PriceWheels Blog

Cash For Clunkers has been signed by President Obama, but will not go into effect until July 24, when the government is finished ironing out the details of the program. Hyundai isn’t content to wait until then. According to Bloomberg, Hyundai is already advancing money to dealers so that customers can take advantage of the Cash For Clunkers rebate.

Through the Cash For Clunkers program, consumers who trade in vehicle that gets bad gas mileage for one with a better MPG rating will receive up to $4,500 from the government towards that new car. Hyundai is advancing money to its dealers so that they can start taking in Cash For Clunkers trades before the program officially launches.

The sporty new Hyundai Genesis Coupe is one of the company’s many cars and trucks that will likely qualify for the Cash For Clunkers rebate.

Hyundai’s strategy means that buyers anxious to use the Cash For Clunkers program will be able to before the official launch on July 24. Since only $1 billion has been allocated to the Cash For Clunkers program, many consumers are worried that they won’t be able to take advantage of it before funding runs out.   For those worried about not being able to take advantage of Cash For Clunkers, Hyundai’s status as the first to honor it could be a big draw.

Since the Cash For Clunkers details have yet to be decided on, Hyundai runs the risk of giving out rebates for trade-ins that don’t qualify for the program. If that happens though, the consumer will not be responsible for repaying the rebate, Hyundai will just have to take the loss.

Chrysler is out of bankruptcy and the new company is desperate for sales.  When you add up all the available incentives, Chrysler is offering discounts of up to $6,000 dollars off of some cars and trucks. But one thing is missing from Chrysler’s current offers: a low interest car loan.

While GM is offering 0% financing and virtually every manufacturer has some sort of low interest car loan incentive, Chrysler isn’t offering any car loan deals right now.

Chrysler is offering varying discounts on each individual car and truck, up to $4,000. Any returning Chrysler owner will receive an additional $1,000 off the price of their new car. Additionally, any consumer who gets their car loan through a participating credit union will receive $1,000 off the price of their car.

Chrysler’s lack of a car loan incentive is probably because of the company’s deal with credit unions to try and drive sales by offering additional cash back to their customers.

Chrysler’s massive discounts will save you over the length of your car loan. A Chrysler 300C without any discounts has a retail price of $37,885. With a 6% interest rate and a 60-month car loan, a 300C would cost you $732 a month, for a total of $43,920.

With all of Chrysler’s current offers applied, the cost of a 300C is cut to $31,885. The monthly payments on that car loan would be $616, with a total cost of $36,960.

Chrysler’s rebates would save you $6960 over the length of your car loan in that case, almost a thousand more than the advertised amount.

To put things in perspective, a 0% interest rate with no other incentives would save you  $6,060 over the length of your loan, less than what you’ll be saving with all of Chrysler’s rebates.

The moral of this story is that there’s more to buying a car than just getting a great interest rate.  While a low interest rate on your car loan can save you thousands, it’s not the only thing you need to pay attention to.

If GM’s bankruptcy isn’t finished by July 10, the U.S. Treasury Department could stop financing the restructuring. Fritz Henderson, President and CEO of General Motors, testified on Tuesday that if the sale of GM’s good assets to a new company isn’t approved by the U.S. Bankruptcy Court in time, the government could force a liquidation of all assets.

The deadline was set by the Obama administration to ensure that GM’s bankruptcy proceedings are quick and surgical. A lengthy bankruptcy could hurt GM’s chance for survival in the future.

GM’s President and CEO Fritz Henderson took the stand yesterday to encourage a quick bankruptcy for GM.

Henderson was questioned by lawyers representing consumer groups, creditors, union retirees and others, according to The Detroit News. Objectors to GM’s bankruptcy plan say that it is unfair to some groups who are currently owed money by GM. These groups will be partially paid back by the sale of GM’s bad assets, but will likely only receive pennies for every dollar they are owed. Similar objections were overruled during Chrysler’s bankruptcy earlier this year.

While the U.S. Treasury could legally force a liquidation of all GM’s assets if a sale isn’t approved by July 10, sources at GM remain confident that a liquidation is unlikely.

“Logically there wouldn’t be strong motivation to stop funding given its investment in GM and the progress made to date,” GM Spokeswoman Renee Rashid-Merem told The Detroit News.

If the Treasury Department were to force a liquidation, all GM assets would be sold off to repay the company’s creditors. In that case, all GM warranties and product liabilities would likely be void.

Under the current plan, GM will honor all existing vehicle warranties and take responsibility for any injuries or deaths due to vehicle defects that occur after the bankruptcy.

Image via The Detroit News.

