing the deal, though, he decided to check out the offerings at the enormous nearby Mazda dealership in Van Nuys with a name beginning with "G," which shall remain nameless. I tagged along. We asked the used car salesman a simple question: "Got any used Mazda 3 hatchbacks with automatic transmissions?"
Most folks probably think of car owners' clubs as something meant only for those who wash their beloved car with baby diapers and who can recite production numbers and engine output figures at will. Though that's certainly true, these clubs are also a great benefit to owners who may just be interested in some advice or who are looking to buy or sell a particular model.
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.
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
How does a Corvette V8-powered, four-place Grand Touring coupe that can dash to 60 mph in about 5.5 seconds, run the quarter in 14 flat and yet get up to 25 mpg on a long trip sound? And what if we told you that there are mint, low mileage examples available for under $20,000?
We're talking about the 2004-2006 Pontiac GTO, the made-in-Australia Poncho that had old-school muscle car purists treating it like Rodney Dangerfield ("I tell ya, I get no respect!") and performance car purists dinging it for its less-than-agile handling. Hey, that's their loss and it results in these modern, fast yet comfortable muscle cars being one of the best used car deals of that last couple of decades. Throw a performance set of springs/shocks/bushings and brake pads on it and you're good to go.
When it comes time to replacing tires on a car that was bought new, many consumers automatically go with original fitment. "That's what the manufacturer used, so it must be the best tire for this car" or so goes the wisdom. But due to factors such as the carmaker wanting to keep production costs down and tire science advancements giving rise to better performing tires, this is not necessarily the best way to go when its time for new sneakers for your ride.
With those ever-increasing advances in tire technology one of the best ways to improve your cars road holding ability, handling and hence safety might be to consider a different set of tires.
This was clearly illustrated during a Dunlop event I attended where the company introduced a a handful of new tire models. Not to spoil the story, but I can say with certainty that the right tire choice can make a noticeable, "seat of the pants" difference, whether you're talking about a hard-working family car or a high-performance sports car.
Here at Edmunds, we don't just have articles and advice on buying a car, we also have plenty of useful information to help you out if you're selling some iron too.
Unless you are planning on buying a new car and/or:
a) Your car qualifies (and it makes financial sense) for the Cash for Clunkers (aka C.A.R.S. or C4C) program
b) It doesn't qualify for C4C and you don't mind trading it in and taking a big hit
...then you're looking at unloading that puppy on your own. But before you drop that ad in Craigslist, however, you might want to optimize your chances of having a quick, minimal hassles sale by reviewing our 10 Steps to Selling Your Car.
Who would've thought that the day would come when people would buy cars without actually "kicking the tires", you know, seeing the car in person? Now, with eBay (and other sites such as AutoTrader), not only has this happened, but it's proven wildly successful. Thanks to high-resolution photos and the option of having a mechanic check out your internet find, this method of buying used and classic cars is no longer considered strange or foolish.
But once you find that cherry '89 Firebird Formula 5.7 with only 12,000 one-meticulous-owner miles, you've got to get that baby home. If it's far away, you may want to fly out and make a road trip of it, but most buyers elect to have the car shipped. To get the skinny on how to go about this, check out this Edmunds article on How to Ship a Car You Bought Online.
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.
With a few key strokes, a car salesman can turn the cash for clunkers into gold -- for them.
Now that the Cash for Clunkers bill (aka CARS) has been signed, and will go into effect July 23, it's time to think about how to actually apply the cash credit.
Some readers have suggested that dealers will perform their usual sleight of hand with the government credit of $3,500 or $4,500.
What could go wrong? A lot. Let's take a closer look.
The thought of owning an AMG version of a given Mercedes-Benz would appear to be senseless fantasy for most car nuts. But if you don't mind the boutique roadster (or "secretary's car" as some colleagues are fond of saying) reputation of the first-generation SLK, there's some serious performance to be had for less than new Miata money...
Chrysler isn't getting much respect these days, and rightfully so. My colleagues regularly ridicule many Mopar products, from the Playschool-like Dodge Caliber to the underwhelming Sebring. But did you know that Chrysler offered a stylish coupe and convertible that featured a Mercedes-Benz platform and engine? Well, from 2004 to 2008, they did.
That's what NHTSA told us when they called us. They want to warn consumers not to fall for the scammers taking advantage of the new Car Allowance Rebate System (CARS, also known as the Consumer Assistance to Recycle and Save, or in the vernacular, Cash for Clunkers or C4C).
President Obama hasn't even signed the bill yet, but already there are Web sites that promise to shepherd you through the system. They ask for personal information, including your email address and sometimes require you to fill out a credit application!
