Money-Saving Advice For Finding New Vehicles

Best Resale Value Vehicles

Money-Saving Advice For Finding New Vehicles With Minimal Depreciation Ahead

When searching for a new vehicle, car-shoppers often consider fuel-economy, exterior and interior features, and price. Shoppers should also consider something they won't find on any window sticker: resale value. Depreciation often is the greatest expense incurred by drivers during ownership, so knowing the vehicle brands and models with the best projected resale value can help new-car shoppers make a more informed purchase decision.
The leading provider of new- and used-vehicle information, Kelley Blue Book www.kbb.com, announced the all-new 2009 model-year vehicle winners of its annual Best Resale Value Awards, which recognize current and upcoming vehicles for their projected retained value five years from now (the average ownership period).

Vehicle shoppers should take several factors into consideration when buying a new car to ensure as much future value as possible. First, car-buyers should choose a popular exterior color such as silver or black. Then, car-buyers should choose optional equipment that is customary for the type of vehicle they are buying. Equipment and options that are popular with used-vehicle buyers include antilock brakes (ABS), alloy wheels, audio system with MP3/iPod compatibility, power-operated leather-covered seats, cruise control, remote locking and navigation system. Car-buyers should also recognize that the cost of some potentially expensive features like premium audio systems will be difficult to recover at trade-in or resale time.

"Especially in today's tough market and difficult economy, consumers really need to take a hard look at the projected resale value of a car when choosing their next new vehicle purchase," said Jack R. Nerad, executive editorial director and executive market analyst with Kelley Blue Book's kbb.com. "Choosing makes, models and options wisely now can help new-car shoppers keep additional money in their pocket down the road when they go to sell or trade in the vehicle used."

The 2009 Best Resale Value Awards list offers an array of vehicles to fit any lifestyle.

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Keeping Your Car Can Save You Money

The right answer to the question "Should you keep the car or trade it in for a brand-new vehicle?" could help put many motorists on the road to economy. So when you choose to keep your car rather than buy a new one, you'll end up saving money.

"People who keep their cars, treat them as valuable investments and commit to regular vehicle maintenance end up saving a lot of money," said Rich White, executive director, Car Care Council.
The most common maintenance procedures and repairs to keep your car operating safely and reliably while maintaining its long-term value involve checking the oil, filters and fluids, the belts and hoses, brakes, tires and air-conditioning. The council also recommends an annual tune-up and wheel alignment.

Over a four-year period, the difference in savings between keeping a car and buying a new one is $10,894, according to Runz-heimer International.

Cost Of Keeping The Old One

The cost comparison identified the expenses of keeping a 2003 six-cylinder, four-door sedan that gets 21 miles per gallon (mpg) and costs $19,727, versus buying a new six-cylinder, four-door sedan with 23.5 mpg that costs $23,451 and had a down payment of $10,158, the trade-in value of the older car.

At the end of four years, expenses on the used vehicle, including fuel, license, registration, taxes, insurance, maintenance and tires, were $16,548. A resale value of $3,759 puts the total four-year cost at $12,789.

New Car Costs

On the new car, expenses including the car payment, interest on the car loan, fuel, license, registration, taxes, insurance, maintenance and tires totaled $32,258. A resale value of $8,575 puts the total four-year expense of the new car at $23,683.

"We advise our clients that if they want to see an increase on their investments every year, they need to cut down on their expenses," said Terry Mulcahy, vice president of investments for R.W. Baird in Mequon, Wis. "A new automobile is for most people their second-biggest investment next to a home, so a great way to save money and increase financial assets is to hang on to their current vehicle rather than buy a new one every few years."

The Car Care Council is the source of information for the "Be Car Care Aware" consumer education campaign promoting the benefits of regular vehicle care, maintenance and repair to consumers. For a copy of the council's consumer-friendly "Car Care Guide" or for more information, visit www.carcare.org.

A cost comparison shows that hanging on to your old car can save you money.

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Rebuilt Wrecks Emerging Threat To Car Buyers

-Buying a rebuilt-but not properly repaired-wreck of a car could wreck your finances.

A new study by Carfax shows that millions of cars severely damaged in major accidents have been rebuilt and are up for sale. Over the last five years, the number of salvaged cars on the market has increased nationwide by more than 50 percent.

This problem is more widespread than previously thought. Forecasters predict that more than 40 million used cars will be purchased this year, making the used-car market a target-rich environment for scam artists.
Experts estimate that more than 5 million cars annually are deemed salvage after severe accidents. More than half of these cars are resold, many by sellers who intentionally hide their damaged past.


