Donate a Car to Charity

There are several reasons why you should donate a car to charity, one being a sense of satisfaction and fulfillment in helping others. However, there are also more practical reasons, and here are just some of these that are worth considering.

A car donation is an easy way to get rid of your old car than trying to trade it in or sell it yourself. You have no advertising costs, and no extra phone bills. Nor are you waiting day after day to get your old car moved from your garage, and you don’t have to stay at home waiting for callers or potential buyers visiting to have a look at the vehicle.

Although these may seem spurious reasons for car donation at first glance, many people trying to sell their old cars report an increasing sense of frustration as time goes by and they still haven’t found a buyer. Some end up trying to sell it for scrap and find it costs them money to have it towed away.
This is not the case when you donate a car to charity.  The whole process can be over within 48 hours without it costing you a cent, and you even get it taken it away free.

Tax Deductions for Donating a Car to Charity

You will likely be eligible for a tax deduction if you donate a car to charity. The charity must be registered, and full details of what is required and how much you can claim are detailed in IRS Publication 4303. In many cases, you can get more money back in tax than the financial benefits of trying to sell the car yourself when you take advertising and insurance costs into consideration.
Basically, if the charity sells the car then you can claim the gross amount of the sale in your tax return. If the charity decides to use the car or repair/improve it before using it, you can claim the fair market value of the car when donated – before the improvement. The same is true if the charity improves then sells the car – you can receive the fair market value of the vehicle when donated.
Everything you need to know about the procedures required when claiming tax for a donated vehicle is detailed in the above IRS Publication. The charity you choose will also give you advice and help regarding this.

Promotional Benefits for Donating a Car to Charity

Some charities will offer a non-cash benefit for donating your car. These are generally promotional benefits that do not cost the charity money, but are used by businesses such as hotel chains and travel firms to promote their business.

Among such offerings are travel vouchers that allow you free travel or travel at discount prices and vacation vouchers. These can offer you free hotel weekends, free cruises or other types of vacation. You may also be offered store discount vouchers – all of which are useful if you are able to use them.
Not all charities can offer such reward for donating your car, but that doesn’t mean you should not use them.  Some may have a commitment that appeals to you, while others may spend all their income on the charity and less on advertising and staff. You should be able to establish these figure if you have a need to, and simply asking them is usually sufficient.

Recap of Benefits

To recap, then, the main benefits you enjoy when you donate a car to charity are:

• Tax benefits:  you can reclaim the value of your car or the selling price in your tax return
• Simplicity: you can be rid of your old car free of charge without having to sell it or keep it taxed or insured.
• Save time:  you will avoid advertising costs and save time in having your old car taken away. You don’t have to wait at home for telephone calls or visits from potential buyers.
• Free towing: you don’t have to pay to have your old car towed away.
• No bureaucracy: save on the Department of Motor Vehicles paperwork needed if you transferred the car yourself. All that is taken care of for you.
• Feel Good:  you will feel good when you donate a car to charity – it is better to give than to receive.
• Helping Charity:  you will be helping the charity to do its work, whether it can use your car in its work or sell it to raise finance.

When you donate a car to charity rather than fix it up and try to sell it yourself or attempt to get somebody to give you money for taking it away as scrap (ha-ha!), you will be helping the millions of starving children in the world, all the autistic kids that need special education and those seeking cures for cancer, muscular dystrophy and MS among many other killer diseases.

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How to Donate a Car

If you need to know how to donate a car, then you have likely already made up your mind to donate your car to charity. The procedure for donating a car to charity is fairly simple, but there is slightly more involved if you want to claim the value of your car against tax.

If you are a tax payer, then it makes sense to donate your old car rather than just scrap it because you can claim it against tax. In fact, even if you decide to sell it you should consider your net profit from selling it against your net tax gain by donating it. This net profit could depend upon what the charity does with your car:  uses it or sells it.

You may be able to claim more in tax from your donation that you would get by selling it – the price an old car realizes when sold is almost always a good bit less than its market value. That difference might well make it worthwhile donating a car to charity rather than selling it. The main problem here is that you don’t know until you actually donate it or sell it, so you have a judgment to make.

In learning how to donate a car you will likely learn the benefit that your car could do for others. Perhaps that will be enough to sway you to the donation and see what happens, rather to selling it and seeing what happens. At least if things go badly with the amount you can set against your next tax return, you will always have the satisfaction of doing good for others. If the selling price goes badly you have no satisfaction at all.

You can also choose your own charity, so if you prefer one that helps disadvantaged children then you can donate your car to that. If you are religious, and would prefer to donate to your church, then you can also do that – or to an animal charity, environmental or any other you prefer.

How to Donate a Car: Choose Your Charity
When donating a car to charity first look around for a charity that suits you. You will find several online or you might have a favorite charity to which you could write or make a call. All that is required is that your charity is recognized and legally permitted to enable you to claim any donation against tax.

How to Donate a Car:  Make the Donation
When you make the donation, the charity will arrange everything for you. You will have forms to complete to transfer the ownership of the car, and then it will towed away free of charge. The charity must then provide a written acknowledgement of how it uses the car.

How the car is used makes a big difference to what you can claim in your tax return. For example, if the charity simply sells it as it is when you donated it, you can claim no more than the sum it sold for.  If they use it for themselves then you can claim its fair market value at the time it was donated. This is likely to be higher than the selling price, because old cars rarely sell for more than their market value!

If the charity enhance the car, such as giving it a respray, and then sells it, you can still only claim the fair market value at the time of donation. In this case, you cannot claim the selling price. There are several more rules regarding how much you can set against tax, although basically it is the fair market value of the car, unless they sell it unchanged, when it is the selling price.

How to Donate a Car: Claiming Your Tax Deduction
You should claim your tax deduction in Section A of your tax form 1040 (Gifts to Charity – Sections 16-19). The instructions with the form help you to do this. Although the charity must send you an acknowledgment of how the gift was used and any income received by selling the car, you need not include this with your tax return.  It may be needed if your return is questioned to prove your claim.

You must understand the amount you are entitled to claim. And knowing how to donate a car to charity is one thing, but just as important is knowing how you can claim against tax. If you use a rule of thumb that you can claim the fair market value of your vehicle at the time of donation unless it is sold unchanged, then you should be accurate.

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2014 Corvette Stingray Pricing Undercuts Porsche Cayman, Ford Mustang Shelby GT500

U.S. News and World Report

The 2014 Chevrolet Corvette Stingray coupe, which goes on sale in the third quarter of this year, will have a starting price of $51,995 that includes $995 in delivery charges, Chevrolet announced Friday in a press release. The Chevrolet Stingray Convertible will start at $56,995, which also includes delivery charges.
The Los Angeles Times reports, “Both models reflect a $1,400 increase over the outgoing Corvette. That extra money buys you a lot of changes, not the least of which is the controversial styling.” The styling the Los Angeles Times is referring to is the new, angled taillights over the outgoing, round lights. Through this change, the newspaper says that Chevrolet is trying to appeal to a more international audience and younger car shoppers.
The 2014 Chevrolet Corvette Stingray is priced significantly less than the Nissan GT-R and Audi R8, and slightly less than the Porsche Cayman. The Washington Post calls it a “bargain” compared to the Porsche 911 Carrera S that makes 400 horsepower with a six-cylinder engine and has a starting price of $98,900. The Porsche Boxster is priced closer to the Corvette Stingray at $50,400, but its six-cylinder engine only produces 265 horsepower. The new Corvette Stingray is also commonly compared to the 2014 Ford Mustang’s performance model, the Shelby GT500, which starts at $54,650.
According to USA Today, the Corvette Stingray continues to be an affordable car for its segment.
Standard features on the 2014 Corvette Stingray include: a 6.2-liter V8 engine that produces an estimated 450 horsepower, a seven-speed manual transmission with rev matching, eight-way power-adjustable seats, a carbon fiber hood, a carbon fiber removable roof panel (coupe only), an 8-inch infotainment screen, a rearview camera, a Bose nine-speaker audio system with satellite radio, Bluetooth, an auxiliary input and a USB port and keyless entry with push-button start. The 2014 Corvette Stingray can be optioned to a price of more than $73,000.

