Although no one is exactly sure whether or not the U.S. is actually experiencing a modest economic recovery, the fact that new auto sales hit a four-year high last month is evidence that at least some American consumers are feeling a little better about their economic futures. New car sales, like other durable goods purchases, can be viewed as a strong indicator of economic growth, as few people will step up to buy a new car or other major investment when they feel uncertain about the economy.

In that light, the March 2012 auto sales figures could represent an brighter picture for the nation’s economic growth as overall car sales jumped up by over 12 percent and sales hit a seasonally-adjusted annual rate of 14.4 million vehicles in that month alone, making the first quarter of 2012 the best quarter for auto sales since 2008.
Analysts note that the increase in sales could be partially driven by higher gas prices and looser credit restrictions. When gas prices rise, those consumers who can afford to will buy new vehicles with better fuel economy in an attempt to save some money at the pump. The looser credit restrictions, driven by improving conditions and new regulations in the banking industry, work right along with the increased demand for new cars by enabling more consumers to qualify for the loans needed to buy newer, and more gas-efficient cars. The result is a perfect storm where the combination of increased credit availability, an improving economy, a back-log of demand and high gas prices all work together to push more people into purchasing newer, more fuel-efficient vehicles, and in the process it all fuels overall auto industry sales.

The monthly sales totals were the highest at Chrysler, where the US sales increased by 34 percent in the month of March alone. Ford enjoyed less success in March with a gain of just 0.16 percent, while General Motors lost 4.56 percent. Assuming the economic recovery continues at the current pace, the increase in March sales has caused some analysts to revise their estimates of the total auto sales this year up to some to 14.5 million new vehicles. That figure would make
2012 the best year for car sales since 2007 when American consumers purchased 16.3 million vehicles.

The rapid growth in auto sales is starting to have an effect on the automakers too, as many now have plans to expand their U.S. operations in an effort to cash in on the changing marketplace. Volkswagen of America said it would add 800 jobs at its factory in Chattanooga, Tennessee, Nissan has plans to hire 1,000 new workers at its plant near Nashville next year, and Toyota has announced it will invest $400 million into a factory in Princeton, Indiana where it will also add
400 new jobs next year as well. Those increases hint that total employment at auto plants in the U.S. could reach as high 650,000 by the end of the year, representing a 10 percent overall gain over the auto industry employment figures from 2011. If the estimates are accurate, it could represent a real renaissance for the auto industry in the U.S. going forward into the second half of this decade.

According to the latest sales figures for February 2012,even though overall electric vehicle sales are still falling short of annual goals set by many automakers last year, electric vehicle sales have inched slightly ahead of last year’s numbers. Industry analysts are anticipating that a combination of higher gasoline prices and an ever-so-slightly rebounding economy might spur more sales of electric vehicles in the year ahead. More new electric vehicles will be making their debut this year as well, another factor that could increase consumer interest and boost sales.

General Motors enjoyed increased sales of the Volt and Nissan sold a few more Leaf vehicles in February, the two automakers combined sold more than 1,500 battery-based vehicles in the same month alone. That sales of electric vehicles are running ahead of last year’s pace is pretty good news for GM considering the recent climate of negative publicity surrounding the Volt and the fact that slow sales caused GM to shut down Volt production for a few weeks. Looking at the numbers from year to year shows a brighter side of the picture, with the Leaf sales increasing by 617 percent over last year and Volt sales increasing by 264 percent.

The other automakers are not sitting idly by either, with Chrysler introducing an electric version of the Fiat 500 EV later this year, and the Ford Focus Electric, Toyota’s all-electric Prius and Honda’s plug-in RAV4-EV all debuting in 2012. Optimistic industry watchers believe this combination of factors might be enough to sustain market momentum and the sales of electric vehicles could go through the roof and perhaps even double by the end of the year.

