Auto and Homeowners Insurance: Is AARP Looking Out for You? CBS News #auto #invoice #prices


#auto and home insurance
#

Auto and Homeowners Insurance: Is AARP Looking Out for You?

Last Updated Oct 9, 2009 1:34 PM EDT

The way insurance companies barrage you with television ads promising to save you money, you might think they were paying you instead of the other way around. In the case of the GEICO googly eyes or actor Dennis Haysbert hawking Allstate policies, at least it’s private companies pitching their wares. But then there are the auto insurance ads touting the $388 saved, on average, by people who switched to plans offered through AARP by The Hartford Financial Services Group. The ads also say that AARP members who own homes might save an additional $148 by switching their homeowners coverage. In this case, the trusted nonprofit is lending its name to a commercial venture. Pay less, get the AARP imprimatur. What’s not to like? Read on to find out.

As part of our continuing analysis of AARP s financial services products (earlier stories covered AARP mutual funds and AARP life insurance and annuities ), we wondered how well the huge organization was treating its 40 million members with the homeowners and auto policies it sells. So we examined the coverage and compared AARP/The Hartford prices with those of Allstate, State Farm, GEICO, and Progressive in three zip codes to answer the question, Should you put AARP on your policy shopping list?

Our answer: If you are shopping on price alone, no. You can save money in some cases a lot of money by taking your business elsewhere. But the policies do offer a few appealing features that you might find are more than worth the extra cost. And The Hartford has an impressive customer service record.

AARP has marketed The Hartford s homeowners and auto policies for 25 years and deserves credit for choosing a quality partner. The Hartford was among the top five insurers in J.D. Power and Associates 2008 homeowners and auto insurance customer service surveys. They have a reputation for working with their customers and trying to solve problems without litigating claims, compared to some of their competitors, says Amy Bach, executive director of United Policyholders. a San Francisco-based organization that advocates for consumers on home and auto insurance. The number of complaints filed against The Hartford, as tracked by the National Association of Insurance Commissioners, is below the industry average and has been declining for the past several years.

Middling Marks for Prices

AARP s homeowners and auto policies are often not the least expensive, however, which echoes what we found with its life insurance offerings. There is a cost to having some of the features in the program, acknowledges Richard Hisey, president of AARP Financial, the for-profit arm of AARP. We believe that if you re comparing apples-to-apples features, we will be cost-competitive.

For our price-shopping survey, we asked AARP/The Hartford, Allstate, State Farm, GEICO, and Progressive for quotes for a 53-year-old AARP member driving a 2008 Nissan Rogue and living in a $250,000 wood-frame house. And since the cost of the same insurance can vary by zip code, we requested quotes in Charlotte, N.C.; Scottsdale, Ariz.; and Schaumburg, Ill. We told the insurers to apply any standard auto discounts available based on his driving record and profile. Since AARP s auto rates were for 12 months and the others were for six months, we divided AARP s figures in half.

For auto insurance, AARP/The Hartford was the priciest insurer in Scottsdale and Schaumburg and in the middle of the pack in Charlotte. Progressive was the least expensive in Scottsdale, costing a whopping 42 percent less than AARP/The Hartford. GEICO was the cheapest in both Charlotte and Schaumburg, charging 28 percent less and 15 percent less, respectively, than AARP/The Hartford.

Auto Insurance Six-Month Premium

Volo Auto Museum Gets Elvis – Custom Cadillac – CBS Chicago #auto #refinance


#volo auto museum
#

Volo Auto Museum Gets Elvis Custom Cadillac

Elvis Presley had a Cadillac sedan custom-made into a station wagon to haul his musical equipment between Graceland and the airport. (Credit: Volo Auto Museum)

CHICAGO (CBS) Illinois Volo Auto Museum has a new addition for its Cars of the Rich and Famous, collection.

We ve been looking for the right Elvis car to add to our collection, Volo director Brian Grams said.

He stumbled across Elvis Presley s custom-made pink and white Cadillac station wagon while doing a Google search that led him to a classified ad.

I clicked on it and as I m reading the description, it was Elvis car, he said. Cadillac never made a station wagon. He bought a four-door sedan and had it customized into a station wagon.

The King of Rock n Roll used it to haul musical equipment between Graceland and the airport. Grams said this was the forgotten Elvis Caddy.

It was sold back in 1977, three months after he passed away, for $50,000 which was about a quarter of a million dollars in today s money. It pretty much disappeared after that, went into a private collection, he said.

One week from today, it will go on public display, part of the Volo Museum s collection of cars owned by the rich and famous.

WBBM 780’s Regine Schlesinger

New York Auto Show 2015: Cadillac, Lincoln luxury cars unveiled – CBS News #auto #for #sale #by #owner


#ny auto show
#

Cutting-edge luxury cars unveiled at the 2015 New York Auto Show

NEW YORK — When the doors opened at this year’s New York International Auto Show, CBS News got a sneak peek at the latest state-of-the-art automotive technology and design. CNET Editor-at-Large Tim Stevens took a tour the insides of two of Detroit’s top sedans — Cadillac and Lincoln.

One of Cadillac’s luxury cars that debuted was its latest flagship model, the 2016 Cadillac CT6. With 400 horsepower under the hood, there’s more to the car than its modern, breathtaking exterior.

“On the inside of course there is leather everywhere, but there are also some racier touches,” Stevens said, pointing to the brushed aluminum trim and carbon fiber on the dashboard.

But the more interesting thing is its latest in-vehicle Cadillac User Experience (CUE) infotainment system, Stevens said. CUE pairs data from Bluetooth-enabled mobile devices, USBs, SD cards and MP3 players with the system. Through the 8-inch touchscreen in the car, the users can navigate through the functions, which include receiving and sending text messages, or even streaming audio.

Another American luxury car that had crowds of people hovering towards it was the Lincoln Continental.

“It shows us a new direction of design for Lincoln,” Stevens said. “It’s long and low, and it’s beautiful. It’s kind of radical looking compared to current Lincolns.”

Even more radical is the interior design. Inside the Continental, the rear seats are inspired by luxury air travel. The seats can recline, while simultaneously the front seat moves out of the way to make room. On the center console, a work table pops up. As icing on the cake, the car comes with leather loafers that are tucked away in the back pockets.

While this is just a concept, Lincoln is promising a new full-size leather some time next year.

2015 CBS Interactive Inc. All Rights Reserved.

Volo Auto Museum Gets Elvis – Custom Cadillac – CBS Chicago #nappa #auto #parts


#volo auto museum
#

Volo Auto Museum Gets Elvis Custom Cadillac

Elvis Presley had a Cadillac sedan custom-made into a station wagon to haul his musical equipment between Graceland and the airport. (Credit: Volo Auto Museum)

CHICAGO (CBS) Illinois Volo Auto Museum has a new addition for its Cars of the Rich and Famous, collection.

We ve been looking for the right Elvis car to add to our collection, Volo director Brian Grams said.

He stumbled across Elvis Presley s custom-made pink and white Cadillac station wagon while doing a Google search that led him to a classified ad.

I clicked on it and as I m reading the description, it was Elvis car, he said. Cadillac never made a station wagon. He bought a four-door sedan and had it customized into a station wagon.

The King of Rock n Roll used it to haul musical equipment between Graceland and the airport. Grams said this was the forgotten Elvis Caddy.

It was sold back in 1977, three months after he passed away, for $50,000 which was about a quarter of a million dollars in today s money. It pretty much disappeared after that, went into a private collection, he said.

One week from today, it will go on public display, part of the Volo Museum s collection of cars owned by the rich and famous.

WBBM 780’s Regine Schlesinger

Auto and Homeowners Insurance: Is AARP Looking Out for You? CBS News #auto #dealer #supplies


#auto and home insurance
#

Auto and Homeowners Insurance: Is AARP Looking Out for You?

Last Updated Oct 9, 2009 1:34 PM EDT

The way insurance companies barrage you with television ads promising to save you money, you might think they were paying you instead of the other way around. In the case of the GEICO googly eyes or actor Dennis Haysbert hawking Allstate policies, at least it’s private companies pitching their wares. But then there are the auto insurance ads touting the $388 saved, on average, by people who switched to plans offered through AARP by The Hartford Financial Services Group. The ads also say that AARP members who own homes might save an additional $148 by switching their homeowners coverage. In this case, the trusted nonprofit is lending its name to a commercial venture. Pay less, get the AARP imprimatur. What’s not to like? Read on to find out.

As part of our continuing analysis of AARP s financial services products (earlier stories covered AARP mutual funds and AARP life insurance and annuities ), we wondered how well the huge organization was treating its 40 million members with the homeowners and auto policies it sells. So we examined the coverage and compared AARP/The Hartford prices with those of Allstate, State Farm, GEICO, and Progressive in three zip codes to answer the question, Should you put AARP on your policy shopping list?

Our answer: If you are shopping on price alone, no. You can save money in some cases a lot of money by taking your business elsewhere. But the policies do offer a few appealing features that you might find are more than worth the extra cost. And The Hartford has an impressive customer service record.

AARP has marketed The Hartford s homeowners and auto policies for 25 years and deserves credit for choosing a quality partner. The Hartford was among the top five insurers in J.D. Power and Associates 2008 homeowners and auto insurance customer service surveys. They have a reputation for working with their customers and trying to solve problems without litigating claims, compared to some of their competitors, says Amy Bach, executive director of United Policyholders. a San Francisco-based organization that advocates for consumers on home and auto insurance. The number of complaints filed against The Hartford, as tracked by the National Association of Insurance Commissioners, is below the industry average and has been declining for the past several years.

Middling Marks for Prices

AARP s homeowners and auto policies are often not the least expensive, however, which echoes what we found with its life insurance offerings. There is a cost to having some of the features in the program, acknowledges Richard Hisey, president of AARP Financial, the for-profit arm of AARP. We believe that if you re comparing apples-to-apples features, we will be cost-competitive.

For our price-shopping survey, we asked AARP/The Hartford, Allstate, State Farm, GEICO, and Progressive for quotes for a 53-year-old AARP member driving a 2008 Nissan Rogue and living in a $250,000 wood-frame house. And since the cost of the same insurance can vary by zip code, we requested quotes in Charlotte, N.C.; Scottsdale, Ariz.; and Schaumburg, Ill. We told the insurers to apply any standard auto discounts available based on his driving record and profile. Since AARP s auto rates were for 12 months and the others were for six months, we divided AARP s figures in half.

For auto insurance, AARP/The Hartford was the priciest insurer in Scottsdale and Schaumburg and in the middle of the pack in Charlotte. Progressive was the least expensive in Scottsdale, costing a whopping 42 percent less than AARP/The Hartford. GEICO was the cheapest in both Charlotte and Schaumburg, charging 28 percent less and 15 percent less, respectively, than AARP/The Hartford.

Auto Insurance Six-Month Premium

Should you buy a certified used car? CBS News #cheap #auto #parts


#where to buy used cars
#

Should you buy a certified used car?

As gas prices have fallen, U.S. new car sales have surged. But buyers are snapping up certified used cars as well, with certified sales in November up 21 percent over a year earlier, according to CNW research.

Thrifty habits developed during the recession are leading buyers to what the industry calls certified pre-owned vehicles, says senior analyst Karl Brauer of Kelley Blue Book and kbb.com. “The last recession increased the price sensitivity of car buyers, driving many to consider certified pre-owned for the first time,” says Brauer. Certified cars typically get a thorough inspection and repair of defects at a dealership, along with an additional warranty.

If you share that price sensitivity, consider a certified used car rather than a new car. You should look to save at least $2,000 to $3,000 with a good deal on a certified used car of the previous model year vs. a new car, says Alec Gutierrez, another Kelley senior analyst.

Gutierrez points out, however, that certified deals vary widely depending on how fast a given model depreciates. He cites the following examples:

  • A Honda Accord is known for holding its value. A 2015 Accord EX-L lists for $27,406 and a 2014 certified used one for $26,129 — a savings of just $1,277.
  • A Ford Escape SE, with about average depreciation, sells as a 2015 for $25,421 but as a 2014 certified car for $21,624. That is a savings of $3,797.
  • As an example of big savings, Gutierrez cited the Kia Cadenza large sedan selling as a 2015 for $33,447. A certified used 2014 model could be bought for $25,622 — a savings of $7,825. Among luxury brands, he suggests likely good certified deals for the Cadillac XTS sedan and the Infiniti Q60 coupe or convertible.

If you are considering a certified used car, take these additional factors into account:

Avoid independent used car lots. Independents may advertise certified deals, but you can not be sure the standards are as high as in manufacturer-backed programs.

Make sure the auto maker backs the warranty. Even at a franchised dealer, double check that the warranty on the certified car is, for example, from Ford or General Motors — not an independent warranty company.

Consider certified with older cars. Many cars returning after being leased are three years old. People who lease cars have incentives to keep the car in good shape in order to avoid penalties at lease end. “If the vehicle is passing the manufacturer’s process to get certified, a buyer can be confident it is a solid vehicle — and has coverage if a problem does develop,” says Gutierrez.

