Category Archives: General Auto News

FBI warns of internet used car scam

The FBI is warning Americans to beware of a scam that attempts to victimize people looking to purchase cars over the internet.

According to the warning from the FBI’s Internet Crime Complaint Center (IC3), cybercriminals attempt to lure in victims by advertising inexpensive cars for sale on various online classified sites. The FBI says that the ads often claim to use a protection program which the cybercriminal says will lead to a safe transaction.

However, once payment is sent, victims are out both money and a car.

The FBI says that while the scam has been around for some time, a new element of the crime has cybercriminals posing as member of the U.S. military and claiming they need to sell their car quickly and cheaply because they are being sent to Iraq or Afghanistan.

U.S. News and World Report says that when buying a used car, consumers should view and drive the car prior to purchase. The magazine also says that drivers should look at the going price of a car using the websites of the Kelley Blue Book or the National Automotive Dealers Association. If a price seems too low, it may be a sign of an underlying problem.

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Low demand for hybrids might make them a good deal

With the demand for used cars rising as the economy continues to flounder and the interest in hybrids lagging as gas prices remain low, some people think it might be a good time to trade in a late model used car and buy a used hybrid.

Writing for the Freakonomics blog on the New York Times website, Daniel Hamermesh says he’s thinking about doing just that.

Hamermesh says that history has shown that when economic times are tough, people gravitate toward used cars, which could greatly benefit him by trading in his 1999 Honda Civic SI with only 64,000 miles.

He says the trade in would allow him to then make a purchase of a car that’s not in such high demand now meaning it can be had for a steal. Plus although hybrids aren’t selling well at the moment, they’re likely to become popular again in the future when oil returns to more than $100 per barrel.

“I could then buy a new Prius: there are no special price premiums today on the Prius, and I would save money on gasoline now and when gas prices spike again,” he writes.

In a report from USA Today last week, Juan Flores, director of vehicle valuation for Kelley Blue Book said sales of used hybrids are down 23.5 percent since last summer.

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Transmission can affect depreciation

When making a used car purchase, many people take into consideration the amount of depreciation that vehicle will see in the next few years. According to experts, most manual transmissions will lose more money as they age than their automatic counterparts.

According to Ask.cars.com, the amount of depreciation of a manual transmission vehicle depends on a couple of factors, including the make and model.

Automotive Lease Guide general manager James Clark tells the website that in a car segment which is predominantly automatic, a manual transmission is expected to lose more value.

The exception to this rule is sports cars where some drivers like to have the feel of being in more control of the car.

Manuals are also less expensive when purchased new, so it goes to reason that a used manual transmission version of the car would be cheaper than its automatic cousin. For people on a tight budget, this might be a good option to save some additional money.

Whether manual or automatic, according to Cars.com, more people are choosing to make used car purchases because of the economy. A recent survey by the website finds that 32 percent of car buyers who would have normally purchased a new car, bought a used car last month.

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Tips for avoiding a bad used car purchase

Statistics have shown that more Americans are turning to used cars when they decide to make a car purchase, but according to some experts, there are tips car buyers should know before heading to a car lot of used car auction.

According to U.S. News and World Report, although drivers should look for the best price available for a used car, often when the sticker looks too good to be true, it is. The magazine suggests looking at the Kelley Blue Book or National Automotive Dealers Association prices before looking at cars. If the price is well below the suggested price from those sites there may be something wrong.

Experts suggest that you drive a car prior to making any purchase, and the news provider agrees. If a car selling won’t let you drive the car first, you should be a little skeptical.

Another thing to watch out for is missing paperwork. Although it could be just a case of losing some records over the years, it’s best for a potential buyer to do their own research on a used car through sites like Carfax which gives a detailed maintenance report of most cars.

Consumer Reports also suggests that used car buyers do a thorough inspection of any used car before they put their signature on the sales forms.

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An important step to a used car purchase – the inspection

When purchasing a used car, there are a number of factors that should come into play besides the price and look of the vehicle – most importantly, an inspection.

Although the look and price of a car are likely to be the first things that draw a consumer to a used car, Consumer Reports says used car buyers need to make sure what’s under the hood is working in proper order before making a purchase.

The magazine suggests that drivers look over as much of the car as they can, from checking the condition of the car’s body, to popping in a CD or cassette to make sure the sound system works.

“No matter who you buy from, always look over the vehicle thoroughly and take it to a mechanic for a complete inspection. Dress in old clothes and give the car a good going-over,” writes the news provider. “You can learn a great deal just by using your eyes, ears, and nose.”

