The Pundits are Wrong Again: Edmunds is the new Bear Stearns

Revenge of the Millionaires Next Door

http://news.yahoo.com/s/ap/20090731/ap_on_go_ot/us_cash_for_clunkers

http://news.yahoo.com/s/ap/20090731/ap_on_go_co/us_cash_for_clunkers

Remember the times when all so called Finance/Auto/Politics Pundits were sceptical of the cash for clunkers program. Most said this program would not succeed as there will be too few people eligible.

Also they predicted that anyone eligible and who can afford to buy new car will already be driving one.

http://www.edmunds.com/help/about/press/151267/article.html

"Edmunds.com suggests that the program will struggle to produce the estimated 250,000 vehicle sales. Results will be limited because:"

Now within a week almost 250K cars have been sold and the program has been wildly successful as this blog mentioned that this program is best deal ever for an average Joe/Jill.

MORAL: DON'T TRUST EDMUNDS or KBB or other PUNDITS. Kindly USE COMMON SENSE and Please Donate to this Blog!!

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Best Deals : Sorted by Mileage together with MSRP

Remember:

• Only cars giving more than 28 MPG are included as chances are greatest to get full $4500 refund.
• The real prices at this time are lot less than MSRP.
• Nissan Altima Hybrid with 5 discounts as in posts below is perhaps the best deal.
• Please comment if you feel any other car is better deal.
  

Be American, Buy American: Jeep Compass for less than 10K

Here is the fact:

Jeep Compass for new 2008 Model is available with $6000 discount.
This is on the website of jeep.

Together with say $3500 CARS discount, Jeep may be available for close to $9500.

This big discount is not available for Jeep Compass 2009.

So an enterprising person can find out where 2008 model is and drive there even if inter-state to get this deal.

JEEP COMPASS 2008 50% OFF for 3 more days!

Top 3 Cars: Best Deals for Cash for Clunkers

As per my research the best deals for the cars for Cash for Clunkers are:

1. Nissan Altima Hybrid:
Reason: All discounts apply. Purchasers can use up to 5 discounts.
Price is less than 20K which is excellent for it's size.
600 miles on a tankful of gas so you will save money and time filling up gas tanks.

2. Toyota Prius:
Reason: Gas Mileage. You may save as much on Gas payments at the pump as your monthly loan payment particularly if you commute a lot for your work.

3. Honda Civic Hybrid:
Same reasons as above for Toyota Prius. Only reason it's no. 3 on list is it's smaller than other cars.

The Pundits are Wrong: KBB (Kelly Blue Book)

The Car Pundits have become like Financial Pundits. KBB(Kelly Blue Book), the bible of Used Car Prices has a WRONG CALCULATOR that uses incorrect data to find eligibility of cars.

Please Verify yourself after which you will not trust KBB any more than Lehman Brothers or Bear Stearns.

(a) http://www.kbb.com/kbb/cash-for-clunkers/default.aspx
Put the value 1994 Infiniti J30 as the value.
The calculator shows that the combined Fuel Economy is 20MPG.

(b) http://www.fueleconomy.gov/feg/sbs.htm
Use the above site to find the fuel Economy of same car.

The combined comes out to 18MPG which means this car is eligible.

(c) Go to the CARS site and see answer for question below:
http://www.cars.gov/index.php/faq#question-05

How do I know if my car or truck is an eligible trade-in vehicle?

There are several requirements (but you also have to meet certain conditions for the car or truck you wish to buy). Your dealer can help you determine whether you have an eligible trade in vehicle.

Your trade-in vehicle must

• have been manufactured less than 25 years before the date you trade it in
• have a "new" combined city/highway fuel economy of 18 miles per gallon or less
• be in drivable condition
• be continuously insured and registered to the same owner for the full year preceding the trade-in
• The trade-in vehicle must have been manufactured not earlier than 25 years before the date of trade in and, in the case of a category 3 vehicle, must also have been manufactured not later than model year 2001

Note that work trucks (i.e., very large pickup trucks and cargo vans) have different requirements.