Even as the economy recovers, buyers’ appetite for certified used cars is likely to continue. “The awareness and advantages of certified pre-owned have extended to a larger percentage of car buyers in recent years, reaching sufficient critical mass to keep growing steadily going forward,” says analyst Karl Brauer.

2014 CBS Interactive Inc. All Rights Reserved.

How to get the best deal on a used car – CBS News #auto #service #manuals


#best used cars
#

How to get the best deal on a used car

(MoneyWatch) Used car prices will decline in coming months, forecasters say. And new technology can help bargain-hunters know how much they should pay for a vehicle.

A service with the whimsical name of MyVinny.com lets you download an application and scan the Vehicle Identification Number (VIN) of any car you are considering. MyVinny will tell you the average wholesale price for that model and thus how to shoot for a good deal.

During the recession that followed the housing crash, used car prices rose because of shrinking supply, as fewer people bought new cars and traded in used ones. But now, because of a combination of more used car trade-ins and lease returns plus rebates and discounting from competing new cars, used prices are likely to decline. “Wholesale values are likely to moderate in coming months due to increased supply,” said Tom Webb, chief economist for used car auction business Manheim.

Buying a used car saves money by avoiding the depreciation inevitable with a new car. But, as a shopper, you have a tougher time finding out an appropriate target price. With a new car you can find out what the dealer paid by looking up the invoice price for that model on websites such as Kelley Blue Book and Edmunds.com. But with a used car, you typically have little idea of the wholesale price of that model as it changed hands at auctions. By collecting auction data, MyVinny.com gives you that price.

The wholesale price data is valuable especially if you are buying from a new or used car dealer. You can get a cheaper price on a similar car from a private seller. But you will get no warranty in the deal and probably have no recourse if something goes wrong with the car.

So if you are heading out to shop for a used car, take these steps:

  • Find out the average retail price for sale by dealers by checking Kelley Blue Book and Edmunds.com. Then look up ads by dealers in your area on a site such as AutoTrader.com.
  • Get the average trade-in value on the pricing sites. If you are shopping at a new car dealership, the car may have been taken in trade on a new model. In that case, the acquisition price usually is even lower than the wholesale auction price.
  • Get the wholesale price. Having downloaded the free Vinny app from the Apple Store or Google Play, scan the VIN number on a car you are considering (usually on a plaque either on the dashboard on the driver’s side or on the door post visible when the door is open.) Within a few seconds, you will get back the wholesale price.
  • In talking to the dealer salesperson, try to find out if the car is a trade-in. He or she might tell you it was traded in while trying to convince you the car is in good condition. If it was traded in, the dealership’s cost basis was likely lower than the wholesale price.

    Take the case of a top-selling midsize sedan, a 2011 Toyota Camry SE. Assuming it has 30,000 miles and typical options, Edmunds lists the dealer retail price at $17,038. The MyVinny average wholesale price for 2011 Camrys is $14,765. And the trade-in value is $14,258. So the dealer stands to make around $2,780 if the car is a trade-in and $2,273 on an auction car.

    Alternatively, let’s say you are looking at an auction car. Set your aim at getting the Camry for $1,000 over the wholesale price while letting the salesperson know you are aware of that wholesale number. But start out bidding $500 over the wholesale price, with a goal of ending up at $1,000 over, or $15,765. That is still 8 percent profit for the dealer.

    If the dealership won’t meet your target, you have to decide how badly you want the car. But don’t go much above $16,000 — or about $1,000 off the original asking price. Especially with a popular car like the Camry, there is always another dealer to offer a competing price.

    As with buying new cars, doing your research means saving money while still getting a used car you want.

    2013 CBS Interactive Inc. All Rights Reserved.

    Should you buy a certified used car? CBS News #auto #wrecking #yards


    #where to buy used cars
    #

    Should you buy a certified used car?

    As gas prices have fallen, U.S. new car sales have surged. But buyers are snapping up certified used cars as well, with certified sales in November up 21 percent over a year earlier, according to CNW research.

    Thrifty habits developed during the recession are leading buyers to what the industry calls certified pre-owned vehicles, says senior analyst Karl Brauer of Kelley Blue Book and kbb.com. “The last recession increased the price sensitivity of car buyers, driving many to consider certified pre-owned for the first time,” says Brauer. Certified cars typically get a thorough inspection and repair of defects at a dealership, along with an additional warranty.

    If you share that price sensitivity, consider a certified used car rather than a new car. You should look to save at least $2,000 to $3,000 with a good deal on a certified used car of the previous model year vs. a new car, says Alec Gutierrez, another Kelley senior analyst.

    Gutierrez points out, however, that certified deals vary widely depending on how fast a given model depreciates. He cites the following examples:

    • A Honda Accord is known for holding its value. A 2015 Accord EX-L lists for $27,406 and a 2014 certified used one for $26,129 — a savings of just $1,277.
    • A Ford Escape SE, with about average depreciation, sells as a 2015 for $25,421 but as a 2014 certified car for $21,624. That is a savings of $3,797.
    • As an example of big savings, Gutierrez cited the Kia Cadenza large sedan selling as a 2015 for $33,447. A certified used 2014 model could be bought for $25,622 — a savings of $7,825. Among luxury brands, he suggests likely good certified deals for the Cadillac XTS sedan and the Infiniti Q60 coupe or convertible.

    If you are considering a certified used car, take these additional factors into account:

    Avoid independent used car lots. Independents may advertise certified deals, but you can not be sure the standards are as high as in manufacturer-backed programs.

    Make sure the auto maker backs the warranty. Even at a franchised dealer, double check that the warranty on the certified car is, for example, from Ford or General Motors — not an independent warranty company.

    Consider certified with older cars. Many cars returning after being leased are three years old. People who lease cars have incentives to keep the car in good shape in order to avoid penalties at lease end. “If the vehicle is passing the manufacturer’s process to get certified, a buyer can be confident it is a solid vehicle — and has coverage if a problem does develop,” says Gutierrez.

    Even as the economy recovers, buyers’ appetite for certified used cars is likely to continue. “The awareness and advantages of certified pre-owned have extended to a larger percentage of car buyers in recent years, reaching sufficient critical mass to keep growing steadily going forward,” says analyst Karl Brauer.

    2014 CBS Interactive Inc. All Rights Reserved.

    Auto and Homeowners Insurance: Is AARP Looking Out for You? CBS News #refinance #auto #loan #with #bad #credit


    #auto and home insurance
    #

    Auto and Homeowners Insurance: Is AARP Looking Out for You?

    Last Updated Oct 9, 2009 1:34 PM EDT

    The way insurance companies barrage you with television ads promising to save you money, you might think they were paying you instead of the other way around. In the case of the GEICO googly eyes or actor Dennis Haysbert hawking Allstate policies, at least it’s private companies pitching their wares. But then there are the auto insurance ads touting the $388 saved, on average, by people who switched to plans offered through AARP by The Hartford Financial Services Group. The ads also say that AARP members who own homes might save an additional $148 by switching their homeowners coverage. In this case, the trusted nonprofit is lending its name to a commercial venture. Pay less, get the AARP imprimatur. What’s not to like? Read on to find out.

    As part of our continuing analysis of AARP s financial services products (earlier stories covered AARP mutual funds and AARP life insurance and annuities ), we wondered how well the huge organization was treating its 40 million members with the homeowners and auto policies it sells. So we examined the coverage and compared AARP/The Hartford prices with those of Allstate, State Farm, GEICO, and Progressive in three zip codes to answer the question, Should you put AARP on your policy shopping list?

    Our answer: If you are shopping on price alone, no. You can save money in some cases a lot of money by taking your business elsewhere. But the policies do offer a few appealing features that you might find are more than worth the extra cost. And The Hartford has an impressive customer service record.

    AARP has marketed The Hartford s homeowners and auto policies for 25 years and deserves credit for choosing a quality partner. The Hartford was among the top five insurers in J.D. Power and Associates 2008 homeowners and auto insurance customer service surveys. They have a reputation for working with their customers and trying to solve problems without litigating claims, compared to some of their competitors, says Amy Bach, executive director of United Policyholders. a San Francisco-based organization that advocates for consumers on home and auto insurance. The number of complaints filed against The Hartford, as tracked by the National Association of Insurance Commissioners, is below the industry average and has been declining for the past several years.

    Middling Marks for Prices

    AARP s homeowners and auto policies are often not the least expensive, however, which echoes what we found with its life insurance offerings. There is a cost to having some of the features in the program, acknowledges Richard Hisey, president of AARP Financial, the for-profit arm of AARP. We believe that if you re comparing apples-to-apples features, we will be cost-competitive.

    For our price-shopping survey, we asked AARP/The Hartford, Allstate, State Farm, GEICO, and Progressive for quotes for a 53-year-old AARP member driving a 2008 Nissan Rogue and living in a $250,000 wood-frame house. And since the cost of the same insurance can vary by zip code, we requested quotes in Charlotte, N.C.; Scottsdale, Ariz.; and Schaumburg, Ill. We told the insurers to apply any standard auto discounts available based on his driving record and profile. Since AARP s auto rates were for 12 months and the others were for six months, we divided AARP s figures in half.

    For auto insurance, AARP/The Hartford was the priciest insurer in Scottsdale and Schaumburg and in the middle of the pack in Charlotte. Progressive was the least expensive in Scottsdale, costing a whopping 42 percent less than AARP/The Hartford. GEICO was the cheapest in both Charlotte and Schaumburg, charging 28 percent less and 15 percent less, respectively, than AARP/The Hartford.

    Auto Insurance Six-Month Premium

    Auto Leasing: Sweet Car Deals on Lease Takeovers – CBS News #auto #speakers


    #auto lease deals
    #

    Auto Leasing: Sweet Car Deals on Lease Takeovers

    Last Updated Jun 1, 2011 1:24 PM EDT

    Let’s say you are itching for a new and different car, maybe one with much better gas mileage. But a visit to the dealership turned up a limited selection and a high selling price. Why not stall? By taking over a lease with a year or two until expiration, you can delay your next purchase until the new-car inventory situation improves.

    “Production issues in Japan have triggered price increases across the board for all makes, foreign and domestic,” says CEO Jeremy Anwyl of auto information site Edmunds.com. “The average price of a new Honda Civic, for example, has gone up more than $1,600 since March.” Looking at a lease-swapping deal is one of several ways Edmunds suggests shoppers avoid buying an overpriced new car now.

    Lease holders frequently need to get out of their current leases, and for a variety of reasons — from financial setbacks to a growing family that won’t fit in that sporty convertible. The web site LeaseTrader.com handled 75,000 of these swaps last year. Traditionally, the leases being offered have been for BMW, Mercedes-Benz or other luxury brands, because leasing is more prevalent among luxury cars. “But now we are seeing more leases [offered] for small, high-gas-mileage cars,” says John Sternal, a vice president of LeaseTrader.com.

    For instance, among current offerings are several for the Toyota Prius, one of the cars hardest hit by Japanese supply disruptions. One especially low-payment deal is for a silver 2010 Prius in Miami; the lease is $210 a month, with 22 months left to run. If you needed a shorter lease, a blue 2008 model in the New York City suburbs has payments of $355 a month but just nine months to go.

    Beyond the possibility of getting a higher-MPG car now, picking up a lease can be a chance to try out a luxury model you are considering but not yet ready to commit to. There’s a 2009 BMW 535 iXdrive sedan in San Ramon, Calif. for instance, with monthly payments of $699 and 13 months to run.

    So how does the transfer process work?

    • LeaseTrader charges moderate fees. Shoppers pay $39 initially; if they complete a deal, there’s a $149 fee for the paperwork involved in the transfer. Before doing any deal, however, inquire about transfer fees from the bank or leasing company that holds the lease: That transfer fee can be as little as $50 or as much as $600.
    • Transfers work best in the same geographic region. If you can drive with a friend or fly one-way inexpensively and then pick up the car, it minimizes costs. LeaseTrader can set up cross-country transfers for you, but the price runs about $1,000.
    • Get an inspection if you can’t see the car. If you are considering a lease swap from far away, make sure the car is in good shape by hiring a professional inspector. (See Should You Buy a Car You Haven’t Seen? )

    If lease swapping doesn’t seem right for you, Edmunds is offering some additional suggestions for avoiding the high price and tight selection of the current new-car market:

    Just Be Patient. If the car you are driving is still serviceable, patience is a virtue. Most analysts believe that by early or mid-2012, automakers will have solved the supply problems for new cars and the parts that go into them. That should mean better selection and much better prices at the dealership.

    Extend Your Own Lease. If you are leasing now and that lease is near expiration, see if the leasing company will consider extending your lease by six months or so. That should put you in a better situation for a new lease or purchase.

    Don’t Jump for a Used Car. When new car prices are high, buyers traditionally have switched to less-expensive used cars. But this year, limited supply has caused used car prices to shoot up. (See Used Car Prices Surging .)

    Whatever your situation, analyze your costs carefully before making any commitment. For instance, calculate the likely gas savings from getting a higher-MPG car. Gas will remain expensive. But it already has dropped from its peak near $4 national average for regular to below $3.80. Don’t let your annoyance at high pump prices push you into an ill-advised move.

