Used Cars are Overpriced!
Aren’t used vehicles supposed to be a bargain? I thought that Kansas City Used cars as well as other used car dealerships were known for keeping the prices low on their Altima Inventory. With the rebates and incentives being offered at Peoria Volkswagen on brand new vehicles, the used car market needs to rethink its pricing strategy if it wants to remain competitive.
According to Automotive News, used car prices have increased 6% from last year’s sale prices. The price on a used-truck has increased 11%, full-size van prices have gone up 33%, used SUV prices are up 11%, and even the luxury vehicle used-car price range has increased by 18%. Those are some hefty percent increases in prices and consumers already have tight budget constraints. So as consumers we have to wonder if these price hikes are likely to stick around or if we are in the used-car shopping market should we wait for prices to go down?
Economists are estimating that prices are likely to stay high for the time being. Keep in mind that used cars come to dealerships from expired leases, repossession, rental car companies upgrading their models, and from trade-ins when a new car is purchased. One likely reason for the high price on used cars is that new car sales are high. Most people who buy a new car are trading-in their old one for partial payment towards the new vehicle. When you combine that with the fact that the number of repossessions have decreased over the past few years as the economy is stabilizing and rental car companies aren’t upgrading their stock every year, there simply are less used cars available. The economy is stabilizing, but people still want to save money when they can. That means that the demand for used cars is high, but the supply is low; remember supply and demand from high school economy class?
So if you are looking for a different vehicle, consider the incentives still available on the new vehicles. Over time, the price of used-cars will drop back down to where it belongs. The good news is that when you go to buy that new car, your trade-in might be worth more than you think!
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The Top 10 Recalls of 2010!
It has been a busy year thus far and we are only half way through it! Toyota’s monstrous recall of almost 8 million vehicles set the media stage for any other flaw to be overly publicized. Keep in mind as you are reading that many vehicle recalls have to do with an optional feature, and the vehicles are typically safe to still be driving. Lucky for Peoria VW dealer and Chapel Hill Hyundai, neither of their brands made the Top 10 list! GM dealerships and Boston Toyota Deals took the brunt of the most vehicles affected thus far in 2010.
10) Chrysler Town & Country and Grand Caravan 2008-2009. This recall affects approximately 285,000 vehicles and is related to the sliding door feature’s circuit that can overheat and possibly cause a fire.
9) Chrysler Jeep Wrangler 2007-2010. This recall affects 289,000 vehicles and was issued because brake fluid can leak which will result in a loss of the brakes with the wheel being affected. There is an increased risk of crash.
8 ) Chrysler Town & Country, Caravan, and Grand Caravan 2005-2006. This recall was because the front crash sensors may leak water into them, which would make the safety feature null and void. It affected about 309,000 vehicles.
7) Nissan Infiniti QX56, Armada, and Titan 2005-2009. The fuel gauge on the instrument panel for these vehicles will inaccurately show the tank still has fuel when in actuality, the tank is empty. Affecting around 340,000 drivers, talk about an inconvenience and also the lesson to not let your tank drop below a quarter full.
6) Honda Acura, Accord, Civic, CRV, Odyssey, and Pilot. Various models were affected for the years 2001-2003 and affected around 379,000 vehicles. This recall related to the vehicle’s airbag inflators, specifically the driver’s side airbag. The inflator was producing so much internal pressure than when the bag inflated, metal shards of the ruptured inflator would also deploy with the airbag, resulting in injury or death to the driver or even other passengers as it is unpredictable how the metal shards would deploy.
5) Honda Element and Odyssey 2007-2008, affecting 412,000 vehicles. The VSA modular pump was compromised during a self-check, allowing air to enter the unit, limiting braking power, and possibly resulting in a crash.
4) GM Chevrolet Cobalt 2005-2010 and Pontiac G5 2007-2010. Many drivers remember this giant recall of over 1,050,000 vehicles this spring. Officials report an increased risk of crash when the power steering assist function could spontaneously stop working.
3) Toyota Corolla, Highlander, Matrix, Venza 2009-2010 models. Around 1,093,000 vehicles were affected with an accelerator pedal problem. The pedal could become stuck and cause the driver to have unintentionally high speeds.
2) GM, too many various models and years to list! This recall issued June 4th, 2010 affected a whopping 1,365,000 vehicles. As afore mentioned, this is one of those little optional problems. The washer fluid heater was catching fire; GM says they are disabling the feature as a fix has not been found.
1) Toyota Avalon, Camry, Corolla, Highlander, Rav4, Sequoia, and Tundra various model years 2005-2010. What a way for Toyota to start off the year! This recall was released January 21st, 2010 affecting 2.2 million accelerator pedals. It is hard to push down, may be sticky returning to idle levels, or become stuck in an accelerated position.
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Did You Hear About the Latest Recall?
