Volt Falls to Electric-Car Price War

General Motors Co. GM -1.07% cut the starting price of its latest Chevrolet Volt electric car by 13%, expanding a price war among makers of plug-in vehicles in response to sluggish demand.

The price cut is yet another sign of the difficulties GM has faced trying to establish a market for plug-ins. Overall, plug-in vehicle sales are rising, driven by offerings such as the Tesla Model S from startup Tesla Motors Inc. TSLA +3.07% But despite government subsidies, they remain a niche market. Limited driving range is an obstacle for most all-electric cars. Volt, which uses a gasoline motor to extend its range to 380 miles, has to compete with fuel- efficient Chevrolets that sell for as little as half its sticker price.

Auto makers are under pressure to sell more electric cars in California, which has quotas for zero emission vehicle sales, and are offering lease deals as low as $199 a month. For some consumers the low-cost leases make driving the cars almost free once government subsidies and fuel savings are combined. The sticker price on the lowest-cost 2014 Volt will fall to $35,000 from $40,000 and could cost as little as $27,500 after federal tax incentives, GM said on Monday. Consumers will be able to lease the 2014 Volt for as low as $299 a month.

The company has about 105 days’ worth of older-model Volts on dealer lots at the end of July. Auto makers sold about 7,442 battery-powered and plug-in hybrid vehicles in July, according to data compiled by the Electric Drive Transportation Association, a Washington, D.C., industry group. That is less than 1% of light vehicle sales for the month.

Tesla’s soaring stock price is more a reflection of enthusiasm for the company’s potential than its current sales, which are running at about 1,470 cars a month in the U.S., according to Autodata Corp. Tesla shares rose 4.8% to $144.68 in 4 p.m. New York trading on Monday. Volkswagen AG’s Porsche brand-to which Tesla is sometimes compared-sold 3,820 sports cars and high performance sport-utility vehicles in the U.S. in July.

GM’s price cut follows similar moves by Ford Motor Co F -1.53% . and Nissan Motor Co. 7201.TO -0.10% Ford last month dropped the sticker price of its all-electric 2014 Focus compact to $35,200, a $4,000 reduction. Nissan, earlier this year, slashed the price of its 2013 model Leaf by $6,400 to $28,800. Honda Motor Co. 7267.TO -0.51% also cut the monthly lease on a Fit EV to $259 from $389 in June. On Tuesday, Daimler AG DAI.XE -1.04% cut the three-year lease on the electric version of its Smart car to $139 a month from $199 a month.

GM sold 1,788 Volts in July-down 3% from a year ago, despite offering up to $5,000 off 2012 models and $4,000 off 2013 models last month. The number of Volts GM sold last month was less than the average sales of its large pickups in a single day.

Nissan sold 1,863 Leafs, nearly five times as many as a year ago, reflecting the company’s move within the past year to start production of the car at a U.S. factory. Nissan has capacity at a battery factory in Smyrna, Tenn. to build up to 200,000 Leaf battery packs a year.

GM says the Volt’s higher sticker price on entry models had knocked it out of contention on shopping websites such as Kelley Blue Book and Edmunds.com, where consumers can easily compare list prices among competing cars.

Reducing the cost to build the vehicle also helped GM cut the car’s price tag, GM U.S. vice president of Chevrolet sales and service Don Johnson said. GM Chief Executive Dan Akerson said earlier this year manufacturing changes would reduce its cost to build the 2014 Volt by between $7,000 and $10,000. “We have made great strides in reducing costs as we gain experience with electric vehicles and their components,” Mr. Johnson said. “We want to pass those cost savings back to consumers and we have done that with the 2014 model.”

Volt has occupied a key role in the debate over government efforts to promote plug-in vehicles since 2010, when President Barack Obama slipped behind the wheel of a Volt and drove it about 10 feet during a plant tour.

Mr. Obama endorsed the Volt as part of a broad effort to put 1 million “advanced technology” vehicles on the road by 2015, spurred by federal investments in plug-in vehicle manufacturers and battery makers. Some of those investments, such as a federal loan to Fisker Automotive Inc. and grants to battery maker A123 Systems Inc. went sour when demand proved weaker than either had anticipated.

