NY auto show; a fashion show for cars

The real buzz in NYC this week wasn’t the Easter Parade. It’s been about the New York International Auto Show, which its president, Mark Schienberg, described as “kind of like a fashion show for cars,” ranging from haute couture to off-the-rack affordable. The NYIAS closes Sunday after a 10-day run.

The NYIAS is America’s oldest auto show and among the largest, with 1,000 vehicles on display.  The 61 vehicle concepts and introductions include a flying car and a new NYC taxicab.  Prices range from under $20,000 to a $25 million original Shelby.

The clearest message is how well the auto industry is responding to rising gas prices with much greater fuel economy.  It’s translating into better sales: an increase in March of 14 percent for cars and 11 percent for trucks.  The NYIAS is a showcase for even better things to come – everything from mean and lean to clean and green.

Nissan’s new Altima, available this summer, has two engine options, a continuously variable transmission, the ability to drive faster at lower rpms and a 15 percent improvement in fuel economy.  Cool features include automatic steering intervention, upgraded safety and hands-free communications.  Nissan also showed off the Infiniti LE concept luxury redesign of the Nissan LEAF all-electric.  Expect to see it in showrooms in 2014 with the LEAF’s 24-kilowatt-hour battery pack, a bigger electric motor, better aerodynamics and a wireless charging system.

The Volkswagen Up! sub-compact snagged “World Car of the Year” honors.  It was praised for its “…responsive steering, sophisticated suspension setup, new efficient engines and quality of materials and finish.”  Unfortunately, it isn’t available in the US… yet.

Fuel economy competition also has migrated to trucks.  Chrysler Group’s RAM 1500, available next fall, comes with a V-8 Hemi, or V-6 Pentastar, offering 42 percent more power and 13 percent more torque and 3.3 percent more fuel economy.  Its closable grille shutters lessen drag at higher speeds and a stop-start system turns the engine off at idle and on when the driver hits the accelerator, improving economy in city driving.  Additionally, an eight-speed automatic will be available, new technology that Chrysler is advancing in multiple models at a fast clip.

There are no EPA fuel economy ratings for the new BMW X1 compact crossover, but BMW has added fuel-saving technology to the vehicle, including start-stop function on the rear-wheel-drive sDrive 28i, and regenerative brakes on both the 28i and AWD 35i. Prices start at $31,545.  The Porsche Cayenne Diesel, coming next year, is a proven fuel-sipper, promising 740 miles on a 26.4-gallon tank of diesel. It’ll be priced north of $55k.

Hyundai’s two new Santa Fe models caused a stir.  The shorter Sport comes in either 2.0 Turbo (23 city/31 hwy) or 2.4 liter (23/33) 4-cylinder, front-wheel drive options. The longer-wheelbase 3.3 liter V-6 (19/26) Santa Fe has three rows of seating.  Both come standard with Blue Link communications and optional AWD and touch-screen navigation.  The Sport, beginning at $25,000, will be available this summer, the full-size Santa Fe ($30,000) next winter.

The Chevy Impala first came out in 1958.  The 10^th generation full-size Impala turned heads with three engine choices, including a 2.4-liter direct-injection eAssist (mild hybrid) version.  It also has lane departure warning, collision mitigation braking, and both forward collision and side blind zone alerts.  This is not your father’s Impala.

Arguably, the sexiest thing on wheels at NYIAS is the SRT Viper – spun off from Dodge into its own brand.  With an 8.4 liter V-10, capable of 640 hp, 600 lb-ft of torque and 100 fewer pounds, it screams speed.  Several have already been ordered, although cost and release date have not been announced yet.  The only thing faster might be a $2 million Bugatti, able to go 253 mph and zero to 60 in 2.5 seconds.

And, yes, there is a fully operational, street-legal two-seater flying car, the Terrafugia. Yours for just $279,000.  Land or air, this is the newest in versatile driving machines.

Denver Auto Show – A great place to find a job

Two issues stand out in the news right now: gasoline prices and jobs. This year’s Denver Auto Show, running from Wednesday through Sunday of this week (March 21-25) at the Colorado Convention Center, will focus on both.

