A little help? Recent college grad goes looking for his first new car

A little help? Recent college grad goes looking for his first new car
steven cole smith

Pedro Falci of Coral Gables recently graduated from college, and soon he'll be starting a new job in Los Angeles. Which – like some of our larger cities in Florida – isn't known for its stellar public transportation system.

So Falci needs a car. "I didn't need a car in college," he says, "but I'm starting this new job, and I need a car now. This is my first time dealing with car dealers, and I'd be thankful for some advice."

No problem. And while Falci is interested in a particular new car – a 2011 Chevrolet Cruze LS – the suggestions apply to most every potential purchase.

He has some specific questions about the car-buying experience, so let's get to them:


What would be the best time of the year, and of the month, to buy a new car?

You'll hear and read plenty of advice that suggests the end of the month is the best time for multiple reasons, including the fact that dealers are hustling to make their quotas. I've seldom found that makes much of a difference. I believe any good, slow day, when there isn't much going on inside the store, the sales staff and the F&I (finance and insurance) managers tend to work a little harder to make a deal happen.

Is it true that when the 2012 model comes out prices of the 2011 model drop dramatically?

Not always. The Cruze you are considering was all-new for the 2011 model year, and since very few changes ae expected for the 2012 Cruze, I'd wouldn't look for big discounts. The Cruze replaced the Cobalt: When a car is getting replaced, or undergoing a major redesign, the previous' year's model usually is discounted considerably. There were, for example, very good deals on the 2010 Cobalt.

Why do prices vary so much in Florida from city to city, county to county?

Dealers pay the same price for new vehicles, whether the store is big or small. Differences are usually due to overhead, the value of the real estate the dealership is located on, and how badly the dealership needs to sell cars. I've gotten great deals at tiny country dealerships, and at huge big-city dealers. Sales tax can vary from county to county in Florida, but the differences are small.

Why do prices vary so much on different models of the Chevrolet Cruze?

The Cruze LS starts at $17,275, and the top-of-the-line Cruze LTZ can cost as much as $23,670. Manufacturers and dealers make a higher percentage of profit off "loaded" vehicles that have a lot of features, so they aren't always the best buy. Even the base Cruse LS has air conditioning, a stereo with satellite radio, stability control and all the other safety equipment you'd get on a pricier model. (And you do need air conditioning in Florida – a car without air takes a huge hit in resale value, eliminating any original savings.) Do you need a navigation system, or leather interior, or flashier tires and wheels? If you do, fine, but expect to pay for them on any new vehicle.

Is everything negotiable?

Tax, title and license aren't. In Florida, most dealers charge a "dealer fee" between $400 and $1,000, which is set by the dealer. They don't have to charge it, but if they do, they must charge it to everyone. Technically, then, it isn't negotiable, but when I deal, I expect them to either discount the car enough, or add enough to my trade-in, to where I'm comfortable with the numbers. Any add-on stickers for extra dealer-installed features, or "market adjustments," is negotiable. Be sure to check for rebates or financing deals on the manufacturer's web site, which usually asks for a zip code, because there may sometimes be regional rebates that apply only to Florida or surrounding states. Chevy, for instance, offers more than $400 for a "college discount" to current or just-graduated students.

A final word of advice: Shop around until you are satisfied with the deal. I've bought from the very first dealer I've visited, and I've bought after visiting a dozen. I always have a price in mind (which I typically do not share with the dealer), and if I can find it, I'm buying. And if I can't, I won't – or will reconsider whether the price I have in mind is reasonable.

Upcoming vehicle technology and trends just around the corner...

Future Car Trends

Upcoming vehicle technology and trends just around the corner.

In our lifetime we will witness the age of 100 mile-per gallon cars, lifetime headlights and taillights, streaming entertainment and information content, and cars that drive themselves. Actually, all this will be here a lot sooner than you think -- within the next few years. Here's the stuff of automotive dreams, already on queue for production.

Engines

Diesels are aiming to be the new hybrids. The problem is, diesel's used to be dirty engines and have had a hard time making any progress in the U.S. market. But new emissions technology solves that, giving these oil burners a clean bill of health in all 50 states. The high cost of diesels is also coming down to more affordable levels. Look for these cleaner, more efficient diesel engines in the Jeep Grand Cherokee, Volkswagen Jetta TDI;Mercedes' E320, ML320 and GL320 BLUETEC models, Chevy Silverado, GMC Sierra 2500/3500 HD, Dodge Ram 2500/3500 and the Ford F-250/F-350/F-450. Also on the horizon is a diesel powered Honda Accord, set to debut in 2009, which is apparently capable of 52 mpg.

