Happy February, Birthday, Anniversary,
Valentine's Day...
Dear <<First Name>>
Welcome to 2018! It’s hard to believe we have 11 months left already. The auto industry is in flux, coming off a record-breaking year of annual sales exceeding 17 million. The technology is changing so fast while auto loan terms are getting longer and rates are going up. What bodes for the you and your transportation needs going forward? Let’s look into the MyCarlady crystal ball for 2018.
Interest rate increases spell the end of 0%
The automotive banks have gleaned a lesson from the manufacturing side and now project their loan portfolios with the calculations of production and lease-end terminations. Therefore, you can expect to see top tier credit loans starting at 3.25% for 60-72 months and 4.50% for 84 and 96 month loans. Yup, I said it, dealers are already pitching 84 and 96 month loans for cars over $70k. I would be remiss if I didn’t caution those considering these loans, that paying them off early is the only way to keep from being upside-down (owing more than the car is worth) at 3.5 years, as the car becomes obsolete. Obsolete? Yes, in the framework of the latest safety technology now being mandated by the government: i.e. back-up cameras (2018), Collison-control and auto-braking (2020).
“Planned Trading Programs”
A good alternative to the extended loan program is “Planned Trading Programs” aka: New and Used car leasing. Since many drivers will face situations requiring a change in vehicle within five years, those with decent credit (600 or higher credit scores) should consider this as an option. What we have learned in the automotive industry is the cycles of vehicle trading mimic leasing, which puts the burden of cost of ownership on the lender and the buyer. Not all banks offer USED CAR leasing, but you will be hearing more about it as it sweeps the nation... Lease a CRUZE for $146 a month with 1,000 down! Locally Sahara Chrysler/Jeep/Dodge/Ram, United Nissan, Findlay Acura, and Findlay Honda Henderson are the first to offer these programs on select vehicles. United Nissan has a 2.5 Altima for $225.00 with 1000 down for 24 months! This is great for teen drivers going off to college in 2 years, drivers in transition and those needing basic transportation vehicles for a limited time. Watch more dealers jump on-board this platform as it makes more sense for the consumer. Lower payment, shorter term and less money down. GAP protection is included. Service contracts are often included in the payment. You can trade in a car, (even with negative equity), and get out of a lease earlier than a loan. Using the Planned trading cycle theory makes sense for most drivers where the autonomous safety features become standard as we race to the future. Look for a time in the not so distant future when we program our navigation for the days travel and let the car do the work!
What’s the hot new car on the market?
Sports-Car lovers: Check out the KIA Stinger, featured in a Super Bowl ad starring Steve Tyler. Starting in the $45k range, the AWD GT2 ($55k) sport sedan is the one to buy/lease. Fast and luxurious, the handling is amazing, especially in our sometimes-drizzly weather.
Suv lovers... If you want something more upscale, Maserati and Bentley have new luxury sport sedans to rival the Porsche Cayenne and Jaguar F-Pace. Ask about their maintenance packages before committing, as oil changes can run $200.00 a pop.
TRUCK-lovers are going to have to wait for the new Ford RANGER mini-truck, as it is not scheduled until 2019. In the meantime, the Chevy Colorado is a solid option for those not willing to pay the extra freight for the Nissan Frontier or Toyota Tacoma. Sad to say the cost of these smaller versions are almost the price of a full size half ton, which is why the manufacturers dropped them several years ago. However, as hybrid technology and gas prices remain low, demand is still there for the niche market not willing to be pushed into an SUV or full size with a 5’.5” bed.
HYBRID-ELECTRIC
Speaking of Hybrids, have you seen the new CLARITY by Honda? This is the New Honda Accord chassis with Plug-in hybrid technology, in a hatchback. The range is 47 on the pure electric and 42 gas-only for a combo range of 350/12 but a combo 42 mpg in city-driving combined. A solid luxury option over the Volt (which I own) and the Hyundai Ioniq, with more space for passengers and cargo. I would go for the Touring Edition with the nicer features, options and trim, albeit you are in the $42k range. However, if you are eligible for the (up to) $7500 tax credit, it helps bring it back into the range of the regular Accord Touring without the gas savings. The only thing I didn’t like about the Clarity is the funky panel over the rear-wheels. IMHO all plug-in hybrids should have a gas tank option of no less than 12 gal. so you don’t have to be plug-in stranded or forced to rent a car/fly to take a trip.
 
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TAX TIME! If you need a new TAX PERSON to help you save money and keep you out of jail (just joking), call NORMAN at JFR Consulting. He gives you great advice to help you save $$$ (shameless plug). You can make an appointment for days, evenings or Saturdays! Bring last years’ return and let him check it out for possible found money! (Disclosure: Norman is my better half. He will give you a discount if you mention my name!)
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INSURANCE UPDATE!!!
New Insurance laws coming in July, be ready!
Effective July 1, 2018, the minimum insurance limits will increase to 25/50/20 ($25,000 per person/$50,000 per accident for bodily injury liability and $20,000 for property damage liability). Currently the state law requires a driver to carry 15/30/10 ($15,000 per person/$30,000 per accident for bodily injury liability and $10,000 for property damage). Nevada was one of only 6 states remaining that offered such low limits (1 state allows for lower limits.) The vast majority of states require drivers to carry at least 25/50/25 limits. Check with your Insurance agent to determine how this will affect you! If you would like to shop your rates, call Chris Sutter at Horizon Lights for a free comparison: 702-840-1100.
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