    Photos courtesy of the manufacturers

    2011 CBS Interactive Inc. All Rights Reserved.

    Avoid These 5 Used Cars (Plus 5 to Buy) – CBS News #oriellys #auto #parts


    #where to buy used cars
    #

    Avoid These 5 Used Cars (Plus 5 to Buy)

    Last Updated Jul 19, 2011 11:49 AM EDT

    This story is based on 2010 data. For the 2011 version, click here .

    Used car shopping used to be a scary maze of breakdown-prone models, but reliability has gained sharply. Auto manufacturing quality and dependability studies have shown steady gains this decade. But exceptions do exist and if you’re in the market for a used car, you want to steer clear of them.

    So CBS MoneyWatch.com has compiled a list of used cars to avoid in five categories, focusing on 2007 models-the year from the latest J.D. Power and Associates dependability study. Buying a three-year-old car also lets you shop after the bulk of depreciation has taken place. If you’re considering a more recent model used car, study the comparisons in Flash: New Cars Cost Less than Used Cars which take into account new car financing deals vs. one-year old certified used cars.

    To make our list of used-car rejects, a model had to score the minimum two out of five in the J.D. Power “circle ratings ” for dependability–a below-average ranking. It also had to be ranked below average as a used car by Consumer Reports in its annual April car issue and online car rankings.

    Play Video

    MoneyWatch

    Save on Your Next Car

    If you’re shopping for a car, you’ll find dealers aren’t offering as many bargains as in the past. Jill Schlesinger has 3 ways to find a good dea.

    Here are our used cars to avoid, by category, plus better used car alternatives:

    Small Used Car to Avoid: Volkswagen New Beetle. Sure, it’s adorable, but the 2007 New Beetle is also trouble-prone. Owners who responded to the Consumer Reports reliability survey reported problems with the fuel and electrical systems, the suspension, brakes, power windows, and other power equipment. The convertible model sells on dealers’ lots for $17,055, according to Kelley Blue Book at kbb.com.

    Small Used Car Alternative: Ford Focus . It may not be as stylish as the Beetle, but it’s a lot more reliable. In fact, the Focus got the J.D. Power award as most reliable compact car. Owners of the 2007 Focus who responded to Consumer Reports reported no major trouble spots. And it’s much cheaper than the Beetle. The Kelley Blue Book dealer price is $10,905.

    Mid-Size Used Car to Avoid: Chrysler Sebring. The 2007 Sebring sedan not only got just two circles from J.D. Power, Consumer Reports reported a laundry list of problems: engine cooling, minor transmission problems, the drive system, suspension, brakes and more. The low $12,365 dealer price isn’t worth it.

    Mid-Size Used Car Alternative: Buick LaCrosse. Winner of the J.D. Power dependability award in this category, the 2007 LaCrosse got an above-average used-car rating from Consumer Reports. It’s a good value at a dealer price for the CX version at $14,430.

    Small Used SUV to Avoid: Jeep Wrangler. King of the off-road, the 2007 Wrangler can climb over almost any obstacle except a reliability test. Owners of the two-door version responding to Consumer Reports reported major transmission problems and issues with the electrical system and brakes. And it’s selling on dealer lots at a relatively expensive $19,850.

    Small Used SUV Alternative: Honda CR-V. A lot less noticeable than a Wrangler, the Honda CR-V is a lot less trouble, too. It won the J.D. Power dependability award in this category and is rated by Consumer Reports as a well-above-average used car prospect. As a used-car buyer, you are on the wrong side of Honda models’ strong ability to hold their value. But at a dealer price of $20,980, the four-wheel-drive version of the CR-V is still a decent value.

    Mid-Size SUV to Avoid: GMC Acadia. The 2007 Acadia is a good example of the time-honored rule to avoid buying the first year of a model. It not only got a below-average two circles from J.D. Power, it received a much-worse-than-average used car rating from Consumer Reports. CR readers who owned the 2007 reported problems with the drive system, suspension, body integrity and power equipment. In addition, the all-wheel-drive version on dealers’ lots is priced at an expensive $28,435, according to Kelly Blue Book.

    Mid-Size SUV Alternative-Honda Pilot. One of a handful of mid-size SUVs to get four circles from J.D. Power, the Pilot is rated well-above-average by Consumer Reports. (Its corporate stablemate, the Accord Crosstour, actually won the J.D. Power award. But many reviewers find its modified-sedan style not big enough to provide true SUV cargo or passenger room.) The Pilot is selling for $23,395-some $5,000 less than the GMC Acadia.

    Used Minivan to Avoid: Nissan Quest. Never a strong contender in this category, the Quest gets a below-average used car rating from Consumer Reports and two circles from Power. Owners of the 2007 reported problems with the fuel and climate system, brakes and body integrity. The Quest is selling at $17,395.

    Used Minivan alternative: Toyota Sienna. This van gets four J.D. Power circles and an above-average CR used car rating. Not part of the Toyota sudden-acceleration recall, the Sienna is selling at a dealers’ price of $20,280 for the CE trim level.

    Photos courtesy of the manufacturers

    More from MoneyWatch

    CBS Mitsubishi #consumer #reports #auto


    #quality used cars
    #

    Welcome to CBS Mitsubishi serving the greater Raleigh, NC area.

    CBS Mitsubishi is a Mitsubishi Auto Dealer

    Our goal is to make your car buying experience the best possible. CBS Mitsubishi’s virtual dealership offers a wide variety of new and used cars. Mitsubishi incentives, service specials, and Mitsubishi parts savings. Conveniently located in Raleigh, NC we also serve Durham, NC and Cary, NC.

    If you’re looking to purchase your new dream car. you’ve come to the right place. At CBS Mitsubishi we pride ourselves on being the most reliable and trustworthy Mitsubishi dealer around. Our inventory is filled with some of the sweetest rides you’ve ever seen!

    The Mitsubishi Dealer You Can Count On

    We’re the kind of Mitsubishi dealer that takes the time and listens to the wants and needs of our clients. We understand that buying a car is a process that takes a certain amount of careful consideration.

    It’s a lot to wrap your head around but at CBS Mitsubishi we do our best to make the car buying experience an easy one. We’re the kind of Raleigh, NC car dealer that helps you decide exactly what you’re looking for. We won’t ever make a sale that our customers will end up being unhappy with. We’re proud to be the type of Raleigh, NC Mitsubishi dealer that strives for 100% customer satisfaction.

    There are several important factors to take into account when choosing a car:

    1. How many people do you drive with every day?
    2. How far do you drive on a daily basis?
    3. What does your gasoline budget look like?
    4. How much money are you looking to spend on your new car?
    5. Do you need financial assistance ?

    Mitsubishis For Everyone

    We are the Raleigh, NC car dealership that caters for a whole variety of clientele. We understand that all of our clients have different financial situations and have done our best to ensure that our cars come in a variety of different shapes and sizes, and that their price tags vary as well. We not only have an amazing selection of brand new cars but have also acquired an impressive selection of used vehicles that are just as fantastic.

    Because our customers are so important to us, we’ll also take the time to find you some great financing options if you need them. At some point in our lives we all need a little financial boost, and at CBS Mitsubishi we do our best to find a reasonable loan that enables you to purchase the car you’ve always dreamed of.

    If you would like to get in touch with us please don’t hesitate to give us a call at (919) 794-4101 or stop by for a visit .

    CBS Mitsubishi’s range of car services includes:

    Servicing Your Mitsubishi Vehicle

    Mitsubishi Car Shopping Quick Links

    Guide To The Miami International Auto Show – CBS Miami #auto #carriers


    #miami auto show
    #

    Guide To The Miami International Auto Show

    Miami International Auto Show

    Miami Beach Convention Center

    1901 Convention Center Drive

    Miami Beach, FL 33139

    (305) 673-7311

    Friday, November 8th: 5 p.m. to 11 p.m.

    Tickets for the Auto Show are $12 for adults and $6 for kids, ages 6-12 (kids under 5 enter free). The Camp Jeep event will be opened but the Ride Drive won t open until Saturday. Popular attractions in addition to exhibits are Million Dollar Alley – only the most expensive, beautiful, state-of-the-art cars in this area, Topless in Miami – convertibles and Havana Classics and antique models of cars from the 1950s. Off-site parking is the best option with the 17th Street garage across the street within walking distance of the Convention Center. There is another lot within walking distance (Lot P29) and it is next to the 17th Street garage.

    Saturday, Sunday Monday: 11 a.m. to 11 p.m.

    The doors open at 11 a.m. and don t close until 11 p.m. The Ride Drive event should be the first stop as cars can be test driven by patrons attending the event. Companies like Buick, Cadillac, Chrysler, Scion, VW and Toyota will have cars available to drive. The Ride Drive event will only be open during the opening and closing weekend and will surely have a long line as soon as the doors are opened. Patrons must present a valid driver s license and, depending on the vehicle, be at least between 18 and 21 years old to drive the cars. The Camp Jeep attraction features drivers who show patrons the performance of a Jeep vehicle over different terrains (rocky trails, log crossings) and inclines. It allows patrons to have an interactive experience with the car outside merely walking around from exhibit to exhibit.

    Tuesday through Friday: 2 p.m. to 11 p.m.

    The entire Auto Show may not be able to be seen in one day with the great attractions and amount of people attending, so during the week, patrons can make a second trip and check out the rest. Exhibitors such as McLaren Automotive, Rolls-Royce, Bentley, Aston Martin, Lotus and Ferrari will be on hand and patrons can have their picture taken sitting in these luxurious cars dreaming for a brief while of driving the performance automobiles. Together with the Havana Classics area, the Auto Show also has an area called Memory Lane with additional antique cars from the 50s, 60s and 70s popular in the U.S. The Smart Car company will also have an exhibit to show off its recyclable car (85% recycled parts). The doors open at 2 p.m. during the week and will probably peak after work hours.

    The final days of the Auto Show make the Ride Drive event available to patrons once more. Patrons can drive Mazdas, Kias and Toyotas as they replace Hyundai, Scion and VW who will only offer cars to drive on opening weekend. Patrons who are interested in buying a car can t do so at the Auto Show but will be given information on nearby dealerships that have the cars in stock so they can contact them for more details. On Saturday, the show will close again at 11 p.m. but Sunday it will end at 9 p.m. so anyone who hasn t gone should be aware of this to avoid arriving late.

    Eric L Labrador is a freelance writer covering all things Miami. His work can be found on Examiner.com .

    Lawsuit: Bronzeville Auto Dealership Has Racially Hostile Environment – CBS Chicago #auto #loan #calculators


    #rogers auto group
    #

    Lawsuit: Bronzeville Auto Dealership Has Racially Hostile Environment

    Rogers Auto in Chicago s Bronzeville neighborhood. (CBS)

    CHICAGO (CBS) – Color and cars should refer to red, silver and blue paint choices.

    But for a group of men, they say color made working for Rogers Auto in Bronzeville a painful experience. Color in this case refers to the color of their skin.

    The salesmen filed a lawsuit Thursday, CBS 2’s Dana Kozlov reports.

    The plaintiffs say they were subjected to religious slurs daily, including “watermelon boys,” “boy,” “bin Laden,” and the N word.

    “The blatant racism, the comments I couldn t believe it,” says Fred Redeaux, a former auto salesman.

    Redeaux is one of six employees or former employees five African American and one Muslim who say they banded together after hearing enough. Their lawsuit claims racial and religious harassment in the workplace.

    “I got tired of going home every night and couldn t even look at myself in the mirror, knowing that I didn t defend myself, I didn’t defend my co-workers,” salesman Aziz Tayeh says.

    The plaintiffs say their complaints to management went nowhere. Their attorney also filed a complaint with the EEOC, claiming religious harassment, and sent letters to the dealer s owner, citing a racially hostile environment.

    “They fired two of the guys right away, and another one of my clients just couldn’t take it anymore,” attorney Eugene Hollander says.

    Despite the lawsuit,  Dion Turner, Charles Barnett and Tayeh still work there.

    “I have to provide for my family. I just can t get up and leave. I have to swallow my pride and work,” Tayeh says.

    “Am I comfortable with this? No, but at some point it’s got to stop,” Barnett says.

    The dealership s owner, Monte Sher, says he hasn t seen the lawsuit yet.

    But he says it s malicious and unfounded, adding every manager and employee is given a handbook with a strict code of conduct.

    The six plaintiffs acknowledge they didn t document the alleged harassment.  Their attorney says they didn t think they needed to.

    Avoid These 5 Used Cars (Plus 5 to Buy) – CBS News #auto #exchange


    #where to buy used cars
    #

    Avoid These 5 Used Cars (Plus 5 to Buy)

    Last Updated Jul 19, 2011 11:49 AM EDT

    This story is based on 2010 data. For the 2011 version, click here .

    Used car shopping used to be a scary maze of breakdown-prone models, but reliability has gained sharply. Auto manufacturing quality and dependability studies have shown steady gains this decade. But exceptions do exist and if you’re in the market for a used car, you want to steer clear of them.

    So CBS MoneyWatch.com has compiled a list of used cars to avoid in five categories, focusing on 2007 models-the year from the latest J.D. Power and Associates dependability study. Buying a three-year-old car also lets you shop after the bulk of depreciation has taken place. If you’re considering a more recent model used car, study the comparisons in Flash: New Cars Cost Less than Used Cars which take into account new car financing deals vs. one-year old certified used cars.