Hybrids are hot now (who's going to argue with 50 MPG?), but they'll be getting hotter as prices in this segment also come down. J.D. Power predicts 345,000 hybrids will be sold in '07 -- a 35 percent increase over '06. Honda and Hyundai are gunning for the big mileage (and sales) numbers by dropping their smallest engine into their most lightweight chassis (a Honda Fit-sized car and Hyundai Accent respectively). Also look for large models, like the Chevrolet Malibu Hybrid and Saturn's Vue and Aura Green Line models to deliver modest fuel savings at practical prices and stylish packaging.

More exciting than both diesels and hybrids is a technology that has gone from theory to aluminum in the last couple of years because of advances in computer technology. HCCI, or homogeneous charge compression ignition (also see more on HCCI at Autoblog), is a gas engine that acts like a diesel motor. Like a diesel engine, gas inside the cylinder is ignited through compression and the heat generated by the engine itself. No spark plugs. The result? Diesel economy and efficiency at roughly half the weight and materials cost of a conventional gas engine with no need to treat the exhaust. GM demonstrated two vehicles fitted with HCCI engines in August. Mercedes wowed crowds even more recently at the Frankfurt auto show with their DiesOtto implementation that merges HCCI technology with a mild hybrid module to produce 238 hp, 295 lb.-ft. of torque and 39 mpg in a vehicle the size of an S-Class sedan. Mercedes squeezed that performance from a 1.8-liter four-cylinder engine.

All of these technologies are stop-gap solutions until the most efficient answer arrives on our shores -- hydrogen. How soon? FreedomCAR, a partnership of the U.S. Department of Energy and the United States Council for Automotive Research, projects that hydrogen technology will be broadly available to the masses by 2015. On the fuel cell side, Honda has indicated that their new FCX Concept will slide alongside the existing previous-generation FCX already on the road by 2008. GM's Project Driveaway is putting at least 100 fuel-cell powered vehicles in the hands of lucky testers this year, but the hydrogen-powered Equinoxes are not available for sale. As for hydrogen combustion engines, small numbers are popping up as manufacturers like BMW (see the BMW Hydrogen 7 at Autoblog) keep real-world testing and refining concepts, but there are no production plans as of yet. Obviously, both solutions face infrastructure challenges for refueling that are still being worked out.

Until the heady days of hydrogen power are realized, you still have radical alternatives to diesel and conventional hybrids if you want to drive green.

Internet reports abound of home-customized Priuses topping the 100 mpg mark with the advantage of enhanced battery packs and modified software keeping the cars running on electric power far longer than their stock counterparts. Plug-in hybrids hold the potential to dwarf the fuel economy potential of diesels and hybrids, but cheeky price points, mostly from the cost of hefty battery packs, might be what are holding off production announcements from manufacturers. Not even a date can be pegged to the darling of poster boards, Chevrolet's Volt. While plug-ins are being researched and developed by major manufacturers like Toyota, Ford and GM, the impatient can check out a handful of small companies which offer plug-in conversion kits for hybrids, complete with instructions.

Or the impatient can skip the gas motor all together. The smooth exterior lines and booked solid pre-orders of the Tesla proved that the electric car is far from dead ... it's just pretty expensive. Miles Automotive Group aims to change that. Their coming XS500, an electric midsize sedan, will arrive in the states in 2008 with a top speed of 80 mpg and a range of 120 miles. The price: $30,000. The XS500 could be joined by a $45,000 electric sport-utility truck and SUV from Phoenix Motorcars sometime in 2009. The SUV and SUT would start with a 130 mile range, a 0-60 time of 10 seconds and a top speed of 95 mph. Additional models coming to U.S. pavement (or already there) include Zap's intriguing Zap-X, Wrightspeed's blazingly fast Wrightspeed X1, and the very affordable NmG from Myers Motors.

Entertainment

A survey conducted by TRG, Telematics Research Group Inc., reveals that nearly 70% of announced upcoming 2008 vehicles for sale in the U.S. will have a Bluetooth communications system either as optional or standard equipment. Navigation systems will be available in 80% of coming 2008 vehicles, according to the same survey. We're at the point where digital entertainment storage systems like Microsoft/Ford's SYNC (see video of SYNC at Autoblog) and Chrysler's MyGiG (see MyGig at Autoblog) are about to go from super cool to everyday accessories like an iPod thanks to broad introductions that span the luxury segment to value-driven cars like the Ford Focus. What's the next frontier?

