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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High Gas Prices Put Car Shoppers In The Driver's Seat

There is some good news about high gas prices and a slow economy: They are putting the brakes on vehicle sales, which makes it a good time for shoppers to find great deals on cars.

Among car shoppers, hybrids and subcompacts remain popular because of great gas mileage, but there are many factors beyond fuel efficiency that affect the cost of driving. RoadandTravel.com and State Farm Insurance® suggest three simple tips for those shopping for vehicles:

Homework is key
Because sales have been so slow, dealers are competing aggressively for shoppers' business, making it easier to bargain. The Internet providesnumerous Web sites to compare makes, models and pricing, including Edmunds.com, MSN Autos and RoadandTravel.com. Coming to dealerships with the most current information puts the shopper, not the dealer, in the driver's seat.

Budget blind spots

Car buyers often don't research expenses that can impact the cost of car ownership, including maintenance, financing and insurance. For instance, they may assume they have no choice other than to finance their cars through the dealerships. Often, the bank down the street or an insurance provider offers better deals on financing a car. Additionally, interest rates can be based on credit history, so shoppers who know their situations can more easily recognize a reasonable deal.

Finally, it's important not to get caught up in the emotions of buying a car. Being practical and planning to spend at least a few days shopping helps people avoid making rash decisions.

Insurance options

There are a number of factors that influence insurance rates, beyond car models. Car buyers should ask about discounts for good driving records and good grades for teen drivers. For instance, State Farm has a Good Driver Discount®. Also, some companies offer discounts on premiums to customers who purchase other policies, such as life or homeowners insurance. When deciding on the right insurance provider, car buyers should keep in mind that, in addition to cost, it's important to find a company that will offer the right level of personal service

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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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High Gas Prices Put Car Shoppers In The Driver's Seat

There is some good news about high gas prices and a slow economy: They are putting the brakes on vehicle sales, which makes it a good time for shoppers to find great deals on cars.

Among car shoppers, hybrids and subcompacts remain popular because of great gas mileage, but there are many factors beyond fuel efficiency that affect the cost of driving. RoadandTravel.com and State Farm Insurance® suggest three simple tips for those shopping for vehicles:

Homework is key
Because sales have been so slow, dealers are competing aggressively for shoppers' business, making it easier to bargain. The Internet provides numerous Web sites to compare makes, models and pricing, including Edmunds.com, MSN Autos and RoadandTravel.com. Coming to dealerships with the most current information puts the shopper, not the dealer, in the driver's seat.


Budget blind spots

Car buyers often don't research expenses that can impact the cost of car ownership, including maintenance, financing and insurance. For instance, they may assume they have no choice other than to finance their cars through the dealerships. Often, the bank down the street or an insurance provider offers better deals on financing a car. Additionally, interest rates can be based on credit history, so shoppers who know their situations can more easily recognize a reasonable deal.

Finally, it's important not to get caught up in the emotions of buying a car. Being practical and planning to spend at least a few days shopping helps people avoid making rash decisions.

Insurance options

There are a number of factors that influence insurance rates, beyond car models. Car buyers should ask about discounts for good driving records and good grades for teen drivers. For instance, State Farm has a Good Driver Discount®. Also, some companies offer discounts on premiums to customers who purchase other policies, such as life or homeowners insurance. When deciding on the right insurance provider, car buyers should keep in mind that, in addition to cost, it's important to find a company that will offer the right level of personal service.

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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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New Car Prices, Then And Now

New car prices have certainly changed a lot over the years. While obviously inflation, the cost of energy and a number of other causes have caused automobile prices to skyrocket when compared to the 1970’s, there are also some changes in attitude from automakers which are reflected in modern pricing schemes.

Imagine the year is 1971. Walking into the new Dodge dealership, you see a brand new Charger R/T coupe, which was one of the definitive muscle cars of the era. The price? $4700. A similarly configured Charger, brand new from Dodge today in 2008 will cost in the neighborhood of $30,000. This represents a fairly significant increase. What are some of the factors that caused new car pricing to multiply six-fold?

Inflation only tells half the story. Adjusting that $4700 from 1970 into today’s dollars gives us a price of roughly $21,000. That still leaves us around $9000 short of the current market price for a similar car.
The difference becomes even more pronounced when examining median household income in the United States. In 1970, it was around $35,000 (in today’s dollars), but for the last few years it has stabilized around $42,000 – not a huge increase, and certainly not large enough to explain the discrepancy in pricing. It’s not as simple as saying that car companies now charge more for their vehicles because the market can bear higher prices.

One of the most telling components of new car prices are the increased cost of labor. In the 1980’s and 1990’s, American automakers fought a losing battle against trade unions representing the workers in their plants. The result of these confrontations were increased costs not only in the salaries paid to workers, but also in the benefits that workers were entitled to. In some cases, these benefits are paid out long after the employee has left the assembly line and is no longer economically contributing to the company. General Motors actually loses money on many of the cars they sell, and for a long time only generated profits based on their automobile financing company.

