Tag: Car Buying

May 16

Critics Slam Chinese Electric Car Tariffs as ‘Bad Policy’ and ‘Not Enough’

It’s no surprise that Chinese electric vehicles undercut the price points of North American alternatives. To stave off the prospect of cheap EVs upsetting the car market here in the United States, the Biden Administration introduced substantial tariffs. However, critics say the tariffs could be anywhere from “poor leadership” to simply “not enough” to prevent cheap Chinese electric cars from challenging American alternatives.

Even with record-breaking restrictions, critics think the latest Chinese electric car tariffs are ineffective

Earlier this week, U.S. President Joe Biden and his administration levied 100% tariffs on Chinese electric cars among other imported goods. While the president asserts that the move is “intended to protect US jobs” from “unfair policies.” However, not everyone believes the move will be as beneficial as intended.

According to The Economist, the global trade system has benefited from a commendable decrease in worldwide tariffs. As such, the global GDP has increased threefold and then some. Tragically, critics state that President Biden’s latest tariffs have the potential to damage that growth.

Still, tariffs aren’t the only recent development with protecting North American-built EVs in mind. The U.S. Department of Energy restricts clean vehicle tax credit eligibility to vehicles with final manufacturing in North America. Not only does that restrict Chinese electric cars, but it also leaves European EVs out of the mix.

A yellow BYD Seagull shows off its small hatchback construction.
BYD Seagull | BYD

Shocking as it may seem, a 100% tariff may not be enough to block the importation of low-cost Chinese electric car models like the BYD Seagull, per CNBC. After all, the Seagull sells for the U.S. dollar equivalent of around $12,000 in the Chinese domestic market. Conversely, the most affordable EVs in the United States are around the $30,000 mark. For instance, the 2023 Chevrolet Bolt EV, one of the most affordable new EV options for American buyers, starts at $27,495.

Moreover, the tariffs don’t name Chinese imports in neighboring countries like Mexico. Consequently, we may see cheap EVs from Southeast Asia make their way into the United States via unconventional means.

May 01

How to Get Rid of a Car Payment

According to Experian, the average car payment at the end of 2023 was more than $700 for new cars and more than $500 for used vehicles. What’s more, your prime or subprime credit score wouldn’t have really impacted your payment compared to everyone else. In other words, if you had a “good” credit score, you’d be paying about $10 more per month than someone with excellent credit. In any case, if you’re tired of your car loan, here’s how to get rid of your car payment.

Know your car loan payoff and create a plan

Until you’re aware of your remaining loan balance, you won’t be able to strategize paying it off. Call your lender or log into your account portal to determine the full loan balance, otherwise known as the “payoff.”

Once you understand the remaining sum, you can begin to create a payoff plan that will free you from the car payment treadmill sooner than your loan term.

While rare, you might be able to pay off your car loan with a lump sum

A lump sum payoff is a surefire way to quickly avoid paying interest to the bitter end of the loan’s terms. However, you’d need a relatively large sum to do so early in the loan term. Ensure that if you choose this option, it won’t leave you in a worse financial bind without that cash on hand. Additionally, confirm that your lender will allow an early payoff without penalty.

By submitting an amount that’s larger than your obligated payment, any additional funds can go toward your car loan principal. The principal is the core loan balance before interest. By paying down the loan balance, you can shorten the life of the loan, hence paying less interest overall.

Make biweekly car payments

Making biweekly car payments will ultimately shave off a whole month’s worth of the total loan every year. How? By making a half payment every two weeks, you’ll actually submit thirteen months of payment within a twelve-month period.

Understand car your loan payment terms

Before you move forward with any of these ways to get rid of a car payment, ensure that your lender accepts them and will submit additional funds or a lump sum to your balance without any punishment fees.

Car payments can feel suffocating and difficult to move away from. Overall, choosing a car with a retail price well within your financial comfort zone is best. Avoid entering a car loan if you can. If you must borrow from a lender, try to keep the payment as low as possible and do what you can to pay it off quickly without damaging your overall financial health.

Jan 18

What Are the Best New Cars You Can Buy in 2024? Here Are the Top 25

A new report ranks the 25 best new cars for the money, focusing on value and longevity.

While new car pricing is slowly coming back down to earth, there’s no denying even today’s economy cars ask for a decent chunk of your hard-earned cash. To that end, value is a critical element for most buyers currently in the market, and research firm iSeeCars put together a ranked list of the best new cars for the money.