Every major automaker reported sales increases in February and Nissan along with Kia and Hyundai set sales records during the month. All in all, the February sales numbers are a good sign that the forecast for the overall U.S. car market in 2012 could be accurate and some analysts are even predicting that the sales of all autos will grow by double digits by the end of this year. Even brands that saw sales slip during the recession are doing better. Mitsubishi and Suzuki both saw sales increases in February that exceeded their most optimistic forecasts and Toyota’s Camry continued to sell briskly, while the Prius, Yaris and Scion all posted double digit increases in February too.

Although the February sales were up across the board for nearly every category of vehicle, it looks like high gas prices could be the tipping point that pushes electric vehicles to the top of the list as more new car buyers begin to consider electric vehicles as a truly viable purchase option going forward into 2012.

According to a study of state vehicle registration data by the Polk automotive research firm in Southfield, Michigan, in 2011 the average age of a privately owned car or truck in the U.S. had reached a record old age of 10.8 years as financial insecurities in a weak economy caused many people to hold on to their existing vehicles longer than they normally would. Polk’s data showed that the average age of a car in the U.S. was 8.4 years in 1995 and that the average had steadily escalated up to 10.6 years by the year 2010.

Because automakers are now making cars and trucks far better than they used to, people can hang onto them longer and the aging American auto fleet has helped repair shops and companies that sell replacement auto parts to weather the weak economy with increased business. However, the trend toward keeping vehicles longer coupled with very slow new car sales, has kept many automotive companies from hiring new workers and that serves to keep unemployment at high levels. And it also keeps many people from making big-ticket purchases like a new car.

There may be some good news on the horizon though, as the Polk analysts also noted that but there are signs that people may be growing confident enough in the economy to let go of the older vehicles that they’ve been holding onto and step up to a new car purchase. Polk data indicates that a rebound and market growth for the next couple of years could slowly reduce the average age of cars in America, but it could take three years or longer of an improved economy along with increased auto sales before it happens.

U.S. auto sales rebounded last year and sales at the end of the year in November and December were particularly strong. In 2009, U.S. auto sales hit a 30-year low of just 10.4 million units. The Polk estimates indicate auto sales will rise by about 1 million units per year through 2015 when they will hit the 16 million mark, a number that approaches the nation’s auto sales peak of 17 million units back in 2005.

If sales continue to rebound and the auto industry is able to add more new jobs, the average age of privately owned cars and trucks in the U.S. will undoubtedly start to come back down to the point where most Americans no longer drive the same vehicle for an entire decade.

The North American International Auto Show that recently opened to the press in Detroit, displayed a renewed confidence in the auto industry as well as an unprecedented focus on fuel economy numbers, as it appears to be the biggest motor show in years with all of the major domestic and foreign players back onboard.

After making it through the worst recession in memory, the .U.S. auto industry’s biggest show is reflecting that Detroit may be back in business, but it won’t be business as usual as the industry has changed and fuel economy is now the number one story. The 2012 show is now larger and flashier than it has been in recent years as Ford, Chrysler and General Motors all rang-up double-digit sales growth last year. Sales in the U.S. rose to 12.8 million vehicles last year, a 10.3% increase over the year prior and the highest number since 2008 when both Chrysler and GM had to be bailed out by US taxpayers at the height of the recession. All three U.S automakers are pinning most of their hopes for success on a slew of new hybrid electric vehicles.

Japanese automaker Nissan rejoined its rivals at the show after a three-year absence, and luxury brands BMW, Lexus and Mercedes also debuted new hybrids in their lineups, underscoring the new importance of fuel mileage numbers. The entire auto industry seems more optimistic than it has been in years, although there has been a noticeable shift toward better fuel economy. After weathering three of the worst years in U.S. auto market history, Detroit’s Big Three are hoping their latest offerings will hit the mark with today’s cautious consumers. As Reid Bigland, the head of Dodge brand, said: “We are thoroughly thankful for the second chance we have been given. We have been through hell and we don’t need to go back.”

Poor sales and the high costs of meeting modern emissions standards have put the final nail in the coffin of the Mazda Motor Corp. rotary engine. After a successful 45-year production run, Mazda announced that the final version of the rotary-powered Mazda RX-8 will go on sale next November and the factory will end production shortly afterward in June of 2012.