GM has extended its “72 Hour Sale” to July 6. The incentive, which offers 0% financing for 72 months on most new car loans, was originally set to expire on July 30, according to Jalopnik. This gives consumers an extra week to take advantage of a great deal.

In the past, 0% interest car loan incentives were usually limited to shorter 24 and 36-month car loans. Buyers who wanted to extend their car loans to five or six years were forced to pay higher interest rates.

Zero percent financing on car loans is one of the best new car incentives for consumers. A 0% interest rate can save the average car buyer thousands over the term of their car loan.

The Cadillac SRX, a luxury crossover, is covered by the GM 72-hour sale. A fully-loaded Cadillac SRX has an MSRP of $52,430. A 72-month car loan for that price would cost $891 each month with a 6.9% interest rate, which is currently what is being offered on other Cadillac models. A 0% interest rate car loan for that same amount would cost $728 per month. That’s a savings of $163 a month, and $11,736 over the length of the car loan.

Customers who buy expensive cars like the Cadillac SRX stand to save the most with a 0% car loan, but more economical buyers will also see substantial savings.

Eager to speed up its bankruptcy proceedings, GM has agreed to take responsibility for any future injuries or deaths that result from faulty cars and trucks it sold before bankruptcy, according to the Associated Press.  GM had originally planned to follow Chrysler’s lead and include any potential liability for defective vehicles sold before its bankruptcy in the list of bad assets that will be left behind after the bankruptcy.

Consumer groups and state officials had threatened to block the sale of GM’s assets to a new company owned primarily by the U.S. government if the new company wasn’t liable for GM’s existing vehicles.

As part of Chrysler’s bankruptcy agreement,  anyone injured by a Chrysler product sold before the bankruptcy will have to sue the ‘old’ Chrysler, which is made up of all the bad assets that the company needed to get rid of in order to be viable.  Any customer injured by a Chrysler product sold before the bankruptcy will have to sue ‘old Chrysler’ and will join the list of unsecured debtors who have little chance of being paid what they’re owed.

GM did not agree to take responsibility for any pending lawsuits against the company after the bankruptcy, which will mean anyone currently suing GM over a faulty product will be in the same situation as those injured by pre-bankruptcy Chrysler vehicles.

If only this guy had built all of GM’s vehicles.  Then this wouldn’t even be an issue.

Picture via the New York Times.

Papa John set out a month ago on a road trip/publicity stunt to find the 1972 Camaro Z28 he sold to start the business back in the 80s.  Originally Papa John offered $25,000 for his long lost Camaro, but apparently the search hasn’t been going as well as he’d hoped (or, if you’re a cynic, the publicity has been good).  So John has upped the reward for his Camaro to $250,000.

Twenty five thousand dollars is a decent price for a good condition second generation Camaro.  If the current owner has done some work to the Camaro, there’s a good chance it’s realistically worth more then $25k.  Upping the bounty to a quarter million means that, no matter the condition, the current owner of Papa’s Camaro will get way more than it’s worth when they sell it.

Papa John has built a replica of the Camaro he sold to start his first pizza restaurant.

Normally I wouldn’t care about some millionaire’s publicity stunt, but this one hits close to home for me.  In addition to living with an irrational love for a machine that clearly hates me, I have a good friend in a similar situation to Papa John’s.

My friend and former employer Mike also sold his prized 1980 Camaro (same body style as Papa’s) to buy a Pizza shop.  Unfortunately Mike’s pizza place didn’t do as well as John’s and he was forced to close, but while things were going well he did buy another 1980 to restore that he’s currently working on.

So here’s hoping that Papa John does find his Camaro and some lucky person gets to collect that king’s ransom for it.  If you need me I’ll be buying up every ’72 with a split front bumper, sunroof and positrac in South Florida.

Image via Papasroadtrip.com.

GMAC, which gives car loans to most Chrysler dealers for their inventory, has suspended financing to about 80 dealers.  Left Lane News is reporting that GMAC will give the suspended dealers 30 days to get their finances in shape or be permanently cut off from GMAC’s car loans in the future.

Chrysler dealers unable to get car loans through GMAC could seek out other lenders, but since their creditworthiness has already called into question, it seems unlikely that many will get alternative financing.  Most dealerships get loans for their cars, rather than buying them outright. If a dealership were unable to get loans for its new cars, it would most likely be forced to close.

This move will not affect consumer car loans.  Customers of the suspended dealerships will still able to get car loans through GMAC normally.  The dealers have not been cut by Chrysler like the 789 that were during Chrysler’s bankruptcy.  The dealerships and will be able to continue selling cars while they have stock.  Once the stock runs out, they will need to get alternative financing for their car loans or buy the cars outright from Chrysler.

