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.

The latest versions of the G sedan and coupe will be available at dealerships the day after the presidential election, on Nov. 5.  Who knows if this is intentional or not, but if you’re excited about the new president, you might want to consider going out and buying an upgraded G37, which starts at $33,250 including new car warranties.

The largest change that comes with the sedan is its new 3.7-liter V-6 that puts out 328 hp, which was shown in the 2008 coupe.  Both will see an upgrade on the transmission, with an adaptation of the seven speed that was seen in the new FX35 SUV.

The sedan will persist with an AWD model, while the coupe will get AWD for the first time.  Both models will have a starting price $1,000 greater than last year.  The sedan will experience a minimal price bump, but many consumers may wonder if the new transmission in the coupe is worth the added cost.

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.

The current reality for the auto industry isn’t at all bright.  The economy of the country has experienced a weak dollar, a credit crisis, and soaring gas and food prices. And, this is going to be the worst year for car sales in over a decade.

But carmakers are getting smart.  They are building more passenger cars.  In the past pickup trucks and SUV’s generated a lot of profits, but now people want small, thrifty cars.

General Motors admits that they are counting on sedans to save them this year.  The company has made a shift to cars, with less emphasis on SUV’s and pickup trucks.  Even though GM wants to maintain their market in trucks, they realize that they need to get better with cars now.

Chrysler LLC is promising to take an “aggressively conservative” approach in their company.  This means that they will eliminate various models such as the PT Cruiser, Durango, and Pacifica.

US carmakers are trying hard to make sure that domestic sales don’t fall lower than projections say.  Even though it is a tough market, Americans love cars and will continue to buy. Motorists are making smarter choices by purchasing small, efficient cars.  This allows them to put money towards other necessities, such as new car warranties and maintenance.

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.

Volkswagen and Audi have had a great deal of success with their personal version of the BorgWarner’s transmission that is dual-clutch.  Now, BMW has added a seven-speed transmission that is double clutch, coming out later this year, so Audi had decided to up the game by raising its gear count.

According to Autocar magazine, Audi will debut an S-tronic gearbox that is seven-speed.  This is supposed to be used with the quattro that is four-wheel-drive.  The gearbox is so high-performance that it can handle torque output up to 406 lb-ft.  It is along the same line as the current box that Audi has, and BMW’s newest one.  There are two clutches that are continuously acting.  Alternating gears are pre-selected allowing the transmission to shift within hundredths of a second.

Audi is introducing this gearbox at the Beijing auto show.  It is installed in the Q5 crossover.

New technology is great for consumers, yet motorists should protect themselves with new car warranties in the event that technology would fail.  Drivers should never chance being unprotected in the case of a breakdown.

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.