Japanese car companies don’t have these same labor issues, yet their pricing remains competitive with domestic car companies. This indicates that employee costs are not the only driving factor when it comes to car price increases. The implementation of technology is another part of the pricing puzzle.

Cars of today are technologically advanced over those of three decades ago to an almost extreme degree. Anti-lock brakes, airbags, stability control systems, drive-by-wire – all of these features were expensive to develop in terms of research and testing, and they also contribute to increased manufacturing costs, due to the more delicate techniques and expensive materials required to implement them in modern vehicles. The increased demand for fuel efficient engines which produce minimal emissions has also forced automakers to invest in their engine programs to a much larger degree than they have in the past.

It seems that peeling back the surface of today’s automobile pricing reveals an intricate web of dependent financial concerns that together make up the cost of driving a brand new car in the United States.

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Stretching Your Money: Tips On Buying Certified Cars

If you are thinking of buying a certified used car, here are some facts you should know
If you're thinking of purchasing a used car, there's good news. Used cars don't have to be as risky a purchase as they used to be. Thanks to certification programs, it's harder to distinguish new from used and more Americans are turning to certified cars for better value.

Certification offers a way to weed out unscrupulous used-car dealers who might sell damaged cars. Vehicles damaged by floodwaters or involved in major accidents are prime candidates to end up as part of such scams.

The number of certified pre-owned (CPO) vehicles sold this year is expected to increase significantly from 1.7 million purchased in 2008. Besides costing less than new-car counterparts, certified vehicles also come with many of the same benefits, eliminating much of the guesswork associated with buying used.

Some say it is one of the few segments of the auto market where both sales and value to the buyer have increased. Be wary, however, because not all certification programs are created equal. To help sort out the best from the worthless, used-car experts offer the following tips:

Certified By Whom?

Make sure you know who sets the standards for the certification program and who makes certain they're being enforced. Look for a manufacturer-backed program--the best people to certify a car are the ones who built it and specialize in that make. Most manufacturers will offer a limited warranty in addition to honoring the car's original warranty.

Do Your Homework.

Research the models that make sense for your driving needs. Check safety and reliability reports published online and prices from your whole area.

How Was The Car Certified?

At a minimum, a car should have a detailed mechanical inspection and vehicle history reports. Carfax Vehicle History Reports are a mandatory part of the certification process for more than 80 percent of today's manufacturer-certified programs.

What Does It Get You?

The certified used car you're buying probably comes with an extended warranty. Make sure you know exactly what this covers and for how long. You can always add additional coverage.

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Cutting The Cost Of Buying A Car

Car buyers are cutting the cost of buying a car by looking at CPO's or Certified Preowned Vehicles. In this economy everyone wants to save money and a car purchase is an expensive, but necessary, purchase. Read on and find out how AutoTrader suggests we can save money on buying a car.

(NAPSI)-Experts say the best way to drive down the cost of the next vehicle you purchase may be to look for a CPO-or "certified preowned"-car, truck or SUV.

CPOs, which are becoming increasingly popular with consumers, allow people to benefit from the typical affordability of a used car and the security that comes with a factory-backed warranty. Indeed, certified sales have become a bright spot for the automotive industry, with sales for 2009 showing double-digit growth against the year before.

CPO vehicles are generally several-year-old cars, trucks or SUVs that have been returned to the dealer after being leased. Most CPO vehicles on lots currently range from 2005 to 2007 model years, though it is possible to find 2008 and even the occasional 2009 model year vehicles for sale as well.

Details of manufacturers' CPO programs vary but typically involve an extended warranty and assurances that the car has been carefully scrutinized during a comprehensive, multipoint inspection. Automotive Web sites such as AutoTrader.com can be useful resources for learning about and comparing CPO programs.

CPO Benefits

Experts say that buying what is essentially a factory-backed used vehicle can save consumers money. While a CPO car will generally cost between $500 to $1,000 more than a used car lacking the inspection guarantee, it also will likely cost thousands less than a nearly identical brand-new model. For consumers, this can translate into car payments that will often match the lease payments on a new car, truck or SUV.

Growing Trends

Another factor driving consumers to CPOs is that many are finding it more socially acceptable to buy used. Car buyers, especially those in the luxury sector, find that buying certified gives them many of the perks of buying new, such as access to factory-sponsored maintenance programs, without the worries of appearing fiscally irresponsible in a down economy.

"For a consumer wanting the prestige and customer service that comes with owning a luxury car, balanced with the sensibility of purchasing used, buying CPO is hard to beat,"

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Buying A Used Car Instead Of A New One Buying Used? How to Avoid Getting Bitten by Repair Costs

If your old clunker is gasping its last, you might think (like millions of other Americans these days) you can save yourself some money by buying a used car instead of a new one. You can -- if you make smart buying decisions. Hasty or unwise used-car buying can end up costing you much more in the long run.
As new car sales have crashed, purchases of used cars continue to rise, according to many news reports. In March, PBS reported that dealerships sold more than 2 million used cars in recent months, about 25 percent higher volume than you would expect in a healthy economy. The math behind the trend is simple: new cars cost more than used, depreciate faster and are generally costlier to insure, so more Americans are buying used to save money.

