June 6th, 2010
Fisker Motors just received funding to move forward with their prototype electric car. With Tesla Motors well on their way with close to a half a billion in federal funds, we have two major players in the mix. The domestic automakers are also staying in the mix with major hybrid offerings. Ford has the Ford Fusion and Chevrolet the Volt with Toyota moving hybrids into all their model lines. By 2012, we may see electric stations popping up to handle the surge in the electric movement. With gas prices projected to surpass $4 by 2013, electric cars may have a bigger opportunity since them most believe. Everything seems to be going green.
Categories: Automotive News
June 2nd, 2010
Said day for the long history of the Mercury brand, Ford announced it was shutting down production of the brand. Mercury dated back 71 years but with the current decline in automotive sales, it has seem it’s last days. The 2008 recession is still taking its toll on automotive with another brand death. With less than 11 millions cars projected to be sold in 2010 the competition is getting tougher with fewer buyers. Best Wishes to an old name!
Categories: Automotive News
May 13th, 2010
Most people enter into the car buying process with little information on the cost of borrowing money to purchase a new or used car. The cost of an auto loan or specificly the interest rate is directly related to your credit rating or FICO score. The FICO score will give you an indication of an estimated interest rate you can expect to pay to purchase a new or used car.
Auto Finance Companies use a FICO score tiering system to determine your credit worthiness and ultimately your finance rate. Terms such as Super Prime, Prime, Non Prime, Sub Prime and Deep Sub Prime are used with correlating FICO score ranges. The below list are estimates of the FICO ranges
Lending Tier FICO Score
Super Prime 740 or Greater
Prime 680 to 739
Non Prime 620 to 679
Sub Prime 550 to 619
Deep Sub Prime 549 or Less
The tiers of Super Prime and Prime will allow consumers the best auto financing rates with a few points over prime rate. Prime and Non prime will allow a consumer average financing rates with single digit points above prime rates. The final tiers of Sub Prime and Deep Sub Prime have a large range of rate offering with some ten plus points above prime rate.
The key to understanding Auto Loan interest rates it to determine your FICO score and figure out the tier you are in. From there, you can search the internet for the best auto loan interest rates and evaluate your rate from that point. If today’s rates are 6.25% and you are in the Prime tier then you should get that rate. However, if you are in the Non Prime Category, adding a few points or estimate at 8% to 9% is where you should fall. Sub Prime buyers will have to add a few points on the Non Prime rate and Deep Sub Prime a few more if you can find a lender at all.
Always know where you should fall before visiting a auto dealer. If you do not do the work, you will pay the price in a higher rate. Good car shopping and check out our Auto Classifieds sites for your next used car
Categories: Car Buying Tips
May 3rd, 2010
I was amazed at the information or should I say advice an individual can find when debating whether or not to purchase an extended service policy for their new or used car. In most cases, the recommendation was “don’t buy it”. The advice often times lacked any concrete reasoning at all. Here are a couple of my favorites reasons why you shouldn’t buy. “Any product worth buying should be backed by the manufacturer.” Tell that to your mechanic when your car won’t shift out of gear and it’s outside the factory warranty. He’ll nod in agreement as he hands you the bill. Or another classic… “Put the money you would have paid for the coverage aside to gain interest instead of handing it over to the dealer and pay as you need it.” This advice must have come from Warren Buffet. Most people are not interested or patient enough for this type of financial savvy. Now, don’t get me wrong, I’m not saying you should flop over and say yes to the service plan just because it’s offered. But I’m betting that the guy who tells you not to buy one won’t be shelling out the money for that unexpected repair quite as willingly as he shells out advice either.
I want to give you a few things to consider the next time you are offered a service plan for a used car. I believe its reasonable and logical advice that will help make your decision easier and give you the assurance that you’re making the right choice. For starters lets talk about when you don’t need to buy the extended plan. When you purchase a new vehicle it comes with Warranty provided by the manufacturer for a set amount of time and miles and will expire when one or the other is reached. For example, 3 years or 36,000 miles of factory Bumper to Bumper Warranty. If you know you won’t be outside the factory warranty during the time you own the vehicle, you don’t need to purchase additional coverage.