To create this study, iSeeCars analyzed 8.3 million new car transactions between September and December 2023, as well as odometer readings of 181 million vehicles sold in the time frame between 2012 and 2022. Their methodology compares the average new price of a given model, then compares it against the “average lifespan” from the odometer readings to establish a “price per 10,000 miles” metric. So, we’re not just focusing on value as the cost to buy the car, but also brings in an angle of running costs to determine which cars offer the best bang for your buck.

The full list: Best 25 new cars for the money

Unsurprisingly, compact cars make up the lion’s share of the top 25 best value new cars. The rankings do hinge around relatively low purchase costs, but also factor in reliability, at least in terms of how long the average owner uses the car over its lifetime.

On average, any given vehicle will cost $2,779 every 10,000 miles, have an average new price of $47,885 and run for 172,331 miles (those are the average numbers across all models in the study).

Here’s the full list:

Rank Vehicle Price Per 10,000 Miles Average New Price Average Lifespan (Miles)
1 Mitsubishi Mirage $1,099 $18,991 172,784
2 Toyota Corolla $1,374 $25,017 182,133
3 Subaru Impreza $1,409 $27,830 197,562
4 Honda Accord $1,432 $30,321 211,772
5 Honda Civic $1,531 $28,594 186,824
6 Toyota Camry $1,585 $31,960 201,644
7 Nissan Versa $1,588 $20,601 129,696
8 Honda CR-V $1,617 $35,490 219,509
9 Mazda 3 $1,644 $30,253 184,069
10 Toyota Prius $1,683 $35,313 209,839
11 Subaru Legacy $1,735 $32,889 189,603
12 Volkswagen Jetta $1,737 $25,778 148,410
13 Toyota Tacoma $1,746 $41,727 239,028
14 Toyota Camry Hybrid $1,767 $35,631 201,644
15 Nissan Sentra $1,784 $23,969 134,335
16 Honda Ridgeline $1,817 $44,225 243,431
17 Subaru Forester $1,850 $36,018 194,651
18 Chevrolet Malibu $1,944 $27,667 142,332
19 Subaru Outback $1,970 $39,809 202,033
20 Toyota RAV4 $1,983 $35,359 178,320
21 Mazda CX-9 $2,009 $43,448 216,227
22 Hyundai Elantra $2,021 $25,634 126,863
23 Ford Escape $2,031 $34,071 167,744
24 Hyundai Tucson $2,088 $34,216 163,902
25 Toyota 4Runner $2,163 $49,955 230,922

Depending on your car shopping goals, there are a few takeaways from iSeeCars‘ data. While the Mitsubishi Mirage may win out by being cheaper to buy and cheaper to run than its rivals, it may also be worth sinking a bit more money into models that are well known for their durability over a long period, like the Toyota Corolla or Honda Accord. Not only does the latter average over 200,000 miles in its lifespan (as does the Honda CR-V), both models tend to have strong resale value, even with higher mileages.

That said, the Toyota 4Runner is the most expensive car to buy new among the top 25, but folks tend to hold onto them for so long that the average price per 10,000 miles makes it a strong contender. Notably, the Big Three only appears on the list twice: with the Chevy Malibu and the Ford Escape. Again, the buy-in price isn’t terribly high (by modern standards) if you go for the low-to-mid-range models, and folks who buy them tend to run them for hundreds of thousands of miles, making them better value prospects than your average new car.

Even if you’re wearing your sensible shoes, you may not want to go for the ruthlessly inexpensive Mitsubishi Mirage. There are plenty of popular options among the top 25 best new cars for your money, though, so it’s almost certain you’ll land on a good option that suits your needs.

Aug 20

Exploring Affordable Alternatives to the New $23,000 Toyota Corolla

If you’re experiencing sticker shock from the rising costs of new vehicles and are considering alternatives to the new Toyota Corolla, priced at around $23,000, there are several exciting options in the used car market. These alternatives not only match the affordability of the Corolla but also offer additional features or more engaging driving experiences, making them worth a look for prospective car buyers.

Economical and Sporty Used Car Alternatives

The new vehicle market has seen a significant rise in average prices, with most new cars now exceeding $48,000, influenced largely by the premium costs of full-size pickup trucks. However, the Toyota Corolla remains a bastion of affordability and reliability, starting at $23,000. It’s a popular choice for those prioritizing cost-effectiveness and fuel efficiency, but for those seeking a bit more zest or luxury in their driving experience, the used car market provides some tantalizing alternatives.