You open your morning newspaper or check you email news headlines only to find the word “Recall” splashed across the page in ugly, finger-pointing red. As consumers, we have to wonder why there are so many recalls. Is the auto industry getting lazy? Is it the companies the automakers get their supplies from who are to blame? Dealerships who have been affected like Boston Import Dealers and Peoria VW want to know why they are getting so many calls from their customers about whether or not their vehicle has been recalled. It may just be safer for buyers to get a Ford Taurus, but on the other hand, many buyers are loyal even to the recalled models and want more of an answer as to why recalls are topping the headlines for 2010.
If you dig deep into all the numbers, you will find that we have not broken any records for the amount of recalls. In fact, a recall is a way for the consumer to be protected, often before a customer has had the chance to experience the problem. When Toyota, one of the world’s most reliable brands, issued their giant recall of over 8 million vehicles, it opened a whole new realm of media reporting. That has caused a snowball effect on later companies experiencing a recall. It is hard to say if Nissan, Honda, Toyota, Chrysler, and GM are being more or less meticulous when it comes to automotive production, but one thing is certain; there is more media attention being paid to every tiny detail.
With an estimated 25 million vehicles having been recalled over the last 3 years, that makes Toyota’s 8 million single recall still large, but a bit more in perspective. One possible reason could be that vehicles are made differently and end up being far more advanced and complex that even ten years ago. Just like when any new technology comes out, there are always going to be a few bugs but they always work themselves out or the product fails and is taken off the market. It is also known that many of the recalls are for advanced technological features that can’t injure drivers. One example is GM’s recent recall for their heated windshield wiper fluid causing fires. There are no reports of actual injuries. And honestly, if you don’t want to wait for your windshield to defrost, buy a car with the remote start feature and start your car a few minutes before you have to leave.
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Ford Beats Detroit Rivals in Vehicle Quality Study!
A study by J.D. Power found that Ford was the leader in new vehicle quality over European and Asian automakers for the first time in a long time. The study is in its 24th year this year. Revamped brands such as the Ford Lincoln, which is sold at a Concord Lincoln dealer and other dealers, have contributed to this improvement. Also, the Big 3 automakers in Detroit were also ahead of Asian and European vehicles. GM, Ford, and Chrysler, whose pre-owned models can be purchased at a Kansas city used car lot, averaged 108 problems per 100 vehicles while European and Asian vehicles averaged 109 problems per 100 vehicles.
The study said that models such as the Ford Fusion, Ford Focus, Dodge Ram, and Buick Enclave helped the American automakers take the top position in the study. It is thought that Toyota Motor Corp. brought down the score of Asian automakers due to the recalls of 2010 that have affected several new models. Toyota slipped below the industry average for the first time with 117 flaws per 100 models.
Foreign brands had better vehicle quality among the crossover, SUV, and van markets, while domestic brands had better quality among the car and pickup markets.
Ford was one of the strongest competing automakers with 12 models placing in the top three of their segments. Ford averaged less than one problem for every new model. Ford ranked eighth in 2009 and in 2010 they placed fifth overall, which is Ford’s highest rank ever in the 24 year history of the study.
GM’s quality declined as all four of their brands were below the industry average in the study. GM did have 10 models ranked in the top three of their model segments. GM’s Buick brand had 114 problems per 100 models which was an improvement from the previous study.
The car industry as a whole experienced more flaws per new vehicle as it increased to 109 problems per 100 vehicles in 2010 from 108 problems per 100 vehicles in 2009.
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BMW Announces Recall.
BMW announced a minor recall for certain 2011 5 SAV and X6 SAV passenger vehicles that were manufactured on April 1 through May 8, 2010. BMW is a popular North American vehicle brand along with Mazda whose vehicles may be purchased at a St. Petersburg Mazda Dealer or other local dealership. GM also recently put out a recall for several of their own models include 2006-2009 Hummers, Tahoes, Escalades, Cadillacs, and several other models which can be purchased at a Rocky Mount Chevrolet Dealer, but for a potentially more serious fire hazard
The vehicles have tire labels that are not compliant with Federal Motor Vehicle Safety Standard No. 110, “Tire selection and rims”. The vehicles were equipped with 20 inch wheels, however the label says that the vehicles are actually equipped with 19 inch wheels. The mislabeled tire can result in the tire being inflated improperly. Improper inflation can cause a tire to fail prematurely or it can cause handling problems.
BMW will send out notices to the select owners that the recall affects and offer new labels for free. Owners may affix the labels themselves to their vehicles, or they may take their vehicles to a local dealer to have the labels affixed free of charge. The recall is expected to affect a small number of vehicles.
The BMW X6 is a mid-sized luxury crossover vehicle that is manufactured by German automaker BMW. It was first released for sale in the second quarter of 2008. It combines the size and look of a coupe vehicle with the 4 wheel drive, all weather ability, and large wheels of an SUV.
The 2011 BMW X6 will feature a new single turbo twin-scroll N55 engine. The X6 also features a Dynamic Performance Control system that is designed to improve vehicle control by regulating traction and correcting over and under steering. The Dynamic Performance Control system is an all new safety feature for BMW.
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GM Issues Massive Recall of 1.5 Million Vehicles.
