Do you find that you are apprehensive about negotiating with an auto dealer?  Shopping for a vehicle doesn’t have to be nerve-racking, however, you need to be aware of a few things that you shouldn’t say to a dealer.

First, you shouldn’t start talking about monthly payments, instead focus on negotiating the purchase price.  It can become confusing when you’re discussing monthly payments because it might be unclear whether the payment is for 24 or 36 months.

Don’t tell the dealer right away if you’re willing to trade-in your car.  If the dealer is aware of this he will know that you want to get as much money for your car as possible.  The dealer might agree to give you a lot for your trade-in, but usually it’s a smokescreen because then they will fix the price of the new car.

Don’t tell the dealer if you’re planning on paying for the car in cash.  They count on making a lot of money in financing, and if they know that they won’t be able to count on that money, chances are they won’t negotiate on the sticker price.

Do your homework before showing up at a dealership.  Be prepared with information about new car warranties, financing, and vehicle prices.  This will help you negotiate a successful deal on a car.

According to a recent study by J.D. Power and Associates, there is a great amount of interest in hybrids and alternative fuel vehicles.  In fact, less than 25% of people asked revealed that they would only consider purchasing a car powered by gasoline.

However, there are some misconceptions.  Motorists who purchased a hybrid car expected that they would get a fuel-economy improvement of approximately 28 mpg if compared to a gas-powered vehicle that was similar.  However, in reality, people who bought hybrids only gained an improvement of 9 mpg.  People who bought diesels were similarly disappointed with a 12-mpg improvement, when they actually expected to improve 21 mpg.

A big challenge for vehicles with alternative powertrains is the unrealistic fuel-saving expectations that consumers place on them.  Especially with hybrids, the actual fuel performance of the car doesn’t usually live up to the EPA estimate.  Consumers need to educate themselves about such things as the benefits of technology, maintenance and new car warranties.  Being able to manage consumers’ expectations and lowering the cost of alternative power vehicles will help these cars gain acceptance.

New teen driving laws have now taken effect, which will help teens sharpen their driving skills.  During the first driving year, teens won’t be able to drive late at night or carry multiple teenage passengers.

The Department of Public Safety claims that teens in Minnesota are overrepresented in car accidents every year because of distractions, driver inexperience, driving at night, and not using seat belts.  From 2005-2007, drivers who were 16 and 17 yrs old had involvement in 116 crashes that were fatal, which resulted in 133 deaths.

Having these laws will allow teen drivers to be safer and result in less injuries and deaths on roads in Minnesota.  Also, having used car warranties and maintaining cars will help teens stay safe on the roads.

The limitation on nighttime driving during the initial six-month licensure period will prohibit teens from driving after midnight, until 5 a.m., unless they are accompanied by a driver of at least 25 yrs of age.  Drivers who are 16 and 17 yrs old are approximately three times more likely to have a car crash resulting in a fatality at night than in the daytime.

The limitation on passengers for the initial six-month licensure period will allow just one passenger under 20 yrs old, unless there is a parent or guardian in the car.  Throughout the second six-month period of licensure, there can’t be more than three other people in the car under 20 yrs old, unless there is a parent or guardian in the car.

It is recommended by the DPS that parents help reinforce these laws and protect their children by making strict driving rules, purchasing an auto warranty, and keeping cars maintained.

Recently, 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.

The 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.

The 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.

Many 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.

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.

Well, 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.