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Infiniti M Named IIHS Top Safety Pick

2013 Infiniti M. Photo courtesy of Infiniti.

The 2013 Infiniti M sedan, which includes the M37 and M56 models, has been named a Top Safety Pick by the Insurance Institute for Highway Safety (IIHS). This means that it received a score of “good” in side, rollover, rear and moderate front overlap tests.
In a press release, Infiniti says that in addition to being a Top Safety Pick, the Infiniti M is available with a number of crash avoidance technologies, including lane departure warning and prevention, blind spot warning and intervention, brake assist and forward collision warning. These optional features are not related to the M’s Top Safety Pick designation, nor to its five-star safety rating by the National Highway Traffic Safety Administration.
The IIHS website details that the Top Safety Pick rating applies only to the M37 and M56, and does not include the M56x and M-Hybrid models.

2013 Infiniti M. Photo courtesy of Infiniti.

Left Lane News points out “that the Infiniti M didn't receive the IIHS' highest “Top Safety Pick+” designation.” In order to earn the Top Safety Pick+ accolade, a car must also undergo a small front overlap test, receive ratings of “good” in four of the five tests conducted and no less than an “acceptable” rating in the fifth test. This is due to the M not being put through the test, rather than the car not passing the test.
Other luxury large cars that are Top Safety Picks include the Cadillac CTS and XTS sedans, BMW 5-Series, Audi A6, Mercedes-Benz E-Class, Lexus GS, Hyundai Equus and Genesis, Volvo S80 and Lincoln MKS.
For 2014, the Infiniti M will be renamed the Infiniti Q70 as part of Infiniti’s new naming strategy. The 2013 Infiniti M starts at $48,700.

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Chevrolet Spark EV Earns Better MPGe Rating than Honda Fit EV, Fiat 500e and Mitsubishi i-MiEV

U.S. News and World Report

The 2014 Chevrolet Spark EV has earned a 119 mpg-equivalent combined city/highway fuel economy rating from the EPA, Chevrolet says in a statement. The subcompact Spark EV is expected to travel 82 miles on a fully-charged battery.
The Spark EV edges out the 2013 Honda Fit EV, which has a 118 combined mpg-e rating, the 2013 Fiat 500e’s 116 mpg-e and the 2013 Mitsubishi i-MiEV’s 112 mpg-e, but is beaten by the 2013 Scion iQ EV’s 121 mpg-e.

Photo courtesy of Chevrolet.

Miles per gallon-equivalent of an electric vehicle is the comparable measurement of fuel economy to a gas-only vehicle. An electric vehicle’s range is how far it can drive on a fully-charged battery.
The Detroit Free Press reports that the Spark EV can go “seven miles farther than the Nissan Leaf.” The publication also says the all-electric Nissan Leaf has a 115 combined mpg-e rating.
Chevrolet says, “Spark EV will be the first vehicle on the market to offer as an available option the recently approved SAE combo charger for DC Fast Charging. The capability, available shortly after launch, will enable the Spark EV to recharge up to 80 percent of its capacity in approximately 20 minutes.” Chevy also says the Spark EV can be recharged through a 240-volt outlet in less than seven hours, or a 120-volt outlet, though Chevrolet did not specify how long it would take to recharge using the standard 120-volt outlet.

U.S. News and World Report

The 2014 Spark EV will come to dealerships in California and Oregon starting this summer. Chevrolet says it will have a base price of less than $25,000, which includes tax incentives.

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NHTSA Releases New Guidelines to Combat Distracted Driving

Photo courtesy of Getty Images.

The National Highway Traffic Safety Administration released voluntary guidelines Tuesday to help automakers minimize the risk of distracted driving. The new guidelines are designed to reduce distractions created by technology that’s built into vehicles, such as navigation and infotainment systems.
“Distracted driving is a deadly epidemic that has devastating consequences on our nation's roadways," says U.S. Transportation Secretary Ray LaHood in a press release. "These guidelines recognize that today's drivers appreciate technology, while providing automakers with a way to balance the innovation consumers want with the safety we all need."
NHTSA suggests that in-car tech features should only require a driver to take his or her eyes off the road for two seconds at a time, and a maximum of 12 seconds per task. Additionally, certain vehicle functions should be disabled unless the car is stopped and in park, which include:

• Manual text entry for the purposes of text messaging and Internet browsing
• Video-based entertainment and communications like video phoning or video conferencing
• Display of certain types of text, including text messages, web pages and  social media content

NHTSA came up with its new guidelines after it conducted a study, which “showed that visual-manual tasks associated with hand-held phones and other portable devices increased the risk of getting into a crash by three times.” The greatest distractions include sending text messages, browsing and dialing phone numbers. Sending a text message takes a driver’s eyes off the road for an average of 23.3 seconds, which doubles the danger of a crash or near-crash. The study also suggests that activities like dialing a phone number, searching a phone’s contact list and reaching for a cell phone triples the risk of a collision.
Many automakers already lock drivers out of some settings when a vehicle is in motion. USA Today reports that Honda navigation systems have not allowed drivers to enter addresses if the vehicle is in motion since 2012. However, that’s not the case with every automaker. “BMW encourages voice activation and doesn't allow video displays while a car is moving, but does allow manual inputs.” USA Today reports that Tesla also allows drivers to make adjustments by hand, but that software updates have made “more use of controls on steering wheels, which are considered less distracting than buttons on navigation screens.”

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Ford Profits and Transaction Prices Rise in Q1

Ford will report its first quarter earnings tomorrow and analysts are expecting strong profits. While that's good news for Ford, many consumers can expect to pay more for a new Ford, as those profits come in part from increasing transaction prices.

Photo courtesy of Ford

The Detroit Free Press says that analysts are predicting that Ford profits for the first quarter of 2013 will be more than the $1.4 billion profit Ford posted in the first quarter of 2012. The paper says that any profits will be in spite of poor performance in Europe, where the lingering financial crisis has hurt sales.
In North America, however, sales are strong. Kelley Blue Book Senior Analyst Alec Gutierrez says, "Ford is expected to announce solid quarterly earnings in North America thanks to an 11 percent annual increase in domestic sales coupled with steady transaction prices." He adds that Ford’s market share in the U.S. has increased to 16 percent.
Jalopnik credits Ford's strong U.S. sales to one thing: "Product. Product. Product." The site writes, "The new Focus and Fusion are standouts, as well as the Escape and the ever popular Fiesta. There's no single product in their lineup that isn't at least competitive and quite a few are among the best in their segment."
Ford won the most U.S. News Best Car for the Money Awards of any brand, taking home awards in six of 19 categories. Ford also won two U.S. News Best Cars for Families awards.
The quality of Ford models coupled with increasing new-car demand in the U.S. has led to increases in the prices consumers pay for Fords. Kelley Blue Book reports that though transaction prices for Ford as a brand are down .8 percent in the first quarter of 2013 compared with the first quarter of 2012, transaction prices for the most popular Ford models are increasing. In the first quarter of 2013, the Ford Fusion, Escape and Explorer had transaction prices 1.6 to 7.3 percent higher than the first quarter of 2012. Ford sales are up 12.4 percent overall compared with 2012, according to Kelley Blue Book.
The good news for Ford may make it harder for consumers to get a new Ford at a discount. To get the best price you can, check out this month's best Ford deals. You can also use the U.S. News Best Price Program to find the best local prices in your area on a new Ford vehicle.

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Charity Car Auction

Unless you’re in the business, knowing exactly how a charity car auction works is nothing short of a mystery. Now in reality, if you’re going to donate your car you’re not concerned with anything else but getting your tax deduction and getting it now. But, just in case you do, keep reading!

