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The EPA’s New Way Of Testing Benefits Drivers

images-9.jpgRecently, J.D. Power and Associates conducted a study, finding that now that the EPA has changed how it tests cars, motorists are finding that they get better mileage out of their cars than what was advertised.

Before the EPA decided to update its methods to reflect a more accurate view of modern driving conditions, motorists were consistently reporting that their combined average for fuel economy was less than the EPA rating advertised.

For example, before the update, back in 2007, motorists claimed that they got around 97% of the fuel economy that was advertised.  This was 3% worse than what was advertised.  And after the new standards for testing were implemented in 2008, motorists claimed they got around 105% of the fuel economy posted.

For drivers who are money conscious and calculate driving costs, such as insurance, used car warranties, and gas costs, they will have a pleasant surprise with their gas mileage.

Subaru Announces Pricing For The 2010 Outback

images-2.jpgThe brand-new 2010 Subaru Outback will be available late in the summer starting at $22,995, including new car warranties, with the addition of a $695 destination fee; that price is $700 more than the base price of the 2009 model.  The MSRP will get you an Outback that has a six-speed manual transmission.  If you want the continuously variable automatic transmission it will cost you $23,995.

The 3.6R Limited trim level, which is the top version, will begin at $30,995.  This will give you a 256-hp engine, instead of a 170 hp engine in the base, along with a standard five speed automatic transmission.

Other options include a Harman Kardon audio package that includes Bluetooth streaming, a moonroof for $995, as well as a $2,000 navigation package that is expensive but well rounded.  Of course, with any advanced technology you want to make sure to have a good auto warranty that will save you from costly repair expenses down the road.

EPA Estimates An Increase In Fuel Efficiency Of Light Cars And Trucks

images-42.jpgThe EPA is the arm of the government that is responsible for testing fuel economy, and its results are now posted on the stickers on new vehicles.  This is a different rating than the government’s CAFÉ numbers, which you might have heard about in Washington.

The real numbers by the EPA are predicted to go up an average of 0.2 mpg for 2009, compared to last year, the EPA claims, which will be about 20.8 mpg.

The final statistics won’t be in until later in 2009, but according to the EPA, these predictions demonstrate the fourth rise in a row in the average fuel efficiency of light trucks and cars.  In fact, trucks have actually had the largest impact of all.  Although their market share has gone down from 52% in 2004, to 48% in 2008, overall, their fuel-efficiency has gone up.

The figure of 20.8 mpg is the largest since the year 1993, and the EPA is predicting that the final number is going to be even higher because people have shifted to smaller cars.  Consumers are trying to protect their wallets by purchasing more fuel-efficient vehicles and new car warranties.

Is It A Good Idea To Trade In Your Car?

images-37.jpgMany people believe it is easiest to trade in your current car when buying a new one.  However, is trading the right choice for you?  There are some advantages and disadvantages to trading.

The big advantage to trading over selling is that you have very little hassle.  You don’t have to haggle with buyers and you get rid of your car quickly.  However, the fact is that you aren’t going to get as much for your car if you trade it in.

Any used vehicle has a specific retail value.  If a dealership is going to sell that vehicle, they will have certain expenses, such as fixing dents and scrapes, cleaning it, and just overhead costs of running their business.  Therefore, the dealership has to sell it for a little more than a private owner would.

Since dealers need to make a good profit on used vehicles, they purchase them for less than the retail value.  When the dealership takes a trade in vehicle, they are essentially purchasing it from the new car customer, and at a price below the retail value.  Essentially, this is called the trade in value.

Although trading in your car is easier than going through the hassle of trying to sell your car privately, you are going to get less money for your vehicle.  If you sell your vehicle on your own, you can put the extra money you get towards important things such as an auto warranty and maintenance costs.  And with used vehicles, used car warranties are a smart choice.

Why Is The Oil Industry Concerned With Demand Destruction?

images-36.jpgIn the oil industry there is an economic term that is quite sinister-sounding being thrown around: “Demand destruction.”

Demand destruction is when the price of a product is looked at comprehensively as too high, therefore causing demand to tank.

So, why would the oil industry be concerned about this?  Well, the fact is that since the summer of $4 per gallon gas, demand has continued to stay low.  American motorists have pretty much completely stopped purchasing cars that get low-mileage and have given up on large gas-guzzlers, even since oil prices have fallen drastically. Many motorists are just holding onto their current vehicles and purchasing used car warranties. People are still driving fewer miles, even as gas prices go down.

Whatever the cause may be of the summer’s oil spike, it seems that there is no going back.  The most solid sign of demand destruction is carmakers’ shift to vehicles that are more fuel-efficient.

It might just be that the most oil-hungry country in the world has finally had enough, or maybe OPEC and the oil industry are driving down prices again as quickly as possible, hopeful for one last hurrah.

How To Determine If A Used Car Is A Lemon

images-34.jpgOne tactic that people use to sell a pre-owned car is to detail it until it looks brand new.  However, beware, a motor that is steam-cleaned won’t fix a gasket that is blown.  This is why it is important to purchase an auto warranty.

Having said that, dealerships that are reputable typically won’t try to sell cars with big issues, for fear that they’ll have to fix them down the road.  If you test drive a vehicle that doesn’t make awful noises and feels pretty good, chances are it is fine.  Dealers don’t like to sell junky cars.

