Used Car Values,Lately A Boon For Auto Fin,May Level Off

BOSTON (Dow Jones)--A rise in used-car values this year that has bolstered the profits of auto lenders may be running out of gas.

In January, a 2006 model of a Ford Explorer XLT fetched $13,000 to $14,000 in an auction of used cars. Today, the going rate is about $16,500, according to one dealership.

It is this bump-up in value that helped Ford Motor Credit's bottom line Thursday, when its parent, auto maker Ford Motor Co. (F), reported second-quarter results.

Used cars are rising in value as budget-conscious U.S. consumers flock to them amid the economic slump. Also playing a part is a shortage of second-hand cars as more people opt to stick it out longer in their existing cars, instead of turning them in for costlier trade-ups.

But further gains in used-car prices are unlikely in the coming quarters. Ford Credit said Thursday it doesn't expect gains from lease residual values to continue to boost its earnings. Other auto lenders, such as GMAC Inc., which finances General Motors Co. (GM) and Chrysler Group LLC vehicles, will also likely to have such gains level off.

Used-vehicle "values should start to level off about now after their sharp run-off," said Tom Webb, chief economist at Manheim, the largest U.S. wholesale auction company that sells and buys used cars to and from dealers.

Values on used cars matter a great deal to auto-finance lenders, such as Ford Credit and GMAC. This is because, after leases expire, lenders take the vehicles back and sell them at used-car auctions, hoping to make a profit. Falling resale values last year forced lenders - saddled with inventories of thousands of these vehicles as they came off leases or were repossessed from owners unable to keep up with payments - to sell them at a loss.

This year, that pattern changed. Improvements in used-car values significantly contributed to Ford Credit's pretax profit of $646 million in the second quarter. For the year earlier, Ford Credit posted a pre-tax loss of $294 million.

Excluding one-time gains, Ford Motor Co. would have reported a loss of $424 million for the second quarter, showing that Ford Credit's contribution was significant.

Prices on used vehicles rose more than 12% in June from January, according to the Manheim Used Vehicle Value Index.

Lower fuel prices are also helping. Falling used-vehicle prices fueled by $4-a-gallon gasoline and a weakening economy were responsible for substantial red ink in lenders' books last year, forcing them to scale back or eliminate leasing altogether. GMAC took a $1.2 billion impairment charge on its operating lease portfolio last year. Rival Ford Credit took a $2.1 billion write-down in 2008 related to unprofitable lease deals.

"In the last six-seven months, prices on most used cars have probably gone up by $2,000 to $2,500 across the board," said David Roat, sales manager at the Liccardi Ford dealership in Watchung, N.J. "People's buying habits have changed. They are saying, 'Maybe I don't need to spend on a new car in this economy.'"

But those gains may be over now. One factor: Purchases of new autos may pick up with the advent of the government's "cash for clunkers" incentives.

Ford Credit said Thursday it expected earnings from the second half of the year to be lower.

Small Car Sales Rise As Kiwis Look For Ways To Keep Their Bills Down

Everyday Kiwi families are applying cost cutting measures to their motoring purchases and buying smaller cars according to figures released today by Turners Auctions.

The report on second-hand car sales from the country’s largest vehicle auctioneers reveals sales of cars less than 1.6 litres have increased 13% from the previous quarter ending March 2009. The increased demand for these smaller cars has ultimately resulted in increased prices.

“The average vehicle price in this category is up 5% or almost $300 to around $5,800 which is the highest it has been since January last year” says Todd Hunter Turners spokesperson.

Despite pressures on the weekly budget and a 4% increase in fuel costs over the last quarter, our love of large cars remains steady in the 3.0 litre plus category.

Sales of petrol-fuelled vehicles have dropped under the 90 per cent threshold where it had comfortably sat since the start of 2008. Diesel sales reached double digits for the first time, and now account for 11% of all cars sold.

Our love affair with the Holden Commodore continues and it takes out the top spot as favourite make and model for the fourth consecutive quarter while Toyota Corollas and Subaru Legacys battle it out for second and third as they have all year. The massive reduction in Japanese import vehicles will be contributing to the decline of the Legacy. Imports from Japan are down 54% June YTD.

The Toyota Hiace has rocketed up six places from 10th to fourth as business and particularly tradesmen quit stock, and leases are terminated early.

White and silver remain the most popular colours accounting for almost half (46.7 per cent) the second-hand vehicle cars sales as they have for the last 18 months.

Car-sharing schemes shift into overdrive

Car sharing schemes, in which several drivers share a vehicle owned by a separate business, are becoming an economical alternative to private car ownership in urban areas.

Yosuke Tsutsumi, 34, gave up his beloved BMW and joined a car sharing scheme in April. A self-confessed car lover with an A-grade racing license, he finally made the decision to leave his foreign car hobby for the future after discovering that he was spending over 100,000 yen a month on his vehicle. The car sharing station just a few minutes' walk away offered him a way of cutting that by two-thirds.