The Denver Auto Show dates back 110 years and is the largest exhibit of automotive technology and innovation between the Mississippi River and the West Coast.  Only the New York and Chicago auto shows started before Denver’s auto show.  The auto show is traditionally the place where car lovers and prospective car buyers come to satisfy their desire for chrome and comfort. With gas prices rising and the economy still sputtering, there will be a big emphasis on fuel-efficiency this year at the show.

This is the first year show-goers will also have the opportunity to meet prospective employers from automotive and automotive-related industries, as well as representatives from educational programs emphasizing the automotive sector.  The Colorado Automobile Dealers Association welcomes you to the first-ever Automotive Career Fair, taking place during, and in the same location as the Denver Auto Show.

Why there? Why now? It just makes sense. Colorado’s unemployment rate of 7.8 percent, is lower than the national average, but still pretty high. When car dealers get together, the talk often turns to the challenges they face in finding and retaining qualified employees who are passionate about automobiles and trucks. What better place to match job-seekers and employers than the Automotive Career Fair?

For most people, cars are the largest purchases they’ll ever make besides their homes. The sale and service of motor vehicles provide jobs for almost 30,000 Coloradans.  Their incomes have an annual overall economic impact of more than $1.5 billion. When you take into account peripheral businesses such as parts, tires, lube shops and body shops, Colorado’s automotive industry is huge.

There is a wide range of work available in the automotive industry. A typical automobile dealership has jobs that run the gamut from service technicians and mechanics, to sales and marketing, finance, human resources, clerical and management.  Salaries can be very good.  For instance, top sales representatives and the best technicians often make in the six figures.   Most automotive career professionals are in their roles for life.  So these are really careers v jobs.

New cars have become extremely complex in the last several years. Now they are really computers on wheels – actually, multiple computers. Computers control automobiles’ mechanics, including the way they use fuel, the way their problems are diagnosed and much of the rest of the way they operate. The way that drivers and passengers interface with cars is also computerized, including cabin temperature, the entertainment system, and information offerings such as navigation and, increasingly the on-board communications system. This has opened many new avenues for people wanting to work in the automotive industry.

Most automotive jobs require at least a high school diploma and, increasingly, some additional education. The Automotive Career Fair will have several representatives from colleges and technical schools that offer specialized automotive programs.

One place where they’ve tried an automotive career fair is in New York City. The Greater New York Automobile Dealers Association staged its first Automotive Career Fair in 2001, and over the years it has been a big success. Job seekers, prospective employers and educational institutions come from all over the Northeast, including New England and the Mid-Atlantic states to meet and exchange information and resumes. We think we’ll have a similar success here in Denver.

The Automotive Career Fair at the Denver Auto Show will be located in the Accessories area. Enter through the main doors and you’ll find it in the far right corner of the show. There will be signs to point the way. So, if you love cars and you’re looking for a job or an education leading to an automotive job, the career fair is the place to be next week. Bring your resume and join us!

LEDs a bright idea in new car lighting technology

Automobile manufacturers are turned on about LEDs (Light-Emitting Diodes). The same technology that powers televisions screens, laptop keyboards, flashlights, Christmas lights and stoplights is lighting up the automotive world as the new standard to strive for in automobile running lights, headlights and taillights because they are effective, more energy efficient and look very cool.

Manufacturers have been switching to red LEDs on taillights for several years. They allow distinctive arrays, more brightness and respond up to 10 times faster than conventional bulbs. Even a split second can make a difference when a driver needs to make an emergency stop at high speed. Automakers see that LEDs offer superior performance in headlights, too and have some advantages over incandescent, halogen and even xenon lights.

The first advantage is that they almost replicate sunlight, providing better contrast while lessening eyestrain. That makes for increased driving safety. Audi’s vampire-themed ad during the Super Bowl showcased the LEDs brightness: the premise was that Audi’s LED lights were so much like the sun that they could – and in the ad, did – vaporize a bunch of hard-partying vampires. Audi has made LED daytime running lights and/or headlights available on most models.

