Analysts Say More Cars Sold In March Than Any Month Since August 2007
Official stats on March auto sales won't be available until next week, but analysts are already predicting a bang-up month. In fact, the folks at Kelly Blue Book think March could be the best month for new car sales since before the Great Recession.
In all, KBB expects to see 1,450,000 vehicle sales in March 2013 -- a high that hasn't been achieved since August 2007. After adjusting for the number of selling days this month, that figure represents a 7% jump over March 2012. As exciting as that may be for dealers, though, analysts had been expecting this kind of growth, so the seasonally adjusted annual rate of sales remains flat at 15.2 million vehicles.
Why the increase in March? KBB's Alec Gutierrez suggests it's due largely to America's improving economy and the rise in employment figures. Car loans are also easier to come by these days, and let's not forget the tax returns that are burning holes in some consumers' pockets.
WINNERS & LOSERS: AUTOMAKERS
Volkswagen is projected to be this month's big winner, with sales around 9.6% above March 2012. That said, VW posted mostly double-digit gains last year, so 9.6% could be considered a drop in growth. Also, Volkswagen's monthly sales volume is expected to clock in around 53,000 -- less than half that of other major manufacturers, meaning that a small uptick in VW sales can seem like a big jump.
Perhaps the more notable winner is Honda, whose Accord has been a major hit with consumers. In all, Honda is expected to move 138,000 units in March, a year-over-year increase of 8.7%
Also gaining ground: General Motors (up 6.5% over March 2012), Ford (4.5%), Chrysler (3.4%), and Toyota (2.8%).
At the bottom of the ladder we find Hyundai/Kia, down 6.1% compared to March of last year. Though KBB doesn't offer any suggestions why the South Korean sisters might be off their game, it could have something to do with the EPA's investigation of their fuel economy claims.
WINNERS & LOSERS: SEGMENTS
At a national average $3.65 per gallon, gas remains expensive (though not as pricey as it was a year ago, when it flirted with $4). That fact, combined with the introduction of some great-looking small SUVs in recent months has made the compact crossover the best-selling segment in America. When March data rolls in, KBB expects those models to be up 8.4% over last year.
But the top segment of all should be full-size pickups, with an estimated year-over-year growth of 14.9%. That's in part because incentives on trucks are high right now, but it's also because the housing sector is on an upswing. And as we all know, more construction means more pickup sales.
In fact, the only loser, segment-wise, is the subcompact car. Sales are expected to ring in around 64,000, off 6.7%. That could be because folks are willing to spend more on slightly larger vehicles, though it may also be because incentives are better on bigger models.
Have you bought a car lately, or are you planning to? Let us know which vehicle(s) you're looking at and whether they match up with KBB's projections.
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This story originally appeared at The Car Connection
Ford Tops General Motors, Toyota In Loyalty; Hybrids Gain Traction
Ford Motor Company may not be as big as General Motors, Toyota, or Volkswagen, but when it comes to the loyalty of American customers, Ford has the competition beat. According to Experian Automotive, Ford dominated the showrooms in both corporate and brand loyalty during the last three months of 2012.
CORPORATE LOYALTY
Corporate loyalty is a consumer's devotion to a particular automaker, regardless of brand. So, for example, if a Buick owner went shopping for a new car and came home with a Cadillac, she'd be considered corporate loyal to General Motors.
Of all the Ford owners who bought new cars in Q4 of 2012, 47.9% of them drove off with a Ford or Lincoln. That put Ford at the top of the corporate loyalty heap.
Coming in a very close second was General Motors, with a return rate of 47.7%. And Toyota rounded out the top three at 46.9%.
BRAND LOYALTY
Ford was also tops in brand loyalty, meaning that owners of F-150s, Fiestas, Fusions, and other Ford models were very likely to purchase another Ford-branded vehicle. All told, 47.1% of Ford owners who shopped for another car in Q4 purchased another Ford. (Coming in a statistically distant second was Mercedes Benz, which had 43.7% return customers.)
What's behind this surge in brand loyalty? It probably has something to do with the fondness that drivers have for specific Ford models. Of the ten vehicles most likely to inspire brand loyalty in Q4, a whopping eight were made by Ford.
