Archive for May, 2011

31
May
11

Gas saving tips!

No matter where you live, you can see the increase in gas prices. This cost of gas definitely has most altering driving or travel plans and trying to figure out ways to save. AAA found that 4 in 10 drivers alter their plans in some way because of high gas prices. Here are a few tips that may help you save a few dollars on gas and hopefully give you piece of mind that you can keep your gas cost under control.

  • Make sure to keep your trunk light. According to the U.S. Department of Energy an extra 100 pounds can reduce your miles per gallon by up to 2%.
  • Park instead of drive-through. Experts recommend that you park your car instead of waiting in the drive-through line. Chevy found that waiting in drive-through for 15 minutes can use an extra quarter gallon of gas when they tested this using the Chevy Cruze.
  • Driving aggressively will cost you. The Department of Energy says driving sensibly can reduce gas bill by 5% in the city and 33% highway.
  • Use cruise control. For maximum efficiency maintain the same speed.
  • Keep it under 60 miles per hour. The Department of Energy estimates that for every 5 mph that you go over 60 mph will cost you 24 cents per gallon in gas.
  • Plan ahead. Fewer trips and driving less when your engine is cold makes it so your car is operating more efficiently.
  • Shop around. Make sure you know where the best gas prices are. With so many online resources you can shop around before you drive around.
  • Check your tires. According to the Department of Energy, proper tire inflation can improve fuel efficiency by as much as 3%.
  • Try and drive less. Walk/bike when you can. Take advantage of public transportation when possible and when you do have to drive, try to carpool.

To read full article in Autos on MSNBC.com, please click here.

26
May
11

BHPH customer vs. Traditional buyer characteristics

As we would probably guess, there are a few differences between a traditional buyer and a Buy Here Pay Here customer. At the recent NABD conference AutoTrader.com shared the results of a special BHPH study. One of the things they discovered is that 81% of BHPH customers do “some” to a “great deal” of research before buying a vehicle and although they use the internet just as much as traditional buyers, their car research is not done online. This makes for a pretty big opportunity to target BHPH customers with the right message said, Howard Polirer of AutoTrader.com. Since the BHPH customer is most concerned with finding financing first, that should be the focus of advertising if you want to target BHPH customers. The following are some of the characteristics of the average BHPH customer compared to your average traditional buyer:

  • Higher percentage are female
  • Average age is younger
  • Annual income is less
  • Lower percentage are married
  • Lower credit rating (poor credit rating)

To read the full article in SubPrime Auto Finance News, please click here.

25
May
11

what type of advertising most influences car shoppers?

When it comes to finding out what exactly influences customers on what car they will buy or really just what car they should look into and find out more about, television advertising has the biggest influence according to TVB and Futures Company. TVB recently surveyed the impact of different forms of advertising and media and how they influence a customers purchasing decision in various product and service categories. In the automotive category, television advertising had the highest influence. This influence however doesn’t mean you’ll automatically close a deal because of a TV ad but what it does do is move the customer into the “Consideration” phase, as TVB and Futures Company puts it. The “Consideration” phase prompts them to do more research, particularly research online.

According to TVB, “Television is more important as a consumer influencer in the automotive category than the average of all 11 categories combined”. Overall since buying a vehicle is rarely an impulsive decision the number of times that a consumer sees an ad is of key importance as well.

To read the full article on NADAFrontPage.com, please click here. To find out more about TVB, please click here.

24
May
11

Trade-in Values for Used Cars Rising

More good news for those looking to trade-in their used vehicle; trade-in values are on the rise. According to NADA Used Car Guide they anticipate trade-in values from May to June 2011 on many small popular cars to increase in trade-in value by over 10% and some even as high as 17%. This increase is expected because of the combination of: shortage of used cars in the market as a result of the devastation in Japan and the increased consumer demand for small cars. This increase isn’t just expected from May to June but has been seen in this first half of 2011.

To read the full article in F&I Magazine, please click here.

17
May
11

Auction prices up but retail demand not there yet

As more time passes we see more and more of the effects of the expected decline in new car inventories. At auctions, prices for used vehicles rise as more dealers attempt to prepare for a shortage of new vehicles in the market. The anticipated shortage is of course a result of the devastating earthquake and tsunami that hit Japan in March, that has had a major effect on vehicle production. So far, retail demand for all the used vehicles that have been purchased at the auctions, hasn’t caught up. The dealerships anticipate demand months out while consumers won’t see this as an issue for a few months to come. This combo may have used vehicle auction prices dropping and causing a used car bubble. Although there is fear and anticipation of a used-car bubble, wholesale used vehicle price continues to rise. For the month of June, NADA Used Car Guide raised its suggested price of small vehicles by about 10% from May prices.

To read full article on Automotive News, please click here.

12
May
11

Getting a Good Deal on a Used Car

Many consumers that are in the market for a used car will find that they really are going to have to shop smarter and do even more homework before buying. With factors such as the recession and parts shortages caused by earthquake and tsunami in Japan the used car market is getting squeezed and supplies are, and will continue to be affected. In the past 6 years this is the highest that used car prices have been and it looks like supplies will continue to be limited for another two years.

Kiplinger offers advice on how to get the best deal on a used car. They recommend the following strategies to find the values and negotiate a good deal. First, you must know what is important to you: is it fuel economy or space? Do you want a small car or need a truck? Mark Scott from AutoTrader.com recommends looking at cars that have recently updated their design. If the latest model has a new look than previous models are likely to be priced lower. Secondly, shop smart and start your search and research online. AutoTrader.com and Cars.com are two of the biggest sites and great place to start. And finally before you sign make sure you check out the vehicle’s history report and of course get the vehicle inspected.

To read the full Kiplinger’s article, please click here.

10
May
11

Costs of owning & operating a vehicle have gone up

It probably isn’t a surprise to most of us that the cost of owning and operating a vehicle in the U.S. has gone up this year according to AAA’s 2011 “Your Driving Costs” study. What might be a surprise is that gas wasn’t the cost leader. Even though it seems like gas prices are constantly on the rise the biggest cost culprit this year: tire costs with an increase of 15.7%. Gas prices came in second with an increase of 8.6%. Although we have many more cars in the market and on the road that aim for fuel efficiency, it’s still not enough to truly offset what seems to the be the ever-increasing price of gas. The one factor that had the highest cost this year that many consumers often forget about is depreciation. Every year sedans depreciate by approximately $3,728 and that is up by 4.9% from last year. There is a bright side to all of these rising costs;  maintenance and insurance costs are both down for this year. And as you probably could have guessed; if you own a small car it costs less to own and operate, $8,776 per year versus a SUV that can cost up to $11,239 for the year.

AAA does this study every year. To read the entire article in AAA Newsroom, please click here.




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