However, it is still a smart idea to have a trained professional take a look at your vehicle.  If the dealer claims the vehicle was inspected by it’s mechanic, request to view the paperwork.  If the dealer can’t produce them, make sure an outside technician sees the vehicle.

Also, it is important to check that the car has a clear title and that it hasn’t ever been in a big accident.  You can tell the dealer to go on Carfax or AutoCheck to confirm this.  Both of these sites have a fee to trace the car identification number for odometer and service registrations, and accidents.  However, often dealerships will check the vehicles on their lot free of charge.

Typically, it’s safe to buy a used car from a dealership; however, it never hurts to take these quick steps to ensure you don’t get a lemon.  In addition, used car warranties will give you peace of mind in case you need repairs.

Will Buying A Hybrid Save You Money In The Long Run?

images-33.jpgWell, it is obvious that hybrids are the wave of the future. Motorists are spending a lot of money on maintenance, new car warranties and financing, and need to save on fuel costs.  So, is it worth it to buy a hybrid to save money at the gas pump?  Let’s take a look.

To see how long it will take you to recoup your premium up-front, we can compare the Toyota Camry Hybrid to a typical Camry.  Because of the equipment level of the hybrid, however, it is necessary to compare it to the V-6 Camry LE.  The base prices of the cars are only $2,000 apart.  The Hybrid is $25,000 and the Camry V6 LE is $23,640.

According to Toyota, the Camry Hybrid gets 33mpg in the city and 34mpg on the highway.  The Camry V6, however, gets 21mpg in the city and 31mpg on the highway.

If you were to drive 15,000 miles in a year you will use about 454 gallons.  With the V6 LE you will burn approximately 635 gallons in a year.  If gas costs $3.20 per gallon, you will have a fuel cost savings of approximately $547 per year.  This means that you would recoup the premium up-front that you spent to purchase the hybrid.

In this comparison you can see that in the long run you will end up saving with a hybrid. In addition, you get the satisfaction of doing a service to your planet.

What Type Of Vehicle Is Right For You?

images-32.jpgToday, there are many options when purchasing a vehicle.  You can buy new, used or certified pre-owned.  However, many people just love the feeling of having that new car.  How do you know if a new car is right for you?

If you are one of those people who take great pride in the ownership of your vehicle, or have the first kid on the block syndrome, you should probably purchase a new car.  In addition to ownership pride, you will also be equipped with the newest car technologies, which will provide you with safety and comfort.  Also, new cars come with an auto warranty that brings owners peace of mind.

New vehicles also give back practical returns to those people who push their cars to the max and wear them out.  If you are logging a large amount of miles or hold onto a car for at least five years you should purchase the vehicle that you really want.  Also, if you are planning to customize your car with the transmission and engine, as well as other accessories and options to suit your style, you should buy new.

Let’s face it, there is no feeling like owning a new car and knowing that you aren’t inheriting any one else’s problems.  Buying a new car is a great way to go for people who have the funds.  In addition, new car warranties that come with new cars give you great peace of mind.

Ford’s New Hybrids

images-31.jpgIt isn’t surprising that Ford’s aiming the new 2010 Mercury Milan and Ford Fusion hybrids straight at the Toyota Camry Hybrid, but what is attention getting is Ford claiming that its sedan hybrids will outdo the city mileage of the Camry Hybrid by 5 mpg.  That would make the Milan and Fusion hybrids’ rating at 38 mpg.  Although there wasn’t a number provided for highway mileage, Ford claims that it beats the Camry Hybrid in this area as well.  The Camry Hybrid currently gets 34 mpg/highway.

The complete reveal of the Milan and Fusion hybrids is going to wait until the Los Angeles auto show, however Ford just disclosed a few tidbits today about the new sedans.

The Milan and Fusion hybrids will be the first hybrid technology use, besides the Ford Escape, Mazda Tribute and Mercury Mariner hybrids.  Battery technology has undergone a big improvement since the launch of Ford’s compact SUV hybrids.

Consumers are anxious for new hybrid technology and want to save money on such things as gas, new car warranties, and auto loans.  In this poor economy, people are looking for all of the financial relief they can get, including hybrid technology.

The Internet Brings Valuable Information To Motorists

images-301.jpgFor motorists who like to take things into their own hands, the Internet is the place to look for valuable information.  Consumers are seeking research online to aid them in buying a new automobile, finding out about car service, and finding a good auto warranty.

A new study shows that 74 percent of people who do research on service and parts say they are utilizing the Internet more now than two years ago.  In addition, 90 percent of motorists researching service information about automobiles say that the Internet influenced their purchase.

Customers who are well informed can do a good job of describing issues for potential repair when they visit their mechanic for maintenance.  However, it can be a problem when car owners try to do significant repairs by themselves because many times they make misdiagnoses on their car.  This can end up harming their car more.

For example, if a motorist replaces the alternator because the car is having trouble starting, when in fact the battery should have been changed, it could cost hundreds of dollars to rectify the situation.

It is good for consumers to use the Web to research about cars because it can aid their mechanic.  However, motorists who think they can fix anything could end up stranded somewhere.  At any rate, it is always good to have used car warranties to protect your wallet.



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