GM sales, used-<b>car values</b> hold up through recalls - seattlepi.com |
- GM sales, used-<b>car values</b> hold up through recalls - seattlepi.com
- Extended <b>Car</b> Loans Gaining Popularity | Bankrate.com
- 2015 BMW 3-Series Review, Ratings, Specs, <b>Prices</b>, and Photos <b>...</b>
- Used Luxury-<b>Car Prices</b> Fall Again in April, Mainstream Models Rise <b>...</b>
| GM sales, used-<b>car values</b> hold up through recalls - seattlepi.com Posted: 17 Jun 2014 11:38 AM PDT DETROIT (AP) — Consumers looking for a used vehicle aren't shying away from GM models — even though more than 20 million GM cars and trucks have been recalled this year. General Motors cars such as the Chevrolet Malibu have retained or increased in value, sometimes more than rival vehicles. And sales of new cars aren't slowing either, up 13 percent in May. GM has issued 44 recalls in North America this year for parts ranging from ignition switches to air bags. The most serious is for ignition switches in 2.6 million small cars linked to more than 50 crashes and at least 13 deaths. Investigations into that recall have exposed GM as a company that was too slow to react to serious safety issues. In the past, consumers punished automakers for big recalls. Those companies lost market share — Toyota's dropped 2 percentage points over 12 months when it recalled 14 million cars for unintended acceleration. Yet GM's has held fairly steady so far, around 18 percent. GM has cautioned that an ongoing companywide safety review could produce even more recalls — just Monday it recalled another 3.4 million cars for a separate ignition switch issue — so consumers might still decide it's smarter to buy their wheels elsewhere. But for now, experts say, GM has retained buyers' confidence by appearing to act quickly on safety matters — even though GM's internal investigation into the small-car switch recall showed that employees took years to realize they had a safety problem on their hands. "People are associating that with being vigilant more than being careless," said Larry Dominique, president of ALG, formerly Automotive Lease Guide, whose data is used by dealers to set values of leased cars. That could explain why the value of the 2010 Chevrolet Malibu rose almost 3 percent from February, when the recalls started, through May, according to ALG. That compares with midsize cars as a whole, which dropped in value by 1 percent. The Malibu has been part of five recalls this year. The value of most other used GM cars also rose. The exception: the Chevrolet Cobalt, which is at the heart of the first ignition switch recall. About 1 million Cobalts are being recalled. Of the 13 deaths GM counts, nine occurred in Cobalts. ALG says the value of 2010 Cobalts dropped 2.4 percent from February through May, but the compact car segment's value rose almost 3 percent. Falling values have triggered lawsuits from Cobalt owners. That doesn't mean the cars won't sell. At L.A. Sales in Oyster Bay, New York, on Long Island, part-owner Andy Kaufman recently sold a 2005 Cobalt for just under the $5,000 he was asking. The buyer, he says, had no concerns once Kaufman showed him the switch had been replaced. Experts say the volume of recalls has taken away some of the fear factor. "I'm beginning to wonder if the consumer is almost numb to the next headline that comes out," says Ricky Beggs, a senior vice president of Black Book, which also monitors used car prices. The GM headlines keep coming. On Monday, GM recalled older large cars for an ignition problem, although GM says the cause in this one is the key design. On June 6 the company said 15 people had been dismissed in relation to the findings of its internal investigation into the small-car switch problem. CEO Mary Barra has repeatedly apologized for the injuries and loss of life. She makes a return trip to testify on Capitol Hill Wednesday. Even if consumers do become sensitive to the recalls, any new-car market share decline would be small, predicts Jesse Toprak, senior analyst with the Cars.com website. "They can mitigate it with some targeted marketing efforts" and bigger discounts, Toprak says. Consumers seemed more sensitive in the past. In the early 2000s, Firestone