Premium German carmaker BMW AG announced Friday, that due to a drastic downturn in car markets in past weeks it won’t be able to meet previously intended targets for 2008.  This is after seeing a decline of 33% in second quarter net profit.  BMW also announced that 2009 is also going to be a very difficult year.

BMW’s announcement was a surprise to the markets, especially since they brought out their earnings statement early, by four days.  They claimed that a drastic slide in used car prices means that they aren’t able to make the necessary returns on the vehicles they lease and then sell.  Also, new vehicle sales are falling in markets that are key due to the weak economy, consumers spending less, and harder financing conditions.

This warning comes soon after the announcement by the big three U.S. carmakers, General Motors, Chrysler, and Ford Motor Co, that they were forced to offer less-generous and fewer lease deals because of the used vehicle market deterioration.  In fact, GMAC LLC has planned to cut back their leasing business by half.

Consumers are apprehensive to purchase cars because of the weak economy and high gas prices.  They are already shelling out money for auto loans, used car warranties, and maintenance costs, and don’t want additional costs.  Unfortunately, the auto industry is suffering.

We’ve all been there.  You’re driving along when all of a sudden you hear sirens blaring behind you.  You realize that you are going to get a speeding ticket and you really don’t have the extra funds to pay for it.  With all of the expenses you’re already paying for your vehicle, such as used car warranties, maintenance, and loans, the last thing you need is the added cost of a speeding ticket.  Well, never fear because the Trapster just may save you.

Pete Tenereillo of California invented trapster.  Essentially, this is a social network where motorists can use their cell phones to alert other drivers about speed traps that they have encountered.

All you have to do is sign up for a free membership at the website and then download the Trapster software on your cell phone.  Most of the latest cell phones, PDAs and Blackberries can accommodate this software.

After signing up, you’re ready to get out on the road.  If you come across a state trooper looking for speeders you hit “pound 1” on your cell phone.  This alerts other motorists when they approach the same spot.

This system is ideal because it’s “hands free”, which means it’s safe for drivers.  Also, sophisticated cell phones can allow a map to be displayed where the speed trap is.

It is essential for consumers to do their homework before trying to purchase a new vehicle.  To avoid unnecessary costs, follow these three important tips.

First of all, you need to shop around to find the best dealership.  To do this, use the Internet and read blogs that people have written about specific dealerships.  You will find a wealth of information just by doing web searches.  Many times, you will come across complaints or favorable revues about how a dealership operates.  Also, it is a good idea to contact three dealerships in your area to determine which one responds quickly.  This will give you an indication of good service.

Next, dealers will try to talk you into financing through them, but don’t do it.  Financing at dealerships typically isn’t the best deal you can find.  Save your money by finding financing elsewhere and use your extra money for a much needed auto warranty.

Also, don’t fall for buying an alarm system through the dealer.  Carmakers already install wiring in vehicles, yet they then sell alarm systems for approximately $1,200 separately.  They will tack this cost onto the price of the new car purchase.

Lastly, sell your current car yourself to save money.  Chances are you aren’t going to get as much money for it through the dealership.

Follow these tips to save big when it comes time to purchase a car.  Also, purchase new car warranties to protect your wallet down the road.

So, you’ve been researching cars and you know what’s out there.  You’ve gotten quotes from the Internet, and you know about rebates and used car warranties, yet you still haven’t found the right vehicle for the right price.  Don’t worry, there’s a car out there for you.  Follow these tips to get a good deal.

To save big get a car model at the end of the year before the new model is about to be sold.  For instance, a motorist bought a 2000 Honda Civic coupe late in the year, soon before the release of the seventh-generation Civic, which saved him thousands of dollars.

Another smart tactic to save on a used car purchase is to look at buying a rental car.  Most rental companies, such as Alamo and Hertz sell their vehicles.  Although their cars usually have high mileage, they are put through a rigorous maintenance schedule.  This will allow you to save approximately one-third of the cost of the car new.

Finally, consider looking at demo models from dealerships, which are often used for test drives.  These cars typically have very low-mileage and you can get a great deal on them.

Any consumer who is educated can get a used vehicle for a good deal.  By researching, and trying different options, you are bound to get a good vehicle.  However, when buying used, always protect yourself with an auto warranty in case of repairs that are unforeseen down the road.

If you’re thinking of buying a cheap car that is older, you might want to try Car-Auction. This is an auction site on the Internet for cars that have been seized. Buying a vehicle from this website can save you up to 90% off of the retail price of a car. Here are some important things that you should know before making a purchase on an auction site for seized cars.

