The Nine Things That Affect Your Car’s Resale Value
Some drivers obsess on it from the day they drive their new car off the lot--and some don't give it a thought until it comes time to move on to a new set of wheels.
Either way, both drivers face the reality of resale value, and it can be either a pleasant surprise or a cold wake-up call.
Resale value is something of a black art, mixing a car's age, its mileage, general condition, and equipment levels with less straightforward factors like popularity or supply. Most of the things that bring down resale value happen over time--but some of the features and fundamentals that can boost resale value or knock it down can be determined before you even leave the showroom.
It's simple to see how regular maintenance pays off in the end, for example--but you could be in for a surprise if you've chosen some features that weren't common just a decade ago.
To stay in control of resale value, know how these factors affect it:Brand. It's the painful truth for fans of some exotic brands, or even some popular nameplates known less for reliability. The first name of a vehicle can have a tremendous effect on its resale value, regardless of the condition or quality of the vehicle in question. Certain British and German vehicles are known for rapidly shrinking value, but some of the smaller Japanese nameplates lose their worth just as quickly. Among the best? Subaru, Honda, Hyundai, Mazda, and Toyota rank atop the mass-market brands according to residual-value forecasting company ALG, while Lexus, Acura, Infiniti, Mercedes and Audi fare the best in the luxury arena. These brands can retain more than 60 percent of their value after the first three years of ownership, while some vehicles from those other brands can fall to as little as 35 percent of their new value in the same time.
Drivetrains. Some buyers may like to shift their own gears, but most buyers don't. Should you deduct value ahead of time if you order a manual transmission? "This comes with a big 'if,'" says Eric Lyman, ALG's Vice President of Residual Value Solutions. "If you're selling a performance sports car where enthusiasts and adrenaline junkies make up the majority of buyers of these types of vehicles....sometimes the manual transmission can be more valuable than the automatic."
In general, an automatic transmission will recoup its cost, typically between $1000 and $2000. "Automatic transmissions nearly pay for themselves as the used market value is generally comparable to the new car price of this option," he adds.
Then there's the choice between all-wheel drive and four-wheel drive. "Except on rear-wheel-drive sports cars, all-wheel drive tends to add about $1000 on passenger cars, a bit more on utility vehicles and up to a few thousand on pickup trucks. Depending on the price in the new market this can be a worthwhile upgrade. This is especially true in regions where inclement weather makes all-wheel drive a valuable safety feature."
One surprise? All-wheel drive now shows up as a worthwhile resale item in the southern and coastal states, where wintry weather isn't a concern. "Even in the 'smile states,' all-wheel drive can add sporty driving dynamics to a front-wheel-drive vehicle, while also adding safety in the occasional downpour," Lyman explains.
Paint color. It can bring you down--or send you sky-high, in terms of resale value. If you don't get white, silver, or black, on a traditional Camry or E-Class, you're risking a slower sale--but the color palette on most mainstream cars isn't that gutsy to begin with. Put a Sunset Orange Metallic hue on a Honda Element that's already discontinued, or go with metallic purple at the custom-paint shop, and you could be looking at not selling the vehicle at all, for lack of interested buyers.
However, picking the right collectible color on your new sportscar can send the appreciation curve through the roof. Consider the 2013 Hyundai Veloster Turbo, which offers a $1,000 matte paint job and a hand-wash kit. If kept in excellent condition, it's likely to recoup all of that cost, since it's a limited edition--but in poor shape, that matte paint could just be a thousand-dollar liability.
(more...)Mahindra Finally Nixes Plans For U.S. Pickups & SUVs
In a move that should surprise absolutely no one, Indian automaker Mahindra has finally pulled the plug on plans to debut a line of pickups and SUVs in the U.S.
When last we heard from Mahindra, it was being sued by a collective of American dealers, who said that they'd invested considerable time and money in prepping for the arrival of the automaker's mystery vehicles. That, of course, was after the company's U.S. importer, Global Vehicles, had sued Mahindra for not delivering said vehicles on time. (Seems like a pattern, no?)