The announcement is sad news for fans of the rotary engine that powered thousands of cars and trucks including the first and only Japanese car to win the prestigious 24-hour Le Mans endurance race in France. Mazda introduced its first rotary engine car in 1967 and has been the only automaker in the world to produce rotary engine vehicles. Fans of the rotary point to it’s simplicity but detractors say the time has come and gone for the unique engine that has always been a bit more expensive to manufacture than conventional gasoline engines and uses more fuel as well.

Mazda issued a statement saying that research and development on the rotary engine will continue, but general production no longer makes sense when compared to the costs of meeting safety and emissions standards for new vehicles. The sporty RX-8 is the only model in Mazda’s present lineup with a rotary engine and the decision to halt production shows how current consumer tastes have changed over the years from once preferring sports cars to now desiring greener vehicles. As a result, Mazda was only able to sell just under 3,000 of the rotary-powered RX-8 cars in the last year.

Although Mazda says it will remain committed to the ongoing development of the rotary, the Japanese automaker does not have a ready line of green vehicles yet. Lacking the electric technologies that its larger Japanese rivals like Toyota, Honda and Nissan have displayed, Mazda is struggling in the current green marketplace. Although Mazda has had a long relationship with domestic partner Ford Motor Co., Ford began reducing its stake in Mazda back in 2008, and currently owns less than 4% of the Japanese firm.

Depreciation is defined as the decline in a car’s value over the course of its useful life. It is an unfortunate fact that a new car will lose 15% to 20% of its value every year and that means a two-year old car will only be worth about 80% of its 1-year-old value. The 3-year-old car will be only worth 80% of its 2-year-old value. Numbers like that can turn what might have seemed like a good deal at first, into a bad investment after a few years of ownership.

Depreciation affects all cars, not just the new ones and all car buyers should be aware of it if they truly want to make the best purchase possible. Used-car shoppers need to understand depreciation, but it is the new cars that lose the most value as soon as they are driven off the dealer’s lot. At that moment the new car is only worth its wholesale price, that is amount a dealer would be willing to pay for the new car if it was returned for any reason. Any cash spent on taxes and licensing fees is also lost as well. Basically it is the difference between the wholesale price and the retail price that is lost immediately.

Brand, model and the condition of a car also determine a used car’s value, but some brands will depreciate slower than others and hold their value from year to year a bit more. Obviously you’ll pay more for a low-mileage, 1-year-old car that looks like new than you would for the same model with high-mileage and dents, but because no two used cars are exactly alike, anyone planning to sell a car after a couple of years would do best by choosing a model that retains its value well. You may have to pay a little more upfront, but you will also get a bit more back when you sell it. Buyers who plan to keep a car for several years should look for durability and avoid vehicles that have a reputation for needing a lot of repairs.

What might have been a great buy as a new car might be a disaster in the used-car market because it lost over 50% of its value. Vehicles purchased new at a bargain prices can depreciate rapidly and at the three-year mark, the same vehicle might have lost over 50% of its value. By the fifth year of ownership the vehicle might have lost as much as 75% of its value and the added costs of ownership including financing, insurance, repairs, fuel, maintenance and taxes can actually exceed the vehicle’s total value. This means depreciation can actually be the greatest expense during the first five years of vehicle ownership, a stark fact that many consumers simply overlook when shopping for a new car.

This means the resale value of a new automobile purchase is important to every car buyer unless they plan to drive it forever and never sell it. No one really plans to drive one car forever, so the point is moot and resale values still dictate the used values down the road. Buying the lowest priced car possible can be a bad idea as purchasers can often end up losing more cash than they saved on the initial price because the bargain car is worth very little after three to five years.

Consumer perception of value can have a dampening effect on value as tried and true brands will hold more value longer. If consumers don’t believe that one car is as good as another, it will definitely affect the resale value. In a climate of rising gasoline prices, vehicles that do not meet consumer expectations for reliability, dependability and fuel economy can also suffer in resale value as evidenced by the recent dip in values across the entire full-size SUV segment. Customized vehicles will have lower resale values than unmolested examples of the same car as not all buyers are willing to pay for the modifications.