A second LED advantage is that they last longer. Incandescent headlight bulbs have a lifespan of approximately 25,000 miles; halogen bulbs, last approximately 60,000 miles; Xenon headlamps last longer, and automotive lighting experts say that LED headlights will last the longest, outlasting the life of most cars.

A third LED advantage is that they are more efficient than other lighting technologies, and as auto manufacturers strive to boost fuel efficiency in new cars, lighting becomes increasingly important. LED bulbs are just a fraction of the size of other headlight bulbs. Instead of lighting up a filament (incandescent or halogen) or gas (xenon), LEDs light up by moving electricity across an electronic chip. It creates very little heat, which is actually wasted energy, so LED headlights are four times as efficient as halogen lamps, draining less energy from the electrical system. With the new entertainment systems, power steering and electronic controls, automobile electrical systems are already taxed. LED headlights’ efficiency also will give electric vehicles greater range, up to six miles added to the driving range of an EV, according to one recent report. That’s significant when most EVs have a single-charge driving range of less than 100 miles.

Less energy use equals less fuel use and also less pollution. Audi, which has been the leader in LED use, says that in the first year it offered LED daytime running lights, CO₂ emissions were cut by 25,000 tons. Imagine the pollution reduction when LEDs are standard on most new cars sold!

Finally, there’s the design factor. The New York Times quoted Stefan Sielaff, head of design for Audi, about how the automaker has used LEDs as a signature design element. Many Audi model use LEDs in unique, recognizable headlight configurations. “They look very high-tech and precise and accurate,” he said. “Each car needs a personality with lights.” LEDs can be round or tubular or individual bits of light and, according to Sielaff, offer endless design possibilities.

LED headlights made their debut a few years ago as an option in luxury cars like the Audi A8, the Cadillac Escalade and Lexus LS600H, Now they are showing up on lower-priced cars as they become less expensive to produce. Besides Audi, Cadillac and Lexus, other manufacturers who now offer LEDs in headlights or daytime running lights include Chrysler, Kia, Volkswagen, BMW, Porsche and Mercedes Benz.

As LEDs are becoming mainstream, the next generation of automotive lighting is already under development. BMW says it’s
developing laser lighting technology which the German automaker says offers even more energy efficiency while producing more light.

Laser lights are still a few years away from market. In the meantime, new car buyers can enjoy the illuminating possibilities of LEDs.

*Photos courtesy Daimler AG, Audi of America, Chrysler Group LLC, Cadillac Motor Car Division and KIA Motors America Inc*

New-car leasing grows in better economy with improved access to credit

Dreaming of a new car, SUV or truck but worried about the cost? Leasing could be your ticket to ride. With the economy in recovery, dealers and the captive, and aftermarket lenders they access, are offering some very good deals. And, leasing isn’t just for tax advantages or for luxury cars anymore. “Leasing has moved to include the full spectrum of models,” according to Director of Business Development Richard Van Hassel of Volkswagen Credit and Audi Financial Services.

The trend toward leasing is picking up, according to Ally Financial’s Director of Consumer Products, Greg Skurkovich. “Leasing volume has been increasing steadily for the past couple of years…we plan to continue that momentum in 2012.” Ally provides lease financing for General Motors, Chrysler, Suzuki, Saab and Maserati customers. In fact, leasing is back to its highest rate since 2005, according to several sources.

Behind the leasing upsurge, which for some brands accounts for up to 30 percent of their business, are several factors. The improved economy has resulted in more credit availability and the job market is stabilizing (unemployment in Colorado is now below eight percent). “We’re seeing a broader credit range of customers,” said Ally’s Skurkovich, who also lists stronger consumer confidence and the highest-ever average age of vehicles as contributing factors.

Why lease instead of own? “Leasing is just a very affordable way to drive more vehicle for less of a monthly payment and little or no money down,” according to American Honda Finance’s Dealer Relations Manager, Don Hull. Monthly lease payments generally will run 30 to 60 percent lower than loan payments, even with zero-percent loans.

Good leasing candidates are drivers who want a new vehicle every three or four years, want the latest technology and safety features, want the comfort of a warranty, can reasonably predict how many miles they will drive in a year, take good care of their vehicles and don’t like to negotiate over trade-ins.

