Buying a new vehicle instead of a used car in New Jersey could require five months’ wages

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Posted in Auto Loans & Financing News

Comerica Bank recently issued a report on the costs of purchasing a new vehicle, and while the affordability index has remained relatively unchanged, it still takes 22 weeks’ wages to purchase a new car, compared to lower prices for used cars in New Jersey.

The financial institution said that the numbers are actually slightly higher this quarter, as dealers and automakers restrict some of the affordable lending options initiated during the financial downturn to boost sales.

“Reflecting the partial normalization of credit markets, the average rate paid on a car loan at finance companies was only 3.45 percent last quarter, the lowest level seen in five years,” noted Dana Johnson, Comerica Bank chief economist.

However, incentives like attractive financing and the Cash for Clunkers program are unlikely to last, as Congress and the Obama administration are looking to put Chrysler and General Motors onto a comfortable profit margin with limited incentives to buyers before selling the public’s stake in both companies.

Resistance from Republican lawmakers, as well as some Democrats and environmentalists, could also limit future funding for the Cash for Clunkers program, making used cars in New Jersey a more affordable option for some buyers.

Buyers no longer enticed by Cash for Clunkers may be looking at used cars in New York

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Posted in Auto Industry News

Recent internet purchasing analysis shows that by August 20, interest in new cars will be down to the level it was before the government-sponsored programs, in part because of people preferring used cars in New York.

Edmunds.com said that although interest reached a high on July 29, two days after the federal program was officially launched, buyers are now less likely to be shopping online and researching new vehicles.

“The funding for the original program was very low in relation to the size of the auto market,” said Michelle Krebs, Edmunds.com senior analyst. “This created a ‘Gold Rush’ mentality where consumers hurried to take advantage before funding ran out.”

People are still looking at purchasing vehicles, however, including those now considering used cars in New York, but there is some concern about new car sales later this year.

Krebs’ colleague Jessica Caldwell warns that a continued economic downturn could impact sales this fall, even with the introduction of new models after the spate of purchases related to Cash for Clunkers.

Buyers don’t need to wait for concept car to see roomy used Toyota Matrixes in New Jersey

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Posted in General Auto News, Toyota

A compact hatchback based on the Toyota Corolla is likely to take a bow at the Frankfurt Auto Show next month, but buyers looking for a roomy hatchback from the automaker could also consider a used Toyota Matrix in New Jersey.

The small concept will be made as a Lexus, and is designed to compete against the Audi A3 and BMW 1-series, a class of high-end hatchbacks that are more popular in Europe than here, reported Edmunds.com.

The car is likely to be presented at the Geneva show in 2010 as a pre-production model, but the website cautions that it’s not likely to make it here any time soon.

On the other hand the 2005 model year offers buyers considering used Toyota Matrixes in New Jersey a car they’ll be able to actually purchase, and one that offers good headroom and flexible seating, according to a Cars.com review.

The hatchback also adds more steering feel than the Corolla it is based on, and drivers can use up to 52 cubic feet of the interior for cargo with the seats folded down, reported the news provider.

Used Ford cars in New York may represent the last of their generation

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Posted in Auto Industry News, Ford

Buyers who like some Ford models could find themselves looking into used cars in New York, as the automaker recently announced plans to revamp a wide swath of its worldwide product line.

In fact, up to 9 out of every 10 Ford cars offered in 2012 will be either an all-new design or an update of a model that incorporates global cues, another hallmark of the company’s rebuilding plan.

“In the worst of economic times, we are taking the actions necessary not only to strengthen Ford’s business but also to deliver world-class levels of product freshness globally,” said Lewis Booth, Ford’s chief financial officer.

That consolidation is also expected to reduce the variety now available with used Ford cars in New York. Worldwide, the automaker is hoping to cut the number of models it offers from the 59 it offered in 2008, a 40 percent decline from the number of options available just two years earlier.

“As we reduce costs, manage cash and increasingly leverage our ‘One Ford’ global product plan, our critical priority is protecting and enhancing our new vehicle pipeline,” added Booth.

Chevy Volt realities could point buyers to used Volkswagen Golfs in New Jersey

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Posted in Auto Industry News, Chevrolet, Volkswagen - DO NOT USE

They may be working together on a separate educational program to develop hybrid technologies, but buyers considering used cars in New Jersey may be interested in learning that the Environmental Protection Agency is distancing itself from General Motors’ claim that its new Chevrolet Volt hybrid could get 230 miles per gallon in certain situations.

“The EPA has not tested a Chevy Volt and therefore cannot confirm the fuel economy values claimed by GM,” an administration spokesperson said in a statement. The official did go on to say that the EPA was glad that the automaker was making efforts to develop fuel efficient technology.

There may be one other problem for buyers looking at the Volt, slated to go on sale later next year: it’s expected to cost $40,000, and is not much more efficient than some diesel cars after 200 miles.

For example, used Volkswagen Golfs in New Jersey can get more than 50 miles per gallon, dependent on driving style, not far off from the Volt’s estimated mileage over 200 miles and many are priced at less than half of the price of a new Volt, reported the Atlantic.