But what about repair expenses? If you buy a used car for $15,000 and it costs you $5,000 in repairs in the first year, have you really saved? To ensure you’re buying a used vehicle that won’t turn into a money pit, follow a few simple steps:

Early in the Process:

Repairs are a reality of used car buying. As vehicles get older, they begin to need more maintenance and repairs. Some newer model used vehicles may still have some factory warranty left, but older models usually do not. An impending need for repairs, however, may not necessarily be a deal-breaker if you find out ahead of time how much those repairs might cost and budget appropriately.

You probably already have a few makes and models in mind. Before you settle on one, compare the cost of the parts needed for the most common repairs and maintenance. One model may have a sales price that’s $5,000 less than another you’re considering, but if the cost of parts is 20 or 30 percent higher than parts for another vehicle, the higher priced model might actually be a better deal.

Turn to resources like RockAuto.com to compare parts prices. The site’s Repair Index automatically pulls prices from the company’s vast auto parts catalog based on year, make, model and type of part. It’s a quick, easy way to compare parts costs for different models and the results can be surprising.

For example, you might think a Chevy Metro is an economical car, but parts for one can be expensive, according to RockAuto, which sells parts for an average 20 to 60 percent less than other parts dealers. The bulk of the company’s business is selling parts direct to consumers, so it’s possible to save even more money by buying parts directly and doing repairs yourself. Visit www.RockAuto.com to learn more.

Next, check the repair history for a particular make and model from a credible source like Consumer Reports. The independent ratings organization maintains a huge database of information on virtually every make and model vehicle available in America. Actual owners and drivers contribute the information based on their experiences with a particular vehicle.

Once You’ve Narrowed it Down

When you find a vehicle you’re interested in, check the repair history and maintenance for that specific car. Pull a vehicle history report from a third-party source like CarFax, which will generally list major (reported) maintenance and accidents. The report can also help you spot discrepancies in odometer readings, if the vehicle has been used in an area prone to flooding, or if it’s been rebuilt after being in an accident so severe it was declared a total loss.

Never buy a used car until you’ve had it checked by your own mechanic – not even from a dealership that offers “certification” on its used vehicles. If a seller isn’t willing to let you take the vehicle to your mechanic, walk away.

Finally, consult your insurance agent to see how much it will cost to insure the vehicle. A used car that actually increases your annual premium may not be the great deal you thought it was

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Benefits Of Zero Down Payment Car Finance

Zero down car loans have enabled borrowers to buy and own their own cars, despite bad credit. Many lenders extend the service to new and old or used cars and are accessible online and offline. The lenders study credit history provided by the credit bureaus to get the real picture. They offer free online calculators to help you do your own calculations and even give you the leverage to have a say in the rate of interest and tenure of the loan. Their procedures are no different from the other regular car loan providers, except that they lay more emphasis on customer profile rather than on the credit rating.
The loans are designed within secured and unsecured loan options for people with bad or poor credit rating. The professionals cater to the auto loan
needs by different social strata and despite bad credit conditions or credit scores. The loans come within a package that is like a hassle-free advice and suggestions for bad credit car loans and credit repair options. The rates of interest are calculated only after assessing and analyzing individual cases separately.

Its a good idea for you to do your homework before you get a car loan. If you know about the make and model of the new or used car that you want to purchase, as well as the type of interest rates you can expect to pay on a car loan, are better able to understand and anticipate what to expect when you go after your first online car loan.

If you have a trade-in or an exchange car that is in relatively good shape, your chances of getting a zero down car loan increases considerably. This is because in reality, the trade-in value of your old car is a down payment so youre really not driving away with a no-money down loan.

The lenders providers lay a lot of emphasis on individual profiles since the credit is probably bad. They enable the purchase of automobiles irrespective of what the credit reports indicate. They even help the borrower to assess his/her finances and make the necessary shift. They help you analyze the fiscal situation on the credit reports provided by the credit bureaus.

Your monthly car loan payments are based on your zero down payments, the interest rate, and the number of months in the repayment contract. New cars will generally qualify for lower interest rates and longer repayment schedules, with used cars being the opposite. If youve had a bankruptcy in the past dont despair as you still may be able to get financing for a car but it might take you a little longer, and it may not be a zero down loan. If you have little or no credit history, a cosigner will help your chances of getting a loan as long as their credit score is good, and their debt to income ratio is also good.

You can also apply online for a suitable loan. With an online car loan, most lenders take care of your privacy. The Majority of online loan companies collect just the essential information needed to be able to submit your loan application to the lenders that they use. However, be careful to check their reputation and history before agreeing to become their customer.

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