In the two months since joining, he's used the scheme around 10 times, for his band and so on.

"As a result, I'm taking the train more, and can enjoy drinking when I go out," he says.

Under the Road Transportation Law, car sharing schemes are similar to car rental, but are restricted to registered customers. According to the Eco-Mo Foundation -- the Foundation for Promoting Personal Mobility and Ecological Transportation -- the practice started in Europe in the late 80s, and now has around 650,000 users around the world, mostly in the U.S. and Europe. The highest rate of uptake is in Switzerland, where 1.1 percent of the total population -- about 85,000 people -- are registered users.

The first scheme in Japan began in 2002. Just 6,396 users were registered as of January, but the number of users doubled over the past year.

Industry leader ORIX Auto Corp. runs a fleet of 330 cars, with around 5,000 registered users. On registering, each one has to buy a smart card worth 6,730 yen, as well as pay a monthly charge of 2,980 yen. On top of this, users incur time and distance charges (190 yen per 15 minutes, and 14 yen per kilometer), which also covers insurance and gasoline used. Overall, it works out cheaper than a standard rental car for periods of less than five hours.

Users can book a car via their PC or mobile phone, and pick it up at their nearest car sharing station, located in parking lots and so on. The keys are left inside the vehicle, which is opened using the user's smart card, and time and distance data is reported automatically to a central data center, which charges the user's credit card.

Between April and May, the company finished establishing car sharing stations near all 29 Yamanote Line stations, and launched a PR campaign promoting accessibility between the train system and the scheme. Orix plans to target business customers next, hopefully creating a steady stream of bookings between weekday business users and private users on weekends.

Since January other businesses are also entering the market, including Car Sharing Japan Co. with their "careco" service, JR East Rental&Lease and second-hand car dealer Gulliver International. Parking lot operator Park24, which placed Mazda Car Rental Corp. under its umbrella, will create 1,000 car-sharing stations in five years.

As well as public schemes, some apartment management companies are starting to offer car sharing schemes. Yoshie Hara, 37, bought an apartment offering such a scheme in Tokyo's Higashimurayama. Private car ownership was costing her nearly 20,000 yen a month in parking fees alone; the apartment car scheme costs around 300 yen an hour in comparison, and total use for shopping and commuting costs just 6,000 yen or so in total.

Real estate management firm Ask Corp. plans to expand its fleet of cars in the Tokyo metropolitan area from 30 to 1,000 cars by next fiscal year. Tsuneo Imako, the driving force behind the plan, says: "We'd like apartment complex management unions that have problems with maintaining automated parking lots to consider introducing such a scheme."

"As well as controlling the number of cars on the road, it promotes a shift toward using public transport and bicycles, and so the government regards its as one of the measures to reduce carbon dioxide emissions," says the Eco-Mo Foundation. "The acceleration in uptake among large businesses, will make services more accessible."

Used Car Values,Lately A Boon For Auto Fin,May Level Off

BOSTON -(Dow Jones)- A rise in used-car values this year that has bolstered the profits of auto lenders may be running out of gas.

In January, a 2006 model of a Ford Explorer XLT fetched $13,000 to $14,000 in an auction of used cars. Today, the going rate is about $16,500, according to one dealership.

It is this bump-up in value that helped Ford Motor Credit's bottom line Thursday, when its parent, auto maker Ford Motor Co. (F), reported second- quarter results.

Used cars are rising in value as budget-conscious U.S. consumers flock to them amid the economic slump. Also playing a part is a shortage of second-hand cars as more people opt to stick it out longer in their existing cars, instead of turning them in for costlier trade-ups.

But further gains in used-car prices are unlikely in the coming quarters. Ford Credit said Thursday it doesn't expect gains from lease residual values to continue to boost its earnings. Other auto lenders, such as GMAC Inc., which finances General Motors Co. (GM) and Chrysler Group LLC vehicles, will also likely to have such gains level off.

Used-vehicle "values should start to level off about now after their sharp run-off," said Tom Webb, chief economist at Manheim, the largest U.S. wholesale auction company that sells and buys used cars to and from dealers.

Values on used cars matter a great deal to auto-finance lenders, such as Ford Credit and GMAC. This is because, after leases expire, lenders take the vehicles back and sell them at used-car auctions, hoping to make a profit. Falling resale values last year forced lenders - saddled with inventories of thousands of these vehicles as they came off leases or were repossessed from owners unable to keep up with payments - to sell them at a loss.

This year, that pattern changed. Improvements in used-car values significantly contributed to Ford Credit's pretax profit of $646 million in the second quarter. For the year earlier, Ford Credit posted a pre-tax loss of $294 million.

Excluding one-time gains, Ford Motor Co. would have reported a loss of $424 million for the second quarter, showing that Ford Credit's contribution was significant.

Prices on used vehicles rose more than 12% in June from January, according to the Manheim Used Vehicle Value Index.