Last week, GM issued a major recall of over 1.5 million vehicles many of which are sold at an Indiana Chevrolet dealer. The recall was issued to prevent fires from a fault in the heated washer fluid system in various models ranging from 2006-2009. Several models are affected by the fault including the Buick Lacerne, Cadillac, Hummer H2, and several other models. Competitors like Ford, whose cars can be found at an Ohio Ford Service, hope to use the latest recall news from GM as an opportunity to improve their own market shares.
There are no known current injuries or accidents that have resulted from the manufacturing defect. Jeff Boyer, executive director of safety at GM said, “While our analysis shows the number of incidents is very small compared with the number of vehicles on the road, we want our customers to have complete peace of mind . We always want to make sure customers can count on the safety and quality of their GM vehicle.”
Affected models may be sent to dealerships in order to be repaired. At dealerships, mechanics will remove the heated washing fluid component and reroute the washer fluid hoses. GM is offering car owners $100 for the loss of the heated washing fluid feature on their vehicle. GM owners will receive letters concerning the recall during the month of June and they may call local dealers to schedule repairs.
GM joins Toyota as two major automakers that have had to issue recalls for over a million vehicles each in 2010. Toyota has issued approximately 10 million recalls from 2009 to 2010 for braking problems, accelerator sticking problems, and other defects. GM historically has not had very many safety problems relative to Toyota and Ford. GM hopes that the recalls will prevent any injuries and maintain the company’s image as a safe and reliable manufacturer.
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Ford’s Recall History is Much Greater Than Toyota’s
With recalls from Toyota being the most common automobile news story in 2010, it is easy to overlook that Ford and other manufacturers have had a larger amount of total recalls than Toyota. With a look at a few statistics, it is easy to see that Ford has had many more vehicle manufacturing problems than Toyota, although perhaps the level danger of those problems has not been as bad as the sticking accelerator. Other automakers like Nissan, whose models can be found at a Used Nissan dealer, and GM, whose models can be found at a Route 22 Chevy Dealer, have dealt with a lot fewer issues compared to both Toyota and Ford in their histories.
Toyota had the most recalls out of any automaker in 2009 with 4.8 million Toyota and Lexus models being recalled. In 2010 so far, Toyota has recalled over 4.5 million units for various problems including the Toyota Prius, Lexus and other models. The 2009 recalls deal with the Toyota Prius and several other models include the Avalon, Camry, Tacoma, and Tundra from various years that had a problem with the accelerator sticking to the floor. The 2010 recalls are mostly with the Prius which has had braking problems.
However great the sheer amount of recalls are for Toyota, Ford has had even more recalls in its history. Ford has recalled over 20 million vehicles in its history. An interesting fact to note is that in 1996, Toyota and other Japanese automakers became to dominate the car market in North America. It was this same year that Ford had the highest number of recalls ever – nearly 8 million units. The bad publicity from this large number of recalls helped other automakers take over the top position that Ford occupied in the North American market.
Now it seems that the tides have been turned, with Ford posting very strong first and second quarter results for 2010 thus far, and Toyota being on the defensive with their marketing and recall issues. Time will tell if Ford reclaims the position it once had as a top North American automaker, but things couldn’t be looking better for Ford.
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Toyota Offering Voluntary Recalls on Lexus Vehicles
Although Toyota certainly does not need any more recall news, in late May they announced a recall of their Lexus LS 460 and LS 600h L models because of a steering wheel defect. Ford is competing well against Lexus with their new 2010 Lincoln MKZ and other luxury models which can be found at a Portsmouth Lincoln Dealer. Toyota might be playing it safe more than anything with their latest vehicle recall. Used Lexus models can be found at a Kansas city used car lot.
The recall is said to affect 3,800 late 2009 and some 2010 LS 460 and 600h L models. The models affected are those equipped with Variable Gear Ratio Steering (VGRS) and the problem is a steering wheel off center condition that may happen when a certain driving maneuvers are performed.
The purpose of the VGRS system is to improve handling during low speed driving and provide stability during high speed driving. The problem with the VGRS system is said to occur when the vehicle is driven away quickly after a very tight turn in which the steering was in full lock.
In most driving situations such as regular intersection turning, the Lexus would not run into this problem. There was one reported incident with the vehicle steering with no accidents or injuries yet. Steve St. Angelo, Toyota’s chief quality officer for North America said, “Our entire company is taking major steps to become a more responsive and safety focused organization. We’re listening closely to our customers and taking action to address this steering issue in certain Lexus models quickly.”
Toyota has moved quickly to respond to recall problems due to recent accelerator issues on certain Toyota models that have resulted in accidents, injuries, and at least 34 deaths. The Toyota Prius Hybrid was one of the most affected models. Toyota has recalled over 10 million vehicles in the past year in an attempt to fix the sticky accelerator problem and other problems that have arisen.
However, Toyota was recently rated as a top automotive manufacturer in by a J.D. Power study that addressed reliability, manufacturing quality, and technology among other factors.
