Autoblog http://www.autoblog.com Autoblog http://www.blogsmithmedia.com/www.autoblog.com/media/feedlogo.gif Autoblog http://www.autoblog.com en-us Copyright 2009 Weblogs, Inc. The contents of this feed are available for non-commercial use only. Blogsmith http://www.blogsmith.com/<![CDATA[Analysts: There's no guarantee that Cash-for-Clunkers will really drive car sales]]>http://www.autoblog.com/2009/06/22/analysts-theres-no-guarantee-that-cash-for-clunkers-will-reall/http://www.autoblog.com/2009/06/22/analysts-theres-no-guarantee-that-cash-for-clunkers-will-reall/http://www.autoblog.com/2009/06/22/analysts-theres-no-guarantee-that-cash-for-clunkers-will-reall/#commentsFiled under: , ,



Now that the so-called Cash-for-Clunkers bill is ready for President Obama's signature, attention is turning to how much of an impact the negotiated bill will actually have on U.S. car sales. There are a lot of positive stories about the bill floating around - headlines hopefully implore that the bill might "jumpstart U.S. auto sales" and claim "Has Uncle Sam got a deal for you." But will the law, with its fairly tight requirements, really stimulate sales? Some auto analysts don't think so.

Four analysts interviewed by Automotive News estimate that only 70,000 to 200,000 more vehicles will be sold because of the clunkers bill. According to the detractors, there are three main factors that will likely blunt the bill's impact:
  • It's just four months long - the law will only offer cash for your clunkers from July 1 until November 1.
  • While the bill requires the new vehicle to be more fuel efficient than the one you're trading in, the 18 mpg limit on the old ride (details here) doesn't encompass nearly enough vehicles.
  • The economics of the law don't make a lot of sense in the real world. If you're driving an eligible car, then chances are that you can't afford to purchase a new vehicle right now - even if you can get a $4,500 federal credit on the price. More often than not, it makes greater sense to just buy a used car.
[Source: Automotive News (subs req'd) | Image: KB35 under CC 2.0]
Photo by KB35. Licensed under Creative Commons license 2.0.

Analysts: There's no guarantee that Cash-for-Clunkers will really drive car sales originally appeared on Autoblog on Mon, 22 Jun 2009 16:00:00 EST. Please see our terms for use of feeds.

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The lagging sales of new vehicles has been well documented, forcing retailers and manufacturers to offer some pretty amazing deals just to move their metal. Sometimes, the price of a brand new car is so good that it doesn't make sense to purchase a used vehicle.

In fact, some new cars are actually priced lower than their previously-loved siblings. One specific example is the 2009 Honda Accord, which, according to Edmunds, is selling for about $80 less than the average asking price for a certified 2008 model. Of course, Hondas are known for holding their value, so better used vehicle deals may be found elsewhere.

Further, interest rates on loans for new cars are generally lower than for used cars, which means the monthly payments may actually be lower for a zero-mile vehicle that costs the same as one that's been around the block a few times. Automakers hope these facts help spur a recovery in new car sales, and for their sake, so do we.

[Source: Detroit Free Press | Photo: David Gallagher]

Some used cars going for more than new ones originally appeared on Autoblog on Fri, 20 Mar 2009 16:58:00 EST. Please see our terms for use of feeds.

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The sun will set on an alarming number of new car dealerships this year, according to The National Automobile Dealers Association, better known as NADA. This has been an ongoing trend, but it's set to accelerate as slowing new car sales and the tough credit market makes it very difficult for dealerships to stay open. After losing about 430 dealerships last year, the total stood at around 20,700 left, of which 700 are expected to close up shop before the end of the year.

This sobering statistic will have far-reaching effects on the nation's economy, as NADA estimates that 18% of all retail dollars are made at car dealerships, and 13% of the nation's payroll is paid to their employees. Closures will account for the loss of over 37,000 jobs in the United States and will only serve to complicate the oftentimes frustrating act of purchasing a new car for many Americans, not to mention making it that much harder for automakers to reach out to their dwindling number of customers.

[Source: The Wall Street Journal]

NADA estimates 700 dealers will close in 2008 originally appeared on Autoblog on Wed, 29 Oct 2008 08:28:00 EST. Please see our terms for use of feeds.

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In a move certain to generate both controversy and publicity, a new and used car dealer in Butler, Missouri, is offering his customers a choice between two sales incentives with their vehicle purchase: $250 in gasoline or a free semi-automatic handgun.

