GM Recalls Over 200,000 Sedans from '97 - '03

A few days ago, General Motors issued letters to about 207,500 owners of Buick Regal and Pontiac Grand Prix sedans, from model years 1997 - 2003, warning them of a potential fire risk. The letter stated that the sedans are safe to drive, but should not be parked in garages or carports until repairs are made.

If the exhaust manifold gets to a high temperature and oil trickles in below a heat shield during hard braking, small flames can ignite and, "in some cases fire may spread to the plastic spark plug wire channel" says the NHTSA.

GM Spokeswoman Carol Markey said that there have been a "very, very low" number of incidents where vehicles have caught fire while driving. But so far, the problem has resulted in 267 vehicle fires and 5 minor and 1 moderate injury reports.

GM is currently in the process of obtaining the necessary parts to fix the problem from suppliers and will notify owners when they can take their cars in for repairs. Until then, GM recommends not parking in garages and to use premium gas as it helps to keep running temperatures down. For more information on the recall, check out this announcement in the Associated Press.

CUV - the New Auto Buzzword

The CUV (crossover utility vehicle) is a buzzword you are sure to quickly tire of, or are you?  Auto makers are hoping you will be so dazzled by the new catch-phrase that you won't realize you are buying a hyped-up station wagon.  Gas price concerns are forcing manufacturers to look hard for ways to retain their SUV-loving consumers.  The new CUVs, however, have more in common with the old-fashioned wagons than with the ever-popular SUVs.

Built on a car platform, as opposed to a SUV's truck platform, the larger CUVs, such as the 2008 Buick Enclave, seats seven and has a base price of around $32,000.  Compared to the 1993 Buick Roadmaster Estate Wagon, which sold new for about $28,000, the Enclave definitely wins with more refined styling, handling, and convenience than its predecessor.

With financing options as low as 4.9% on the new Enclave, it is starting to look like a good deal for such an improved wagon.  Consider that your parents paid almost $30,000 for their wood-paneled station wagons in the late 80's and early 90's, with possibly less generous financing options, and the new crossover CUV's look like a real steal for families looking for generous seating and improved fuel economy.

Gas Prices Force Consumers to Think Smaller

A shift toward smaller vehicles is expected this year due to rising gas prices.  The new "crossover" vehicle segment - scaled-down versions of SUVs built on car platforms - are predicted to be some of the biggest sellers in 2008.  Models such as the Buick Enclave, which already has waiting lists for the 2008 model, and the Nissan Murano are expected to do particularly well.  They are roomier than sedans and priced competitively to midsize SUVs. The Buick Enclave starts at $32,790 and the Murano is a little less at $27,750.

The big three U.S. automakers should be fearing the rising cost of fuel.  They have largely ignored the smaller car segments allowing Honda and Toytota to continue to dominate in that arena.  Some of the best deals of the summer may be on large SUVs as GM, Chrysler and Ford try to move merchandise in these segments.  If you are set on the larger vehicles, this summer may be your chance for real deals!

Buick Enclave Has Waiting List

The new Buick Enclave has a waiting list before many customers have even seen the new crossover SUV. Dealers report that, with less than 550 of the vehicles having been delivered last month, they have customers already signed to purchase the six-passenger luxury model sight unseen.  While its reported 24 mpg makes the Enclave a thirsty vehicle, Buick says that it offers fuel efficiency savings over its direct competitors and will promote that in its upcoming television advertising. The Enclave has a starting price just under $33,000 but short supplies may boost the asking price for months to come.

New Car Incentives to Watch for in March

Spring is here again, which means warm weather, leading to more car lot visitors. The pressure is on for dealers to clear out inventory, especially after a lackluster winter. With that in mind, here are the makes and models to watch for this month.

Ford Mustang - The Mustang is one of Ford's best-selling cars, but sales have fallen 19% this year. Expect Ford to lay on the incentives in order to boost sales, making the best value among sports cars even cheaper.

Buick - Despite being brand new, the Buick LaCrosse and Buick Lucerne are already losing their sales luster. Expect extra incentives for these too. The Lucerne in particular is a real winner, and if enough incentives are added, it could easily become one of the best car deals on the market.

Chrysler Sebring - An overall solid ride that has seen less than stellar sales. The introduction of the new, similar Dodge Avenger probably won't help matters either - which means deals on a Sebring for you.

Read more in "March auto madness."

