Search This Blog

Sunday, August 31, 2014

Three-car crash stops IndySeries practice at Auto Club Speedway - SportingNews.com

Practice at the MAVTV 500 Verizon IndyCar Series ended Friday after a spectacular crash involving rookie Mikhail Aleshin, Marco Andretti and Charlie Kimball through turns 3 and 4 at Auto Club Speedway in Fontana, California.

Replays show Aleshin going low through turns 3 and four then spinning up the track and on top of Kimball. The accident sent Aleshin into the catch fencing, where it was peeled away. Andretti was also caught up in the accident.

Video of the crash went up on Instagram pretty quickly.

According to NBCSports.com, both Kimball and Andretti were out of their cars after the accident, with safety crews tending to Aleshin. Multiple reports had Aleshin awake and complaining of his injuries.

Pictures of the crash quickly hit Twitter.

Curt Cavin of The Indianapolis Star wrote on his Twitter account that Aleshin vaulted into the fence at a high rate of speed.

A news release from IndyCar from Dr. Terry Trammell, IndyCar medical consultant, stated that Aleshin was diagnosed with fractured ribs, a broken right clavicle, a concussion and chest injuries. He was admitted to Loma Linda University Medical Center and listed in serious but stable condition.

Kimball, the other driver involved in the incident, was checked and released from the infield care center and cleared to drive.

The 27-year-old Aleshin also had several run-ins with Sebastien Bourdais earlier in the season, and he was involved in an unusual crash with Juan Pablo Montoya in Toronto.

Montoya was stalled in a tire barrier when Aleshin spun into the back of his car. Aleshin then slid under Montoya, leaving tire marks on Aleshin's helmet and requiring a tow truck to lift Montoya's car off Aleshin.

The two-mile Fontana track is a fast, high-banked oval with well-worn, bumpy and occasionally dusty asphalt, providing a challenge even for veteran drivers. Helio Castroneves won the pole for Saturday's race with an average speed of more than 218 mph in his qualifying lap Friday, when temperatures reached 100 degrees in Fontana.

Although IndyCar racing on ovals can be spectacular, the risk factor is high. Dan Wheldon was killed in a 15-car accident in the 2011 season finale at Las Vegas, another high-banked oval.

The IndyCar series finale is scheduled for Saturday night. Aleshin was eighth in qualifying earlier Friday, easily the best finish by a rookie.

Contributing: The Associated Press

Source : http://www.sportingnews.com/sport/story/2014-08-29/three-car-crash-stops-indyseries-practice-at-auto-club-speedway

Shawn Richard Gangloff, 15, of Olney dies day after car hits tree; two other ... - WJLA

OLNEY, Md. -- Three teenaged boys were seriously injured, including one who died Sunday, when the car they were in left the road and hit a tree in Olney early Saturday morning.

Shawn Gangloff, 15, died from injuries in the Olney car crash. (Photo given to WJLA by a family friend)

When Montgomery County Police officers and Fire & Rescue personnel arrived at the crash scene near Hines Road and Macduff Avenue at approximately 1:23 a.m., the driver and front passenger were trapped in the car, police say. The back-seat passenger had been thrown from the car.

Police say Austin Donovan Hall, 17, of Brookeville, was the driver. Maxwell Elliott Dechter, 17, of Silver Spring was in the front seat and Shawn Richard Gangloff, 15, was sitting in back.

All three were taken to a hospital, Gangloff with life-threatening injuries. Hall and Dechter had serious injuries, police say.

Gangloff died at approximately 12:30 p.m. Sunday, according to Montgomery County Police.

Hall was driving the 2011 Chrysler 200 convertible west on Hines Road when the car went off the road and hit a tree, a light pole, and a telephone box. The car rolled over before it stopped, police say.

Source : http://www.wjla.com/articles/2014/08/three-teens-seriously-injured-as-car-hits-tree-flips-over-in-olney-106615.html

With $38 Million Ferrari, Classic Car Market Revs Up - New York Times

At the Bonhams Quail Lodge auction, nine Ferrari models set records, as did several Maseratis.

Common Sense

By JAMES B. STEWART

Last year, two Manhattan condominiums sold for over $90 million and a Francis Bacon painting went for $142.4 million. Now comes the $38.1 million car.

That's the price of a 1962 Ferrari 250 GTO Berlinetta that sold this month at the Bonhams Quail Lodge auction in Carmel, Calif. The price was 28 percent higher than the previous record of $29.7 million, set by a Mercedes-Benz racecar last summer. Another Ferrari 250 GTO is believed to have sold for $52 million in a private transaction.

While the Ferraris are rare — just 32 were built by hand between 1962 and 1964 — the price for the 250 GTO was hardly the only record during this month's annual week of prominent car auctions on the Monterey Peninsula. The auctions are timed to coincide with the Pebble Beach Concours d'Elegance, where rare classic cars are positioned on the 18th fairway of the Pebble Beach Golf Links like fashion models on a runway.

At the Bonhams Quail Lodge auction, nine Ferrari models set records, as did a Rolls-Royce once owned by Elvis Presley, and several Maseratis. Even a 1962 Austin Mini sold for a record $181,500. The week's sales total hit $400 million, a 28 percent increase from a year ago.

A 1985 Alfa Romeo Spyder Veloce convertible sold for $13,750, the least expensive lot at auction.

"Without exception, we're seeing every segment of the market, and nearly every model, hitting new all-time highs," McKeel Hagerty told me this week. Mr. Hagerty is chief executive of Hagerty Insurance, which specializes in insuring collectible cars and produces a price index that, to car collectors, is the equivalent of the Dow Jones industrial average.

Hagerty's Blue Chip Index of 25 classic cars rose 34.5 percent over the last year, far outpacing major stock and bond averages.