Lower fuel prices are also helping. Falling used-vehicle prices fueled by $4- a-gallon gasoline and a weakening economy were responsible for substantial red ink in lenders' books last year, forcing them to scale back or eliminate leasing altogether. GMAC took a $1.2 billion impairment charge on its operating lease portfolio last year. Rival Ford Credit took a $2.1 billion write-down in 2008 related to unprofitable lease deals.

"In the last six-seven months, prices on most used cars have probably gone up by $2,000 to $2,500 across the board," said David Roat, sales manager at the Liccardi Ford dealership in Watchung, N.J. "People's buying habits have changed. They are saying, 'Maybe I don't need to spend on a new car in this economy.'"

But those gains may be over now. One factor: Purchases of new autos may pick up with the advent of the government's "cash for clunkers" incentives.

Santa Fe Ford Sells Used Cars in Gainesville FL Just Like the Good Old Days

"We do everything we possibly can to save our customers time and money. The enhanced customer experience and easy usability that our website provides is driving more business to my dealership than I could have ever imagined. The results that have come from my dynamic inventory being highly visible on Google searches are amazing. We are receiving fresh leads daily and after over 20 years in business I am now turning my inventory over as fast as I ever have, even when the economy was flourishing."

Greg Waitcus, VP Santa Fe Ford

Santa Fe Ford's custom ASP.net inventory is fully integrated with Facebook, Twitter, and many other social networking services. This is another way that Santa Fe Ford is taking extra care to make sure that sharing vehicles and vehicle searches is easy for all of their customers. The site also displays You Tube videos on vehicle details pages and incorporates a user friendly back end tool for the internet manager and other authorized users to update the site.

Randy Holt is the internet manager at Santa Fe Ford and can be seen starring in vehicle videos throughout the website.

"It's great, the Jorn and Price marketing system works flawlessly and is completely automated. Our inventory updates every night on its own and as far as the video goes, I just pop in the unique You Tube number into the back end tool and there it is on the site. The guys behind this system know what it's like to be on the front lines in the car business and it shows."

Randy Holt, Internet Manager, Santa Fe Ford

The rate that Santa Fe's website is converting website visitors into leads is astounding. Christian Jorn, President of Jorn and Price Marketing had this to say.

"We have put an amazing amount of research and development into the creation of our automotive websites. Web analytics data clearly shows that nearly every new visitor is immediately navigating directly to the dealer's new or pre-owned inventory. Our automotive web marketing system has been built for easy customer usability and high search engine rankings. Santa Fe Ford is an amazing example of the power of this system as a Google search for used Dodge Gainesville returns Santa Fe Ford's Dodge inventory on the first page of results, despite Santa Fe Ford being a franchised dealership located in Alachua. They enjoy the same high visibility for searches such as used Toyota Gainesville, used Honda Gainesville, used Nissan Gainesville, and most of the other makes in their pre-owned inventory."

Christian Jorn, President, JP Automotive Marketing

Jorn and Price Automotive Marketing offers effective internet web systems to franchise and independent automotive dealerships across the county. JP's complete automotive web system has been custom built on the powerful ASP.net 3.5 framework and represents a huge leap forward in the retail Automotive Marketing industry. Dealer principals looking to dominate their market in organic search results should contact Jorn and Price Marketing immediately as some areas are already protected by exclusivity agreements.

This article was written by Christian Jorn of Jorn and Price Marketing. Christian can be reached at (866) 319-4745 or through the website at http://JPAutomotiveMarketing.com

Russian car market to decline 50-60 pct in 2009 -PwC

MOSCOW, July 21 (Reuters) - The number of new and used cars sold in Russia plummeted 55 percent in the first half of 2009, and could end up falling 60 percent by the year's end if the state does not act fast, PricewaterhouseCoopers (PwC) said on Tuesday.

Previously forecast to become the largest in Europe this year, the Russian auto market is facing one of the worst years in its history. Its sum value has plunged 62 percent in the first half of this year to $12.8 billion, PwC said.

Heavy job losses and salary cuts have forced many Russians to delay auto purchases, while many banks have refused to give them affordable car loans due to the global credit drought.

'The negative effects of the global automotive crisis have been among the most serious for Russia,' saidStanley ( SXE - news - people ) Root, PwC's automotive analyst in Moscow. 'The development of the market will depend to a large extent on government efforts to revive it.'

The state has tried to boost auto lending by offering to compensate banks for lowering the price of their loans, but many analysts have said the incentives are too meagre to create a turnaround.

The decline in Russian car sales has contrasted with sales in fellow emerging market India, which has been growing for most of this year.

PwC said the 55 percent decline brought total sales to 743,000 cars for the first half of 2009, including 345,000 imported vehicles, 190,000 locally made foreign models, 200,000 Russian models and 8,000 used foreign models.

For the full year, total sales are expected to come to between 1.3 million and 1.6 million vehicles, a decline of between 50 percent and 60 percent on last year, PwC said.

