Auto Warranty News | Auto Warranties – car-warranties

Tag Archive


How Long Will It Take For America To Go Hybrid?

images-66.jpgImagine one day waking up to find that the only vehicles on the roads, in driveways, and in parking lots were electrics or hybrids.

CNW Marketing Research made some calculations to determine when America would become completely hybridized, and could stop depending on Middle Eastern powers for barrels of oil.

Based on the amount of people who live in America today (300 million), the number of cars driving on U.S. roads (11 million), the number of new cars that are sold in a year (15 million), and the number of those purchased cars that are hybrids, CNW calculated that in 2034 there is going to be:

• 357 million Americans
• 381 million cars, all hybrid or electric
• 15.7 million cars written off
• 18.1 new cars sold that are all hybrid or electric

It may seem like a long timetable, but it’s not unreasonable when you consider that every car being built and sold would have to be a hybrid, and every car on the road would have to be replaced with a hybrid vehicle. Also, many people are holding onto their old vehicles and buying used car warranties because of the poor economy, so that is slowing things down.

Teens Are Having To Settle For Less Expensive Cars

images-74.jpgThe economy isn’t just hurting Mom and Dad, teenagers, who are being told they have to pick up more of the tab on a new car purchase, are having to settle for less than in the last few years.

Gas prices have also caused a shift in the kinds of cars teens are purchasing, as they are now responsible for more of the gas tab than in the past. In addition, more people are protecting themselves with an auto warranty.

Approximately 400,000 new cars are bought for teenagers every year. Small and compact cars like the Ford Focus and Chevrolet Cobalt account for 24% of teen sales this year, which is up drastically from just 15% one year ago.

However, compact SUVs, such as the Jeep Wrangler, account for around 24% of all cars purchased for teenagers this year, but that’s drastically down from 33% of sales a year ago.

According to a study by CNW Marketing Research, it was discovered that teens are purchasing more low-end models thanks to the economy. The average transaction price in 2008 is $16,000, which is down from $19,200 in 2007. Also, more people are concerned with new car warranties to protect themselves from unnecessary repair expenses down the road.

Will American Drivers Skip Car Amenities To Save Money?

images-34.jpgConsumers have been more concerned than ever about saving money on their vehicles.  They are doing everything from purchasing small, fuel-efficient cars, to purchasing an auto warranty to ensure they don’t pay unnecessary repair expenses.  But are they willing to skip the amenities that come in new cars, such as air conditioning, an automatic transmission, and power locks and windows, to save money?  And are stripped cars even available?

The truth is that it can be hard to find a car stripped with crank windows and a manual transmission.

According to JATO Dynamics, 89% of vehicles sold in America last year came standard with automatic transmissions, which is up from 85% in 2003.  Also, power locks came standard on 87% of cars sold, compared to 80% in 2003.

The vehicles that offer these features as optional tend to be on small cars, yet economy-car buyers usually pick convenience and comfort over cost if given a choice.

For example, the cheapest model by Toyota is the Yaris, which begins at $11,550 for a 2008 base model hatchback with air-conditioning.  However, approximately 80% of Yaris buyers choose to pay an extra $900 for an automatic, and about 60% opt for a power windows and locks package, which costs an extra $1,680.

It appears that features, such as air conditioning, and automatic transmissions are necessities that most people aren’t willing to live without, just like new car warranties.

The NHSTA Gives The 2009 Hyundai Genesis Five-Star Scores

images-17.jpgThe 2009 Hyundai Genesis has received nothing but praise by everyone who has driven it.  This car comes at a great price with a large auto warranty and can hold its own with the BMW 5 Series and Mercedes-Benz E-Class.  Now it has also received a seal of approval by the National Highway Traffic Safety Administration, getting five-star crash-test ratings across the board.

The Hyundai Genesis actually received something that the BMW and Mercedes weren’t able to achieve- five stars in both side-impact and frontal impact crash tests.

According to John Krafcik, who is the V.P. of Strategic Planning and Product Development at Hyundai, the five-star results that the Genesis received are just one indication that Hyundai engineers are dedicated to safety.

Krafcik is making reference to the rigid body structure, active head restraints, and eight airbags in the Genesis.  Also included in the airbag count are rear side-impact airbags, which are uncommon for a vehicle costing $30K.

The five-star ratings by the NHTSA are just one added selling point to a vehicle that has lots going for it, such as a good price and new car warranties, as well as a great ride and look.

Chrysler Attempts To Sell Its Dodge Viper

images8.jpgIt’s no secret that Chrysler has been experiencing some recent struggles. The car company is seeking ways to turn things around and move forward in a very difficult time for automakers. According to the Detroit News, their latest move is to try to sell its Dodge Viper brand.

The Dodge Viper has always been a stylish luxury sports car, however it hasn’t ever provided big business for Chrysler. This is especially true now, when consumers are mostly interested in protecting their wallets with small fuel-efficient vehicles and new car warranties. The Detroit News says that the automaker is making an attempt to “refocus” on its “core business.”

It’s speculated that the Dodge Viper could get around $50 million for a foreign automaker as a hobby brand. Overall, this won’t affect the car-buying population, but dedicated enthusiasts of the Viper will find this to be a grim picture of the future.

New Fuel-Efficient Turbo In The Mazda Kazamai

images-25.jpgThe new Mazda Kazamai debuted in the 2008 Moscow auto show today and was highly impressive with its wildly futuristic style.  A turbocharged four-cylinder engine that Mazda will also use in production models as soon as 2011 powers the car.

