Category Archives: General Auto News

Car sales pump up July

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Posted in Auto Industry News, General Auto News

The Commerce Department reports that while July saw modest growth in overall retail sales, the numbers were helped by a surge in auto and gasoline sales.

According to the report, food and retail sales, including the auto industry, were up 5.5 percent as compared to one year ago, and up 0.4 percent from June. New and used car sales, meanwhile grew 8.9 percent year-on-year, while gas sales posted a 12.2 percent growth.

When adjusted to exclude the strong showings from car-related industries, the retail sector was only up 4.9 percent yearly and 0.2 percent monthly, meaning car sales were responsible for nearly half of the monthly growth and a significant portion of the yearly growth. While most industries posted small gains, department stores notably slipped 0.8 percent as compared to 2009.

Some investors have been concerned that the economic recovery is losing momentum at a critical juncture, according to DailyFinance. While the overall numbers were slightly below expectations, many saw the auto industry’s strong showing as a good signal.

“July was a bit of a mixed bag,” Kamalesh Rao, director of economic research for MasterCard SpendingPulse, told the news source.

Car dealers face inventory shortages

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Posted in Chevrolet, Chrysler - DO NOT USE, Ford, General Auto News

Car dealers across the country are facing inventory shortages on some of the hottest models, as automakers struggle to meet the rising demands of consumers.

During the downturn, many dealership owners were left with an overabundance of cars for sale on their lots, as automakers still had vehicles left over from before the recession, yet few buyers interested in them. Since the car companies have slashed production at many factories, however, dealers are now facing the opposite problem – not enough vehicles to quench Americans’ increasing thirst for cars.

According to Bloomberg, car supply among the Big Three is down 30 percent at Ford, 43 percent at GM and 53 percent at Chrysler as compared to 2008. Yet analysts surveyed by the news source predict that auto sales will rise to 11.9 million vehicles this year from 10.4 in 2009.

That can only happen, however, if the automakers make enough vehicles to achieve that. Already, the major auto companies have added shifts to factories that produce the most popular models.

One dealer interviewed by the news source said he had requested 100 Ford Fusions in July and received just seven – and he owned the best-selling Ford dealership in the country.

The laws of supply and demand dictate that an inventory shortage for new cars means that prices may soon rise. Those in the market for a vehicle might be better off shopping the used car market, where they’ll also find a wider selection.

Ford tops Kelley Blue Book’s most-considered list

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Posted in Chevrolet, Ford, General Auto News, Honda - DO NOT USE, Hyundai, Toyota

In a consumer survey to find what brands buyers are looking at when considering cars for sale, Ford has come out on top.

According to Kelley Blue Book, best known for providing values for used cars, Ford topped the list with 29 percent of buyers considering the automaker when purchasing a vehicle. Ford’s turnaround, bolstered by a redesign of its lineup, has clearly resonated with consumers, as it supplanted Toyota in the previous quarter and increased its lead in this one. Much of its strength comes in the SUV/Crossover segment, where nearly half of all buyers consider the brand, at 46 percent.

Toyota held on to the second spot by a slim margin, with its 22 percent share just edging out Chevy’s 21 percent. The automaker has lost its top position due to quality concerns stemming from the company’s unintended acceleration debacle.

Rounding out the top five was Honda, at 20 percent, and Hyundai, a surprise in the fifth spot with 13 percent.

Those in the market for a used car should do a bit of research in order to narrow down their own list of brands. They might even want to consider using Kelley Blue Book values to get a good price for their current car.

Toyota’s unintended acceleration problems help driver escape prison

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Posted in General Auto News, Toyota

Toyota has come under fire for its unintended acceleration problems, which the National Highway Traffic Safety Administration estimates may have contributed to more than 80 fatalities on the road. The new findings about the issues have helped exonerate one man who was sentenced to jail for vehicular manslaughter.

MotorTrend reports that Koua Fong Lee was behind the wheel of a 1996 Toyota Camry when it struck an Oldmosbile Ciera from behind, killing the three occupants inside. Lee repeatedly testified during his trial that although he stepped on the brakes, the vehicle would not slow or stop. Lee was eventually convicted and sentenced to an eight year prison term

In light of the problems with Toyota vehicles, District Judge Joanne Smith recently ruled that Lee should be allowed to go free. The district attorney has announced she will not challenge the ruling, and at least one member of the victims’ family said they were happy that Lee was being released. The family has also filed a suit against Toyota.

Those in the market for a used car shouldn’t necessarily shy away from used Toyotas. With a little research, drivers can find which models are unaffected and possibly get a great deal, since the value of Toyota cars has dipped because of quality concerns.

AP: Scion xD is overlooked

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Posted in General Auto News, Toyota

When buyers are looking at a used Toyota, they often go for a Corolla or Camry. Yet many drivers forget about Toyota‘s youth-oriented Scion brand, which features a few vehicles that drivers might want to give a second look.

Scion is usually identified with the boxy-looking xB, one of the first modern cars on the road that embraced a squared-off look. But drivers who aren’t fans of that aesthetic and are in the market for a used car might want to consider the xD.

According to the Associated Press, buyers have continually overlooked the car, and it’s not clear why. The small five-door hatchback boasts more horsepower than its competitors in the segment and Consumer Reports recommended the car as eminently reliable. Still, despite acclaim that would make it a hit under other brands, the xD is Toyota’s slowest selling non-luxury car.

The news source reports that the car is great for city driving, gets 30 mpg, and has a number of seat configurations that its major rivals do not.

Drivers who are buying a used car might want to consider trying out a Scion xD and seeing how it compares to other cars in its class, like the Honda Fit or Nissan Versa.

Used Ford owners get engine boost

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Posted in Ford, General Auto News

Many drivers opt to increase their car’s power through aftermarket parts and accessories. But few get an offer from the dealer to come back and get their car upgraded for free.