In March Industry Minister Viktor Khristenko became the first senior official to predict a 2009 decline in sales of more than 60 percent, a forecast seen as pessimistic at the time.

But analysts and industry insiders, now including PwC, have gradually made their predictions more gloomy, making a 60 percent drop look more like a baseline scenario for this year.

In earlier data, the Association of European Businesses (AEB) said sales of new cars fell 49 percent in the first half, with Ford, Hyundai, Nissan ( NSANY - news - people ) and Toyota ( TM -news - people ) among the biggest losers.

Kuwaiti used car importers urged to meet regulations

Kuwait's Ministry of Commerce has stressed upon used vehicle importers to fulfil relevant regulations and decrees, primarily the ban on the import of five-year-old cars and equipment, KUNA has reported. Failure to meet used vehicle import conditions would result in denying cars access to the country and imposing demurrage charges and forced re-exporting, the ministry has said. However, antique vehicles and cars of politicians, diplomats, officials of international organizations and overseas students are exceptions, the ministry noted.

Saudi Arabia Autos Report Q1 2009 - Companies and Markets New Analysis

Saudi car sales growth is set to slump from 13.5% in 2008 to just 3.5% in 2009, as consumer confidence nose dives in the wake of the international financial crisis and the collapse of the country’s stock market, according to BMI’s latest Saudi Arabia Automotives Report.

The Saudi automotive market has tended to grow at a far slower rate than neighbouring

Gulf states, as Saudi consumers have not taken the same opportunities in terms of borrowing for new car purchases. As a result, the market has a larger proportion of lower cost cars than the UAE and the country imports a large number of used cars from neighbouring countries. This tendency to favour cash purchases will help partly insulate the market from the effects of the credit crunch, with cash transactions set to remain the majority of purchases over the near-term, compared with less than a third of purchases in the UAE. Even consumers who take out loans are unlikely to be adversely affected by the global financial crisis. The Saudi banking sector, like others in the Gulf, remains solidly capitalised – with around US$286bn worth of assets – and there was no significant downturn in lending in Q408.

The main risk factor comes from the Saudi stock market, where many consumers have invested money.

Having lost more than 57% in 2008, the Saudi bourse was the second-worst performing Gulf Cooperation Council (GCC) market behind Dubai. BMI has observed that slumps in the stock market have a significant impact on consumer confidence, with Saudi nationals delaying purchases of big ticket items such as cars. However, it is our long-held view that it will be the first of the region’s markets to recover.

Consequently, consumer confidence will return quickly as soon as the market regains value.

The Saudi currency peg to the US dollar will mean that, in the near term, cars manufactured in Europe will become cheaper as the US dollar appreciates. Even before the decline of the euro’s value, European producers had strengthened their position on the Saudi market. This trend is likely to continue due to the downward pressure on the euro. It will also reduce inflation throughout the economy, helping to keep the cost of living down and shoring up consumer spending.

BMI estimates that the Saudi automotive market grew 13.5% y-o-y to over 590,000 units, which is lower than the 14.1% forecast in our previous quarterly report, with sales growth negatively impacted by the falls in the stock market. Growth is set to decline to 3.5% in 2009 as the market comes under pressure as a result of a lower economic growth rate and a slowdown in spending. Nevertheless, the rest of the forecast period is set to see annual growth rates averaging 9.6%, reaching over 880,000 units by 2013, a rise of almost 50% over 2008.

Saudi Arabia scores 54.3 points (out of a theoretical maximum of 100) in the BMI Automotive Business Environment Ratings this quarter, down 3.1 points since the previous quarter due to the expected downturn in the automotive market. This puts it 0.3 points ahead of Kuwait and 2.3 points behind South Africa. As a result of the decline in its score, Saudi Arabia’s rank has fallen from third to fourth place.

Aside from the forecast decline in the market, a lack of automotive production and stringent foreignownership laws weigh down Saudi Arabia’s score. On the upside, despite being the largest automotive market in the Gulf, it has the best penetration potential due to a low per-capita rate of vehicle ownership, partly due to the ban on women driving; the introduction of pending legislation allowing women to drive would help raise vehicle ownership significantly. Saudi Arabia’s score will also benefit if it establishes large-scale automotive production facilities.

Used Car Loans - Making Your Old Car Financing Affordable

Mainly young people and limited wage earner face difficulty in buying a new car for the reason sky rocketing prices of new cars. So they do not want to use their whole savings to buy just one high priced car. At such circumstances used car loan is best option for purchasing an older car. Because now a days used cars are as attractive as the new ones and so you can get used car loans at very competitive rates as the cars seized from defaulters are as good as new. There are many such used cars to be found that are just a year or two old. These cars possess more or less the same features as a new car. The various types of used car loan which can be found in the market are mentioned below.

Generally there are two types of used car loans one is secured and another is unsecured. In asecured used car loans you can get competitive interest rates. And any type of asset or bank paper containing certain value can be used as collateral for the used vehicle loan amounts. You can use the vehicle itself as collateral for a used vehicle financing. In secured car finance you can borrow up to the amount of equity in collateral.