The engine is based on the one in the CX-7 crossover; however, Mazda claims this one will improve mileage up to 30%.  A four-wheel drive CX-7 currently gets 17/23 mpg, which means a 30% increase would bring those figures to 22/30 mpg.  This is better, in terms of highway mileage, than any other SUV that is a non-hybrid on the market.  Also, the CX-7’s current engine is a ton of fun to drive.  It is expected that this new turbo engine, and a next generation six-speed transmission will make it to other models, such as the new Mazda 6 and maybe a future edition of the Mazdaspeed3 performance hatchback.

This move is following a trend that has been seen before, where it is possible to add existing technology, such as turbocharging, to gas engines in order to greatly increase mileage.  Increasing mileage by 30% in three years is very impressive.  Mazda is listening to consumer demands for more fuel-efficient vehicles with new car warranties.  Their turbocharged four-cylinder engine will be utilized in many vehicles.

Ford Will Convert A Michigan Truck Plant

images7.jpgFord Motor Company is making a move to wean itself away from light trucks. In fact, it will use $75 million in order to convert an SUV factory in Michigan to manufacture cars.

The truck plant is located in Wayne, Michigan, which is a Detroit suburb. Ford will begin working on the conversion in early November, and will begin production of a small car that is unspecified in 2010, according to a Ford statement.

The equipment that has been used at the plant in Wayne to manufacture Navigator and Expedition SUVs will be transported to another factory located in Louisville. This plant currently builds F-Series Super Duty pickup trucks, but will also manufacture the SUV models, starting in the second quarter of 2009.

The factory in Michigan is one of three plants in North America that will be retooled to make fuel-efficient cars. This is under the plan by Chief Executive Alan Mulally to put an end to approximately $23.9 billion in losses since the year 2005. Due to high gas prices, light trucks have been down 19%, and they account for 63% of the 2008 deliveries for Ford. Consumers now want to protect their wallets by purchasing small, fuel-efficient cars with new car warranties.

General Motors Improves Used Car Warranties

images-15.jpgGeneral Motors recently announced that it is extending an auto warranty offer on its certified used trucks and cars, citing quality gains and less auto warranty-funded repairs.

GM claims it will begin to offer a 12-month, 12,000-mile auto warranty that is “bumper to bumper” on all certified used trucks and cars that are eligible for the coverage by GM dealers.

This change will start September 13, and will extend the terms of the GM auto warranty on late model used vehicles in good condition an extra 9 months and 9,000 miles.

This step comes one day after an announcement by GM that it is putting out a new discount program on new trucks and cars that will provide employee-level pricing to new buyers.

GM, as well as other U.S. carmakers, has been arguing that their quality improvements in their vehicles have long been ignored by American consumers.

In response to this, the Big Three have offered more generous used car warranties over the last few years in order to gain consumer confidence.

V-8 Engines Are A Thing Of The Past

images6.jpgThe legendary and powerful V-8 engine is finding its place in history, because very few new cars are using it, according to U.S. car industry reports.  Consumers want to protect themselves with fuel-efficient vehicles that have an auto warranty, and aren’t purchasing vehicles with V-8 engines.

The majority of carmakers are deciding not to put V-8’s under the hoods of family vehicles, USA Today stated in a NY report.  The V-6’s are also losing popularity and people are instead deciding to purchase vehicles with the V-4.  In fact, observers claim that the V-8 in particular isn’t politically correct anymore.

Carmakers who are choosing to introduce new V-8s are tending to confine them to high-performance sports cars, trucks meant for towing, and several premium cars.

New vehicles that are planning to be equipped with a V-8 engine include the Cadillac CTS-V, the Hyundai Genesis, and the Dodge Challenger.  Carmakers are making it a point to stress the fact that the newer V-8s are much more fuel-efficient than in the past.

However, GM is discarding the eight-cylinder engine from next year’s 2010 Cadillac SRX crossover and Ford won’t be offering its Lincoln MKS sedan with the V-8.

Consumers are opting for cars with smaller engines that have new car warranties in order to protect their wallets.  V-8s are finding their place in history.

Honda Is Ready For The Changing Car Market

images-82.jpgOther carmakers are scrambling to downsize their car lineups, yet Honda Motor continues to restock its current lineup of small vehicles that are fuel-efficient.

Honda is the most popular car company in the U.S., and its success will continue to grow with the introduction of a new updated version of the Honda Fit subcompact today.

The current version of the Fit has experienced a sales increase of a staggering 79% this year due to the trend for consumers to steer clear of large vehicles that guzzle gas.

And with the new Fit, which gets 34mpg/highway and comes with an auto warranty, Honda continues to polish its sparkling reputation as the carmaker that is best able to capitalize on an auto market that is changing rapidly.

Sales in the U.S. car market have dropped 11% this year, and yet Honda’s sales have gone up 3%. To compare, GM has had sales decline 11%, Ford Motor has declined 14%, and Toyota has dropped 7%.

Honda’s success can be explained in simple terms. When all other automakers, including Toyota, shifted to trucks, Honda resisted and stuck with their formula. Consumers are looking for small, fuel-efficient cars that are dependable and come with new car warranties, and Honda delivers. With the current economy people aren’t taking risks on gas-guzzlers.



1-800-419-3499
Fax 1-800-615-0366
E-mail: info@autowarranties.com