It is possible to increase a vehicle’s resale value by equipping a vehicle with options that may attract buyers later, like anti-lock brakes, navigation systems, cruise control and other options, but there is no guarantee that ploy will work in every case. Used car dealers have shown a preference for vehicles that are painted in standard colors like black, white or silver and are standard in appearance without too much customization because they are easier to sell. In the end it boils down to gaining knowledge of the market through diligent research and a bit of shopping around for a deal that works up front as well as several years down the road.

The National Automobile Dealers Association (NADA), one of the leading sources of vehicle pricing and related information available today, just released its NADAguides Quarterly Car Buyers Market Report featuring nine current models from nine different manufactures that earned the honor of being included in the NADAguides Top Recommended Current Buys list. NADAguides based the rankings on analysis and comparison of each new vehicle’s depreciation values, current incentives and rebates, warranties, assistance services and overall features.

A NADA press release states that consumers are looking for the best deals when it comes to car purchases and the Car Buyers Market Report was designed to spotlight those new cars currently on the market that have a bit more to offer than just low prices for consumers. Significant vehicle offerings factored in the analysis included low first-year ownership depreciation value of 21 percent or less, basic warranties of 36,000 miles or more, above average features that make driving more pleasurable, road-side assistance programs, financing incentives, a competitive retail price within the segment and the numbers of days of product availability supply.

Troy Snyder, director of product development at NADAguides: “These nine vehicles offer value and features that many consumers are starting to expect from automotive manufacturers at lower price points. What was previously only available in luxury segment vehicles is now starting to become standard across all types of makes and models. These features, coupled with a great warranty, additional customer services such as free maintenance, and competitive incentives are making many new vehicles much more attractive for car buyers. The Car Buyer’s Market Report is designed to help consumers determine which vehicles are ones they should definitely consider and these nine vehicles offer a little something for everyone.”

In case you were wondering, the nine new vehicles chosen as Top Recommended Current Buys in the Car Buyers Market Report included the 2011 Audi S5, 2012 BMW 6 Series, 2012 Chevrolet Colorado, 2012 Ford Mustang, 2011 GMC Terrain, 2012 Hyundai Tucson, 2011 Land Rover LR4, 2011 Toyota Venza and the 2012 Volkswagen CC.

The NADAguides Current Car Buyers Market Report was created to serve as an ongoing study to track and report on the best new car purchases for the consumer marketplace in order to help with the overall new car buying process. NADA is also currently the largest publisher of vehicle pricing and information for new and used cars, classic cars, motorcycles, boats, RVs, and manufactured homes in the world today.

Nissan Motor Co. has just introduced a new charger for electric vehicles that is smaller, easier to install and about half the price of the Nissan current chargers on the market. Company spokesmen said the new charger will be on sale by November in Japan and should be available in the U.S. and Europe sometime early next year. The new charger is primarily aimed at owners of the all-electric Nissan Leaf, and the company hopes to sell at least 5,000 of the new generation electric chargers in Japan alone by the end of March 2016.

Although electric vehicles are still a niche market, the Leaf is one of the pioneering models in zero-emission technology and they are being sold mainly to local governments right now instead of to regular consumers. To date, Nissan has sold more than 13,600 Leaf cars globally since they first went on sale in December 2010. There are now some 600 chargers in use throughout Japan. About 32 percent have been placed with individual consumers, while the rest are in use by local governments, highways and other companies that promote electric vehicle use.

One drawback ahs been that recharging stations are not in widespread use yet and owners now must go through the trouble of installing a charger in their home garages. The current chargers resemble gas pumps and are often difficult to install at home. To get around that fact, Nissan hopes to sell the new chargers to highways, airports, shopping centers, convenience stores and gas stations. The basic model of the new charger will cost about half the price of the current model, which is larger and has more parts. The new model charger will cost 1.47 million yen ($19,000) while an upgraded version for use outdoors will cost under 1 million yen ($13,000) according to Nissan’s promotional literature.

