Car Buying auto news

Report: Auto sales credited with half of U.S. economic growth

The auto industry has long been a cyclical business, and though this last trough was a deep one, the coming boom has economists excited. According to Bloomberg, the auto industry's comeback contributed fully half of the 2.2 percent national economic growth in the first quarter of this year. Auto sales are on target to top 14 million vehicles this year, the best pace in four years.

Production is up at all three domestic carmakers, which has a ripple effect throughout the economy. Bloomberg cites Chad Moutray, chief economist of the National Association of Manufacturers, who estimates that every dollar spent on a new vehicle leads to an addition $2.02 in economic activity. The industry's share of gross domestic product for the quarter was 2.8 percent, which is nearly as high as it was in 2007, before the economic crisis that devastated the industry, according to the report.

Yet despite the rise in fortunes for carmakers, stock prices have yet to follow suit. A key automotive index is up just 1.5 percent so far this year, but is down 31 percent in the past 12 months, according to the report. The U.S. Treasury Department recently indicated that because of lagging stock prices, it would not be divesting its share of General Motors stock anytime soon.

Digging Deeper: April 2012 sales figures

April showers may result in May's flowers, but it didn't result in great car sales numbers.

Overall, sales in April only climbed 2.3 percent compared to April 2011, leaving some carmakers and observers scratching their head. Of course, the raw numbers, as provided by AutoData Corp., also note that there were three fewer selling days due to that occasional month with five Sundays in it. Imagine the pain people paid on the 1st and 15th had to endure?

So the numbers may not be as bad as a first glance might suggest, and in my opinion, the slow pace of growth is better for automakers. Rather than big ups and downs that leave dealerships empty of popular vehicles and overstocked with others, a steady mild increase means it's easier to match production to demand.

But there are plenty of outliers in the pages of spreadsheets when you look inside the numbers. So here are the 10 things I think I know about the auto industry based on April's sales.

Continue reading Digging Deeper: April 2012 sales figures

Report: 2012 U.S. auto sales on pace to be best in five years

Bloomberg reports that if U.S. auto sales continue at their current pace, 2012 will mark the best year for the industry since 2007. The news comes after word that both Ford and Chrysler have slimmed or entirely eliminated the traditional summer shutdown at their manufacturing facilities to keep pace with demand.

All told, sales may reach 14.3 million cars and light trucks, according to analysts, thanks to factors like a gradually improving economy and easier credit. If the pace continues, 2012 will mark the third year of 10-percent gains, which marks only the fourth time that's happened since the Great Depression.

Car sales stalled in 2008, and 2009 saw manufacturers move just 10.4 million units. As Bloomberg points out, that's the lowest number since 1982, but buyers took home 11.6 million vehicles in 2010 and 12.8 million in 2011. The industry saw a 10.3-percent increase through the first four months of this year. As a result, General Motors, Ford and Toyota have adjusted their yearly sales forecasts accordingly.

Report: Audi narrowly beats BMW in April to take premium sales crown

The global luxury war has three fierce combatants, all German, all producers of amazing vehicles, and all serious about besting their two other rivals. While BMW has been winning as of late, the latest battle goes to Audi.

The Volkswagen luxury brand sold 125,200 vehicles in April, topping BMW's 121,476, according to Reuters. It was the first time Audi outsold BMW since January 2011. BMW still holds the year-to-date lead with 478,030 units sold, compared to 471,300 for April's champ, according to the report. BMW sales are up 10.1 percent for the year, while Audi's have risen by 11.7 percent.

Mercedes-Benz sits over 50,000 units behind at 418,246, according to Automotive News. Sales of Mercedes vehicles are up 9.7 percent on the year.

Audi's ascendency can be traced to China, where sales rose 44 percent in April, according to AN. European sales, by comparison, were only up 4.9 percent, with U.S. sales rising by 15 percent.

Report: Toyota Prius Plug-In third fastest-selling car in America

The good people at Cars.com have slogged their way through sales data from April and found something interesting. The Toyota Prius Plug-In managed to walk away as the third quickest-selling car in the U.S., spending just five days on dealer lots. That figure was good enough to land it behind the BMW X3 and X5, both of which take four days to find a new homes. The plug-in hybrid has only been on sale for two months, and took the honor of being the second-quickest selling vehicle in March, according to Cars.com.

The report also took the time to look at the slowest-selling models around. Surprisingly, the Porsche Boxster sits at the top of that list, taking a whopping 250 days to turn. The 2012 BMW 6 Series isn't doing much better. The 650i Convertible took fourth place with an average of 128 days on the lot while the 640i Coupe rounds out the top 10 with 111 days. Perhaps even more shocking is the news that there are four vehicles selling slower than the Nissan Murano Cross Cabriolet at 120 days on dealer lots. Head over to Cars.com for the full report.

Report: Automakers tussle over owners of 'orphan' makes

When General Motors put down several of its brands in recent years, it also let loose thousands of brand-loyal customers who will eventually need another car.

R.L. Polk Associates estimates there are more than 18 million cars from 16 discontinued makes on the road today. Those "orphan owners" have sales-hungry competitors seeing dollar signs. GM is offering Saturn owners $1,000 cash toward a Chevy Cruze, Caddillac CTS or a GMC Acadia. Ford is giving its Mercury lease customers a chance to get out of their contracts with no early-termination penalty and offering to waive six remaining payments if they drive off in a Ford or Lincoln.

