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It seems that they are having a few problems over in America in terms of failing car dealerships. Over the weekend there was a report released that projected that almost four thousand automotive dealerships could potentially go out of business before the end of the year and next year. This is due to a combination of a reduced number of cars being sold, a rise in maintenance costs and the overall state of the countries’ economy. Also, to add to the woes of such businesses, potential investors from the automotive industry are no longer willing to invest; especially in the used cars market as the environment is just far too unstable at present, which presents increased, challenges to earn money. This news comes after one of the biggest Chevrolet dealerships filed for bankruptcy due to their being much less of a demand for their cars and also due to the lack of finance and credit being available to buyers due to the downfall in the banking system. This came as much of a surprise for many as the company was previously operating at over 2.5 million dollars per year (when at its optimum level). The forecast also stated that the sale of lighter cars is expected to decrease to just less than fourteen million vehicles during next year. The result of this being that the dealerships will need to cease trade. It is expected that 2009 will be a poor year in terms of performance for the used car industry and that it will not be until the year 2010 or 2011 that sales will begin to increase again. However, it isn’t just Chevrolet that has been hit; Ford and Chrysler are also experiencing a decrease in demand for their cars. There has been as much as a twenty four percent decrease, which has contributed to the downfall of sales. The new cars section of trade has also been drastically hit given the cost for production is much greater than for used cars. It is expected that the automotive dealerships will be operating a tight ship up until the end of this year and throughout 2009 where it is expected car sales will decrease even further. The fact that finance is not as readily available to buyers as it once was, has had a massive effect on vehicle purchases and profits.

There is so much information online sometimes it is hard to know what to believe. I was reading something the other day that shown that car repairs were one of the most profitable and frequent types of car maintenance in the UK. I read a report that was outlining some of the problems faced within the car industry and how some vehicle repair shops put the lives of drivers in danger by conducting less than satisfactory repairs. It did outline however that most garages did indeed provide a safe and reliable solution but warned car owners to beware of the so called “bogus” repair companies. The knock on effect of such goings showed that car crash levels increased, which in turn increased the levels of car insurance premiums. Apparently used cars repairs ranked third amongst the top ten complaints by consumers in America. Now of course, the U.S is a much bigger country than the UK but nonetheless, these statistics make for a negative reading. I suppose that is one of the main problems with used cars in that they normally not covered by manufacturer warranty as most are only covered for up to three years. However, a nearly new car may well still be under manufacturer guaranteed, which is an added bonus when purchasing. The report continued to show that one of the main faults that would occur from a shabby repair job is that cars would break down on the motorway at high speeds or when driving around town when using low rev rates. Imagine breaking down on the motorway at a high speed? It doesn’t bare thinking about and so the report advised all motorists to look in detail at the garages credentials before entering their car in for repair. Having a garage recommended by someone or word of mouth is probably the most important and reliable source of a garages credentials. In fact this is probably the best type of advertising in any business – not just within the cars industry. Also, getting a written estimate is advisable as you will get a much better idea of what work is going to be undertaken including the cost of parts, labour and any administration fees for example. By abiding to such things, it can provide a more trustworthy selection of repair centre and will stand you in good stead in terms of getting the correct job done.

So we have a potential buyer looking for a new car to buy before the Christmas and New Year festive season. What does he do then if he wishes to buy or reserve a car online? Firstly then the user will have to decide upon the type of car that he wishes to purchase. The relevant research will then need to be carried out in order to find the vehicle in question and to find a Website that he can trust. Upon finding the selected the chosen one, they will normally have a few options; telephone the dealer direct, contact the dealer via email or reserve the car online by paying a small deposit using a payment system such as World Pay. Most people will indeed contact the dealer via telephone as buying a car; whether it be used or new is a quite a big purchase. Therefore by hearing someone else’s voice on the other end of the telephone provides a comfort that can help smooth through the purchase. So what about the car finance then? Well, many Websites offer finance to customers via a separate section or page that requires them to fill out an online application form. However, the dealer selling the cars can also offer a package, which would provide both convenience and less hassle. More advanced systems can sometimes be found where the cars stock number is built into the car finance application form and so unbeknown to the user, they obtain finance from 2 totally separate sources. However, the process is so smooth that it doesn’t affect the purchase or finance application in any way. Once both processes are complete, the buyer will then be contacted by both the finance lender and the car dealership. The process is then completed. This is quite a common series of events within the used cars market as many of the dealerships provide their vehicle stock to various third parties in order to get optimum exposure online. In fact, what you will notice with many of the used car Websites online is that many of them in fact provide the same search results as one another. The reason for this is that a big company such as Bristol Street Motors will provide their stock of cars to these sites in the way of an automated process that issues the latest deals and prices on a daily basis. Therefore this ensures that the Internet user is kept up to date and has access to all of the latest cars being made available for sale by the industries main players.