"A lot of people are asking, 'Is this the next great asset class?' " said Evan Beard, who leads Deloitte's United States art and finance group.

But when even a Mini sells for six figures, a lot of people are also asking if the car market is in the middle of a bubble. If so, it wouldn't be the first time. The market soared in the late 1980s, especially for Ferraris and Jaguars, then crashed.

A 1962 Ferrari 250 GTO Berlinetta sold for $38.1 million at the Bonhams Quail Lodge auction in Carmel, Calif., this month.

"I'm becoming increasingly uneasy," Scott Grundfor recently wrote in his newsletter for car collectors. (Mr. Grundfor's company also restores and consults on classic cars.) "I've firmly believed at least 50 percent of the dramatic rise in car values can be attributed to the printing of money and the manipulation of interest rates by central banks."

In that regard, cars can be seen as the latest in a parade of assets whose values have soared since the Federal Reserve began its aggressive easy-money policy to combat the effects of the 2008 financial crisis. That means prices could drop, perhaps precipitously, when the Fed begins to tighten.

"I'd like to see a leveling off" of prices, said Keith Martin, a car collector and founder of Sports Car Market magazine. "This can't go on forever."

But others dispute the idea that classic cars are in a bubble. Mr. Hagerty, for one, said he saw none of the leverage or uninformed speculative buying that characterized the surge in prices during the late 1980s. Mr. Martin, too, said he saw few signs of excess. "The people who are buying are very discreet," he said. "You don't see any of the exuberant buying that you see at the art auctions."

Mr. Hagerty said he believed the $38 million realized by the Ferrari was "a rational number. We don't know yet who the buyer was, but I think whoever it is showed discipline and restraint. That Ferrari is from the glory days. It's beautifully designed, handcrafted and rare. You could race it or drive it. It was one of the last models before racecars started to look like science projects."

It also had a coveted provenance, coming from the collection of Fabrizio Violati, the heir to an Italian mineral water and agriculture fortune, who bought the car in 1965 for about $4,000 and drove and maintained it until his death in 2010.

The fashion designer Ralph Lauren also owns a Ferrari 250 GTO Berlinetta, along with a major collection of classic cars, lending a celebrity imprimatur not just to that model, but also to the idea of cars as works of art. His collection is the subject of a lavish coffee table book, "Speed, Style, and Beauty," and his cars were displayed at the Musée des Arts Décoratifs in Paris in 2011.

"The $38 million raised eyebrows, but it's less than a third the price of the most expensive painting," said Eric Y. Minoff, a car specialist at Bonhams, which also sells fine art. "And cars are also usable objects. A few collectors keep them locked up in climate-controlled garages, but most drive them."

But comparing cars to fine art as an asset class may be premature, Mr. Beard said. "Art is at least a generation or two ahead, and I'm not sure vintage cars will ever get there," he said. "Cars aren't a pillar of Western culture. They're a consumer utility good. Their history is only a little over 100 years, compared to centuries for art." He added that, in contrast to art, they're difficult to transport, store and maintain. "No one would have considered cars as an investment until 20 years or so ago."

While multimillion-dollar sales of Ferraris and other post-World War II European sports cars have grabbed headlines, most classic cars sell for relatively modest sums, and often for less than the cost of a new car. Even at this month's high-end Quail Ridge sale, a 1985 Alfa Romeo Spyder Veloce convertible sold for $13,750, the least expensive lot.

Cars that appeal to aging American baby boomers have also fared well, especially so-called muscle cars of the 1960s and 1970s, like the Ford Mustang (Ford is celebrating the Mustang's 50th anniversary this year), Chevrolet Camaro and Plymouth Barracuda. Hagerty's muscle car price index jumped 16 percent in the first four months of this year, the most for any four-month period.

Curiously, there's also been a recent surge of interest in the once-reviled 1960s-era Chevy Corvair, especially the convertible Monza models. Though Ralph Nader later denounced the car as unsafe, the innovative rear-engine Corvair was hailed at the time as "the sexiest-looking American car" by Car and Driver.

"It's a very friendly and accessible hobby," Mr. Minoff of Bonhams said of car collecting. "You can get a very nice car for $15,000, or if you show up with a million dollars, you can spend that, too." He owns a 1968 Porsche 911, and said Porsche 911s from the mid-1980s could sell for as little as $15,000.

Mr. Martin of Sports Car Market said he offered would-be car collectors this advice: "First, sit in the car. Italian sports cars were designed for men who were 5'8" and weighed 140 pounds. Second, don't spend your 401(k) money. And third, make sure you know what you're buying. If you think you can make a killing in antique cars, you probably think you can time the stock market."

Mr. Beard of Deloitte said that he advised clients not to include such exotic assets in their investment portfolios, but that some did anyway. "It's a passion," he said. "They get an emotional return. So we try to understand the risk profile."

Mr. Minoff agreed that car collecting should be viewed as a hobby. "There's a huge number of people who have lost money," he said. "The goal should be to have fun." Still, compared with new cars, "It's a pretty good value proposition. You can buy a 1970 Mercedes 280SL for $60-80,000, drive it a few years, and it will still be worth $80,000. New cars are a terrible investment. They depreciate at an astronomical rate."

Correction: August 30, 2014

An earlier version of this column misattributed three points of advice to would-be car collectors. The advice came from Keith Martin, not McKeel Hagerty.

Source : http://www.nytimes.com/2014/08/30/business/a-soaring-market-for-classic-cars.html

mayor urges action after boy hit and killed by car - WCVB Boston

Friday, August 29, 2014

US Utilities Push the Electric Car - Wall Street Journal

[unable to retrieve full-text content]



Wall Street Journal
As utilities across the U.S. grapple with stagnant electricity sales, many see opportunity in the fledgling need for electric-car charging stations. But some companies' tactics are spurring complaints from consumer advocates.

