If you’re in the market for a new car, there are some important shopping points for you to consider as you set out to make your purchase. Certainly, you can always go into a dealer showroom, meet with a sales person and strike a deal. Or, you can do your research first and save hundreds, perhaps thousands of dollars on a new car.

Let’s take a look at five new car shopping tips for today’s market conditions:

1. Package options — If you plan to keep your car for the long term, let’s say for up to 10 years, you might do better by opting for a higher trim level. Certainly, you’ll pay more for a loaded car, but you’ll also save money by buying a car packaged the way you want. Car manufacturers routinely bundle popular options, such as desired technologies, selling individual add-ons as a collective and reducing the per unit price accordingly. This means you might be able to get a navigation system, rear back-up camera and Internet connectivity for far less than what you would pay individually. Often, manufacturers will throw in other goodies such as leather seating surfaces and a premium audio system to sweeten the deal.

2. Model comparisons — Are you set on a certain make/model car? If not, check out what at least three competing models offer to help form your decision. For example, if you’re looking at subcompact cars, every manufacturer has a presence in this segment, with some offering market leadership. Explore the Toyota Corolla and Honda Civic, but also consider the Ford Focus, Chevrolet Cruze, Hyundai Elantra, Nissan Sentra and Volkswagen Jetta. Look at price, packages offered, warranties and read new car reviews from the experts to determine the best choice for you.

3. Year end specials — Beginning around the fourth quarter of the year manufacturers start to roll out some of the best deals of the season. That’s because two things are being factored in: a change in model year and a change in the calendar. Deals heat up in December, but in some years you’ll find low cost financing and larger rebates beginning in October. Know what specials are being offered and shop accordingly. Inquire about recent college grad and military discounts, if applicable.

4. Model end specials — The best deals on new cars are with discontinued models. For example, the Cadillac DTS and STS as well as the Buick Lucerne were each discontinued in 2011. Cash rebates of $7,000 were offered, enabling Cadillac and Buick dealers to move inventory. If it doesn’t matter to you if a model is around anymore or not, then consider a discontinued vehicle. You get the same warranty and dealer support that you would get with any new model.

5. Lease deals — Used car valuations are up which means that lease deals are better than ever. Leasing is based on the projected residual value of your car when the lease has ended and, because used car prices are up, you’ll pay less each month for a car that is deemed more valuable some two to three years out. Some manufacturers, including GM, are offering zero down lease deals. Otherwise, expect to come up with $2,000 or more at lease signing.

Comparison Shopping

It doesn’t hurt to talk with other new car buyers about their purchases as you seek to buy a car yourself. Customer opinion is important, a shaping factor that every new car buyer can often benefit from. Shop wisely and don’t hesitate to play dealers off of each other to get the best deal on a new car. Make good use of the Internet to find and compare deals.

Posted speed limits are something that drivers routinely flout, especially on isolated open roads where traffic is light, enforcement is minimal or non-existent and when time is a factor. Beginning in the mid-1970s, the federal government legally limited highway speeds to 55 mph, setting a ridiculously low threshold that was ignored with abandon.

State Laws

Federal laws were loosened in 1987 and completely done away with in 1995, returning speed limit jurisdiction back to where it belongs: the states. Today, all 50 states feature posted speed limits above 55 mph with some stretches of roads in Texas allowing 85 mph.

East of the Mississippi River, speed limits above 70 mph have not been found, but starting this month the state of Maine is raising the bar to 75 mph, at least on one section of highway. [1] A 100-mile stretch of I-95 from Old Town to Houlton has had its speed limit raised from 65 mph to the higher limit, reflecting the driving habits of Mainers. That section of the highway is in the far northern area of the Pine Street state, just shy of the New Brunswick, Canada, border.

Posted Limits

Speed limits across the United States vary depending on the road you’re on and location. Typically, states mandate 25 mph near schools and hospitals, incrementally raising speeds above 35 mph away from congested areas. In the northeast, highways in urban areas most often have 55 mph limits, with top speeds of 60 to 70 mph on interstates.