Streaming media is one. Supplier interviews conducted by the Center For Automotive Research (CAR) point to 2010 as the year when customized or on-demand content will be streamed to vehicles. That customized content could span the gamut from television programming and movies to important local updates, along with new, far more robust real-time traffic data through two-way communication. Couple this trend with the fact that vehicle-based digital storage (handy for buffering downloads) will increase and drop in price, and you have a done deal. Almost: CAR notes that the challenge isn't displaying the content, but finding the bandwidth and compression necessary to deliver the programming.

A closer star on the horizon of coming entertainment is HD radio, which is popping up in cars by BMW and Ford this year, and will be added to, at least, the Jaguar XJ and Hyundai's Genesis for 2008. Using technology licensed from a company called iBiquity Digital, HD radio promises to deliver AM radio in FM-quality sound and FM channels in CD-quality sound, along with accompanying data that will begin with artist, song and station information. Digital radio gives a broader frequency response to channels, transforms AM radio from mono to stereo, and allows for better stereo separation. Check out iBiquity Digital to hear the difference. Bob Struble, president and CEO of iBiquity sees next-generation HD radios offering users the chance to buy songs and advertised products or even bring TiVo-like qualities to the radio experience. iBiquity estimates that by 2008 more than 90% of the U.S. population will be reached by HD radio broadcasters.

Safety

The Lexus LS 460 is the first vehicle for sale in the U.S. that can park itself. Audi's dynamic steering system adjusts the driver's steering inputs when the vehicle senses that the handling limits have been reached, even making slight corrective inputs on its own when things are getting out of hand. The Lane Departure Prevention System on Infiniti's new EX35 manipulates the brakes at individual wheels to help steer the ute back into its lane when it senses an unintentional drift. Welcome to the brave new world of Active Safety 2.0, where your vehicle humbly offers assistance to keep you out of trouble, in addition to trying to save you when you're in it.

In 2005 General Motors announced that the 2008 Opel Vectra would be the first car to boast Traffic Assist, a system that allows the car to drive itself at speeds up to 60 mph -- even in heavy traffic. The system sees road signs, bends and other vehicles in the road to adjust the car’s trajectory and speed according to everything going on around it. As advanced and capable as the system may be, composed of processors, lasers and a video camera, it won’t be offered for sale in the United States, but in Germany. Why? Two reasons: one, we live in the most litigious nation in the world. Two, we Americans, as a mass of consumers, aren't comfortable paying additional price premiums for the safety technology we crave -- we feel it should be included in the vehicle's price.

One coming revolution we'll definitely see is brake-by-wire technology. A brake-by-wire system replaces the hydraulic hardware of conventional brakes with faster-acting and more environmentally friendly electric motors and relays that should be more reliable and take up less space. We're already seeing conventional hydraulic systems get smarter with radar-based augmentations like Mercedes' Brake Assist Plus and Infiniti's Preview Braking by pressurizing the brake system earlier, allowing for a faster response and shorter braking distance when the driver decides to hit the pedal. A fully electronic braking system should further improve on stopping times and distances. Automotive News predicts brake-by-wire systems will surface in 2011.

Whether or not you purchase a vehicle with any, or all, of these trends one thing is certain ... automotive dreams do come true.

9 Things To Know Before Buying an Electric Car

9 Things To Know Before Buying an Electric Car

1. There Are Two Kinds of Electric Cars


The buzz in 2011 is about all the new electric cars on the road, led by the Chevrolet Volt and the Nissan Leaf. But because these are new products to the U.S. market, TheDailyGreen.com asked Nick Chambers, who has written about next-generation automobiles for the New York Times, Popular Mechanics and others, to cut through the hype and offer some practical electric car buying tips. He came up with these nine things you should know about electric cars before making a purchase:


Turbocharger? What's that? In this new world of plug-ins there are really only two types: all-electric cars and plug-in hybrids. 

All-electric cars are solely powered by large batteries charged from the grid; when they run out of juice they can't move anymore. The Nissan Leaf (left) is an example of an all-electric car.

Plug-in hybrids have a shorter all-electric driving range using a smaller battery pack. After the battery pack is drained, they can either revert to being a normal fuel-fed hybrid, or they can use fuel to run a generator and recharge the batteries on the fly. The Chevy Volt (right) is an example of a plug-in hybrid.


2. There Are Lucrative Federal and State Incentives to Buy Them

Although the sticker prices for electric cars tend to be higher than similarly-sized and -equipped conventional cars, federal and state governments think they are worth subsidizing and have offered some seriously chunky incentives for you to buy one.

