Five Factors will Drive Bigger Auto Sales in 2011

Chris Woodyard, DriveOn blog, USAToday.

U.S. new-car and light-truck sales are headed for double-digit percentage gains in 2011. So predicts Paul Taylor, chief economist of the National Automobile Dealers Association, which explains why in the following:

"The auto industry is coming back strong from what has been a difficult economy," Taylor says. "Auto sales are playing a key role in leading the economic recovery."

With the average age of cars and trucks on the road today at more than 10-years-old, Taylor says Americans will need to replace their aging vehicles. This fact, combined with low financing rates and wider credit availability, will help boost new-vehicle sales 12 percent this year, he says.

"Sales will reach 12.9 million new-cars and trucks in 2011," Taylor says. Last year, 11.6 million light vehicles were sold.

Here's a list of NADA's top five factors that will accelerate new-vehicle sales this year:

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How to be a Careful Car Buyer

How to be a careful car buyer - Jerry Hirsch of the LA Times

December is always a big month for auto sales, especially for luxury cars. But before you park a new vehicle by the Christmas tree, USAA Savings Bank, the San Antonio financial institution that provides services to U.S. military personnel and their families, offers the following tips.

Want versus need: The bank says a car should have a useful life of about eight years. Where are you in that cycle? If it is time to purchase a new vehicle, be practical and think about what you need now and in the future to handle such things as such as a growing family, safety and fuel efficiency.

What can you afford: The bank recommends not to spend more than 12% of your net income -- the amount deposited into your checking account each month -- to all car payments combined. For example, if you bring home $4,000 per month, you should not be spend more than $480 per month on car payments.

How's your credit?: Your credit score will affect interest rates and ultimately your monthly payment. Prepare for financing a car in advance by cleaning up any mistakes in credit reports at least six months prior to making a big purchase.

Cars cost more than the monthly payment: Insurance rates for new cars are generally more than the car they replace. Sports cars cost more to insure than sedans. Figure out what the insurance costs will be for the cars you are interested in before you buy. Don't forget that more reliable brands cost less to maintain and that gas mileage affects what you will spend on fuel annually.

Your new car might be used: The bank says that a new car's value drops at least 20% when you drive it off the dealer's lot. You might consider buying a pre-owned vehicle from a recent model year and avoid that hit.

Limit the loan term: Most cars depreciate on a daily basis, so don't drag it out. Limit your loan to 48 months or less. You can do that by saving up and making a larger down payment. This will also help reduce what you spend on interest. If you have to stretch the loan out to afford the monthly payment, you are probably spending too much on the vehicle.

Do your homework: Be armed with information before you agree to a deal. Not surprisingly, USAA pitches its own buying service, but two websites, Truecar.com and Edmunds.com, provide a wealth of information that can help you negotiate the best deal.

Friends are friends, not auto dealers: Friends may offer up their used car for sale, but the bank says to be careful about entering into such a transaction. Do the same research you would do if you were buying from a dealership. Nothing can ruin a friendship more quickly than feeling you got a bum deal.

Get your new/used car checked out here

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November oil change special $26.95. Most cars.

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US Automakers Post Solid September Sales Gains

Chrysler and Ford help Detroit reverse slippage of market share

Americans bought cars and trucks last month at the strongest pace since 2009's cash-for-clunkers program, giving Chrysler and Ford sharp increases -- a trend that could give the industry and consumers a psychological boost in the year's final quarter, executives and economists said.

U.S. auto sales jumped 28.5% in September, helping to lift year-to-date sales 10.3%.

"It's another step to a healthy, but painfully slow, recovery," said Jesse Toprak, a market analyst with TrueCar.com in Santa Monica, Calif.

The most encouraging signs: The gains came without an increase in incentives, and sales of pickups, considered an economic indicator because contractors often use the trucks, continued to gain strength.

Pickup sales through September are up 13.5%, and trucks are outperforming cars so far this year, partly because of relatively low gas prices. That is a positive sign for the bottom lines of the Detroit Three, who still depend on trucks for profits.

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Engine Overheating: Causes & Cures

Internal combustion engines run on heat. Chemical energy in the fuel is transformed into thermal energy when the fuel burns, which produces mechanical energy to push the pistons, spin the crankshaft and drive the vehicle down the road.

As efficient as today's engines are, they still waste a LOT of the heat energy they produce. The average gasoline engine is only about 22 to 28% efficient. That means over two-thirds of the heat produced by each gallon of fuel either goes out the tailpipe or is soaked up by the engine itself. Diesels squeeze a little more bang out of each buck's worth of fuel with efficiently ratings of 32 to 38%, but even that leaves a lot of waste heat that must be managed and carried away by the cooling system.

Ironically, the hotter an engine runs the more efficient it becomes.

But how hot is too hot?

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Again, Toyota? Company to Recall 270,000 Lexus and Crown Cars Worldwide

Toyota's been having a tough year.

After recalling millions of cars cars since November due to faulty brake and gas pedals, the company is now recalling more than 90,000 Lexus and Crown vehicles in Japan, this time over defective engines.

The major flaw is in valve springs, which are essential to any car engine. The defect could make cars stall while in motion.

A Toyota spokesman told the Associated Press that overseas recalls will come soon, adding up to around 270,000 cars around the world. Toyota will recall about 138,000 cars in the U.S. (See if Toyota made TIME's Top 10 Product Recalls list.)

In total, Toyota has now recalled more than 8.5 million vehicles for problems ranging from defective gas pedals to software errors. Last week, the company recalled 17,000 Lexus models after noticing fuel can spillage after rear-end crash testing.

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Camaro Trumps Mustang -- For Now

In close competition, the Chevy Camaro outsold the Ford Mustang over the last year.

The modern-day Chevrolet Camaro has won bragging rights from Ford's Mustang--at least for the 12-month period since the Camaro reappeared after a four-year hiatus.
But the honor may be short-lived.
From April 2009 through March 2010, Chevrolet sold 82,405 Camaros, compared with Ford's 72,669 Mustangs.

But the 2011 Mustang threatens to deprive the Camaro of its first calendar-year victory over its Ford rival since 1985. The 2011 Mustang came out in April with new 3.7-liter V-6 and 5.0-liter V-8 engines, and Ford's car beat the Camaro 10,225 to 8,931 last month.

But the game of one-upsmanship continues. Many of Ford's sales came from incentives on 2010 Mustangs, and GM has help on the way: A Camaro convertible appears next year to compete with the Mustang's ragtop.