In 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.

One 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.

The reliability ratings for Ford had a significant jump, which makes it the most reliable American carmaker, according to Consumer Reports, which just released its ratings.  The reliability ratings can be found in the December issue of the magazine.  Other than a few of Ford’s pickup trucks, Ford’s reliability is comparable to that of the Japanese carmakers that are the best, however consumers should still purchase an auto warranty in case of unforeseen expenses.

Other carmakers that received the highest ratings went to the usual winners, including Toyota, Honda, and Nissan.  Toyota received below-average ratings last year for the V-6 Camry and Tundra, however now all of the 42 Toyota, Lexus, and Scion models had ratings that were average or above.  After several years of experiencing trouble, Nissan’s Armada and Titan and Infiniti’s QX56 had improved ratings, which now are average.  Kia and Hyundai also got rankings equal with the best Japanese carmakers, with Kia making a 12 spot jump in one year.

American carmakers need to make improvements in reliability so consumers will purchase American made cars, and Ford has now achieved this.  Consumers are very concerned with safety and reliability and are purchasing cars with the best ratings.  Motorists are also protecting themselves by purchasing new and used car warranties.

GM’s financing arm recently made a decision to give loans only to consumers with the best credit. This is due to the tightening of the credit market and unstable economy. Only car shoppers who have a credit score of at least 700 will qualify to get a loan for a car.

The state of California has made it known that it is against the GMAC’s decision, claiming that it will rule out 40% of Californians from getting a car loan, which will result in many dealerships having to file for bankruptcy.

The president of the California Auto Dealer Association wrote to GMAC CEO Alvaro de Molina warning that these strict guidelines would result in disaster for dealerships. GM already suspects that dealer profits will drop 18% for the year.

Although California’s dealers have been the first to point it out, the new lending rules by GMAC will most definitely have an impact all over the country. In fact, many consumers will be holding onto their current cars and purchasing used car warranties, because they won’t be able to get car loans.

Very few people who purchased a Chrysler Sebring actually went for the option of all-wheel-drive. In fact, just .7% of people who bought Sebrings opted to buy AWD, probably because it makes the sticker price go up drastically, and decreases fuel-efficiency.

This has made Chrysler rethink the situation and it has announced that AWD will be dropped from the Sebring, as well as the Dodge Caliber and Dodge Avenger, which brought in only 1.5% and 4.4% of car shoppers into adding on the option, respectively. You will notice the change taking effect for model year 2009.

Dealerships were having a hard time selling AWD models that began at $26,000, however Chrysler may be wrong about the number of motorists who think AWD is a “must have” is negligible. For instance, Subaru’s lineup that is all-AWD is experiencing record sales and crossovers with AWD are still popular.

Although many people are opting to hold onto their old vehicles and purchase used car warranties, there are still those people out there who want to buy new. And yes, some motorists are still considering cars with AWD.

If you’re looking to buy a cheap used vehicle, you might want to look on the Interntet.  One website that is a great place to start is Car-Auction.com.  This is an auction website featuring seized vehicles by the government.  Consumers can select what type and model of vehicle you are looking for, as well as the price.  Results will appear within a few seconds.  This is a lot more convenient than attending an automobile auction and waiting to see if the car you want is up for auction.

When you are looking to buy a cheap used vehicle follow these simple tips.

The most difficult part of the process is finding a quality car that you would like to purchase.  People make the mistake of buying a car because they like the way it looks.  You need to get the full history of the vehicle before making an agreement.  Also, get the VIN of the vehicle and do a search of the number through a local agency.  You want to get the vehicle inspected by a professional.

An online auction is a great place to buy a used car. However, beware.  To protect yourself, do your homework to get a good buy and make sure to purchase used car warranties.

Satellite navigation devices, or the popular GPS interfaces that many motorists have in their vehicles, are, partly responsible for a large share of accidents and driving practices that are risky.

With about half of the motorists on the roads having access to devices such as these in their vehicles, it appears that this technology has penetrated the market.  Drivers who have satellite navigation devices are much more likely to be involved in a minor accident or risky behaviors.  In fact, 1.5 million say that they have engaged in sudden maneuvers, and approximately 5 million admit to going against the flow of traffic.

GPS systems fall into the same category as other car distractions, such as cell phones, kids, the radio, or passengers.  This might be one of the reasons that road safety campaigns say that ‘Good Drivers Just Drive’.

Drivers should pre-plan their trips in order to avoid distractions by GPSs.  In addition, drivers should protect themselves by purchasing used car warranties, and avoiding other in car distractions.

Chances are at one time or another you have been told that you need new shocks and (or) struts.  After being quoted a large price, you might find yourself thinking, “Can I get away without replacing them and are they covered under used car warranties?

Your shocks and struts serve two functions in your car.  Some cars only have struts, and some only have shocks.  Their purpose is to dampen the oscillation of springs and assist in ride control.

If your shocks and/or struts are worn, your suspension parts and tires will wear out sooner.  This is why it is important to take your vehicle in for preventative checkups.  It is a good idea to have your mechanic look at your shocks and struts every time you get an oil change.

There are several warning signs that might tell you it is time to replace your shocks/struts.  First, you might notice leaks on the housing or dents on the strut body.  Also, you might see high and low worn spots on your tires and pitted piston rods.  Finally, you may have rubber bumpers that are crushed from bottoming out.

It is important not to cut corners when dealing with your shocks/struts.  It is essential that these parts function correctly for handling and cornering.  Purchasing an auto warranty is a good idea for motorists in order to avoid unnecessary repair costs down the road.  After all, you never know when your car will need maintenance.

You may think it is difficult to find a reliable car for a good price; however, a used car may be your best option.  There are hundreds of pre-owned vehicle models that offer good reliability.  Many of these also prove to be affordable, fuel-efficient and safe.

Cars with improved reliability have made pre-owned an appealing option.  Another good thing about purchasing a used car is that the depreciation impact is reduced.  Also, insurance rates are usually less expensive, and it is easy to find used car warranties.

According to the Consumer Reports “Best of the Best” car list, certain cars have showed good performance in road tests and have been above average in reliability for several years.  This list includes models from BMW, Honda, Buick, Infiniti, Mazda, Lexus, Nissan, Porsche, Toyota, Volvo, Acura, Pontiac and Subaru.

Their “Worst of the Worst” list includes vehicles that have had several years of below average reliability.  These models include Oldsmobile, Pontiac, Volkswagen, Dodge, Kia, GMC, Jeep, Land Rover, Chrysler, Chevrolet, and Mercedes-Benz.

Consider buying a pre-owned car that has proven reliable for several years.  Also, buy an auto warranty to protect your investment so you can have peace of mind.

The number of vehicle repossessions has gone up drastically this year, which is about to top 1.9 million, which is a significant jump of 15% since 2007. Chances are that a large number of those vehicles were large SUVs and trucks or luxury cars that mortgage brokers purchased when they thought the good times would keep on rolling forever.

Now that the housing bubble has popped, the large monthly payments and gas costs are practically unaffordable. People are opting for used cars with used car warranties and staying away from new cars. Unlike many other lenders, carmakers can’t really be blamed for giving out loans that are risky. Borrowers who have great credit scores are having their Mercedes’ yanked away, just like the people who got Honda Civics.

This is terrible news for carmakers, as if they haven’t had enough, because for a repossessed car the average loss is around $10,000. Then the repos that have been heavily discounted end up on dealership lots and give the small amount of car shoppers out there a good reason to buy a discounted repo with the addition of an auto warranty, instead of a new car.