All U.S. taxpayers are eligible for a $7,500 federal tax credit -- but only if you have a one-year tax liability that exceeds that amount. If you don't have that much tax liability, don't fret, you can lease the car from the manufacturer and use the entire $7,500 to pay down the lease right off the bat. As a result, Nissan and Chevy -- the two electric vehicle manufacturers first out of the gate with mass-market offerings -- both have relatively affordable $350 per month lease deals. The federal tax credit will remain in effect for a given EV (electric vehicle) manufacturer until it sells more than 200,000 EVs.

In addition to the federal incentives, many states have sweetened the kitty with their own. For example California has a $5,000 credit, Oregon has a $1,500 one and the State of Washington waves its usual 6.5% sales tax charge. Some states also provide special parking and carpool lane privileges. Nissan's LEAF website has a handy tool to help you figure out what incentives are available where you live. 

3. There Are Three Ways to Charge Them

Although the engineers will tell you this is a complicated point of discussion, what it really boils down to is that electric car manufacturers in the U.S. can provide three "levels" of charging support for their vehicles.

Level 1 charging happens off of a standard three-prong household outlet. Every electric car comes with a cable that supports this type of charging, but it's slow -- only adding about 5 miles of driving range for every hour of charging.

Level 2 charging uses special wall- or pedestal-mounted equipment unique to electric cars. Even so, it is essentially like charging from a standard household dryer outlet. Level 2 charging is faster than Level 1, adding about 15-30 miles of driving range per hour of charging, depending on the vehicle.

DC fast charging uses industrially-rated, gas pump-sized stations to dump electrons into your car's battery like a firehose. Only some cars support this type of charging, and it's usually an option that costs extra. DC fast charging can add about 80 miles of driving range in a half hour of charging.

4. It's Easy To Install a Home Charging Station, But It Costs Extra (Don't Worry, There Are Incentives)

Although every electric car comes with support for Level 1 charging, most people will want to install their own Level 2 charging station at home so that they can fill up their car's battery overnight -- but it's by no means a free endeavor.

Level 2 home charging stations will cost between $1,500 and $2,500 to install, depending on the manufacturer and the equipment chosen. If you have special circumstances, such as a long wiring run, the costs can be considerably more. Sounds like a lot, no? The federal government, again, has a pocketful of cash it's ready to dole out, providing a tax credit of 30% of the cost of purchase and installation, up to $1,000. 

5. Public Charging Stations Are Coming, But The Rollout Will Be Slow and Sporadic

So you've got your spiffy new electric car, and you coughed up the dough for your own home charging station. If you're like 80% of Americans, that's likely good enough for most of your driving needs -- you'll get to the work and back, and have enough to run typical errands. But what about if you want the same freedom that a gas tank and a filling station ever few miles offers? That's where public charging comes in, providing you the ability to extend your electric car's all-electric range substantially. (The Wattstation, at right, is an example of a public Level 2 charger.)

There is currently a huge push from the EV Project -- a $250 million joint federal-private program -- to install nearly 15,000 public Level 2 charging stations in a handful of early deployment regions around the United States over the course of 2011. This includes areas of Oregon, California, Washington, Tennessee, Texas, Arizona and Washington, D.C. If you live in one of those regions you will have a relatively robust public charging infrastructure quickly. If you don't, you may have to wait a while unless your community is charging ahead without federal support.

6. All-Electric Cars Are for Daily Driving, Not Cross-Country Road Trips

If you buy a plug-in hybrid, you can ignore this because they are capable of taking long-distance trips. However, most of the initial crop of all-electric cars have a range of around 100 miles on a full charge. Some have up to 200 miles, but are quite a bit more expensive. If you have public charging where you live, or you return home and plug-in during the day, you can drive your EV more than 100 miles. Even so, you're not going to be taking them on long trips. Most people who buy an all-electric car will have a second car available for the occasional long trip.

7. You'll Spend Less On Maintenance, But... (Yes, There's a "But")

All-electric cars ditch the thousands of moving parts of a combustion engine and associated transmission for a handful of moving parts in an electric motor. They also have no emissions equipment. As a result you will have very few maintenance costs -- no more oil or transmission fluid changes or catastrophic mechanical repairs. And, although plug-in hybrids still have an engine and emissions equipment, they will need far less maintenance than a typical gasoline engine because they will operate as an electric car much of the time.

