Category Archives: General Auto News

U.S. may have been too hasty in closing down car dealers

A new report by the Troubled Asset Relief Program has found that the United States Treasury Department should have carefully considered its decision to order GM and Chrysler to close hundreds of dealerships while the two companies were in the bailout process.

GM and Chrysler both went bankrupt during the financial crisis, forcing the government to step in and take over the companies’ balance sheets. The Treasury Department rejected GM and Chrysler’s plan to close dealerships over a five-year period, calling the measures “too slow,” and instead asked the two automakers to close hundreds of dealerships immediately in an effort to cut costs. Now, many are questioning the decision, as GM and Chrysler have rebounded to the point that they are reinstating many of the dealers.

Special inspector general Neil Barofsky wrote in his recent report that “such dramatic and accelerated dealership closings may not have been necessary and underscores the need for the Treasury to tread very carefully when considering such decisions in the future”

With the closing of so many dealerships, many lightly used cars have found their way onto the pre-owned market. Drivers in areas with a closed GM or Chrysler dealer may want to head to a used car lot in order to find deals and savings.

Automakers focusing on gas mileage

Traditionally, automakers only make small changes on models year-to-year, only truly changing the cars with their publicized “redesigns.” However, sometimes automakers make small tweaks to increase a car’s appeal, as they have been doing lately in attempts to improve gas mileage.

Fuel economy has become an important consideration for consumers looking to save at the pump. With that in mind, some automakers are making slight changes to their vehicles in order to improve their EPA-rated mileage, according to the Associated Press.

Honda, for example, has made some slight changes to its popular Accord model for the 2011 model year. Changes to the car’s aerodynamics, gears, and engine friction have increased mileage from 31 to 34 miles per gallon on the highway and 21 to 23 in the city. That puts it in second place of the midsize models for fuel economy, trailing the Hyundai Sonata’s 35 mpg.

Chrysler has also announced plans to make similar changes to its Sebring and Dodge Avenger models, promising large increases to their current ratings of 21 city/30 highway miles per gallon.

Those looking to save money might want to look at fuel efficient used cars, as they will save money not only at the pump, but also at the dealer.

Man sets fire to used Mercedes

One great thing about buying a used Mercedes is that the brand name will mean that it will always be easy to sell later, and if its truly a classic, it may even appreciate in value. However, one man’s attempts to sell his used Mercedes were dashed when an arsonist allegedly set fire to the vehicle and posted the pictures to Facebook.

Asgard Tarick Gilbert, 36, of Belfast, Maine, has been arrested and charged with felony arson, according to the Bangor News. The owner of the vehicle, a 1982 Mercedes, had been attempting to sell it. Police came upon the blaze and Gilbert snapping pictures on June 28th. Gilbert claimed to the two officers that he had recently discovered the fire.

The officers took down his information as a person of interest in the case. Gilbert later returned to the scene and took pictures of the charred car, posting them on Facebook along with the original photos in an album marked “Warzone.” This caused police to issue a warrant for the seizure of his computer and cell phone.

However, the real break came when police investigated the security tapes of the nearby Belfast Variety convenience store. The tapes show Gilbert on his bike at 12:30 AM, filling a gas can with kerosene before speeding away.

Gilbert is currently being held on $2,000 bail.

Study says brightly-colored cars less likely to be stolen

A Dutch study of car theft data has found that brightly-colored cars are less likely to be stolen than their more commonly-colored counterparts.

Ben Vollaard, an assistant professor of economics at the University of Tilburg, analyzed car theft data in the Netherlands and found that colors like silver, black and blue were stolen at a much higher rate than rare colors like yellow or pink.

Black is the most commonly stolen color, although Vollaard partially attributes this to the popularity of black as a color for luxury vehicles like Mercedes or BMWs. Interestingly, a pink car has not been stolen in the Netherlands in the past three years.

Vollaard concludes that thieves steal brightly or uncommonly colored at an average rate of 40 percent less than other vehicles – about the same as a LoJack or other antitheft system.

The study speculates various reasons for the discrepancy, the strongest being that cars are often stolen for a specific export order, as was the case with a recent New York used car theft ring that was exporting stolen vehicles – specifically silver ones – to buyers in Senegal. Another possibility is that police could quickly spot a thief in a yellow car.

However, the bright color does come with a price. While it won’t cost anything extra at the dealer, a color like yellow can drive down a car’s resale value by about $1,000 dollars, according to the National Auto Auction Association.

Edmunds picks used car “best bets”

Auto website Edmunds recently listed its 2010 picks for “best bets” on the used car market. The awards are based on three issues: reliability, safety and availability. Those interested in purchasing a used car may want to consider picking up some of these models.

The picks were restricted to 2003-2008. Toyota was the most-picked brand, with its Camry, Tacoma and Prius models taking home their respective categories. Honda also put in a good showing, earning praise for its CR-V and Odyssey. Hyundai also had two cars, with the Azera and Elantra winning the large and compact sedan categories.