According to Ron Emery of Toyota Financial, “Someone with a three-year lease can have three brand-new cars in the same time as someone who finances one 72-month retail contract.” These days, three years can bring some substantial technological, safety and fuel economy improvements.

The hassle factor is also a major leasing motivator, according to Emery. “When customers bring back a leased vehicle there is no negative equity and they aren’t subject to the volatile used car market. They just hand back the keys and walk into a brand new car. And if there is equity (the car’s resale value is worth more than the dealer originally estimated at the end of the lease) a customer gets to take advantage of that.”

“A lot of people will finance a car for six or sometimes seven years but they don’t keep the car for more than three or four years,” said VW’s Van Hassel. “They’re financing the whole car but never really paying it off, so they’re paying interest on part of the car they’re never going to use.” The difference with leasing, and the main reason monthly payments are lower, is that monthly payments mostly pay for the depreciation cost of the vehicle during the term of the lease. Depreciation is the cost of the car minus the estimated resale value of the car at the end of the lease period. In short, when you lease, you’re paying only for the use of the car for the lease period, not the full cost of the car.

Leasing used to be complicated and confusing for consumers. Federal regulations have made it much more transparent. When a price is negotiated, there are no hidden fees; the dealer discloses everything, including his profit. The only variables consumers have to worry about are damages above of the amount specified in the lease and mileage in excess of what’s specified.

Is leasing for you? Visit a dealer and see. You may be offered a deal you can’t refuse.

Detroit Auto Show takes efficiency and luxury up a notch – and more

The 2012 North American International Auto Show, opening today in Detroit, is like a smorgasbord: There are so many good choices it’s nearly overwhelming.

Fuel economy gains are prevalent throughout the show and offered by every manufacturer.  The electrification of the car continues with more hybrids, plug-in hybrids and pure electric vehicles. Gains in the traditional combustion engine continue to reduce emissions and improve fuel economy even while increasing horsepower. Plus, there’s stepped-up competition in the luxury market; and the resurgence of American brands continues.

The Detroit show represents a full-on demonstration of auto industry progress. According to Shortline Auto Group’s Don Hicks, who’s attended each of the last three shows, “Last year we felt that the industry was better. Now we’ve proved that it’s back.” At media previews earlier this week, “I couldn’t get into all of the events I wanted to see because there were so many people,” Hicks said.

Big buzz accompanies the all-new Dodge Dart, built on a Fiat platform with jazzy styling, three engine and three transmission choices, a base price tag around $16,000, and projected combined city/highway 40 mpg. One report said it’s “so voluptuous even an Italian might blush.”

Chevy’s two concepts target younger drivers: the Code 130R rear-wheel drive, four-seat coupe with mild-hybrid technology and the Tru 140S hatchback front-wheel drive with start/stop technology. If produced they’d cost about $20k. Chevrolet plans to keep asking young people for design input. A hatchback RS Sonic also debuted, adding a sportier version of the subcompact that started selling in August.

The new Ford Fusion Energi hybrid plug-in is all about maximum economy – up to 100 mpg. Ford will offer Fusion in gasoline and hybrid versions, as well. Included are lots of high-tech goodies. Fusion may compete with the Accord Coupe concept that Honda says has “a dynamic and aggressive profile.”

Toyota’s Prius c (for “city”) is a five-door hatchback, shorter than a Chevy Sonic, with a projected 53 mpg from a four-cylinder engine assisted by electric motor and battery-pack. It’s got full connectivity and infotainment and nine airbags. Toyota’s NS4 plug-in hybrid concept, coming in 2015, offers multiple advanced safety features.

Volkswagen fires at Toyota’s Prius and Honda’s Civic Hybrid with its Jetta hybrid, the fastest compact hybrid available, according to VW.

Hyundai’s announcement that it will offer a lifetime battery guarantee on its hybrid batteries could be a game-changer. Will other manufacturers accept the challenge?  Hyundai introduced a racy-looking Veloster three-door coupe with more power and efficiency and took home North American Car of the Year honors with the Elantra – voted on by a panel of automotive journalists. “Sporty but sensible,” said one panelist. They named the Range Roger Evoque North American Truck of the Year.