recalled more than 6 million defective tires on Ford SUVs, and the automaker replaced another 10 million. At least 271 people were reported killed and hundreds injured. Ford's share of the SUV market fell 5 percentage points. One important difference is that the recalled GM small cars — the Cobalt, Saturn Ion and Sky, Pontiac G5 and Solstice, and Chevy HHR — are no longer made. And GM's newer cars score much higher in quality surveys. Also, people don't always associate General Motors with the Chevrolet, Buick, GMC and Lincoln brands, said Dominique. Still, there is fallout. Elise Palazzi of Hawthorne, N.J., near New York City, is still trying to sell a 2005 Cobalt that one of her daughters used to drive. She first put the car on the market for $4,500 just before the recalls began. Palazzi told potential buyers that she had no problems with the ignition, but they were skittish, she says. About a month ago, her local Chevrolet dealer replaced the switch. She didn't change the price, but revised her ad to show the switch has been repaired. Now she's optimistic about selling. But a man came to see the car last week and didn't buy it. Kaufman, the Long Island dealer, is concerned about the large number of GM vehicles subject to recalls. The federal government says there are no regulations preventing used car lots or individuals from selling recalled cars before they are fixed. But Kaufman says he won't sell any until repairs are done. "You have a white elephant that you've just got to stick in the back of your lot and watch it depreciate," Kaufman said.  | ||||||
| Extended <b>Car</b> Loans Gaining Popularity | Bankrate.com Posted: 15 Jun 2014 05:00 PM PDT auto New vehicle prices are increasing, and credit is becoming more readily available, ushering in an era of extended-term car loans. A decade ago, a 60-month car loan was the norm. That's been replaced by the 72-month auto loan; some consumers are getting terms that last more than seven years. "Consumers tend to be comfortable paying a certain monthly amount and over time, we haven't really seen that amount increase much," says Melinda Zabritski, senior director of automotive credit at Experian Automotive, the Costa Mesa, California, provider of market research for the automobile industry. "But cars are costing more, which is pushing out longer-term loans."  According to TrueCar Inc., the Santa Monica, California-based automotive pricing information company, the average transaction price for light vehicles was $31,087 in March 2013, up 1.1 percent from March 2012. Check out long-term car loan rates at Bankrate.com. Pick your own terms if you have good creditWhile an average price tag of more than $30,000 can shut many consumers out of the new car market, if that $30,000 with interest is spread over 90 months, it will be more manageable and the car dealers know that. Instead of letting the consumer walk off the showroom floor, the automobile dealer's financing department will do its best to meet the payment needs of the customer. The better your credit score is, the greater the chance of getting an extended car loan. That's because the longer the term of the loan, the greater the risk there is for the lender that the borrower will default and the car will be worth nothing. That's why subprime borrowers or those with less-than-stellar credit normally aren't targeted, says Jim Landy, CEO of CarFinance Capital, the Irvine, California, automobile financing company. Extended terms mean you pay more"Loan terms going over 72 months is really a rarity in today's below-prime sector market," Landy says. "Some luxury-model prices are north of $60,000 or $70,000, so more and more banks will offer extended terms beyond 72 months." Consumers who opt for a longer loan amount will undoubtedly pay more in interest over the life of the loan. According to Bankrate.com's auto loan calculator, a $25,000 auto loan at an interest rate of 4 percent will cost you $564.48 per month for 48 months, or $27,095.04 over the life of the loan. The same amount and interest rate over 84 months will cost you $341.72 per month but $28,704.48 over the life of the loan. So, while you pay less each month, the total cost of the car is greater.