Cash for Clunkers could limit charities’ access to used cars in New York

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Posted in General Auto News

When people consider their options when looking for a newer model vehicle, one possibility is to donate used cars in New York to charities. Owners get a tax break and charities profit from selling their stocks.

Unfortunately, the nonprofits say that the Cash for Clunkers program has had a negative effect on their ability to raise funds for initiatives like housing and feeding the homeless, which is the aim of Mission Solano in California.

“Those profits were already down as consumers hold onto old cars longer or broker their own sales to weather the bad economy,” says Ron Marlette, the organization’s executive director. “But, the Cash for Clunkers program is also hurting those who traditionally turn to the Mission to buy low priced transportation.”

It also hurts the prospects of those who may want to buy used cars that are within their price range, but are unable to do so because the vehicles are now marked “Not for sale – must be crushed,” he added

Further east, some charities in Chicago say they will be lucky to have sales reach 25 percent of their height, according to CBS News.

Lack of insurance could prove costly for drivers of used cars in New Jersey

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Posted in General Auto News

Some in the industry estimate that up to one in seven motorists drive without insurance, but new enforcement efforts could affect owners who choose not to buy policies for used cars in New Jersey.

Local police agencies are setting up checkpoints that are similar to DUI stopping areas, requiring that drivers prove they have insurance and registration documents.

And it really doesn’t matter who they stop. William Mecke works for the Georgia Regional Transportation Authority as its communications director, and actually has insurance.

However, when an Atlanta-area officer stopped him and asked for proof of insurance, Mecke couldn’t find a current card and ended up with a ticket.

For those who choose to go without insurance entirely, police have the right to seize used cars in New Jersey and other jurisdictions, levy hefty penalties and even suspend someone’s license.

College students may be one group more affected than others, with lower annual income than other demographics.

They could help themselves two ways: a fuel-efficient used car is often less expensive to insure than new models, and getting good grades can reduce rates as well.

Used Nissan Sentras in New York still more cost-effective than newer models

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Posted in Nissan

Taking a look at the 2010 model, one may be tempted by lower manufacturing prices, but a used Nissan Sentra in New York is still likely to be the more affordable choice.

The automaker recently announced its pricing scheme for the compact sedan, with price reductions of every trim line, including $1,000 savings on the SE-R Spec V package which include larger alloy wheels and suspension improvements.

Thanks to depreciation, however, a used Nissan Sentra in New York is apt to cost thousands less than the model found in dealer showrooms this fall, with a cost differential of at least 20 to 40 percent based on some estimates.

Prospective owners could take a look at the 2006 model which was “one of the fastest economy cars in the market” in some trims and included many features available standard in base models, according to an Edmunds.com review.

Easy to operate and “nimble handling” characteristics could prove attractive as well, according to the website’s editors. The sedan also offers similar horsepower and engines to buyers who may have been considering newer models instead.

Guerilla advertising campaign could inspire purchases of used hybrid cars in New Jersey

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Posted in Chevrolet, General Auto News

Users of some online video watching services like Hulu and other media may have recently seen an advertisement where an anthropomorphic electric outlet smiled at a 23, with 8-11 flashed underneath. The company behind the commercial recently revealed the explanation, and it could spur interest in used hybrid cars in New Jersey.

General Motors said that the 23 and the plug actually represent 230, the miles per gallon that the 2011 Chevrolet Volt is expected to get when it is tested by the EPA.

There happens to be a slight catch for anyone looking to drive the car for any great distances, however.

“The key to high-mileage performance is for a Volt driver to plug into the electric grid at least once each day,” said Fritz Henderson, GM’s CEO.

What that means is that the car will have to be charged every night, and can only run 40 miles before the gasoline generator kicks in, according to the company.

Buyers looking for a fuel efficient car that maintains efficiency over a longer period may want to take a look at a used Toyota Prius in New Jersey, instead, with models offering better than 50 MPG and no tethering to outlets.

Struggling automakers’ finances could affect future supply of used cars in New Jersey

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Posted in Auto Industry News, Chrysler - DO NOT USE

The government currently has a stake in both Chrysler and General Motors, and while they are optimistic that GM could go back on the stock market by next year, the continuing troubles for both firms could affect the supply of used cars in New Jersey.

A reduction in sales for the past year has led to both companies cutting down on production of new cars, and White House officials say that General Motors may be able to even break even this year, if the industry as a whole can sell 10 million cars, according to BusinessWeek.

Demand could increase for used Chrysler cars in New Jersey, because “[the firm] is undertaking a remarkable transformation, but it will take time for new vehicles to come out,” Ron Bloom, a senior adviser to the White House, told the magazine.

If the $65 billion already given to the automakers doesn’t provide them enough stability to remain solvent, the Obama Administration will not recommend future financial aid, according to a New York Times report.

Neither will auto parts suppliers, which some analysts have said will go bankrupt because of reduced demand for new cars, noted the newspaper.