The former case has yet to be decided, but Mahindra won the latter in arbitration. Still, it's possible that all those nasty legal fees and burnt bridges have made the automaker think twice about wading into U.S. waters.
But if that's the case, it's not what Mahindra's telling the press. According to Reuters, Mahindra says that it has called off its foray into passenger vehicles because of "changes in the U.S. regulatory and market situation". (Which seems odd, considering that U.S. sales are on the increase, gas prices are on the decline, and truck sales are booming.) However, the company insists that it will "continue to monitor the U.S. situation and remain flexible with its approach to this market."
The centerpiece of Mahindra's new line of passenger vehicles was to be a pickup based on the company's popular Scorpio SUV. The truck had been in development since 2006.
However, all isn't lost for Mahindra fans. At least one analyst thinks that the company could make another go at the U.S. through its South Korean car company, Ssangyong. And if all else fails, Mahindra will still sell its lineup of tractors in the States.
We'll let you know when -- and if -- Mahindra changes its mind.
This story originally appeared at The Car Connection
NFL Quarterback Peyton Manning Touts Buick Verano In TV Ads
It’s a different kind of rivalry for two superstar NFL athletes: claiming screen time in TV ads for two of the Big Three Detroit automakers.
Just a day after the cameo appearance by the New England Patriots’ Tom Brady in the 2013 Dodge Dart commercial during the MLB All-Star Game, Peyton Manning, who just signed with the Denver Broncos, is set to appear in a TV spot for the 2012 Buick Verano that will air during the ESPN ESPY Awards tomorrow night.
In the Verano spot, Manning uses OnStar’s Turn-by-Turn navigation system and IntelliLink to figure out where he needs to go using voice commands.
We’d also be interested in hearing what you think about how far pro athletes will go to hock various automakers’ products, or help boost their image with consumers. The recent Buick LaCrosse car commercials with Shaquille O’Neal come to mind, although you can probably come up with a half dozen or more.
Does Manning fit in with the Verano's mission? Which campaigns with pro athletes do you think have been particularly successful? Let us know what you think in the comments below.
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This story originally appeared at The Car Connection
Volvo Hit With $1.5M NHTSA Fine For Late Recalls
Volvo Cars North America will have to pay $1.5 million in fines as a result of seven late recalls since 2010. That’s according to the National Highway Traffic Safety Administration (NHTSA) which on Tuesday ordered Volvo to pay the civil penalties to settle claims that the company failed to report safety defects in a timely manner.
As required by the National Traffic and Motor Vehicle Safety Act, all auto manufacturers must notify within five business days of determining that a safety defect exists or that they are in noncompliance with federal motor vehicle safety standards (FMVSS) and to “promptly” conduct a recall.
In January 2011, the NHTSA launched an investigation to determine whether Volvo had met its obligation under the law to notify the agency of a safety defect and to conduct a recall.
The NHTSA statement said the agency’s evaluation of the seven recalls, six of which occurred in 2010 and one in 2012, found that Volvo failed to report safety defects and noncompliance in accordance with law. The seven recalls covered approximately 32,000 vehicles, according to The Detroit News. The largest recall evaluated involved 11,168 2012 model Volvo S60, XC60, S80 and XC70 models over potentially improperly attached front seat wiring harnesses.
Volvo Cars North America and its parent company Volvo Car Corporation (owned by Chinese manufacturer Zhejiang Geely Holding Group Co.), agreed to make internal changes to its recall decision-making process to ensure timely reporting in the future.
This story originally appeared at The Car Connection
Motor City As ‘Z World’? Entrepreneur Floats Idea Of 200-Acre Zombie Theme Park
Word of warning: This story is not a joke, although some may find it laughable. Anyone who’s familiar with the long-time economic slide affecting Detroit knows that the Motor City has steadily lost a lot more than jobs in the past 50-some years. It’s also lost 60 percent of its population. Vast parcels of land sit vacant, strewn with garbage and decimated hulks of factories, decaying houses, and overgrown parks.
It’s the perfect setting for a zombie invasion.