Automotive industry analysts believe there will be over 62 million people driving cars with Internet access inside them within the next five years. That estimate is exponentially higher than the one million or so consumers who had Internet access in their cars last year, and demonstrates the fact that as smart phones become more affordable and versatile, more consumers will be demanding Internet connectivity inside their cars. The auto makers are poised to give the public access to social media and the Web in their cars so that more drivers can check their Facebook status, find restaurant listings, check the weather and stock reports from behind the wheel. Those simple tasks might be easy work on a standard computer, but they could also add up to a lot of unnecessary distraction for those who are supposed to be keeping their eyes and ears on the road while driving.

It is obvious that more connected cars are coming when one looks at the television commercials for Toyota’s Entune System, Ford’s Sync system, GM’s Onstar system and Audi’s new Audi Connect system. All are Internet connection systems that will permit drivers to complete a variety of online tasks from behind the wheel. Although there are now more cars that allow drivers to stay connected, some auto companies are a bit hesitant to add too many technological innovations into their vehicles due to the distraction potential they could present for drivers.

Over complicated controls could be another source of driver distraction in the next generation of passenger vehicles as well. For example, BMW’s complicated stereo radio system requires six individual steps and about 10 seconds to tune in just one radio station properly. Anything that removes the driver’s attention from the road for 10 seconds could be a source of distraction and ultimately, danger on the road.

Ford and Microsoft worked together to simplify the Ford Sync system technology that not only allows drivers to make hands-free phone calls and adjust the radio with voice controls, but also lets drivers hear text messages aloud and read back tweets too. Ford says their Sync system has already been installed into some 2.5 million cars and trucks, and that the application will continue to be installed in more Ford vehicles going forward. General Motors’ OnStar system has also been voice-activated since the mid-1990s, and like the Sync, the idea is to allow drivers to stay connected, but without presenting unnecessary distractions. It is very likely that American drivers will continue to answer phone calls, text and listen to music while they are driving, but with the hands-free systems at least they will be able to do it while keeping their hands on the wheel and their eyes on the road.

Automotive industry researchers say there has been a 38% decrease in the number of vehicles on U.S. roads with full-size spare tires in the past five years. Today, nearly a full quarter of all new 2011 models employ repair kits or run-flat tires instead of traditional spares. While the other ¾ of passenger cars and light trucks on the road may still have an emergency spare tire, more automakers have been experimenting with options like repair kits and run-flat tires, which can be driven for about 50 miles after they have been punctured.

Some auto makers are adding tire monitoring systems or skipping the issue entirely by focusing on increased roadside assistance to diminish spare-tire dependency altogether. This approach works well with younger drivers who would rather call for roadside assistance than change a tire themselves and comes at a time when automakers are already trying to reduce vehicle weight in order to boost fuel economy. Most U.S. automakers now sell vehicles equipped with a small temporary spare that can be driven up to 55 mph for short distance. The exception to this rule is Honda which still includes a full-size spare tire in all of its 2011 passenger vehicles.

Nissan Motor Co. determines whether or not a car will have a spare tire on a car-to-car basis, while most General Motors cars have standard repair kits. The GM kits can also be added to vehicles for an extra $100. Most repair kits today consist of a tire sealant and a small electric air compressor/pump. Although the repair kits were first introduced to save space and weight in high-performance cars, the reality for everyday drivers is that some tire repair companies won’t perform a permanent fix on a tire that’s been temporarily patched with the messy sealant and the sealant alone will not fix a severely torn tire at all. Research has shown that some drivers will not attempt to change a flat on their own at all and younger drivers that are more comfortable with technology and uncomfortable with changing a flat tire will at least use a repair kit.

In order to ease consumer’s worries about flat tires, some automakers are employing new technology like tire pressure monitoring systems to make drivers aware of slow leaks and the inclusion of roadside assistance packages within warranties. But the signs pointing toward the demise of the spare tire are on the horizon. The spare-less concept has already taken hold in those segments of the population that do not use their cars as a long-distance highway transportation and it might not be long until spares disappear completely.