Touching upon an earlier entry, I too have been researching into some documentation about the safety of cars and the new types of inventions being made by the top car companies to provide vehicle drivers with a safer driving experience. Having already discussed the topic of airbags and how they were only brought into production a few years ago, it seems that the guys over at companies such as Volvo (who have a very strong reputation as having some of the safest cars ever built), BMW and Honda etc are introducing new concepts into vehicle safety and are even trying to help the consumer save money on their fuel / oil. I was discussing such topics with a friend of mine yesterday who informed me of a new fuel efficiency program being introduced by a company over in America who are working on a special device that will allow car owners to save money on their petrol (or gasoline if you are American). The most impressive thing about this new invention though was the fact that it could be used on all types of cars; new cars, used cars, vans, commercial vehicles etc and wasn’t restricted to any of the above due to it being an external device that “clips” onto the fuel pumps under the bonnet. The mechanics behind this being that it will make the fuel “thinner” that will, in turn, mean less fuel is being wasted or absorbed by the engine itself. By doing this, less petrol will be consumed, which will mean the car can clock up more miles than it normally would (improving the mpg rate). Now as noted above – apparently this new piece of technology will be available to all cars and not just new ones being built in the factory. It will be available over the counter at various vehicle outlets worldwide and is set to take the car market by storm. However, before any of the readers get too excited, no date has yet been set for its release and there has been no “official confirmation” by any of the manufacturers. Therefore, at the moment – it doesn’t exist. I suppose you could kind of liken it to the various prototype cars that are often on display throughout the various car sites and television programmes. Call it a “teaser” of some sort. Thinking about is, if this did get the go ahead, it could not only be cars and vans that could benefit but also bikes, trains and maybe even aeroplanes.

One of the most long standing debates among car users over the years has been “What is better; petrol or diesel engines”. Now this has certainly been one of the most controversial questions posed by users of cars and vans alike. However, is there a definitive answer? Ok so let’s look at the facts then. Petrol is cheaper than Diesel fuel. This cannot be discarded and is 100% factual. However, cars that have Diesel engines do provide a better fuel consumption level and offer more miles to the gallon. Therefore, mathematics then come into place and so the question here is does the balance of cost over mileage make a break-even point? Unfortunately there are just far too many non-car related factors to go through on this one and so the answer is just unknown. However, the belief among many drivers and car manufacturers is that it is roughly the same (depending upon the cost of fuel at the time). One thing we do know though is that in general (taking petrol v diesel out of the equation for a minute), new cars outperform used cars of the same engine size and type. Why? Because the newer vehicles have a more advanced fuel recognition levels and therefore offers a better performance. This has actually benefited diesel engine more than petrol engines as with the introduction of new technologies have benefited and improved the standard diesel engine, which was previously recognised as being less productive than petrol. In fact, many believe that the newer diesel type engines are on par, if not better than the current petrol types. Again, that is yet another debate! Onto the next type then; driving short journeys – what is better? Well if we are talking opinions here I must say that I think diesel car engines are the nest for shorter journeys such as driving around town. However, in terms of speed, petrol leads the way – for acceleration anyway. Cars that have a fast level acceleration usually have a petrol engine under the bonnet. At the top end however, the debate again rages on as to which engine is better. To summarise then – I suppose there are both advantages and disadvantages for both sets. The debate has gone on for many years and will probably continue to do so. However, there are just so many different factors to consider. New vehicles will generally outperform used cars when it comes to fuel consumption, a petrol powered car will normally outperform a diesel powered car and diesel cars will normally offer more miles to the gallon – especially around town. However, no factual conclusions can bet met and with technology changing at such a rapid pace – we may never know!

In the past I have brought it to the attention of my blog readers about the number of promotions on offer for cars and vans alike. More recently though it seems that Vauxhall are offering some excellent rate on cars within their new range of vehicles. I heard that 0% finance was being given on many of the cars at my local dealership. Whether or not this applied throughout the UK and beyond I am not so sure? Check the Vauxhall Website for more details on this one guys. Previous to this promotion there were some dealerships and car manufacturers that were offering much more in the way of second hand cars and those used vehicles that were popular among car buyers. The reason for these promotions was no doubt due to the time of year and the fact that new business is an absolute priority for the car companies and organisations trying to avoid the credit crunch. As it happens though, it seems that all of the report that say people do not have any money to buy cars may seem a little inaccurate given the amount of prospect buyers I saw at my local Toyota garage yesterday. There were loads of people shopping around the showroom and outside at the second hand cars and used parts sections. In my opinion it is the media that promote all the doom and gloom and use a lot of it simply to sell newspapers and justify their existence on the news channels. Maybe those people that were looking around the car showroom were buyers for the future – maybe after the New Year or they may have even just innocently been passing by. However, the fact is that the cars market is in no way on the decline and with promotions like the ones being offered by the likes of Vauxhall etc – it is only a matter of time before things are back to the way they were before the “credit crunch”.