The Ford Fusion came in at the top of the list, with 60% of Q4 shoppers who owned Fusions opting for another Ford vehicle. (Note: They didn't necessarily purchase another Fusion, just another Ford.) The Chevrolet Sonic and Kia Forte are the only non-Ford rides on Experian's list of loyalty-inspiring vehicles:
Ford Fusion: 60.0%
Ford Flex: 58.0%
Ford Edge: 57.1%
Kia Forte: 55.6%
Ford Five Hundred: 53.3%
Ford Fiesta: 53.2%
Ford Escape: 52.8%
Chevrolet Sonic: 52.4%
Ford Focus: 52.1%
Ford Taurus: 49.3%
In its analysis of Q4 sales, Experian uncovered some other unrelated but very interesting data. Two of the firm's biggest findings had to do with vehicle turnover and hybrid vehicle market share.
- According to Experian, Americans now keep their vehicles for 66.2 months, or about 5.5 years. That's down slightly from the 68.1 months seen in 2011 and would seem to indicate that consumers' reluctance to purchase new vehicles -- inspired by the Great Recession -- is coming to an end.
- In the last three months of 2012, hybrids made up 1.03% of all vehicles in operation in the U.S. That might not seem like such a big deal, but it's the first time that hybrids have ever broken the 1% mark. Given the growing range of hybrids available to consumers, we'd expect that number to continue growing in the months and years to come.
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This story originally appeared at The Car Connection
2014 Kia Forte Koup Range Gains Sporty New SX Model
The Kia Forte Koup lineup just got a whole lot sportier at the 2013 New York Auto Show: the new 201-horsepower, turbocharged Koup SX has made its debut alongside the base Koup EX.
With 201 horsepower and 195 pound-feet of torque from its 1.6-liter, direct-injected turbo four-cylinder engine, the Forte Koup SX is the most powerful Koup model ever.
With front-wheel drive and a six-speed manual transmission (a six-speed automatic is available), the Koup SX aims to be Kia's sportiest model. The Koup EX comes standard with an automatic transmission for its 2.0-liter, 173-horsepower four-cylinder engine.
"The Forte Koup is arguably the sportiest vehicle in our award-winning lineup, and it has helped raise Kia’s brand awareness significantly among automotive enthusiasts," said Michael Sprague, executive vice president of marketing & communications, Kia Motors America. "Its rakish design, premium amenities and powerful turbocharged engine set it apart from the competition."
The Koup SX and EX join the Forte sedan and hatchback, and despite the performance-directed marketing and turbocharged engine, there's still plenty of Kia value going on as well.
As with the Koup EX, standard features include UVO eServices with Rear Camera Display, Bluetooth wireless, SiriusXM satellite radio, LED lighting, and a leather-wrapped steering wheel--but adds 18-inch alloy wheels, dual chrome exhaust tips, and LED tail lights. Optional extras include HID headlights, dual-zone climate control, SmartKey with push-button start, 10-way power driver's seat, and more.
The Kia Forte Koup SX also has its own aesthetic features, with a larger opening in the bumper and grille, black gloss grille inserts, larger front brakes, alloy pedals, and "carbon fiber-style" interior and exterior accents.
The new Koup range goes on sale in the fourth quarter of 2013. Pricing and other details will be announced closer to its retail launch.
To learn more about the Kia Forte range, including our take on what it's like behind the wheel, read our full 2014 Kia Forte range review.
This story originally appeared at The Car Connection
Nearly One-Third Of Car Buyers Opting For 72-Month Loans
Rising auto prices may be a contributing reason why a record number of consumers are going into longer car loans.
According to market research by J. D. Power and Associates, nearly one-third (32 percent) of car buyers taking out loans this month opted for 72-month terms. This is up some 30 percent from the same period one year ago.
The typical car purchase for which a consumer takes out a loan is $28,504 so far this month, up 3 percent from March 2012.
As reported in the Los Angeles Times, John Humphrey, senior vice president of J. D. Power and Associates’ global automotive practice, said that consumers who may have been shut out of the market in recent years may find that a longer loan period makes buying a vehicle more affordable.
As previously reported here, other reasons why consumers may be more willing to sign on the dotted line for a new car purchase include the average age of vehicles hovering around 11 years, which may signal pent-up demand, along with better credit availability, a number of new vehicles being introduced, improving employment numbers and an improvement in home values.
The J.D. Power research also pointed out another trend, that of shorter-term transactions. The typical 36-month lease contract, according to J.D. Power data, will account for 23 percent of auto sales this month, up 3 percent from 20 percent in March 2012.