The sole purpose of a charity car auction is to raise funds for the actual charity of your choice. How this got started was that charities had to find ways to keep the funds coming in to continue their good hearted work but to also do it in a way that wouldn’t cost them a lot of money either.

If you look at it in the big picture there are three persons involved in this being you, the charity, and the buyer. For you, you’re looking at a way to either clean up your yard, get rid of a headache, or get a much needed tax deduction. The charity that you chose, needs operating monies. With the money made from the auction of your car, truck, boat, etc., it goes straight to your charity. The actual buyer, he just gets a good deal.

If you want more information, don’t be afraid to go to the charity in person and talk to them. Find out how much of the auction money do the receive from each donation and where it goes. Another good thing to know is actually how much money they get from the sale and that it’s not getting pocketed by the company that might be handling the auctions for the charity.

Sometimes the charity is like us, they don’t have the time to handle the auctions themselves or locally and contract it out to other companies. This company handles getting the tow truck to your vehicle and bringing it back. Then they clean it up and make it pretty and sometimes make small repairs but only if the repairs will help the resale value. After the vehicle is ready, they then handle all of the auction details. Again what you want to make sure is that these companies are actually getting more money from the sale then the charity is.

Becoming more and more popular are online car auctions for charities. Both the seller and buyer must register on this site and then you can fill out your necessary banking information. The starting price is put up based on the value of it and condition. Hopefully this helped clear the air for you on how a charity car auction works. If not please contact us with any questions and you can check out our tips (link) page as well. Wikipedia has a good article on how a charity car auction works as well.

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Cell Phone Use While Driving Could Cost You

Photo Courtesy of Ford Motor Company

Depending on the state you’re driving in, you could pay up to a $10,000 fine and spend a year in prison if caught using your cell phone while driving. According to a study released last Tuesday by Online Auto Insurance, “Texting while driving has become an epidemic in America that has led 39 states and the District of Columbia to ban all drivers from engaging in the practice.”
The strictest state, based on the Online Auto Insurance results, is Alaska where you can serve up to a year in jail and pay a fine up to $10,000. Utah has the second harshest penalty for drivers who use their cell phones while driving. In Utah, a driver caught texting can face a fine of $750 plus serve a 90-day sentence in prison.  Tweeting while driving through Maine will cost you between $250 and $500. Driving and checking Facebook in Wisconsin can cost you as much as as $400. In addition, you will have four demerit points tacked onto your license, which may lead your insurer to increase your payments. New York adds three points along with a fine of $235 to the driver’s license if caught reading a text while driving.
Virginia, Iowa, Indiana, Delaware and Pennsylvania are among the states that have the weakest penalties based on the Online Auto Insurance study. The fines there vary from $20 to $50, though local laws in these states could tack on penalties or higher fines. A complete list of penalties by state is located in the study results. If a driver gets into an accident or causes serious injury to anyone while using their phone and driving in any state, the maximum penalty increases and the driver can face felony charges.
In an interview with USA Today, John Ulczycki of the National Safety Council says, “Texting while driving is not just a teen problem. … You’re looking at around 10 million teen drivers, but about 180 million other adult drivers.”
The Huffington Post has found some apps available on smartphones to stop texting or looking at your cell phone while driving. DriveSafe.ly reads emails and text messages out loud so the driver doesn’t have to look at his/her phone, but they can still keep up-to-date on incoming messages. For those drivers who have a tendency to look at their phone when an alert goes off, the Huffington Post says Driveoff, iZUP and Textecution apps all lock the phone when it detects that the phone is moving more than 10 mph. It will also stop all incoming phone calls. Similar apps, like DriveMode and tXtBlocker, will identify when the phone is moving faster than 25 mph and automatically respond to incoming texts or calls with a standard message saying that the person is driving and they cannot respond right now.
Some of the apps mentioned require a purchase or monthly payment. If that is too much money for you or you don’t have a smartphone, the Huffington Post recommends putting your phone on airplane mode before driving. It will block incoming texts and emails until you turn off the mode on your phone.
In the end, ignoring incoming messages, sending text messages, surfing the web and looking on Facebook or Twitter while driving will not only help you avoid accidents, but it could also help you avoid a hefty fine.

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Car Donation Tips

When you’re looking at taking a step like this, it’s always best to have to some car donation tips to go by. We’ve come up with the most important ones here so be sure and print these out to help you when tracking items down.

Find the Title

If you want to donate your car to charity, you’ll need the title for it. If for some reason you can’t find it, it’s damaged beyond recognition, or if you just don’t want to look for it, you’ll need to contact your local DMV (Department of Motor Vehicles) to start the process of getting a duplicate title. Many of them will have the steps online to save yourself a wasted trip there to stand in line for hours. Some places will take your car donation without a title but only if it’s to be sold for parts or salvage.


Figure out your vehicle’s value:

You should always have an idea of how much your donation will be worth so as to not be taken advantage of. There are several place where you can check the value online but the best that we’ve seen and what most people go by is Kelly Blue Book (KBB). Be honest with yourself when grading the condition of your car so that you’re not setting yourself up for any grief it you and your charity don’t match on values. It’s sometimes to plan on a little lower expectations because most of the time cars are sold for less than the blue book value.

The donation is a tax deduction to let’s go over the categories:

1. If you car donation is of low value, you will always be able to claim a fair market value of up to $500.00 and no additional paperwork is required.

2. If your donation is worth more than $500.00, your deduction will be the amount that it sales for.
If you donate a car that is worth more then $500.00, your deduction will be limited to the actual sale price of your car donation.This means that you won’t really know the amount of your tax deduction until the car actually sales and sometimes it might be in your favor. Most charities will work hard to make sure that top dollar is gotten because it helps them out as well. So if you thought your car was worth $2,000.00 but it actually sales for $2,300.00 then that’s an extra $300.00 for your pocket.

If your car is in good running condition and considered a reliable mode of transportation, most of the time it would be used for the charity instead of them selling it for the cash. If this happens, then you can generally claim the car’s fair market value on your taxes.

Locate your choice of Charity

When you start the process of looking at local charities, be sure and ask them if they will provide a pickup service for your car or truck. This way you won’t have to worry about getting it there unless it’s in good running condition. Most charities will offer this as a free service.

Is the organization registered with the IRS as a nonprofit?

Before you hand over those keys you’ll want to make sure they are qualified as a 501(c)3  charity. This means they are a non profit and you can ask for proof of this. If you don’t verify they are registered with the IRS, you might be just giving your car away and not able to get a deduction. You can verify the organizations status by checking the IRS website by searching Publication 78. This is a list of approved organizations.

When determining your charity tax deduction, you need to remember that you can’t go with the standard deductions and that your tax return deductions must be itemized. If you’re not concerned with getting a tax deduction by donating your car then this isn’t a worry but if you do be sure and itemize your deductions. Sometimes it might be best to get professional help if you’re dealing with a large deduction amount.

The last thing to do is to gather up the IRS forms needed to claim your car donation tax deduction. If all of your charitable donations and non-cash items equal a value or more than $500 during the tax year, you’ll need to fill out the fax form 8283 and can be downloaded direction from the IRS. IRS form 8283

By following these car donation tips, you’ll be able to make this a much smoother process for both you and the charity that you want to help out.