When a vehicle has used up all or most of the Factory Warranty, purchasing additional coverage needs to be considered. An important factor in your decision making process is to determine if the plan is reliable. The manufacturers service plans are usually a safe bet. They are easy to use and offer straightforward coverage honored at auto dealer service departments without question. In addition to manufacturer backed service policies there are also third party providers. When looking at these plans get as much information as you can. How long have they been in business? Do they pay the repair facility directly? Where is the policy accepted? Ask questions and do your research, not all service policies are created equal.
The second important factor when considering the extended service policy is cost. You don’t want to overpay, but just because a company is making money on a sale doesn’t mean they are ripping you off. Yes, providers are making money or else they wouldn’t be in business, but they also provide a service. Repairs can be expensive and a surprise repair can absolutely crush an individual who isn’t financially ready to deal with it. Service policies allow you to budget the cost of these unexpected repairs into your monthly car payment or spread the cost over time with a payment plan offered by the provider. Often times they will finance it for a year or two at 0% interest. To demonize something because there is a charge for it is ridiculous. Service policies serve a purpose, they take care of unexpected repairs that can blind side you and lay claim to your next paycheck or hard earned savings. Most include roadside assistance which provide towing and a loaner, the last things you want to worry about when your vehicle is sidelined.
You will know in the end if an extended service plan paid off, which it often does. But even if it doesn’t, at least you had an idea at the point of purchase what repairs were costing you. Service plan providers sell you a policy that will cover your vehicle in the event you run into repair troubles. They charge you a fee to take the risk for you. Sometimes they win sometimes you win. Knowing the cost of repairs ahead of time can be very comforting. There is nothing worse than an unexpected repair bill.
Now, pay attention! I’m ready to make a Supreme Court decision on whether or not to purchase the extended service policy. Here goes… If it makes sense to you, do it. When does it make sense? When you can purchase coverage that puts your mind at ease and do it at a reasonable price. Aren’t most purchases a result of the benefits outweighing the cost? A service policy is no different. If you can purchase additional coverage for the extra years and miles you’ll be driving, and you can do it affordably, why wouldn’t you? When unexpected repairs are needed, it’s a good feeling to know you’ve already budgeted for them. So… pick up your free loaner car and rest easy.
Categories: Car Buying Tips
May 1st, 2010
Car shoppers spend much of their time on find the best new or used car and getting the best deal. The most often overlooked part of the car buying process is an auto financing. The cost of your car over time is as much about the auto loan as it is about the car price. Finding the best auto financing to suit your needs and budget is a critical step and will save you hundreds if not thousands of dollars.
The first step is to determine your credit score, never apply for a car loan without knowing you score. Your credit score is the major factor in determining your interest rate you will pay a loan. The higher your credit score, the lower your interest rate and auto loan payment. Conversely, the lower your credit score, the higher your interest rate and auto loan payment. Prior to applying for your auto loan, evaluate your credit and find ways to increase your score to lower your rate. A quick fix is to pay down your credit cars debt which will help increase your credit score.
Next set your budget which is the amount your can afford on a monthly basis. How much of your income do you plan to use cover your car expenses. Item not to be overlooked are auto insurance, auto maintenance and fuel. Your budget will ultimately set your car buying threshold or vehicle price.
Research auto loan rates to determine by your credit score the average interest rate you will pay. Most lenders have interest rate tiers to determine the rate given. The credit score is one of the largest factors with a score above 720 considered to be good, below 720 to 620 considered to be fair and below 620 to be poor credit. Increasing your score if your can move up a level is a smart move to decrease your vehicle costs. Search auto loan rates on the internet to be informed on current rates and what you can expect when applying. Good car shopping means finding the best auto loan at the best rate.