    To make our list of used-car rejects, a model had to score the minimum two out of five in the J.D. Power “circle ratings ” for dependability–a below-average ranking. It also had to be ranked below average as a used car by Consumer Reports in its annual April car issue and online car rankings.

    Play Video

    MoneyWatch

    Save on Your Next Car

    If you’re shopping for a car, you’ll find dealers aren’t offering as many bargains as in the past. Jill Schlesinger has 3 ways to find a good dea.

    Here are our used cars to avoid, by category, plus better used car alternatives:

    Small Used Car to Avoid: Volkswagen New Beetle. Sure, it’s adorable, but the 2007 New Beetle is also trouble-prone. Owners who responded to the Consumer Reports reliability survey reported problems with the fuel and electrical systems, the suspension, brakes, power windows, and other power equipment. The convertible model sells on dealers’ lots for $17,055, according to Kelley Blue Book at kbb.com.

    Small Used Car Alternative: Ford Focus . It may not be as stylish as the Beetle, but it’s a lot more reliable. In fact, the Focus got the J.D. Power award as most reliable compact car. Owners of the 2007 Focus who responded to Consumer Reports reported no major trouble spots. And it’s much cheaper than the Beetle. The Kelley Blue Book dealer price is $10,905.

    Mid-Size Used Car to Avoid: Chrysler Sebring. The 2007 Sebring sedan not only got just two circles from J.D. Power, Consumer Reports reported a laundry list of problems: engine cooling, minor transmission problems, the drive system, suspension, brakes and more. The low $12,365 dealer price isn’t worth it.

    Mid-Size Used Car Alternative: Buick LaCrosse. Winner of the J.D. Power dependability award in this category, the 2007 LaCrosse got an above-average used-car rating from Consumer Reports. It’s a good value at a dealer price for the CX version at $14,430.

    Small Used SUV to Avoid: Jeep Wrangler. King of the off-road, the 2007 Wrangler can climb over almost any obstacle except a reliability test. Owners of the two-door version responding to Consumer Reports reported major transmission problems and issues with the electrical system and brakes. And it’s selling on dealer lots at a relatively expensive $19,850.

    Small Used SUV Alternative: Honda CR-V. A lot less noticeable than a Wrangler, the Honda CR-V is a lot less trouble, too. It won the J.D. Power dependability award in this category and is rated by Consumer Reports as a well-above-average used car prospect. As a used-car buyer, you are on the wrong side of Honda models’ strong ability to hold their value. But at a dealer price of $20,980, the four-wheel-drive version of the CR-V is still a decent value.

    Mid-Size SUV to Avoid: GMC Acadia. The 2007 Acadia is a good example of the time-honored rule to avoid buying the first year of a model. It not only got a below-average two circles from J.D. Power, it received a much-worse-than-average used car rating from Consumer Reports. CR readers who owned the 2007 reported problems with the drive system, suspension, body integrity and power equipment. In addition, the all-wheel-drive version on dealers’ lots is priced at an expensive $28,435, according to Kelly Blue Book.

    Mid-Size SUV Alternative-Honda Pilot. One of a handful of mid-size SUVs to get four circles from J.D. Power, the Pilot is rated well-above-average by Consumer Reports. (Its corporate stablemate, the Accord Crosstour, actually won the J.D. Power award. But many reviewers find its modified-sedan style not big enough to provide true SUV cargo or passenger room.) The Pilot is selling for $23,395-some $5,000 less than the GMC Acadia.

    Used Minivan to Avoid: Nissan Quest. Never a strong contender in this category, the Quest gets a below-average used car rating from Consumer Reports and two circles from Power. Owners of the 2007 reported problems with the fuel and climate system, brakes and body integrity. The Quest is selling at $17,395.

    Used Minivan alternative: Toyota Sienna. This van gets four J.D. Power circles and an above-average CR used car rating. Not part of the Toyota sudden-acceleration recall, the Sienna is selling at a dealers’ price of $20,280 for the CE trim level.

    Photos courtesy of the manufacturers

    More from MoneyWatch

    CBS Mitsubishi #american #auto


    #quality used cars
    #

    Welcome to CBS Mitsubishi serving the greater Raleigh, NC area.

    CBS Mitsubishi is a Mitsubishi Auto Dealer

    Our goal is to make your car buying experience the best possible. CBS Mitsubishi’s virtual dealership offers a wide variety of new and used cars. Mitsubishi incentives, service specials, and Mitsubishi parts savings. Conveniently located in Raleigh, NC we also serve Durham, NC and Cary, NC.

    If you’re looking to purchase your new dream car. you’ve come to the right place. At CBS Mitsubishi we pride ourselves on being the most reliable and trustworthy Mitsubishi dealer around. Our inventory is filled with some of the sweetest rides you’ve ever seen!

    The Mitsubishi Dealer You Can Count On

    We’re the kind of Mitsubishi dealer that takes the time and listens to the wants and needs of our clients. We understand that buying a car is a process that takes a certain amount of careful consideration.

    It’s a lot to wrap your head around but at CBS Mitsubishi we do our best to make the car buying experience an easy one. We’re the kind of Raleigh, NC car dealer that helps you decide exactly what you’re looking for. We won’t ever make a sale that our customers will end up being unhappy with. We’re proud to be the type of Raleigh, NC Mitsubishi dealer that strives for 100% customer satisfaction.

    There are several important factors to take into account when choosing a car:

    1. How many people do you drive with every day?
    2. How far do you drive on a daily basis?
    3. What does your gasoline budget look like?
    4. How much money are you looking to spend on your new car?
    5. Do you need financial assistance ?

    Mitsubishis For Everyone

    We are the Raleigh, NC car dealership that caters for a whole variety of clientele. We understand that all of our clients have different financial situations and have done our best to ensure that our cars come in a variety of different shapes and sizes, and that their price tags vary as well. We not only have an amazing selection of brand new cars but have also acquired an impressive selection of used vehicles that are just as fantastic.

    Because our customers are so important to us, we’ll also take the time to find you some great financing options if you need them. At some point in our lives we all need a little financial boost, and at CBS Mitsubishi we do our best to find a reasonable loan that enables you to purchase the car you’ve always dreamed of.

    If you would like to get in touch with us please don’t hesitate to give us a call at (919) 794-4101 or stop by for a visit .

    CBS Mitsubishi’s range of car services includes:

    Servicing Your Mitsubishi Vehicle

    Mitsubishi Car Shopping Quick Links

    How to get the best auto lease deals now – CBS News #fallon #auto #mall


    #auto lease deals
    #

    How to get the best auto lease deals now

    • Jerry Edgerton
    • MoneyWatch

    Oct 8, 2013 7:00 AM EDT

    2013 Honda Accord Coupe Close

    Honda

    (MoneyWatch) As the air turns crisp and the leaves turn color, auto dealers are just trying to turn over their remaining summer inventory. That results in some of the best low-payment lease deals in recent months — especially on 2013 versions of popular midsize cars like the Honda Accord and Hyundai Sonata.

    With the 2014 model year underway, manufacturers are offering subsidized leases to help their dealers clear out the remaining 2013 models. And there are even some attractive lease deals on 2014 models. In any case you need to understand leasing and how it works so you can negotiate the best possible deal on these and other models.

    Any lease deal contains three factors that, along with the length of the lease, determine what the monthly payments will be.

    • Capitalized cost. This is the equivalent of the purchase price and often can be negotiated. Research the average selling price for the model you are considering for a lease. Compare that with the capitalized cost in the lease you are offered and see if there is room for negotiation.
    • Money factor. This is the equivalent of the interest rate on a loan and usually is expressed in decimal fractions such as .0015. To get the interest rate equivalent, multiply by 2,400. That .0015 number is equivalent to 3.6 percent. Compare with current average loan rates — 2.82 percent according to Bankrate.com. Dealerships can be reluctant to disclose this number, so be persistent.
    • Residual value. This is an estimate what the car will be worth as a used vehicle at the end of the lease. Manufacturers with subsidized leases often set the residual value artificially high in order to lower payments. You can get the industry figure for any car at Cars.com residual values.

    To see how payments would change if you negotiate down the capitalized cost, put the numbers into the Bankrate.com lease calculator.

    For instance, let’s look at a Honda lease offering for the 2013 Accord coupe, the CVT-LX-S version. The lease is with no down payment and $300 a month payment for 35 months. (All payments cited are before state or local taxes). The list price is $24,990 with the capitalized cost reduced to only $24,257. The implied interest rate seems to be just below the 0.9 percent being offered on financing deals.

    But the average selling price for this car, according to Edmunds.com, is $23,306 including destination fee — well below the capitalized cost in the lease. If you have a strong credit rating and can qualify for this lease, try negotiating the dealership down to $23,300 or less. That would cut your monthly payments to about $275, according to the Bankrate.com calculator.

    Here are two other leases worth looking into according to the monthly U.S. News best lease deals:

    2013 Hyundai Sonata. Hyundai is offering its well-reviewed sedan for $199 a month for three years with $2,199 due at signing. Hyundai is using the pre-down payment price of $21,990 as the capitalized cost. Average selling price, according to price service TrueCar.com is $19,604. So aim to negotiate down the capitalized cost toward that level.

    2014 Chevrolet Equinox. If you are looking for an SUV, Chevrolet is offering its Equinox at $199 per month for 36 months with $3,439 due at signing. The $25,235 manufacturer’s suggested retail price is used in the lease. Instead, try to negotiate the capitalized cost down to at least $24,450, cited by TrueCar as the average selling price.

    With nationally subsidized leases, the residual value and money factor — the interest rate equivalent — often are set by the manufacturer. But with such leases or other lease offers you get, negotiate hard on the capitalized cost to get your payments down.

    How to get the best deal on a used car – CBS News #ppg #auto #paint


    #best used cars
    #

    How to get the best deal on a used car

    (MoneyWatch) Used car prices will decline in coming months, forecasters say. And new technology can help bargain-hunters know how much they should pay for a vehicle.

    A service with the whimsical name of MyVinny.com lets you download an application and scan the Vehicle Identification Number (VIN) of any car you are considering. MyVinny will tell you the average wholesale price for that model and thus how to shoot for a good deal.

    During the recession that followed the housing crash, used car prices rose because of shrinking supply, as fewer people bought new cars and traded in used ones. But now, because of a combination of more used car trade-ins and lease returns plus rebates and discounting from competing new cars, used prices are likely to decline. “Wholesale values are likely to moderate in coming months due to increased supply,” said Tom Webb, chief economist for used car auction business Manheim.

    Buying a used car saves money by avoiding the depreciation inevitable with a new car. But, as a shopper, you have a tougher time finding out an appropriate target price. With a new car you can find out what the dealer paid by looking up the invoice price for that model on websites such as Kelley Blue Book and Edmunds.com. But with a used car, you typically have little idea of the wholesale price of that model as it changed hands at auctions. By collecting auction data, MyVinny.com gives you that price.

    The wholesale price data is valuable especially if you are buying from a new or used car dealer. You can get a cheaper price on a similar car from a private seller. But you will get no warranty in the deal and probably have no recourse if something goes wrong with the car.

    So if you are heading out to shop for a used car, take these steps:

    • Find out the average retail price for sale by dealers by checking Kelley Blue Book and Edmunds.com. Then look up ads by dealers in your area on a site such as AutoTrader.com.
  • Get the average trade-in value on the pricing sites. If you are shopping at a new car dealership, the car may have been taken in trade on a new model. In that case, the acquisition price usually is even lower than the wholesale auction price.
  • Get the wholesale price. Having downloaded the free Vinny app from the Apple Store or Google Play, scan the VIN number on a car you are considering (usually on a plaque either on the dashboard on the driver’s side or on the door post visible when the door is open.) Within a few seconds, you will get back the wholesale price.
  • In talking to the dealer salesperson, try to find out if the car is a trade-in. He or she might tell you it was traded in while trying to convince you the car is in good condition. If it was traded in, the dealership’s cost basis was likely lower than the wholesale price.

    Take the case of a top-selling midsize sedan, a 2011 Toyota Camry SE. Assuming it has 30,000 miles and typical options, Edmunds lists the dealer retail price at $17,038. The MyVinny average wholesale price for 2011 Camrys is $14,765. And the trade-in value is $14,258. So the dealer stands to make around $2,780 if the car is a trade-in and $2,273 on an auction car.

    Alternatively, let’s say you are looking at an auction car. Set your aim at getting the Camry for $1,000 over the wholesale price while letting the salesperson know you are aware of that wholesale number. But start out bidding $500 over the wholesale price, with a goal of ending up at $1,000 over, or $15,765. That is still 8 percent profit for the dealer.

    If the dealership won’t meet your target, you have to decide how badly you want the car. But don’t go much above $16,000 — or about $1,000 off the original asking price. Especially with a popular car like the Camry, there is always another dealer to offer a competing price.

    As with buying new cars, doing your research means saving money while still getting a used car you want.