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Chevy Cruze Diesel Hits 46 MPG Highway

2014 Chevrolet Cruze Diesel. Photo courtesy of Chevrolet.

Chevrolet announced yesterday that the upcoming diesel-powered 2014 Chevrolet Cruze achieves an EPA-estimated 46 mpg highway with a six-speed automatic transmission, and has a range of up to 700 miles per tank. The fuel economy information is not yet posted on the EPA’s website. The automaker says that the Cruze diesel has a starting price of $24,885 plus a $810 destination charge.
The Cruze diesel’s engine produces 148 horsepower and 258 pound-feet of torque. Chevy says that the Cruze diesel is equipped with an overboost function that can boost maximum torque to 280 pound-feet for short durations, such as accelerating onto a highway.
The gas powered 2013 Cruze Eco achieves 26/39 mpg city/highway with an automatic transmission or 28/42 mpg with a manual, according to the EPA. Maximum range per tank for the gas-powered Cruze Eco is 435 miles. A Cruze Eco with an automatic transmission starts at $20,875 before destination, which is $4,010 less than the Cruze diesel.
Car and Driver says that, on the surface, the Cruze diesel’s 46 mpg highway “is a laudable achievement,” but, upon closer inspection, they aren’t as impressed. They report that the Cruze diesel also achieves 26 mpg in the city, which isn’t as good as the Cruze Eco’s rating of 28 mpg with a manual transmission.

2014 Chevrolet Cruze Diesel. Photo courtesy of Chevrolet.

One of the Cruze diesel’s primary competitors is the 2013 Volkswagen Jetta TDI. The diesel-powered Jetta starts at $23,055 and achieves an EPA-estimated 42 mpg on the highway. Its diesel engine produces 140 horsepower and 236 pound-feet of torque. While the Cruze diesel costs more than the Jetta TDI, Chevrolet says that the Cruze diesel comes with a greater array of standard features, including leather seats and a MyLink infotainment system, in addition to getting better fuel economy.
Kicking Tires points out that over the past 12 months, diesel fuel has cost, on average, 10 percent more than gasoline, or an extra 38 cents per gallon, which somewhat erodes the benefit of higher fuel economy. According to AAA’s Daily Fuel Gauge Report, diesel fuel currently costs an average of  $3.93 per gallon nationally, while regular gasoline costs $3.51. Looking strictly at highway fuel economy estimates for the Cruze diesel and gas-powered Eco with an automatic transmission, you would have to drive about 802,000 miles to recoup the added cost of the diesel model over the gas model. Keep in mind that throwing city driving into the mix would likely change this math, as would a fluctuation in current fuel prices.
While most publications only make comparisons with other diesel and conventional gas-powered rivals, it is worthwhile to draw a comparison with similarly-priced hybrid models as well. The 2013 Toyota Prius, for example, starts at $24,200, excluding destination fees, and achieves an EPA highway estimate of 48 mpg. The Prius makes a better value proposition, given its lower price and the added cost of diesel fuel over gasoline.
The 2014 Cruze diesel goes on sale in select cities this spring, and hits dealers nationwide this fall.

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Car Donation Value

One of the biggest hurdles people face when thinking about donating their vehicle is the car donation value. We’ll go over some ways to help you figure out realistic values for you to go by in helping you make the decision as to where this is something you want to do or not.

Here we’ll go over three different agencies you can use to figure out your car donation value. Each will usually be pretty consistent with the other depending on the options you have on your vehicle.

Kelly Blue Book: Find the official Kelly Blue Book value for your car, SUV, van or truck. Their website is free to use and is one of your best sources for new and used car values.

Here you’ll enter in the make and model of your car and complete the online form on their website to help you come up with the fair market value or car donation value. There are a few values you’ll have to enter in such as mileage, the condition it’s in, and anything else about this vehicle they have listed.
If you look at the trade in value, that’s completely different from fair market value. The trade in value is what the dealership will be willing to give you in order to keep their profit margins high.

NADA Appraisal Guides: Used vehicle pricing and information for automobiles, classic cars, motorcycles, boats, recreational vehicles, aircraft and manufactured housing.

Edmunds: Edmunds provides pricing for new and used vehicles based on your zip code location. Edmunds is another good source to help you get the fair market value and has an extensive database of new and used cars.

TIP: A good thing to remember when trying to figure out the value of your vehicle is what kind of demand is out there for it? If your car is high in demand or not a common vehicle, the fair market value can be more than what books or online sites are telling you. What you can do is pick up an Auto Trader magazine, look at some online classifieds such as Craigs List.com to get an idea of what your’s is selling for in your area. Also by using these resources, you can get an even better idea of your car donation value.

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Car Ownership Costs Increase to More Than $9,100 Annually

Photo courtesy of Getty Images

Owning and maintaining a car costs more today than it did in 1950. When AAA put out its first ‘Your Driving Costs’ report 63 years ago, a car that was driven 10,000 miles per year cost its owner 9 cents per mile. Fast-forward to 2013 and AAA’s latest study finds that the average sedan’s ownership costs are up to $9,122 per year or 60.8 cents per mile, assuming you drive 15,000 miles annually. That’s almost a two-percent increase compared with 2012.
“This year, changes in maintenance, fuel and insurance costs resulted in the increase to just over 60 cents a mile,” says John Nielsen, AAA Director of Automotive Engineering and Repair. Vehicle maintenance costs, which include the price of replacement parts, labor and buying an extended warranty, are up 11.26 percent, while fuel costs increased 1.93 percent compared with last year. AAA also reports that insurance costs for sedans rose 2.76 percent to an average price of $1,029 per year.
Depreciation costs are up too, as AAA reports a .78 percent increase to $3,571 per year. MSN Autos reports that “this is likely due to growth in new-vehicle sales, which has put more used cars in the marketplace. That in turn drops the resale value of older models in good condition.”
While these estimates apply to the average sedan, operating costs will vary depending on the type of car you own. Small sedans have the lowest costs at 46.4 cents per mile or $6,967 annually, while owners of large cars will shell at 75 cents per mile or $11,248 per year. At $11,599 per year or 77.3 cents per mile, four-wheel drive SUVs cost more to own than any other vehicles in the study.
If you’re looking for a car that’s a great value, check out our Best Car for the Money Awards, which highlight cars that combine the average price paid and five-year total cost of ownership data with information from our rankings.

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Lower Gas Prices Coming this Summer

Photo courtesy of Ford.

With the temperatures warming and sunlight lasting longer, the summer driving season is seemingly upon us. Unlike last year, however, gas prices are expected to drop throughout the summer months. According to data released by the U.S. Energy Information Administration (EIA), gas prices between April and September are predicted to average $3.63 per gallon this year.
The EIA reports that this summer’s projected fuel price is lower than it has been the last two years. In 2012, the average price per gallon was $3.69, and in 2011 it was $3.71. Kicking Tires notes that a major reason for the drop is lower crude oil prices, “which account for two-thirds of the price of gas at the pump. …”

Average summer gasoline prices. Photo courtesy of U.S. EIA.

According to the EIA, gas prices are predicted to fall throughout the summer, starting at $3.69 per gallon in May and dropping to $3.57 by September. “Customarily, it takes anywhere between 1-2 weeks for falling crude prices to filter their way downstream to retail gasoline,” CNBC reports. “If the drop in crude is sustained, it could mean gas prices could see some relief by early May.” However, some analysts say that most gas stations still have to switch from winter fuel to the slightly costlier summer blend, which may mean that prices won’t fall as quickly as anticipated.
Compared with 2012, the EIA notes that there is slightly less demand for gasoline this year since vehicles have become more fuel efficient. The agency says that prices will vary by region, with the least expensive gasoline available in the Gulf Coast area, and the most expensive on the West Coast.

2013 Mazda Miata. Photo courtesy of Mazda.

If news of lower gas prices and warming temperatures has you thinking about buying a convertible, there are some good deals available. This month, you can get good deals on the 2013 Ford Mustang and Mazda Miata, two convertibles that both perform well in our affordable convertible rankings. The Mustang convertible starts at $27,200 and is available with zero-percent financing for five years. If you’d prefer a lease, you can get a Miata for $299 per month for three years with $0 down and no first month’s payment. The Mustang achieves an EPA-estimated 19/30 mpg city/highway, while the Miata gets up to 22/28 mpg city/highway.

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Donate A Car for Charity

When you are looking to donate a car for charity, there are usually several questions that should come to your mind that we’ll go over in this article. Being armed with the best knowledge is the best and only way you start this off before doing anything.

