Category Archives: How To

Why to refinance your car loan

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Posted in Auto Loans & Financing News, How To

Drivers in the market for auto loans have a wide variety of sources to choose from when attempting to secure financial assistance. Whether they go to a bank, credit union or the dealer themselves, getting a loan is a pretty simple process, even for those with poor credit.

If you've already got a loan, however, you should keep in mind that it's always possible to refinance your loans and receive more favorable terms. The term "refinance" can conjure up images of mountains of paperwork for some people, as the term is typically associated with the mortgage industry. Contrary to popular belief, however, refinancing in the auto industry is much, much easier.

Refinancing can be very useful for drivers with bad credit. For example, if you have less than stellar credit, you'll slowly but surely build your score as you make the payments on your car loan. As your score rises and negative marks fall off your credit report, you could end up with a much better score down the line. This is where refinancing can be really helpful.

Take a five-year auto loan as an example. Good payments over the first two years will likely repair your credit score substantially, at which point you can begin shopping for refinancing options. The terms that are now available to you will likely be a big step up from the previous interest rates, meaning you'll be able to save a boatload of money for the final three years of the loan.

Refinancing is still applicable even if rates haven't gone down or your credit score hasn't improved. If you feel like you're spending too much money paying off your car loan each month, you can actually lower your monthly payment simply by extending the terms of the loan. By adding an extra year or two, you'll end up with more money each month.

Finally, choosing to refinance can essentially serve as a "do-over" to the initial loan. Dealers make a lot of money off of their financing departments, and some can be less-than-reputable, offering inflated interest rates or unfavorable terms. If you feel like you've been taken advantage of, refinancing can ensure that you get a much more reasonable rate.

When you've chosen a vehicle and are ready to talk financing, consider New Jersey State Auto Auction. Not only do they offer a wide variety of cars for sale, but they offer trustworthy auto loans at competitive rates and work with borrowers with all types of credit scores.
 

Edmunds: Compact car prices on the rise

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Posted in General Auto News, How To

The recent uptick in fuel costs has caused the prices on many used car models to soar as of late, especially compact cars with good fuel economy ratings.

According to data from Edmunds reported by MSNBC, the price of a used Honda Accord has gone up significantly since September, with a purported price increase of 24 percent. Used Hyundai Sonatas are also up in price, with an average jump of 22 percent. Other big movers include the Honda Civic at 13 percent and the Nissan Sentra at 12 percent.

"Gas prices are definitely starting to ripple in the used car market right now," Bill Visnic, an analyst for Edmunds, told the news source.

The news may not inspire much confidence in drivers considering a used vehicle, but analysts believe that the recent trend is just the tip of what could eventually be a much larger surge in small car prices. In the past, seeing the price of fuel reach above $4 per gallon tends to send consumers into a panic, trading in their large vehicles for smaller ones. The price has already been above $4 in some parts of the country, but the national average is still at $3.80 – meaning small car prices could go higher still if costs continue to rise.

In addition, the recent Japanese earthquake may mean a shortage of vehicles over the summer, making the future appear a bit bleak pricing-wise. Many dealers are already preparing to have a reduced supply of cars for sale, meaning that incentives are drying up and prices may begin climbing in anticipation of the shortfall.

Of course, for those who can weather the low fuel economy, this can be a great time to get a deal on a used SUV or sports car. It's true you might be paying a bit more at the pump while the prices remain high, but if you end up with significant savings on the initial deal, it'll be worth it in the long run.

In essence, it might be smart for drivers considering the purchase of a used car to buy as soon as possible, before the prices start to go up even further. Shopping at New Jersey State Auto Auction can ensure that you get a fair deal no matter what the national pressures may be. Financing is available for those who qualify, and there is a wide selection of cars for sale no matter if you're looking for an SUV or small car.

Trade your car in now before prices rise

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Posted in How To

Even those who have never taken an economics course knows that any business is ultimately based off of the law of supply and demand. With the recent Japanese earthquake wreaking havoc on Japanese automakers and car parts manufacturers, it seems like the "supply" aspect of the equation could be in great jeopardy over the next few months – leading to a demand that could send prices soaring.

