Rising New Car sales seen for 2012 (Source: NADA Economist Paul Taylor)

Top five reasons for upbeat forecast:

1. PENT-UP CONSUMER DEMAND
U.S. consumers have been primed to buy or lease since last year when the economy started to turn. Although generous dealer incentives and a return to more normal credit options fueled that excitement, dealers couldn’t get cars on their lots.  Now that production is reestablished, Taylor predicts manufacturers and dealers can better serve consumers, and all will win. 

2. RETURN TO STABILIZED CREDIT
In an effort to spur the U.S. economy, the Federal Reserve has kept interest rates low.  “As a result, affordable credit will be widely available with more automotive finance companies offering low-interest and interest-free loans for up to 60 months.”

3. AN INFLUX OF OPTIONS
General Motors, Ford, Chrysler and Volkswagen, heartened by the boost in consumer confidence, have been quick to launch new products that compete with those offered by other automakers. The excitement over styling, fuel efficiency and other options has driven more consumers to the showrooms.

4. THE WILD CARD – GASOLINE PRICES
In 2011, gasoline prices averaged $3.51, up 72 cents per gallon from 2010’s average. This year, analysts predict another boost in prices that could bring gasoline prices to $4.13 a gallon. 

5. HOME PRICES
Although real estate prices and values are still falling in some states, they appear to be stabilizing overall, which will continue to boost consumer confidence and translate into increased interest in new car shopping.  “Stabilizing home prices will support stronger car and light truck sales over this year,” Taylor said. 

Used Cars getting scarcer and more expensive (Source: Link)

Drivers in the market for a used car might need to keep saving for a while longer.  New data from the National Automobile Dealers Association shows the average price for a secondhand ride will go up by about 2% this year.  These higher prices come on top of a 3% increase in 2011. The biggest reason is that there are simply fewer used cars out there. The recession prompted automakers to slow production, which led to a sharp falloff in the number of used cars on the market in 2010. Economic uncertainty and a weak job market have motivated Americans to hang on to their vehicles for much longer.  Climbing prices at the pump are responsible for an even bigger jump in the prices of used, compact, fuel-efficient cars.

Get Ready for Higher Gasoline Prices by Spring (Source: By Ronald D. White, Los Angeles Times; January 14, 2012)

Get ready to pay $4 a gallon or more for gasoline this spring, with possible records close to $5 over the Memorial Day weekend, analysts said.  Look for a springtime U.S. average of $4.05 for a gallon of self-serve regular gasoline, said Tom Kloza, chief oil analyst for the Oil Price Information Service.  Gasoline prices are starting the year at the highest point ever because of high oil prices and brisk fuel exports.  GasBuddy.com is predicting record spring prices in several cities, including Los Angeles, San Francisco, Chicago, Dallas, Detroit, Miami, Minneapolis, New York, Philadelphia and Seattle. Los Angeles could see $4.70 a gallon. Chicago could see $4.95 a gallon.

 

 

New rock-solid ride for wheelchair-bound drivers (Source: By Dan Carney, msnbc.com contributor)

If you were hoping to find a way to make the Honda Element even uglier – then find your dreamcar on display at the Detroit auto show.  The MV-1 (it stands for “Mobility Vehicle – One”) from the Vehicle Production Group looks like a stretched Honda Element. Despite its boxy, ungainly proportions, the car is beautiful to its intended customers -- people in wheelchairs.  Until now, wheelchair-bound drivers had to convert a minivan to accept a necessary ramp or lift. That process chops through major structural parts, leaving the hacked van with diminished ride and handling as well as uncertain crash protection, according to VPG retail president Dave Schembri.  “Converted minivans just don’t work because they don’t have separate bodies and chassis and it kills them when they are cut in half by converters,” remarked Harley Holt, a consultant on government regulatory issues for carmakers.  With a price tag of $41,000, the MV-1 is much cheaper than a converted minivan, Schembri pointed out.  It even has optional natural gas power, which is not only cheaper to fuel, but also lets the MV-1 use carpool lanes in some states.

 


Automakers Introduce More Safety Features as ‘Standard’ Equipment (Source: By David Shepardson)

Automakers are ramping up safety improvements in the race to win new customers.  They have vowed to add new safety features as standard equipment in many models, including rear-facing cameras to boost visibility for drivers and systems to warn when the car is drifting from the lane.

  • Dodge Dart will have 10 air bags and will use reactive front-seat head restraints.
  • 2013 Ford Fusion will have a lane-departure system, a forward-collision avoidance system that uses radar to slow the vehicle when slower traffic is detected ahead, and sensors in the rear quarter-panels to detect traffic in a driver's blind spot. 
  • Toyota Prius will have nine air bags.

Honda will add forward-collision warning, lane-departure warning systems, and a larger expanded-view driver's mirror to all new models.

 


F-Series Pick Up ranks #2 in the Best-Selling Cars of All Time (Posted: January 26, 2012 at 6:33 am)

2. F-Series (1948 – )

  • Sales: 35 million
  • Parent: Ford (NYSE: F)
  • Price: $22,990 (most recent)
  • Type: Pickup
The F-Series has been America’s best-selling full-body pickup for more than 30 years. It certainly has faced significant competition over the years, especially from the Dodge Ram, Chevy Silverado and GM Sierra (all built by Chrysler and GM).  More recently, other competitors entered the market, such as Honda with its Ridgeline, Toyota with its Tundra, and Nissan with its Titan. But none has been able to drop the F-Series from its spot at the top of the pickup market. One of the strengths of the F-Series is that it comes in so many models that have a broad appeal across a wide set of customers. The base F-150 costs less than $23,000. Larger models are used in the construction and farm business and have engines with outputs of well over 300 horsepower and dual rear tires.