Upside-down loans are common with extended termsThat's not the only risk associated with this type of financing. "When you lengthen the term of your loan, you are pushing out your negative to positive equity," says Eric Lyman, vice president of editorial and consulting for ALG, the Santa Barbara, California, automobile industry research company. That means it will take you that much longer to break even on your car purchase. Any consumer who buys a new car will see the value of that vehicle depreciate as soon as they drive off the dealer lot. According to Lyman, it typically takes 42 months, or 3 1/2 years, to break even on your loan when trading your car in. That means you can take out a new car loan and forget about the old one. But if you have a loan for a longer period, you may have to pay the dealer in order to trade in for a new car or carry the existing debt over to the new car loan. "Let's say you have a car that's worth $12,000 but you owe $14,000 on the loan," Lyman says. "Your options are to borrow another $2,000 and go further into debt, or drive away and not buy that new car." Used car values also impactedExtended-term loans also can have a negative impact on the overall car market, particularly for used cars, Lyman says. That's because dealers and car manufacturers don't want to lose a sale and will go to great lengths to help car buyers who have a loan that's worth more than the vehicle. "What we've seen historically is car manufactures will offer cash rebates as a way to eliminate that negative equity," Lyman says. "What happens is, it lowers the price of that new car. If you start to see more cash incentives, you see the value of used cars deteriorate. It's very damaging for the overall industry in terms of used-car values." Consumers who opt for a longer loan term will undoubtedly pay more in interest over the life of the loan. Know your buying patternDespite all the negative aspects of extended-term car loans, there is a fair share of consumers signing on the dotted line. But whether it makes sense for you boils down to the type of car owner you are. According to industry experts, while consumers on average will want to trade their car in after four years, there are those holdouts who keep their vehicle until it fully depreciates. What side you fall on will help determine the best loan for your situation. Experian's Zabritski says if you are the type of automobile owner who wants a new car every couple of years, a longer-term loan might not be the best loan for you because of the greater likelihood that you'll be in a negative equity situation when you go to trade it in. But if you are the type of person who holds on to their vehicle for years and can only afford a certain type of monthly payment, then a longer-term loan could be the way to go. "You have to know your own buying pattern to figure out whether or not it makes sense," Zabritski says.
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| 2015 BMW 3-Series Review, Ratings, Specs, <b>Prices</b>, and Photos <b>...</b> Posted: 17 Jun 2014 01:17 PM PDT The 2015 BMW 3-Series lineup is looking quite different than it did just a couple of years ago. Yes, coupes and convertibles have flown the coop (they're now called the 4-Series); but with the introduction of new Gran Turismo (3GT) hatchback models to the lineup, as well as a Sports Wagon -- plus many under-the-hood choices -- it's by no means the simply charming sport sedan that first won Americans over decades ago. That said, BMW definitely hasn't forgotten that the 3-Series is first and foremost a sport sedan. You'd be hard-pressed to find a model in the lineup that isn't rewarding to drive on a curvy mountain road; yet nearly every model in the lineup today will return more than 30 miles per gallon on the highway if you keep it smooth and responsible. It's out in the open about that intent, with classic sport-sedan proportions on the outside. With aggressive headlights, a modern take on the kidney grille, and flared air intakes, all the right details are here to enhance the profile. The hood is lower at the nose, but rises higher than the previous model thanks to pedestrian safety regulations; the cabin is larger and longer; and we especially like how the greenhouse doesn't get pinched by a rising beltline near the back. Inside, the BMW 3-Series' cabin is spacious for those in front, and roomy for cargo, although back-seat space is still a bit limited. The modern interior design makes good use of the space, though; just beware that some of the many trim combinations can get a little too 'splashy,' visually. With the same basic 2.0-liter turbo four-cylinder engine as found in the 328i, but de-tuned to 180 horsepower and 200 pound-feet of torque, the 320i is BMW's answer to the Mercedes-Benz CLA Class and Audi A3 sedan. The next step up the ladder is the 328i, rated at 240 