Even so, EVs have large, expensive batteries that may need to be replaced after 7-10 years. However, in this first crop of electric cars the manufacturers have provided long battery warranties. In the case of both the Nissan LEAF and the Chevy Volt, that warranty is 8 years or 100,000 miles. The average new car buyer owns the car for six years.) In 8 years the price of batteries will likely come down substantially.

8. All-Electric Cars May Not Have Tailpipe Emissions, But They Aren't Emissions Free

Sure, we've all heard the "zero emissions" claim, and some of us have seen it plastered on the side of a Nissan LEAF -- but it's not entirely true. About half of the U.S.'s electricity comes from coal-fired power plants, so many drivers are filling up on a dirty fossil fuel - it's just burned a few miles down the road, rather than under your hood. Depending on where you live, this ratio might be more or less -- and in places like California or Washington, a large proportion of that electricity comes from natural gas and renewable energy sources, like wind, solar or hydro power. 

Even if your electric car is powered by 50% coal there are several studies that conclusively show it will pollute less than the average diesel or gas car, such asthis one from the Electric Power Research Institute.

9. Electric Cars Are Really Cheap to Operate, But Expect Higher Utility Bills

Given the average cost of electricity in the United States of about 12 cents per kilowatt hour, you can drive an EV for around three to four cents per mile. At $3.20 per gallon, a 30 mpg gas car costs about eleven cents per mile to drive -- plus regular and unexpected maintenance that you likely won't have in an EV. If you drive your EV 50 miles every day, you can expect your electricity bill to increase by half. 

SPYCAM: 2011 CHRYSLER 300C

SPYCAM: 2011 CHRYSLER 300C

Chrysler's been on a mission to update its lineup at record speed since emerging from bankruptcy last year, and the Chrysler 300C is one of the group's key vehicles pegged for significant refreshing. Nearly ready for its release as a 2011 model, the new Chrysler 300C was recently spied by our photographers while undergoing promotional filming. Completely undisguised in public for the first time ever, we can finally see the finer details that distinguish new from old.

Changes, as expected, are mostly at the extreme ends of the 2011 300C, with the same basic midsection we've been seeing since the car's introduction early last decade. New Chryslerbadges kick the revisions off, the winged emblem being lengthened and streamlined compared to the current item. The appearance is decidedly upscale. New projector-beam headlights are reshaped and add LED lighting strips, while the front grille and bumper also get the once-over from Chrysler's styling department. The rectangular front air intakes are chrome-trimmed and house new circular foglights. Even the hood is revamped, with a bold middle bulge and a more rounded look.

Moving rearward, the taillight design is the most obvious change, being both reshaped and spruced-up with chrome accent trim running down the middle and around the perimeter. Chrome trim also bridges both taillights, running from their bases across the top of the restyled rear bumper and twin exhaust tips. The trunklid incorporates a new subtly curved lip adding an element of sport along with a restyled 300C badge.

While the 2011 Chrysler 300C's styling might finally be revealed to us, we can still only guess at the rest of the changes. We know the car will, like the vast majority of Chrysler's 2011 lineup, be getting the new Pentastar 3.6-liter V-6 engine, but which horsepower variant it receives is still up in the air. Additionally, we assume the 5.7-liter Hemi V-8 will remain optional, but what changes it may receive are yet to be determined. Will an SRT8 version make a return, possibly with the new Dodge Challenger's 470-horsepower, 392-cubic-inch Hemi V-8? Stay tuned to Motor Trend for the answers.

Best Car Deals for January 2011 - Incentives, Rebates, and Leases

Best Car Deals for January 2011 - Incentives, Rebates, and Leases

January is one of the best times to buy a new car. Most consumers are recovering from the holidays and fewer shoppers are visiting showrooms - which means car dealers are hungry for your business.


Although a new year has started, there are still leftover 2010 models available for sale. Car manufacturers are eager to get rid of these, so they're offering special sales and incentives to move them quickly.

Even with these great deals, you should only consider buying a leftover model if you intend to keep it for many years. Otherwise, the depreciation cost will outweigh your savings if you sell it within a few years.

As for 2011 models, inventory levels have been increasing which means dealers are more likely to offer better deals. Many 2011 models were first introduced in August or September. Now that a few months have passed since the initial excitement, sales have tapered off a bit while supply is increasing.

Some of the most common incentives being offered right now is 0% financing, which is widely available on Ford, Nissan, Toyota and Chevrolet models while Honda is offering rates of 0.9%.
There is still also a slew of great cash rebates, some as high as $5,000 on GM models. All in all, January 2011 is a fantastic month to purchase a new car, whether it's a leftover model, or a brand new 2011.