The Return Of The SUV

The slow decline in gas prices over the past few months has many used-car buyers bypassing expensive hybrids in favor of what you might feel is a surprising choice: SUVs.

According to a new study, consumer interest in SUVs remains strong despite the seeming popularity of high-fuel-efficiency cars.

Evidence shows that shoppers are more interested in these cars if there is a clear vehicle history and the vehicle is priced right-which, according to experts, they increasingly are.
"Many used SUVs, even those with greater fuel efficiency, are selling below market value because of the growing supply on dealers' lots, so buyers can be choosy about the next vehicle they purchase," said Larry Gamache, communications director at Carfax, the organization that ran the study.

Gamache says there's been a dramatic increase in consumer activity at carfax.com over the past year for SUVs and crossover vehicles, some by as much as 3,000 percent. The Web site allows shoppers to run a vehicle history report, checking for past accidents and major damage on the vehicle they are considering. Additionally, the report highlights attributes such as low mileage and regular maintenance to help people find the best-value SUV.

So which SUVs are people researching on the site?

• Searches on the Kia Rondo were up 3,600 percent from a year ago, while searches for Jeep Patriots and Buick Enclaves were up well over 2,000 percent.

• Searches for the Mazda CX-9, Land Rover LR2, Saturn Outlook, Lincoln MKX and Suzuki SX4 were up more than 1,000 percent.

• Hyundai Tucson and GMC Acadia searches were up over 900 percent.

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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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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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Chrysler Celebrates 25 Years Of Minivan Leadership

Chrysler celebrates 25 years Of minivan leadership and continues its long time tradition with the 2009 Town & Country minivan model.

After introducing the minivan 25 years ago, manufacturers are responding to the milestone with greatly improved models that feature enhanced seating and storage systems, transmissions designed to offer smoother shifting and better fuel economy.

That can be good news for those who want a minivan that can offer the latest in convenience, fuel savings and style.
The originator--Chrysler LLC--continues to perfect its family hauler, now in its fifth generation. With more than a quarter-century of engineering and technology, Chrysler has created more than 65 minivan-first features over the last 25 years, while continuing to introduce minivans year after year that deliver the features, unmatched versatility and fuel efficiency families shopping for a minivan are looking for.

The new 2009 Chrysler Town & Country, for one, presents a contemporary appearance, three different models, two distinct seating and storage systems, state-of-the-art entertainment systems and safety features.

The vehicle has 40 new and improved features over the previous generation, including a 4.0-liter V-6 engine mated to a minivan-first six-speed transmission and more standard equipment such as an Electronic Stability Program (ESP).

A retuned six-speed transmission and higher numerical first gear means the engine speed changes less with each shift, creating a smooth driving dynamic, with improved fuel economy. The end result is an EPA fuel economy label of 17 mpg city and 25 mpg highway that is unbeaten in the minivan segment--quite impressive considering the vehicle's seven-passenger accommodations and cargo space.

Safety has also been addressed in the new design, resulting in the vehicle receiving the U.S. government's Five Star Crash Test rating in both front and side impacts.

For added convenience, the Swivel 'n Go seating system offers second-row seats that swivel 180 degrees to face the third row with a removable table that installs between the two rows, covered storage bins in the floor and the second row, third-row uncovered storage, and fold-in-the-floor third row.

Said Larry Lyons, vice president--Car and Minivan Product Team, Chrysler LLC, "With an improved 4.0-liter six-cylinder engine and a minivan-first six-speed transmission, no other minivan has better fuel economy. We optimized both the engine and the transmission to give our customers the fuel economy they want and the power and responsiveness they expect."

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Drivers Use Financing To Their Advantage

Understanding your financing options could put you in the driver's seat when it comes to buying a new vehicle-or affording the one you already have.

Still, a recent survey found that many borrowers facing difficult financial circumstances are not aware of the ways that their creditor can help get them back on track. Indeed, only 47 percent of consumers believe that finance companies often work to help customers who are having trouble making payments.

"Consumers have many options available to them when it comes to auto financing. Similarly, if consumers are facing a tough time financially, we encourage them to work with their creditor," said Eric Hoffman, a spokesperson for AWARE (Americans Well-informed on Automobile Retailing Economics), a nonprofit auto financing education group. "Being an educated consumer not only helps when it comes to financing a vehicle, but also when times are tight."