Why donate a car to charity?

This comes with several answers for some people. A few examples could be that somebody has a vehicle in their driveway or yard that is no longer wanted or needed and the owner doesn’t any other way to get rid of it. The vehicle might not be running anymore and an easy repair can’t get it running (most car donation charities will pick up your car whether it runs or not). Then some might have an extra vehicle that isn’t used but they could use a tax deduction for the year. When the car sells you get to deduct the actual amount it sells for from your current taxes.

How to donate a car to charity. (see How to Donate a Car for more information)

This will mainly depend on where you are located and if your area has a charity that meets your wants as well. You can check out the states we have listed here to see if your location is on there or if you have a charity in mind, you can call them directly and see if they are open to being given a car donation for a tax deduction in return.

Best place to donate a car? (see our locations by state and city)

For most people, where to donate your car, truck, or whatever they want to get rid of can be a preference made based on what touches them personally. If you’ve had a family member or close friend that had a bout with breast cancer then you might look at some local charities that support breast cancer research and support to affected families. This way you’ll feel good knowing that you’ve helped support a good cause and in some ways they helped your friends or family when it was their time of need.

Can you donate a old car?
This is a popular question for most people that think their vehicle wouldn’t be accepted. Believe it or not, your car doesn’t have to be running most of the time for it to be approved for a donation. It’s always best to check with the organization first to make sure but what most of them do is have the car repaired and make ready to sell. Once it’s ready and it sold, they deduct the cost of repairs from the sale price and that amount is what your deduction will be. Other than that, it doesn’t matter how old your car is as long as it holds some kind of value then the charity will take it.

Can you donate a car for cash?
When you donate a car to a charity, they won’t just hand you cash for it. You’ll get a receipt showing that they accepted the car and then your deduction amount is dependent on how much they can sell it for. After it’s sold, they’ll update you with the correct price and make sure you get it in writing for your taxes.

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Car Shoppers Prefer Outgoing Model Deals Over Redesigns

Photo Courtesy of Chevrolet

According to an online survey that autotrader.com released last week, 79 percent of car shoppers would rather get a good deal than wait for the latest redesign.
“From computers to phones to TVs and even cars, the next ‘new’ release seems to be just around the corner, making it harder for people to have the latest and greatest for very long,” says Rick Wainschel, vice president of automotive insights at AutoTrader.com. “In that environment, especially with such a large purchase as a car, many consumers seem to feel that good is good enough, particularly if it will save them some green.”
There may also be other benefits to not getting the latest and greatest. The Washington Post points out that the redesigned 2013 Ford Fusion and Ford Escape have had recalls for multiple issues, including problems “with their engines, headlamps, brake lines, and most recently, child safety locks.” As a result, shoppers looking for a reliable vehicle may want to wait a few years for all the kinks to be worked out.
Some redesigned 2014 vehicles include the Kia Forte, Cadillac CTS, Chevrolet Silverado, GMC Sierra and Subaru Forester. As all-new 2014 models begin to show up in dealerships, keep an eye on outgoing 2013 models to see if you can get a better deal. For example, if you check out our Subaru page, you’ll notice that the 2013 Forester is available with zero-percent financing. That’s better than the redesigned 2014 Forester’s 1.9% financing, and the 2013 model also has a lower base price.

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i3 Prototype Showcases BMW's Future

BMW i3 Concept Coupe. Photo courtesy of BMW.

Last year, the BMW i3 Concept Coupe was introduced at the Los Angeles Auto Show. BMW i is a new subdivision of BMW that will introduce electric and hybrid-electric vehicles to the automaker’s lineup. BMW released a statement last December confirming that production of the electric i3 will start by the end of 2013. Elaborating on the release date, Car and Driver reports that the i3 will hit U.S. dealers in early 2014.
Some sources have detailed a couple ways that BMW will combat range anxiety with its new electric vehicle. Edmunds reports that a fully charged battery will give the 2014 BMW i3 a range of about 80 to 100 miles. An optional gasoline engine is available to extend the i3’s driving range by another 80 to 100 miles. BMW of North America CEO Ludwig Willisch spoke with Edmunds at the 2013 New York Auto Show, and said that the gas engine "is an auxiliary generator than can charge the battery if it has been discharged to such a level that you won't make it home."

BMW i3 Concept Coupe. Photo courtesy of BMW.

BMW also plans to ease concerns about range anxiety by offering gas-powered loaner vehicles to i3 owners for longer trips. WardsAuto reports that the loaner program will be integrated into the i3’s price, which should start in the mid-$40,000 range.
When it arrives next year, the BMW i3 will compete with electric and plug-in hybrid vehicles like the 2013 Ford Focus Electric and Nissan Leaf. The Focus Electric starts at $39,200 and has an EPA-estimated range of 76 miles, while the Leaf starts at $28,800. Nissan estimates that the 2013 Leaf can travel about 75 miles on a fully charged battery. The i3 will also compete with plug-in hybrids such as the Toyota Prius Plug-In, which starts at $32,000 and Chevrolet Volt, which starts at $39,145.

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Chrysler Recalls 215k Vehicles

2012 Dodge Challenger. Photo courtesy of Chrysler Group.

Chrysler Group has issued six different recalls across its four major brands, Chrysler, Dodge, Ram and Jeep, for various issues. The total number of vehicles recalled in the U.S. is approximately 215,000.
The largest recall affects about 119,497 vehicles, according to NHTSA. Affected models include 2011-2012 Dodge Challenger, Charger and Chrysler 300 models built between April 11, 2011 and Dec. 14, 2011. A component of the model’s air bag wiring harness may be improperly sized, and as a result, the airbags may not properly deploy in a crash. Chrysler's campaign number for this recall is N07, and the NHTSA campaign number is 13V118000.
The second recall affects 61,409 2007-2008 Dodge Nitro 4x2 vehicles manufactured between March 21, 2006 and March 1, 2008, as well as 2008 Jeep Liberty 4x2 models built between Feb. 15, 2007 and March 1, 2008. According to NHTSA, the heat shield on the transfer case may rub against the drive shaft, which could potentially weaken and cause the drive shaft to break. If this happens, the vehicle will be inoperable. Additionally the air bag computer may falsely believe that the vehicle has been involved in a collision and deploy the airbags. Chrysler’s campaign number for this recall is N10 and the NHTSA campaign number is 13V121000.
Chrysler is also recalling 20,532 2012 Jeep Patriot and Compass models built between Oct. 18, 2011 and May 7, 2012. NHTSA says that a transfer tube between the primary and secondary sides of the fuel tank may have been improperly manufactured, which could interrupt the flow of fuel, which would cause the engine to stall. Chrysler's campaign number for this recall is N17 and the NHTSA campaign number is 13V120000.
Autoblog states that those three recalls are official government recalls issued on behalf of Chrysler, while the next three were announced by the automaker.

2013 Ram 1500. Photo courtesy of Chrysler Group.

Chrysler is recalling 6,600 2013 Ram 1500 models built between Dec. 17, 2012 and Jan. 22, 2013 to inspect the parking brakes, which may not function properly. More information can be found on Chrysler’s website. Additionally, about 7,000 2013 Ram HD models are being recalled to replace engine covers which may not be properly heat-resistant. In a statement, Chrysler says that only about 500 of these models are in the hands of customers, while the rest of them are still on dealer lots.
Finally, Chrysler is recalling 46 2013 Dodge Dart models that were built over a 24-hour period in November. Chrysler says that the brake calipers on these models do not meet Chrysler's specifications.
With each of the recalls, Chrysler will notify owners of the affected vehicles, and start performing repairs, free of charge, between April and May. Owners may contact Chrysler at 248-512-6660 or 800-247-9753. Owners of vehicles recalled by NHTSA may also contact NHTSA at 888-327-4236 or visit www.safercar.gov.