Nearly every dealer seems to use the phrase "now is a great time to buy." In fact, the slogan is so often repeated that it's essentially lost all meaning to most buyers. However, now really is a good time to buy for those seeking a vehicle, before the effects from the earthquake really start to take their toll. Most dealers have a supply of cars that will last them through April and May. But with production slowing down or ceasing completely at several major automakers, many analysts are predicting shortages over the summer. The situation is not restricted to Japanese vehicles either – many domestic models source their parts from Japan, so they're expecting slowdowns as well.

"If you need a vehicle, buy right now," Edmunds president Jeremy Anwyl told USA Today. "Look for the vehicles that are available and have incentives to get a good deal… If you can wait until fall, the pricing will be better."

So with prices likely to rise over the summer, it's a good time to buy a car, but it's also looking like it will be an excellent time to trade in a vehicle. Dealers are fully aware that they may be seeing reduced inventories over the next few months, so they'll be looking to secure cars that they can resell over that time period. That could potentially lead to a higher price for your trade-in.

Of course, the normal rules of trading in your car still apply. Be sure to utilize pricing guides like Kelley Blue Book to determine what your car is worth, and don't be afraid to negotiate. In addition, keep the discussion about the trade and your potential vehicle purchase completely separate. Many dealers will raise the price of the car that they're selling you while seemingly offering a great deal on your trade. Keep the two figures separate. In fact, Edmunds recommends not even revealing that you have a trade until after you've locked down a price for the car.

With some savvy shopping and a little elbow grease, you can get a great price on a new or used car as well as an excellent deal on your trade-in. When you're ready to buy, head down to New Jersey State Auto Auction for a great selection of vehicles and fair trade-in prices.
 

The secrets of resale value

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Posted in How To

Even novice car buyers have heard the term "resale value" over and over again. In short, a car with good resale value will eventually command a higher price when you eventually decide to trade in your vehicle. However, what exactly goes into determining a car's resale value?

The quick answer is "everything." Nearly every detail of a car goes into determining its resale value. Many car dealers use pricing guides, like Kelley Blue Book (KBB), to get a rough estimate of the starting point for a negotiation. However, everything from the make and model to the service history to even the color can cause that initial value to fluctuate wildly.

It's also a price that's open to negotiation. Some dealers will offer you what initially sounds like a great price for your trade-in. Then they'll make that money back by playing tough on the negotiations for the new car. Others will do the opposite – seemingly give you a break on the car being sold but lowball you on the trade.

So, how can buyers pay attention to this very important value and turn it so it works in their favor? FoxBusiness talked to Mark Scott, a senior manager at AutoTrader.com, for some of his tips.

The biggest factor is likely the make and model. Some brands tend to hold their value well over the years, while others simply don't. The winners and losers in resale value are largely based on consumer taste at the time and can change quickly. Every year, KBB posts some of the top models that it predicts will hold resale value well. That's a good starting place for those looking to maximize their resale value.

Other factors, like color, are also important. You might love your bright pink car, but it's unlikely that many other drivers will, killing the resale value.

But what if you already have the car? Unfortunately, you can't change the make, model or color. Still, you can maintain your resale value simply by maintaining your car. An accident-free record and no major service incidents go a long way. As does avoiding things like aftermarket parts and accessories.

Timing and location are also big factors. As a general rule, dealers are more interested in trades when they're less busy. And geography is important too; a dealer in snowy Minnesota isn't likely to be too interested in your rear-wheel drive convertible in the middle of winter.

Finally, it's important in the negotiation to handle the trade and the buying of the new car as separate transactions. Doing so can ensure that you get a fair price on both. Drivers looking for a good deal on their trade-in may want to consider New Jersey State Auto Auction, which accepts all trades and offers a wide variety of new and used cars for sale. 

Consumer Reports reveals Brand Perception study

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Posted in How To, Toyota

With so many new and used car brands to pick from, drivers in the market for a vehicle need to consider several important factors in choosing the right car for them. But even once they've narrowed it down to a particular type of vehicle, like an SUV, they'll still need to choose among the various vehicles within that segment, many of which will be competitively priced and boast similar features.

This is where brand perception comes into play. What sets a Volvo SUV apart from one made by Nissan? While these vehicles might have similar performance characteristics, most drivers will identify Volvo as a brand that focuses on safety, while Nissan has a reputation for innovation and technology.