Source : http://online.wsj.com/articles/u-s-utilities-push-the-electric-car-1409336042

With $38 Million Ferrari, Classic Car Market Revs Up - New York Times

At the Bonhams Quail Lodge auction, nine Ferrari models set records, as did several Maseratis.

Common Sense

By JAMES B. STEWART

Last year, two Manhattan condominiums sold for over $90 million and a Francis Bacon painting went for $142.4 million. Now comes the $38.1 million car.

That's the price of a 1962 Ferrari 250 GTO Berlinetta that sold this month at the Bonhams Quail Lodge auction in Carmel, Calif. The price was 28 percent higher than the previous record of $29.7 million, set by a Mercedes-Benz racecar last summer. Another Ferrari 250 GTO is believed to have sold for $52 million in a private transaction.

While the Ferraris are rare — just 32 were built by hand between 1962 and 1964 — the price for the 250 GTO was hardly the only record during this month's annual week of prominent car auctions on the Monterey Peninsula. The auctions are timed to coincide with the Pebble Beach Concours d'Elegance, where rare classic cars are positioned on the 18th fairway of the Pebble Beach Golf Links like fashion models on a runway.

At the Bonhams Quail Lodge auction, nine Ferrari models set records, as did a Rolls-Royce once owned by Elvis Presley, and several Maseratis. Even a 1962 Austin Mini sold for a record $181,500. The week's sales total hit $400 million, a 28 percent increase from a year ago.

A 1985 Alfa Romeo Spyder Veloce convertible sold for $13,750, the least expensive lot at auction.

"Without exception, we're seeing every segment of the market, and nearly every model, hitting new all-time highs," McKeel Hagerty told me this week. Mr. Hagerty is chief executive of Hagerty Insurance, which specializes in insuring collectible cars and produces a price index that, to car collectors, is the equivalent of the Dow Jones industrial average.

Hagerty's Blue Chip Index of 25 classic cars rose 34.5 percent over the last year, far outpacing major stock and bond averages.

"A lot of people are asking, 'Is this the next great asset class?' " said Evan Beard, who leads Deloitte's United States art and finance group.

But when even a Mini sells for six figures, a lot of people are also asking if the car market is in the middle of a bubble. If so, it wouldn't be the first time. The market soared in the late 1980s, especially for Ferraris and Jaguars, then crashed.

A 1962 Ferrari 250 GTO Berlinetta sold for $38.1 million at the Bonhams Quail Lodge auction in Carmel, Calif., this month.

"I'm becoming increasingly uneasy," Scott Grundfor recently wrote in his newsletter for car collectors. (Mr. Grundfor's company also restores and consults on classic cars.) "I've firmly believed at least 50 percent of the dramatic rise in car values can be attributed to the printing of money and the manipulation of interest rates by central banks."

In that regard, cars can be seen as the latest in a parade of assets whose values have soared since the Federal Reserve began its aggressive easy-money policy to combat the effects of the 2008 financial crisis. That means prices could drop, perhaps precipitously, when the Fed begins to tighten.

"I'd like to see a leveling off" of prices, said Keith Martin, a car collector and founder of Sports Car Market magazine. "This can't go on forever."

But others dispute the idea that classic cars are in a bubble. Mr. Hagerty, for one, said he saw none of the leverage or uninformed speculative buying that characterized the surge in prices during the late 1980s. Mr. Martin, too, said he saw few signs of excess. "The people who are buying are very discreet," he said. "You don't see any of the exuberant buying that you see at the art auctions."

Mr. Hagerty said he believed the $38 million realized by the Ferrari was "a rational number. We don't know yet who the buyer was, but I think whoever it is showed discipline and restraint. That Ferrari is from the glory days. It's beautifully designed, handcrafted and rare. You could race it or drive it. It was one of the last models before racecars started to look like science projects."

It also had a coveted provenance, coming from the collection of Fabrizio Violati, the heir to an Italian mineral water and agriculture fortune, who bought the car in 1965 for about $4,000 and drove and maintained it until his death in 2010.

The fashion designer Ralph Lauren also owns a Ferrari 250 GTO Berlinetta, along with a major collection of classic cars, lending a celebrity imprimatur not just to that model, but also to the idea of cars as works of art. His collection is the subject of a lavish coffee table book, "Speed, Style, and Beauty," and his cars were displayed at the Musée des Arts Décoratifs in Paris in 2011.

"The $38 million raised eyebrows, but it's less than a third the price of the most expensive painting," said Eric Y. Minoff, a car specialist at Bonhams, which also sells fine art. "And cars are also usable objects. A few collectors keep them locked up in climate-controlled garages, but most drive them."

But comparing cars to fine art as an asset class may be premature, Mr. Beard said. "Art is at least a generation or two ahead, and I'm not sure vintage cars will ever get there," he said. "Cars aren't a pillar of Western culture. They're a consumer utility good. Their history is only a little over 100 years, compared to centuries for art." He added that, in contrast to art, they're difficult to transport, store and maintain. "No one would have considered cars as an investment until 20 years or so ago."

While multimillion-dollar sales of Ferraris and other post-World War II European sports cars have grabbed headlines, most classic cars sell for relatively modest sums, and often for less than the cost of a new car. Even at this month's high-end Quail Ridge sale, a 1985 Alfa Romeo Spyder Veloce convertible sold for $13,750, the least expensive lot.

Cars that appeal to aging American baby boomers have also fared well, especially so-called muscle cars of the 1960s and 1970s, like the Ford Mustang (Ford is celebrating the Mustang's 50th anniversary this year), Chevrolet Camaro and Plymouth Barracuda. Hagerty's muscle car price index jumped 16 percent in the first four months of this year, the most for any four-month period.

