Quick Cash Auto Blog

President Barack Obama recently announced a push towards reducing dependence on foreign oil through the use of alternative-fuel vehicles. All United States fleet vehicles must be converted to hybrid, electric, or alternative fuel by 2015. After 2015, all fleet vehicles purchased by the United States government will need to meet the same criteria.

This announcement comes as part of the administration’s push to reduce oil imports by one-third by the year 2025. Prices on hybrids and other alternative-fuel vehicles have stayed fairly high due to a lack of competition. It is believed that replacing the United States government’s 600,000 fleet vehicles with more economic models will help spur competition and lower prices on developing technology and vehicles.

President Obama further announced a future plan for the U.S. government to provide a partnership program for private companies that want to upgrade their own fleets to more fuel efficient or hybrid vehicles. Details on this partnership program were not given and are likely still in development at this time.

Environmental groups are praising the move by President Obama to further reduce prices and help environmental friendliness. It is seen as a solid move for a government-led initiative to get more consumers interested in buying higher MPG vehicles and lowering prices across the board.

The fiscal year of 2009-2010 saw the United States government purchase 150,000+ vehicles. Approximately 10% of those were hybrids or alternative fuel. President Obama’s plan means an almost ten-fold increase in hybrid vehicles in the years leading up to 2015.

This should be good news for the average consumer that is looking to find more ways to conserve energy and save money. A reduction in prices on hybrid vehicles and the supporting technology will help bring prices more in line with regular automobiles. Consumer purchases have not kept in line with government regulations on production of hybrid vehicles. This needs to change so manufacturers are able to keep producing and more hybrids get on the road.

The constant and consistent push for more energy efficient models is something both Democrat and Republican sides view with equal importance. Their methods of reaching the goal of decreasing America’s independence on foreign reserves of oil differ. Consumers can expect to see the market for hybrids and fuel-efficient vehicles affected from this increased focus regardless of the methods used.

World events that shake a country often send rippling effects through economies around the world. The unexpected war in Libya and earthquake in Japan are both having a negative effect on automakers around the world.

Libya is a major producer and provider of the world’s oil with its reservoirs in the eastern portion of the country. The conflict that erupted between rebel and government forces essentially shut down much of their oil production. Prices of oil have risen as a direct consequence.

One in five microprocessors is made in Japan. That is not great news when considering the vast number of places a microprocessor is used in today’s automobile. GPS, diagnostic computer, fuel mix, and more; all make use of microprocessors. Analysts cite concerns over the effect of the hit in production of small plastic and rubber parts. Some manufacturers are reporting discontinuation of certain paint pigments that are now in tumultuous supply.

The infrastructure of Japan took such a sharp hit, that even now it is difficult for production to get back on track. Aftershocks and power losses make it impossible to resume normal production activity.

United States auto manufacturers have all put together emergency teams to figure out alternate ways to navigate this difficult time. Many are trying to avoid plant closures by taking the first step of cutting back scheduled overtime. Some manufacturers have already been forced to close plants. This comes at a time when the auto industry was beginning to make a rebound.

The effect these circumstances will have will be varied. Automakers are expected to start running out of their surplus inventories within 8 weeks. Many have begun to shift production to vehicles that do not require a lot of electronic subcomponents. Vehicles with higher profit margins are being given priority for available parts. The automobiles that do will see rising prices in the long run as demand tightens for sought after parts.

Weathering the storms of the world economy is something the automaker industry has done several times. The recent events in Japan and Libya really set the bar high for manufacturers while trying to handle the effects of these disasters. Even now they are working to find alternate suppliers and solutions to these problems.

Regardless of how one looks at any of this situation, a common economic principal will come into play. Less supply means higher demand and higher prices. If you are considering buying an automobile, prices are going to be increasing as the world feels the effects of these events and mourns the tragic losses.

Regardless of whether you’re in the market for a new or used car, if you’re applying for a car loan it’s important to pay attention to all the details and make sure you’re getting the best loan you can. Most loan companies will work with you on a lot of things, but reveal secrets to save money, likely not.

Match A.P.R.

Interest rates can vary greatly depending on the length of the loan, the amount of the loan and the loan company you work with. If you take the time to compare rates, you can save by asking your loan company to match the lowest rate. Don’t be afraid to tell them you’re inclined to start your loan elsewhere if they can’t match it. You need to look out for you.

Read the Fine Print

You know you’re supposed to read the whole contract and understand it, but the reality is most people just want to get through the process. The key points to look for are:

Financed Amount (amount of the loan)
Expected Interest (over the life of the loan)
Length of the Loan
Payment Amount
Payment Due Date
Grace Period
Late Fee
Pay Off Penalty

Once you know and understand these, the rest you can fine tune later when you’re rested from the buying experience.

Principle Only Payments

A ‘principle only’ payment is when you take in an extra payment and ask for it to be applied to the principle of your loan. This pays down your loan faster and saves you in interest. Some loan companies allow this and some do not. Read the contract to see if it’s allowed. If not and you plan on making extra payments when you can, consider a different loan company.

Pay Off Penalty

I know it sounds crazy, but some loan companies actually penalize you for paying off your car loan. Ask the company if they have a pay off penalty and how much it is. There are sometimes ways around it as well. If a pay off penalty is based on a percentage consider paying all but $1 off one month and paying the $1 off the next month.

Don’t be afraid to ask for any of these things and find out the truth of what your loan company is offering you. Shop around in all of these areas to find the best car loan for you.

Hybrid vehicles were once all the rage in the automotive industry. But several factors surround these unique vehicles that have made many potential purchasers of them think twice before buying one, and this has led to significant thought on the part of the manufacturers of these cars.

There are several key problems with hybrid vehicles that have made many consumers move away from them in recent months despite the rising prices of gas at the pump. First off, there are many non-hybrid vehicles that get just about the same gas mileage as the hybrids. Several domestic and foreign gasoline-based models are already getting between 35-40 miles per gallon in combined city and highway driving.

Also, most of these cars cost a fraction of what the upscale hybrid vehicles cost. They also drive and perform just as well and feature all of the equivalent amenities such as GPS, high-tech stereos, power everything, and plenty of interior head and leg room.

Many hybrid owners who’ve had their cars for a while simply get sick and tired of having to plug it in to an electrical outlet so frequently just to maintain its engine power. And the high monthly payments they have on these vehicles don’t make them any happier. Buyers of similar-sized, gas powered economy cars, either coupes or sedans, have reported a much greater overall sense of satisfaction and enjoyment with their chosen cars over both the short and long term.

According to automotive industry experts, hybrid sales have significantly declined in recent months. This is not just due to the slumping economy, for that has been going on for over two years now. The main reason is consumer dissatisfaction with the hybrids. Much more seemed to have been promised by the hybrid manufacturers than they actually could deliver.

Promises of extraordinary gas mileage, ease of use, and superb performance never actually occurred to the degree they were all hyped up to be. This made a multitude of consumers very angry and frustrated that the undertook a significant financial obligation in purchasing one of these much higher priced vehicles when they could literally have bought two domestic or foreign economy cars for the same price of just one hybrid.

It’s not an easy pill to swallow for these owners who now seem stuck with their payments and cars that don’t make them that happy anymore. If this mindset continues, it’s certain that even more declining interest in sales of hybrids will continue for the long term even after the economy recovers.