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Report: Gas prices to remain low

People in the market for a used car with excellent fuel efficiency may get excited about some data from the Energy Information Administration.

According to the EIA, prices for regular gasoline are expected to average $2.23 a gallon during the summer driving season, which could be described as a relief from the approximately $4 a gallon the public had to deal with last year, USA Today reports.

Tancred Lidderdal, a senior economist for EIA, told the news provider the “bargain prices” on gasoline may entice Americans to drive more. And this may not just be a trend. The administration is predicting the average price per gallon for gasoline will be around $2.42 in 2010.

The report suggests people in the market for a used car may be able to save even more money if the vehicle they purchase is fuel efficient.

Last year, Consumer Reports rated some of the top fuel efficient used cars on the market, which included the 2004-2006 Toyota Prius that reportedly gets 44 miles per gallon, as well as the 2006-2007 Honda Civic Hybrid that gets 37 mpg.

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Adding used cars to Cash for Clunkers may spur economy

According to one company, if Americans were given an incentive to buy used cars, it may help improve the economy.

CarMax is urging Congress to consider including used vehicles in the proposed Cash for Clunkers legislation in an effort to have more Americans afford a car.

The proposal legislation aims to increase new auto sales by giving consumers a voucher to trade in their older car for a new one. The amount will reportedly depend on the make or model of the car.

However, if Congress allows used cars to be included into the legislation, the thinking is that it will allow more Americans to purchase a car, thus spurring the economy. Given the popularity of hybrid vehicles, it may also help get older model cars, which may not be environmentally friendly, off the road, which is another goal of the Clunker program.

Because of the current state of the economy, many people have looked into purchasing a used car instead of opting for a new one, citing their need to save money.

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Blogger: Dodge Neon is a fun drive

Some cars can be a surprisingly fun drive, despite their mediocre looks and a lackluster reputation on the street, according to one car blogger.

Sam Barer, writing for the CarDomain.com blog, recently compiled a list of “guilty-pleasure cars that are more fun to drive than you’d expect.”

One of the cars Barer mentions is the Dodge Neon, a vehicle the blogger admits “was (and will always be) a lousy car to own” because almost every component of the car was “engineered to the same quality levels as a Chinese elementary school.”

However, the car enthusiast concedes that despite the car’s shortcomings, it is “simply a blast to drive really hard,” according to the article.

Barer references the vehicle’s ample horsepower, its “ultra-nimble” handling and the performance of the steering and brake pedal feedback.

While reportedly fun, the Dodge Neon may also be the car for the current time, since more Americans are looking at used vehicles to cut down on transportation costs. Used Neons, especially now, may be a cost-effective purchase for people in need of a reliable and “fun” car.

Just don’t expect it to heighten your street cred when you roll it around the neighborhood.

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Report: Late model used cars are safer

That late-model used car you’ve been eyeing may have gotten better, at least in the eyes of some insurance companies.

A new report released by the Insurance Research Council has found that used cars with front and side airbag systems have a “beneficial impact” on auto injury insurance claim costs.

The increase of automobile safety was found in 2007 vehicles that filed various claims when compared to older models, such as ones from 1990 or 1980, where only seatbelts were found in the car, according to the report. Among the 2007 cars, 82 percent had front and side airbags, suggesting cars from that year and onward may be a safer used car to purchase.

The presence of the airbags was associated with less significant injuries and lower claim costs when the vehicles were involved in a crash.

“Motor vehicles are becoming safer, and these improvements are having a noticeable impact on the seriousness of injuries and the ultimate cost of auto injury claims,” said Elizabeth Sprinkel, senior vice president of the IRC. “These favorable trends have helped offset some of the pressure caused by the accelerating cost of medical treatment for auto injuries.”

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Heidi Klum shows off German engineering

Recently, the public got to revere a German model with some sleek curves and showing off a new look. And Heidi Klum looked nice as well in her vintage dress and shoes.

The 35-year-old German model was recently on hand to show off her new pink customized Volkswagen Beetle at an event celebrating Barbie’s Malibu Dream House 50th birthday party.

Klum, the Emmy-nominated host of the popular television show Project Runway, is having what some may describe as a very good spring. Her reality show is scheduled to return to Lifetime, which will most likely enthrall fans of the reality show that pits unknown fashion designers against each other to see who’s “in” and who’s “out” in the fashion sense.

However, in terms of transportation, it could be argued that the Volkswagen Beetle has always been in style with its innovative rounded look and eye-like headlights.

The 2009 Beetle, which according to Edmunds.com has no significant changes from the past model, sports 150 horsepower with a 2.5 liter five-cylinder engine and 170 pounds-feet of torque, giving the seemingly smallish car enough power to make it one of the more exciting cars to drive.

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Man drives across country in used car

While recent reports have pointed to the durability of fairly new used cars, one man is proving that even a car from the 70s has the ability to take on the road.

Chris Hedgecock bought a 1974 Pontiac LeMans approximately two years ago and is currently driving it across country, WDSU.com reports.