Another is an unsecured used vehicle loan which is generally targeted for all those who are not willing to place collateral. An unsecured used vehicle loans carry’s no risk to assets since assets are not involved. The factors like your credit score, credit history, financial situation, employment proofs and income proof are taken into consideration when determining the interest rate of a unsecured used vehicle loan. Many lenders offer low interest used car loans. Regardless of your credit history, you can get approved for a low interest automobile loan as the financing based on your qualifications. As the online lenders have thousands of lenders in their network, so that gives you an opportunity to compare lenders deals which will helps you to find the best rates. Thus you can also select terms that give you the most favorable loan financing.

It’s a well known fact, that person with a good credit score is always offered with a great offer and competitive rates. But now a days lender also offer bad credit auto loans with the best rates on used car to individuals with poor credit. Unlike dealerships that offer excessive rates, the online lenders have a reputation for approving loans with fair rates. The objective is not to make profit out off someone’s misfortune, rather to help people to buy their dream car. Pre approved used car loan is one of the best options to get you the best deal on a used car loan by getting your finance deal done before you buy a car. Pre-approved loans gives you the most options on deciding how much you want to borrow and what rates to accept. Thus it gives you an edge when buying a car.

Another concept which is more popular among the auto loans field is refinancing. People end up getting high interest rate when they have bad credit but when their credit gets improved, they still end up paying high rates. At times refinancing used car loans can get car credit at low rate. Refinancing used car loans can immediately put an end to your monetary troubles that come with high interest car loans. Through used car loan refinancing you would able to obtain a new loan, including a lower rate of interest, in place of your current high interest rate loan.

Used car loans are very easy to get online by comparing various car loan quotes. Comparing online car loan quotes facilitate in obtaining the best auto loan in the market. So, don’t wait and go get yourself a used vehicle loan to get you the car of your dreams.

Your new question to yourself should be what type of car you want to buy; a new or used and upto how much value? As this do affect car loan rates. Used car loan rates are generally higher as compared to new car loan rates because if the car loan goes into default lender cannot recover the whole loss from the used car. In short, purchasing a low-priced used car at a higher loan rate can be same as to buying an expensive new car at a lower rate.

Buying a new car is still out of the means of some people, and so used car is a great way for people with limited finance to be able to get a car outright, and thus old car financing have greatly empowered people. Used cars are more economical and therefore many people prefer buying used car which is a smart financial decision. But many a times people find it difficult to finance their old car with financial institution like bank. The reason behind is the declination in the value of car and even if they get loan, they end up paying higher interest rates.

New car market down 60%, used car market three times bigger in June

New car registrations in Romania dropped by 59% to below 12,000 units in June this year, while the number of used car registrations almost tripled to over 17,000 during the period, as compared to June 2008, according to official data released on Tuesday.

Dacia remains the best sold car, with sales down from 7,600 to below 4,000 new units. Renault remains the best sold imported brand, but sales halved to about 950 units. The same happened to Volkswagen, while Opel reported an even sharper fall, of about 60%.

For used cars, new registrations upped 2.7 times to about 17,700 in June this year, given that June 2008 was one of the weakest months for used car registrations last year.

Style and technology refines an executive car

The 2010 Mitsubishi Galant SE makes its entrance in the Philippine market in the third week of July, loaded with stylish and high-tech features that refines the riding experience in an executive car.

One of the high-tech features is a fully functional Global Positioning Satellite (GPS) Navigation system that can direct you to your selected destination visually through Galant’s 7-inch in-dash monitor located in the center of the dashboard. The system is also capable of providing other helpful information such as streets, major buildings and establishment names, speed limit of certain street, etc.

Another new feature is the keyless entry security system with engine immobilizer. The original set of keys included in the car has a built-in transponder that sends a unique verification code to the ignition switch to protect itself from unauthorized duplicated keys. The remote transmitter can also be used for opening the trunk.

Spirited drivers will appreciate the tiptronic shifter on the steering wheel , which will allow him or her to control the shift lever through the plus and minus keys.

Mitsubishi Motors Philippines (MMPC) President and CEO Masahiko Ueki said: “The intro of the all-new Galant reinforces MMPC’s passenger car line-up and gives us the opportunity to improve further our total passenger car market share.”

This Euro-styled sedan measures 4,885 mm in length, 1,840 mm in width and 1,480 mm in height. Cabin room length is 1,997 mm, translating to more legroom for its passengers.

The front grille features a new design chrome radiator with the striking three-diamond mark. That face is enhanced by the shape of the high intensity discharge (HID) main lamps, which incidentally can be adjusted by the driver to provide a brilliant view of the road during night time driving. On the side, electronically controlled side mirrors (with power folding functions) have been integrated with side turning lamps.