Curiously, there's also been a recent surge of interest in the once-reviled 1960s-era Chevy Corvair, especially the convertible Monza models. Though Ralph Nader later denounced the car as unsafe, the innovative rear-engine Corvair was hailed at the time as "the sexiest-looking American car" by Car and Driver.

"It's a very friendly and accessible hobby," Mr. Minoff of Bonhams said of car collecting. "You can get a very nice car for $15,000, or if you show up with a million dollars, you can spend that, too." He owns a 1968 Porsche 911, and said Porsche 911s from the mid-1980s could sell for as little as $15,000.

Mr. Hagerty said he offered would-be car collectors this advice: "First, sit in the car. Italian sports cars were designed for men who were 5'8" and weighed 140 pounds. Second, don't spend your 401(k) money. And third, make sure you know what you're buying. If you think you can make a killing in antique cars, you probably think you can time the stock market."

Mr. Beard of Deloitte said that he advised clients not to include such exotic assets in their investment portfolios, but that some did anyway. "It's a passion," he said. "They get an emotional return. So we try to understand the risk profile."

Mr. Minoff agreed that car collecting should be viewed as a hobby. "There's a huge number of people who have lost money," he said. "The goal should be to have fun." Still, compared with new cars, "It's a pretty good value proposition. You can buy a 1970 Mercedes 280SL for $60-80,000, drive it a few years, and it will still be worth $80,000. New cars are a terrible investment. They depreciate at an astronomical rate."

Source : http://www.nytimes.com/2014/08/30/business/a-soaring-market-for-classic-cars.html

Labor Day means special deals for car buyers - CBS News

Last Updated Aug 29, 2014 10:00 AM EDT

With Labor Day traditionally tolling the end of summer, you may want to take advantage of another tradition: holiday deals on new cars.

"Labor Day marks the time when dealers move inventory for new vehicles, which means you can find some great deals on existing models," says Michelle Naranjo, editor-in-chief of car-shopping website Autobytel.com. From low or zero interest loans to big cash rebates, deals that cut the price of 2014 models are plentiful because 2015 models already have begun arriving at most dealers' lots.

To point consumers in the right direction, Autobytel, in partnership with loan information site GoBankingRates.com, compiled a list of the best Labor Day deals in various categories. Here are five of the most interesting:

Sedans

Hyundai Sonata Reviewers at U.S. News Best Cars like the Sonata as a spacious sedan with strong fuel economy, rated at 24 MPG in city driving and 35 on the highway. The Sonata comes with either a basic four-cylinder engine or a turbocharged four for better boost. Hyundai is offering a $2,000 rebate on the Sonata or zero percent financing for up to six years if your credit rating is high enough to qualify. List price on the Sonata ranges from $21,450 for the base model up to $28,650 for the best-equipped.

Chrysler 300 For drivers who want a large sedan with a little attitude, Chrysler's entry (pictured above) has sleek styling combined with crisp handling. Its V-6 provides plenty of acceleration and is rated at 19 MPG city, 31 highway. Chrysler is offering cash rebates of up to $4,250 on the 300 and loans with low and zero interest. List prices for the 300 ranges very widely from $30,995 up to $48,900.

Sporty Cars

Ford Mustang If you feel a need for speed, the Mustang is one of the most affordable cars to deliver that performance. The base V-6 engine provides quick acceleration and the V-8 version even quicker boost. The base model with the V-6, rated at 19 MPG city, 29 highway, starts at $22,510. The V-8 version, starting at $32,035, is rated at 15 MPG city, 26 highway. Ford is offering zero percent loans for to six years if you qualify. If you opt for the $36,135 GT Premium version, you can get a $4,750 rebate.

SUVs

Mazda CX-9 reviewers praise it as one of the most fun-to-drive SUVs with quick, responsive handling. The V-6 engine, rated for 17 MPG city, 24 highway, provides plenty of power for highway passing. The CX-9 list price ranges from $29,985 to $36,625. For Labor Day, Mazda is offering a $3,500 rebate or zero percent financing for up to five years.

Ford Expedition With gas prices down, big SUVs like the Expedition are selling strongly again. Nonetheless, Ford is offering rebates of up to $6,000 or zero percent financing for five years if you qualify, plus a$2,500 rebate. The Expedition big-ticket list prices range from $41,995 to $58,855.

If you have a choice between low-rate financing and a rebate, the rebate often is the better deal. But to do that, you need pre-approved financing from an outside source like a bank or credit union.

Source : http://www.cbsnews.com/news/finding-the-best-new-car-deals-with-labor-day-specials/

Checklist for Labor Day Car Shopping - U.S. News & World Report (blog)

Labor Day is a federally-recognized holiday which celebrates hardworking Americans with a day off from work. Unofficially, this day also marks the end of summer and is considered one of the best times to buy a new car.

TrueCar.com estimated that Labor Day weekend last year would boast 1.13 million unit sales among the country's leading automotive manufacturers. With the car-buying trend likely to pick up at a similar speed from the last Labor Day weekend, it's clear that now is the best time to buy a car for those in the market. But like any other major purchase – particularly purchases that require haggling – it's important to know the obstacles you'll face at the dealership.

Whether you're goal is to drive off your local dealership lot in a new car or you're waiting for incentives at the end of the year, it's important do a bit of reconnaissance about your target vehicle, and be armed with the right approach to secure the best deal.

Here are 10 must-dos before signing on the dotted line: 

1. Know your budget.

Calculate your monthly or recurring financial obligations before coming up with a price you're willing to spend on a car. Once you've determined how much your output is for bills and other regular expenses such as groceries and personal care items, consider your income after taxes. As a guide, a conservative range for a monthly car payment is within 10 to 15 percent of your available discretionary budget. A mistake that many rookie car buyers make is filling up the remainder of their available money stores with a massive car loan payment, without breathing room for essentials such as gas, annual registration, car insurance and maintenance.