Chances are, if you're shopping for a used midsize family sedan then you're well aware of the Toyota Camry's strong record for being recommended. And yes, we agree. But what about other used vehicle segments, such as compact crossover or wagon, where top picks may not be as well known? No worries, we're here to help with our Used Car Best Bets, where, every year, we select our top choices in each segment based on their functionality, performance, safety, reliability record and value.
Over 36,000 Kia Optimas residing in states (such as Massachusetts and Michigan) where the roads are salted during the winter are being recalled for a potential problem with the front subframe. Seems that the road salt can cause internal corrosion of the Kia's front subframe where it meets the suspension's lower control arm. At minimum, this could result in wheel misalignment that can cause accelerated tire wear and problems with steering. The worst-case scenario would be a separation of the control arm from the subframe, which could result in a crash.
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.
It's easy to be skeptical about cars from a rental fleet because you don't know how much abuse they've suffered under their multiple drivers. And they often come without of a lot of desirable options. When money's tight, though (and when isn't it?), these vehicles can be real bargains.
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.
Dream Car Corner is a new feature that we will have from time to time. The purpose of DCC is to allow us to cruise the online car ads on company time, umm, we mean highlight potential good deals on dream cars of all types, ranging from old muscle cars to newer exotics. We dream about a lot of cars -- one week we might feature a late '90s Aston Martin DB7, another week might highlight a mid-70s Cadillac Seville.
Dream Car:1968-1970 AMC AMX
Brief History: Introduced as a late 1968 and running through 1970, the two-seater AMX is not nearly as common as an old Camaro, Mustang or Barracuda. Essentially a shortened Javelin -- which was AMC's answer to the aforementioned pony cars -- the two-seater AMX boasted show car styling and agile (for the day) handling.
A 290 ci (225 hp) V8 was standard, with a 343 ci (280 hp) and 390 ci (315 hp) V8s optional. A four-speed manual was standard, a three-speed automatic optional. An AMX with the 390 and 4-speed could sprint to 60 mph in about 7 seconds flat and run down the quarter mile in the low- to mid-15 second range.
Looking for the classic car of your dreams has never been easier. Though you may take this as a shameless plug for AutoTrader, given their partnering with Edmunds, well, you'd only be partly right. With their slick new site, AutoTrader Classics, they've upped their game, making it more enjoyable to see what's out there. There are now larger pictures (a previous pet peeve I had was the smallish photos), a slide show function and a more user-friendly search tool. The latter keeps your search info on the left-hand side when it displays the search results, allowing you to modify the search without having to "page back" or some such nonsense.
You can also opt to see only ads with prices and/or photos. I don't know about you, but when I see an ad with no price or photo, it raises a red flag. In the first case, it usually means the seller is looking for stupid money. In the second, he's too embarrassed or lazy to include some clear, useful photos of the car.
You want to sell your car yourself but you don't like strangers calling your house. Or maybe you've read a lot about online fraud and you're worried about possible ripoffs.
Take heart because a coalition of used car players met the other day, at the Petersen Automotive Museum, here in Los Angeles, to consider ways to keep you safe and facilitate the sales process. Organized by Mota, a site dedicated to used car sales (and featuring a great shot of babes sitting in a convertible on its homepage) the panel discussion included representatives from Carfax, eBay Motors, Cars.com, Pep Boys and AutoTrader.
It was fascinating hearing some of the stories about fraud and used car dangers. In fact, one panel member described the transaction as "stranger to danger." But others on the panel proposed some innovative steps to make the so-called "peer to peer" sales easier.
It's easy to get caught up in the moment when you're looking at a used car. You've been scouring the classifieds for weeks, and you finally found what you were looking for, and now you're test-driving the car and marveling at what a gem it is and hoping that the seller accepts your offer before someone else offers more...
This is precisely when you need to take a step back and think about whether you've gathered enough information to make an informed decision. I had not, but I went ahead and bought my 2001 Honda Prelude anyway. Turns out I got a pretty good one, it seems, but here are three things you should do before buying that I didn't.
It never ceases to amaze me how many people don't bother checking their owner's manuals for service requirements / intervals. The Quicky Lube shops tell you to get your oil changed every 3,000 miles. Yet, if you check your owner's manual, you'd see that the actual maker of your vehicle probably recommends changing the oil every 7,500 miles or so. So if you would like to save money (and a finite resource), keep tabs on what your car needs by taking a look at the maintenance schedule.