That’s exactly what Ford is offering owners who bought the Ford Super Duty pickup truck this year. The current engine in the Super Duty is a 6.7-liter Powerstroke V-8 turbocharged diesel, but its numbers were just below the best in its class.

However, Ford engineers have figured out a way to upgrade the engine in order to give it class-leading numbers. Now, Ford is thanking customers that bought the vehicle by offering that upgrade free of charge, according to USA Today.

By dropping the car off at the dealer, drivers will get 65 more foot-pounds of torque and 10 extra horsepower, pushing the car up over 400. The upgrade offers will start this month and continue into the next year.

The upgrade also affects any unsold Ford Super Duty cars for sale that dealers have on the lots, as well as trucks currently in production.

Drivers who buy a late-model used Ford Super Duty without the upgrade can know that they’ll have a bit more power once they take it by a dealer.

Unique Mustang to be auctioned off for charity

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Posted in Ford, General Auto News

A unique Mustang inspired by the Lockheed SR-71 Blackbird spy plane will be auctioned off for charity at an aviation event in Oshkosh, Wisconsin.

According to the Detroit Free Press, the Experimental Aircraft Association AirVenture aviation show asked Ford to design a special vehicle in order to raise money for EAA Young Eagles, a foundation that provides educational flights for children.

The automaker obliged, and designed a one-of-a-kind iteration of its 2011 Mustang model. The unique vehicle includes a supercharger that boosts its V8 engine up over 500 horsepower, special performance wheels, and a lower ride height. In addition, the sleek black paintjob and “fuel streak” racing stripes, calls to mind the classic stealth plane.

“The difficulty is trying to honestly make the car look like the plane has sort of wrapped itself around the car,” Mustang chief engineer Dave Pericak told the news source. “Anybody can just bolt things on and make it gimmicky. You want to really make the car become the aircraft.”

It’s unlikely that many buyers will be able to afford the unique vehicle’s $500,000 price tag. Yet that doesn’t mean drivers have to price themselves out of a pony car. By searching the pre-owned market, consumers can easily find used Ford Mustangs at a fraction of the original price.

Market possibly shifting toward SUVs again

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Posted in Auto Industry News, General Auto News

New data is suggesting that the SUV might not be as dead as many think, as the segment’s growth outpaced that of smaller cars for the first half of 2010.

According to trends analyzed by Autodata and reported by USA Today, SUV sales actually increased at a faster rate than that of more compact and fuel-efficient compact cars. The data shows that SUV sales grew at a rate of 19 percent as compared to the auto industry’s overall rate of 17 percent and compact cars’ 14 percent growth.

While compact cars still outsold SUVs by a tidy margin – 974,000 to 121,000 – the data indicates that many may be ready to get back into an SUV.

The news source pointed to several potential reasons for the possible shift, citing a recovering economy, lowered fuel prices and the addition of fuel-efficient crossovers to the SUV fleet.

SUV fans may be able to find deals on classic SUV models, like used Ford Explorers, by visiting their local auto auction, as many have opted to trade the vehicles in in favor of crossovers.

New York cabbies prefer used Ford Crown Vics

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Posted in Ford, General Auto News

A new initiative to replace New York City’s 13,400 taxis with a more fuel-efficient and greener option is being met with some resistance by the taxi drivers who navigate the cars through the city’s busy streets every day.

Although the New York Taxi and Limousine Commission has kicked off its “Taxi of Tomorrow” competition in an effort to find cleaner vehicles, many drivers say they will be sad to see their used Ford Crown Victorias go. The commission hopes to replace the varied models among the NY used cars that cabbies drive with one clean, standard model by 2014, according to USA Today.

Yet Ford has decided to discontinue the Crown Vic, so taxi companies will need to find a new option. The Taxi of Tomorrow competition was launched in order to find a satisfactory alternative. Still, many drivers have nostalgia for the vehicles they have driven for years.

Jana Stroe says she has been driving used Ford Crown Vics for 20 years. “The car is good the way it is,” she told the news source. “We don’t want the hybrid. Hybrids have so many problems. We take a lot of customers from the small cars.”

Many drivers echoed her views, saying that when given the choice between the two, many customers will gravitate toward a roomier vehicle like the Crown Vic over a more compact car. Some drivers even report earning extra money behind the wheel of a Crown Vic.

Whatever the city ends up deciding upon as its new model, tourists can rest assured: the cars will still be painted that famous shade of yellow.

Teenager swaps cell phone for Porsche

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Posted in General Auto News

Some folks will stop at nothing to get the used car they want. When that car is a Porsche Boxster, buyers may have to search several used car lots in order to get a great deal. But even the biggest discount probably doesn’t compare with the deal that 17-year-old Steven Ortiz got on his Porsche.

Ortiz used the “barter” feature on Craigslist to make swaps that eventually landed him the Porsche over a period of two years, according to the Whittier Daily News. Starting with an old cell phone that a friend gave him, he traded up for a slightly better phone, then parlayed that into an iPod Touch.

The iPod got him a dirt bike, leading to several slightly better dirt bikes, which he eventually used to get a MacBook Pro. He then traded the MacBook for a used Toyota 4Runner.

But since Ortiz was only 15 at the time, he had no use for the car. So he traded it for an expensive golf cart, which he used to eventually get himself a motorcycle. The motorcycle proved the key to swapping for a used Ford Bronco.

Some enthusiasts consider particular models of used Ford Broncos to be collectibles – and Ortiz’s 1975 Bronco was probably worth about $15,000. One user was willing to swap his 2000 Porsche convertible for it, and now Ortiz has the nicest car in school.

With a little determination and patience, folks can find a great deal on the used car they desire as well.