In an effort to track how customers feel about certain automakers, Consumer Reports introduced the Car Brand Perception Survey. This study talks to 1,700 drivers about the different characteristics of the major brands, asking them to rate brands on value, safety, environmental friendliness, performance, style, innovation and quality. Respondents are given points, which they assign to each automaker based on their strengths. The points are then totaled and aggregated into an overall score.

In past years, Toyota has dominated the survey, with a lead massive lead over other automakers in years past. Yet thanks to the recent recall scandal, the brand's perception has suffered, and the automaker has fallen 46 points in 2 years, according to the company.

That opened the door for Ford, which has had a fantastic turnaround in the past few years. The company gained 35 points during the same period that Toyota fell, and while it was unable to overtake the Japanese giant this year, it fell shy by just 3 points. Ford ended up with 144, good for second place beyond Toyota's 147.

However, Consumer Reports noted that Toyota's victory came largely because of a victory in the "green" environmental category, a factor that the company has found consumers actually care less and less about. Only 28 percent of respondents cited environmental friendliness as factoring into their vehicle purchase. Thanks to its Prius hybrid, Toyota scored a 46 in that category, dominating Ford in second place with 18. Yet Ford beat Toyota in categories like safety, value, performance and style.

Other brands posted strong showings as well. Honda came in third with 121 points and was cited as better than Ford and Toyota in terms of quality. However, the brand has lost 28 points over the past two years. Chevrolet was in fourth, although it lost 22 points in the past two years as well.

BMW posted a strong showing as usual, in fifth place with 93 points and the overall winner of the performance and styling categories. Its German rival Mercedes-Benz was close behind with 90 points and was also considered the most innovative.

Finally, the survey also released the names of some brands that finished particularly poorly. Isuzu only managed an overall score of two, with Suzuki and Mitsubishi coming out with a five and eight, respectively.

Cool cars on a budget

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Posted in Ford, How To

Drivers can compare vehicle specifications and performance as much as they like, but ultimately one of the biggest motivating factors that drive vehicle purchase is simply how "cool" a car is – a highly subjective but nevertheless important quality for cars to have.

In a recent survey by J.D. Power and Associates, the company found that one of the reasons that customers will stay loyal to an automaker is if the vehicles are particularly fun to drive. Rather than focusing on practical reasons like fuel economy or horsepower, the driver was instead looking for an emotional response.

So which cars are cool? That's entirely up to the driver, but there are some cars that nearly everyone agrees on. The vast majority of drivers won't turn down the chance to get behind the wheel of a Mustang, and "lame" isn't often heard to describe James Bond's lineup of Aston Martins.

Yet while many of these no-brainer cool cars are in the luxury or supercar segment, automakers have also been a bit more aggressive with their styling as of late. Kelley Blue Book recently profiled ten cool cars that can all be had for less than $18,000. Drivers should keep in mind that if they instead opt for a used car, they can probably afford a cooler one as well – as long as they don't mind a few miles on it.

One of the prime examples of a cheap but cool car is the recently-launched Ford Fiesta. Ford started the marketing buzz on this machine with a cutting-edge social media movement, and it was reflected in the sales. With a highly-personalized exterior and an eye-catching shape, the Fiesta will turn a few heads without breaking the bank.

For those who want a car that breaks the traditional rules, the Nissan Cube is another affordable option. This box-shaped compact looks like something out of a science-fiction movie and features unorthodox styling, like a wraparound rear window.

Yet a car doesn't need to be unconventional to be considered cool. The Hyundai Elantra Touring edition sticks pretty closely to the established station wagon archetype. Where it really diverts is in the bevy of features that come standard. Drivers will be safe and secure with eight airbags as they rock out to a 172-watt sound system that features MP3 playback and iPod integration.

The common sedan might not be the first thing that drivers think of when they hear the word "cool car" but the news source cites the Honda Civic as a notable exception. The Civic is reliable and practical, with good performance and a reputation for reliability, but it also offers drivers styling that's reminiscent of the cars of the future. Inside, options for Bluetooth, a navigation system and all-leather seating can turn the Civic into a truly cool car.

Ultimately, getting a cool car on a budget will come down to what the driver is looking for, but the wide variety of cars for sale in recent years gives them more options than ever in creating their own cool ride.
 