    2013 CBS Interactive Inc. All Rights Reserved.

    Volo Auto Museum Gets Elvis – Custom Cadillac – CBS Chicago #rock #auto


    #volo auto museum
    #

    Volo Auto Museum Gets Elvis Custom Cadillac

    Elvis Presley had a Cadillac sedan custom-made into a station wagon to haul his musical equipment between Graceland and the airport. (Credit: Volo Auto Museum)

    CHICAGO (CBS) Illinois Volo Auto Museum has a new addition for its Cars of the Rich and Famous, collection.

    We ve been looking for the right Elvis car to add to our collection, Volo director Brian Grams said.

    He stumbled across Elvis Presley s custom-made pink and white Cadillac station wagon while doing a Google search that led him to a classified ad.

    I clicked on it and as I m reading the description, it was Elvis car, he said. Cadillac never made a station wagon. He bought a four-door sedan and had it customized into a station wagon.

    The King of Rock n Roll used it to haul musical equipment between Graceland and the airport. Grams said this was the forgotten Elvis Caddy.

    It was sold back in 1977, three months after he passed away, for $50,000 which was about a quarter of a million dollars in today s money. It pretty much disappeared after that, went into a private collection, he said.

    One week from today, it will go on public display, part of the Volo Museum s collection of cars owned by the rich and famous.

    WBBM 780’s Regine Schlesinger

    The best Black Friday car deals – CBS News #used #car #classifieds


    #best auto lease deals
    #

    The best Black Friday car deals

    The Black Friday craze has come to auto showrooms.

    The Thanksgiving holiday used to be nothing special for auto sales. But since dealers have begun promoting Black Friday specials, “Thanksgiving weekend accounted for twice as many sales as any other weekend in November last year,” said industry analyst Jessica Caldwell of Edmunds.com, who expects a repeat of that performance this year.

    If coping with the showroom crowds seems easier than dealing with the relatives at home, you may find a few deals of up to 20 percent off 2015 models, and in one case $8,000 cash back. Most of these deals will still be available on Saturday and Sunday, but if you feel strong enough to go shopping on Black Friday itself, here is some advice from Philip Reed, senior consumer advice editor at Edmunds:

    • Research in advance what you think is a bargain for the model you crave.
    • Make sure which dealerships are pushing the big discounts. Promotions can vary by region, and not all dealers take part in the manufacturers’ deals. Check individual dealership websites before you go shopping.
    • Go early. Even if you strike a deal quickly, delays are likely getting through the finance department.
    • Don’t expect lengthy negotiations. With many shoppers on the lot, sales people will be eager to move on to the next prospect. If the promoted price is indeed a good deal, be ready to go for it.

    Now here is a rundown by car brand of some of the best deals to be had over the Thanksgiving weekend. Most of the biggest discounts are on 2015 models that have been on the dealer’s lot for some months.

    Buick: Cash back of up to $8,000 is on offer when buying 2015 models of the LaCrosse, Regal and Veran0 sedans and the Enclave SUV. Buick also is offering a lease deal on the 2015 Encore small SUV for $175 a month for two years with just $175 down if you are currently leasing a non-General Motors vehicle.

    Chevrolet: Chevy is offering 20 per cent cash back on 2015 Cruze, Impala and Malibu sedans and the Camaro SS sport coupe pictured above.

    GMC: You can get 15 percent cash back on the 2015 GMC Sierra pickup and the Acadia and Terrain SUVs.

    Chrysler: Chrysler is offering zero-percent financing for 75 months (assuming your credit rating is good) on the 2015 Chrysler 300 and the Chrysler 200 — in this case including the 2016 model.

    Ford: In its “Friends and Neighbors” pricing promotion, Ford offers you the same price available to the company’s suppliers and business associates. The percentage discount varies by model but usually means a price close to the dealer invoice number.

    Nissan: Cash back offers are up to $1,000 on 2015 models including the Altima, Sentra and Versa sedans, the Rogue small SUV, and the Titan pickup.

    Audi: Luxury brand Audi is offering a $750 to $1,000 bonus on leasing its 2016 models. These include the A3, A4, A5 and A6 sedans and couples and the Q5 SUV.

    2015 CBS Interactive Inc. All Rights Reserved.

    Tesla used cars – CBS News #vip #auto #parts


    #buy a used car
    #

    Would you buy a used car from Tesla?

    • Jerry Edgerton
    • MoneyWatch

    Nov 12, 2014 12:39 PM EST

    p Tesla’s flagship Model S sedan runs on electric power. /p Close

    Tesla

    Tesla Motors (TSLA ) founder Elon Musk is also known as the co-founder of PayPal and CEO of commercial space company SpaceX. Now he’s going into the used car business.

    Tesla is planning to sell its flagship Model S cars as certified used vehicles as people trade them in or as leases expire. The company confirmed the plan recently to Automotive News. but has not given an exact timetable.

    With the price of a new Model S topping out at over $100,000, a certified used version would give motorists a chance to own the widely lauded electric car at a lower cost. It also could add to Tesla’s profits. Profit margins for used car sales at dealerships of all brands average about 12 percent, compared with four percent for new cars.

    One hurdle before Tesla starts the program is getting regulatory approval in most of the states where it plans to sell used cars. The company has clashed with state regulators in the past over its practice of selling directly to consumers instead of through franchised dealerships.

    5 hot trends in 2015 cars

    Though the company did not respond to requests for further details on its certified pre-owned program (as it is known in industry jargon), we set out to find some answers to key questions from automotive experts. Some of their responses:

    How much is a used Model S likely to cost? Very few used Model S sales have yet taken place that could indicate the vehicle’s resale value. But Eric Ibara, director of residual value consulting for Kelley Blue Book, made a comparison to a used German luxury model offering certified programs.

    “The vehicle most associated with the Model S — by Elon Musk’s designation — is the Mercedes-Benz S-Class,which holds a 36-month residual value of over 50 per cent, ” Ibara said. “Given the sparse data available, it is speculative to suggest that the Model S would retain more than 50 percent of its value in three years, but that does not mean it cannot happen.”

    New Model S prices start at about $70,000 for the version with the 60 kilowatt-hour battery and range up to over $100,000 for cars with the 85 kWh battery. That suggests a Model S coming off a three-year lease might sell for $35,000 to $50,000. With Tesla selling a large share of the used models, it would have more power to set the used car price than is the norm for other manufacturers.

    Should you worry about battery life? Since driving range before needing to recharge the battery is a major concern for electric car owners, the durability of the battery pack is a natural question when considering a used electric vehicle. The EPA rating for the maximum driving range for the Model S on one charge of the 60 kWh battery is 208 miles and 265 miles for the 85 kWh version.

    Kevin Riddell, chief powertrain analyst for consulting firm LMC Automotive, notes that Tesla’s new-car warranties are transferable to second owners and that they last for eight years and 125,000 miles on the smaller battery and eight years with unlimited mileage on the larger version. For used car buyers, “That should reduce concerns about having to replace the battery in the first few years of ownership,” he said.

    Riddell added that battery packs in gas-electric hybrids such as the Toyota Prius have shown battery longevity beyond the time stipulated in the warranty.

    Play Video

    Tesla unveils sleek new features for electric cars

    At Plug In America, a research and advocacy group, surveys of Model S owners indicate that the 85 kWh battery retains 90 per cent of its capacity after 100,000 miles and the 60 kWh version holds that level up to 75,000 miles on average.

    Tom Saxton, the organization’s chief science officer, told CBS MoneyWatch that these results were similar to an earlier study done on the Tesla Roadster, the sports car that launched the company’s line. But he cautioned that these numbers can be affected by driving style and conditions.

    What are the drawbacks to buying used? Buyers of new Model S cars get a federal tax credit of up to $7,500, and in some places an additional state tax credit. But second owners of these cars are no longer eligible for such credits.

    Tesla also may be issuing a new-car competitor to its used Model S cars. Current plans call for the Model III — expected to sell for around $40,000 — to roll out in 2017. And that car would be eligible for the electric-car tax credits if Tesla had not yet hit the cutoff point of 200,000 cars sold by one manufacturer.

    For Tesla itself, if it can navigate state regulations, the used-car sales would generate additional revenue from its investment in company-owned showrooms.

    CBS Mitsubishi #big #bucks #auto


    #quality used cars
    #

    Welcome to CBS Mitsubishi serving the greater Raleigh, NC area.

    CBS Mitsubishi is a Mitsubishi Auto Dealer

    Our goal is to make your car buying experience the best possible. CBS Mitsubishi’s virtual dealership offers a wide variety of new and used cars. Mitsubishi incentives, service specials, and Mitsubishi parts savings. Conveniently located in Raleigh, NC we also serve Durham, NC and Cary, NC.

    If you’re looking to purchase your new dream car. you’ve come to the right place. At CBS Mitsubishi we pride ourselves on being the most reliable and trustworthy Mitsubishi dealer around. Our inventory is filled with some of the sweetest rides you’ve ever seen!

    The Mitsubishi Dealer You Can Count On

    We’re the kind of Mitsubishi dealer that takes the time and listens to the wants and needs of our clients. We understand that buying a car is a process that takes a certain amount of careful consideration.

    It’s a lot to wrap your head around but at CBS Mitsubishi we do our best to make the car buying experience an easy one. We’re the kind of Raleigh, NC car dealer that helps you decide exactly what you’re looking for. We won’t ever make a sale that our customers will end up being unhappy with. We’re proud to be the type of Raleigh, NC Mitsubishi dealer that strives for 100% customer satisfaction.

    There are several important factors to take into account when choosing a car:

    1. How many people do you drive with every day?
    2. How far do you drive on a daily basis?
    3. What does your gasoline budget look like?
    4. How much money are you looking to spend on your new car?
    5. Do you need financial assistance ?

    Mitsubishis For Everyone

    We are the Raleigh, NC car dealership that caters for a whole variety of clientele. We understand that all of our clients have different financial situations and have done our best to ensure that our cars come in a variety of different shapes and sizes, and that their price tags vary as well. We not only have an amazing selection of brand new cars but have also acquired an impressive selection of used vehicles that are just as fantastic.

    Because our customers are so important to us, we’ll also take the time to find you some great financing options if you need them. At some point in our lives we all need a little financial boost, and at CBS Mitsubishi we do our best to find a reasonable loan that enables you to purchase the car you’ve always dreamed of.

    If you would like to get in touch with us please don’t hesitate to give us a call at (919) 794-4101 or stop by for a visit .

    CBS Mitsubishi’s range of car services includes:

    Servicing Your Mitsubishi Vehicle

    Mitsubishi Car Shopping Quick Links

    Used-Car Prices Surging – CBS News #used #cars #dealers


    #used car prices
    #

    Used-Car Prices Surging

    Last Updated Apr 29, 2011 9:51 AM EDT

    Used car prices have surged again in April, especially for gas-sipping models. A combination of rising gas prices and a disruption of the supply of cars and parts from Japan has added as much as 7% in April for used models like Honda Civic and Toyota Corolla.

    It is a poor time to buy fuel-efficient used cars but maybe a good time for trading in your old car.

    The price statistics come from Jonathan Banks, executive auto analyst for the NADA used car guide, a subscription service used by dealers and bank auto loan officers. His data show, for instance, that the average Honda Civic auction price for model years 2006 to 2009 has risen 22% since the start of this year. Used versions of mileage champ Toyota Prius hybrid have gained 38% over the same period. Gas prices — $3.03 a gallon at New Year’s — now have risen to a $3.88 national average for regular, including a 30-cent jump in April alone.

    “You already had gas prices causing increases for these cars, and the Japan earthquake shifted that curve upward more,” says analyst Banks. The damage to plants in Japan disrupted supplies of new cars and parts from Japan. As new-car supplies for popular high-mileage cars have shrunk and prices have risen, customers have begun to look at used cars instead and dealers have rushed to get more used models, pushing up auction and retail prices. (See Automakers Scramble in the Wake of Japanese Disasters .)

    Some additional effects of the Japan tragedies:

    • Prices are rising on some new cars, too. Data from TrueCar.com shows the average new-car selling price of the Japanese-made Lexus RX 350, a midsize SUV, jumping by $550 in just one recent week to $43,808. And General Motors has announced that the list price on its models would be going up by an average of $120.
    • The inventory situation is likely to get worse before it gets better. Toyota, which owns the Lexus brand, says normal production likely will not resume until November or December.
    • Banks predicts the new car supply of Japanese-made vehicles will be at its tightest in June and July – so expect to see used-car prices hit a peak then. Competing models from U.S. brands may not need to offer as many discounts as they normally do in summer months.

    How should you react if you are thinking about buying a new or used car? Here’s a look at some different situations:

    Look for a used car with lower resale value: If you are shopping for a used car with good gas mileage, a 2008 Honda Civic DX sedan ( rated 26 mpg city, 34 highway) would cost an average $14,085 at a dealership, according to Kelley Blue Book’s kbb.com web site. The Civic always has had strong resale values. But a 2008 Ford Focus (at right) with nearly as good mileage (24 mpg city, 35 highway) would cost an average $12,895.