First, make sure to do research to ensure that you’re actually going to get a fair deal. This is necessary because you are going to buy the car ‘as is’. Also, know that seized car auction websites don’t offer used car warranties, so make sure to purchase one somewhere else. This will allow you peace of mind about your purchase.

Also, choose a car that has its paperwork included. This will allow you to check the repair record of the car, safety ranking, as well as mileage, before you make the purchase. To find this information, look online or at consumer magazines.

If at all possible, test-drive the car first. This is the only way to get a true feel for how the vehicle runs. This will also give you an idea of what repairs, if any, may need to be made. This will give you valuable information when it comes time to negotiate.

Finally, don’t buy a car without an inspection. A mechanic who is licensed will give you information about the car that you couldn’t detect when you did the test-drive.

Purchasing a car from a seized auction website can save you a great deal of money. However, be cautious. Also, buy an auto warranty to protect your wallet. After all, you can’t always foresee when repairs will be needed.

The Toyota Prius is one of the most popular cars in the country. This is a bit surprising since the Prius is an electric hybrid vehicle, which means that motorists are embracing change. As with any change, drivers feel a need to protect themselves. A lot of motorists feel better about buying a hybrid if they purchase an auto warranty to accompany it. Innovators are always faced with the billion-dollar question of whether people will embrace or resist innovation. Luckily, Toyota has gotten it right, because thousands of motorists are purchasing Prius’.

Motorists who are used to driving a typical vehicle wouldn’t be able to get the Prius to travel forward. Also, people probably wouldn’t be able to figure out how to get the car in reverse. However, these are easy lessons for people to learn, they just have to be willing to change the way they think. You have to push a button located on the dashboard twice in order to start the Prius. To make the vehicle go forward or in reverse you just have to manipulate a stick that is on the dashboard.

People might be fearful of technology at first, yet it is also scary when people aren’t willing to change. However, it is always good for drivers to protect themselves. People should purchase new car warranties that will cover them in case of faulty technology.

As of August 1st new teen driving laws will take 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.

While most Ford dealerships reacted with joy after Ford Motor Co.’s announcement that they will be making six additional fuel-efficient cars in America, others greeted the announcement with caution.

If the marketplace shift is going to continue long term, then it’s going to be great to have small, fuel-efficient cars in the lineup.

However, it is impossible to predict how long this shift toward fuel-efficient passenger cars will last. It is likely that gas won’t continue to sell at $4.25 per gallon, but who knows how far down it will fall.

This same thing occurred in the ‘70s, and the reality is that America isn’t going to want to eliminate SUVs and pickup trucks forever.

Trucks are needed for construction companies, and therefore will keep being built. Will they become more fuel-efficient for the future? Of course, they are going to have to be.

If gas prices fall to $3 per gallon, customers could very well switch their tastes back to SUVs and trucks.

So, for now consumers are just trying to keep money in their pockets by purchasing small fuel-efficient cars with new car warranties, but as the economy improves and gas prices fall, that may all turn around.

What benefits come with purchasing a sedan?  Sedans will give you a balance of performance, handling, fuel-efficiency, safety and easy access.  Also, they handle well in the majority of driving situations.  Unless you are someone who needs to store a lot of cargo, they are a great option.

There are many different choices when looking at sedans.  You could purchase a large, small, family, or luxury sedan.  All of these categories are made up of many models that have different characteristics.  They have various balances of sporty, comfort, and practicality.

Fuel-efficiency varies greatly in different sedans.  Do your homework in this category to make a comparison of different models.

Sedans are equipped with various safety features.  All models that are new have dual front air bags for added safety.  Also standard is three-point seat belts and LATCH systems.  However, certain models also have side air bags and head protection bags.

Do your research to get the sedan that will fit you best.  Also, make sure to buy new car warranties for peace of mind.  Following these simple tips will give you the knowledge to make a good decision when it comes time to purchase a sedan.

Motorists have been able to enjoy car insurance rates that have been low for several years, but now that is all changing.

According to Insurance.com, which is a car insurance agency online, in Illinois and Missouri, rates went up 3.8% from April to June.

A vehicle owner in Missouri who paid $1,569 per year now has to pay $1,629.  A car owner in Illinois who previously paid $1,512 now has to pay $1,570.

Illinois and Missouri were two of ten states that have had the largest increase in car premiums, according to the study.

Throughout the nation, this was the second quarter in a row for rate increases, which shows the trend of steady or falling car rates has reversed.

Insurance companies must pay fixed costs, so when motorists can’t afford to sign up for policies, insurers have to keep their profits up by decreasing benefits, increasing existing customers’ rates, and increasing deductibles.  Consumers are already paying many auto costs, such as used car warranties, maintenance, and high gas prices, so high insurance rates are going to hit Americans hard.