Higher speed limits can be found west of the Mississippi, with many states allowing drivers to go 75 mph. In Utah, portions of I-15 allow drivers to travel at 80 mph. In Texas, a top speed of 85 mph is allowed on certain remote roads with rural sections of I-10 and I-20 permitting speeds of 80 mph. [2]

Lower Limits

Some states with wide open expanses of highway still restrict drivers to 65 mph. Besides those in the northeast, Illinois and Wisconsin have posted limits of 65 mph. Alaska, the most remote state of all, also limits your top speed to 65 mph. Hawaii, with minimal stretches of open road, has a state speed limit of 60 mph, the lowest in the nation.

Posted speed limits are simply a guide and drivers can go below these limits by staying in the right lane and allowing others to pass. Weather is a factor too – adjust your speed accordingly whenever visibility and road conditions change. Lastly, if your tires are not up to the task, then keep your speeds down. Aged or worn tires should be replaced regardless of your speed and personal driving habits.

References

[1] Bangor Daily News; State Prepares to Increase Speed to 75 Mph on Parts of I-95; Jen Lynds; September 27, 2011

[2] Insurance Institute for Highway Safety; Maximum Posted Speed Limits; September 2011

1. Know your trade-in’s value – New car shoppers will sometimes sell their old car to a private party, but most people trade their vehicles in, using those funds as a down payment for their new car. Used car prices have surged in recent years, but you may not know that the six-year old compact car you own is still worth at least $10,000. For example, KBB.com states that a 2005 Toyota Corolla LE in good condition with an automatic transmission and 60,000 miles on the odometer can fetch $9,025 on trade-in. [1] Moreover, if sold to a private party it is valued at $10,765. You need to know what your current car is worth before you negotiate the purchase of your new car.

2. Model end specials – Some of the biggest discounts available are for cars that have been discontinued and for those going through a generational change. For example, three GM cars are no longer made and, if still available, can yield significant savings for the buyer. The Buick Lucerne, Cadillac DTS and Cadillac STS were discontinued with the 2011 model year. The DTS, for example, offers a $7,000 discount. [2] If you can handle buying a discontinued model, then you’ll save big. Otherwise, consider buying an outgoing generational model such as the 2011 Toyota Camry. For 2012, the Camry gains fresh sheet metal and new interior.

3. Search online – The days of dealing with one dealer are over for many consumers. The Internet has made it easier to shop and save, enabling consumers to compare prices between several dealers. You can negotiate and finalize your purchase price right online, choosing the car you want and signing your purchase papers as soon as you get to the showroom. Tip: Test drive the vehicle you want before making your purchase – you don’t want to be stuck with a vehicle you really did not want.

4. Arrange your financing – Some of the lowest interest rates on new car loans are offered by dealers who use the automaker’s financing arm to get you into a new car. If zero percent financing is being offered to you, then you won’t be able to beat this rate on your own. However, if it comes down to low-rate financing and a generous rebate, such as for $2,000 or more, then shop for a loan with your bank or credit union. If you have excellent credit, a loan rate of 4 to 5 percent is possible. Secure financing on your own and tell the dealer you’ll apply the rebate to your down payment. Use an auto calculator to determine how much you can save. [3]

5. Consider other options – Buying a new car may be what you want, but leasing could be the best choice for you especially if you expect your transportation needs to change two or three years out. If buying a new car is definitely out of your reach, consider purchasing a late model used car from CarMax.com or a reputable used car dealer. You might also be able to assume a lease through a company such as LeaseTrader.com.

The new car market remains depressed which means that car dealers are battling for your business. Be thorough with your research, weigh your options and be prepared to negotiate the best money saving deal that you can find. Then, enjoy your new ride!

References

[1] Kelley Blue Book; 2005 Toyota Corolla SE; September 3, 2011

[2] Cadillac: 2011 Cadillac DTS Standard

[3] Bankrate.com: Auto Loan Calculator

By Ann Smarty

To the mind of a typical American, the car has personified the American spirit of adventure. A car is a symbol of freedom and the open road. But, when looking for a used car there is a multitude of thing you must consider, ranging from searching for a car to how to finance it.