    Ponder your trade-in value: If you own a small car now but have been thinking about trading up in size, the scramble to find good used cars might net you a strong trade-in. Or you might be able to sell that car for a good price even without buying a new one. (See Best Way to Sell Your Car. )

    Look for alternatives to Japanese models: If the new Toyota Camry is in tight supply because of parts shortages, consider buying a Chevrolet Malibu, where list price starts at $21,975 but a $2,500 rebate is currently available. The much-praised Hyundai Sonata (at left) starts at a lower $19,395 for the base model before options.

    Consider leasing: Some of the best promotional deals currently are on leases. Honda, like Toyota, has had new-car and parts disruption from the Japanese disasters. But its mid-size Accord, assembled in Marysville, Ohio, is offering a $250- a-month lease for 36 months on its LX version with no money due at signing.

    If you do sign a lease, however, check out carefully your option to buy the car when the lease is over. This traditionally has been a reassuring option, with the future sale price to you stated in the lease. But rising use car prices means leasing companies are eager to get the car back at lease-end, rather than sell it to you. Linda Goldberg, owner of CarQ car-buying service reports that recent leasing clients have found that General Motors lease contracts added a $2,300 penalty if the leasing consumer buys the car. You might be able to renegotiate such a clause.

    Think about waiting: If you want a Japanese-made car, you’re more likely to avoid overpaying if you wait until the end of 2011. For a Prius, for instance, when production has fully resumed, inventory will rise (from the recent extremely tight 19 days’ supply). That will mean that prices should ease. “Toyota will want to catch up on the sales it lost, and there may well be deals out there,” says NADA Guides’ Jonathan Banks. That may well prompt some slight reduction — or at least a stabilization — of used-Prius prices as well.

    High gas prices are indeed a budget buster. But don’t rush out and pay too much just to get a higher-MPG new or used car. Think carefully about the cost of a new car and how those monthly payments stack up against your rising bill at the gas pump.

    Ford Focus photo courtesy of Flickr user Wonderdawg777. Hyundai Sonata courtesy of the manufacturer.

    How to get the best auto lease deals now – CBS News #military #auto #sales


    #auto lease deals
    #

    How to get the best auto lease deals now

    • Jerry Edgerton
    • MoneyWatch

    Oct 8, 2013 7:00 AM EDT

    2013 Honda Accord Coupe Close

    Honda

    (MoneyWatch) As the air turns crisp and the leaves turn color, auto dealers are just trying to turn over their remaining summer inventory. That results in some of the best low-payment lease deals in recent months — especially on 2013 versions of popular midsize cars like the Honda Accord and Hyundai Sonata.

    With the 2014 model year underway, manufacturers are offering subsidized leases to help their dealers clear out the remaining 2013 models. And there are even some attractive lease deals on 2014 models. In any case you need to understand leasing and how it works so you can negotiate the best possible deal on these and other models.

    Any lease deal contains three factors that, along with the length of the lease, determine what the monthly payments will be.

    • Capitalized cost. This is the equivalent of the purchase price and often can be negotiated. Research the average selling price for the model you are considering for a lease. Compare that with the capitalized cost in the lease you are offered and see if there is room for negotiation.
    • Money factor. This is the equivalent of the interest rate on a loan and usually is expressed in decimal fractions such as .0015. To get the interest rate equivalent, multiply by 2,400. That .0015 number is equivalent to 3.6 percent. Compare with current average loan rates — 2.82 percent according to Bankrate.com. Dealerships can be reluctant to disclose this number, so be persistent.
    • Residual value. This is an estimate what the car will be worth as a used vehicle at the end of the lease. Manufacturers with subsidized leases often set the residual value artificially high in order to lower payments. You can get the industry figure for any car at Cars.com residual values.

    To see how payments would change if you negotiate down the capitalized cost, put the numbers into the Bankrate.com lease calculator.

    For instance, let’s look at a Honda lease offering for the 2013 Accord coupe, the CVT-LX-S version. The lease is with no down payment and $300 a month payment for 35 months. (All payments cited are before state or local taxes). The list price is $24,990 with the capitalized cost reduced to only $24,257. The implied interest rate seems to be just below the 0.9 percent being offered on financing deals.

    But the average selling price for this car, according to Edmunds.com, is $23,306 including destination fee — well below the capitalized cost in the lease. If you have a strong credit rating and can qualify for this lease, try negotiating the dealership down to $23,300 or less. That would cut your monthly payments to about $275, according to the Bankrate.com calculator.

    Here are two other leases worth looking into according to the monthly U.S. News best lease deals:

    2013 Hyundai Sonata. Hyundai is offering its well-reviewed sedan for $199 a month for three years with $2,199 due at signing. Hyundai is using the pre-down payment price of $21,990 as the capitalized cost. Average selling price, according to price service TrueCar.com is $19,604. So aim to negotiate down the capitalized cost toward that level.

    2014 Chevrolet Equinox. If you are looking for an SUV, Chevrolet is offering its Equinox at $199 per month for 36 months with $3,439 due at signing. The $25,235 manufacturer’s suggested retail price is used in the lease. Instead, try to negotiate the capitalized cost down to at least $24,450, cited by TrueCar as the average selling price.

    With nationally subsidized leases, the residual value and money factor — the interest rate equivalent — often are set by the manufacturer. But with such leases or other lease offers you get, negotiate hard on the capitalized cost to get your payments down.

    Volo Auto Museum Gets Elvis – Custom Cadillac – CBS Chicago #fairfax #auto #parts


    #volo auto museum
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    Volo Auto Museum Gets Elvis Custom Cadillac

    Elvis Presley had a Cadillac sedan custom-made into a station wagon to haul his musical equipment between Graceland and the airport. (Credit: Volo Auto Museum)

    CHICAGO (CBS) Illinois Volo Auto Museum has a new addition for its Cars of the Rich and Famous, collection.

    We ve been looking for the right Elvis car to add to our collection, Volo director Brian Grams said.

    He stumbled across Elvis Presley s custom-made pink and white Cadillac station wagon while doing a Google search that led him to a classified ad.

    I clicked on it and as I m reading the description, it was Elvis car, he said. Cadillac never made a station wagon. He bought a four-door sedan and had it customized into a station wagon.

    The King of Rock n Roll used it to haul musical equipment between Graceland and the airport. Grams said this was the forgotten Elvis Caddy.

    It was sold back in 1977, three months after he passed away, for $50,000 which was about a quarter of a million dollars in today s money. It pretty much disappeared after that, went into a private collection, he said.

    One week from today, it will go on public display, part of the Volo Museum s collection of cars owned by the rich and famous.

    WBBM 780’s Regine Schlesinger

    Maserati Procession Kicks Off Miami International Auto Show – CBS Miami #old #cars #for #sale


    #miami auto show
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    Maserati Procession Kicks Off Miami International Auto Show

    MIAMI (CBSMiami) –The Miami International Auto Show is back and it has every car-type in the spectrum for drivers with a need for speed to a penchant for going green.

    To celebrate Maserati’s 100th anniversary and kick off the car show, 100 customer-driven Maseratis drove from Perez Art Museum Miami to the Miami Beach Convention Center.

    “These are people who love to drive, but more than anything they love to hear their engines,”  said Peter Grady CEO of Maserati.

    CLICK HERE To Watch Marybel Rodriguez s Report 

    Starting Friday, the 44th annual show will run for 10 days at the Miami Beach Convention Center at 1901 Convention Center Drive.

    Besides the hot new rides and concept cars on display, several attractions are returning. This year Camp Jeep, Havana Classics and Memory Lane are all back for guests to enjoy.   You can also check out one of the most expensive cars in the world, a Pagani that cost 1.7 million dollars.

    A show first, the Cars Meet Art exhibit is a new attraction inspired by urban graffiti art from Miami s Wynwood District. Street artists have painted a variety of cars and matching murals that will be displayed throughout the show.

    “I think people are really going to dig it.  I’m a big auto fan myself, so this is doubly fun, said artist Claudio Picasso.

    There is also an interactive display where you can wrap your own car with your own art work.

    Car-show goers will also have the opportunity to test drive a select number of cars via the Ride Drive offer featured on the weekend and Veterans Day.

    The event brings in more than $50 million to the area will give attendees the opportunity to win a new Chevrolet Camaro LT in this year’s annual giveaway.

    For more information and ticket prices visit   www.miamiautoshow.net.

    RELATED CONTENT:

    New York Auto Show 2015: Cadillac, Lincoln luxury cars unveiled – CBS News #bankruptcy #auto #loans


    #ny auto show
    #

    Cutting-edge luxury cars unveiled at the 2015 New York Auto Show

    NEW YORK — When the doors opened at this year’s New York International Auto Show, CBS News got a sneak peek at the latest state-of-the-art automotive technology and design. CNET Editor-at-Large Tim Stevens took a tour the insides of two of Detroit’s top sedans — Cadillac and Lincoln.

    One of Cadillac’s luxury cars that debuted was its latest flagship model, the 2016 Cadillac CT6. With 400 horsepower under the hood, there’s more to the car than its modern, breathtaking exterior.

    “On the inside of course there is leather everywhere, but there are also some racier touches,” Stevens said, pointing to the brushed aluminum trim and carbon fiber on the dashboard.

    But the more interesting thing is its latest in-vehicle Cadillac User Experience (CUE) infotainment system, Stevens said. CUE pairs data from Bluetooth-enabled mobile devices, USBs, SD cards and MP3 players with the system. Through the 8-inch touchscreen in the car, the users can navigate through the functions, which include receiving and sending text messages, or even streaming audio.

    Another American luxury car that had crowds of people hovering towards it was the Lincoln Continental.

    “It shows us a new direction of design for Lincoln,” Stevens said. “It’s long and low, and it’s beautiful. It’s kind of radical looking compared to current Lincolns.”

    Even more radical is the interior design. Inside the Continental, the rear seats are inspired by luxury air travel. The seats can recline, while simultaneously the front seat moves out of the way to make room. On the center console, a work table pops up. As icing on the cake, the car comes with leather loafers that are tucked away in the back pockets.

    While this is just a concept, Lincoln is promising a new full-size leather some time next year.

    2015 CBS Interactive Inc. All Rights Reserved.

    Sure Ways to Save on Auto, Home Insurance – CBS News #auto #transportation


    #home and auto insurance
    #

    Sure Ways to Save on Auto, Home Insurance

    With most of us looking to cut corners every way we can during the recession, an often overlooked path to savings is closely examining our automobile and homeowners insurance. As “Early Show” money maven Ray Martin explains in this column, that could provide more in savings than you might realize.

    According to an annual survey of Consumer Reports readers, many folks have stayed with the same auto insurer for 15 years. The insurance industry says this is a good thing. Some say that, if you stay with the same carrier for several years, you may receive a discount for being a long-term policyholder. But that may not always be best. Insurance companies can change their appetite for risk and their pricing over time. Depending on your profile and where you live, you might be able to save hundreds of dollars by shopping around every few years and asking for discounts.

    If you haven’t compared costs for your auto and home insurance in awhile, start with the

    National Association of Insurance Commissioners’ Web site and click on NAIC States and Jurisdictions to find your state’s insurance department. Most states Web sites will provide comparative premium quotes, based on standard customer profiles. If your state doesn’t, you can compare premiums from multiple carriers by using insurance Web sites such as InsWeb. Insurance.com and Insure.com. according to the Insurance Information Institute .

    But shopping around is only the half of it – you also need to know the available discounts, and which coverage to decline. With the average cost of home insurance running at $1,200 a year and auto insurance costing $800 per year, smart shoppers who ask for and get all the discounts can save over 30 percent, which can add up to over $50 per month in savings.

    WHERE TO LOOK FOR SAVINGS ON AUTO AND HOMEOWNERS INSURANCE

    Money-Saving Checklist for Your Home Insurance:

    With real estate values in decline, don’t be tempted to reduce the dwelling coverage on your home, figuring you will save money on insurance, now that your home will sell for less than when you last updated the coverage in your policy. Home insurance is designed to cover the cost of rebuilding a home and not the sale price of the home. Homeowners should be careful to purchase enough insurance coverage to completely rebuild their home and replace their belongings.

    There are better ways to save money on home insurance, including:

    Increase the Deductible: Consider a deductible of at least $500 or more. If you raise the deductible to as much as $1,000, you may save up to 25 percent on many home insurance policies. Some carriers allow you to raise the deductible to as high as $5,000. Since the average person only files a claim every eight-to-10 years, most homeowners will save money over time.

    Ask about Home Security Discounts: Most home insurers offer at least a five percent discount for a smoke detector, burglar alarm or dead-bolt locks. Some companies may offer discounts of as much as 15 or 20 percent if you install a sprinkler system over your kitchen stove or a fire and burglar alarm that connects to a central monitoring station. Water level and leak-monitoring and automatic water shut-off systems can also garner a discount, in addition to being a great idea for a second home. But these systems aren’t cheap, and not all of them will qualify for a discount. Before you buy, find out what your insurer recommends, and how much the device would cost as opposed to how much you’d save on premiums.

    Buy All Policies from the same carrier: Most insurers that sell homeowners insurance also sell auto and excess liability insurance (An excess liability policy, also known as an “umbrella,” provides additional liability coverage.) Many companies will reduce your premium by 10 – 15 percent if you buy two or more insurance policies from them; this is called a multi-line discount. But make certain this combined cost is lower than buying the policies separately from different companies.