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Lawmakers, Advocates Push to Make Back Up Cameras Standard

If some lawmakers and safety advocates have their way, your next new car may have a standard rearview camera.
The Detroit News reports that Peter King, a Republican representative from New York and Jan Schakowsky, a Democratic representative from Illinois, are pushing the National Highway Traffic Safety Administration to finalize regulations to make backup cameras standard on new cars.

photo courtesy of Honda

In 2007, congress passed a law requiring that NHTSA set rear visibility requirements by Feb. 28, 2011, but the requirements have been repeatedly delayed by Transportation Secretary Ray LaHood. The Detroit News reports that adding cameras as standard equipment will cost the auto industry between $1.9 billion and $2.7 billion each year, according to data from 2010. Adding the cameras would raise the price of a new car between $159 to $203 if the car doesn't have a display screen, and $58 to $88 if the car does.
Safety advocates argue that the costs don't matter when lives are at stake. Kids and Cars, a safety advocacy group, says that between 1991 and 2011, 1,051 children under the age of 16 were killed in back over incidents. NHTSA estimates that 183 people are killed and 6,700 to 7,419 are injured each year in back over accidents.
Karen Pauly, an Iowa woman who backed over and killed her 19 month old son, now lobbies for standard rearview cameras in cars. She told the Des Moines, Iowa NBC affiliate that she asks lawmakers to "picture their son, daughter, grandchild or whoever in their life when they listen to me talk about the things that I saw that day when I saw him lying there.”
Cars.com says that some automakers, in response to consumer demand for rearview cameras, already have them as standard equipment on many of their models. They cite Honda, Hyundai and Kia as examples of carmakers with standard rearview cameras across most of their model lines. The Alliance of Automobile Manufacturers says that 70 percent of new cars have rearview cameras as available equipment.
If the regulations hadn't been delayed, 10 percent of new cars would have had rearview cameras by September 2012, 40 percent by a year later, and 100 percent by September 2014. Now it looks like the regulations will take effect by the 2015 model year at the earliest.
In our own Best Cars for Families awards, the availability of a rearview camera is a key component in determining the winners in each class. If you're searching for a family car, a rearview camera should be on the top of your list of features to look for.

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Steps to Donate Your Car

We’ve gone over the many ways on how to look for charities when you want to donate your car, but what we need to work on now are the steps you should take to make sure it goes extremely smooth for you.

1. Why are you wanting to donate your car? Is it not running, does it sit in the driveway and never move, is it an extra car that you don’t need, will a tax benefit help you more than what the car is doing for you?

For most people, when a car has been giving them troubles or it’s been broken down more than it’s been running, that is sometimes the first red flag that might make you think it’s time to move onto something else instead of sinking more and more money into it. You have to take into consideration that if you do get the car running, was it really worth it?

2. Next is to get your paperwork in order. If the car belongs to you then it’ll be the easiest way to get started. You’ll need the registration papers to show that you own the vehicle. If you can’t find them, don’t worry. A trip to your DMV (department of motor vehicles) will help you file for a lost title.

They’ll help you get the correct applications and get that title replaced. This is important, if you can’t show proof that you own the vehicle outright and that there are no liens on it, nobody will touch your donation. They legally can’t take ownership if it belongs to somebody else.

3. Once you’ve got your paperwork in order, now it’s time to find the charity that works for you. This is where you make the choice of who you want to donate your vehicle too. If there is a charity that has helped a family member or friend out then maybe that’s one for you to consider. It’s always best to help out the ones that helped you out before because there are many others out there that will be needing help in the future.

4. Contact the charity that you’ve chosen and ask them a few questions:

Do they offer free pickup? This means will they send a tow truck out free of charge to you in order to pick up the vehicle you’re wanting to donate.

Will they give you a receipt for the vehicle? You must have proof that they took ownership and that you will be getting a future tax break when they sell the car.

After all this is done, now it’s time to wait. From here the charity takes your car back and begins the process. If it wasn’t running or in need of some repairs, the charity will more than likely have a contract with a local repair shop to work in it and get it back into running condition. This of course will cut into the net profit of the car being sold but in reality it’s more than they had to begin with. If they spend $500 dollars on getting the car fixed and it only sells for $2,000.00 then they’re net profit will be $1,500.00 but that’s better than them getting nothing at all.

Be sure and follow this list when you’re wanting to donate your car and it’ll help you make it a smooth process.

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Auto Repair Costs are on the Rise

Photo courtesy of CarMD

Your car is getting more expensive to fix, at least according to the 2013 CarMD Vehicle Health Index. The study found that for the first time in six years, the average repair cost rose 10 percent to $367.84 on 1996 to 2012 model year vehicles. Replacement part prices went up six percent in 2012, while labor charges rose 17 percent. CarMD says that the Northeast region saw the largest increase, with the cost of repairs rising by 11.56 percent last year.
More than 161,000 repairs from 2012 were analyzed for the 2013 CarMD Vehicle Index Study, which were validated by the company’s network of ASE-certified technicians.
The study reports that the most common problem that triggers vehicle check engine lights is a bad oxygen sensor, which can cause as much as a 40 percent reduction in fuel economy. A loose gas cap was the second most common repair, followed by replacement of the catalytic converter, ignition coil, spark plugs and wires.
The most costly repair in the CarMD database affected Honda Civics and Volvos from the 2001 model year. CarMD reports that replacing the transmission assembly and reprogramming the electronic control module cost an average of $5,474. “Inspect engine oil for correct level and viscosity,” is the least expensive repair, which simply means it’s time to check your oil.
While CarMD indicates that repair costs are up, the study also points to some good news for car owners. The Vehicle Health Index reports that automakers are building cars and parts that last longer, and that car owners are getting better at handling minor car repairs themselves. Additionally, repair costs on hybrid vehicles have dropped, in part because more hybrid cars and SUVs are on the road, but also because more mechanics are qualified to fix them.

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Silverado and Sierra Pricing Revealed

2014 Chevrolet Silverado 1500. Photo courtesy of General Motors.

General Motors last week revealed pricing data and some engine and towing specifications for the redesigned 2014 Chevrolet Silverado and GMC Sierra 1500 full-size pickups. In a pair of press releases, GM announced that the Silverado 1500 will start at $23,590, excluding $995 destination, while the Sierra 1500 will start at $24,090 before destination.
The 2014 Silverado’s price is identical to that of the 2013 Silverado, while the 2014 Sierra’s price has a $500 bump over the 2013 model, which starts at $23,590. Comparatively, the 2013 Ram 1500 starts at $22,640 and the 2013 Ford F-150 starts at $23,995. The 2013 Toyota Tundra starts at $25,455 and the 2013 Nissan Titan at $29,270.
Car and Driver points out that while the starting price for the 2014 Silverado is a bit lower than that of the F-150, comparable extended and crew cab models are a bit more expensive than the Ford. Still, they expect that competition between domestic pickup trucks will remain tight, as all the prices are fairly competitive with one another.

2014 GMC Sierra 1500. Photo courtesy of General Motors.

GM also released specifications for its 5.3-liter V8 that will be available in both trucks. The V8 produces 355 horsepower and 383 pound-feet of torque. GM claims that with this engine, a Silverado or Sierra will achieve up to 16/23 mpg city/highway, although those estimates are not displayed on the EPA’s website. Currently, the most fuel-efficient full-size pickup is the V6-powered Ram 1500, which achieves 17/25 mpg city/highway. Ford’s base V6 achieves 17/23 mpg city/highway, while its Ecoboost V6 model manages 16/22 mpg. A 4.3-liter V6 and 6.2-liter V8 will also be offered in the Silverado and Sierra, but no specifications for those engines have yet been released.
When equipped with a max towing package, Chevy and GMC say that the new trucks with the 5.3-liter V8 can tow up to 11,500 pounds. That figure tops F-150, which currently has the highest towing capacity in the full-size truck class at 11,300 pounds with the Ecoboost V6. While details aren’t yet available, Chevrolet’s press release says that a Silverado with the 6.2-liter V8 will have an even higher towing capacity.
While the Silverado with the 5.3-liter V8 out-tows and gets better fuel economy than an EcoBoost F-150, USA Today notes that the full-size pickup segment is always changing. They point out that the Ram 1500 will debut later this year with a diesel engine, and that Ford is slated to launch an all-new F-150 at some point next year. They also say that Nissan will launch a redesigned Titan at some point next year, and expects each of these trucks to deliver improved fuel economy.
Chevrolet says that crew cab Silverados will be launched later this spring, while regular and double (extended) cab models will launch later this summer.

