Now that leasing seems to be going through a slow phase-out, shoppers looking for a good deal on a newish vehicle may take a harder gander at certified pre-owned models. GM realizes this and has responded by ambushing customers increasing the warranty coverage on the CPO models for all of its brands, minus Cadillac which has its own program. The new warranty stands at 12-months or 12,000 miles and begins when the CPO purchase is made -- an increase of up to nine-months over the previous guarantee. Being a "bumper-to-bumper" warranty, everything excluding wear items like tires and brakes are covered for manufacturing defects. The powertrain warranty remains: five years or 100,000 miles from when it was sold as new. GM hopes that this increased coverage has a corresponding effect on its CPO sales. What's more, the automaker also believes that this action will have a desirable effect on its vehicle's residual values.
If you're already stretched paper thin under the financial weight of a thirsty, expensive vehicle, getting out of it for something more fuel efficient might seem like an unattainable dream. Fear not, the smarties over at Consumer Reports have rightly pointed out that since depreciation accounts for nearly half of the cost of a car during its first five years of ownership, buying a used miser is the best way to save money and resources.
The usual suspects top CR's lists; both the under $10,000 and $10,000-$20,000 categories are dominated by Toyota and Honda products. Honda's Insight is deemed the zenith of $10,000 sippers, with the '01-'02 Prius right on its heels. For the higher-price category, the first two slots are occupied by the Prius, and Honda's Civic Hybrid takes the next two seedings. Rankings are based on CR's own fuel economy tests, done with a flow meter and repeatable drive cycle, and overall assessments of the vehicle's quality and reliability likely play big roles in how the list was compiled. It is also noted that older vehicles may be missing out in some more modern features like stability control and side-curtain airbags, but that may be more of an issue for the under $10,000 set, which stretches back to vehicles from the late 1990s. Hybrids might be tough to secure right now, especially for a reasonable price, but going used might allow you to ease your consumption while dodging a high-buck purchase to do so.
If vehicles could be sainted, stained-glass artists all over the U.S. would be busy figuring out the best colors for the Toyota Prius to shine in. Brand new examples of the motorized mollusk that everyone can't wait to buy spend just five days on dealer lots. Last year's model lasts just fifteen days more.
The real coup, however, is in the prices. An unused Prius requires about $26,672 to take home. The used version, with fewer than 10,000 miles, goes for around $27,945. That's right, nearly $1,300 more. More incredible: a 2007 model with more than 22,000 miles will only save you $276 compared to the price of a shiny new 2008. We're not sure you can even call that depreciation.
Toyota is increasing Prius production, but that'll take a moment to be felt on dealer lots. In the mean time, if you absolutely have to have a hybrid, we see a Malibu in your future...
If you act now, you can purchase the 2001 Audi A4 Avant in the picture above. If you want the whole car, as is, it will cost you $2,500. If -- for reasons we can't fathom -- you want the car without the front bumper, it will cost you $2,350. If you want that same car, but don't want the wheels, well, that paperweight will cost you $2,000. Strike all three important components and the aftermarket stereo, and this fine piece of German engineering is yours for the bargain basement price of $1,300.
The caption in the photo above is due to the fact that its owner, Ben, believes the car is "boss" and intimidates other basic transportation, like a Ford F-350. But don't make a play for it until you've seen the rear. Specifically, the plank of old growth timber that's posing as a bumper. According to that bumper, Ben's treasure is in heaven. Yours, according to Ben, is in Cincinnati. If you put $5 bucks in the tank, he'll let you test drive it, and if you swing by you can shake his hand. Now that's boss.
Some folks out there simply refuse to buy a new automobile off the showroom floor. They cannot bring themselves to fork over the funds for an item that depreciates in value so quickly after pulling away from the dealer's lot. The world of certified used cars arose for these frugal minded individuals. Certified used cars offer sufficient warranty coverage, enough miles on the odometers to assure that they are not lemons and little to none of the instant investment nose dive. Now Lamborghini is joining the ranks of manufacturers offering pre-owned vehicles through its dealership network so wealthy super tight wads can feel a little bit better about splurging for a Lambo. This will also make it easier for those who have to be seen in the latest and greatest to trade up from old to new models.