GM has had to scale back its ambitions for the Volt. Two years ago, GM forecast it would build 60,000 Volts in 2012. But the company sold only 23,461 Volts last year. Through the end of July, the auto maker has sold 11,642 Volts, up 9.2% from the same period last year.

“Demand for electric cars will continue to remain weak especially when you have gas selling for $3.60 to $3.75 a gallon, and ongoing improvements in fuel efficiency,” says Tom Libby, an analyst with R.L. Polk & Co., a subsidiary of IHS Inc IHS -1.99% .

Price cuts on new plug-in vehicles are helping to depress the values of such cars as they age, said Laurence Dixon, a senior automotive analyst at the National Automobile Dealers Association. The trade-in value of a 2012 Nissan Leaf today is 24.5% lower than the trade-in value of a 2011 Leaf was a year ago, he said. A one-year-old Volt also is worth 21% less now than a one-year-old Volt was at this time a year ago, Mr. Dixon said.

“The incentives the manufacturers have put on these vehicles are extremely high,” Mr. Dixon says. Factoring in the federal tax credit puts additional pressure on trade-in values, he said.

In comparison, trade-in prices for used large pickup trucks, such as a Ford F-150 or Chevrolet Silverado, are up about 8% compared with similar age and model vehicles a year ago, he said.

Article Credit : http://india.wsj.com

Oil Change Katy Coupon
Kia Car For Sale Houston

Why you need a Car Extended Warranty

Lets talk car damage. Your gearbox falls apart. Your engine explodes. The electrical system in your car stops working. There is a lot of mechanical damage that could happen to your car and unfortunately, your Car Insurance wont cover these damages. If youre in a car accident or your car is stolen, your insurance will have you covered, but mechanical and electrical damage wont be. This is where a Car Extended Warranty will cover the costs of the damage.

What is a Car Extended Warranty?

A Car Extended Warranty exists to protect certain car parts once a Manufacturers Warranty has expired. A Manufacturers Warranty covers unexpected mechanical damage or electrical failure that occurs to a car, thereby saving the owner money and boosting the cars re-sale value. In a nutshell, once a cars Manufacturer Warranty expires, an Extended Warranty will continue to cover the car for any major mechanical damage or electrical fault. These are factors that are not covered by a Maintenance Plan or Service Plan.

Why is it different from a Service Plan and Maintenance Plan?

Service and Maintenance Plans are all about the wear and tear. They will both cover your vehicle for scheduled services, and a Maintenance Plan will also cover your car for a range of unscheduled maintenance items. Every car experiences wear and tear, and these plans that take care of those problems. An Extended Warranty however, will cover you for unexpected mechanical and electrical problems that are severe. These are often the most urgent and costly repairs your car will experience that is not an accident.

What are the benefits of an Extended Warranty

The biggest benefit is obvious your car will be taken care of financially by the service provider of the Extended Warranty, if your car has one. Mechanical and electrical damage can be ridiculously expensive, and if you havent planned or budgeted for it, the costs can really knock you sideways. An Extended Warranty is a great way to ensure that you always have peace of mind when looking after your car is concerned. You no longer need to worry about those surprise bills for major problems. Gearbox failure? Engine failure? Your Extended Warranty has it covered.

The second benefit of having a Car Extended Warranty is that it can maximise the resale value of your car. Warranties and Extended Warranties can be transferred to new and subsequent owners. If you decide to sell your car while your Extended Warranty is still active, it show potential buyers that your car is in excellent shape and also that, in the event of any mechanical problems after the sale, the repairs will be covered by the Extended Warranty. You will also be seen as a more conscientious car owner; something that goes a long way when selling a car.

If you have a Manufacturers Warranty and you want your car to continue to be covered for major mechanical and electrical faults, you should get an Extended Car Warranty. It will make your life simpler, less stressful and kinder to your wallet and vehicle.

Car Alignment Do You Know The 4 Signs That A Wheel Alignment Is Needed!