    Seek Additional Discounts: Ask your insurance company representative about any other discounts that may be available to you. For example, if you’re at least 55 years old and/or retired, you may qualify for a discount of up to 10 percent at some companies. If you’ve modernized your plumbing or electrical system since the last time you updated your policy, tell your insurance company, and they may offer a price break. You may also pay less if your house is located close to a fire hydrant or in a community that has a professional, rather than a volunteer fire department. While many companies offer these and other discounts, they don’t all offer the same types of discounts or the same level of discount in all states.

    Finally, when considering home improvements, before you get too far into the project, ask your insurance company representative what you can do to make your home more resistant to natural disasters such as windstorms, floods, earthquakes. You may be able to save on your premiums by adding storm shutters, shatter-proof glass and reinforcing your roof. Also, consider modernizing your heating, plumbing and electrical systems to reduce the risk of fire and water damage.

    Money-Saving Check List for Your Auto Insurance

    Every state has financial responsibility laws for drivers that require them to buy a minimum amount of liability coverage. But resist the temptation to skimp on auto insurance costs by buying only what the law makes you purchase. If you do, you may end up paying significantly more out-of-pocket in the long-run. Most drivers should have more liability insurance than their state requires because accident damage claims generally cost more than the minimum limits. If you are found to be legally responsible for costs that exceed what your insurance covers, you will have to pay the difference, and these costs could be financially devastating. Also consider purchasing an excess liability (umbrella) policy. These policies provide coverage above and beyond the coverage in the underlying policy. For not a lot of extra cost – typically about $200 to $300 per year – you can get an excess liability policy with $1 million dollars in coverage.

    Better ways to save on auto insurance costs include:

    Increase Deductibles: As with home insurance, by requesting higher deductibles, you can lower your costs substantially. For example, increasing your deductible from $200 to $500 could reduce your collision and comprehensive coverage cost by 15 percent to 30 percent. Going to a $1,000 deductible can save you 40 percent or more.

    Tesla used cars – CBS News #auto #loan #rate


    #buy a used car
    #

    Would you buy a used car from Tesla?

    • Jerry Edgerton
    • MoneyWatch

    Nov 12, 2014 12:39 PM EST

    p Tesla’s flagship Model S sedan runs on electric power. /p Close

    Tesla

    Tesla Motors (TSLA ) founder Elon Musk is also known as the co-founder of PayPal and CEO of commercial space company SpaceX. Now he’s going into the used car business.

    Tesla is planning to sell its flagship Model S cars as certified used vehicles as people trade them in or as leases expire. The company confirmed the plan recently to Automotive News. but has not given an exact timetable.

    With the price of a new Model S topping out at over $100,000, a certified used version would give motorists a chance to own the widely lauded electric car at a lower cost. It also could add to Tesla’s profits. Profit margins for used car sales at dealerships of all brands average about 12 percent, compared with four percent for new cars.

    One hurdle before Tesla starts the program is getting regulatory approval in most of the states where it plans to sell used cars. The company has clashed with state regulators in the past over its practice of selling directly to consumers instead of through franchised dealerships.

    5 hot trends in 2015 cars

    Though the company did not respond to requests for further details on its certified pre-owned program (as it is known in industry jargon), we set out to find some answers to key questions from automotive experts. Some of their responses:

    How much is a used Model S likely to cost? Very few used Model S sales have yet taken place that could indicate the vehicle’s resale value. But Eric Ibara, director of residual value consulting for Kelley Blue Book, made a comparison to a used German luxury model offering certified programs.

    “The vehicle most associated with the Model S — by Elon Musk’s designation — is the Mercedes-Benz S-Class,which holds a 36-month residual value of over 50 per cent, ” Ibara said. “Given the sparse data available, it is speculative to suggest that the Model S would retain more than 50 percent of its value in three years, but that does not mean it cannot happen.”

    New Model S prices start at about $70,000 for the version with the 60 kilowatt-hour battery and range up to over $100,000 for cars with the 85 kWh battery. That suggests a Model S coming off a three-year lease might sell for $35,000 to $50,000. With Tesla selling a large share of the used models, it would have more power to set the used car price than is the norm for other manufacturers.

    Should you worry about battery life? Since driving range before needing to recharge the battery is a major concern for electric car owners, the durability of the battery pack is a natural question when considering a used electric vehicle. The EPA rating for the maximum driving range for the Model S on one charge of the 60 kWh battery is 208 miles and 265 miles for the 85 kWh version.

    Kevin Riddell, chief powertrain analyst for consulting firm LMC Automotive, notes that Tesla’s new-car warranties are transferable to second owners and that they last for eight years and 125,000 miles on the smaller battery and eight years with unlimited mileage on the larger version. For used car buyers, “That should reduce concerns about having to replace the battery in the first few years of ownership,” he said.

    Riddell added that battery packs in gas-electric hybrids such as the Toyota Prius have shown battery longevity beyond the time stipulated in the warranty.

    Play Video

    Tesla unveils sleek new features for electric cars

    At Plug In America, a research and advocacy group, surveys of Model S owners indicate that the 85 kWh battery retains 90 per cent of its capacity after 100,000 miles and the 60 kWh version holds that level up to 75,000 miles on average.

    Tom Saxton, the organization’s chief science officer, told CBS MoneyWatch that these results were similar to an earlier study done on the Tesla Roadster, the sports car that launched the company’s line. But he cautioned that these numbers can be affected by driving style and conditions.

    What are the drawbacks to buying used? Buyers of new Model S cars get a federal tax credit of up to $7,500, and in some places an additional state tax credit. But second owners of these cars are no longer eligible for such credits.

    Tesla also may be issuing a new-car competitor to its used Model S cars. Current plans call for the Model III — expected to sell for around $40,000 — to roll out in 2017. And that car would be eligible for the electric-car tax credits if Tesla had not yet hit the cutoff point of 200,000 cars sold by one manufacturer.

    For Tesla itself, if it can navigate state regulations, the used-car sales would generate additional revenue from its investment in company-owned showrooms.

    Auto Leasing: Sweet Car Deals on Lease Takeovers – CBS News #inexpensive #auto #insurance


    #auto lease deals
    #

    Auto Leasing: Sweet Car Deals on Lease Takeovers

    Last Updated Jun 1, 2011 1:24 PM EDT

    Let’s say you are itching for a new and different car, maybe one with much better gas mileage. But a visit to the dealership turned up a limited selection and a high selling price. Why not stall? By taking over a lease with a year or two until expiration, you can delay your next purchase until the new-car inventory situation improves.

    “Production issues in Japan have triggered price increases across the board for all makes, foreign and domestic,” says CEO Jeremy Anwyl of auto information site Edmunds.com. “The average price of a new Honda Civic, for example, has gone up more than $1,600 since March.” Looking at a lease-swapping deal is one of several ways Edmunds suggests shoppers avoid buying an overpriced new car now.

    Lease holders frequently need to get out of their current leases, and for a variety of reasons — from financial setbacks to a growing family that won’t fit in that sporty convertible. The web site LeaseTrader.com handled 75,000 of these swaps last year. Traditionally, the leases being offered have been for BMW, Mercedes-Benz or other luxury brands, because leasing is more prevalent among luxury cars. “But now we are seeing more leases [offered] for small, high-gas-mileage cars,” says John Sternal, a vice president of LeaseTrader.com.

    For instance, among current offerings are several for the Toyota Prius, one of the cars hardest hit by Japanese supply disruptions. One especially low-payment deal is for a silver 2010 Prius in Miami; the lease is $210 a month, with 22 months left to run. If you needed a shorter lease, a blue 2008 model in the New York City suburbs has payments of $355 a month but just nine months to go.

    Beyond the possibility of getting a higher-MPG car now, picking up a lease can be a chance to try out a luxury model you are considering but not yet ready to commit to. There’s a 2009 BMW 535 iXdrive sedan in San Ramon, Calif. for instance, with monthly payments of $699 and 13 months to run.

    So how does the transfer process work?

    • LeaseTrader charges moderate fees. Shoppers pay $39 initially; if they complete a deal, there’s a $149 fee for the paperwork involved in the transfer. Before doing any deal, however, inquire about transfer fees from the bank or leasing company that holds the lease: That transfer fee can be as little as $50 or as much as $600.
    • Transfers work best in the same geographic region. If you can drive with a friend or fly one-way inexpensively and then pick up the car, it minimizes costs. LeaseTrader can set up cross-country transfers for you, but the price runs about $1,000.
    • Get an inspection if you can’t see the car. If you are considering a lease swap from far away, make sure the car is in good shape by hiring a professional inspector. (See Should You Buy a Car You Haven’t Seen? )

    If lease swapping doesn’t seem right for you, Edmunds is offering some additional suggestions for avoiding the high price and tight selection of the current new-car market:

    Just Be Patient. If the car you are driving is still serviceable, patience is a virtue. Most analysts believe that by early or mid-2012, automakers will have solved the supply problems for new cars and the parts that go into them. That should mean better selection and much better prices at the dealership.

    Extend Your Own Lease. If you are leasing now and that lease is near expiration, see if the leasing company will consider extending your lease by six months or so. That should put you in a better situation for a new lease or purchase.

    Don’t Jump for a Used Car. When new car prices are high, buyers traditionally have switched to less-expensive used cars. But this year, limited supply has caused used car prices to shoot up. (See Used Car Prices Surging .)

    Whatever your situation, analyze your costs carefully before making any commitment. For instance, calculate the likely gas savings from getting a higher-MPG car. Gas will remain expensive. But it already has dropped from its peak near $4 national average for regular to below $3.80. Don’t let your annoyance at high pump prices push you into an ill-advised move.

    Photos courtesy of the manufacturers

    2011 CBS Interactive Inc. All Rights Reserved.

    Avoid These 5 Used Cars (Plus 5 to Buy) – CBS News #auto #zone #auto #parts


    #where to buy used cars
    #

    Avoid These 5 Used Cars (Plus 5 to Buy)

    Last Updated Jul 19, 2011 11:49 AM EDT

    This story is based on 2010 data. For the 2011 version, click here .

    Used car shopping used to be a scary maze of breakdown-prone models, but reliability has gained sharply. Auto manufacturing quality and dependability studies have shown steady gains this decade. But exceptions do exist and if you’re in the market for a used car, you want to steer clear of them.

    So CBS MoneyWatch.com has compiled a list of used cars to avoid in five categories, focusing on 2007 models-the year from the latest J.D. Power and Associates dependability study. Buying a three-year-old car also lets you shop after the bulk of depreciation has taken place. If you’re considering a more recent model used car, study the comparisons in Flash: New Cars Cost Less than Used Cars which take into account new car financing deals vs. one-year old certified used cars.

    To make our list of used-car rejects, a model had to score the minimum two out of five in the J.D. Power “circle ratings ” for dependability–a below-average ranking. It also had to be ranked below average as a used car by Consumer Reports in its annual April car issue and online car rankings.

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    If you’re shopping for a car, you’ll find dealers aren’t offering as many bargains as in the past. Jill Schlesinger has 3 ways to find a good dea.

    Here are our used cars to avoid, by category, plus better used car alternatives:

    Small Used Car to Avoid: Volkswagen New Beetle. Sure, it’s adorable, but the 2007 New Beetle is also trouble-prone. Owners who responded to the Consumer Reports reliability survey reported problems with the fuel and electrical systems, the suspension, brakes, power windows, and other power equipment. The convertible model sells on dealers’ lots for $17,055, according to Kelley Blue Book at kbb.com.

    Small Used Car Alternative: Ford Focus . It may not be as stylish as the Beetle, but it’s a lot more reliable. In fact, the Focus got the J.D. Power award as most reliable compact car. Owners of the 2007 Focus who responded to Consumer Reports reported no major trouble spots. And it’s much cheaper than the Beetle. The Kelley Blue Book dealer price is $10,905.

    Mid-Size Used Car to Avoid: Chrysler Sebring. The 2007 Sebring sedan not only got just two circles from J.D. Power, Consumer Reports reported a laundry list of problems: engine cooling, minor transmission problems, the drive system, suspension, brakes and more. The low $12,365 dealer price isn’t worth it.

    Mid-Size Used Car Alternative: Buick LaCrosse. Winner of the J.D. Power dependability award in this category, the 2007 LaCrosse got an above-average used-car rating from Consumer Reports. It’s a good value at a dealer price for the CX version at $14,430.

    Small Used SUV to Avoid: Jeep Wrangler. King of the off-road, the 2007 Wrangler can climb over almost any obstacle except a reliability test. Owners of the two-door version responding to Consumer Reports reported major transmission problems and issues with the electrical system and brakes. And it’s selling on dealer lots at a relatively expensive $19,850.

    Small Used SUV Alternative: Honda CR-V. A lot less noticeable than a Wrangler, the Honda CR-V is a lot less trouble, too. It won the J.D. Power dependability award in this category and is rated by Consumer Reports as a well-above-average used car prospect. As a used-car buyer, you are on the wrong side of Honda models’ strong ability to hold their value. But at a dealer price of $20,980, the four-wheel-drive version of the CR-V is still a decent value.