"We got high gas prices, theft, carjackings, innocent people getting hurt," Walter Moore, from Max Motors, told KMBC-TV. It seems the resourceful dealer is offering car buyers a solution for it all -- and the gun is proving to be the popular choice with 80 percent of his customers choosing the firearm over free fuel. As expected, not everyone is happy. Considering most of his customers already own guns, Moore doesn't understand why people's feathers are getting all ruffled. Customers who choose the semi-auto pistol over the gas are handed a certificate that must be redeemed, after the requisite forms and background check are complete, at a local gun shop. This, of course, keeps the local police much happier. Thanks for the tip, mccreery!

[Source: KMBC-TV]

Dealership offers free gas or gun with new car: 80% choose gun originally appeared on Autoblog on Wed, 21 May 2008 14:57:00 EST. Please see our terms for use of feeds.

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Those of you new to the Autoblog fold might be unaware that this site, along with the entire Weblogs, Inc. network, is owned by AOL and has been since late 2005. Autoblog is very fortunate in that our partner under the corporate umbrella is AOL Autos, which is run by a dedicated team of industry experts and car fanatics, including our counterparts, fellow auto-enthusiasts and editors Chris Ciccone and Khoi Nguyen. We've worked hard towards bringing Autoblog and AOL Autos closer together, and today we're going to go take a new step.

AOL Autos has recently relaunched its new car database for car shoppers. We've been playing with it for a while now and have seen the additional features AOL Autos plans to add in the coming months. We're proud of our colleagues across the aisle and their new site, so much so that we've offered to pledge our support. In future posts, when we mention the make and model of a currently sold vehicle in a post, Autoblog will hyperlink that first mention to the corresponding page in the AOL Autos new car database. We see this as a way to make Autoblog more user-friendly for neophytes and new car shoppers who find their way here from a Google search, while not distracting you, the legions of Autoblog faithful.

Be sure to check out the new car database at autos.aol.com, and feel free to offer suggestions for improvement in the comments. They have a lot more features to add in the near future, but are eager to hear your thoughts on what they've done so far.

Autoblog hearts AOL Autos originally appeared on Autoblog on Mon, 11 Jun 2007 13:33:00 EST. Please see our terms for use of feeds.

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The arrival of a new car in your garage is a lot like returning home from your honeymoon. For the first month, you wash the car every other day to show off its hot body. A couple months go by and you're still washing it every weekend. After six months, you find the time for a wipe down once a month. After a year, though, you're happy when it rains and washes the salt off.

For this English gentleman and his new Vauxhall Astra VXR, however, the honeymoon will likely last longer than most. We have never seen a new car owner go to such incredible lengths to make sure his new ride is showing its best side. To say that he "detailed" the car would be a gross understatement. Most detail jobs don't involve washing the car with 100 litres of zero ppm RO water, inspecting the finish with a blue light gun for blemishes and applying a $7,118 wax job. We have to say though, after reading his thorough play-by-play of the process and viewing the before and after pics, it made a bigger difference to the car's appearance than we expected.

[Source: Corsasport.co.uk via GM Inside News]

New owner welcomes Vauxhall VXR Astra with most comprehensive car wash ever originally appeared on Autoblog on Fri, 23 Mar 2007 18:04:00 EST. Please see our terms for use of feeds.

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click above image to view high-resolution photo gallery

Much has been said about Hyundai's rise from being a pusher of Point-A-to-Point-B transportation to the purveyor of high value, safe and stylish vehicles. Nearly its entire lineup is full of ready for primetime hardware, save the Tiburon that idles into 2007 with merely a refresh of its aging design. The Azera debuted as a 2006 model to replace the XG350, a Korean import that filled a hole in the company's lineup but whose claws weren't sharp enough to play in the tiger pit that is the large car market in North America.

Like all the new models Hyundai has marched out in the past few years, the Azera looks great on paper and stacks up extremely well against other large cars in its class, like the Toyota Avalon, Ford Five-Hundred, Buick Lucerne and Chrysler 300. It starts with a low base price and piles on a big V6, lots of standard safety equipment and a sheetmetal suit that fits just right. But does the Azera have that something special that makes a contender into a champion, or do the sum of its parts equal no more than just the sum of its parts?