Have you ever wondered, What is a wheel alignment? To put it simply, a wheel alignment consists of adjusting the angles of the wheels so that they are perpendicular to the ground and parallel to each other. What is the purpose of a car alignment? The purpose of a car alignment is to maximize the life of your tires and have a vehicle that drives straight and true on a straight and level road.
These 4 signs will let you know if your vehicle needs a wheel alignment:

* The tires are wearing rapidly and unevenly
* Your car pulls or drifts away from a straight line when you let go of the steering wheel
* Your car wanders on a straight road and you are constantly making steering corrections
* The spokes of the steering wheel are off to one side while driving straight

You can visually check your own car alignment. Take a coin and insert it in the tread at the inside, center, and outside of each tire:

* If the tread is deeper on the edges than in the center, the tire is over-inflated
* If the tread is deeper in the center than the edges, it is under-inflated
* If the tread is deeper on one side than the other, have your wheel alignment checked out.
* Run your hand back and forth across the tread to check for a saw-tooth wear pattern (tread is smooth in one direction, but jagged in the other). Have your car alignment checked as soon as possible as this condition causes rapid tire wear.

Need a car alignment? Whether you need a basic oil change, a wheel alignment, or a transmission repair, our qualified auto mechanics can help you keep your car on the road. Contact our ASE Certified Technicians today for expert advice by calling (406) 248-2838, or on-line at www.pricesprecisionauto.com for more information. They will be happy to help you with all your automotive service needs. Our Tech-Net professional auto repair shop in Billings MT, serves vehicle owners in the areas of Shepherd and Laurel, MT.

Leasing A Car For People With Bad Credit

I Can’t Lease A Car Because Of My Credit Score?

Leasing a car with a bad credit score can be difficult since most of the car dealers do not let people with a bad credit score simply walk in and borrow for just any car. A car lease is similar in that the dealer will check your credit in order to assess your financial capability of meeting your lease payments. People with a bad credit standing are considered a high risk to the lessor – the risk is that you will not be able to pay on time, will default on the payment or will consistently fall into arrears on your lease payments. In the case that you default the dealer will likely repossess the car causes dealers a headache because the condition of the car is might have devalued its worth.

Your average car lease contract requires an up front deposit for security in addition to the monthly lease payments. The key to getting bad credit car leasing approved is to expect to deposit a higher downpayment in order to rely less on your financial responsibility assessment based on credit. Dealers will often allow for a bad credit lease if you will offer terms in exchange for their higher risk.

Not all dealerships will accept this next leasing strategy but it is worth considering offering additional collateral as security when leasing a car. Contracts are wide open, and almost everything is possible when mutually agreed upon, and additional collateral if accepted will help secure the asset in the case you default on the payment of your car lease fees. Bad credit car dealerships and used car dealers will typically be more flexible to this type of creative car lease arrangement.

When leasing a car with bad credit you benefit by shopping around amongst the different auto dealerships that offer leasing options for bad credit people. Do not focus on one dealer alone, it pays to have dealers compete for your bad credit lease. You might be as excited as pie and ready to sign on the dotted line to lock in your new car lease, little knowing that the next dealer has easier qualification standards and a better deal waiting that you missed out on. The next car lease offered might be at a lower price.

Prepare Before Going Bad Credit Car Lease Hunting

Before you begin negotiating with the dealers, be sure to get a copy of your own credit report so that you will have an idea of your own standing. How bad is your credit really, at this very moment, you might have a lower lease risk than you think.

If you are having trouble getting a car lease with bad credit, it might be only a couple of negative items on your credit report that are preventing you from getting approved. You have the option to go to the three bad credit reporting agencies and request to remove from your credit report negative items that are not factual so that your credit report will look good on paper to increase your lease approval chances for your dream car. In addition to increasing your chances for approval, it will save you money as a good credit score help you lower your lease rates and could help lower any deposits required.

If you have your heart set on leasing a car with bad credit, dealerships offer options. Large car dealerships and some smaller bad credit dealerships can replace the bank and offer their own lease structuring options. A large car dealer in this economy might be overstocked and in need of lowering their inventory making them more willing to provide bad credit car leasing options that they otherwise would not consider. The telephone is your friend, and can save you time, but get out and speak face to face with the leasing office personnel, the relationship you build could sway the scales in favor of your lease approval.

Additionally, talk with the head of the finance department of the car dealership that you want to lease a car from. Negotiate with them without giving them the opportunity to look in your credit standing. Leasing a car with bad credit might prove impossible BUT… you might be surprised with a loan option for purchase. They are as interested in selling or leasing you a car as you are in getting behind the wheel of your new auto.