We can understand that perhaps when you purchased your used car, the manual was M.I.A. Not to fear, Edmunds is here, with an article on where to find your manual online as well as our handy online maintenance guide for thousands of vehicles. To use the latter, simply enter your car's basic info (year, make, model, engine, transmission) and you'll be brought to a page showing various mileage intervals. Click on whichever most closely matches the miles on your car and you'll see what should be done. The parts, labor and total estimated cost are all shown.
Last summer, when gas was over $4 a gallon, hybrids, the Prius in particular, were selling faster than U2 tickets. In fact, used Prii were commanding especially strong money -- more than what they stickered for new in many cases.
What a difference 7 months makes. Now that gas prices are back to the $2/gallon range, Americans have cooled their heels (big surprise) towards hybrids and compacts. What this means is that there are now some good deals to be had on the still-desirable Prius -- I've always been impressed by it's combination of comfort, generous passenger/cargo room, decent performance and of course real-world achievable 45-mpg fuel efficiency.
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 $500, your deduction is limited to the price that the charity can get for selling your car, which happens at auction. The donor must attach a statement of sale to the tax return in order to receive the deduction. (The charity is obligated to provide the statement within 30 days.) Here are the problems with the new system: You are not entitled to know the deduction amount before donating your car. And auction prices are notoriously low.
There is still a way to deduct full market value of your used vehicle: If the charity uses the car itself to further its specific purpose. For example, the nonprofit organization 1-800-Charity Cars refurbishes donated cars and provides them directly to the economically disadvantaged. Its goal is to help the needy and welfare-dependent to become self-sufficient, tax-paying citizens. But most cars donated to their organization don't qualify as "program cars" and end up at auction, regardless.
The bottom line? Charities still desperately need your cars, but donating one, like any true charitable giving, should be done without expecting much in return.
For more the details on what qualifies and how, click here.
As you avid readers out there may recall, I've been looking for an Integra replacement, having parted ways recently with my perhaps uniquely unmolested '95 GSR hatchback. I think I found a suitable candidate last night (stay tuned for a more detailed post on the purchasing process), which is a relief, because I was starting to dream in Craigslist classifieds. Speaking of which, there are a few things that I never ever EVER want to see again in ANY automotive classified ad. Three of 'em, to be precise.
3) "$X,995." I know Walmart and dollar stores have a lot of luck with this tactic, but seriously, what screams "sleazy used car dealer/private party" louder than a price that ends in 995? Round up. Please. It's a car, not a box of plastic forks.
2) "Babied." This almost certainly means the seller drove the snot out of it, especially if it's a performance/modified car. Did you really baby your '99 Civic Si with the grapefruit-sized tailpipe and Lambo doors and "JDM swap" that's been lowered to the bumpstops? Let's dispense with the hyperbole, shall we, and keep to useful information like "all scheduled maintenance performed" -- a claim you don't often hear from those who supposedly "babied" their cars.
1) "Highway miles." Do you EVER see a low-mileage car described as having "highway miles"? No. Of course not. "Highway miles" is a transparent euphemism for "Oh, Schmidt! My car has a bajillion miles on it! How am I ever going to get rid of this steaming pile?!" No, the fact that your '93 Camry has 274,000 highway miles does not make me feel the slightest bit better about the fact that it has 274,000 freaking miles! If you tracked the car or drove it primarily on a winding road above 5,000 rpm with the tires squealing, yes, I would like to know that. Otherwise, just the miles will do, and please don't make me email you because you didn't list 'em. Thanks.
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.
Many people write into Edmunds with questions about problems with their vehicles. We'd love to answer all of these questions individually, but if we did, we'd have no time for anything else. (Not to mention that it's risky to diagnose a problem without physically examining the car.) But there are plenty of sources for help on Edmunds, and you'd be surprised how many good ideas you can find if you take the time.
First, look at our Long-Term Road Test blog to see if the editors have tested the make/model of car you've got. We chronicle everything we find wrong (or right) with these vehicles while they're in our fleet.
Next, check out your vehicle's Technical Service Bulletins. They can be a little dense to read, but you'll often have an "aha!" moment if you look down the list of all the little problems that the manufacturer has acknowledged -- at least to their service departments.
Also try Edmunds Answers. Ask a question, get some answers! There are specific categories, such as Car Maintenance/Repair, to choose from. Other consumers -- some of whom are really savvy -- will weigh in on your specific question. (You might even get a staff answer or two in there.)
We also have tremendous resources in CarSpace. In the Forums, you can browse the discussions by vehicle, the forums by make (and model), or by theme (such as Auto Repair). You can then search the discussions by keyword ("transmission"). Whatever path you take, you'll be able to check a specific model for known issues and to see if other owners have had similar experiences. You can also ask a question of the group.