The rest of the field was a bit of a grab bag, but notable winners include the Ford F-150 for a large truck, BMW 3 Series for a coupe, and Infiniti G35 for a luxury vehicles.

Sometimes it pays for consumers to wait until models have been on the road for a few years to see which will remain reliable and live up to their billing. Then, drivers can be sure to pick up the best-designed models at a discount on the used car market.

NYPD busts car thieves

New York used car drivers are a little bit safer after authorities busted a car theft ring that was targeting Toyota SUVs, Mercedes, BMWs, Infinities, and Range Rovers and reselling them in the U.S. and Senegal.

According to the New York Daily News, the thieves used a complicated system that involved two employees of Toyota dealerships. Several thieves were sent a description of a particular make and model, then the thieves found a car matching the description, using either a swiped key from the dealership or a laptop to hack the car’s computer system. In total, the extensive network comprised over twenty individuals, all of whom served specific roles within the organization.

“This is a big case for us – a yearlong investigation,” Attorney General Andrew Cuomo told the news source. “They had a sophisticated operation, but we had a sophisticated collaboration with the police force.”

The crooks stole cars off the streets in New Jersey, New York and Connecticut. They also used contacts at dealerships and parking garages to swipe vehicles right off the lots. The cars were then shipped out of Newark to buyers in Senegal or sold elsewhere within the country.

“Finnjet” puts conventional vehicles to shame

Sometimes, used car owners are inspiring in how they can breathe new life into an old vehicle. That’s certainly the case with Antti Rahko, a Finnish immigrant who constructed a Frankenstein-esque monster of a ride out of two used Mercedes station wagons and parts of more than 40 other vehicles.

Rahko’s “Finnjet” certainly catches the eye, a 29-foot vehicle that puts limos to shame. The car boasts 36 mirrors, 89 lights, a microwave, TV, freezer, two air-conditoners and a sauna. It seats ten comfortably and achieves a surprisingly efficient 25 mpg.

The sight truly has to be seen to be believed. While some might jest at the car’s ridiculous nature, car enthusiasts consider it a work of art and engineering ingenuity. The Finnjet took top prize in two Houston Art Car Parades and has won numerous awards at similar festivals.

Rahko says the car is fully drivable, and even had the foresight to include a special system that allows it to negotiate tight corners. Rahko and his wife, Eini, recently drove the car from Florida to Canada.

Now, the eccentric owner will put the car up for sale on eBay, due to his failing health. Potential buyers will need to be quite serious bidders- the first bid had a price tag of $950,000, but failed to sell, so Rahko plans to relist it.

Ford dominates “most wanted” awards

As the only company not to accept a government bailout, Ford has been watched closely by auto industry experts. If the results of Edmund’s Inside Line “Most Wanted” awards are any indication, the automaker is getting something right.

The website surveyed readers in a poll of 15 categories of cars in different classes and price points. Ford took home top marks in eight of the categories, and it was only entered in ten.

Three different Mustang models accounted for three of those categories, as the 2010 model has been celebrated for its efficient 30 miles per gallon while still packing 305 horsepower. Other Ford models included the F-150, Flex and Fusion.

Audi took home three awards, mainly in luxury and performance categories. The most wanted concept car went to the Porsche 918 Spyder Hybrid. BMW had one entry on the list, as did Jeep with its Wrangler SUV.

Those who have Fords on their own personal “most wanted” list can save off the popular cars by buying used Fords on the pre-owned market.

Ford Explorer will showcase safety features

Ford has announced that the 2011 version of its popular Explorer SUV will demonstrate several safety features that have not yet debuted on any other vehicles.

According to the Detroit Free Press, Ford will include its new “curve control” technology on the model, which automatically slows the vehicle if it determines that a driver is approaching a curve too quickly.

The technology is based off the company’s electronic stability control, which collects data about speed and wheel tilt to safely control the vehicle. Ford has said that the new feature did not require any additional hardware, and integrated the software into the existing system. Ford said it began to develop the system after government crash data found that 50,000 serious accidents occur each year due to high speeds on curves, also a cause of rollovers on SUVs.

The new Explorer will also feature inflatable seatbelts in the rear seats, which protect passengers like airbags in case of crash.

Those looking for a safe vehicle at an affordable price may want to look at a used Ford with electronic stability control.

Used car sales rise

National used car dealer CarMax has announced a large increase in sales for the year, possibly signalling a return in confidence to American car consumers and a healthy period of growth for used car dealers.

According to Forbes, sales for the nationwide chain increased 27.8% year on year, to $2.3 billion. In addition, cost-cutting by the company helped total earnings rise 253%, to $101 million dollars from just $27 million one year ago.

Although the economy hurt sales, the used auto dealers are recovering quicker than automakers, as consumers look for deals off somewhat expensive new cars. Many are looking for late-model used cars, according to the news source.

CarMax’s stock enjoyed a small bump after the news hit, as did the stocks of several other companies related to the used car market.

Drivers can often get a better deal on a used car by bidding at an auto auction or talking to their local dealer rather than shopping at nationwide chains.