Where to Search

One of the best places to look for used cars is online. With nationwide websites you can find a car to meet your needs quickly. These websites allow you to sift through thousands of cars so that you can find the right one for you. The best feature of an online car search is that it’s the quickest way to narrow your search.

There are many ways you can do this. The best possible starting point is price range. You can put in the minimum amount – if you have one – and also a maximum amount to help narrow your search. To help you even further you can search according to make, model or year. There are even options that allow you to search for a specific color or unique features in a car such a moon roof or sunroof.

The Big Purchase

After real estate, a car is most likely the second largest purchase a person will make. When looking for cars you need to be able to discern a steal from a lemon. One of the most important things to look at is if the car has a salvage title. A salvage title is when the vehicle is known to have been either severely damaged and/or totaled, and an insurance company has paid out a claim on it.

This identifies the vehicle as one that more than likely will be more susceptible to breaking down in the future.

Financing

Once you find the vehicle you want the next step is to come up with a down payment. The best case scenario is to buy the car outright, but more often than not this is not possible. This is why you should concentrate on raising the highest down payment possible for your car financing. The higher the down payment for the car, the better the interest rate you will receive from your lending institution.

At times, even a few hundred dollars can help significantly lower the rate. However, if you are somewhat short from your down payment goals there are ways to help attain some emergency credit.

Credit Options for You

Emergency credit services can be found in a multitude of places, from right in your own hometown to online. These businesses are perfect to serve those who are in a tight spot and need a few extra dollars until their next pay check. Depending on what you need for your car you can usually request anywhere from one hundred to one thousand dollars or more.

Online forms and approval in minutes allows peace of mind in an instant. At times, money can be direct deposited straight into your personal checking or savings account within 24 hours which allows you to make an offer on your dream car quickly.

Author Information

Annie is a frugal blogger and stay-at-home mom writing for Mobile Phone Finder, the free mobile phone comparison tool. For all car travelers we have created a detailed guide on using maps and GPS on the iPhone.

Texting While Driving

Over 35 states currently have laws banning texting while driving.  This is considered a primary offense in most of these states, meaning that an officer can stop you even if you aren’t violating any other law.  Texting while driving by beginner drivers is also prohibited in a handful of other states.

But is texting while driving really all that different from using a GPS system while driving?  Well, according to law enforcement officials: it depends.

Studies have actually shown that using a GPS while behind the wheel is even more distracting and less safe than unfolding a paper map and using it to find your way. So does that mean that we have to dust off our old paper maps or go to AAA to stock up? Not necessarily.

Built-In GPS

While some car manufacturers, such as Lexus and Cadillac, utilize built-in GPS devices that have a safety feature that doesn’t allow programming while driving, officers consider the use of a GPS device that is affixed to the dashboard or windshield not to constitute as texting while driving. Officers also consider holding a handheld device and operating it with your hands and thumb to be the equivalent of texting while driving, regardless of what type of device you are using. This should hypothetically include officers using GPS tracking devices

Nevada is currently the only state that restricts GPS usage while driving.  This means that in all other states, you can still technically program your GPS device while driving, as long as it is secure.

NETS Study

Buy why test the system? The Network of Employers for Traffic Safety (NETS) conducted a study and found that driver distraction plays a role in 25-30% of all crashes in the United States each year.  That’s roughly 1.2 million crashes.  It is no surprise that each time you add an additional device to your car, whether it’s a cell phone or a GPS navigator to entertainment systems, the possibility for distraction dramatically increases.  Indicating how technology can make or break you.

Accidents can happen in the blink of an eye. So no matter how long your phone call will last or how many characters you’re entering into your text message or GPS device, as long as you’re in an area where you’re allowed to pull onto the shoulder, the safest to do is just that: pull over to program your GPS or make that phone call or send a text message. If that’s not possible, let your passenger check out of the GPS and handle the phone calls and texts.

Author Information

Justin is an Internet Marketing pro who works with companies dealing with GPS tracking devices.  He also enjoys staying up-to-date about the newest technologies and cars.

