Vehicle Classics

Getting An Auto Loan In The Current Economic Crisis

It seems as if each new day brings more bad news on the economic front. As you know, the financial crisis has tightened credit markets. To auto dealerships, that means lower sales. To consumers, it means that it can be difficult to get a car loan. But, it’s important to realize that the credit markets are not completely closed. You can borrow money to purchase a new vehicle. In this article, I’ll describe the current state of the auto industry in the context of how hard it is to get an attractive car loan.

Understanding Automakers’ Willingness

It may be hard to tell from watching the news, but automakers are eager – even desperate – to find prospective buyers for their vehicles; and they’re willing to offer financing terms for buyers with a reasonable credit score. In fact, because dealerships are in financial dire straits, a lot of them have begun offering attractive incentives in order to move their inventories. If your credit is good, now may be the most opportune time in years to purchase a new model.

Current Financing Rates

As you would expect, interest rates on auto loans are heavily dependent upon your credit score. Rates always change, so the numbers I’m providing are likely to move up and down. That said, I’ve been noticing that financing rates plummeting over the last few months.

If you’re in the top bracket with a credit score above 720, you should be able to find bank-supported auto financing at less than 6.7% If you’re at a credit union, you might be able to secure a rate below 6%. Once your score dips below 670, rates start moving up significantly. For example, a car loan with a 60-month term at your bank might be set at 11% (credit union financing might be set at 9%).

The Trend Against Leasing

In the past, millions of people considered leasing a vehicle rather than purchasing one. You could count on getting more for your dollar through a lease. However, the current economic climate has had an unanticipated effect on the auto leasing market: it has become much tighter. Most of the automakers have begun to restrict the number of cars they make available for leasing. Those people who have become accustomed to driving vehicles they couldn’t afford to buy have little choice but to downsize their expectations to fit their budget.

The important point is that it is still possible to secure financing for a new vehicle. Despite the prolonged lull in consumer confidence and the recent challenges in the credit market, you can get a car loan. The key is making sure that you’re creditworthy and then approaching the dealer or your bank. For a lot of consumers, the current financial crisis may be the perfect time to get an attractive deal on a new car.

Vehicle Classics

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Protecting Your Car From Catalytic Converter Theft

Even though your vehicle’s exhaust system performs an important job, few drivers give it much thought until one of the parts fails. Your muffler, sensors, manifold, and tailpipe are all susceptible to failure, but can continue doing their respective jobs for years. A new trend has emerged over the past few years which is driving motorists to their local repair garages. Catalytic converters have become the popular target of thieves.

Below, I’ll explain why this component has become a favorite item for the unscrupulous. We’ll also take a look at who is most vulnerable to having it stolen. Lastly, I’ll provide a few tips for minimizing the danger.

Why Thieves Steal This Component

Catalytic converters are manufactured from a variety of materials. Among them are precious metals such as rhodium and palladium. In the same way that gold prices fluctuate, so too, do the prices for an ounce of rhodium and palladium. For example, an ounce of platinum (another precious metal found in this part) often commands prices above $1,000 an ounce.

Thieves realize this. They know that stripping this part can fetch up to $150 from scrapyards and $300 from various metal buyers. What’s more, with a few tools (i.e. a pry bar, reciprocating saw, and a sturdy jack), stealing it can be accomplished quickly and easily. With little risk and a potentially high financial reward, thieves are swiping them from vehicles in broad daylight. Unfortunately, replacing a single catalytic converter can cost several hundreds of dollars.

Who Is At Risk?

Every vehicle is at risk, especially those which use more than one catalytic converter. That said, SUVs and trucks tend to be targeted more often by bandits. The reason is twofold. First, SUVs and trucks are often higher off the ground than sedans. Second, the parts and systems are often less crowded. As a result, there is more room for thieves to maneuver under the vehicle which makes it easier for them to strip the cat.

It’s worth emphasizing that although trucks and SUVs are targeted more often, it is relatively easy to remove this part from any vehicle, even sedans.

How To Prevent Theft

There’s no foolproof way to secure a catalytic converter and rebuff every attempt to steal it. But, there are preventative steps you can take to make your car, truck, or SUV a less appealing target for bandits. For example, try to park your vehicle in a garage overnight. When you’re forced to park outside, try to do so in an area that has plenty of light and traffic. A thief is less likely to spend a few minutes under your car if he (or she) is exposed to other drivers. Also, consider investing in an alarm system that is triggered through a shock or motion sensor.

As long as catalytic converters are manufactured with precious metals and are easy to remove, they will be the target of thieves. By taking a few preventative measures, you can help ensure your cat stays attached to your vehicle.

Vehicle Classics

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Tips For Buying A New Or Used Sedan

If buying an SUV seems like overkill for your limited cargo needs and a pickup truck doesn’t quite fit your personal style, a sedan may be right up your alley. There are several categories, from small to luxury, and each offers a unique blend of comfort, attractive aesthetics, and practical utility. Most cars in this class are also fuel-efficient while delivering impressive engine performance.

In this article, I’ll provide four tips for buying a sedan. Whether you intend to buy a new or used model, the following guidelines will help you select a vehicle that meets your expectations.

#1 – Consider A Six-Cylinder Engine

Smaller cars in this class typically have 4-cylinder engines. They tend to be more fuel-efficient that larger engines, but the disparity between a 4-cylinder and a 6-cylinder is diminishing. Today’s larger engines are almost as fuel-efficient as smaller ones. Plus, they deliver more power and a smoother ride.

#2 – Pick A Drivetrain That Suits Your Environment

FWD, RWD, or AWD? The majority of cars that are built today come with front-wheel drive. When the roads are wet and slick, this type of drivetrain offers more traction and control than RWD vehicles. That said, rear-wheel drive offers more overall steering control under normal driving conditions. All-wheel drive isn’t as popular as the other two drivetrains, but many sedans come with it. Like FWD, it is especially effective on slippery roads. If you live in a location that receives a lot of rainfall, FWD or AWD cars will provide more control on the road.

#3 – Test The Trunk

Don’t simply judge a trunk by its space. You should also consider how comfortable it is to work with. For example, if you’re a regular golfer, you’ll be loading and unloading your clubs often. Make sure the trunk’s height and design allow you to do so easily. The same is true if you travel often. You’ll be lifting your suitcases into the trunk repeatedly. If it’s too high, it will quickly become an inconvenience. A generous trunk can still be hard to work with.

#4 – Sit In The Back Seats

Buyers often become enamored with a sedan without checking to see whether the back passenger seats offer enough room. Sit in them. You should be able to move the front seats all the way back without significantly encroaching on the back passengers’ leg space. The best way to test them is to first sit in the driver’s seat and adjust it so you’re comfortable. Then, sit in the seat behind the driver to check whether there’s enough space.

Buying a new or used sedan is a matter of personal taste and needs. The cars in this class offer general purpose utility, but that utility can mean different things to different people. Whether you prefer a small 4-cylinder or spacious V8, there is a sedan that can seamlessly fit your style.

Vehicle Classics

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