2. Check your credit report.

Purchasing a car involves a two-way negotiation, particularly when you're financing a car instead of buying it outright. The reality is that loan lenders use your credit report and credit score as a basis for determining whether to even approve you for a new line of credit, what financing percentage of the vehicle purchase to offer, as well as what interest rate to charge on the loan. All of these factors affect the overall affordability of the car you're eyeing.

Before the test drive, know where your credit stands. Request a copy of your credit report to make sure there aren't any errors casting your financial reputation in a negative light. If your credit score seems unusually low, and you've identified a mistake on your report, contact the three credit bureaus immediately to correct the issue.

3. Test drive ahead of time.

Cast a wide net by feeling out a variety of car models within your price point – before you decide you're ready to buy. The car you've dreamed about may not handle as well on the road as you'd have hoped, and there may be features you were expecting that the manufacturer doesn't offer for that model. Test driving a car on the day you're expecting to buy can add undue pressure on you at the dealership and cause anxiety because you're unprepared.

4. Identify the trim level you want.

Besides locking in your budget and deciding the make and model of the car you want, make sure you know the features and upgrades you need, are indifferent about and simply do not want. Make these granular details known to the sales associate you're working with, and be firm about what you want. This way there isn't a question about whether you'd be OK with paying more for a moonroof and 18-inch wheels when you walked in wanting a base model at $2,000 less.

5. Research average price points.

At this stage in the game you've identified how much you realistically can afford and what you want in a car, but what's equally important is knowing what price points are available for the car specifications you want. Using online tools like TrueCar.com can help demystify how much of a deal you're really getting.

Car-buying sites can reveal a wealth of information about pricing, which you can use when negotiating a car purchase. When walking into a dealership, it's important to know the manufacturer's suggested retail price (MSRP), the invoice price (how much the dealer pays for the car) and the average amount paid in your area.

6. Seek out manufacturer or dealer promotions.

High car-sale periods of the year, like Labor Day weekend, are a good time to buy a new car because dealerships are looking to push current year inventory out to make room on the lot for 2015 vehicle models. Some manufacturers also recognize these holidays are a good opportunity to encourage more purchases, so keep a lookout for discounts or rebates for 2014 stock.

7. Get a preapproved auto loan.

Probably the most vital – and effective – item on this checklist is securing preapproved financing from your bank or credit union. Preapproval shows dealerships you're serious about purchasing a car now, so you can cut some of the back-and-forth haggling from the get-go. Also, it keeps your budget defined, helping you avoid up-sells, and likely keeps your auto loan rate as low as can be, as dealership-based loans are often not highly competitive compared to local bank and credit union interest rates.

8. Watch out for add-on features.

Despite all the measures you've taken thus far to avoid getting charged more money out the door, it's always important to ask for an itemized cost list when discussing pricing. Sometimes tricky financing managers try to sneak in extras like an extended warranty that increases your price overall.

9. Beware of negotiating with four-squares.

If for whatever reason you found your way to a dealership without getting preapproved and you're, in fact, interested in financing through the dealership, make sure you stay mindful of the overall picture. Often car buyers will be shown a four-square worksheet that is used to distract them from how the numbers are being shifted around. The squares are used to identify any trade-in credit, vehicle price, down payment and monthly payment. 

Throughout the negotiations, you'll notice the notes in the squares become a lot more cluttered, disorganized and confusing. The goal of this tactic is to make you think the dealership is actually working with any pricing hesitations you may have and to get you to focus solely on the monthly payment instead of out-the-door pricing.

10. Take the pressure off.

At the end of the day, you have more leverage over the car-buying experience than you realize. Even if you spend three hours trying to get to your ideal price point, you can still walk away and give yourself the week to think about the purchase if you're feeling pressured. 

Source : http://money.usnews.com/money/blogs/my-money/2014/08/28/10-step-checklist-for-labor-day-car-shopping

Thursday, August 28, 2014

Brand new car will sell for $6800 - 9NEWS.com

DENVER - Your next commuter car could have two seats, three wheels and get 84 miles to the gallon.

Elio Motors wants to revolutionize U.S. roads with its tiny car, which is the same length as a Honda Fit but half the weight. With a starting price of $6,800, it's also less than half the cost.

Phoenix-based Elio plans to start making the cars next fall at a former General Motors plant in Shreveport, Louisiana. Already, more than 27,000 people have reserved one. Elio hopes to make 250,000 cars a year by 2016. That's close to the number Mazda sells in the U.S.

Because it has three wheels — two in front and one in the rear — the Elio is actually classified as a motorcycle by the U.S. government. But Elio Motors founder Paul Elio says the vehicle has all the safety features of a car, like anti-lock brakes, front and side air bags and a steel cage that surrounds the occupants. Drivers won't be required to wear helmets or have motorcycle licenses.

Show Thumbnails
Show Captions
Last SlideNext Slide

The Elio's two seats sit front and back instead of side by side, so the driver is positioned in the center with the passenger directly behind. That arrangement, plus the low seating position — the Elio is just 54 inches tall — and the lack of power steering take a little getting used to.

But after a couple of spins around the block in this Detroit suburb, it felt like any other small car. That's partly because its two front wheels stick out by a foot on both sides, aiding balance and preventing the vehicle from tipping. The Elio has a three-cylinder, 0.9-liter engine and a top speed of more than 100 miles per hour. It gets an estimated 84 mpg on the highway and 49 mpg in city driving.

Elio keeps the costs down in several ways. The car only has one door, on the left side, which shaves a few hundred dollars off the manufacturing costs. Having three wheels also makes it cheaper. It will be offered in just two configurations — with a manual or automatic transmission — and it has standard air conditioning, power windows and door locks and an AM/FM radio. More features, such as navigation or blind-spot detection, can be ordered through Elio's long list of suppliers.