Photo: MorgueFile

Few of us can do without a car which means finding ways to have a vehicle we want or need, but at price we can afford. Fortunately, there are some excellent options out there for the car shopper, so let’s explore what they are.

Lease New — Buying a new car means you’ll have to put down some money and make payments for three, four or five years…maybe longer. When your car is finally paid off, you’ll be left with a vehicle that will need increasing amounts of maintenance and repairs. Worse, it will be old. That’s why leasing is an excellent option for people who want a new car every three years and want to avoid paying for major repairs. Not all leasing deals are great, but some models require small down payments and reasonable monthly payments.

Lease Used — People who lease sometimes find that they can’t or don’t want to keep a car until their contract has ended. A divorce, job relocation or a need to get a larger car to accommodate a growing family may be some of the reasons why people will want to get out from underneath a lease. Services such as Swapalease.com and LeaseTrader.com have emerged, bringing car shoppers and leased vehicle lessees together. Under this arrangement, you can take over a lease and may avoid paying the residual fees already covered by the lessee, saving you hundreds, even thousands of dollars in costs.

Certified Used — You can’t afford the new car, but you may be able to afford a car that is used, perhaps a year or two old. These vehicles are snapped up by car dealers who know that they present a good value to customers and a source of profit for the dealers. Get a fairly new car that still has a warranty with it and one that has been priced to reflect the depreciation taken over its first year or longer.

Close Out — The best values on any new car lot are those vehicles that are slow sellers. Among the cars hardest to move are the previous generation models, especially as the next generation cars come to the market. If you can live with yesterday’s technology and engineering, which may not be so out of date anyway, then you could find a bargain, one with special rebates and other incentives offered to help move old stock. Examples of cars that fill this description are the Ford Focus, Honda Civic, Hyundai Elantra and Dodge Charger. Models slated for change in the coming year include the Toyota Camry, Chevrolet Malibu and Honda Accord. Models slated to be discontinued include the Buick Lucerne, Cadillac DTS, Dodge Caliber and Ford Ranger.

Hot Incentives — Incentives are one way car manufacturers move iron, with some deals designed to offer far better bargains than others. Typically, the best deals take place toward the end of the model year or calendar year, with rebates ranging from $500 to $3,500. Add in other incentives such as military rebates, recent college grad and loyalty rebates and the savings can prove significant. Shop around too — dealers in your area may offer additional specials, particularly on a trade in.

Considerations

Before you buy any car, contact your auto insurer. You may find that your insurance costs will rise by hundreds of dollars, effectively eating up your savings. Some models, particularly those that test well with the IIHS, are insured for less. Know what all of your costs will be before making a purchase decision, avoiding a surprise that goes beyond sticker shock.

Resources

LeaseTrader.com: Home

SwapaLease.com: Home

AutoTrader.com: Home

Paying cash is the way to go if you have the funds, but few of us have $25,000 or more available to make a purchase. Most buyers opt for new car financing, putting down between 5 and 20 percent or using their current car as a down payment.

Negotiate carefully when arranging car leasing.

Increasingly, new car leasing is being considered by shoppers who prefer to “rent” a car for two or three years and turn it back in for a new car. Under this arrangement the car “owner” has no financial stake in the vehicle. Instead, lessees make monthly payments and stay within the alloted miles to avoid extra charges.

Car leasing isn’t for everyone, but it does allow drivers to get behind the wheel of car that they might not be able to afford. For example, as of this publication, a Cadillac CTS can be leased for $399 per month with no money down. That amount may be lower than what buyers would pay monthly for a new car loan and it also helps lessees avoid a down payment. The person who might choose this car could be a Buick LaCrosse who shopper who realizes that she can upgrade to a Cadillac without busting her budget.

What is the best way to lease a car? By following certain steps as outlined:

1. Choose a car – Narrow your car buying list to the particular make/model vehicle you want to drive. This allows you to focus on one vehicle without the distraction of comparing different cars.

2. Take a test drive — Be certain that you’re happy with the vehicle you plan to keep for the duration of your lease term. This is important because leases generally run from 24 to 39 months. You don’t want to be stuck with a vehicle you don’t like. The cost of breaking a lease is prohibitive.