Categories: Car Buying Tips
April 22nd, 2010
AIM Unveils New Reputation Management and “Local” SEO Tool
Chicago, IL – April 22, 2010 – Automotive Internet Media recently shared details about their new “DealerLocal” program with attendees at a Chicago Automotive Trade Association seminar.
Millions of people each month are utilizing hundreds of sites to shop for vehicles, find dealerships and rate their experience in both sales and service. The challenge for almost every dealer is to make sure they can be found in these sites and ensure they are aware of all consumer ratings – both good and bad.
DealerLocal is an online solution that provides dealers with information and ratings about their dealership across more that 1200 popular search engines, online directories and local search sites.
“We saw an opportunity to help dealers get their arms around this critical aspect of managing their online information and reputation,” said Mike McDonnell, CEO and Co-Founder of AIM. “I learned how much time and effort it takes us to do all this work for AutoSales.com and realized that most dealers aren’t going to take the time and effort to do if for their site. It’s very important because many consumers are using these sites to find your store and learn about other’s experiences. And as importantly, it can help your site’s SEO ranking.”
Customers are not only searching on popular search engines, but also multiple online directories such as Yellowpages.com, Superpages.com, DexKnows.com and many more. Countless dealerships are not listed in these directories or they have inaccurate information and some even have negative reviews that the dealership doesn’t even know about.
“Our program does most all of the work for the dealership. We look online at various search engines and directories to see if the dealership is listed, and the depth and detail of their information. If anything is missing or the information is wrong we correct it,” said Tony French, President and Co-Founder of AIM. He continued, “It’s not as easy as submitting information and then you’re done. Most all of these sites have their own process and usually takes weeks if not months to get a dealership listed or information changed.”
DealerLocal continues to submit, manage and monitor a dealer’s information on these sites until everything is up-to-date. The program also produces a monthly report with details on the dealership’s online reputation and notifies them of the number of ratings and their average score per site.
“It’s very important for dealerships to be found online, but once the consumer finds the dealership it’s equally important to have a good reputation,” said Tony. “We make it very easy for dealer to be listed everywhere online and to know what their customers are saying about them.”
About Automotive Internet Media
Automotive Internet Media, Inc. (AIM) headquartered in Chicago, Illinois, is a premier integrated media and lead distribution company. AIM encompasses an integrated network of highly specialized Used Cars Online websites that leverages search engine optimization to drive online traffic and connects digital advertising with our clients’ brand objectives.
With a solid foundation for growth, AIM is simultaneously building its current brands while continuing to grow through launching and managing other properties and programs.
Categories: Car Buying Tips
March 8th, 2010
Purchasing and paying for a new car doesn’t have to be intimidating. Beyond the acquisition of a new home, bringing a new vehicle into your life is the largest purchase most people will ever make. So it makes sense to do your homework before you approach the car dealership, develop a plan of action, and then keep your wits about you as you negotiate.
Know Your Credit History
If you haven’t done this in the past year, log on to the Autosales.com home page and click on “get credit score” and get a credit report. Make sure the information is correct and file a dispute if it isn’t. Clear up any collection items that may be listed and pay down some of those credit card debts. The best interest rates go to those with the best credit history. It may take time to clear up some of those issues on your credit report, but it is well worth your while in the interest shopping department.
Save Up for A Down Payment
Oftentimes, the best interest rates are not only reserved for those with good credit scores, but also for those with a down payment on a vehicle. Aim to pay at least 20% of the value of the new car up front, either with a trade-in or cash. Not only will you get a better interest rate, but you will have a better chance of avoiding being upside-down on your loan. That is, owing more than your car is worth!