This new weekly 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.
Dear Tom, I own a 2003 Mitsubishi Eclipse 4 cylinder with 60,000 miles. I have the oil changed every 3,000 miles and I have followed the maintenance schedule as recommended by my dealership. For the 60,000-maintenance service I was told that the timing belt should be replaced and all fluids flushed. The estimate was between $800-$1000. Is this necessary for a car with only 60,000 miles? -- Julie from Sarasota, FL
Julie, Yes, I would do this maintenance. The engine (2.4 Liter SOHC) on your car is an "interference engine." It is designed in a way that, if the timing belt breaks, the valves will collide with the pistons, resulting in catastrophic engine failure. There are two timing belts to replace on this engine, one for the camshaft and one for the balance shaft (which quiets engine vibration). Have both replaced. The transmission, cooling system, and whatever other fluids should be serviced along with replacement of proper filters that go along with the service. You might want to get an estimate from an independent shop to see if you can save some money, but I would definitely follow this scheduled service. It's a good idea to check your maintenance records first to be sure that you don't have work done now that was already done at a previous time. -- Tom
(The salesman assured me this car was a trade in -- Carfax showed it had been a rental.)
Last week the FBI announced they had broken up a huge "vechicle cloning" ring which affected thousands of consumers. New identities were created for hot cars using stolen vehicle identification number tags and then sold to unsuspecting buyers. This news comes as Americans are shifting toward buying used cars because of the poor economy.
How can you protect yourself against this sort of crime? And what's the best way to learn about a used car's checkered past before you buy it?
Experienced Edmunds users do their pricing homework before they hit the dealership lot, and with our new New Car Inventory tool, can often see which specific car is available on which lot. But let's say you go to a dealership without having done all that, or you see a different car (new or used) on the lot that piques your interest. How do you know the salesperson is offering you a fair price right then and there? Or what you can really afford to pay for it?
The answer is simple: Look it up on your mobile phone or PDA. Edmunds.com Mobile offers users of mobile phones, PDAs and other mobile devices a selection of the same information found on our standard site, including vehicle pricing, specifications and reviews, and our Auto Loan Calculator. And if you don't think you're getting a good price (or good treatment) at the lot you're visiting, you can find another one nearby by using our Car Dealer Directory.
You don't need to download anything to access the site. Just type m.edmunds.com into your mobile device's browser. It's free to use, although your service provider may charge you for time spent on the Internet, of course.
Many of the worst car-buying decisions happen because customers are on the lot and don't have all the information at their fingertips. With Edmunds Mobile, that doesn't have to be you.
So I've sold my '95 Integra GSR. Loved the powertrain -- that's how a four-banger should sound and respond, and that's how a shifter should feel -- but can't say I loved much else. I need a replacement player, but I'm torn between sporty things and completely ridiculous things. How do you feel about...
3. A mid-to-late-'90s Lexus with a V8. These old Lexus V8s -- namely those in the SC400 and LS400 -- are the very definition of "bulletproof reliability." Remember, this was when Lexus was still establishing itself as a marquee brand, so its cars were overengineered to be wildly dependable. I do love me some V8, even if it's only got 250-290 horsepower. And after putting up with the Integra's skateboard ride and road noise for awhile, I could use a little luxury in my life.
2. An old Caprice, or some comparable American beater. Excellent donk potential (see picture).
1. You tell me. Keep the budget to about $10 grand and under, and keep in mind that I appreciate entertainment value as much as performance these days. What's my next car?
Here at Edmunds we provide you with all you'd want to know about used cars, including how to buy 'em, how to sell 'em, how to maintain 'em, our top picks, etc. But today we've decided to turn the tables and ask you all for some information. We're interested in what your experiences have been with your "previously loved" vehicle purchases.
What have been your all-time best and worst used cars?
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
In an attempt to bolster sales, AutoNation
, with 232 dealerships nationwide, has announced a new program where it will cover monthly car payments for up to six months if a car buyer loses his or her job. The "AutoNation Payment Protection" program will last 12 months, and follows in the footsteps of Hyundai's Assurance Program. Hyundai's program has been a big hit and sales have risen by 25 percent since it debuted in January.
The AutoNation Payment Protection program is being offered at no charge with purchases of new and used vehicles and is also available on leased vehicles. To qualify, a person must have made at least three monthly payments, lost their job involuntarily, and applied for state unemployment. If a person still cannot make the payments after the six month grace period, the dealer will buy the car back at its market value. The customer would be responsible for any negative equity.