Inside, the new Galant is all about comfort and luxury. Glove-soft black leather seats come with adjustments. The driver’s seat has an eight-way power-adjust with lumbar support; while the passenger seat has a four-way power-adjust.

Powering the Galant SE is a 2.4-liter MIVEC (Mitsubishi Innovative Valve Timing and Electronic Control System) engine. It can adjust the valve timing for optimal performance for all driving conditions. This enables it to produce higher torque at low rpm ranges for quick, clean starts and higher output in the high ranges for better passing ability.

The 4G69 MIVEC engine provides numerous advantages over its predecessors. Throughout its construction, Mitsubishi engineers have found ways to increase efficiency and durability while simultaneously reducing weight and emissions.

The power and efficiency of this 4G69 MIVEC is harnessed by Mitsubishi’s fully advanced and intelligent INVECS-II 4-speed automatic transmission with sportronic feature. This transmission studies the driver’s driving habits under a variety of conditions and uses two shift control programs to determine the best balance of power, control and efficiency.

Smooth ride and stable handling is provided by an all-wheel independent suspension system. McPherson struts with stabilizer bars up front and multi-link with stabilizer bars at the rear assures quick response to the driver’s commands, even when road conditions turn tricky, reducing understeer and improving cornering stability when powering through turns yet providing a refined luxury.

New design 10-spoke 17-inch wheels complemented with 215/55 R17 93V provides excellent grip on the road.

The new luxury sedan is also equipped with a full entertainment system which features an original equipment DVD/CD/MP3 FM & AM band audio system with Dolby Digital 5.1 feature. This Dolby Digital feature of the audio system is complemented by the 12-way speakers with 10-inch subwoofer and a center speaker.

On its safety aspect, the all new Galant SE is equipped with dual stage SRS airbags. A rearview camera plus front and reverse parking sensors makes parking maneuvers effortless and safer.

The 2010 Galant SE, now available in Merlin Black, Excalibur Silver and Nicolei Grey, will have an introductory price of P1,588,000.

USED CAR TEST: Sporty, classy, luxury

OUR used vehicle this week is one of the most beautiful and successful cabriolets ever built by Mercedes-Benz.

The classic design of the CLK is timeless and still very contemporary compared to its rivals. The CLK is more than just open top driving; it can be defined as luxury open top motoring. It combines a sporty and classy nature with ultimate luxury.

Our used test car for this week comes in the form of a 2008 Mercedes- Benz CLK 350 Roadster. This vehicle is not just about looks, but has the performance to match the design. With a mere 5800km on the clock, this vehicle is as good as new.

The soft top is easy to operate and by a single push of a button it folds away in no time. Wind noise is almost zero. The condition of the exterior is absolutely immaculate .

When entering the vehicle, it is clear that the company wanted to combine typical Mercedes luxury with a sporty character. There are brushed aluminum finishes and the seats, steering wheel and automatic gearlever are covered with dark grey leather. The second row of seats is close to class best.

The list of standard features is also very impressive. Everything from electrically adjustable memory seats, an on board computer, multi function steering wheel, park distance control and electronically adjustable steering wheel are part of the package. For safety there are dual front and curtain airbags, ABS brakes, traction control and electronic brakeforce distribution.

Model: 2008 Mercedes- Benz CLK 350

Price: R599900

Mileage: 5800km

Colour: White

Maintenance plan: 6- year/ 120000km warranty and service plan

Dealer: Contact Frikkie from McCarthy Mercedes Menlyn at 082 552 6010

ARTHCARE RENEWS VEHICLES TO MINIMISE EMISSIONS

the WA company that constructs, rescues and rebuilds urban landscapes, has recently renewed its truck fleet with a view to minimise emissions.

The urban and natural environments of today are inextricably linked. Stormwater catchments discharge into the rivers, weeds and pests from modified landscapes invade bushland, and street trees and parks become the only shelter for local wildlife. This process of urbanisation is familiar and strongly debated amongst policy makers, one company driving change at a grass roots level both at a local and regional scale is Earthcare located in Bibra Lake, Western Australia.

Entrusted by the public and the government to construct, rescue and rebuild the urban landscape, Earthcare operates below the carbon neutral threshold and owns subsidiary companies such as Earthcare Recycling and Earthcare Consulting.

Credited with numerous awards for projects such as the special needs children's playground at the Perth Zoo, Wellard Village, Faulkner Park and many more, Earthcare's operation includes community consultation, the sourcing and use of recycled materials, revegetation, public art, landscape construction and maintenance.

Earthcare operates above most environmental standards and does not mind paying a premium for investment in 'greener' equipment, according to Earthcare’s owner, Francis Burke.

"Obviously the environment is at the forefront of all policies at Earthcare and we take all aspects into consideration, ranging from the recycling of waste collected from clearing and building works to sourcing the least environmentally damaging materials for our projects and equipment," Mr Burke said.

Earthcare not only applies strict environmental controls on its own operations, but also scrutinises its suppliers.

