The pre-owned vehicle retailer CarMax Inc. had a plunge of 55% in fiscal-first quarter net income.  This announcement weighed heavily on carmakers because it created additional concerns about the rapidly shifting trends of consumers.

The pre-owned retailer, of Richmond, VA claims that there was a 25% decline for SUVs and trucks for the quarter ending late in May, which was way above what the depreciation was expected to be for the whole year.  This is due to motorists’ reactions to the weak economy and high gas prices.

CarMax shares saw a decline of 11% at the 4 p.m. N.Y. Stock Exchange composite trading.  In addition, GM shares dropped 5.9%, and Ford shares declined 5.8%

According to the Chief Executive of CarMax, this depreciation has lasted longer than any other segment that they have seen, and prices are sure to continue falling.

Large vehicles have been U.S. carmakers’ main sales source in the past, yet now they have to scale back on production in these segments and introduce more fuel-efficient cars.

Consumers are being hit hard by the economy and high gas prices; therefore, they are looking for small, fuel-efficient cars.  Some motorists, however, are deciding to hold on to their current vehicles and purchasing used car warranties so that they don’t have to buy a car for a while.

With fuel prices over $4 per gallon, motorists are looking a little more closely at used cars. The National Automobile Dealers Association reports that last year the average cost of a used car was around $15,000, while it was $29,000 for new vehicles.

While you want to purchase a pre-owned car that has a solid reputation for dependability, it’s even more beneficial to purchase a used vehicle that consumers find less popular, because it has already depreciated rapidly.

Many people believe that the best new vehicles make the best used vehicles, which is true in general. However, often these cars depreciate at a slower rate, which makes them popular as new vehicles, but means they cost more as used vehicles.

According to Kelly Blue Book, the car brands that depreciate the slowest are Mini, Scion, Volkswagen, BMW, and Honda.

Instead of purchasing those models, consider other brands that have high reliability scores, but depreciate more quickly and can save you thousands of dollars. Domestic brands are good to consider, such as Dodge, Ford, and Chevrolet. These will get you a bargain.

If you’re looking to save money by buying a used car, consider depreciation. You can get a good bargain by purchasing reliable, more rapidly depreciating models, and buy used car warranties to give you peace of mind.

Sales of crossovers are one of the strongest segments in the auto industry. What exactly is a crossover? A crossover combines attributes from both SUVs and minivans with the positive characteristics we enjoy on passenger cars.

Crossovers typically have the cargo room and passenger space that you find in minivans, yet add the utility, usefulness, and even all-wheel-drive systems that you find on SUVs. All of these attributes come with the smooth ride, easy operation and secure handling of passenger cars. Basically, crossovers are built to be a combination of the best of all worlds. In addition, most crossovers come with a good auto warranty that gives drivers peace of mind.

Consumers who purchase crossovers have a variety of different interests and activities that call for a flexible, practical car with varied features. Crossover owners like to be ready for anything and everything, and they expect the same from their vehicle.

Other crossover owners are motorists who need to be able to carry more than four passengers, but they don’t want the image that goes along with the minivan, and they don’t want SUVs because of gas consumption and clumsy handling.

The crossover segment of the auto industry is becoming more and more crowded, with new vehicles coming out rapidly. These vehicles offer consumers versatility, reliability, and new car warranties. What’s not to like?

Gas prices of more than $4 per gallon have motorists all over the nation looking for fuel-efficient vehicles.  They’re swarming pre-owned car lots, posting online ads, and keeping a close eye on classified ads.  People would rather purchase small used cars with used car warranties, than buy new gas-guzzlers.  The vehicles of choice are the Honda Civic and Accord, Toyota Corolla and Camry, and Ford Focus and Fusion.

These cars are loved for their fuel-efficiency and reliability, and are now drawing higher offers than their value in the Blue Book.

Some sellers of these cars have reported bidding wars that would have new car dealers feeling green with envy.

The movement from big SUVs that guzzle gas to fuel-efficient cars is rippling throughout the nation in the auto industry.  This week, the Toyota Corolla and Camry unseated the Ford F-150 pickup truck as U.S.’s best selling vehicle for the first time ever.  And GM reported on Tuesday that it is going to close four of its plants that make SUVs and trucks.

According to a recent report, new car shoppers could do a lot more to ensure that they get the best deals on insurance, financing and new car warranties.

Only 64% of motorists said that they would ever attempt to negotiate the price of a new car.  Also, when planning on trading in their current vehicle, over 2 million drivers said they wouldn’t even take the time to research the current value of their vehicle.  In addition, more than 30% of motorists admitted that they probably wouldn’t even take one hour to research how to pay for their new car.

Unfortunately, 91% of car shoppers couldn’t explain what the term ‘lease purchase’ meant.  This is a term used in many auto-financing deals.  In addition, 50% of shoppers said that they would make a new car purchase without any insurance quotes.

America is known for being a nation of bargain hunters, yet motorists seem to be falling short when it comes to buying a new car.  It’s essential for car shoppers to do their homework when looking to purchase a new vehicle.  Insurance, financing, and an auto warranty are a crucial part of the car purchasing experience.  So, it is important to shop around in order to get the best deal, otherwise you will find yourself paying for it.