Germany's Daimler also promised to revolutionize American commutes with the Smart car, but that hasn't panned out, says Karl Brauer, a senior analyst with Kelley Blue Book. Smart sold just 9,264 cars in the U.S. last year.

The Smart has a starting price of $13,270 for a gas-powered car and gets 38 mpg on the highway — not enough savings or fuel economy to justify sacrificing comfort in the tiny car. But, Brauer said, the equation might work in the Elio.

"If it really gets 84 mpg and doesn't drive terribly, it would justify the compromises you're making in size and comfort," he said.

Elio will also save money by selling the cars directly through its own stores and not through franchised dealers, similar to electric car maker Tesla Motors. Elio plans stores in 60 major metropolitan areas. They'll be serviced by car repair chain Pep Boys.

Paul Elio, a one-time stockbroker and New York City cab driver, dreamed as a kid that he would one day own a car company called Elio Motors.

"As I matured I decided that was as likely as playing in the NFL," Elio told The Associated Press. But he did earn an engineering degree at General Motors Institute — now Kettering University — and started his own company engineering products like children's car seats.

In 2008, tired of high gas prices and the country's dependence on foreign oil, he started working on a fuel-efficient car. Equally important to him was creating U.S. manufacturing jobs and making the car inexpensive enough to appeal to buyers who might otherwise be stuck in old, unreliable clunkers.

"Whatever matters to you, this can move the needle on it," he said.

The recession killed his engineering company, but it also provided the opportunity to buy the Shreveport plant when GM filed for bankruptcy protection. Elio Motors plans to employ 1,500 people at the plant.

The company has also applied for a $185 million advanced vehicle development loan from the U.S. Department of Energy.

Paul Elio said so far, reservation holders are older, more affluent buyers who will use the Elio as a second or third car for commuting.

"It's an 'and' purchase for a lot of folks," he said. "So keep your SUV or your minivan or your large sedan, and when you're driving back and forth to work all by yourself, take the Elio. At this price point and this mileage, that works financially for folks."

Eventually, though, he believes the car will appeal to high school and college students as well as used-car drivers who want something newer and more reliable. He also hopes to eventually export it to other countries.

Elio Motors will display its prototype at two events in Colorado over the Labor Day weekend.

The car will be at Flat Iron Crossing in Broomfield, from 10 a.m. to 9 p.m. Friday and Saturday and 11 a.m. to 6 p.m. Sunday. The prototype and Elio representatives will be at the Taste of Colorado in Denver from 10:30 a.m. to 8 p.m. Monday.

The stops are part of the start-up company's Preview Tour, which has visited cities in New Mexico, Arizona, Washington and Michigan this summer.

Tour stops are based on whether an event is near one of Elio's 60 target retail markets, the number of people an event draws and whether the event focuses on the environment, technology and the automotive industry, company officials said.

© 2014 www.shreveporttimes.com. All rights reserved.

Read or Share this story: http://www.9news.com/story/money/business/2014/08/28/elio-preview-tour-to-stop-in-colorado/14760165/

Source : http://www.9news.com/story/money/business/2014/08/28/elio-preview-tour-to-stop-in-colorado/14760165/

10 Step Checklist for Labor Day Car Shopping - U.S. News & World Report (blog)

Labor Day is a federally-recognized holiday which celebrates hardworking Americans with a day off from work. Unofficially, this day also marks the end of summer and is considered one of the best times to buy a new car.

TrueCar.com estimated that Labor Day weekend last year would boast 1.13 million unit sales among the country's leading automotive manufacturers. With the car-buying trend likely to pick up at a similar speed from the last Labor Day weekend, it's clear that now is the best time to buy a car for those in the market. But like any other major purchase – particularly purchases that require haggling – it's important to know the obstacles you'll face at the dealership.

Whether you're goal is to drive off your local dealership lot in a new car or you're waiting for incentives at the end of the year, it's important do a bit of reconnaissance about your target vehicle, and be armed with the right approach to secure the best deal.

Here are 10 must-dos before signing on the dotted line: 

1. Know your budget.

Calculate your monthly or recurring financial obligations before coming up with a price you're willing to spend on a car. Once you've determined how much your output is for bills and other regular expenses such as groceries and personal care items, consider your income after taxes. As a guide, a conservative range for a monthly car payment is within 10 to 15 percent of your available discretionary budget. A mistake that many rookie car buyers make is filling up the remainder of their available money stores with a massive car loan payment, without breathing room for essentials such as gas, annual registration, car insurance and maintenance.

2. Check your credit report.

Purchasing a car involves a two-way negotiation, particularly when you're financing a car instead of buying it outright. The reality is that loan lenders use your credit report and credit score as a basis for determining whether to even approve you for a new line of credit, what financing percentage of the vehicle purchase to offer, as well as what interest rate to charge on the loan. All of these factors affect the overall affordability of the car you're eyeing.

Before the test drive, know where your credit stands. Request a copy of your credit report to make sure there aren't any errors casting your financial reputation in a negative light. If your credit score seems unusually low, and you've identified a mistake on your report, contact the three credit bureaus immediately to correct the issue.

3. Test drive ahead of time.

Cast a wide net by feeling out a variety of car models within your price point – before you decide you're ready to buy. The car you've dreamed about may not handle as well on the road as you'd have hoped, and there may be features you were expecting that the manufacturer doesn't offer for that model. Test driving a car on the day you're expecting to buy can add undue pressure on you at the dealership and cause anxiety because you're unprepared.

4. Identify the trim level you want.

Besides locking in your budget and deciding the make and model of the car you want, make sure you know the features and upgrades you need, are indifferent about and simply do not want. Make these granular details known to the sales associate you're working with, and be firm about what you want. This way there isn't a question about whether you'd be OK with paying more for a moonroof and 18-inch wheels when you walked in wanting a base model at $2,000 less.