General Motors To Extend Powertrain Warranties On Used Cars

Earlier this year, General Motors added a five year, 100,000 mile powertrain warranty on new vehicles.  Now, GM has announced that it will be extending this offer to certified pre-owned vehicles sold in the U.S. -- providing warranty coverage for 900 components related to the engine, transmission, transfer case and final drive assemblies on used Oldsmobiles, GMCs, Pontiacs, Buicks, and Chevrolets. The new warranty excludes Saturn vehicles for now, though GM says it will start a similar program for Saturns later this year.

The warranty offer begins March 5, and will include all GM certified vehicles from the 2002 model year onward. 

The warranty will be identical to the one GM offers for new vehicles, with the exception of courtesy transportation in the case of repairs, which will not be available to certified pre-owed car drivers.  The extended powertrain warranty is in addition to the basic three month, 36,000 mile basic warranty included with certified pre-owned cars.

General Motors Offering Low GMAC Financing Until Jan. 2

General Motors is offering special financing offers on select certified pre-owned vehicles until Jan. 2 for qualified customers.

You can get 3.9 APR on the 2001-07 Chevrolet Malibu, Pontiac G6, and Buick LaCrosse. GM is also offering a 4.9 percent APR on the 2001-07 Chevrolet Suburban, Chevrolet Tahoe, and GMC Yukon. Financing at 5.9 percent is available for the Chevrolet Impala, Chevrolet TrailBlazer, and GMC Envoy. These rates are available for terms up to 60 months.

Bankrate.com reports the current average APR for car loans as 6.93 percent for 60 months.

While these are very attractive rates, keep a few things in mind. First, make sure you have financing secured before you go to the dealership, in case you don't qualify. Second, don't buy a car just for the good financing rate. What good is a great financing rate if you're driving a car you don't want?

Read more in "GM certified used vehicles offers special financing on select GM full-size SUV models."

Top 10 Cars With Worst Car Trade In Value

While buying a new car that has a low depreciation rate can really increase your car trade in value, buying a car that has a high depreciation rate can cause you to lose a ton of its original value very quickly.  This means that you lose money if you ever decide to sell the car.  Properly maintaining any vehicle will insure that its value depreciates more slowly but some models lose their value quickly no matter what.

Here is a list compiled by Consumer Reports of the Top 10 Worst Cars For Depreciation.  If you plan on keeping your vehicle for a long time then depreciation may not be your biggest concern but if you like to trade in your car every few years then you will definitely want to make the depreciation rate a consideration in your purchase.

Here's the list:

1. Ford Freestar

2. Ford Crown Victoria

3. Buick Rainier

4. Lincoln Town Car

5. Dodge Caravan/Grand Caravan

6. Mercury Grand Marquis

7. GMC Envoy

8. Ford Explorer

9. Buick Rendezvous

10. Chrysler Town & Country

Read more in "10 Best And Worst Cars For Depreciation."

Import Car Dealers Have Highest Customer Satisfaction; Domestics Catching Up

The University of Michigan recently released their annual American Customer Satisfaction Index. The index rates all American car sales companies on a scale of 0-100 for their reported customer satisfaction.

Toyota received the highest score for the second year in a row with a score of 87. The industry average is at an all time high of 81. Many domestic companies were able to close the gap with the foreign autos. Buick tied for second place with Honda and Lexus with 86 points. Chevrolet finished mid-pack with 81 and Ford tied last place with Jeep and Kia with 77.

Read more in "US Cars Gain In Customer Satisfaction."

Buick Lucerne Makes Auto Industry News

General Motors has been in the headlines of auto industry news a lot lately, but now the attention shifts back to where it should be: on the new cars. GM is betting big on the success of the impressive Buick Lucerne, a new car that breaks all stereotypes and expectations. Trying to attract a younger crowd, the Lucerne takes a Cadillac DTS platform and gives it a new look. The result is a 275-horse power V6 standard engine that can go from 0 to 60 miles in 7.6 seconds. Not bad for a Buick!

The interior features intuitively placed controls, luxurious details and an impressive audio system that lets you switch easily between AM, FM and XM Satellite radio. Auto industry news sources describe it as "stylish and contemporary," confirming our theory that Buicks aren't for grannies anymore. After a quiet debut last year, the Lucerne will be available at car dealerships this month.

Find more information in "A GM Winner: The Buick Lucerne" - CNN."