3. Know your amenities — Various trim levels are available, therefore make certain that the car you lease is equipped with the amenities you want. A navigation system may not be available on the base model and certain desired safety features such as a rear view camera may not be available at all. Verify that everything you want in a car is included — generally, you can’t add these items later when dealing with a leased vehicle.

4. Review lease deals – Not every vehicle offers a great lease deal and leasing offers change all of the time. Consider lease term, the amount of money you’ll be expected to put down, your annual mileage allowance, monthly payments and other expenses including taxes.

5. Make a deal — Negotiate the best price on the car before arranging your leasing. Your monthly payments will be based upon the cost of your car as negotiated by you. Settle for whatever the dealer offers and you’ll pay more than you need to.

6. Review your contract – Most leases are closed-end contracts which means you turn in your vehicle at end of lease term and that is that. Open-end contracts, though not common, require you to make a final “balloon payment” to pay the difference between the residual and fair market value of this asset. Avoid this type of contract — if you absolutely love the car, you can still buy it with a closed-end lease.

Once you know what vehicle you want and before you begin your negotiations with your dealer, contact your auto insurer to find out what your insurance costs will be. This is important because you may find that the leased car will sock it to your insurance coverage, hitting you with an unforeseen expense that might wreck your budget.

Resources

Investopedia: Open-End Lease

The Federal Reserve Board: Keys to Vehicle Leasing

Tire Maintenance

The two crashes NHTSA has cited both involved tire maintenance and were either improperly inflated or aged tires contributed to rollover accidents which took the lives of several people in 2010. The NHTSA has advised owners that tires degrade over time with tire manufacturers recommending that tires older than 10 years old be replaced.

Big vans are not the problem, but the way that they are maintained or driven can put passengers at risk. Besides tire maintenance, the NHTSA has found that some drivers are just not experienced enough to handle larger vehicles. A sudden shift in the center of gravity in these vehicles can contribute to accidents, especially if passengers are all sitting on one side or cargo has been loaded incorrectly.

Van Fleets

The NHTSA advises that 15-passenger vans not be used school buses and has directed its advisory to church groups and other nonprofit organizations that keep older vehicles in its fleets. Cash strapped entities may find it difficult to replace older vans with newer vehicles which means a host of safety issues might be present if maintenance has not been accomplished on a regular basis.

Drivers of 15-passenger vans should consider some additional factors when driving these vehicles:

Braking — Braking distances are longer than for most other vehicles as the van’s gross vehicle weight, payload and vehicle size mean that stopping distances are longer. This is especially important to note when roads are slick due to rain or snow.

Mirrors — Rear view mirrors offer virtually no use in large vans, but side view mirrors should be used frequently. Changing lanes and being aware of vehicles in your general area is a must, something side mirrors can provide.

Passengers — All passengers should be buckled up when riding in a van. Spacing people and cargo properly will decrease the possibility of the driver losing control.

Newer vans, unlike the aged and out of production Dodge van pictured here, may have safety features not offered on older models including front airbags, antilock brakes, anti rollover systems and reverse sensing systems. The Ford E-Series Wagon is one example of a vehicle that comes equipped with important safety features.

Resources

NHTSA; Consumer Advisory: NHTSA Reissues 15-Passenger Van Safety Caution; Karen Aldana; October 14, 2010

California State University Fullerton: 15-Passenger Van Rollover Warning

Photo: SXC

Dealers are given incentives by manufacturers to clear their inventories while sales staff salaries and bonuses are based on the number of closings accomplished for the week, month, quarter and year. Some brands, such as BMW and Lexus, are locked in a heated battle for the No. 1 position in their category or segment, with each successful sale a feather in their respective caps.

If you have some flexibility with the type of car you want, then you’re in a good position to strike a significant money saving deal, provided you keep a few things in mind as you negotiate your price:

Consider Leftover Models — Unless you have your heart set on a 2011 vehicle, you’ll find some excellent deals with leftover 2010 cars instead. Those models typically have the best incentives, rebates and low-rate financing according to Bankrate.com.[1]

Arrange Your Own Financing – Low-rate financing may be the carrot dealers dangle to get you in, offering that or the big rebate on select models. Shop for low-rate financing though commercial banks and credit unions before you head to your dealer, subtracting the rebate off of the lowest price you’ve negotiated.