"We recently decided to expand our fleet with an Isuzu NPR 200 Tradepack because of the truck's strong environmental credentials," Mr Burke said.

"With the introduction of the DPD (Diesel Particulate Diffuser), the Isuzu NPR 200 is one of the cleanest four tonne vehicles you can buy on the market – it exceeds the latest Australian and European emissions standards in terms of particulate matter".

Mr Burke said the environment was not the only feature that influenced Earthcare's purchase ofIsuzu trucks.

"Earthcare has used different Japanese manufactured trucks in the past and we have found the whole of life costing and maintenance of the Isuzu range much more viable," Mr Burke said.

"We changed our entire truck fleet to Isuzu in 2007, and the trucks' reliability and performance has been second to none."

Operating on private and government projects in Western Australia, Earthcare's Isuzu NQR 450, NQR 300 and NPR 200 Tradepack are specified in flatbed applications, whilst the FRR 500 is specified as a long bed tipper.

Earthcare has also noted that the power to weight ratio of the Isuzu trucks as an impressive feature.

"Our trucks usually pull large dual axle trailers as well as carrying bobcats and other equipment and our drivers have found the SiTEC engines to be very efficient and powerful," Mr Burke said.

Due to the nature of our business, our trucks have reasonably high engine hours with low kilometres and do a lot of low speed work on jobs such as verge mulching, planting and so forth".

Currently, Earthcare's Isuzu trucks drive around 30,000 to 40,000 kilometres a year and are serviced exclusively by Earthcare's Isuzu dealer. In a bid to further reduce its mechanised equipments' emissions, Earthcare has undertaken a gas fleet renewal program for its smaller vehicles.

INDUSTRY NEWS: Scania introduces used parts solution

PARTS and components make up a substantial share of the maintenance costs of any vehicle — even more so in a heavy commercial unit. When most, if not all, of these items are imported, as is usually the case, the costs can become prohibitive to small and medium operators.

Scania Southern Africa has introduced an approved used parts programme into its dealer network that piggybacks on its already well established parts delivery operation. Clifford Marchbank, national service director for the company, says the new Scania Approved Parts operation will provide a range of refurbished used bolt- on parts and components to customers at roughly half the price of new equivalents.

“Components are sourced largely from our stocks of unsold used Scania trucks,” says Marchbank. “Selection of parts for refurbishment is based on historical demand. We can offer customers a range of small to large components, from alternators, turbos, compressors and radiators to cabs, diffs, engines and gearboxes.”

Every used component is thoroughly checked to ensure perfect operational condition, essentially giving it a second life. All approved parts are available through any Scania dealer in Southern Africa via the Scania Online Service Network. This is a computerised online link which enables any Scania dealer from Cape Town to Tanzania to source customer information such as warranty and maintenance contract details, and order new or used parts from a central parts warehouse in Denver, Johannesburg that holds stock worth more than R40m .

If a part is ordered before 13:00, it will be delivered by overnight courier to a customer the following day. In the unlikely event a new or used part is not in stock, it is flown out from Sweden and delivered to the customer within seven days.

Scania’s new and approved used parts distribution operation ties in seamlessly with the company’s toll-free call centre. Also based at Denver, the call centre is manned 24 hours a day by qualified personnel who can handle calls from customers and drivers. If a driver is stuck on the road, the operator can try to fix the problem over the phone by getting a diagnosis from the driver.

If the problem cannot be solved over the phone, the operator co-ordinates a breakdown reaction, either dispatching a Scania mobile technician or initiating a tow recovery to the nearest Scania dealer workshop. There, the technicians can access the online network for the vehicle’s service history, warranty status and maintenance contract details.

“Besides new Scania trucks and parts, Scania Southern Africa can now also offer approved used trucks and approved used parts, with warranties, at significantly reduced prices,” adds Marchbank.

Used car dealer launches RAC inspected programme

Whilst car buyers continue to demand the best possible deals, one car retailer is making sure it’s not at the expense of quality.

SwitchCar.co.uk now provides an RAC inspection on every car. So customers can be sure that one of motoring’s most respected bodies has independently inspected their choice of vehicle.

“We already offer some of the lowest prices around” said Jon Cleaver, General Manager. “By providing an RAC inspection as part of the deal, our customers can rest assured they’re getting great quality too. If the RAC inspector highlights anything to us, we simply rectify the problem or refund the reservation fee in full.”

Customers receive a copy of the RAC report once the car has been reserved and when they come to view and test drive, so they have an expert analysis of the vehicle’s condition at their fingertips.

By doing away with showrooms and commissioned sales staff, SwitchCar.co.uk is able to pass on the savings as a discount across a wide range of previously owned nearly new and used cars. Specialising in a range of manufacturers such as Audi, BMW, Ford, Volkswagen, Vauxhall, Lexus and Mercedes, the company enables car buyers to get more for their money by shopping online.