Shop Around
The dealer does not always have the best interest rates available. Before you go car shopping, click on “auto loan quote” to inquire about pre-approval and determine what interest rates they can offer you. Have a good idea of what you want to purchase, what the value of your trade-in is, and what your total loan amount will be. This research can be done with the help by shopping around on Autosales.com. You can then get a good idea of what they can offer you in terms of loan rate and term.
Negotiate a Good Deal
Approach the dealership with your research and negotiate for a fair price on the vehicle that you desire. If they attempt to offer you low interest financing, it may or may not be a good offer. Do the math! How much interest will you pay if they give you $3,000 cash back versus paying 0% interest on the full price car. If you pay less interest than $3,000 take the higher interest financing and the cash back. If they can’t offer you a good financing deal, then turn back to your pre-approved bank loan. Never negotiate a car deal based on monthly payment amounts. Yes, you need to know what you can afford each month, but you will get burned if you agree to pay $250 a month over 6 years versus $300 a month over 5 years. Know how much interest you are paying over the life of the loan and aim to keep that to a minimum, not your monthly payment!
Pay Your Bills
After you’ve secured your auto financing, remember to make that monthly payment and keep your credit history solid for your next major purchase.
Avoid the Finance Department
After you’ve paid off this car, see if you can’t stand to keep it in your garage a little longer. Take that monthly payment you’ve been sending to the bank or the dealership financier and put it in an interest-earning savings account. Do this for a few years and you’ll be well on your way to paying for an upgraded car in cold hard cash. Imagine driving off the lot in a new car knowing that you don’t owe anybody for it. Keep these simple tips in mind and you will be well on your way to being considered a savvy negotiator who commands respect. It’s your hard-earned money spend it wisely!
Categories: Car Buying Tips
March 1st, 2010
Consumer Reports has published their “Best Models By Category 2010″ and many of the choices are a surprise. Toyota has been left off the list other than the “Green Category”, due to their recall issues. The ratings are bases on performance, reliability and safety with the following models taking top honors:
Family Sedan: Nissan Altima
Small Sedan: Volkswagen GTI
Small SUV: Subaru Forester
Best Car Overall: Lexus LS 460L
Family SUV: Chevrolet Traverse
Sports Sedan: Infiniti G37
Family Hauler: Mazda5
Green Car: Toyota Prius
Pickup Truck: Chevrolet Silverado 1500
Thanks to Consumer Reports for their annual study. To find a similar Used Car , check out listings on Autosales.com
Categories: Car Buying Tips
February 24th, 2010
You may not be able to do much about rising gas prices, but you can adjust your driving habits so that you use fuel more efficiently. Therefore you can get more bang out of every gas buck! Like the story of the turtle and the hare, where the smart and savvy turtle outwits the hard-charging hare to win the race, you can use savvy driving techniques and tips to get the advantage over high gas prices. This will ensure every tank of gas goes further. As a result, you arrive at your destination with money to spare and ready for another trip.
Driving Techniques
If you’re always flying along in the fast lane, you may want to ease up and slide over to the right. Maintenance experts, such as Goodwrench technicians, point out that driving 55 versus 70 mph saves up to 20 percent more fuel. Use your cruise control and you could save even more. Another tip is to drive consistently. Like the hare that goes all out, and then burns out, before the end of the race, hard starts and stops burn more gas than smooth accelerations, so you deplete your tank faster.
Load Tips
It makes sense that a heavier vehicle will burn more fuel than a lighter vehicle, so watch your load. Avoid hauling around items that you don’t need, such as that case of bottled water you picked up at Costco a week ago, or your golf clubs that you use once a month. Gas also adds weight, so if you pass your local gas station every day on your way to and from your house, consider buying less fuel at a time and fueling up more often. If you don’t have to, don’t lug around a full tank of gas.
Fueling Tips
Try to buy gas in the early morning when temperatures are the lowest. Gas pumps don’t compensate for the fuel temperature and will deliver slightly more if the gas is cool. Also, don’t top off your tank. Topping off usually results in spilled gas, which is a waste of your money and harmful to the environment.