The Evoque exemplifies manufacturers’ efforts to marry efficiency with luxury. Examples include two Acura concepts: the NSX sports car with a V6 and two electric motors sending power to the front wheels and the ILX, built on a Honda Civic platform, offering a couple of different motor options.

Mercedes-Benz is showcasing an all-aluminum SL roadster and two E-class hybrids. Lexus’ LF-LC concept shows hot design, but few clues about how it runs; hybrid is hinted at. BMW’s i3 and i8 concepts are a little more defined. The i3 is a battery-powered five-door hatchback with a rear-mounted 170 hp electric motor – coming next year. The i8 hybrid is a 2+2 with rear-mounted three-cylinder engine assisted by two electric motors. BMW also is showing its ActiveHybrid 3, touted as the first-ever full hybrid premium compact sports sedan.

BMW’s all-new 3-Series sedan and Mercedes’ C Class, will get some serious domestic competition from the Cadillac ATS with three engine options delivering from 200 to 270 hp, decent fuel economy and styling critics are raving about.

Are you full yet? There’s lots more for car aficionados to enjoy at this huge Detroit Auto Show smorgasbord.

Green holiday tax gift for your new car

The State of Colorado is offering buyers of “green” vehicles a terrific end-of-the-year gift: a tax credit. But, as they say on TV, act now, because this offer won’t last! You have until December 31 to buy a car, SUV, light or medium-duty truck that will also qualify for the credit.

The tax credit has a complicated title: “The Colorado Alternative Fuel Vehicle Income Tax Credit.” But the intention is simple: to get Colorado drivers into less polluting alternative fuel vehicles.

Lots of Fine Print

Qualifying vehicles include electrics and hybrids as well as vehicles that use clean diesel, compressed natural gas, propane, or 85 percent or more ethanol. Ethanol vehicles (E85s) and so-called “mild hybrids” without electric motors, don’t qualify. Vehicles must be registered and titled in Colorado and, as with many tax matters, there are some complicated ground rules. These are some general guidelines:

• The alternative fuels credit for vehicles bought, leased or converted to alternative fuels between January 1, 2011 and January 1, 2012 can be taken only on your 2011 tax return.
• If your credit exceeds what you owe in income tax, you can’t carry the excess credit over to next year, but you can claim a refund.
• You may claim the credit only once.
• If you received other credits, grants or rebates for fuel efficiency, such as from the Federal CARS program, your tax credit will be reduced by the earlier credit’s amount.
• You may claim a credit on a used vehicle if you have a history on the vehicle including proof that prior owners did not claim the credit and why. The state has a formula for calculating how much of a credit you can claim.

How Large Are the Credits?

To figure the amount of your credit, the state compares the price of alternative fuel vehicles with their gasoline-powered equivalents and offers credit for between 50 and 85 percent of the difference. So, the more efficient the vehicle, the higher the percentage credit offered. On alternative fuel luxury cars, it can amount to some pretty hefty discounts.

There are several categories of credits, based on Federal emission standards and the fuel-reduction technology involved. They usually include:

• The cleanest vehicles recognized by the Environmental Protection Agency, including electric, plug-in hybrid and hydrogen fuel cell vehicles – 85 percent credit.
• Diesel-electric passenger vehicles getting 70 mpg or better – 65 percent credit.
• Cars, light and medium-duty trucks converted to diesel-electric vehicles with a resulting 40 percent increase in fuel economy; medium-duty hybrid trucks that get 30 percent better fuel economy than a comparable gas or diesel-powered truck – 75 percent credit.
• Cars and light or medium-duty trucks powered by compressed natural gas (including those with converted engines) – 75 percent credit.
• Vehicles getting 40 mpg of gasoline/gas equivalent or more – includes many hybrids such as the Toyota Prius, Honda Insight, and Civic Hybrid– 75 percent credit.
• Vehicles getting 30 mpg of gasoline/gas equivalent or more, but less than 40 mpg – 50 percent credit. (Go to: http://www.epa.gov/greenvehicles/Index.do and enter the year, state, make and model to see if your vehicle choice qualifies)

Leased Vehicles Are Eligible

If you lease, you also can receive a credit. The amount of your credit is a complicated calculation. You can see an example in the above-referenced state tax publication.