Let car leasing people see your sincerity and that you intend to make your car payments on time. However, do not fake your sincerity. Be genuine to who you are, there is no need to hide anything.

What To Do If You Still Can’t Get Approved?

Make steps to improve your credit standing and build a history of on time regular payments. Shift your focus to paying your loans and/or credit cards on time and keep records of your good faith payment history. We want to build a case for your being a good risk for a car lease that you will then return to the dealer with. In addition your credit score will slowly improve. Speak frankly with the car leasing agent, find out what the minimum score is required to lease a car with bad credit.

While you are working on polishing your credit reports in order to make leasing a car easier, you can start saving up for your deposit for the car you want. When you return, if your credit standing will still makes you unqualified to lease the car you want, you have the other option of paying a higher downpayment, or you might have enough to get approved for a bad credit car loan.

Find out what loan offers for buying a new car might be available to you with our recommended auto financing provider…

Bad Credit Car Dealerships

There are car dealerships that accommodate people with bad credit. Look around in your neighborhood to find the bad credit dealers. Working with the bad credit dealers will provide you much more lease contract flexibility, but expect financing costs to compensate. Avoid entering any agreement that the monthly payments will be a challenge to meet, it will only lead to your facing similar bad credit car lease difficulties next time around.

When dealing with bad credit car dealers offering lease options, let them see your credit report and they will determine quickly if you meet their qualification standards for leasing a car with bad credit. If not, don’t worry, offer any of the creative car leasing approval strategies above, and if still no luck, move on to the next bad credit dealer on your list.

When leasing a car with bad credit, many of the cards, unfortunately are in the hands of the dealership. Relationships can make the difference, so be charming, smile, meet the people offering the lease and show them your genuine sincerity in wanting to make a deal. Getting bad credit car lease approved requires a little luck, a good reaction, and a lessor willing to trust you with a second chance, keep at it and you will find one.

Car Service And Maintenace Tips For Keeping Your Car In Top Condition

Every responsible car owner should know the basic car maintenance. After all some of us spend a great deal of time in our cars and should consider things like comfort, efficiency and most of all safety of our vehicle. When you are driving a vehicle that hasn’t been properly maintained and serviced correctly you are putting yourself in danger as well as jeopardizing the safety of other traffic participants. The responsible thing to do is learn the basics to car servicing, and perform regular auto checks. Should a problem arise, you should immediately contact the your car service centre and let the experts handle the auto repairs correctly.
In the meanwhile, here are some basic car maintenance tips that every driver and car owner should know to keep his/her car in good running condition for the road.

Tips for car service and maintenance to keep in mind:

Change of oil and other fluids. To keep your car running efficiently and with the least expenditure of fuel, you need to change your oil and filter regularly. This will also keep your engine in good condition. Most cars require an oil change every 3000-4000 miles. Oil and other fluid such as steering and transmission, coolants, brake fluids as well as fluids for the windshield should be checked once a week. If you don’t have time for this, or don’t know how to do it properly, you should let an experienced auto mechanic handle it for you, or better yet, show you how you can do it yourself.

Tires should also be checked weekly. They are mostly susceptible to tear and wear. Tire pressure is also very important as it provides balance to your car and also affects fuel consumption. Do not overlook to check this.

Timing belt. Timing belts have limited service life depending on the car manufacturer. That said, it is best to check your car manual to make sure when replacement is due. There might be a problem if you are not the car’s first owner. When buying a second hand car you should always inquire about the last time it was serviced and when the timing belt was replaced. In case you can’t get these information, replace it just to be on the safe side.

Brakes. Braking system in addition to braking fluids should be checked at least once a month. Should any problems arise in the meantime, if you hear any unusual noise when you break, or the car doesn’t react as quick as it should, you must have your brakes checked by an auto mechanic immediately. Brakes issues are a serious problem since any failure can put you and other people on the road in danger.

Windows, mirrors lights and wipers should also be checked for cracks or damage. Other than that you need to make sure your mirrors (side-view, rear) are wiped clean and your lights all work properly. Blades for the windshield wipers are important especially during raining season.

Car servicing should be done regularly, as the average car owner doesn’t have the proper expertise to make a thorough vehicle inspection. Consider hiring an auto mechanic much llike you have a family doctor. Your car will thank you by keeping you as safe as possible.