This story originally appeared at The Car Connection
2014 Mitsubishi Outlander: First Drive
Can Mitsubishi still prove itself relevant in the U.S.? With the quirky Endeavor long gone, the flamboyant Eclipse coupes and convertibles now discontinued, the last Galant mid-size sedans carrying clearance stickers—and no replacement on the horizon for the Evolution sport sedan—you could argue that the brand is giving up on us.
Not so, officials insist. Led by the new 2014 Outlander that will begin arriving later this spring (and followed later this year by a new subcompact based on the Mirage), Mitsubishi at last has fresh product for the showroom.
And Mitsubishi isn’t messing around this time with niche appeal. In short—and in what smacks somewhat of a last-ditch strategy to pump its sales back up—the Outlander drives and feels, in many ways, as if the previous generation hadn’t existed.
That bears some explanation: With the last-generation Outlander, this crossover took a step toward the sporty side. But quite a lot of road harshness came with its sharp handling and good body control; and it was one of the heavier models in the class. And a lot of people simply didn’t get what we considered some of its better features, like the useful clamshell tailgate.
Still the Outlander, no longer the outlier?
The new Outlander is positioned more directly against strong sellers like the Toyota RAV4, Honda CR-V, and Subaru Forester. And it matches those vehicles in most respects, while beating them in features for the money.
The fundamentals look and sound like what you get throughout most of this class: There’s a 2.4-liter four-cylinder engine and a CVT (Outlander ES or SE), or a 3.0-liter V-6 and a six-speed automatic (Outlander GT), and power is delivered through either front-wheel drive or all-wheel drive. And with an overall length of about 183 inches, the new Outlander is right in the middle of the compact-SUV market—with most of those models recently updated.
Out on the high-desert roads of central Oregon, near Bend, we recently had the chance to put several versions of the 2014 Outlander to the test, and we found that spanning from the Outlander ES up to the Outlander GT V-6, there’s quite a difference in how this vehicle carries itself down the road. The ES four-cylinder that we spent the most time with was much more tossable and light-feeling—softly sprung yet agile, and a bit charming in the way that Japanese vehicles used to be.
The Outlander GT V-6 model no longer feels like a performance-tuned version. While Mitsubishi has cut up to 220 pounds from some versions of the Outlander, here especially the softer springs and in general more body motion signal that this is a model with more power but not the kind of performance chops as before. Yet big steering-wheel paddle-shifters do hint that this is the model for enthusiasts.
Base engine fits right in, but V-6 is underwhelming
Compared to the four-cylinder models, we don’t really see the GT as satisfying, or sensible. From the driver’s standpoint, it’s noticeably more nose-heavy, with a heavier steering feel (officials say the gear and even boost level is the same), and more awkward body motions in tight corners. There’s a lot of body lean in either of these versions, but in either case it’s a better handler than the CR-V; you can slingshot out of tight corners with plenty of confidence in the four-cylinder models.
While the V-6 sounds great when you’re wringing it out; it doesn’t feel that much stronger, and our anecdotal, seat-of-the-pants acceleration check pointed to it being a half-second better to 60, at best. There’s a nearly 300-pound difference between the two, and it makes just 224 horsepower and 215 pound-feet of torque and doesn’t churn out all that much torque at low revs. Takeoffs are quick only because of the six-speed automatic’s much lower first-gear ratio. And in addition to its lack of potency, premium fuel is recommended. Skip it.
(more...)Young Buyers Turn Their Backs On Japan, Look To Detroit & South Korea
The data is clear: folks under 35 aren't as interested in owning a car as their parents and grandparents were. But that doesn't mean they've given up on cars entirely -- and when they do need a set of wheels, they're spending less time loitering on the lots of Toyota, Honda, and other Japanese brands.
That's big news, and it comes to us via studies at both Edmunds and R.L. Polk.
As recently as 2008, folks between the ages of 24 and 34 heavily favored Japanese auto brands. Of all the cars young shoppers bought that year, a stunning 50.6% came from Toyota, Honda, Nissan, and other Japanese manufacturers.
That same year, just 35.4% of young buyers purchased vehicles from Chrysler, Ford, or General Motors.
But oh, what a difference four years can make: in 2012, Japanese automakers lost huge market share among 25-to-34-year-olds, slipping nearly eight points to 42.9%.
Where did those young shoppers go for their vehicles? Some went to the Big Three: Detroit's auto share among that demographic edged upward to 36.8%. That's in part due to snazzy rides that fit Millennials' budgets, like the Chevrolet Spark, Fiat 500, and Ford Fiesta.