horsepower and 255 pound-feet of torque. The top-tier standard model is the 335i, with a 3.0-liter turbocharged in-line six-cylinder rated at 300 horsepower and 300 pound-feet of torque. For those seeking better fuel economy, the 328d is the way to go, with 181 horsepower from a turbodiesel four-cylinder engine. Rear-wheel drive is standard on all sedan models, with available all-wheel drive. A six-speed manual transmission is also standard, with an available eight-speed automatic transmission as an upgrade. Whichever body style you choose, the 3-Series range delivers balanced, well-crafted handling and dynamics, though most notably so in rear-wheel-drive sedan form. Some of the edge of previous 3-Series is gone, replaced instead with a softer, more comfortable feel, but the 3-Series is still a capable back-road hustler. The 335i models are the most potent, but the four-cylinder turbo in the 328i offers nearly as much speed and arguably more fun as you work to keep it at full boil--with better gas mileage. A 3-Series Sports Wagon is also available; all wagons come with standard all-wheel drive, and with one of two engines: the same 240-horsepower unit found in the 328i sedan, or the 181-horsepower four-cylinder diesel for 328d xDrive Sports Wagon models. All 3-Series Gran Turismo models also come with standard all-wheel drive. Engines for the Gran Turismo range mirror those found in the 328i and 335i sedans. The new 3-Series Gran Turismo versions don't look all that different in some respects, but they drive quite differently, with a little more weight and a softer suspension calibration and a tune that simply doesn't feel as sporty, but adds up to a very agreeable family vehicle.Pricing for the 2015 BMW 3-Series can be daunting, but the flip side is that loads of a la carte options let you essentially build the car you want. Among the many luxury and technology options are: a head-up display (HUD), which is especially well-placed and useful here; a Cold Weather Package with heated front and rear seats, a heated steering wheel, and retractable headlight washers; a Driver Assistance Package with Lane Departure Warning and Active Blind Spot Detection; and a Park Distance Control system (part of the Parking Package), which includes a rearview camera and the Side and Top View camera system. Features and equipment are good even in base models, though the new 320i does strip out much of the standard infotainment and technology. From the 328i and up, however, the standard iDrive system ties its multi-function controller into the center stack display for entertainment, navigation, audio, and other functions. Often maligned in years past, iDrive has matured into a more usable, if still complex, system, and the available navigation system includes excellent 3D maps. For 2015, the 3-Series lineup gets a number of minor trim and feature changes. Wood, leather, and other trim materials have changed in some cases; and functionality-wise, Bluetooth audio streaming is now included in all models. | ||||||
| Used Luxury-<b>Car Prices</b> Fall Again in April, Mainstream Models Rise <b>...</b> Posted: 23 Apr 2014 07:52 AM PDT Luxury models again dominated the list of used cars with the biggest price drops, with nine of the cars in this month's top 10 from traditional luxury brands. Hyundai's full-size Equus sedan — a luxury car from a non-luxury brand — took the 10th spot. Luxury models have made up the majority of cars in the top 10 every month so far this year. The average asking price for Land Rover's flagship Range Rover SUV dropped the most in April, falling 4 percent ($2,871). The Audi A3 and Mercedes-Benz CLS-Class round out the top three with price drops of 3.1 percent ($752) and 2.9 percent ($1,730), respectively. The list of cars with the biggest April price gains was considerably more varied, with everything from heavy-duty pickup trucks to an electric car. The Chevrolet Express 1500 full-size van had the largest jump in asking price with a 2.9 percent ($594) increase. Close behind were the GMC Sierra 3500 and Nissan Leaf, which were up 2.6 percent ($1,158) and 2.5 percent ($488), respectively. After a couple months of mostly static average used-car prices, asking prices ticked up in April. Late-model used-car prices were up .75 percent ($175) from the prior month to $23,418. The increase might be a reflection of more shopping activity as the spring selling season begins following a long, cold winter in many parts of the country. The charts detail used cars from the 2011 to 2013 model years with the biggest price drops — as well as those with the biggest gains. To be eligible for the lists, a model had to have at least 250 cars in Cars.com's national inventory. Source: Cars.com used-car listings, 2011 to 2013 model years Cars.com photo by Evan Sears | ||||||
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