In this unpredictable economy, a program like this might instill some confidence in the buying public. And the great part about the AutoNation program is that you're not limited to just the Hyundai brand. AutoNation owns a dealership of just about every major brand.
Follow the link to get the full story from Auto Observer.
Nowadays, any segment of the automotive industry that isn't in decline is considered a success story. And so it is with certified pre-owned (CPO) vehicles. According to Edmunds data, while new car sales dropped 20.1% and used cars dropped 8.1% as a percentage of franchised dealership sales in the last 12 months (Feb. '08 - Jan. '09), CPO vehicles have risen 6% during the same time. (In fact, a month ago, Edmunds reported that approximately half a million car shoppers that would have bought new cars in the previous three months had opted for used cars, including CPO vehicles, instead.) This trend continues despite the record-setting rebates available on many new cars, whereas CPO vehicles only qualify for special APR financing.
Automakers, in response, are pumping up their CPO programs. Last month, Toyota extended its certified used program to its Prius, Camry and Highlander SUV hybrids, making it the first dedicated certified pre-owned program for hybrid vehicles. As more of the popular hybrids come off lease, the new Toyota Certified Hybrid program will allow more people to get into these fuel-efficient vehicles at a price they can afford.
BMW, which leases a huge percentage of its new cars, is pushing its CPO program as well. They're offering 0.9% financing on MY 2006 vehicles through April 30th. That will allow many consumers who coveted the BMW name, but couldn't afford one, to finally get in the driver's seat. Although it wasn't true a few years ago, today every mainstream brand offers a CPO program. You can get details on all the individual CPO programs here.
Currently, CPO vehicle prices average $1,284 more overall than non-certified vehicles, but they come with the peace of mind that only a comprehensive inspection and a factory-backed extended warranty can provide. And because they don't take the depreciation "hit" that new cars do, you're typically getting a better bang for your buck. It's no wonder, then, that buyers are opting for CPO over new or plain old "used" vehicles.
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.
Each Wednesday in the Idle Chat Lounge (read: a bus bench in front of the In-and-Out Burger by Bryn's house), Brent Romans and Bryn MacKinnon, two editors at Edmunds.com, pontificate on a topic that's kinda about cars.
Today's Idle Chat Topic: Do you eat in your car?
Ms. MacKinnon: Cheeto dust. Burrito fallout. Cappuccino overflow. Blech. I do eat in my car, but I try to choose dry, non-crumbly foods that can be popped into the mouth in one shot. I'm not that concerned about the residual values of the cars I own (I tend to keep cars until they must be towed away to the recycler), but I hate the sick, sweet-rot smell of a food-dirty car. So you won't find me nibbling industrial hash browns from a greasy paper wrapper, but you might catch me snarfing a whole box of Girl Scout cookies.
Mr. Romans: Well, yes. Normally, I stick to simple snacks. But a couple of months ago, I was late driving somewhere and in dire need of a meal. I picked up a bean-and-cheese burrito. Bad idea. About half-way through consumption, a blob of leaky cheese and reconstituted bean broke free and landed on my shirt. (At least it wasn't as bad as what happens in this eat-in-your-car video.) Another reason: just like smoking, eating in your car really does leave an odor. I once bought a used 240SX that smelled like Indian food. Even after a year, a friend snarkily remarked, "Dude, since when did you start doing deliveries for Bombay Palace?"
Even those considering a used Porsche 911 can appreciate a bargain, especially in these economically depressing times. If we told you that you could buy a nice, low-mileage (25k to 35k miles) Porsche 911 for $25 to $30 grand, you might wonder if we've been spending too much time inhaling fuel fumes and burning rubber at the test track.
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...
We get asked a lot about Certified Pre-Owned (CPO) vehicles and many people think it means you don't have to inspect the car. This account, by a former car salesperson, will show you that you still need to have your critical faculties fully engaged and to not be blinded by the light of a CPO label.
If you've always wanted a Lexus but thought they were a little pricey, you might want to pick up a certified pre-owned (CPO) one. A lot of people are confused about certified used car programs, and there's a chat tonight that could answer all your questions on that subject. I've always thought that buying a CPO car was the easiest way to get a good, reliable used car.
The chat is with Marv Ingram, the National Certified Pre-Owned Fleet Manager for Lexus, the luxury division of Toyota Motors Sales USA...
Subscribe to the Edmunds Automotive Network Newsletter and enter the $500 Gas Card Sweepstakes. Sign up now and enter for your chance to win a $500 Gas Card!Official Rules