5. Research average price points.

At this stage in the game you've identified how much you realistically can afford and what you want in a car, but what's equally important is knowing what price points are available for the car specifications you want. Using online tools like TrueCar.com can help demystify how much of a deal you're really getting.

Car-buying sites can reveal a wealth of information about pricing, which you can use when negotiating a car purchase. When walking into a dealership, it's important to know the manufacturer's suggested retail price (MSRP), the invoice price (how much the dealer pays for the car) and the average amount paid in your area.

6. Seek out manufacturer or dealer promotions.

High car-sale periods of the year, like Labor Day weekend, are a good time to buy a new car because dealerships are looking to push current year inventory out to make room on the lot for 2015 vehicle models. Some manufacturers also recognize these holidays are a good opportunity to encourage more purchases, so keep a lookout for discounts or rebates for 2014 stock.

7. Get a preapproved auto loan.

Probably the most vital – and effective – item on this checklist is securing preapproved financing from your bank or credit union. Preapproval shows dealerships you're serious about purchasing a car now, so you can cut some of the back-and-forth haggling from the get-go. Also, it keeps your budget defined, helping you avoid up-sells, and likely keeps your auto loan rate as low as can be, as dealership-based loans are often not highly competitive compared to local bank and credit union interest rates.

8. Watch out for add-on features.

Despite all the measures you've taken thus far to avoid getting charged more money out the door, it's always important to ask for an itemized cost list when discussing pricing. Sometimes tricky financing managers try to sneak in extras like an extended warranty that increases your price overall.

9. Beware of negotiating with four-squares.

If for whatever reason you found your way to a dealership without getting preapproved and you're, in fact, interested in financing through the dealership, make sure you stay mindful of the overall picture. Often car buyers will be shown a four-square worksheet that is used to distract them from how the numbers are being shifted around. The squares are used to identify any trade-in credit, vehicle price, down payment and monthly payment. 

Throughout the negotiations, you'll notice the notes in the squares become a lot more cluttered, disorganized and confusing. The goal of this tactic is to make you think the dealership is actually working with any pricing hesitations you may have and to get you to focus solely on the monthly payment instead of out-the-door pricing.

10. Take the pressure off.

At the end of the day, you have more leverage over the car-buying experience than you realize. Even if you spend three hours trying to get to your ideal price point, you can still walk away and give yourself the week to think about the purchase if you're feeling pressured. 

Source : http://money.usnews.com/money/blogs/my-money/2014/08/28/10-step-checklist-for-labor-day-car-shopping

The most hated car company in America is - MarketWatch

Shutterstock
Would you buy your car again?

If you own a Mercedes, your relationship with your car may be something akin to love (admit it, you've gazed longingly at that finely engineered machine). But if you own an Acura or a Dodge, you might feel a little, er, less adoring towards your auto, according to new data.

A survey released Tuesday by the American Customer Satisfaction Index revealed that customers' satisfaction with both domestic and foreign automakers hit a five-year low this year, falling 1.2% from last year to a score of 82 out of 100. What's more, satisfaction with 80% of the 21 car brands measured fell as compared to last year (Acura  saw the deepest decline at -7%, Cadillac   the second-steepest decline at -6%), while satisfaction rose for only 10% of the car brands, including Chevrolet and Buick. "The decline among automakers is widespread," the report revealed. The ACSI Automobile Report 2014 is based on interviews with 4,360 randomly selected consumers who were asked to evaluate their recent purchase (within the last three years) and experiences with automobiles.

The most hated car in America Is...

Some drivers may gaze lovingly at their sedan but not if they own some of the most disliked cars in the U.S., according to a new survey.

Forrest Morgeson, ACSI's director of research, says that part of the reason we're seeing this decline is that during the height of the recession automakers were offering a variety of incentives and perks for buying cars, and now many of those have dried up. And now consumers find themselves less satisfied with their auto purchases because they're not getting as many incentives when buying a car. Furthermore, he adds that the myriad recalls impacting the auto industry recently have made consumers less satisfied with the industry as a whole.

The most-loved car makers include Mercedes-Benz which holds its No. 1 spot from last year despite a 2% decline in customer satisfaction, and Subaru Morgeson says that the dominance of Mercedes-Benz isn't surprising, as luxury cars — thanks to often superior quality and service — often dominate the rankings. Subaru and Volkswagen — though not luxury cars — tend to have smaller market share than many bigger brands in America, which helps with customer satisfaction rankings, and very loyal drivers (Morgeson likens them to Apple computer devotees in some ways), which puts them high on the satisfaction list.

On the flip side, Acura, which saw a 7% decline in customer satisfaction over last year, is the most unsatisfying car company to consumers, the ACSI revealed.

Morgeson says that this was a surprising finding and that the researchers aren't sure why it ranked so low (last year, it ranked in the middle), but says that it's possible that this brand simply doesn't meet consumers' expectations as much as other luxury brands. Acura was closely followed by Chrysler's Dodge which saw a 1% decline in customer service over a year prior, and by Jeep and Audi. Some of these brands' rankings were not surprising because less expensive brands tend to rank lower on the list on average, as they often have slightly lower quality and service than do luxury brands, says Morgeson. Acura, Dodge, Jeep, Audi, BMW and Cadillac did not respond to a request for comment, and Mazda could not be reached for comment.

Automakers are far from the most disliked industries among consumers; that honor goes to Internet (63 out of 100) and cable and pay TV (65) providers and airlines (69). And even the worst-ranked automakers don't score as low as some of the worst-ranked of those companies.