The program begins in July and extends to all Gallardo and Murcielago models through a network of 31 authorized dealers. To be certified, however, the vehicle must meet a list of criteria. The car must have seen less than 22,000 miles with all maintenance fully documented. It also must pass a 150-point inspection performed by the dealer. Any non-OEM equipment (wings, stereos, Gumball 3000 decals) will not be accepted as they do not meet the required standards.
Spend more for the cutting edge of luxury and style, and you could wind up taking a larger whack than most when it's time to trade in that sled. The National Automobile Dealers Association (NADA) is reporting that premium luxury vehicles actually have the highest annual depreciation rate. The reason for the stone-dropping value is that luxury car buyers tend to want the latest and greatest. The preference for the next big thing leads to owners turning in their current cars faster than people who will drive a Taurus until its wheels fall off. Manufacturers also keep rolling out new versions of their top-tier cars to keep these customers coming back for more, which also takes a bite out of resale value since the next iteration is often right around the corner. Those cars that don't get refreshed as quickly end up with heavier incentives to maintain their sales volume in between refreshenings. In the end, it's a win-win for everybody. Automakers continue to move iron, early adopters beta test the products for the rest of us, and if you're willing to be a little bit behind the curve, you can pick up a three-year-old car for a small potatoes and still feel like you're living large.
Topping the list of annual value-losers is Jaguar's XJ8, which drops 25 percent in just a year. Mercedes-Benz, Audi, Lexus and Volvo also make appearances in NADA's top ten list of dubious distinction. The luxury cars are kept company by such ignominious vehicles as the Suzuki Verona, Hyundai Accent and Kia Rio. Judging from those rankings, it looks like the top and bottom extremes lose their value the fastest. If you're in the market for a Joneses-pleasing marque, this is good news.
All you people with a 10-year-old car – drive it, drag it, push it or pull it! Mexico is paying top dollar!
Starting today, the only used cars the Mexico government will allow across its borders for resale are those exactly 10 years old. That means your 1998 Hyundai Accent has appreciated in value for the first time since you drove it off the lot. But your 1997 Astro van is, believe it or not, worth even less than it was last year, and you 1999 Daewoo Nubira drivers will have to wait until next year to cash in.
There are two main reasons for Mexico's seemingly arbitrary automotive adjudication. First, its new-car dealers are tired of trying to compete with all manner of relatively inexpensive, recent-model used cars from the U.S. Second, the government says cars older than 10 years are wreaking havoc on the country's air quality.
Until now, it was legal to import cars into Mexico that were between 10 and 15 years old. The Mexican Association of Automobile Distributors fought for the newer, more restrictive law to, as quoted by The Detroit News, "stop the accelerated conversion of our country into the world's biggest automotive garbage dump."
eBay Motors and General Motors have announced a new agreement that will see the automaker's entire inventory of certified used vehicles go up on the digital block of the internet's most popular auction service. GM doesn't say exactly how many vehicles it will add to eBay Motors' listings, but there are currently over 3,900 dealerships selling certified used vehicles for the General. For its part, eBay Motors will be charging GM dealers zilch to list their certified used vehicles for sale on its site, which is a much better deal than you get when trying to unload that '99 Malibu.
It used to be that kids did the darndest things. Lately, a lot of kids seem to be more into wacked-out-WTF things, like a 17-year-old Manhattan high-schooler in Long Island, NY who was the ringleader in a scam created to rob folks looking to buy a Porsche.
The scam was quite simple and took advantage of folks looking for the too-good-to-be-true. The ringleader would post an ad on craigslist for a used Porsche -- in one case for a 2002 Porsche Turbo for $50,000 OBO, in another case it was for a 2005 Carrera GT that the "owner" had simply "gotten too old for." The siren-goes-off part of the ads was when the owner requested that potential buyers bring $22,000 for the down payment on the car.
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