Dealer Pre-Owned

Leasing returns, but bargain rates harder to find

Wed, 16 Dec 2009 00:00:00 EDT

Vehicle leasing is resurging at a slow and measured pace, but wary automakers say it is unlikely to ever return to the madcap days when irresistibly low monthly rates drove up demand, The Detroit News reports. Consumers are still attracted to leasing because it is generally cheaper than buying, and they can always drive a new car. Dealers like it because it keeps customers coming back every few years and ensures a good selection of quality used vehicles. But automakers and lenders are being cautious after the worst recession in decades helped dry up car and truck sales, fueling big financial losses when returned lease vehicles were worth far less than expected. "We spoiled people," said George Fowler, general manager of Superior Pontiac Buick GMC Trucks in Dearborn. "Everyone who walks in wants to lease a car because they were taught in the past that payments are cheaper. People walk in and ask for a $200-a-month lease."

Mon, 29 Jun 2009 00:00:00 EDT

OPENLANE: Demand will rise for wholesale, used vehicles

Wed, 16 Dec 2009 00:00:00 EDT

As the economy recovers, new car retail sales will increase from 2009 levels, but will still be muted to pre-2009 levels, predicts Nagi Palle, VP of Analytics from online auction company OPENLANE. Headwinds from diminished vehicles per household and a lower pent up demand going into 2010 will create resistance to new car market breaking free. Used car retail sales, however are expected to remain robust in 2010 - much like 2009, Palle said.

Wed, 17 Sep 2008 00:00:00 EDT

Settlement due in Civic Hybrid mileage class action

Wed, 16 Dec 2009 00:00:00 EDT

Owners of 2003-8 model Honda Civic Hybrids, in a class-action lawsuit filed in the United States District Court for the Central District of California in 2007, contend they are getting only 31 miles per gallon, instead of the stated 49 in the city and 51 on the highway. A settlement proposal is due for final approval next month, The New York Times reports. The suit names two plaintiffs — John True of Ontario, Calif., and Gonzalo Delgado of Chino Hills, Calif. — and includes 120,000 Civic Hybrid owners. They argue that Honda advertising led them to believe the Civic Hybrid would get much better fuel economy than is likely in real-world driving. The suit stresses it is not challenging the methodology used by the Environmental Protection Agency to predict mileage but says Honda deceived consumers by not making it clear that they were unlikely to achieve the agency’s figures. While the suit refers to mileage estimates of 49/51 miles per gallon, the Civic Hybrid estimates have changed. Starting with the 2008 model year, the E.P.A. revised its fuel-economy calculations for all vehicles in an effort to make the estimates more realistic. The 2008-10 Civic Hybrids are rated at 40 miles per gallon in the city and 45 on the highway.

Fri, 14 Aug 2009 00:00:00 EDT

TransUnion sees auto delinquencies rising in 2010

Wed, 16 Dec 2009 00:00:00 EDT

TransUnion, in its annual auto loan forecast today says national auto loan delinquencies (the ratio of borrowers 60 or more days past due) will increase approximately 7 percent at the end of 2010 to 0.92 percent from an expected 0.86 percent at the conclusion of 2009.

Wed, 21 May 2008 00:00:00 EDT

Chrysler liquidation plan won't repay $4B fed loan

Wed, 16 Dec 2009 00:00:00 EDT

A reorganization plan filed in bankruptcy court in New York today by the former Chrysler LLC, now known as Old Carco LLC, shows the automaker will not repay the $4 billion government loan it received in January, The Detroit News reports. Unsecured creditors also are unlikely to recover any of their claims, unless there is a successful outcome in a lawsuit against former Chrysler owner Daimler AG by the Creditors' Committee. But some secured lenders could be fully compensated for their outstanding $20.6 million, the lengthy court documents show. The $4 billion was Chrysler's first government loan, approved by the Bush administration to come from the Troubled Asset Relief Program. The automaker received additional aid while under bankruptcy protection and a loan to help get the new company, Chrysler Group LLC, which was formed in partnership with Fiat SpA, back on its feet.

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