AWARE sponsored the survey, which measured consumers' auto financing knowledge and experience. Additional findings include:

• Consumer satisfaction with auto financing remains high while interest and desire to learn more about the financing process has held steady-despite the sluggish economy.

• Even with a slowdown in auto purchases, consumers-especially those who report to be educated about auto financing-say they are satisfied with their financing decisions and the outcome of the process.

But Hoffman said more work clearly needs to be done. "Despite auto financing education efforts through AWARE, as well as individual company programs, the survey demonstrates more robust education efforts need to be put forth for consumers facing economic hardship," he explained.

To that end, the group was formed to build a greater understanding among consumers about how auto financing works. To learn more, visit www.AutoFinancing101.org. The site was created to ensure that potential buyers of new and used autos have the tools and resources they need to successfully navigate the auto financing process.

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What You Need to Know Before Buying a Car

Incentive packages make buying a new car almost irresistable to but there are some very important credit report and financial questions you should consider before you visit that car dealer.

Auto sales plunged to a 26-year low at the beginning of the year, which is why many car makers are offering incentives to entice consumers back to the auto market.

But before jumping into the market, you should gain a clear understanding of your credit and financial profile to know what you qualify for and if it’s the right time for you to buy a car.
“Through a simple check of their credit reports and scores, many consumers are likely to find that they’re in a solid position when it comes to cashing in on these troubled-economy car deals,” says Lucy Duni, vice president of consumer education at TrueCredit.com by TransUnion. “At the same time, it’s important for consumers to set their limits based on their credit position and their overall finances, because there are many costs associated with making a car purchase, including regular maintenance fees and insurance.”

TrueCredit.com is offering simple tips to guide consumers on the road to making a smart car purchase:

Tip 1: Rev-up your report knowledge.

Review your credit report on an ongoing basis to ensure it accurately reflects your credit history. Your history will dictate your credit score and your score affects your loan rates. Always know where you stand by signing up for TrueCredit Messenger, a free application that is downloaded to your desktop and lets you know when there’s been a critical change to your report.

Tip 2: Make necessary tune-ups.

Whether or not you’re in the market for a new car now, keep a close eye on your credit report. If you spot something that doesn’t look right, you should first contact the creditor involved. If that doesn’t solve the problem or if the issue doesn’t involve a specific credit or loan account, contact the appropriate credit-reporting company directly. If you have significant issues with your reports, consider delaying your purchase until those issues are resolved to help you get the best rate available.

Tip 3: Protect Yourself.

Your credit behavior influences more than just your loan rate. It often plays a role in determining the monthly insurance premiums for your home and car. If you’re getting ready to shop for insurance, TrueCredit.com Insurance Scores let you see ahead of time how you’ll likely be viewed, allowing you to take proactive steps to improve your own credit health that could result in lower premiums.

Tip 4: Make an age-defying purchase.

Decide if you want to buy a new or used car. Buying a used car can save you a heap of money if you do your research. Since new cars generally depreciate 10 to 35 percent during the first two years, it's a good idea to check the depreciation rate on the car you're interested in by looking up the current price and the price for the same car made two years earlier. On the other hand, many of the factory incentives are on new models, so you may get a better deal with a new car right now. It’s important to shop around to find the best deal for you.

Tip 5: Luxury vs. economy -- calculate how much you can afford.

Before you decide that a car is right for you, it's a good idea to evaluate your balance of debts and assets to see how much you can really afford. Also determine if you have a trade-in or down payment to help you pay for the car. These assets can help you negotiate a better rate with lenders and can be especially important if you have problem credit.

Tip 6: Navigate your options.

When you're ready to talk to lenders it's a good idea to shop around for the best available interest rate. Visit your local bank or credit union to discuss applying for an auto loan. Financing with the car dealer can sometimes be more expensive, so pricing out your options is a good idea. And don’t worry. Shopping your loan with multiple lenders over a several weeks will generally have the same net effect on your credit reports as checking only with one lender.

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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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Cash For Clunkers Not?

Cash for Clunkers...Not? With over 22,782 vehicles already purchased via the CARS program by Wenesday and a total of $96 million had been spent already, there is cause for worry. The new program, it was hoped, would get some older and less efficient cars and trucks off the road and at the same time boost auto sales. With sales down 35%, the auto makers needed something to stimulate sales, but I guess $1 billion dollars just wasn't enough.



With the “Cash For Clunkers” or Car Allowance Rebate System (CARS) already making an impact on new automobile sales – Hyundai, who jumped the gun and began offering the program early reported close to a 10% increase in vehicles sold as a result – it is no surprise that many critics are latching on to the more controversial aspects of the program.