What Trade In? – Dealers really don’t want your trade-in or at least they won’t pay you anywhere what you think you’ll get for your vehicle writes Gary Hoffman with AOL Autos. Dealers use the same tools you do to determine vehicle maintenance and repair history, having access to CarFax reports and Autocheck. They’ll use such data against you, offering far less for your car than what you can get for it in a private sale.

Avoid Hottest Models — Unless you have cash to burn, you’ll get burned purchasing any one of the hot new models on the market. Limited supply and strong demand means you’ll pay the full sticker price and perhaps much more to secure a deal.

Do Your Research — Just as car dealers have weapons at their disposal, you do too. You can obtain vehicle pricing reports from organizations and companies such as Consumer Reports and Kelley Blue Book, giving you information on the factory invoice price and manufacturer incentives. Create a competitive bidding process by pitting one dealer against another one to come up with the lowest price for the same make/model/submodel of car you want. Stick to your guns and you’ll save hundreds perhaps thousands of dollars on your next new car.[3]

Even if you’re not planning to buy a new car within the next week, sticking with a plan before you purchase will yield the best deal for you. Try to keep your emotions under control — once you lose your commonsense, then you’re subject to whatever schemes the sales staff throws your way.

References

[1] Bankrate.com: End of Model Year Car-buying Tips

[2] AOL Autos: How Car Dealers Nickel and Dime Your Trade-in So You Pay More

[3] FCIC: How To Get A Great Deal On A New Car

Photo Credit: Serghei Starus

Driving schools in the United States have a history of not being the greatest way to teach young drivers the safest way to operate a vehicle on the road. Given this fact, you should know the best way to select a great driving school as this is an important part of possibly saving tour teen’s life and others traveling on the road as well.

1. Captivating instruction: Most parents know that if their child is not interested in something, he or she is less likely to pay close attention to it. This includes driving instruction. The school you decide to use for teaching your teen to drive needs to have course instructors who are well qualified and know how to hold the attention of their students.

2. Check the instructors out: You may assume that because a driving course is taught by a police officer that it is the very best one available. This is not true. That officer might be great at law enforcement, but may have an awful time trying to teach a teen how to drive. Choose the school with the professional driving instructors who have passed more than the minimum state required courses for teaching young drivers.

3. Driving school proximity: A school for driving that is close to your home and your teen’s school is always a good idea. Proximity helps save time and the expense of going back and forth. It will also allow more time to get there safely for your teen.

4. Seeing the results: A driving school employing professional instructors should also be able to provide parents with results demonstrating that they know what they are doing. Ask to see how many students have passed with high marks and have gotten their license. You should also check how long it took for those students to finish their training. Parents should have the option of scheduling their child’s driving courses at any time by simply going online.

5. What goes into instruction: The driving school that takes the time to find professional curriculum developers and maintains up to date driving instruction is the one you should consider.  Schools that do not have time and money invested in their programs are not worth wasting your money on. Consider all the “thinking” that goes on about each possible situation one can get into while out on the road. Teaching the best way to react during those times is what is important.

6. Community support: Does the school you are looking into give their support to things going on in your community concerning safe teen driving? Ask them about what kinds of laws they have helped to pass involving teens behind the wheel. Find out if they support legislators who are trying to improve the rules for young drivers.

The Reality

Teen drivers who do not have the experience needed to handle some things while they’re driving is a scary thought. If you would like for your teen to be aware of just how deadly driving can be, make sure you learn how to select a great driving school. Having peace of mind when your teen is driving is worth it as is preserving the life of your teen.

Author Information

Joe Pruskowski is a team member at SWERVE Driving School, a company committed to producing the nation’s best teen drivers. Please visit SWERVE’s site for more information on driver education and SWERVE’s innovative and challenging approach to driving lessons.