KBB is using OLD combined city/highway fuel economy chart and is WRONG.

Quintuple Your Savings: Salvage Value

In a previous post, I mentioned that there are 4 discounts available as reproduced below.
I would add one more to the available discounts i.e. Salvage Value.
This way a person can Quintuple her Savings.

The minimum/maximum dealer would give for your old car would be $150 which is value for cars steel, aluminum etc. which is the raw metal cost.

However, suppose you have brand new tires. You can sell the new tires on Craigslist and put on old tires when you give the car to the dealer.
Similarly for Infiniti, there is Bose sound system with expensive speakers. Those can be sold before giving the car to the dealer.
Alloy wheels, security system, etc. are some other things that can be sold before car is scrapped.
Total Salvage value of Car Parts $500-$1000.

1. Get $4500 by buying a Car that gets more than 28 MPG
My research says best cars in that space are:

(a) Toyota Prius
(b) Toyota Corolla
(c) Nissan Altima

2. Get Tax Credit for Buying a Hybrid:
http://www.fueleconomy.gov/feg/tax_hybrid.shtml

Nissan Altima has $2350 tax credit
Toyota Prius does not have this, it seems as it has already sold 60K plus vehicles

3. Get Sales Tax Credit for Buying a Car this year:
http://www.irs.gov/newsroom/article/0,,id%3D205863,00.html

4. Get the Discounts offered by Car Manufacturer i.e. Nissan (upto $3250 off)
http://local.nissanusa.com/west/altima.html

CARS: Real World Scenario 1

1. Old Car: Infiniti J30t 1994
Current Trade In Value for Fair Condition: $800 (Even Excellent is $1550)
Private Party value is $2060
Source: http://www.kbb.com/

2. The CARS program will give $4500 for this car + $ 3250 Nissan Discount + $2300 Tax credit + $1000(Sales Tax Program)

3. The car gives 16 MPG. A new Nissan Altima Hybrid will give 34 MPG.

4. If a person drives 1200 miles in a month, he will use 75 gallons of gas, that means 75 *3=$225 (For infiniti)
In Nissan Altima, person would use only 35 gallons i.e. 35*3=$105
Monthly saving = $120

5. Also the person would spend around $600 a year on fixes to old car. Total savings, therefore are $170 a month if person trades in Infiniti with Hybrid Altima.

$170 a month is approximately 12K of Loan.

This is a Good Deal

Quadruple your Dip: The Best Deal Ever for Joe, the Clunker Owner

1. Get $4500 by buying a Car that gets more than 28 MPG
My research says best cars in that space are:

(a) Toyota Prius
(b) Toyota Corolla
(c) Nissan Altima

2. Get Tax Credit for Buying a Hybrid:
http://www.fueleconomy.gov/feg/tax_hybrid.shtml

Nissan Altima has $2350 tax credit
Toyota Prius does not have this, it seems as it has already sold 60K plus vehicles

3. Get Sales Tax Credit for Buying a Car this year:
http://www.irs.gov/newsroom/article/0,,id%3D205863,00.html

4. Get the Discounts offered by Car Manufacturer i.e. Nissan (upto $3250 off)
http://local.nissanusa.com/west/altima.html


It's the right time to buy a Hybrid, and my research says Nissan Altima Hybrid is the best deal as Tax credit(point 2) is available. Any comments are welcome if some other car is the best deal possible.

The following AD is from the site: It does not include the points 2 and point 3.
http://usnews.rankingsandreviews.com/cars-trucks/Nissan_Altima-Hybrid/

CARS: The Basics of the Program

1. Recycle your old Gas Guzzler(18 or less MPG) and get a brand new car.

Important Websites:
The Government Website:
CARS: http://www.cars.gov/

Is your Vehicle Eligible?
http://www.fueleconomy.gov/feg/sbs.htm

The related Articles:
Newsweek: http://www.newsweek.com/id/204675/page/2