It seems that the car manufacturers of today are certainly putting much emphasis into car safety when building their cars. Putting things into perspective then, it was only a few years ago that drivers did not have the added benefit of air bags for example. That shows just how far safety in cars has come and what measures have been taken to ensure less injuries are resulted from accidents. Taking things a bit further are a group of technicians in Japan that are believed to be producing a new invention that will improve the quality of standard airbags to help further reduce the impact on cars in the event of a collision. It comes as no surprise then to hear that these technicians are from Honda who is known to be one of the market leaders in safety and performance. Their vehicle efficiency is also second to none and the reputation that they have gained over the years is outstanding. So, getting back to the airbags then – it is being reported that these new airbags inflate at twice the speed of the current airbags. They are also meant to inflate at separate stages in order to decrease the level of impact generated. Things seem to have come a long way if this new invention is to come to light. My only query though is whether or not all cars of today should be equipped with such features? Ok so with new cars it would appear to be much easier to incorporate but what about with older used cars? Could such things be “added” into the structure of a car that hasn’t had airbags incorporated into its initial design? Is there room for additions? Obviously these new safety measures are being put in place for a reason and so I am of the opinion such things should at least try to be incorporated into ALL cars on the road….if possible.

I have a slight dilemma. With me currently being in the market for a new car, I have found two that really tick all of the boxes; a used Vauxhall Vectra and a used Vauxhall Astra. The only problem is that the Vectra is way up in Scotland, which is like a 4 hour plus drive from where I live. Whereas the Astra dealership is only just over an hour’s drive away. However, the Astra is a bit more expensive and ideally I want the Vectra as it has a bigger engine and looks more elegant. This is the problem with smaller car dealerships; they do no deliver or if they do – it is at an extortionate cost. However, because they are more desperate for business and the fact that they only sell used cars means that there is more room for bargaining with them. However, a four hour plus drive all the way up to Scotland for the sake of a few hundred pounds; is it worth it? I’m not so sure. Maybe if it was a brand spanking new Audi R8 it may not be as much of a problem as I would no doubt look forward to the drive back. However, this purchase is only for getting from A to B and will be used for work alone, which makes it even more of a pain! However, due to the line of work that I am in – a used vehicle must be purchased and so I do not have the choice of many different cars. I do like the Astra from Vauxhall but it isn’t the new shape, it is the older version (before anyone questions it!). Therefore I suppose the questions is; is driving all that way necessary in order to get the car that I want even though it is slightly more. Plus when you add the cost of petrol for getting up there and then the return journey, it makes it even more costly. Buying cars is just not easy anymore is it?!

My previous blog entry explained some of the common ways to try and save money on car insurance. So what else is there then? Well one that I didn’t mention was that you should look out for what type of car you are buying. For example soft tops / convertibles mean higher premiums. Why? Well from the lenders point of view it makes the car appear sportier than normal cars and therefore the driver and / or passenger are viewed as being more likely of being involved in a car crash. Therefore, if you wish to save money, always look at the car being purchase. Obviously the bigger the engine, the bigger the cost also but think is common knowledge among buyers anyway. Another option for saving is coming into fruition only of late as comparison sites have dominated the online car market for the last few years. However, it appears that the main car insurance lenders are now promoting that it could be cheaper for someone to come directly to them instead. Think of that what you will but it is a consideration that should be made. Another thing to consider is buying an older car. For example, insurance premiums decrease once a vehicle is more than five years old and again when it is ten years old. Therefore, buying older used cars could also be of benefit and could save you money. The reason for this being that these types of used cars are older, which means they are of less residual value and so this equates to cheaper rates. By having a pass plus certificate can also help cut insurance premiums but not all insurers actually ask the question so this isn’t a vital option to put in place. Finally, and one that isn’t exactly possible overnight is to get older! Yes, the older you are, the better the premium offered. Buying and insuring cars for people under the age of 21 can sometimes be quite difficult but it is these people that the lenders deem a risk; younger drivers with less experience. So, hurry up and get to 21! Once you are there, 25 is the next benchmark followed by 30 and then finally 50! By then, you shouldn’t be paying much……depending upon your current car type, engine size, amount of no claims bonus, previous claim history etc!

I don’t know about you guys but buying car insurance can be a right pain at times. The thing is the bigger sized engine that you get, whilst more speed is available – the cars increased insurance premium is also available! Sometime I just want to buy an old banged up used car and get cheaper insurance rates. So what can we do to help save ourselves a little bit of money? For starters the key is to always research the different lenders as it is surprising just how many of them differentiate in the way they calculate costs. In terms of the car itself, lower mileage can sometime decrease the size of the premium as can only using the vehicle for social, domestic and pleasure only. Those drivers using their cars for work increase the premium rate. The next step, which is deemed a bit of a risk in the event of a car collision, is to offer to pay more excess should there be a crash. Whilst this reduces the overall car insurance quote, it may mean more money at a certain point. By having your car on the driveway or even better in a garage can also shave some pennies off the quote as can limiting the number of people that you allow to drive your car. One option that many people do not fully understand is that if you are fortunate enough to have a little bit of money stashed away – paying the car insurance upfront and in one payment can be a good saving option. This way, the lender doesn’t get paid the interest that they would normally charge someone paying on a monthly basis. Finally, shop online! The Internet is the number 1 source of car advertising and many vehicle dealerships buy and sell cars online whilst offering car finance packages. Therefore car insurance is no different and you will find that because no members of staff are required to go through the quote with a customer, savings are made on administration, which is then transferred over into the quote that you receive. In most cases, 5% is automatically saved. Not many people know this but in a way it is common sense.