In fact, as reported in the Daily Mail (via CBS Detroit) entrepreneur Mark Siwak has come up with the ghoulish idea to create a 200-acre zombie theme park on one of those appropriately sized tracts of land and call it ‘Z World Detroit.’ This is one of the more unique proposals before Mayor Dave Bing’s Detroit Works Project.
The idea, claims Siwak, involves customers paying money to take part in a 24-hour live-action terror experience, complete with the opportunity to be scared witless and have their brains “consumed” by flesh-eating zombies (who are actually professional actors).
Here’s the synopsis of this live-action theater: Participants arrive and park in the designated parking lot. They undergo a briefing in the staging area adjacent the Z headquarters where they learn the rules and the scenario for their overnight adventure. In brief, they search for shelter among the destroyed buildings, try to gather supplies, and attempt to survive the night without being eaten by the roving pack of zombies unleashed to find them.
Hide among the ruins of a vacant church or hunker down in one of the abandoned factories and warehouses? Scavenge what you can from the debris and detritus left behind? What’s not to like about this unique theme park?
Game over if you’re attacked and devoured? Nope, you continue on as one of the “undead.” Think what a great story you’ll have to tell your friends.
No word yet about whether there’ll be any vehicles in this carved-out and patrolled by security section of the Motor City. But if there are any, they’re likely not going to last long (fuel being a non-existent commodity in long-abandoned areas). Maybe a ‘Z World Detroit’ promotional tie-in could be the 2013 Hyundai Elantra Walking Dead model?
Scroll down and check out the video for more information on ‘Z World Detroit.” Or go to the website to learn more. Think this idea is totally brainless or does it have the chance to see the light of day (along with the “survivors” of the overnight experience)? Let us know in the comments section below.
One more point: There is a precedent here. ‘Z World’ will supposedly follow in the footsteps of the Atlanta Zombie Apocalypse. Guess if it’s good enough for Atlanta, why not let visitors to the Motor City get in on the action?
This story originally appeared at The Car Connection
2012 Audi Q5 Recall Alert
Audi is recalling certain 2012 model year Q5 compact luxury SUVs because of concerns that the sunroof glass panels could break in extreme temperature conditions.
A notice on the National Highway Traffic Safety Administration (NHTSA) site lists the number of potentially affected vehicles at 13,172. Documentation from Volkswagen (PDF) indicates the build dates involved in the safety recall range from June 21, 2011 through December 9, 2011.
The problem
Audi said that due to a production process issue at the sunroof glass supplier, some 2012 Audi Q5 SUVs may have been manufactured with a front sunroof glass panel that is susceptible to breakage during very cold weather/temperatures.
The NHTSA bulletin warns that because the sunroof glass could unexpectedly break while the vehicle is in use, falling glass could not only distract the driver, but also cut and injure the driver and passengers. Either scenario increases the risk of a vehicle crash.
Parent company Volkswagen learned about the problem as a result of dealer reports during the 2011/2012 winter season of a small number of vehicles with broken front glass sunroof panels. The automaker conducted an analysis in March and additional testing in April through June that confirmed glass breakage in a very small number of sunroof glass panels at extreme cold temperatures (down to -40 degrees F).
What Volkswagen will do
Audi will notify owners of affected 2012 Q5 SUVs and dealers will replace the front sunroof glass panel at no charge. The safety recall campaign is expected to begin on or about August 7, 2012.
In the meantime, owners of 2012 Audi Q5 SUVs with any questions or concerns may contact the automaker at 1-800-822-8987. Reference the safety recall campaign number 60B2/L3.
Alternatively, owners of vehicles involved in the campaign may also contact NHTSA’s Vehicle Safety Hotline at 1-888-327-4236 or go to http://www.safercar.gov. Reference the NHTSA campaign ID No. 12V299000.
This story originally appeared at The Car Connection
What Are Five Things Your Car Has To Have To Be Pet-Friendly?
If you own one of the approximately 78.2 million dogs in more than 46 million American households, or one of the 86.4 million cats, you know how to take care of your pet when it’s in your home. But when it comes to taking Fido or Fluffy out in the family car, do you know whether your vehicle is actually accommodating to your pet?