Staying Cool
While the heat and humidity of some climates guarantee that you will arrive at your destination a soppy mess if you forgo the air conditioning, others are amenable to good old-fashioned roll-down-your-windows-and-enjoy-the-wind driving. If this describes your climate, or you’re simply headed out to the pool or another anything-goes destination, roll down your windows to cool off in city driving. However, if you’re hitting the highway choose your air conditioning. Open windows can be a literal drag on your car’s aerodynamics, slowing you down and forcing your engine to work harder.
These techniques and tips are essential for helping you save money during this time of sky-high gas prices and during any time. Saving money is always in style, so take a tip from the smart and savvy turtle and make these practices a regular part of your routine. You can watch every tank of gas go further, every time. These tips are brought to you by Autosales.com and Cartango.com.
Categories: Car Buying Tips
February 20th, 2010
If you are ready to purchase a used vehicle here’s a list of things to bring with you to the dealership.
Pen and paper – You’ll need to write down some basic information for research before you buy the car. Write down the VIN#, year, make, model and mileage.
Calculator – Divide the number of miles by the age of the vehicle. Keep in mind even though it may be a 2006 it could have been sold in the fall of 2005. Check the inside of the driver’s side door panel for the manufacturer date. If it is more than 15,000 miles per year you may want to be a little cautious.
CD – It is always a good idea to check the cd player (if equipped) to make certain it is in good working order.
A preapproval loan – It is a good idea to get an auto loan quote at Autosales or Cartango prior to going to the dealership if you are planning on financing the vehicle. If you go through the banks the dealership uses there may be hidden fees or even a higher interest rate.
Paystubs, W-2, and a recent bill – If you need specialty financing this documentation may be needed for income and address verification. If you do not receive any bills in your name at your residence, you can call an insurance agent and have them mail you an estimate. This will usually suffice for address verification.
Hand towel or small cloth – You will want to check the oil and transmission fluids. If the oil has a milky look, this can be a sign of major engine problems. Smell the transmission fluid, if it smells burnt, it may have a bad transmission.
Laptop – If you have a laptop, bring it along and do a VIN check on the vehicle. The VIN# can be found at the bottom of the windshield on the driver’s side, or on the inside panel of the driver’s door. You can find out if the car has ever had flood damage and also if it has been in any accidents. You can also look up the book value.
List of cars and price you are willing to pay – Do some research on the cars you like. Write down their book values and options. Also look at your local market and check the average asking price for the different cars in which you are interested. Keep in mind, this is only their asking price. They will usually sell the car for less than they are asking.
A penny – This coin can be used to check the treadwear of the tires. Turn the coin sideways with the top of Lincoln’s head downward. Place the coin between the treadlines of the vehicle. The tread should at least reach the top of Lincoln’s head.
Driver’s License – You won’t be able to test drive without it. In some states you may also be required to have proof of insurance.
Downpayment – If you are serious and want to get the best deal have your downpayment with you. It is hard for a salesperson to pass on an offer when he sees the downpayment in your hand.
Coolant Tester – This tool can be picked up very inexpensively at any auto parts store. Since you’ll want to check the level of the fluid anyway, you might as well test it too. No need to remove the radiator cap. Just open the overflow and test the fluid there. Simple instructions are on the package.
Name and location of a local garage – You should have enough time on your test drive to take the vehicle to a local repair shop. Have them do a vehicle inspection, they usually advertise a 29 point check or something to that extent. There will be a minimal fee, usually $25 – $75, or maybe even free if it is your regular mechanic.
And last but not least, a mechanic or someone with mechanical knowledge – Don’t be afraid to ask a friend who is very biased to go with you, they will be flattered. You will need someone who is willing to look underneath the vehicle for any leaking fluids. Be sure to have them look before and after the test drive. This person can also check the fluids for you. It is a good idea for both of you to test drive the vehicle too.
Categories: Car Buying Tips