With over forty photographs of every car on the website, visitors can examine the car in all its detail before reserving it online. After a test drive, buyers are able to drive away the car the same day, safe in the knowledge that they have a complete money back guarantee.

Used Audis Hold Value

AUDIS now hold more of their value over three years than either BMW or Mercedes, so don't expect to find a recent one with average miles at a bargain price.

There is a bewildering line-up of engines, gearboxes and trim so it's a good idea to do some homework before you look.

Petrol engines in the A4 from 2005 to 2008 ranged from 1.6 100bhp through 1.8 turbo 160bhp, to 2.0, 2.4 and 3.2-litre with around 252bhp.

And turbo diesels go up from a 1.9 with 113bhp through 2.0, 2.5 and 2.7-litre models to a 3.0-litre with 229.

All are very well built and have great driver appeal with good to superb performance across the range. Front space is excellent but legroom is a little tight in the back.

The 1.6 is not particularly quick, but the 1.8's are better and the others better still. All have a long travel clutch in manual form, and many will have the optional tiptronic or multitronic CVT automatic gearboxes, which are both very good.

Interior

Seats are fairly firm in the German way, but have excellent adjustment and the steering columns adjust for height and reach.

There's room for four adults and their luggage to travel in comfort, but five is a squeeze and lower order cars lack equipment unless extras have been added.

FAST FACTS

Audi A4 1.8 T

Price: Pay £7,800 for an '05 54-reg, £10,200 for an '06 06-reg multitronic auto, £12,400 for an '07 57 manual

Mechanical: 160bhp, 1,781cc, 4cyl petrol engine driving front wheels via 5-speed manual gearbox

Max speed: 141mph

0-62mph: 8.3 seconds

Combined mpg: 34

Insurance group: 14

CO2 emissions: 197g/km

Marks: 9/10

Main rival: BMW 3 series, Ford Mondeo

Cheat Depreciation, Buy A Used BMW

The car sales industry has obviously been affected by the economic downturn and dealerships have had to introduce more discounts than normal in an attempt to boost sales, whilst the Government have introduced the scrappage scheme whereby a car that is 10 years old or more can be scrapped in return for a £2,000 discount off a brand new vehicle.

This has received much criticism from many in the motoring industry but early signs suggest that the scheme could be a relative success. The main criticisms are surrounding the fact that discount is limited to brand new cars as opposed to including year old used cars as well, as they have done in Germany.

The problem is, even with the scrappage discount a brand new car is still an expense that many people cannot afford during these uncertain economic times, so I believe the trick is to buy used, but not too used!

Your best bet is to look for brands that are sought after and therefore easy to sell on in a couple of years time and that depreciate at a slower pace than most, and for that read:used BMW.

Why buy brand new when a used BMW with less than 15,000 miles on the clock can be yours for two thirds of the price? I understand that many people are wary of purchasing a second hand car but with many authorised used BMW dealerships throughout the UK, you can make a purchase with the peace of mind of a warranty and that the vehicle has been fully checked by BMW engineers.

And of course, warranties are passed over so when buying a one year old used BMW that was originally purchased with a three year warranty, you would receive the further two years left on the warranty as the new owner.

With the recession looking to continue to 2010 and beyond, car buyers will be opting for used cars that hold their value and as a result used BMW’s are being snapped up quicker than ever, especially as fewer are out on the m,arket at present as less people are upgrading their vehicles at the current time.

The Government car scrappage scheme is aiming to change that, and for the entry level run around car, it will no doubt prove a success – two grand off a £7,000 car represents a great saving, but for a more prestige car a £2,000 discount will probably not prove a deal breaker.

BMW used cars division showing steady growth

As the credit crunch continues to bite, figures show an increasing number of drivers are turning to used cars as a way to cut costs. In fact, BMW's used car programme, BMW Premium Selection (BPS), has grown by 130 per cent in Bahrain alone in the first quarter of 2009 and across the Middle East figures are continuing to rise showing a 59 per cent increase on 2008. The BPS programme is relatively new at just two-and-a-half-years old and is part of BMW's commitment to quality. The advantage of buying a car from the BPS programme is the owner receives a one year guarantee and the car has to pass the most stringent tests to be part of the programme. James Crichton, above, sales and marketing director, BMW Group Middle East said: "BMW Premium Selection operates as a sub-brand within BMW Group which must follow set criteria including: * Vehicles must be less than five years old. * Mileage under 100,000 km. * Serviced by authorised BMW importers. * Vehicles must pass a stringent 75-point technical check by trained BMW technicians before they are accepted into the programme and sold. "A 12-month service and engine warranty with road side assistance is given to each customer when purchasing a BMW Premium Selection vehicle." On the effect of the economic climate on used car sales, he added: "Certainly we are seeing consumer attitudes begin to shift in line with the value cycle as many people are keen to make their money work harder. "Second-hand goods that will see high demand will be those that consumers can easily identify as affordable but also offer a level of quality that justifies the outlay." However, he added that used sales were not expected to outstrip those of new cars.