Here are five things every pet owner’s car should have in order to be pet-friendly
1. Low bumper height - Making it as easy as possible for pets to jump up and climb in the back of vehicles is an absolute essential – unless you want to go to the expense of buying a ramp or endlessly pick them up. Most pets don’t need much encouragement. Dogs, especially, love to jump up and go when it’s time for a ride. Low bumper height is a good idea for the driver and passenger, too, since it makes access easier for your pet’s crate and other items.
2. Flat load floor – Speaking of the crate, as well as cat pet carriers, a flat load floor has to be right up there near the top of the list of must-have features. This means fold-down seats that fold completely flat. Depending on the size of your pet, you might need to transport a large crate. The cargo area of the vehicle has to be able to accommodate the height, width and depth of the crate. Typically, SUVs and crossovers offer the most cargo-area room.
3. Passive lock system – Fumbling with your keys to unlock or lock car doors can lead to your pet jumping up and scratching the vehicle. Passive lock systems automatically unlock the doors as you approach, while a quick touch of the keyfob opens the tailgate or trunk. If available, opt for the hands-free, power liftgate option on some SUVs and crossovers—like the 2013 Ford Escape-- to make traveling with your pet a lot easier.
4. Tie-down hooks, loops for leashes, storage space – Dog harnesses and crates have to be properly secured. That’s where tie-down hooks and leach loops come in handy. You’ll also need somewhere to stow your pet’s food and portable water for the trip, along with other necessities, such as pet first-aid kit, favorite toys, and so on.
5. Side curtain airbags – You can feel more confident that your pet (and your passengers) will be protected in the event of a crash if your vehicle is equipped with side curtain airbags. Vehicles such as the 2013 Chevrolet Traverse and Equinox have side curtain airbags that implode for a longer duration than airbags in passenger cars, thus providing even more protection for passengers and pups.
Other great-to-have safety technology features in a pet-friendly car include a rearview camera and reverse sensing system, and lane departure warning and forward collision mitigation systems (to alert you if you’re distracted by your pet and veering out of your intended lane or close to colliding with another vehicle).
This story originally appeared at The Car Connection
Toyota Adds 154,000 2010 Lexus RXs To 2009 Unintended Acceleration Recall
So you thought Toyota had finally managed to move beyond the unintended acceleration fiasco of 2009-2010? Turns out that's not the case--the company just added another 154,000 vehicles to the list: the 2010 Lexus RX 350 and RX 450h.The problem, however, isn't with anything electronic or mechanical. Instead, it's the unsecured or incompatible floor mat issue, which can entrap the accelerator pedal and cause the vehicle to accelerate. If it seems strange to you that something so simple could be such a big problem, you're not alone.
Owners of affected vehicles will receive notification from Toyota early in August. A fix for the problem will be carried out at Lexus dealers at "no cost to the customers." No cost, that is, aside from the lost time at the dealership.
While the floor mat issue is a real one, and could surprise drivers, creating dangerous situations, the reality is that most vehicles even without brake override systems to electronically slow the engine will still slow significantly with the brakes applied--even with a stuck or entrapped accelerator.For a complete history of Toyota's unintended acceleration issues, including NHTSA reports on the causes (or non-causes) and Toyota's multi-layered response, visit our unintended acceleration archive.
For owners of an affected Lexus RX, more information can be found at the Lexus recall site, or by calling the Lexus Customer Satisfaction line at 1-800-255-3987.
This story originally appeared at The Car Connection
2013 Toyota Avalon Gets More Green, Adds Hybrid Model
In recent years, Toyota's said it will build a hybrid version of every one of its vehicles by 2020.
Count one more down: the Avalon sedan is going hybrid for the 2013 model year.
The big four-door, a relative of the best-selling Camry sedan, goes on sale in November of this year. When it does, it will inherit a version of the Hybrid Synergy Drive system found in the latest Camry Hybrid, where it helps that sedan achieve EPA ratings of 43/39 mpg.
The drivetrain teams a 2.5-liter four-cylinder running a lean Atkinson cycle, with nickel-metal hydride batteries and two motors tucked into the transaxle, with gearing handled by a continuously variable transmission.