Tips for the negotiation process

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Posted in General Auto News, How To

Buying a new or used car can be a complex process with a lot of moving parts. If drivers aren't careful, they can quickly find themselves paying much more than they initially bargained for.

Fortunately, there are some easy tips that buyers can keep in mind to help make the negotiation process a bit easier on themselves. Despite the public perception, most car dealers aren't looking to swindle their customers. It would be naive of shoppers to think, however, that salesmen and dealers won't be attempting to maximize their profits.

MSN Autos recently spoke to several consumer advocates about some tips that could help buyers save a bit off of their next purchase. With these in mind, shoppers can help themselves negotiate the best possible deal.

As a starting point, Jeff Bartlett of Consumer Reports told the news source that it's helpful for shoppers to think of the process as a series of steps. Keeping these steps separate is key to understanding everything that's going on and avoiding potential pitfalls.

"They're looking at making money off you in stages," he said. "So it's important for customers to keep the stages separate and not lose track of what's going on."

For many buyers, one of those stages will be a trade-in. Swapping a used car for a new one can be a powerful tool that can work in the buyer's favor, but many dealers will use the trade-in value to distract from the actual purchase. They might make a generous offer on the car only to recoup the money by inflating the new car price, or vice-versa. The best strategy is for buyers to simply avoid mentioning the trade until the final price is locked in. Negotiate them as two separate transactions to make things easier.

Locking the final price of the car in can also help on the lending front. Buyers seeking a loan will have a whole other set of factors to worry about, including monthly payments and interest rates. So it's a lot easier to think in these terms once the actual price is known. Dealers make most of their profits off of financing, so those who plan on paying cash may not want to advertise it right away. That will tip salesmen off to the fact that they'll have to be very rigid with their pricing, since they won't be recouping any expenses through financing.

Finally, the news source reports that one of the more common mistakes that buyers make is simply not comparison shopping. Drivers may get locked into a specific model or settle for one of the cars for sale on the lot. It's important to test drive a number of different models and shop around for the best price. Shoppers shouldn't be afraid to quote a price from one dealer to another – this is a great way to drive down the cost of a vehicle.

Buyers who are really looking to save should keep in mind that new car lots aren't the only places to find vehicles. Often, better prices can be had on lightly used cars at their local dealer or auto auction.
 

Cars that can handle the snow with no issues

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Posted in Ford, How To

For those who live in the northern states, buying a new or used vehicle that will be guaranteed to handle the winter months is extremely important. Once the snow starts falling and the ice starts forming, it might be time to put the sports car away and consider at something a bit more durable.

MSN Autos recently took a look at some vehicles that operate just as well in the winter months as they do in the spring and summer. Most of these vehicles have all-wheel drive (AWD), but a few have a couple of extra features that allow them to really go above and beyond when it comes to handling the snow.

The first choice was the trio of American pickup trucks: the Ford F-150, Chevrolet Silverado and Dodge Ram. In addition to coming with four-wheel drive, these trucks have the added benefit of a taller ride height that gives them more stability. Compared to many of the other full-size SUVs, the pickups are also a relatively inexpensive choice when it comes to braving the winter weather.

Those who would rather opt for a traditional sedan may be interested in the Ford Taurus SHO. This car's V6 engine provides enough power to handle any trouble spots while simultaneously offering AWD. The news source writes that the car is "built in the Windy City for the wintry weather," so those with inclement weather to tackle may want to consider this edition of the Taurus.

One of the big selling points for SUVs is the ability to handle tough terrain, and the mixture of snow and ice that comes every winter definitely falls in this category. While most SUVs will be a solid choice, the news source points to the Toyota Land Cruiser as a solid example of a full-size SUV that will make short work of the winter season. With a history that includes military transport and a stint as the Royal Family's chosen vehicle, the Land Cruiser is renowned for its ability to transport a large amount of people and gear efficiently and safely.

Drivers searching for luxury cars don't have a ton of options when it comes to handling snow, but the Audi brand's signature "Quattro" four-wheel drive is a good starting point for those who want a high-end car that can handle the snow. The news source recommends the A6 Avant as having plenty of room for the whole family in addition to the Quattro feature. An optional heated seat and dual climate control upgrade will keep everyone comfortable along the way.