For instance, the Lexus UX 250h, a compact luxury hybrid, often comes with advanced features and a plush interior not typically found in the Corolla. Similarly, vehicles like the BMW 3 Series offer a sportier drive and more prestige at a price point that can dip into the Corolla’s range when considering used models. These cars provide an upgrade in terms of performance and comfort, appealing to those who might want a more thrilling or luxurious driving experience without breaking the bank.

Benefits of Considering Used Luxury and Performance Models

Opting for a used luxury or performance model like the Lexus UX 250h or the BMW 3 Series can significantly enhance your driving pleasure without compromising on cost. The Lexus UX, for example, provides exceptional fuel efficiency and the prestige of the Lexus brand, while a pre-owned BMW 3 Series offers the exhilaration of sporty dynamics with the sophistication expected of a luxury sedan. Both options maintain competitive pricing in the used market, often coming with high-end features that would be much more expensive if purchased new.

Moreover, models like the Infiniti Q50 Red Sport 400 present an opportunity to own a high-performance vehicle at a Corolla’s price. While these vehicles might offer less in terms of fuel economy compared to a Corolla, they compensate with superior power and a more engaging road presence. It’s also worth considering the added value these vehicles might bring in terms of driving enjoyment and status, potentially outweighing the higher operational costs.

In conclusion, while the Toyota Corolla remains a smart buy for those seeking reliable, economical transportation, exploring the used car market can uncover some hidden gems that provide more excitement or luxury for a similar investment. Whether it’s the enhanced performance of a BMW 3 Series or the eco-friendly luxury of a Lexus UX 250h, the right vehicle is out there for buyers willing to consider alternatives to a brand-new economy car.

Jul 20

Tomorrow’s EV Charging: Ushering in a New Era of Efficiency and Accessibility

Redefining EV Charging: The Shift to Greener Mobility

The rising allure of electric vehicles (EVs) signals a collective movement towards eco-conscious transportation. Yet, many potential adopters pause, wondering about charging options. While the growth in charging stations is steady, it doesn’t match the omnipresence of gas stations. But there’s hope. Breakthroughs in EV charging technology are reshaping the landscape, offering solutions that merge convenience with efficiency.

1. Contactless Charging

Imagine parking your car, and without a plug, it begins charging. Contactless charging, using electromagnetic fields, promises this ease, potentially revolutionizing public charging points. It not only does away with the hassle of cables but also minimizes potential damage or theft. Several pioneers are racing to mainstream this innovation.

2. Turbo-Powered Charging

One key deterrent for EVs is the charging duration. Unlike their gasoline counterparts that refuel swiftly, EVs often need patience. But turbo-powered chargers, delivering a whopping 350 kW, aim to slash this wait to a mere 15 minutes. As batteries become even more advanced, expect these chargers in more locations.

3. Two-Way Charging

Until now, EVs were energy consumers. Two-way charging changes this dynamic, enabling these vehicles to return excess energy back to the power grid. Such capabilities mean your EV could double up as a power backup or even earn by feeding the grid during peak times. This mutually beneficial system is catching on globally.

4. On-the-Go Charging

Imagine a world where your EV charges while cruising on highways. On-the-go charging dreams of such a reality, utilizing electrified roads or sky-high power lines. While it’s still a budding concept, some nations are already laying the groundwork with pilot projects.

5. Intelligent Charging

The surge in EVs demands smarter infrastructure management. Intelligent charging systems, backed by intricate algorithms, tailor charging times based on varied factors: grid health, energy rates, and renewable energy access. This not only trims charging costs but also safeguards against grid overloads.

6. Carry-On Charging

For those wary of scarce public stations, the future might have an answer: portable chargers. These compact devices could be your on-the-go charging buddy, compatible with common electrical outlets. Their charging speeds might not rival dedicated stations, but their convenience is undeniable.

7. Sun-Powered Charging

Blending renewable energy with EV charging is sun-powered charging. By harnessing solar energy via panels atop homes or stations, EV enthusiasts can attain a greater degree of energy independence. As solar technology becomes more affordable, this sustainable duo is poised for larger acceptance.

Facing the Challenges: Roadblocks to Seamless EV Charging

But like all technological transitions, the journey to ubiquitous EV charging faces hurdles. A glaring one is the absence of a universal charging standard, leading to compatibility woes. Global standardization efforts are in the works to streamline this. Funding challenges also loom large, especially for charging infrastructure setups. Here, governmental incentives can be game-changers, spurring broader establishment. Lastly, the specter of ‘range anxiety’ haunts potential EV converts. Expanding the charging matrix, coupled with dynamic charging and improved battery tech, can assuage these fears.