Some of the common problems associated with previously wrecked vehicles may include:

• Title washing.

Title documents may be altered to remove a salvage brand and obtain a clear title from another state.

• Air bag fraud.

Scam artists are known to replace deployed air bags with phony or nonworking air bags to cut costs.

• Structure/frame damage.

As little as 8mm can compromise a car’s structural integrity, which may also affect many of the car’s safety features.

• Odometer rollbacks.

The odometer may also be rolled back to further inflate the perceived value of the vehicle.

• Car clipping.

Some rebuilt wrecks are actually two different cars welded together.

Buying a salvaged car may not be a bad investment, but you must make sure you’re aware of any prior damage and, more important, see that the proper repairs were made. Many salvage vehicles are rebuilt properly and will run safely again.

However, con men can alter title documents and make cheap cosmetic repairs to others so they look as good as new on paper and in person.

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Car Financing Tips To Know When You're Buying A Car

Car financing is a complicated subject. It seems that everyone has a different opinion on the best methods or strategies for financing such a large purchase should be. It can be hard to know how big a monthly payment is too big, how much of a down payment is too small, and where in between the sweet spot lies for most car buyers.

A common mistake when financing a car is to look at the size of the monthly payment instead of the actual cost of the car itself. It can be tempting to go for a car that has more luxury features or a bigger engine simply because it is offered with a monthly price that you can afford. This kind of payment focus can lead you to overspend your budget by a huge amount – sometimes five to ten thousand dollars more than you initially intended to pay.

Dealers tend to encourage monthly-payment oriented thinking because from their perspective, the longer you are making payments on your car, the more money they can make from administrative fees and interest. Instead of taking 3 years to pay off your car, you might now be looking at 5 years and close to double the amount of interest paid.
It’s also important to take a close look at the details of any payment plan that is offered to you to make sure that the terms, interest rate and period are competitive with that which you could get from your bank. Sitting down with a calculator and determining the real cost components of any monthly payment plan you have been offered will give you the real picture of exactly where your money is going.

Down payments are another gray area. There are those who recommend making the largest down payment that you can afford on your vehicle – typically around 20 percent, although some say as much as half – in order to avoid the interest costs associated with financing. However, an equally vocal contingent will warn buyers against making any cash down payment at all before a deal is inked. In some cases, if dealers walk away from the bargaining table they can take your down payment with them if a contract hasn't been signed. If you must make a down payment or deposit on a car to get priority at a dealership, try doing it with a credit card so you can get your money back if things turn sour.

With all of these warnings, caveats and traps to look out for, it can sometimes make it seem like car financing is a complete nightmare. That doesn't have to be the case. As long as a buyer is completely informed about what is happening with regards to their financing, and as long as the negotiation process, fees and interest rates are completely transparent and spelled out on paper, then there is no reason to fear financing this major purchase. Financing can help you manage your cash flow and keep you from tying up all of your resources in a single asset – making sure you will be prepared to deal with any unexpected financial issues that life may throw at you. No one wants to have to sell their car due to hardship, and with the right financing, it doesn't have to happen.

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Money-Saving Advice For Finding New Vehicles

Best Resale Value Vehicles

Money-Saving Advice For Finding New Vehicles With Minimal Depreciation Ahead

When searching for a new vehicle, car-shoppers often consider fuel-economy, exterior and interior features, and price. Shoppers should also consider something they won't find on any window sticker: resale value. Depreciation often is the greatest expense incurred by drivers during ownership, so knowing the vehicle brands and models with the best projected resale value can help new-car shoppers make a more informed purchase decision.
The leading provider of new- and used-vehicle information, Kelley Blue Book www.kbb.com, announced the all-new 2009 model-year vehicle winners of its annual Best Resale Value Awards, which recognize current and upcoming vehicles for their projected retained value five years from now (the average ownership period).

Vehicle shoppers should take several factors into consideration when buying a new car to ensure as much future value as possible. First, car-buyers should choose a popular exterior color such as silver or black. Then, car-buyers should choose optional equipment that is customary for the type of vehicle they are buying. Equipment and options that are popular with used-vehicle buyers include antilock brakes (ABS), alloy wheels, audio system with MP3/iPod compatibility, power-operated leather-covered seats, cruise control, remote locking and navigation system. Car-buyers should also recognize that the cost of some potentially expensive features like premium audio systems will be difficult to recover at trade-in or resale time.

"Especially in today's tough market and difficult economy, consumers really need to take a hard look at the projected resale value of a car when choosing their next new vehicle purchase," said Jack R. Nerad, executive editorial director and executive market analyst with Kelley Blue Book's kbb.com. "Choosing makes, models and options wisely now can help new-car shoppers keep additional money in their pocket down the road when they go to sell or trade in the vehicle used."