It is more important than ever to stretch your dollar with gas getting close to $5 per gallon.  However, you don’t need to sacrifice comfort, safety, or reliability due to fuel-efficiency- especially with the Kia Spectra.

The Spectra comes with a 10 year, 100 mile auto warranty, and has safety features that outshine other cars in its class.  People know that with the Spectra they are getting superb gas mileage, reliability, and one of the best new car warranties in the business.

Despite the small appearance of the Kia Spectra, it actually has a large amount of room in the interior, and more horsepower than other models, such as the Corolla.

For those concerned about the safety of the Spectra, they won’t be disappointed.  It earned five stars for the front crash safety rating by the National Highway Traffic Safety Institute.  It has full-length airbags, and side curtain airbags for protection.

You shouldn’t have to make the choice between eating and filling your fuel tank, and with the Spectra you don’t have to do that.  Not only do you get great gas-mileage, you know that you have an auto warranty for peace of mind.

Many people agree that they would buy domestic cars over foreign cars if they were made better. Well, the 2008 Chevrolet Malibu could be the car that has more people buying domestic.

The Malibu can be compared to the Toyota Camry, which dominates the midsize sedan category of cars. GM has designed the Camry to be very close to the Camry in its measurements. This includes the length, trunk size, interior space, and engine displacement. However, these cars differ in style, in which the Malibu excels. In fact, the Malibu mimics cars that are more expensive, such as the Corvette.

It’s clear that GM put their money into the interior of the Malibu. It has comfortable seats covered in leather or an expensive fabric. Also, rear passengers will appreciate the large amount of legroom that the scalloped backs of the front seats provide.

The new Chevrolet Malibu also handles well. It takes curves flat and accelerates quickly, making it competitive in its class. The V6 252 hp allows for fun when needed, yet performed its job well on standard driving.

You can purchase the basic Malibu for $19,995, or get the LTZ for a little over $26,000. Also, this car comes with new car warranties that will protect drivers from unnecessary repair expenses down the road.

With the soaring gas prices and slumps in sales, carmakers are offering some of the biggest financing deals and cash incentives in years.  Check out these great deals complete with new car warranties, because they won’t last forever.

The 2008 Dodge Caliber is listed at $14,320-$22,705, but this month you can get it for even less.  The rebate is for $750-$1,500 cash back or financing that starts at 0%.

The 2008 Chevrolet Cobalt is a compact that will get you 33 mpg on the highway.  You can save big on the MSRP of $14,410 with 0% financing for 60 months or $2,000 cash back.

GM is trying to keep the 2008 Pontiac Vibes flying off the lot by updating rebates since May.  Now you can get low financing or $2,000 cash back with this comfy compact car.

You don’t see new vehicles for $10,000, but with a $2,000 rebate on the $12,895 Kia Spectra, this is what you will see.

There’s nothing like the feeling of owning a new vehicle, complete with an auto warranty and reliability.  Now is a great time to take the plunge if you’re thinking of buying a new car because incentives won’t last.

The perks of purchasing a used car are the low initial price, property taxes, and insurance costs.  The “downs” are that it isn’t new, which means there’s no auto warranty and you are more vulnerable to car problems.  However, you can reduce your exposure to risk by taking these precautionary measures.

First, shop for used vehicles that are newer, which might still have a portion of their new car warranties left.  Most late model cars have three-year/ 36,000-mile basic auto warranty coverage, so you could get a year of coverage if you look for cars less than three years old.  Otherwise, you should purchase an auto warranty to cover your used vehicle.

Next, check the background of the make and model car that you are looking at.  Go to the National Highway Traffic Safety Administrations website to check out recall and safety information.  Also, it never hurts to take a look at Consumer Reports to see if the particular car you like is problematic.

Also, you should always have a mechanic look at the car you are thinking of buying.  This will let you know if the vehicle has been well maintained or has any major problems.

Used cars are a great option for people who don’t want to pay for the instant depreciation associated with new cars.  Just make sure to protect yourself by doing your research and purchasing an auto warranty.

It’s apparent that the auto industry in America is becoming “greener” than ever. Everywhere you look there are ads for fuel-cell technology, hybrids, Bio-diesel fuel, clean-diesel engines, and E-85 fuel. These technologies have gained popularity with America’s Big Three automakers.

Why? Automakers are feeling pressure from all directions, including the White House, Congress, and also consumers.

Ford Motor Co., Chrysler LLC and General Motors have been trying to catch up with foreign cars, such as the Toyota Prius. The Prius has gained popularity because of the hybrid technology it offers, its environmental benefits, its cool styling, and all with the addition of an auto warranty.

The Big Three carmakers are closing the gap. General Motors already offers 14 Flex Fuel car models, which run on E85, and 2 million of them are on roads already. In addition, GM is going to bring 12 hybrid cars to the auto market within the next four years. Also, Ford has the Escape Hybrid and the Mercury Mariner Hybrid. Perhaps the biggest buzz though, is about the Chevrolet Volt, which will allow drivers to travel 40 miles on an electric motor.

U.S. carmakers are on the mission to catch up with foreign automakers, putting out effective green technologies complete with style, safety, and new car warranties. Their goal is to have several different technologies to meet the needs of all consumers.