Signed into law by the Obama administration in a purported effort to convince Americans to switch to more fuel efficient cars and reduce the impact of driving on the environment, upon closer examination it appears as though the green aspects of the program are fairly weak. For example, participants are only required to demonstrate a 4 mile per gallon fuel economy increase over their old vehicle, as long as the new automobile gets at least 22 miles per gallon combined, in order to qualify for the minimum rebate. This is seen by both environmentalists and industry watchers as a largely insignificant increase in fuel mileage, certainly not capable of producing any dramatic results in terms of reducing America’s dependence upon fossil fuels. The rules for trucks are even more lax, with a minimum of a 1 mile per gallon increase qualifying for the first tier of CARS rebates.

There is also the dubious green practice of encouraging consumption. The reality is that it takes a significant amount of energy to build a new car, a process which generates large amounts of the greenhouse gases and other pollutants that the CARS program is ostensibly attempting to reduce. By encouraging drivers to trade in their older cars which have long ago paid back their carbon debt through years of usage on newly minted machines that have tens of thousands of miles to go before they can boast the same, the incentives aren't exactly embracing the fundamental message of the environmental movement. Reduce, reuse and recycle would appear to be forgotten, although the final two “R's" in the time honored slogan will at least be honored when the vehicles taken in under the program are sold for scrap metal that is then used to build new vehicles and other items.

If the Cash For Clunkers program will have any truly lasting impact on the American auto industry it will be to shake car and truck sales out of the cardiac arrest that it has found itself in for the past year. While this economic stimulus is indeed admirable, couching it in the language of environmental politics is certain to leave a bad taste in the mouths of many.

This article was trying to explain what the Cash for Clunkers program was trying to accomplish. Of course, amid rumors of the program's suspension, Congress will have to review the results of this short lived attempt to boost auto sales. GM and some members of Congress would like to see the government come up with more money to keep the program going.

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Car Insurance Shopping And How To Save Money On Gas

With the price of gas at an all time high, and no relief in site, consumers are looking for more ways to save money on gas. Consider saving money on your car insurance to offset the high cost of gas.

Today, millions of car insurance consumers are buying their car insurance policies on the telephone and the Internet. Insurance companies are spending more money than ever on advertising. Rate quotes and policies are available through a multitude of web sites, from insurance companies direct, to web sites that offer multiple quotes from a single application.

With this increasing demand for car insurance rate quotes via telephone and the Internet, decisions about cost and coverages are being made faster than ever. Is the average car insurance consumer getting the correct policy at the best possible price? Can the consumer lower their cost of transportation by saving money on their car insurance?

Many car insurance consumers are not aware of the numerous discounts available on car insurance policies today. Check out the following list of some of these discounts and see if any of them apply to you.

A multi-car discount will lower the premium on each vehicle on the same policy. Some companies will sell you a separate policy for each vehicle and still give you the multi-car discount. Keep in mind there can be overhead or additional cost for each policy, so having all of your vehicles on the same policy could save you money.

Most insurance companies will give full time high school or college students with a 3.0 or higher grade point average a discount. This discount could be as high as fifteen percent on the primary vehicle that the student drives. If the premium for the student driver is one to two thousand dollars per year, a good student discount could be a savings of one hundred fifty to three hundred dollars per year. Multiply that by the number of years in school, and that will add up to a huge savings.

Some insurance companies will give you an occupational discount depending on your educational background and job title. Teachers, Medical Professionals, Scientists, Engineers, Computer Professionals, and other jobs that require a college degree, license, or certification.

An anti-theft discount can lower the comprehensive (theft & vandalism) portion of the policy premium. This is generally considered to be a Global Positioning Satellite (GPS) based system where your car can be located via a satellite if it is stolen.

Some companies offer a 2% to 15% discount to active and retired members of the military.

Department of Motor Vehicle certified mature driving courses are available for senior citizens and can lower your premium as much as ten percent.

And of course, maintaining a good driving record will allow your insurance carrier to give you a good driver discount and keep your rates down.

"Who is happy with the price of gas today? Consumer advocate studies show that the first and foremost reason people are over paying premium-wise for auto insurance is that they don't take the time and effort to shop around and compare prices. Cost savings on a policy can add up to hundreds of dollars per year, if you know what to look for and ask. And, shopping for car insurance has never been easier."

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