    Mid-Size SUV to Avoid: GMC Acadia. The 2007 Acadia is a good example of the time-honored rule to avoid buying the first year of a model. It not only got a below-average two circles from J.D. Power, it received a much-worse-than-average used car rating from Consumer Reports. CR readers who owned the 2007 reported problems with the drive system, suspension, body integrity and power equipment. In addition, the all-wheel-drive version on dealers’ lots is priced at an expensive $28,435, according to Kelly Blue Book.

    Mid-Size SUV Alternative-Honda Pilot. One of a handful of mid-size SUVs to get four circles from J.D. Power, the Pilot is rated well-above-average by Consumer Reports. (Its corporate stablemate, the Accord Crosstour, actually won the J.D. Power award. But many reviewers find its modified-sedan style not big enough to provide true SUV cargo or passenger room.) The Pilot is selling for $23,395-some $5,000 less than the GMC Acadia.

    Used Minivan to Avoid: Nissan Quest. Never a strong contender in this category, the Quest gets a below-average used car rating from Consumer Reports and two circles from Power. Owners of the 2007 reported problems with the fuel and climate system, brakes and body integrity. The Quest is selling at $17,395.

    Used Minivan alternative: Toyota Sienna. This van gets four J.D. Power circles and an above-average CR used car rating. Not part of the Toyota sudden-acceleration recall, the Sienna is selling at a dealers’ price of $20,280 for the CE trim level.

    Photos courtesy of the manufacturers

    More from MoneyWatch

    How to get the best auto lease deals now – CBS News


    #auto lease deals
    #

    How to get the best auto lease deals now

    • Jerry Edgerton
    • MoneyWatch

    Oct 8, 2013 7:00 AM EDT

    2013 Honda Accord Coupe Close

    Honda

    (MoneyWatch) As the air turns crisp and the leaves turn color, auto dealers are just trying to turn over their remaining summer inventory. That results in some of the best low-payment lease deals in recent months — especially on 2013 versions of popular midsize cars like the Honda Accord and Hyundai Sonata.

    With the 2014 model year underway, manufacturers are offering subsidized leases to help their dealers clear out the remaining 2013 models. And there are even some attractive lease deals on 2014 models. In any case you need to understand leasing and how it works so you can negotiate the best possible deal on these and other models.

    Any lease deal contains three factors that, along with the length of the lease, determine what the monthly payments will be.

    • Capitalized cost. This is the equivalent of the purchase price and often can be negotiated. Research the average selling price for the model you are considering for a lease. Compare that with the capitalized cost in the lease you are offered and see if there is room for negotiation.
    • Money factor. This is the equivalent of the interest rate on a loan and usually is expressed in decimal fractions such as .0015. To get the interest rate equivalent, multiply by 2,400. That .0015 number is equivalent to 3.6 percent. Compare with current average loan rates — 2.82 percent according to Bankrate.com. Dealerships can be reluctant to disclose this number, so be persistent.
    • Residual value. This is an estimate what the car will be worth as a used vehicle at the end of the lease. Manufacturers with subsidized leases often set the residual value artificially high in order to lower payments. You can get the industry figure for any car at Cars.com residual values.

    To see how payments would change if you negotiate down the capitalized cost, put the numbers into the Bankrate.com lease calculator.

    For instance, let’s look at a Honda lease offering for the 2013 Accord coupe, the CVT-LX-S version. The lease is with no down payment and $300 a month payment for 35 months. (All payments cited are before state or local taxes). The list price is $24,990 with the capitalized cost reduced to only $24,257. The implied interest rate seems to be just below the 0.9 percent being offered on financing deals.

    But the average selling price for this car, according to Edmunds.com, is $23,306 including destination fee — well below the capitalized cost in the lease. If you have a strong credit rating and can qualify for this lease, try negotiating the dealership down to $23,300 or less. That would cut your monthly payments to about $275, according to the Bankrate.com calculator.

    Here are two other leases worth looking into according to the monthly U.S. News best lease deals:

    2013 Hyundai Sonata. Hyundai is offering its well-reviewed sedan for $199 a month for three years with $2,199 due at signing. Hyundai is using the pre-down payment price of $21,990 as the capitalized cost. Average selling price, according to price service TrueCar.com is $19,604. So aim to negotiate down the capitalized cost toward that level.

    2014 Chevrolet Equinox. If you are looking for an SUV, Chevrolet is offering its Equinox at $199 per month for 36 months with $3,439 due at signing. The $25,235 manufacturer’s suggested retail price is used in the lease. Instead, try to negotiate the capitalized cost down to at least $24,450, cited by TrueCar as the average selling price.

    With nationally subsidized leases, the residual value and money factor — the interest rate equivalent — often are set by the manufacturer. But with such leases or other lease offers you get, negotiate hard on the capitalized cost to get your payments down.

    New York Auto Show 2015: Cadillac, Lincoln luxury cars unveiled – CBS News


    #ny auto show
    #

    Cutting-edge luxury cars unveiled at the 2015 New York Auto Show

    NEW YORK — When the doors opened at this year’s New York International Auto Show, CBS News got a sneak peek at the latest state-of-the-art automotive technology and design. CNET Editor-at-Large Tim Stevens took a tour the insides of two of Detroit’s top sedans — Cadillac and Lincoln.

    One of Cadillac’s luxury cars that debuted was its latest flagship model, the 2016 Cadillac CT6. With 400 horsepower under the hood, there’s more to the car than its modern, breathtaking exterior.

    “On the inside of course there is leather everywhere, but there are also some racier touches,” Stevens said, pointing to the brushed aluminum trim and carbon fiber on the dashboard.

    But the more interesting thing is its latest in-vehicle Cadillac User Experience (CUE) infotainment system, Stevens said. CUE pairs data from Bluetooth-enabled mobile devices, USBs, SD cards and MP3 players with the system. Through the 8-inch touchscreen in the car, the users can navigate through the functions, which include receiving and sending text messages, or even streaming audio.

    Another American luxury car that had crowds of people hovering towards it was the Lincoln Continental.

    “It shows us a new direction of design for Lincoln,” Stevens said. “It’s long and low, and it’s beautiful. It’s kind of radical looking compared to current Lincolns.”

    Even more radical is the interior design. Inside the Continental, the rear seats are inspired by luxury air travel. The seats can recline, while simultaneously the front seat moves out of the way to make room. On the center console, a work table pops up. As icing on the cake, the car comes with leather loafers that are tucked away in the back pockets.

    While this is just a concept, Lincoln is promising a new full-size leather some time next year.

    2015 CBS Interactive Inc. All Rights Reserved.

    Should you buy a certified used car? CBS News


    #where to buy used cars
    #

    Should you buy a certified used car?

    As gas prices have fallen, U.S. new car sales have surged. But buyers are snapping up certified used cars as well, with certified sales in November up 21 percent over a year earlier, according to CNW research.

    Thrifty habits developed during the recession are leading buyers to what the industry calls certified pre-owned vehicles, says senior analyst Karl Brauer of Kelley Blue Book and kbb.com. “The last recession increased the price sensitivity of car buyers, driving many to consider certified pre-owned for the first time,” says Brauer. Certified cars typically get a thorough inspection and repair of defects at a dealership, along with an additional warranty.

    If you share that price sensitivity, consider a certified used car rather than a new car. You should look to save at least $2,000 to $3,000 with a good deal on a certified used car of the previous model year vs. a new car, says Alec Gutierrez, another Kelley senior analyst.

    Gutierrez points out, however, that certified deals vary widely depending on how fast a given model depreciates. He cites the following examples:

    • A Honda Accord is known for holding its value. A 2015 Accord EX-L lists for $27,406 and a 2014 certified used one for $26,129 — a savings of just $1,277.
    • A Ford Escape SE, with about average depreciation, sells as a 2015 for $25,421 but as a 2014 certified car for $21,624. That is a savings of $3,797.
    • As an example of big savings, Gutierrez cited the Kia Cadenza large sedan selling as a 2015 for $33,447. A certified used 2014 model could be bought for $25,622 — a savings of $7,825. Among luxury brands, he suggests likely good certified deals for the Cadillac XTS sedan and the Infiniti Q60 coupe or convertible.

    If you are considering a certified used car, take these additional factors into account:

    Avoid independent used car lots. Independents may advertise certified deals, but you can not be sure the standards are as high as in manufacturer-backed programs.

    Make sure the auto maker backs the warranty. Even at a franchised dealer, double check that the warranty on the certified car is, for example, from Ford or General Motors — not an independent warranty company.

    Consider certified with older cars. Many cars returning after being leased are three years old. People who lease cars have incentives to keep the car in good shape in order to avoid penalties at lease end. “If the vehicle is passing the manufacturer’s process to get certified, a buyer can be confident it is a solid vehicle — and has coverage if a problem does develop,” says Gutierrez.

    Even as the economy recovers, buyers’ appetite for certified used cars is likely to continue. “The awareness and advantages of certified pre-owned have extended to a larger percentage of car buyers in recent years, reaching sufficient critical mass to keep growing steadily going forward,” says analyst Karl Brauer.

    2014 CBS Interactive Inc. All Rights Reserved.

    Tesla used cars – CBS News


    #buy a used car
    #

    Would you buy a used car from Tesla?

    • Jerry Edgerton
    • MoneyWatch

    Nov 12, 2014 12:39 PM EST

    p Tesla’s flagship Model S sedan runs on electric power. /p Close

    Tesla

    Tesla Motors (TSLA ) founder Elon Musk is also known as the co-founder of PayPal and CEO of commercial space company SpaceX. Now he’s going into the used car business.

    Tesla is planning to sell its flagship Model S cars as certified used vehicles as people trade them in or as leases expire. The company confirmed the plan recently to Automotive News. but has not given an exact timetable.

    With the price of a new Model S topping out at over $100,000, a certified used version would give motorists a chance to own the widely lauded electric car at a lower cost. It also could add to Tesla’s profits. Profit margins for used car sales at dealerships of all brands average about 12 percent, compared with four percent for new cars.

    One hurdle before Tesla starts the program is getting regulatory approval in most of the states where it plans to sell used cars. The company has clashed with state regulators in the past over its practice of selling directly to consumers instead of through franchised dealerships.

    5 hot trends in 2015 cars

    Though the company did not respond to requests for further details on its certified pre-owned program (as it is known in industry jargon), we set out to find some answers to key questions from automotive experts. Some of their responses:

    How much is a used Model S likely to cost? Very few used Model S sales have yet taken place that could indicate the vehicle’s resale value. But Eric Ibara, director of residual value consulting for Kelley Blue Book, made a comparison to a used German luxury model offering certified programs.

    “The vehicle most associated with the Model S — by Elon Musk’s designation — is the Mercedes-Benz S-Class,which holds a 36-month residual value of over 50 per cent, ” Ibara said. “Given the sparse data available, it is speculative to suggest that the Model S would retain more than 50 percent of its value in three years, but that does not mean it cannot happen.”

    New Model S prices start at about $70,000 for the version with the 60 kilowatt-hour battery and range up to over $100,000 for cars with the 85 kWh battery. That suggests a Model S coming off a three-year lease might sell for $35,000 to $50,000. With Tesla selling a large share of the used models, it would have more power to set the used car price than is the norm for other manufacturers.

    Should you worry about battery life? Since driving range before needing to recharge the battery is a major concern for electric car owners, the durability of the battery pack is a natural question when considering a used electric vehicle. The EPA rating for the maximum driving range for the Model S on one charge of the 60 kWh battery is 208 miles and 265 miles for the 85 kWh version.

    Kevin Riddell, chief powertrain analyst for consulting firm LMC Automotive, notes that Tesla’s new-car warranties are transferable to second owners and that they last for eight years and 125,000 miles on the smaller battery and eight years with unlimited mileage on the larger version. For used car buyers, “That should reduce concerns about having to replace the battery in the first few years of ownership,” he said.

    Riddell added that battery packs in gas-electric hybrids such as the Toyota Prius have shown battery longevity beyond the time stipulated in the warranty.

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    Tesla unveils sleek new features for electric cars

    At Plug In America, a research and advocacy group, surveys of Model S owners indicate that the 85 kWh battery retains 90 per cent of its capacity after 100,000 miles and the 60 kWh version holds that level up to 75,000 miles on average.

    Tom Saxton, the organization’s chief science officer, told CBS MoneyWatch that these results were similar to an earlier study done on the Tesla Roadster, the sports car that launched the company’s line. But he cautioned that these numbers can be affected by driving style and conditions.

    What are the drawbacks to buying used? Buyers of new Model S cars get a federal tax credit of up to $7,500, and in some places an additional state tax credit. But second owners of these cars are no longer eligible for such credits.

    Tesla also may be issuing a new-car competitor to its used Model S cars. Current plans call for the Model III — expected to sell for around $40,000 — to roll out in 2017. And that car would be eligible for the electric-car tax credits if Tesla had not yet hit the cutoff point of 200,000 cars sold by one manufacturer.

    For Tesla itself, if it can navigate state regulations, the used-car sales would generate additional revenue from its investment in company-owned showrooms.