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Car Donation Charities

Car donation charities accept donations of your scrap or used vehicles, and not only does this benefit the charity but it also benefits you. That is because your car is regarded as a tax-deductible donation so you can write it off against your taxes when you file.

You must first ensure that the charity accepting your vehicle is registered to accept tax deductible contributions, and also make sure you get a receipt to prove that the donation was made.

On receiving this proof, you can safely hand over your vehicle and then claim its value against your next tax return. Make sure that you have records of the value of the car, because this type of donation might well result in an IRS inspection to make sure that the value you are claiming was the true value of your vehicle when it was donated.

When you donate a car to charity, the cars that are donated can be of two types: those still in good working order and those useful only for scrap. Here is how each type of car will benefit both you and the charity:

1. Scrap Cars

What benefits do you get by donating a scrap car apart from the warm glow of helping a charity to help others? You get the benefit of having your old vehicle removed free of charge, and also of knowing that it will be put to good use in the recovery of the steel to build new vehicles. The oil is also recycled, and it has been estimated that Car donation charities contribute significantly to over 10 million gallons of oil that is recycled each year by the auto recycling industry.

You can also claim a sum against tax for the scrap value of the car. Generally, you have no work to do when you offer your car to car donation charities. They arrange the collection of the vehicle, provide you with documentary evidence of the donation for the IRS, and that’s about it! It’s a very simply process, which is why so many individuals and businesses are pleased to use such services.

Many people are under the mistaken opinion that they get paid when they offer their vehicle for scrap. On the contrary – you generally have to pay the merchant to take it away, and that is why car donation charities are so popular and so successful. They not only save people money in remove their scrap cars free of charge, but they can also make money due to the volume of scrap metal and oil they are handling.

2. Functional Cars
Many cars received by car donation charities are in working order, and in this case the donor receives a tax deduction equivalent to the sale price of the car. If the charity decides to use the car for its own use (saving them purchasing a car) then you can claim the estimated value of the car against tax, and the charity benefits by being able to offer a car to their workers at no cost.

However, if it is sold at auction then you claim the amount for which it was sold. Car donation charities receive amazingly large numbers of cars that are still working, but for which their owners would rather receive the tax benefit by donating it rather than accrue more tax by selling it.

The Legal Aspects

The legal aspects of a persons donation relate to the IRS (who else!). If your car is worth over $500, you must complete Section A of IRS Form 8283. If worth up to $5,000, use one of the recognized books, such as the Kelly Blue book for its market value. For over $5,000. You should get an independent valuation for your car and also complete Section B of Form 8283. Take photographs of the car and retain any receipts you still have relating to parts or tires that have been recently purchased for the car. You can claim for these.

This all might seem a lot of work, but it is not as difficult as it seems and you are getting two major benefits from it:

a) You get the warmth in your heart of knowing that you are helping people less fortunate than yourself,
b) You are getting your old car taken away free rather than paying for it, and
c) You are getting a tax deduction for the value of a car that you might otherwise just have let go for scrap, or maybe sold for a lot less than your tax claim might be.

You can use car donation charities to your benefit if you understand how, and we will show you exactly what you must do to take advantage of each of these benefits. You have surprisingly little to do when you donate a car to charity, because the charities do most of it: they collect your car, dispose of or sell it, and we help you every step of the way to make sure you’re getting the best for you.

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Better Fuel Economy Could Mean Worse Tires

A study released by J.D. Power and Associates last Thursday shows that car buyers are not happy with the run-flat and low-rolling resistance tires automakers use to improve fuel efficiency.
According to the study, run-flat tires, commonly used on performance sport cars and luxury vehicles, have about a 6,000-mile shorter life span than standard tires. These tires have to be replaced more often than conventional tires and often have to be replaced in pairs. This could make for a costly expense sooner than what owners had planned on.
USA Today says that “more automakers are equipping cars with run-flat tires, which can keep rolling for enough miles to get to a gas station or tire store, rather than putting a traditional spare tire to the trunk. The spare adds more weight to the car, which burns more gas.”
Brent Gruber, director, global automotive division at J.D. Power and Associates, says, “Automakers are trying to reach the next level of fuel economy, and are looking to their suppliers--in this case, tire manufacturers--to help them get there. The challenge is doing this while finding tires that meet customers’ expectations. Run-flat tires are not currently meeting those expectations.”
Customers are also hesitant about low-rolling resistance tires because of what they may have to give up for better fuel economy, according to the survey. Most of them are concerned that traction and the tire’s durability are worse on low-rolling resistance tires than standard tires.
"While the marketing of low-rolling resistance tires has primarily focused on fuel efficiency, tire manufacturers may also benefit from advertisements that help educate consumers about the traction and dependability of the tires," said Gruber. "Consumers don't fully understand the benefit of low-rolling resistant tires. They believe they are forfeiting important aspects of tire performance by opting for low-rolling resistant tires, yet don't know how much improvement in fuel efficiency they should expect in return."
In an interview with The New York Times, Goodyear says it supplies low-rolling resistance tires for the Toyota Prius and Chevy Volt among other fuel-efficient cars. Goodyear say the Assurance Fuel Max tires it uses for these vehicles improve traction and durability by 27 percent over the previous model of Assurance tires.
Michelin provided The New York Times with a graphic that explains how tire companies are making tires that perform well and help owners save on gas.
The New York Times also reports that the National Highway Traffic Safety Administration (NHTSA) is updating labeling rules on tires that will help consumers choose the correct replacement tires. The labeling will add fuel-efficient grades, safety and durability. John Emerson, director of industry standards and government regulations at Michelin, tells The New York Times he expects to see these new rules mid-2013.
Before purchasing your new car, look to see what type of tires it comes with. If they are run-flat tires, expect to pay for some new tires sooner rather than later, and try to avoid scenarios that could result in a flat tire or blowout.

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Will New Tesla Finance Incentive Electrify Sales?

Tesla introduced this week what it calls a “revolutionary automotive financing product that provides the best elements of ownership and leasing to Model S customers.”
Tesla is teaming up with Wells Fargo and U.S. Bank to offer shoppers a part-lease, part-finance option that guarantees the residual value of the all-electric Model S. The automaker says in a statement that this lets buyers take advantage of government tax credits of anywhere from $7,500 to $15,000, depending where you live, which buyers can’t do when leasing.
The 60 kWh Tesla Model S starts at $69,000 and the 85 kWh model starts at $79,900 (the 40 kWh model is no longer available). The 85 kWh Model S Performance starts at $94,900. According to Tesla, you make a 10 percent down payment and Wells Fargo or U.S. Bank will finance the Model S, if you have good credit. Tesla says that the down payment will mostly be covered by the federal and state tax credits. You then, in essence, lease the car for three years. At the end of that time, you can either buy it or sell the car back to Tesla for the same residual value of the Mercedes-Benz S-Class, which Tesla CEO Elon Musk personally guarantees.
Tesla has created a “True Cost of Ownership” calculator where potential buyers can see what a Model S will cost them per month, based on multiple customizable variables. Tesla touts a potential $500 a month payment, but many in the industry are skeptical. Tesla’s low monthly payment takes into account gas savings, tax credits, a business tax deduction if you drive the car for work purposes, a deduction for the guaranteed resale value and even a monetary equivalent for the time it takes you to drive to a gas station to fill up and the time savings if you drive in the car pool lane, which many localities allow electric cars to do. The actual monthly payment could be more than $1,000 a month for the 85 kWh model. MSN Autos writes, “Residual value of the S-Class is just under 50 percent at best, and that $500-per-month number is ripe for ridicule in the face of what is actually a $1,199-per-month financing program for 66 months.”
The Washington Post cautions that shoppers should always thoroughly research any finance deal before signing on the dotted line. “Still, the financing scheme is interesting and worth exploring.”
The automaker is trying to recover from a less-than-flattering New York Times review of its Model S, where the driver ran out of battery power earlier than expected. Musk told Reuters that a few hundred buyers cancelled their orders for the Model S because of the New York Times review, and that the company’s stock shares dropped 13 percent. “Between $100 million and $200 million of Tesla's drop in market value was due to the Times article,” Musk told Reuters.
MSN Autos reports that the 40 kWh model was dropped due to low sales. “Making up only about 4 percent of Model S orders, the 40-kWh version is now seen as extraneous compared with the more popular, higher-range 60-kWh, 85-kWh and 85-kWh Performance versions.” MSN Autos also reports that Tesla sold more Model S cars than it expected in the first quarter, which helped the automaker earn its first profit.
The 2013 Tesla Model S is currently ranked at the top of our luxury large car class, tied with the 2013 Mercedes-Benz E-Class.