“When we got it, the battery was bad,” Hedgecock told the news provider. “We went ahead and got a new battery from Wal-Mart. We did a little homemade ducting work on the air intake. We replaced all the fluids, replaced the belts.”

After about $200 in repairs, Hedgecock said he was ready to tackle his road trip from San Diego to Miami, according to the article. So far, he has reported no mishaps or problems with the more than 30-year-old car.

Though it may be an exception to find an older car that runs as well as Hedgecock’s, many people have found used cars of recent vehicles to experience the same, problem-free ride.

Some car experts say new used cars can last up to 200,000 miles before needing any major work done, states Consumer Reports.

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GM auction halted by government

It appears that the auction General Motors had planned to rid itself of about 100 classic cars it had in storage and raise money for the failing automaker has been called off by the National Highway Transportation and Safety Administration (NHTSA).

GM, along with Barrett-Jackson Auction Company, was planning on auctioning off cars which it housed in its Heritage Collection.

Both companies have pointed out that many of the cars would not be able to be registered and would be sold with salvage titles as they would not be street legal vehicles, but apparently the federal government is concerned that people who purchase the cars will try to get them registered anyway.

Edmunds cites a story from Sports Car Market which says the NHTSA has halted the auction in Florida for fear of the rogue registration attempts.

A GM auction in January went through without reprisals from the federal government. At that auction more than 200 vehicles were sold including a 1969 Reggie Jackson Camaro which in a 2007 review Edmunds.com called “pure vehicular violence,” “a cranked-up 24-hour high,” and a “rolling onslaught of rawness.”

A used car could last well over 100,000 miles

In the past many people were leery of buying a used car because of the mileage on the vehicle, but today’s cars are more reliable than ever before meaning it might be possible to drive them well over the 100,000 mile mark.

John Ibbotson, a supervisor at the Consumer Reports Auto Test Center, told MSN Money that over the years the life-span of cars has increased dramatically.

Ibbotson says that 100,000 was the limit of most cars through the 1970s, but the number began to shift upward through the decades. By the 1990s, cars were able to handle up to 150,000 miles before an engine went. Cars of today, Ibbotson says, might be able to handle up to 200,000.

What this means to a used car buyer is that a properly maintained late model used car with high mileage is probably not as scary as it would have been 20 years ago.

Maintenance is always an important factor in keeping a car running and Ibbotson says one of the most important things used car owners can do is read the car’s manual and stick to the scheduled maintenance in the book.

Jesse Toprak, an analyst at Edmunds told Dow Jones last month that used cars are better than they were in the past.

“[Consumers are] realizing that the used cars of today are not the used cars of a few years ago, and that realization is not positive for new car sales,” he said.

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The Honda Fit makes a fun, and green, used car

With tax day right around the corner, many Americans could be seeing some tax refunds in their mailboxes soon which could go toward the purchase of a used vehicle. For people looking to be frugal and environmentally conscious – while still having a fun ride – there are some options.

According to Jim Motavalli, a contributor to the New York Times and blogger for Mother Nature Network, there are a number of used cars people should consider if they’re looking to save money and the environment.

Motavalli’s first choice is the 2007-2008 Honda Fit, which he admits he owns himself.

“[T]he Fit combines great performance from its 1.5-liter engine, very crisp handling, and incredibly versatile cargo capacity. The rear seats fold flat, and the car’s tall stance affords both great visibility and sofa-swallowing load potential,” writes Motavalli. “My dealer sent a letter recently begging me to trade in our car, because ’07 used examples are in short supply.”

The Kelley Blue Book website says a 2007 Honda Fit with 30,000 miles and in excellent condition will run around $14,585.

For that price a buyer is likely to get some pretty good gas mileage as the site says the car gets an estimated 31 mpg in the city and 38 mpg on the highway.

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Motorists paying less to own a car

Lower costs at the pump have many used car owners thinking they’ve been saving money, but the AAA says motorists have seen an insignificant drop in ownership so far this year.

According to the automobile association, drivers currently spend 54 cents per mile – 0.1 cent less than last year.

The AAA’s Daily Fuel Gauge Report says the average price of regular unleaded gasoline is at $2.047 per gallon, far below the $3.331 motorists saw a year ago today and less than half the $4.114 consumers paid for a gallon last July.

Marshall L. Doney, vice president of AAA Automotive, says that while gas prices have dropped significantly from a year ago, drivers are facing increases in other automotive expenses.

“While motorists are experiencing relief at the pump, those savings have been countered by revised Environmental Protection Agency fuel economy estimates and increases in vehicle ownership costs such as insurance premiums, depreciation, finance charges and other fees and taxes,” he said.

In what may be surprising to some, the cost of ownership of an SUV has actually fallen 1.9 cents per mile, according to the report. Although they have seen a rise in depreciation and insurance costs, SUV owners pay 68.4 cents per mile – or $10,259 per year – to own their vehicle.

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