Charging into the Future: A Cleaner Tomorrow

To sum up, as the electric revolution gains momentum, so does the evolution of charging technology. The dreams of today, be it contactless or on-the-go charging, could soon be everyday realities. While some challenges persist, the broader trajectory is clear: a world driven by electric. With collective efforts, this greener horizon isn’t just a possibility; it’s a guarantee.

Jul 20

Comparing Maruti S-Presso and WagonR: The Ideal Hatchbacks for First-Time Buyers

What First-Time Car Buyers Seek

First-time car buyers often prioritize affordability, low upkeep, and fuel efficiency, coupled with user-friendly features. Safety elements like ABS and rear parking sensors are crucial, alongside a reliable power steering system and sufficient ground clearance for various road conditions. Additionally, easy-to-use transmission systems and impressive mileage are significant factors for those conscious of long-term fuel expenses.

Why Maruti S-Presso and WagonR Are Ideal Choices

Maruti Suzuki’s S-Presso and WagonR are standout options for first-time buyers due to their compact size, budget-friendly pricing, and low maintenance costs. Their design makes them perfect for city driving and parking, and Maruti’s extensive service network enhances after-sales support. The S-Presso’s SUV-like design appeals to younger buyers, while the WagonR’s higher stance offers better visibility, making them both popular choices among new car owners.

Detailed Comparison of Maruti Suzuki S-Presso and WagonR Variants

The Maruti Suzuki WagonR VXI is an excellent choice for first-time buyers, offering essential features like ABS, power steering, and rear parking sensors at a reasonable price. Its mileage of 24.35 kmpl adds to its appeal for those looking for efficiency. For a more budget-conscious option, the S-Presso STD, despite lacking power steering, offers a commendable ground clearance of 180mm and a mileage of 24.12 kmpl.

For those seeking additional features, the S-Presso VXi Plus delivers with power steering, a touchscreen system, and enhanced mileage of 24.76 kmpl. The S-Presso VXi Opt AT, featuring an automatic transmission and impressive mileage of 27 kmpl, provides added convenience and safety. This makes it a great option for buyers preferring automatic transmission.

Top Choices for First-Time Car Buyers

  1. Maruti Suzuki WagonR VXI: Offers a balanced mix of safety features, power steering, and excellent mileage at a competitive price.
  2. Maruti Suzuki S-Presso VXi Plus: Provides an upgraded experience with additional features like a touchscreen and improved ground clearance.
  3. Maruti Suzuki S-Presso VXi Opt AT: Ideal for those who prefer automatic transmission, combining safety and convenience with impressive mileage.

These variants offer a combination of affordability, safety, and performance, making them suitable choices for first-time car buyers looking for reliability and value.

Jul 11

The Rising Cost of Car Ownership: Why $1,000 Monthly Payments Are Becoming the Norm

Soaring Costs of Car Financing

As summer temperatures rise, so do the costs associated with buying and financing a new vehicle. Just five years ago, the typical monthly payment for a new car was around $525, but today, many drivers find themselves shelling out over $1,000 each month. This dramatic increase reflects the broader trend of escalating car ownership costs, making it harder for consumers to find a reliable vehicle that fits their budget.

The Factors Driving Up Payments

Recent data from Edmunds reveals that in 2019, only 4.3% of drivers were paying $1,000 or more per month for their car, but this figure has surged to 17.1% by 2023. This increase is driven by a combination of record-high average payments, which now stand at $733, and a sharp rise in financing rates, averaging 7.1%. For used cars, the average interest rate has climbed to 11.1%, resulting in average monthly payments of about $542.

Challenges in the Auto Market

The rising costs aren’t solely due to high interest rates. Dealers are adding significant mark-ups to recover losses from pandemic-related disruptions and supply chain issues. Additionally, negative equity—where trade-ins are worth less than the remaining loan balance—is exacerbating the problem, leading many buyers to roll over old loans into new ones, further inflating monthly payments.

Tips for Managing Car Payments

Before committing to a new car purchase, it’s crucial to assess your financial situation thoroughly. Ensure that you can comfortably handle a $1,000 monthly payment by reviewing your budget, checking your credit score, and exploring various financing options. If the high costs are overwhelming, consider keeping your current vehicle a bit longer or opting for a lower-priced model to keep payments manageable.

With average down payments reaching nearly $7,000 and car prices climbing, staying informed and making a prudent financial decision is more important than ever. If you’re prepared and financially ready, enjoy the car shopping experience and choose wisely to avoid financial strain.