A Good Time To Get Rid Of Your Used Car

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Shortages in supply and increases in demand have made that fuel efficient used car sitting in your driveway a good investment. Car dealers looking to get their hands on well maintained used cars, especially fuel efficient ones, are willing to pay good money for it. The earthquake and tsunami in Japan continue to affect the supply of compact and hybrid cars, low car sales in 2008-2009, and automobile owners keeping their cars longer have also contributed to the lack of inventory. While the Toyota Prius seems to be the most sought after used car, a 2008 Honda Civic Lx price has increased by $2,000 since January, a 2010 Chevrolet Aveo Ls, by over $3,000, and a 2008 Ford Focus is worth about two thirds of its original sticker price .

WSJ’s Joe White explains in the above video how your can get the best deal when selling your used car.

Volvo Recalls S60 For Fuel Issues

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Volvo has announced a recall that will affect some 2012 S60 passenger cars manufactured between November 2010 to May 2011. The fuel pump software may not be compatible with the installed fuel pump resulting in insufficient fuel transfer in the pump unit. Volvo S60 owners may notice engine hesitation and possible stalling under certain driving conditions. Owner wanting more information about this recall can contact Volvo at 1-201-768-7300.

In 2009 Volvo has issued recalls for their 2010 XC60, 2009-2010 XC70, and 2008-2010 S80 models for similar problem with the fuel pump and the fuel pump software.

Toyota Sienna And Venza Vehicles Recalled

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Toyota has announced that they will be recalling certain 2011 Venza crossover and 2011 Sienna minivans manufactured between March 07, 2011 to March 10, 2011. These vehicles may have been installed with a front right drive shaft that was not properly heat treated. The improperly manufactured shaft could break while driving leaving the driver stranded and increasing the chance of an accident. Toyota will begin notifying affected customers starting mid June. For more information contact Toyota at 1-800-331-4331. The recall is expected to have effected only about 38 vehicles sold in the United States and Canada.

Chevy Volt Tax Incentives Not Guaranteed

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With the price of fuel on a steady rise, consumers have turned to environmentally friendly hybrid and electric vehicles. The demand for these vehicles is leading to shortages throughout the United States and have resulted in dealership markups, some over $20,000 above the suggested retail price. Government incentives allow a $7,500 tax credit on these vehicles, but consumers may be surprised to find that some Chevrolet Volts found on dealership lots are being sold as “used” and no longer qualify..

A report in the National Legal and Policy Center (NLPC), say that some Chevrolet dealers are selling hybrid cars to other dealerships who are claiming the tax credits for themselves. Mark Modica, and investigator for the watchdog group, claimed that one Chicago Chevrolet dealer was selling a used Volt with only 10 miles on it. GM spokesman, Robert Peterson, says that while they do not encourage these transactions between dealerships, there is nothing GM or regulators can do about it. He does not believe that these transactions are done for the sole purpose of claiming the government tax credit, but are dealerships who are ineligible to sell the new Volts, trying to get these cars for their showrooms. He encourages dealers’ to have patience as the Chevy Volt rolls out nationwide. GM expects to produce only about 10,000 Volts this year, but hopes to increase production to 45,000 in 2012.

Tesla Releases 5.3 Million Additional Shares

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Tesla Motors Inc. has announced that they will be releasing another 5.3 million shares in a secondary public stock offering of $28.76 per share. These shares will be in addition to a private sale of 1.4 million to Elon Musk, CEO and co-founder of Tesla, plus an additional 637,475 shares to Blackstar Investco LLC, an affiliate of Daimler AG. The company hopes to raise about $211 million which will go towards developing their new SUV like vehicle, the Model X.

In June of 2010 when Tesla first went public, the sale was a big success. The stocks were estimated to sell at about $15 a share but ended going up to as high as $19. Just two days after the release, the stock shot up to almost double the first offering. Despite the huge success, the Tesla IPO soon lost it’s momentum.

Tesla is not expected to make a profit for another two years. They currently sell just one vehicle, the Roadster, a sporty electric car popular with the rich and famous. The first public stock offering has allowed them to develop a more affordable model, the Model S, which will be released to the public next year. The company is currently developing battery packs and chargers for Daimler and Toyota, and have been working with Toyota to develop an electric version to the RAV 4. Tesla shares currently remain steady around $27.00.

Alleged Unfair Dealings At Chrysler Grow

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A new dealership group know as “California Superstores” is buying up former Chrysler dealerships in California as a way to beat the high cost of real estate and rebuild Chrysler’s slow market in the United States. Complaints from existing Chrysler dealers say that the alliance between Chrysler and the New York Hedge fund is leading to an unfair advantage for existing dealerships. They have alleged that Chrysler is providing below market rent subsidies that have not been offered to them. Peter Welch, president of the California dealers association, said he is unfamiliar with the terms of the California Superstores venture, but has heard many concerns among existing Chrysler dealers.

California Superstores has already opened six stores in California, and plans to open eight more in areas where Chrysler has done poorly. The plan is to eventually open stores on the East Coast, according to Carlos Hoz de Vila, managing partner of California Superstores.

In an unrelated situation, the state dealers association has brought forward complaints against Chrysler, saying that they are operating an illegal factory owned store at Motor Village L.A. in downtown Los Angeles. The California New Motor Vehicle Board has asked the state Department of Motor Vehicles to investigate the complaint.

Chrysler has recently announced that they have paid back $7.5 billion in government loans allowing them to continued their integration with Fiat, a merger that has been in the making for almost two years now.

NHTSA Investigates Jeep Wranglers

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The National Highway Traffic Safety Administration (NHTSA) has opened an investigation into some 2007-2008 Jeep Wrangler vehicles after receiving almost 30 complaints of illuminated airbag warning lights. The investigation has lead the NHTSA to a defective clock spring wiring assembly that may prevent the airbag from deploying during an accident. The problem seems to be more prevalent in right hand drive Wranglers, but the NHTSA wants to investigate the problem further before issuing a recall. If the investigation should lead to a recall, about 220,000 Jeep Wranglers could be affected.

Toyota Recalls Prius Hybrid Vehicles

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The Toyota Motor Company has announced a recall for almost 52,000 2001-2003 Prius Hybrid vehicles in the United States to replace the electric power steering pinion shaft attachment nuts. The nuts securing the pinion shaft in the steering gear box assembly may become loose when the steering wheel is repeatedly and strongly turned to the full lock position. Eventually, the driver will notice that the steering wheel will become harder to turn when making a left hand turns. Owners receiving recall notices will be able to take their vehicle to their local dealership where technicians will replace the attachment nuts with an improved nut. For more information, Prius owners can contact the Toyota Customer Experience Center at 1-800-331-4331 or go to www.toyota.com/recall.