But when it comes to market share, the biggest winner may be South Korean automakers -- specifically, Hyundai and Kia. In 2008, the two brands accounted for just 5% of sales to young auto shoppers. In 2012, that figure had doubled to around 10%.
According to Edmunds.com's Jessica Caldwell, that's not only because of youth-oriented rides like the Hyundai Veloster and Kia Soul, it's also because the twin brands have loosened credit restrictions for younger buyers, who might not have the long work history needed to secure loans elsewhere.
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This story originally appeared at The Car Connection
Cadillac SRX, Buick LaCrosse Recalled For Transmission Issue
General Motors is recalling certain 2013 model year Cadillac SRX crossovers and Buick LaCrosse sedans to fix a software glitch that could cause the transmission to shift unexpectedly from manual to automatic mode.
A notice on the National Highway Traffic Safety Administration (NHTSA) website puts the number of vehicles potentially affected by the recall in the United States at 26,582.
Documentation submitted by General Motors (PDF) to the NHTSA breaks out the recall population as 24,752 2013 Cadillac SRX crossovers built from May 29, 2012 through February 218, 2013 and 1,861 Buick LaCrosse sedans built from April 25, 2012 through March 6, 2013.
The problem
The NHTSA bulletin says that the vehicles in question, which the automaker indicates are equipped with the Driver Shift Control (DFC) feature, fail to comply with the Federal Motor Vehicle Safety Standard (FMVSS) No. 102, “Transmission Shift Lever Sequence, Starter Interlock, and Transmission Braking Effect.”
According to GM, a transmission software defect may cause the transmission to unexpectedly shift from DSC (manual) to Sport mode (automatic shifting). GM notes that “if the driver had used the DSC (manual mode) to achieve engine braking, engine braking would be cancelled.”
Loss of engine braking, warns the NHTSA bulletin, increases the risk of a vehicle crash. However, the DSC mode can be re-engaged, GM said, by moving the shift lever to Drive and then back to DSC.
GM discovered the issue on January 9, 2013 in an engineering development vehicle while work continued on the 2014 Cadillac SRX. The software was changed so that it does not affect the 2014 model.
As reported in The Detroit News, GM has no reports of owner complaints and there have been no crashes or injuries due to the condition.
What GM will do
General Motors will notify owners and dealers will reprogram the transmission control module at no charge. The GM safety recall campaign, identified as #13053, is expected to begin on March 28, 2013.
In the meantime, owners of 2013 Cadillac SRX and Buick LaCrosse vehicles with any questions or concerns may contact Cadillac at 1-866-982-2339 and Buick at 1-866-694-6546.
Alternatively, owners of vehicles involved in the campaign may contact NHTSA’s Vehicle Safety Hotline at 1-888-327-4236 or go to http://www.safercar.gov. Reference the NHTSA campaign ID No. 13V097000.
This story originally appeared at The Car Connection
Audi’s Smart LED Headlights Banned In The U.S., Okay Everywhere Else
During the 2012 Super Bowl broadcast, Audi debuted a commercial that put its massively bright LED headlamps in the spotlight. The clip's vampire theme was dull, but it got the point across: Audi has improved the common headlight.
But Audi hasn't just made those lights brighter, it's also made them smarter, and customers everywhere could soon reap the benefits -- well, everywhere but in the U.S., where Audi's innovation runs counter to U.S. law.
WHAT AUDI HAS DONE
A couple of weeks ago, we told you about Volvo's "permanent" high-beam headlights. Using sensors and cameras, Volvo found a way to leave headlights on their brightest setting while shielding other motorists from the glare. After a Volvo vehicle has passed those motorists, the headlight shields retract to illuminate the full expanse of road.
Audi debuted very similar technology back in January at the Consumer Electronics Show. It's called "matrix-beam LED lighting", and as you can see from the video embedded above, it involves clusters of LED lamps that turn off and on in response to other vehicles.
THE PROBLEM
That sounds great -- like something that could improve roadway safety and make life even simpler for drivers, right? Except for one small problem: it's illegal here in the U.S.
In 1968 -- two years before the National Highway Traffic Safety Administration was founded -- the U.S. instituted a regulation that required all vehicle headlights to be capable of switching from high-beam to low-beam. That rule is still on the books.