In the Avalon, the net is 200 horsepower, and three driving modes are offered: EV, Eco, and Sport. EV mode allows drivers to run the Avalon on battery power alone up to 25 mph, while Eco mode cuts down on throttle response and HVAC output. Sport mode adapts the Avalon Hybrid's throttle and transmission for quicker response.
At its best, Toyota says the Avalon Hybrid will hit 60 mph in 8.2 seconds; at its other "best," it predicts a 680-mile driving range on a single tank of gasoline, and estimated EPA ratings of 40/39 mpg and 40 mpg combined.
As for the more powerful Avalon V-6, it continues with its 3.5-liter V-6 with 268 horsepower and 248 pound-feet of torque. The six-speed automatic carries over, though it now has a sport-shift mode and throttle blipping for smoother gear changes. On Avalon Touring and Limited models, the automatic also gets paddle controls for shifting, an indication of where Toyota wants the newly stylish sedan to go.
Toyota estimates the V-6 Avalon's 0-60 mph time at 7 seconds or less, and pegs its fuel economy at 21/31 mpg, or 25 mpg combined. It too offers three driving modes--here, Eco, Normal, and Sport modes for steering and throttle feel.
On another front, Toyota's made a concerted effort to keep weight down in the new Avalon. The new Avalon Hybrid weighs less than 3600 pounds, while the standard car is under 3500 pounds in base trim. The 2012 model begins above 3600 pounds. Toyota credits better construction, but also trimmed proportions: compared to the 2012 model, the new Avalon's down marginally in overall length, width, and height, though the wheelbase is identical to the outgoing model. However, its trunk has grown by 1.6 cubic feet, to 16.0 cubic feet total.
New features for the Avalon include Entune, the mobile-app system that ports functionality from phones to the Avalon's infotainment system--streaming Pandora music into the stereo, for example. A USB port, satellite radio, and ambient lighting are featured, as are an optional navigation system, heated and ventilated front seats, heated rear seats, and a three-zone climate control system.
Finally, the Avalon's safety package moves into a higher plane, with ten standard airbags and a rearview camera now standard. Blind-spot monitors are an option.
Now in its fourth generation, the Avalon's facing several stylish new vehicles in its class, all with exceptional features--eAssist and MyFord Touch among them. The suave new look is one tack it's taking to shift the nameplate into a more youthful direction; the new Hybrid edition is another.
We'll have more on the Avalon later this fall. For more, see our preview of the 2013 Toyota Avalon.This story originally appeared at The Car Connection
Want To Steal Gas In Public? You Might Get Away With It
Long before gas prices climbed into $3 territory, stealing the stuff has been going on. With older cars, the process was fairly straightforward: drop one end of a hose into the “donor” gas tank, siphon until the unmistakable taste of gasoline hits the tongue, drop the other end into the empty tank, then find something for mouth rinsing during the sketchy refueling. Minus some spitting and gagging, it was a pretty quiet operation--we’re told--and morality aside, an easy process.It’s not so easy with modern cars. Tank filler necks are designed differently for environmental reasons, which discourages old-school siphoning. Apparently, it’s not impossible, it now takes more tools. And, as Recombu.com recently learned, it still takes a lot of nerve but not necessarily the cover of night.
When one of their editor’s gas tanks was relieved of its contents in London recently, their disgust fueled an experiment: just how easy is it to steal fuel in broad daylight?
As you can see from the video, you might not be interrupted in your efforts. Demonstrated in two London locations, the man doesn’t overtly draw attention to himself, though he’s not trying to be very stealth about it, either. A few passers-by seem to do double-takes, but nobody stops to question him. Even a restaurant worker on a smoke break seems as oblivious to lighting up near flowing fuel as he is to the fact that fuel wouldn’t ordinarily be flowing that way.
What’s your take? Do you think people are too self-absorbed to notice even an unusual activity like this? Are we too desensitized to care about “small” crimes? Could witnesses have thought the man to be legit? Check out the video and give us your thoughts.
This story originally appeared at The Car Connection