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2005 to 2009 Subaru Outback and Legacy Recalled

Subaru is recalling roughly 200,000 Legacy and Outback models because the brake lines could be susceptible to corrosion. The National Highway Traffic Safety Administration reports that the recall affects 2005 to 2009 model year vehicles that are “currently, or formerly, registered in Connecticut, Delaware, Illinois, Indiana, Iowa, Maine, Maryland, Massachusetts, Michigan, Minnesota, Missouri, New Hampshire, New Jersey, New York, Ohio, Pennsylvania, Rhode Island, Vermont, West Virginia, Wisconsin and the District of Columbia.”
NHTSA says that a gap in the fuel tank protector could allow salt water to splash onto the brake lines, which creates the risk of excessive corrosion. Kicking Tires writes, “This could cause brake fluid leakage, which could necessitate longer stopping distances and increase the risk of a crash.”
Owners of affected Legacy and Outback models will be notified by Subaru so that dealers can perform an inspection. If no brake fluid is seeping, dealers will rustproof the area in question with an anti-corrosion wax. If seepage is present, Subaru will rustproof the area and replace the brake lines.
Subaru has not announced when the recall will begin yet. Owners of affected vehicles can contact Subaru at 1-800-782-2783.

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Big Auto Sales Mean Small Discounts in March

March auto sales numbers are trickling in with good news for most automakers, but bad news for consumers hoping to get a deal on a new car.

Ford reports a 6 percent sales increase compared with March 2012. The Ford Fusion sold more than 30,000 units in March, which Ford says is a record for the model. The Ford Escape also broke its best monthly sales record, selling 28 percent more models than in March 2012. Ford also says that sales of the Ford Explorer are up 33 percent compared with a year ago.
Ford isn't the only brand with record sales, however. In its sales report, Chrysler Group LLC says that it had its best sales month since December 2007. March marks the company's 36 consecutive month of sales gains, year over year. Overall, Chrysler Group sold 171,606 cars, SUVs, trucks and vans in March, which is a 5 percent increase over March 2012. The Ram Truck brand posted a 24 percent sales gain, the Chrysler brand saw sales increase 35 percent compared to March 2012 and Dodge sales were up 15 percent compared to last year. One dark spot in Chrysler's news is the Jeep brand: Jeep sales were down 13 percent compared to March 2012. Chrysler says the drop is due to the end of the Jeep Liberty and ongoing product launches. Though Jeep sales were down compared to last year, March Jeep sales were 27 percent better than February Jeep sales.
Volkswagen reported a 3.1 percent increase in March sales compared to last year. The German automaker says they've had the best sales year so far since 1973. More than 22 percent of VW sales in March were of diesel models, indicating that high-mileage diesel engines are gaining traction with U.S. consumers.
As auto sales surge, analysts are revising their sales forecasts for the year. Edmunds now estimates that 15.5 million cars, trucks, SUVs and vans will be sold in the U.S. in 2013. That's an increase of half a million sales from their earlier prediction. They attribute the surge to "... car shopper resilience in the face of continued fiscal issues at home, and more recently, flare-ups of fiscal drama in Europe. Buyers are also feeling wealthier thanks to rising home prices and the strong stock market, and refinancing home mortgages as well as an improving labor market have put additional cash in some buyers' pockets. Meanwhile, pent-up demand continues to release, thanks to the aging fleet and more widely available credit."
In an email to reporters, Edmunds says that industry spending on incentives is falling as sales rise. Compared to last month, automakers spent nearly 2 percent less on incentives and discounts in March. That tracks with U.S. News Best Cars' best car deals research. Because sales are strong, automakers don't need to tempt shoppers with deep discounts. According to Edmunds, on average, automakers offered $2,357 in discounts in March. GM was the biggest spender on incentives, offering an average of $3,472 off its vehicles. Though that's a big discount, it's less than what the company offered in February. On the other hand, Honda offered an average of just $963 off its vehicles. That's almost 8 percent more than the company offered in February, but nearly 3 percent less than the discounts the company offered in March 2012. If you're looking for a new car, it makes sense to buy now, before incentive spending drops further.

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Hybrid SUV Competition Heats Up with Debut of 2014 Nissan Pathfinder Hybrid

Last Wednesday at the New York International Auto Show (NYIAS), Nissan announced their first hybrid SUV, the 2014 Nissan Pathfinder Hybrid. Nissan said the seven-passenger hybrid will go on sale in late summer.
Nissan said at their press conference on Wednesday that the Pathfinder Hybrid will feature a supercharged 2.5-liter four-cylinder engine and an electric motor. It will cost about $3,000 more than the standard V6 engine model, which has a current starting price of $28,650. At the press conference, Executive Vice President Andy Palmer said the Pathfinder Hybrid will get 26 combined mpg.
Motor Trend writes, “Visually, the hybrid model’s only distinguishing features from a standard Pathfinder are special LED taillights and new Puredrive Hybrid badging. Inside, the in-cluster display receives special hybrid info screens.”
According to MSN Autos, Nissan has been investing in electronic models, like the LEAF, but is a relative newcomer to hybrids. MSN Autos also writes, “By introducing hybrid technology into the popular and fast-growing midsize crossover segment, Nissan is maximizing its reach. An aggressive pricing strategy to make the typically expensive technology more affordable will only increase its appeal.”
Other hybrid SUVs that debuted at the NYIAS include the 2014 Toyota Highlander Hybrid, 2014 Infiniti QX60 Hybrid and 2014 Subaru XV Crosstrek Hybrid. USA Today says the 2014 Toyota Highlander Hybrid is expected to get 28 combined mpg, and it will cost somewhere between $41,000 and $47,000. Other hybrid SUVs currently on the market include the 2013 Lexus RX Hybrid, 2013 Volkswagen Touareg Hybrid, 2013 Cadillac Escalade Hybrid and the 2013 GMC Yukon Hybrid.
In an interview with The Detroit News, Kelley Blue Book’s senior analyst Alec Gutierrez says that hybrids still have some problems to overcome. For one, they have to compete with fuel-efficient gas-only vehicles that cost less. “We are seeing a lot of new offerings and announcements, but we really haven’t seen market share move over the last five years,” Gutierrez said.
However, The Detroit News reports that automakers think “… adding hybrid systems to SUVs and bigger cars makes sense because they do mean efficiency improvements for those larger models. Automakers have reduced the premium that buyers pay for hybrids, in order to boost sales.” The Detroit News also says that by the end of 2015, Toyota is estimating that they will have 10 hybrids on sale in the U.S., and Nissan will have four or five hybrids in the U.S.

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