Used cars are growing in sales as people find they are an inexpensive alternative to a new car and discover that car reliability has increased dramatically over the last decade.

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Survey finds car buyers are choosing used

It appears that a number of factors, including the state of the economy and the increased reliability of cars over the last decade, are leading Americans to increasingly consider buying a used car over a new one.

According to a new survey from Cars.com, 32 percent of car buyers who would have normally purchased a new car, shopped for a used car because of the state of the economy. That number has risen 5 percent from a similar survey done in October of last year.

Cars.com editor in chief Patrick Olsen said there are an increasing number of benefits to buying a used car.

“Consumers are still focused on cost-cutting, and one way to do that is to find a solid used car to help save on the depreciation costs that typically come with buying a new car,” he said.

Although cost savings is a big factor for the jump in used car sales, another factor driving the purchases is the increase in reliability for new cars over the last decade which has trickled down to the used car market.

A recent report from R.L. Polk & Co. finds that the median age of vehicles in the U.S. is growing and now stands at 9.4 years.

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More car buyers using the web to research

A recent report from Nielsen Online finds that a growing number of Americans are using the internet to help find and research their next car purchase.

The study found that even while the car industry struggled in recent months, more people in the car market have been increasing their use of sites like Edmunds.com and the Kelley Blue Book site, kbb.com.

From December to January, Nielsen Online says five of the top automotive websites saw their traffic increase, which the company says is typically a leading indicator of short-term vehicle demand.

Because the traffic for sites like kbb.com have been an indicator of future car sales, Nielsen Online says that if traffic continues to increase, it could mark an increase in the car market in the coming months.

The internet is having an increased effect on car buyers as more Americans turn to their computers to get information on cars before they step foot in a showroom or auto auction. Earlier this year CarFax reported that 75 percent of used car shoppers had been influenced by its report.

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New Jersey plans to pull cars from rivers

Authorities in New Jersey will have a number of wet cars on their hands in the next month when they begin to pull submerged vehicles from the Hackensack River in an attempt to clean up the waterway.

The Record of Bergen County reports that over the last week New Jersey state police have used sonar and help from environmental advocates to locate cars that have been dumped into the river over the course of decades.

The Hackensack Riverkeeper organization has been working with state troopers to help locate the vehicles and the organization’s head says the plan to remove the cars is good for the community.

“As they deteriorate they add even more pollution to the river,” he told the Record. “It makes a good statement to the community that we’re working with the state police to get these cars out of here. It also shows that we’re not going to tolerate this.”

State police hope to be able to identify the owners of the submerged vehicles and plan to prosecute.

It appears to be an effort throughout much of the region as the Newark Star-Ledger reports that state police also scoured the Passaic River in the past week.

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Car owners taking better care of their vehicles

It appears that car owners have been taking better care of their vehicles in recent years, which means the purchase of a used car is more reliable than it was in the past.

Especially as the economy has sagged, more people have put money into their cars to make improvements that they might have ignored in prior years.

Time Purcell, owner of Christie’s Service Station in Westport, Connecticut told the New Canaan News that he has seen an increase in people spending money on the maintenance of their vehicles instead of just buying a new car.

Purcell told the news provider that people have become used to having their cars services regularly when they were under warranty. When the warranty expires, drivers continue to use shops like his to get extensive checkups.

The rise in maintenance of these cars combined with increased reliability of new cars over the last decade has made used cars more attractive than they once were.

“[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,” Jesse Toprak, an analyst at Edmunds told Dow Jones recently.

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Families may need to downsize their vehicles

In these tough economic times many American families are being forced to downsize, but it’s still necessary to have a vehicle that can make it back and forth to the store and still be comfortable for the whole family.

According to MSN autos, there are a number of vehicles families should consider if they’re looking to trade in the gas-guzzling SUV for a used car that’s more economical.

Jeff Bartlett, deputy online autos editor at Consumer Reports says there are a number of reasons families should consider taking a step down from the monstrous vehicles they thought they needed in more prosperous times.

“You save upfront, you save at the pump, you save in your annual maintenance and you’ll recoup a greater percentage on trade-in,” Bartlett told MSN autos.

One of the vehicles that makes the MSN auto list is the Toyota Rav4, which has been in production for over a decade. The site says the vehicle is tiny in comparison to other SUVs so it might be well suited for families with small children.

It appears that a growing number of people who would have normally purchased a new car are turning to used cars. A recent study from Edmunds finds that a half million people who would have normally purchased a new vehicle bought a used car in the three months leading up to February.

Find New York Used Cars with New Jersey State Auto.