Edmunds.com research shows the efforts are paying off somewhat for GM, with 39 percent of Pontiac owners, 37 percent of Hummer owners and 31 percent of Saturn owners taking delivery of another GM-branded vehicle. But that leaves as much as 69 percent of owners going elsewhere. Ford, Honda and Toyota seem to be attracting many former GM owners.

As Forbes points out, if you're driving an orphaned nameplate, you just might be able to use that to your advantage when shopping for a new vehicle.

Official: 2013 Hyundai Sonata gets $1,100 price increase, drops manual option

Bid farewell to the Hyundai Sonata equipped with a manual transmission. The Korean manufacturer has discontinued the third-pedal in its midsize sedan for 2013, though buyers can look forward to more standard equipment on next year's model. With such a small take rate, Hyundai saw no reason to continue offering the six-speed manual in the base GLS model. That means the six-speed automatic transmission is now standard across the line, though the four-door will see an uptick in price as a result. The 2013 Sonata now starts at $21,670, including a $775 destination fee.

Consumers can expect to find the same direct-injection 2.4-liter four-cylinder under the hood as well as an optional turbocharged direct-injection 2.0-liter four. Heated seats are now standard in every trim with the exception of the entry GLS model. The Limited trim bows at $26,620 with the 2.4-liter, which marks a $600 price drop compared to 2012. The impressive, standard panoramic sunroof is now optional, however. If you want the extra glass, you'll now have to step up to a $2,900 Limited Premium Package. Scroll down for the full press blast.

Continue reading 2013 Hyundai Sonata gets $1,100 price increase, drops manual option

Official: 2013 Cadillac XTS to come standard with iPad

If you read the owner's manual of your car you'd begin to realize how much of your own vehicle you didn't know about. If it's a car made within the past few years, then the owner's manual covering the dirty bits will be joined by an even thicker manual that covers just the infotainment system. Cadillac, however, has a better way for buyers to learn the CUE-powered mysteries of the $44,995 XTS: give owners an iPad with the car, loaded with tutorials on how to get the most out of the Cadillac User Experience system.

Yes, when the Hyundai Equus was introduced it came with an iPad installed with a multimedia version of its owner's manual. Based on Wired's discussion with Cadillac, however, this is much wider implementation, with each Cadillac dealer required to have two "certified technology experts" on duty, plus a CUE call center for owners, an online media team looks for CUE questions to answer, and a mobile CUE specialist who makes house calls. The point seems to be that this isn't about getting an iPad with your car, it's about understanding ever tech thing your car can do. If you still don't know how to access the full power of your XTS, it will only be because you don't want to.

Scroll down for General Motors' official release.

Report: City of Detroit paying $608 per month to lease 2004 Dodge Intrepid [w/video]

What can you even say to defend a financial decision like this one? According to a report by Detroit's WXYZ television news team, the City of Detroit has been leasing a 2004 Dodge Intrepid since September 2003, over six years after the original two-year-lease expired. Since the City did not return the car, it has continued to make the $608 per month lease payments, even as it racked up miles well beyond the 40,000 in the original agreement, for which it now must pay 15 cents per mile. According to the report, the City has spent over $65,000 for the car, which it doesn't even own.

But that's not all. WXYZ says that Detroit has 110 of these expired lease agreements on 2004 through 2007 models, and all of the cars are still on the road, wasting money with every tick of the odometer. And remember, the City still has to turn in all 110 cars, and pay for excess wear and tear. An estimate of the city's losses incurred by this leasing scheme is well over $4 million, according to the report. The cars are all being used by the Detroit Police Department, and though they're not quite full-zoot police cruisers like the 2002 Intrepid pictured above, they see action for undercover work. That means it's not just the taxpayers who are getting a bad deal here, but the cops themselves, as we're pretty sure none of them are particularly happy to be out risking their lives in an eight-year-old Dodge.

If we can attempt to find the faintest silver lining to this epic thunderstorm of mismanagement, it would be that perhaps in the publicity sure to follow, a few of Detroit's residents might better understand why and how leasing can cost more than financing a new car purchase. And at least the City of Detroit has been using these cars, rather than leaving them in a parking structure to sit and rot. Scroll down for a video report from WXYZ.

Continue reading City of Detroit paying $608 per month to lease 2004 Dodge Intrepid [w/video]

Report: GM's next-gen pickup plans force dealers into one of two camps

Most General Motors dealers make their living off selling pickup trucks. (That's why when it came time to trim the brands and reorganize under bankruptcy, GMC survived and Pontiac didn't - because Buick dealers needed to have a truck to sell, not a full-size muscle sedan from Australia.) That makes this year a tricky one for dealers, according to Automotive News, as they need to have enough Chevrolet Silverado or GMC Sierra models in stock to get them to the 2013 model year.

What makes this quandary different from most years is that GM is readying all-new pickups, meaning that it will be shutting down production for long stretches to retool. The full-size Chevrolet and GMC trucks date to 2006, making them the oldest in the industry that don't wear a Nissan Titan badge on their tailgate. Dealers, of course, don't want to be caught with many 2012 trucks - vehicles that are already difficult enough to sell - but they don't want inventories to run completely dry and risk turning away customers.

With a combined 29 weeks of downtime scheduled for three truck plans, according to the report, some dealers are stockpiling pickups to avoid running out if the truck production pipeline dries up before the 2013s start shipping. Other dealers are taking the opposite strategy, turning down 2012s and waiting for next year's models.

Given all that has happened to GM in recent years, we imagine that most dealers know altogether too well that you're damned if you do, and damned if you don't.