PriceWheels Blog

Chicago - Average auto debt per auto loan borrower nationally rose 0.13 percent in the fourth quarter to $12,738, according to a report from TransUnion.com.  The largest state average was in Nevada at $16,133, followed by the District of Columbia at $15,818.  The lowest average auto debt was in Michigan at $10,454.

“It is not surprising that the greatest levels of average auto loan debt are found in areas with some of the biggest population growth rates in the country, or where decentralized metropolitan areas make car ownership more of a necessity than a convenience,” said Ezra Becker, a principal consultant in TransUnion’s financial services group.  ”It is in these markets that demand is higher and thus prices are greater.  It also may be that auto loans in these regions are relatively younger and hence have higher balances.  Demand is lower and loans are more seasoned in states like Michigan, Nebraska, Maine and Ohio, thus balances are generally lower as the average auto loan gets closer to its payoff date.”

The steepest increases in average auto debt, correlating perhaps to greatest demand, occurred in Oregon (3.55 percent growth), the District of Columbia (3.34 percent) and New Jersey (1.91 percent).  Montana experienced the sharpest drop in average auto debt (-3.7 percent) followed by Maryland (-1.5 percent).

Auto loan delinquency (the percentage of auto loan borrowers 60 or more days past due) was highest in Louisiana at 1.44 percent, followed closely by Mississippi at 1.43 percent.  The lowest auto loan delinquency rates were found in Alaska (0.16 percent), North Dakota (0.40 percent) and Wyoming (0.47 percent).

“From a risk perspective, auto loan delinquency seems to mirror the continued economic downturn that has plagued southeastern states like Louisiana and Mississippi in the long wake of Hurricane Katrina, and has been indirectly exacerbated by the continuing mortgage crisis,” Becker added.

Source: Special Finance (www.special-finance.com)

Detroit - The purchase of an average-priced new vehicle took 23.9 weeks of median family income in the first quarter of 2008, according to the latest Auto Affordability Index compiled by Comerica Bank.

The latest reading is down 0.6 weeks from the fourth quarter and 1.1 weeks compared to a year ago.  Including finance charges, the total cost of buying an average-priced light vehicle was $28,389 in the first quarter.

“It’s a buyers’ market and the producers are being forced to offer bigger discounts in one form or another,” said Dana Johnson, Chief Economist at Comerica Bank.  ”Buyers also are holding down their driving costs by choosing smaller, more fuel-efficient cars.  That is reflected in the fact that the average amount spent on a new car excluding financing costs was only $24,627, the lowest quarterly average in 2 1/2 years.”

Source: Special Finance (www.special-finance.com)

Remember your older brother’s first car in the 90’s?  It was that hideously-small, cramped, ugly, tin bubble Geo Metro.  You crossed your fingers every time you got in the thing, hoping a semi wouldn’t change lanes next to you.

The back seat was only big enough to fit a small child or someone with short legs.  It had a terrible stereo and with a three cylinder engine, struggled a bit on the entrance ramp to the highway.

But Geo Metro’s were cheap, throw-away cars that a high school or college student could actually afford to drive.  The best asset of the Metro?  It got an average of 46 miles per gallon.

This 1991 Geo Metro is currently for sale on Autotrader.com for $5,995 in Alexandria, LA.

Here’s the shocking part.  Used Geo Metro’s, once selling for around $1,000 or less, are now selling for up to $6,000!  Yes, that’s right. Six thousand dollars. Most of the Metro’s currently for sale have around 100,000 miles or more.

Why are cars like the Geo Metro, Hyundai Excel and Ford Festiva making a comeback?  One theory is that people who want a super-fuel-efficient car and don’t want to spend 20 grand on a Toyota Prius are resorting to the cheapest, most gas-friendly vehicles on the used car market.

This increased demand is causing the prices on these old clunkers to make big jumps.  A used, three-cylinder Geo Metro gets the same mpg as a brand-new Prius hybrid, reports USA Today.

This is the interior of the above 1991 Geo Metro currently for sale on Autotrader.com.

The Festiva and Excel get around 35 mpg and up due to their small engines and lighter weight.  Small cars today are heavier because they have airbags and other safety features that add weight to the vehicle.

The trade-off is about the safety.  Yes, you can get awesome gas mileage by buying one of these old, tiny cars, but are you really going to be comfortable driving 65 on the highway, knowing there are no airbags?

So if you aren’t worried about your car’s appearance or lack of safety features, you can be part of the resurrection of the once nerdy, but now semi-cool Geo Metro. 

The Toyota Prius, which was first sold in Japan in 1997, is the world’s first gas-electric hybrid vehicle to hit the one million mark in sales.

Toyota says that 1.028 million Prius vehicles have been sold globally as of the end of April.  The Prius is sold in 40 countries and regions.

The car, once popular with celebrities and eco-conscious drivers, is now gaining popularity because of high gas prices and concerns about pollution and the environment.

Toyota said introduction of the Prius has resulted in 4.5 million metric tons less of global warming gases compared with having standard gas engine cars on the road instead of the hybrid, reports the Detroit News.

If you are planning on buying a Prius though, expect to look a little harder than you would for a different model.  Prius vehicles are flying off the lots and some dealers even have waiting lists for them.

U.S. dealer supplies of Priuses are at the lowest levels since 2006 right now.  Expect to wait about two weeks for your Prius hybrid, due to waiting lists and a low supply.

Two weeks doesn’t seem that long to wait, considering the Prius is the world’s best-selling hybrid, according to the Detroit News.  Prius sales increased 67 percent last month, even though it is one of the models in the Toyota line-up receiving a price increase.