But the systems from Audi and Volvo don't involve a switch, per se. They're smarter than that, adapting to conditions without requiring input from drivers. That's something that regulators clearly didn't envision in the late 1960s.
NHTSA says that it's open to new technologies, but the agency isn't sold on this one. Most importantly, NHTSA isn't fully convinced that LEDs make roads any safer. In fact, some tests have shown that cars with LED brake lights get rear-ended more often than those with incandescent lights.
Audi and other auto industry reps will soon meet with NHTSA officials to see if they can update U.S. regulations or find a workaround.
In the meantime, shoppers in Europe will be able to enjoy Audi's matrix-beam LED lighting on the A8 sedan next year (for an additional $3,000). We'll let you know when -- and if -- that option becomes available on this side of the Pond.
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This story originally appeared at The Car Connection
2013 Dodge Challenger Recalled For Fire Risk
Chrysler is calling owners of about 2,500 2013 Dodge Challengers and warning them not to drive their vehicles and contact their dealer because of a wiring harness short circuit that could cause a fire.
Only 2013 Challengers equipped with a V-6 engine that were built over an eight-week period ending January 24, 2013 are affected by the safety recall. About 2,500 of these cars have been sold, while another 1,900 remain on dealer lots.
The wire harness could overheat or short circuit and possibly cause a fire. Chrysler said it is aware of seven fires, but no injuries, as a result of the problem.
While the Challenger is built on the same Brampton, Ontario, Canada assembly line as the Chrysler 300 and Dodge Charger, the parts involved in this recall are unique to the Challenger. Furthermore, Challengers equipped with a V-8 engine are not affected by the recall.
Chrysler considers the problem serious enough to warrant the owner phone calls and notification by mail, even going so far as to advise owners not to park their vehicles “in or near any structure,” according to a company press release.
The automaker said that dealers will arrange to pick up the cars and provide a loaner to owners while the Challengers are being repaired, all at no charge.
This story originally appeared at The Car Connection
Louisiana Tops List Of Most Expensive States For Car Insurance
There are plenty of reasons to like Louisiana, but auto insurance isn't one of them. According to a new study from Insure.com, Louisianans pay nearly three times as much for car insurance as drivers in some states.
To compile its rankings, Insure.com got insurance quotes on over 750 different vehicle models from 10 ZIP codes in each state, plus the District of Columbia. And it went through that process with six major insurers: Allstate, Farmers, GEICO, Nationwide, Progressive, and State Farm. All told, that's roughly 2.3 million individual quotes.
The website then averaged each state's 45,000-plus quotes to determine the statewide rate and, thus, national rankings.
Just to ensure (no pun intended) fair comparisons, rates were calculated for "a single, 40-year-old male who commutes 12 miles to work each day, with policy limits of 100/300/50 ($100,000 for injury liability for one person, $300,000 for all injuries and $50,000 for property damage in an accident) and a $500 deductible on collision and comprehensive coverage. The hypothetical driver has a clean record and good credit. The rate includes uninsured motorist coverage."
When all the calculations had been completed, Louisiana found itself in the unenviable #1 spot, with an average annual rate of $2,699.
According to Insure.com, a number of costly factors helped push Louisiana over the top, including:
- Bodily injury claims, which Louisianans are more prone to file than folks in other states;
- Natural disaster claims;
- Lawyers, which Louisiana claimants are prone to hire;
- Elected judges, who decide cases under $50,000 and who may be "more likely to side with local people than insurance companies".
Just a few steps behind, Michigan is nipping at Louisiana's heels, with an average annual rate of $2,520. The sky-high cost is due in part to the fact that Michigan "guarantees unlimited, lifetime personal injury protection (PIP) benefits for treatment of injuries from a car accident". Over time, that has resulted in some very hefty payouts from insurers.
Here's a rundown of the five most expensive locales for auto insurance:
1. Louisiana - $2,699
2. Michigan - $2,520
3. Georgia - $2,155
4. Oklahoma - $2,074
5. Washington, D.C. - $2,006
At the other end of the scale, we find Maine, with an average annual rate of just $934. That could be attributable to the state's largely rural population, but more likely, it's because of Maine's heavily regulated graduated licensing program for young drivers.
For comparison's sake, the five least-expensive states for insurance are:
47. New Hampshire - $1,112
48. Ohio - $1,106
48. North Carolina - $1,085
50. Iowa - $1,028
51. Maine - $934
In this particular study, the national average was $1,510.
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This story originally appeared at The Car Connection