Kelley Blue Book reveals cars with the best resale value

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Posted in BMW, How To

When buying a new or used vehicle, owners must factor the model's resale value into consideration. Most drivers don't aim to run their car into the ground until it can't function anymore, instead opting to trade in their vehicle when it's time for a new purchase.

That's why resale value is so important. According to Kelley Blue Book (KBB), a pricing guide for used cars, a $25,000 car with great resale value will actually save a driver money over a $20,000 model with poor resale value, given a 3-year ownership period.

KBB recently named its 2011 Best Resale Value Awards, a yearly distinction given to the models and brands that are expected to hold their value for the longest amount of time. The company named the top 10 vehicles as well as some winners within their segment.

Despite the appearance of perennial best-sellers like Toyota and Honda on KBB's list, the consumer guide went in a different direction in naming the brand of the year. With a massive improvement over years past, Subaru took home the title as the brand with the best resale value. The guide noted that buyers are beginning to take notice of the company's recent efforts to improve its vehicles.

The luxury brand of the year was BMW, with both the BMW X5 and X6 luxury crossovers singled out on the top 10 list as being especially valuable. BMW vehicles tend to have the latest technology and timeless styling, and always command a high price tag simply due to the prestige associated with the name.

Yet BMW was unable to take home the title for luxury car with the best resale value. That went to the Audi A5, which KBB described as having "perfect form." The A5 was the only entry for Audi, although Volkswagen, which owns the German luxury brand, was honored as the best alternative energy car for its Golf TDI Hybrid.

Overcoming its safety-related issues from earlier this year, Toyota was able to post two vehicles in the top 10 in addition to two more from the Lexus nameplate. The FJ Cruiser off-road SUV and Tacoma pickup were honored for the main brand, while the RX and GX SUVs were named for Lexus. The Toyota Sienna, while not named one of the top 10 vehicles, was named the best minivan.

Ford didn't have a vehicle on the overall list, but was able to come out on top in two segments. The best-selling F-Series pickup truck was singled out in the full-size pickup class, while the Mustang was picked as the high-performance car with the best resale value.

Finally, it wouldn't be a discussion of resale value without a mention of Honda. The Japanese automaker just had one car on the best overall list in the form of the new CR-V, but the Accord and Fit won the mid-size and subcompact segments, respectively.
 

Shopping for value in the SUV market

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Posted in Ford, How To

There's no question that buying an SUV can be pricey, and even when shopping the used car market for discounted vehicles, buyers will likely be spending more than they would on a sedan or hatchback. That's why it's important to get all the features and performance possible out of an SUV at a reasonable price.

MSN Autos recently took a look at some of the top SUVs available on the market that can deliver great value without breaking the bank.

The Toyota RAV4 and Honda CR-V are two entry-level SUVs that have sold well for their respective companies over their lifespan. While the news source claims that both offer buyers good value, the RAV4 is a bit more flexible, allowing drivers the option to upgrade from a four-cylinder engine to a six-cylinder while the CR-V is four-cylinder only.

Ford had two entries on the list, but both models are aimed at very different segments of SUV buyers. The Ford Flex offers exactly what it's name implies: flexibility. This model is big enough for families to be seated comfortably, but also offers a more practical fuel economy rating and aggressive styling than more traditional SUVs. Meanwhile, the Ford Expedition is what many consider to be "traditional." Offering a ton of roominess, cargo and storage capacity, plus the ability to be outfitted for off-roading, the Expedition is a classic SUV that helped kick off the big car trend several years ago.

Chevrolet was also well-represented on the list, with the Equinox, Traverse and Tahoe all making the cut. The news source cited the Equinox's roominess and size as a major factor in the recommendation, noting that it offers near-midsize level space at a compact price. The Chevy Traverse is aimed at larger families, with seating for eight and a range of optional electronics upgrades that can make long hauls a bit easier. The Traverse is closely related to the Buick Enclave and GMC Acadia, which the news source also recommends. Yet the Tahoe may be the ultimate vacation vehicle, with class-leading fuel economy and enough towing capacity to haul a boat or trailer. Available upgrades can also bring the Tahoe close
to many luxury SUVs.

There's no shortage of options for buyers seeking value in the SUV market. Those who shop the used car lots can likely find a few of these highly-praised models for even further reduced prices.