Left Lane is reporting that 60% of all Chrysler dealers get their car loans through GMAC, GM’s former captive finance company. Approximately 6% of those dealerships had their floor plan financing suspended and will have to look elsewhere for car loans.

Logo via GMAC.

Conan O’Brien is very open about the ongoing love affair he has with his Ford Taurus SHO.  While the SHO is a pretty cool car, when you factor in the obvious handicap of being built out of a Ford Taurus (more like SNOREus, am I right?), Conan has really stepped up his game since he started making the big bucks on the Tonight Show.  On last night’s episode, Conan was spotted shoving a body into the trunk of what appears to be a Buick Grand National.

Last night’s episode featured Conan’s ongoing quest to cash in on his celebrity status by taking an embarrassing photo of himself and selling it to a tabloid. Conan’s latest attempt involved dumping the body of The Fonz into a Grand National’s trunk with the assistance of Tom Cruise and a bottle of tequila.

Click here to watch the whole clip on Hulu.

The Buick Grand National was a hotrod version of Buick’s mainstream Regal coupe, similar to the wolf-in-sheep’s-clothing Taurus SHO Conan brags about so often.  The Grand National came with a turbocharged V-6 engine and made 276 horsepower and 360 lb-ft of torque in its most potent form, the GNX.

Picture Via NBC and Hulu.

It’s no secret that new car sales are slow right now.  Automakers and dealerships are offering unheard of incentives. Buy one get one free cars, 0% interest car loans, and huge price cuts are the norm, and you’d be crazy to buy most cars for anything more than a few thousand off the asking price.  There are a few cars left that are still selling for MSRP though.

The Wall Street Journal talked to Edmunds.com to find out which cars are currently selling for the sticker price.  The first group is obvious: low-volume sports cars made by Aston Martin, Lamborghini and Ferrari, as well as BMW’s high-performance M models are all being sold for asking price.

The Mini Cooper is also selling for sticker price.  The Mini’s sporty image, BMW heritage, low price and unique styling make it popular with customers who might have picked a more expensive car in the past.

Newly released cars like the 2010 Toyota Prius and Chevrolet Camaro are both selling for the sticker price.  Edmunds predicts that the 2010 Ford Taurus SHO, which is set to go on sale this summer, will also sell for close to asking price.

These new cars have several advantages over older models.  First, the novelty of a brand new car always helps sales.  Second, newly released cars are being built to match the current demand, so instead of a massive overstock that dealers have to get rid of, there are just enough Prius and Camaro models for sale.

The one thing all these cars have in common is that they appeal to car enthusiasts.  Buyers who don’t really care if they go home with an Accord, a Malibu or a Camry aren’t the same people swarming dealerships to get a 400-hp Camaro SS or a 50-mpg Prius.  The Camry/Accord/Malibu buyers are willing to wait until the recession ends to make big purchases because a car just isn’t that important to them.

If new car sales trends continue, we could see more carmakers trying to appeal to enthusiasts rather than A-to-B drivers.  This could usher in a new era in automotive history where interesting cars win over boring ones.  If that happens, maybe someday we’ll look back on all those bankers who bought and sold bad mortgages as heroes and saviors.

Picture via themotorreport.com.

In the 60s, the original Ford Mustang was available in three different body styles, coupe, convertible and fastback. The fastback body style featured a sloping rear end, unlike the coupe with it’s near vertical rear window. Fastback Mustangs were popular, and Ford used the body style for the Boss, Mach 1 and Shelby editions of the Mustang. The fastback was last available in 1993, the last year of the fox-body Mustangs.

The New Edge Mustang, which was first available in the 2005 model year, picked up the styling of the original 1964½ - 1973 Mustangs, with the exception of the fastback body style.

Now hardcore Mustang fans can finally buy a fastback New Edge Mustang, in the form of the 2009½ Iacocca Anniversary Edition Mustang.

Built to honor automotive legend Lee Iacocca and the 45th anniversary of the Ford Mustang, the Iacocca Silver 45th Anniversary Edition Ford Mustang will come decked out in Ford Racing parts, including an optional supercharger. The fastback Mustangs will only be available in silver, and will feature 20 inch aluminum wheels along with a customized interior and exterior.

Only 45 of the special edition fastback Mustangs will be available. The cost will be around $60,000, according to Jalopnik.  That price might seem high, but keep in mind this is an ultra-low production model with some intense customization done to it, so the value is sure to skyrocket in a few years.

Photos via jalopnik.