Gallery: Autoblog Garage - 2007 Hyundai Azera Limited

Continue reading In the Autoblog Garage: 2007 Hyundai Azera Limited

In the Autoblog Garage: 2007 Hyundai Azera Limited originally appeared on Autoblog on Wed, 31 Jan 2007 10:07:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>AzeraAzera LimitedAzeraLimitedHyundainew carNewCarresearchreviewWed, 31 Jan 2007 10:07:00 EST<![CDATA[Jeep Compass comes in below projections]]>http://www.autoblog.com/2006/10/10/jeep-compass-comes-in-below-projections/http://www.autoblog.com/2006/10/10/jeep-compass-comes-in-below-projections/http://www.autoblog.com/2006/10/10/jeep-compass-comes-in-below-projections/#commentsFiled under: , , ,

The Chrysler Group has gotten tons of PR mileage out of the popularity of the Dodge Caliber, to the point where dealers haven't been able to keep them in stock and consumers have to beg for a test drive (new Calibers net more profit than demos, after all). Unfortunately for the automaker, the Caliber's stablemate, the Jeep Compass, isn't enjoying the same successes. As the first car-based Jeep to hit the streets, the Caliber's sales have been lower than projected despite the vehicle's distinctive styling and sharp interior. The problem seems to be the 2006 models glutting dealer lots, giving potential Compass buyers food for thought -- a 2007 Compass doesn't represent the same kind of deal as, say, a loaded up 2006 Jeep Liberty.

Automotive News reports that the transaction price of the Dodge Caliber has risen since its introduction, beginning at $17,059 in March and then up to $18,276 by the end of September, while the Compass' price has lowered from $22,467 at launch to $21,534.

Jeep has quite a predicament on its hands if the Liberty and even Grand Cherokee are cannibalizing Compass sales -- evidently yet another drawback to Chrysler's resistance to cutting production when showrooms first started clogging up. We'll see how the situation evolves when the Patriot comes out.

[Source: Automotive News via AutoWeek]

Jeep Compass comes in below projections originally appeared on Autoblog on Tue, 10 Oct 2006 07:32:00 EST. Please see our terms for use of feeds.

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You may recall last week we told you that GM was no longer going to cover the cost of a full tank of gas for newly purchased cars and trucks. Instead, it would only reimburse a portion of each tank's cost, and dealers would be responsible for the rest. One of our readers who shall remain anonymous has come across another dealer communiqué from GM Vice President of Industry Dealer Affairs William Powell that rescinds the company's original penny-pinching policy. The notice explains that GM originally decided to change its fuel fill reimbursement policy based upon "the changing business conditions and competitive environment." Apparently its dealers clued General Motors in on the fact that "a complete fuel fill was viewed as an integral element in the delivery of GM vehicles." Who knows, maybe this whole blog thing had something to do with it, too.

Anonymous thanks for the tip!

GM gets wise, will again pay for full tank of gas upon delivery originally appeared on Autoblog on Sun, 27 Aug 2006 10:59:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>dealersfill upFillUpfuelgasnew carNewCartankSun, 27 Aug 2006 10:59:00 EST<![CDATA[Volkswagen brings love of vending machines to car storage]]>http://www.autoblog.com/2006/05/19/volkswagen-brings-love-of-vending-machines-to-car-storage/http://www.autoblog.com/2006/05/19/volkswagen-brings-love-of-vending-machines-to-car-storage/http://www.autoblog.com/2006/05/19/volkswagen-brings-love-of-vending-machines-to-car-storage/#commentsFiled under: , ,

There's something inexplicably fun about getting something out of a vending machine, particularly one with a cool dispensing mechanism. And if you're picking up your new car from Volkswagen's storage facility in Wolfsburg, Germany, "inexplicably fun" just isn't the word. The storage facility, which takes up just 20 percent of the space needed by comparable facilities, holds 20-story towers filled to the brim with new VWs. An automated arm raises up into the heavens of the building, retrieving the new owner's VW and bringing it to him/her in less time, and without the potential damage brought by human error.

[Source: The Cool Hunter via the German Car Blog]

Volkswagen brings love of vending machines to car storage originally appeared on Autoblog on Fri, 19 May 2006 14:04:00 EST. Please see our terms for use of feeds.

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The Detroit News is reporting that J.D. .Power is tinkering with its Initial Quality Survey for the first time since 1998 and only the second time since it was introduced in 1987, and the results could mean an increase in reports of problems by up to 40 percent.

The changes affect the number of questions asked (217 vs. 135) and the way in which they're asked to the almost 60,000 new car and truck owners. Owners are also given the chance to reply in essay form for the first time.

Though some manufacturers might cry foul if they drop in the rankings as a result of the new survey, most appreciate the additional material they'll be able to glean from J.D. Power's results.

[Source: The Detroit News]

J.D. Power revamp should swing quality ratings originally appeared on Autoblog on Fri, 12 May 2006 19:09:00 EST. Please see our terms for use of feeds.

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