Still, there's room for improvement. Unfortunately, for recent car buyers, Morgeson says that one of the best ways for consumers to ensure that they get a car they're satisfied with is to do their homework before buying. Sites like Edmunds.com, AutoTrader.com and Cars.com can help you get started with the research. Consumer Reports also provides excellent reviews of cars. But, he adds, that voicing your complaints can help you get what you want with a car you own now; escalate your complaints to a higher authority if you're not getting what you want from the automaker.

Source : http://www.marketwatch.com/story/the-most-hated-car-company-in-america-is-2014-08-26

10 Step Checklist for Labor Day Car Shopping - U.S. News & World Report (blog)

Labor Day is a federally-recognized holiday which celebrates hardworking Americans with a day off from work. Unofficially, this day also marks the end of summer and is considered one of the best times to buy a new car.

TrueCar.com estimated that Labor Day weekend last year would boast 1.13 million unit sales among the country's leading automotive manufacturers. With the car-buying trend likely to pick up at a similar speed from the last Labor Day weekend, it's clear that now is the best time to buy a car for those in the market. But like any other major purchase – particularly purchases that require haggling – it's important to know the obstacles you'll face at the dealership.

Whether you're goal is to drive off your local dealership lot in a new car or you're waiting for incentives at the end of the year, it's important do a bit of reconnaissance about your target vehicle, and be armed with the right approach to secure the best deal.

Here are 10 must-dos before signing on the dotted line: 

1. Know your budget.

Calculate your monthly or recurring financial obligations before coming up with a price you're willing to spend on a car. Once you've determined how much your output is for bills and other regular expenses such as groceries and personal care items, consider your income after taxes. As a guide, a conservative range for a monthly car payment is within 10 to 15 percent of your available discretionary budget. A mistake that many rookie car buyers make is filling up the remainder of their available money stores with a massive car loan payment, without breathing room for essentials such as gas, annual registration, car insurance and maintenance.

2. Check your credit report.

Purchasing a car involves a two-way negotiation, particularly when you're financing a car instead of buying it outright. The reality is that loan lenders use your credit report and credit score as a basis for determining whether to even approve you for a new line of credit, what financing percentage of the vehicle purchase to offer, as well as what interest rate to charge on the loan. All of these factors affect the overall affordability of the car you're eyeing.

Before the test drive, know where your credit stands. Request a copy of your credit report to make sure there aren't any errors casting your financial reputation in a negative light. If your credit score seems unusually low, and you've identified a mistake on your report, contact the three credit bureaus immediately to correct the issue.

3. Test drive ahead of time.

Cast a wide net by feeling out a variety of car models within your price point – before you decide you're ready to buy. The car you've dreamed about may not handle as well on the road as you'd have hoped, and there may be features you were expecting that the manufacturer doesn't offer for that model. Test driving a car on the day you're expecting to buy can add undue pressure on you at the dealership and cause anxiety because you're unprepared.

4. Identify the trim level you want.

Besides locking in your budget and deciding the make and model of the car you want, make sure you know the features and upgrades you need, are indifferent about and simply do not want. Make these granular details known to the sales associate you're working with, and be firm about what you want. This way there isn't a question about whether you'd be OK with paying more for a moonroof and 18-inch wheels when you walked in wanting a base model at $2,000 less.

5. Research average price points.

At this stage in the game you've identified how much you realistically can afford and what you want in a car, but what's equally important is knowing what price points are available for the car specifications you want. Using online tools like TrueCar.com can help demystify how much of a deal you're really getting.

Car-buying sites can reveal a wealth of information about pricing, which you can use when negotiating a car purchase. When walking into a dealership, it's important to know the manufacturer's suggested retail price (MSRP), the invoice price (how much the dealer pays for the car) and the average amount paid in your area.

6. Seek out manufacturer or dealer promotions.

High car-sale periods of the year, like Labor Day weekend, are a good time to buy a new car because dealerships are looking to push current year inventory out to make room on the lot for 2015 vehicle models. Some manufacturers also recognize these holidays are a good opportunity to encourage more purchases, so keep a lookout for discounts or rebates for 2014 stock.

7. Get a preapproved auto loan.

Probably the most vital – and effective – item on this checklist is securing preapproved financing from your bank or credit union. Preapproval shows dealerships you're serious about purchasing a car now, so you can cut some of the back-and-forth haggling from the get-go. Also, it keeps your budget defined, helping you avoid up-sells, and likely keeps your auto loan rate as low as can be, as dealership-based loans are often not highly competitive compared to local bank and credit union interest rates.

8. Watch out for add-on features.

Despite all the measures you've taken thus far to avoid getting charged more money out the door, it's always important to ask for an itemized cost list when discussing pricing. Sometimes tricky financing managers try to sneak in extras like an extended warranty that increases your price overall.

9. Beware of negotiating with four-squares.

If for whatever reason you found your way to a dealership without getting preapproved and you're, in fact, interested in financing through the dealership, make sure you stay mindful of the overall picture. Often car buyers will be shown a four-square worksheet that is used to distract them from how the numbers are being shifted around. The squares are used to identify any trade-in credit, vehicle price, down payment and monthly payment. 

Throughout the negotiations, you'll notice the notes in the squares become a lot more cluttered, disorganized and confusing. The goal of this tactic is to make you think the dealership is actually working with any pricing hesitations you may have and to get you to focus solely on the monthly payment instead of out-the-door pricing.

10. Take the pressure off.

At the end of the day, you have more leverage over the car-buying experience than you realize. Even if you spend three hours trying to get to your ideal price point, you can still walk away and give yourself the week to think about the purchase if you're feeling pressured. 

Source : http://money.usnews.com/money/blogs/my-money/2014/08/28/10-step-checklist-for-labor-day-car-shopping

Wednesday, August 27, 2014

NJ Car Dealer, Subject of ABC News Probe, Ordered to Repay Customers Sold ... - ABC News

PHOTO: Pickup truck