A complete description of the entire tax credit program is available online at http://1.usa.gov/vx8xSB. Click on “Income 9: Alternative Fuel Income Tax Credits.” If you have questions about how it applies to a vehicle you bought or leased in 2011, be sure to consult a qualified accountant or tax attorney.

Colorado’s new car and truck dealers are offering some of the best deals of the year this coming week. This alternative fuels tax credit is just an additional incentive for buying or leasing before 2011 ends.

Christmas is coming – Car deals are getting fat

Whether you call it a sale or a sales event, what’s going on right now at Colorado car and truck dealerships is big-time discounting, especially on 2011 model-year vehicles. As the Nissan television ad vocalizes, “It’s the most wonderful sale of the year,” at least if you’re in the market for a car or truck.

There’s a lot of pent-up demand. Between high fuel prices and gloomy economic news, consumers have been holding on to their vehicles much longer than they once did. The average age of cars is now more than 10 ½ years. Consumer confidence rose in November to its highest level in more than eight years, according to The Conference Board. Meanwhile, gasoline prices have been dropping. According to AAA, by December 3 the average price for unleaded gasoline declined 18 percent, and is still going down. Colorado’s per-gallon average was $3.18 on December 12, with at least one station offering unleaded for $2.99 per gallon.

Lowest Prices of the Year

Probably the biggest reason to buy or lease now is price. Vehicle prices probably won’t go lower than they are now. One online guide for new car pricing estimates that between now and December 31 buyers will get the best deals and discounts of the year, with the New Year’s Eve discount estimated to average 9.3 percent – average – meaning some vehicles actually will carry much larger discounts.

A major reason prices are low on 2011 models is that when January 1 comes, all 2011 models are considered to be a year old, even if they’ve never been driven off the lot, automatically making them worth less, so manufacturers and dealers are eager to get them sold. Another reason for discounting – on 2011 and 2012 models – is that dealers are trying to hit year-end sales targets.

Best Financing of the Year

Excellent financing, cash rebates, and freebies are available. Financed deals start at zero percent for several brands, including some General Motors, Chrysler, and Ford models, and even some luxury vehicles, such as Jaguar. Other manufacturers are offering 1.9, 2.9 and 3.9 percent financing with the actual percentage depending on the number of months financed.

Cash rebates can start at $500 and go up, depending on the popularity and price of the vehicle. For example, GMC offers up to $5,000 on a Sierra 1500, Chevrolet is offering a cash rebate of up to $4,505 on a 2011 Silverado and Ford is offering cash back on several 2012 models.

If you want a Dodge Charger, you can choose all-wheel drive at no extra cost, instead of a cash rebate. Other Chrysler-made vehicles come with similar offers, including no-cost DVD entertainment system with purchase of new Town & Country minivan.

Leasing Looks Good

Lease deals are equally good. One example is “The Season of Audi” event that offers to waive the first month’s payment and security deposit on select 2012 models. Leases went out of favor for awhile but are finding new popularity with higher residual values, especially for drivers who stay below a mileage cap, want to turn new vehicles more often and/or need to keep monthly payments lower.

Year-end Tax Gifts

Small business owners who dream of a new vehicle for business use can get an attractive tax advantage for buying now. According to Colorado Springs-based accountants Stockman, Kast, Ryan & Co., heavy SUVs (those above 6,000 GVW) bought before January 1, 2012, can generate a bonus depreciation deduction in the year of purchase equal to 100 percent of the vehicle cost. There’s also a $25,000 “Section 179″ expensing allowance that can be deducted on used heavy SUVs.

Some Colorado tax credits for alternative fuel cars, fully in effect through December 31, reduce by 25 percent after January 1, 2012. Watch for this column soon for more information.

No matter what you call it – a “Season’s Best” event, “Year-End Wrap Up,” “Red Tag Sale,” “Winter Event,” or something more inventive or melodic, Colorado car dealers are wheeling and dealing and consumers are the winners.