The 2009 Best Resale Value Awards list offers an array of vehicles to fit any lifestyle.

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Buying A Used Car Instead Of A New One?

Progressive Insurance tips when you are buying a used car instead of a new one.

In today's unstable economy, you might be in the market for a used car instead of a new one.

But used car shopping isn't easy-it requires a keen eye and an inquisitive nature. Before you buy a used vehicle, here are a few tips from leading car insurer Progressive to make sure you're getting your money's worth:
Ask about previous damage. Has the vehicle ever been in an accident or a flood? Get details on the extent of damage if it has. And inspect the vehicle closely, looking for these "red flags":


• Mismatched vehicle identification numbers (VINs) on the vehicle title, dashboard, driver door panel, hood or trunk;

• Mismatched paint on exterior body parts, or paint-over spray on interior parts such as door edges and the engine compartment;

• Missing bolts or uneven welding in major areas, such as the front-end core support or the trunk.

Ask for routine maintenance records. The owner should be able to provide information about what service work has been done.

Buy a vehicle history report. Get the vehicle's VIN, then go to www.carfax.com or www.autocheck.com and purchase a vehicle history report. The history will show past owners of and damage to the car, as well as mileage and title history. Some state motor vehicle departments may also provide some of this information.

Check out the seller. Some unscrupulous sellers may try to sell a poorly repaired salvage vehicle, which means it's been totaled before and they've rebuilt it. If you're buying from a car dealer, check with the Better Business Bureau. If the seller is an individual, look through the classifieds for other vehicle ads with the same phone number-this is a sign of an unlicensed broker who sells used vehicles by posing as the owner.

Ask a professional to inspect the vehicle. Take the vehicle to a mechanic or body shop you trust. Have them inspect the vehicle inside and out for previous repairs and the quality of any repair work they discover.

Research insurance costs. Before you buy, ask your local independent agent or broker how much your car will cost to insure. And while you're there, make sure you have the right coverages for your vehicle. For example, if you're buying an older or more inexpensive car, you might want to consider dropping Comprehensive and Collision coverages.

Following these tips can help you avoid any unwelcome surprises from your new (used) car.

For more information or to find an agent nearby, visit www.progressiveagent.com.

Used car shopping requires a keen eye and an inquisitive nature.

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How To Shop For Cheap Car Insurance Rates

Car insurance is one of those purchases whose price can vary radically depending on which company you contact. Because of the wide disparity in rates when you make an auto insurance comparison, you need to know how to get the cheapest car insurance rates that you can. After all, if all other considerations are equal, the auto insurer with the best car insurance quote is often your best bet.

The first thing to do is make sure that you shop around thoroughly to get enough rate quotes that you can make a good educated decision. Just don't get a car insurance quote and buy the policy right there. As with so many other consumer decisions, car insurance is something that must be shopped and compared to get the best deal.


It's often suggested to get at least three car insurance quotes before making a decision, but that is more like the minimum actually. You can get insurance quotes both online and offline as car insurance companies vary as to how they sell insurance. There are still many who sell through a network of their own agents exclusively. Other insurance companies will also sell through independent agents who may represent several companies at a time and can offer to make an auto insurance comparison among all the companies that they represent to give you the best deal.

But one of the fastest growing trends in selling car insurance is the online, direct to consumer companies. The internet has changed the face of many industries and auto insurance is certainly one of those that have been permanently altered. Today, you can simply find one of the major insurance quote providers on the web, enter your information and get a quote from several sources in very little time at all. And because many of these companies have much less overhead than other more traditional insurers, they are able to sell direct to the consumer and save them money as they do.

However, there are some things that you should consider before making any car insurance purchase. Be sure that the company you buy from is financially stable. As more and more newer companies get into the car insurance field, this becomes critical, so check their financial stability on sites such as ambest.com and standardandpoors.com before you buy, and see how the company is rated. It's also a good idea to call your state insurance commissioner's office and see how many customer complaints have been received by a particular company that you are considering too. This can help you find out if they not only sell insurance, but also provide good customer service after the sale.

Finally, ask around among your family and friends about their experiences with car insurance companies and see what information you can get. This is often one of the best, most unbiased ways of learning about almost any kind of product that you want to buy, so factor what they have to say in making your final decision as well.

If you take the steps mentioned above as you make an auto insurance comparison, you should be able to get a good picture of what will be the best choice for you and how you can get cheap car insurance rates too.

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