Ford is recalling more than 650,000 F-150 and Lincoln Mark LT trucks to fix a hose that could affect the vehicles’ braking power, reports the AP.

Included in the recall are the 2005-2006 versions of the trucks with 5.4 liter 3-valve engines.  There have been 11 minor accidents and no injuries related to the problem, says Ford.

Ford spokesman Wes Sherwood says more than 600,000 of the trucks are in the U.S. and about 50,000 are in Canada.

Dealers will replace the hose at no charge.  Owners are expected to be notified in late June, and the recall is slated to begin in July.

For more information, owners can contact Ford at 800-392-3673, http://www.ford.com/, or the National Highway Traffic Safety Administration’s Web site at http://www.nhtsa.dot.gov/.  

The ultra-compact Smart ForTwo car is so tiny that many wondered how it would hold up in a massive crash.  Well, the ForTwo has passed the safety tests with good grades.

It earned the Insurance Institute for Highway Safety’s highest rating, good, in front and side impact crash tests.  The car’s seats and head restraints earned the second-highest rating, acceptable, for rear impact whiplash protection.

Here’s the limitation on the safety tests’ results though.  While the frontal tests do a good job of replicating a crash against a fixed object, there’s no telling exactly how a big, heavy SUV or truck combined with a high speed would affect the Smart car in a crash.

The Smart ForTwo is the smallest car sold in the U.S. at almost nine feet long and as the name says, it only seats two people.  While there’s not much to the car, it encompasses a high-strength cell around the driver and passenger, reports USA Today, and relies on the seat belts and air bags to protect its passengers.

The Commerce Department reported today that retail sales have decreased by 0.2% in April.  But, if you take out auto sales, the retail sales number actually increased by 0.5%. 

Retail store sales, excluding auto sales, beat the projected percentage increase, reports CNNMoney.com.  Sales were projected to increase 0.2%, so the 0.5% increase definitely surpassed that mark.

It seems consumers were buying things like gas and groceries during the month of April, they just weren’t buying cars.  This could result in a surplus of vehicles on the lots in May, so now could be the time to get a good deal.

Yes, you read the headline right.  Web loans with 842% interest rates do exist, with some even as high as 2,000%.  I know what you’re thinking.  Who in their right mind would apply for a loan with such a ridiculous interest rate?

The majority of those who are using online loan services don’t have the best credit, so they wouldn’t qualify for a typical bank loan or home equity loan.

These loans are called online payday loans, similar to the ones you can get at the storefront centers, offering a loan of money until you get paid.  These loans often come with steep fees and interest rates though.

Payday loans usually are marketed to poor and low-middle income workers.  Now even middle class workers are resorting to online loans to cover themselves until payday due to high gas and food prices and tight credit.

The Chicago Tribune ran this story on May 11 and it is such an eye-opener to the ways that companies prey on consumers who are going through a tough financial time.  Click here to read the whole story to make sure you don’t get caught up in the same situation that the woman in the story did.

Saab is recalling 57,389 9-5 series cars from the 2002-’08 model years to install new A-pillar trim with “improved energy-absorbing capability.” The federal government reports that the affected vehicles failed to comply with one of the government requirements for occupant protection during “interior impact.”

The recall is not expected to kick off until September, according to the recall summary on the NHTSA Web site. Federal regulators say “in the event of a crash, personal injury to occupants may occur” as a result of the problem. “During compliance testing, one of the upper interior occupant protection test points exceeded the standard’s requirements,” said the NHTSA.

Though dealers will install the new trim free of charge it is frightening to know that in this day and age something like this can still slip, and that it took this long to figure it out! Saab owners can contact the automaker at the number below for more info. If you’re affected by this recall, contact them right away!

SAAB : 1 (800) 955-9007.

Above: If your car is a Saab 9-5 it’s in your best interest to look into this recall immediately…. 

Nick Hogan, the 17 year old son of professional wrestling icon Hulk Hogan, was sentenced to eight months in jail on Friday for causing a car crash in which his passenger suffered severe head injuries. The sentencing only seemed to trigger even more rage as people are saying that his punishment was to easy because he is a celebrity.

Nick Hogan, whose real name is Nick Bollea, pleaded no contest to a charge of reckless driving with serious bodily harm. Nick totaled a highly tuned Toyota Supra while driving at a high rate of speed on August 26, 2007. His passenger, John Graziano, 22, suffered severe head injuries and remains in a semiconscious state. There have been accusations of illegal racing on Hogan’s part, which people are claiming as the cause of the accident.

Judge Phillip Federico told Nick Hogan, “There has to be some punishment,” before handing him his sentence. The sentence also includes five years’ probation and 500 hours of community service. Federico also suspended Hogan’s driver license for three years. Graziano’s parents asked that Hogan be sentenced to some jail time, according to Reuters. They are suing Hulk Hogan and his son for “millions of dollars in damages.”

My opinion on the matter differs slightly. First, though Nick was driving recklessly, it is easy to see he meant no harm to his friend and did not want this. In other words, it was an accident. To think that John did not want to “go for a ride” or that he was not enjoying himself would be stupid. He wasn’t kidnapped, the kid knew what he was getting into, this was one of many times that he had ridden with Hogan and they were friends. Second, though I feel for the Graziano family for what they are going through, it is easy to see that their newest focus is not their son, but rather the millions of dollars they are most certainly going to get from the Hogans. If this was a middle-class family and any other situation this would never cross their minds. The school of thought with these people is that they can sue the shit out of the Hogans for all this money. I’ll bet if the Hogans stepped up and offered to pay for all the medical bills that the family would deny them and still sue for a multiple-million dollar settlement. They want the money.