Due to soaring gas prices, Toyota Motor Corp. is expecting a worldwide surge in demand for its economical hybrid vehicles. The company is gearing up for the projected demand for hybrid vehicles as it plans to build three hybrid battery factories. With these new factories, Toyota aims to produce 1 million battery units by 2011.

A nickel-metal battery plant will be built in Northern Japan, while a current nickel-metal battery plant in Shizuoka will be expanded to accommodate the company’s demand projections.
The third plant will be built also in Shizuoka, Southwest of Tokyo, but it will focus on the production of lithium ion batteries.

The plan appears to Nissan Motor Co. recent announcement that it will start mass producing lithium ion batteries.

Lithium ion batteries are touted to be lighter and more powerful than nickel-metal batteries. If production cost hurdles are solved, lithium ion batteries could vey well be the future of mass-produced hybrid and/or electric cars in general.

 Toyota Motor Corp. obviously wants to keep in pace with any possible technological breakthroughs. 

The company is aiming for a global annual sales figure of over 1 million hybrids early 2010: more than double its worldwide hybrid sales of 429,000 in 2007.

Many car buyers are moving towards smaller more fuel-efficient vehicles. With ever-increasing gas prices, buying smaller fuel-efficient cars is no doubt the smart thing to do.

Small and Smart

The smallest among the small sub-compact car category would be the Smart ForTwo (dubbed simply as “Smart”). Does it automatically mean that the Smart car is the smartest choice for people looking to economize?

The Smart car is roughly a foot longer than an E-Z Go golf cart. This means that the Smart car is even smaller than the famous Mini Cooper by a little more than three feet.

Needless to say, the Smart car houses a very small 1-liter 3-cylinder engine that could give you a very respectable average of 36 MPG (33 city/41 highway). The gas mileage of the Smart Car rivals what Hybrid cars could give but at a bargain price of $11,590 - $16,590 depending on the trim.

Aside from the car’s economy, the Smart ForTwo still manages to house two passengers comfortably. Despite its size, the average passenger won’t feel cramped at all.

It’s Smart, but is it safe?

The glaring concern for such a small car, however, would be its safety. Naturally, the want for fuel economy does not outweigh the need to be safe. Saving money from gas expenses is not really a fair trade for a person’s life in any event of an accident.

But contrary to its size—seemingly defying the laws of physics—the Smart ForTwo has passed the safety ratings of the Insurance Institute for Highway Safety (IIHS). The Smart car earned the highest rating of “Good” for front and side safety protection while garnering an “Acceptable” rating for seat and head restraint performance from rear impact tests.

It’s not just in the U.S. where the Smart ForTwo earned commendable ratings. The European New car Assessment Programme (Euro NCAP), considered by some to have the highest standards for safety, gave the Smart car four out of five stars.

You may wonder how a micro-compact car can provide protection from a serious crash. But thanks to innovative use of technology, the Smart ForTwo is able to take a significant amount of punishment. Apart from the standard front and side airbags, the Smart ForTwo is also equipped with seatbelt tensioners and force limiters. These come along with a retractable steering column designed to reduce crash forces that could result to critical internal injuries.

Of course, all these force limiting technology would be useless if the main frame of the car disintegrates during collision. But the chassis of the car, specifically the passenger cabin, impressively withstands 40 mph impacts. Crumple zones placed at the front and at the rear help dissipate the total force upon the initial impact.

The cabin, on the other hand, is reinforced in key areas thanks to the “Tridion Safety Cell”. Therefore, the passengers wouldn’t be crushed inside the cabin during a collision.

Street-Smart Car

However, there will always be skeptics questioning the rating systems. Some argue that safety ratings are based on impacts from cars of similar size travelling at 40 mph. Among sub-compact and micro-compact cars, the Smart ForTwo is no doubt safe “for its size”.

But in the real world where collisions happen between cars of different sizes and in faster speeds, Skeptics point out that the Smart ForTwo may not be as safe as the ratings suggests. There is still the notion that the bigger car will always have an advantage. The Smart ForTwo’s size, as some of the skeptics point out, is a ‘natural’ disadvantage.

But then again, the Smart ForTwo’s size was designed for high-traffic city driving in busy streets. It is small and very mobile, making it easy to maneuver around congested city passageways. How fast do people go during rush hour?

In addition, its very size makes the car easy to park anywhere. In some cases, two Smart cars can actually fit in a parking space designed for standard vehicles. Imagine how commuter-friendly New York could be if people were driving around in the Smart ForTwo?

For this specific feature, the Smart ForTwo is definitely a smart choice if you need a workhorse for urban driving.

In simple terms, your credit score is the measurement of your reliability when it comes to meeting loan term obligations. Credit scores are derived from your credit report wherein your payment history (which includes credit history, debt, credit inquiries, etc.) is recorded in detail. Through mathematical formulas that consider all elements of your credit report, your credit score will be determined.

Lenders use your credit score to judge the risk they face if ever they approve a loan for you. In essence, the lower the score, the higher the risk. To compensate for this risk, lenders would charge a higher interest rate.

Getting a car loan is no different. Your credit score will directly affect the car loan rates and terms that will be available to you. Hence, it is important to know always your credit score before applying for a car loan.

A good credit score would be 680 and above. These scores would yield the most ideal interest rates.

However, many Americans have a credit score lower than 680. As a basic tip, it would be good to try to improve one’s credit score before applying for a car loan. This advice should be taken seriously especially by people with credit scores less than 500. Always remember that low credit scores diminish a borrower’s bargaining power when applying for a car loan.

For those with really bad credit, it doesn’t necessarily mean that you have to improve your credit score to the 700 mark to be able to land a reasonable car loan deal. After all, people with credit scores between 550 and 670 still have a fair chance of snagging a reasonable “bad credit car loan” from willing lenders (and there are quite a lot of them especially if you search online). You just have to be more diligent in searching for reasonable car loan offers. Therefore, if you are a person with scores bordering on 500 and below, at the very least, try to improve your scores to 550 and above.

However, if you currently have a credit score between 550 and 670, do not be contented with your score regardless of the fact that there are reasonable “bad credit car loan” offers available. Always have the mindset of aiming to have a good credit score at all times. This is because having a good credit score is always convenient because you can easily qualify for lower interest rates. Lower interest rates mean lower interest cost, which means more chances of saving more money from the car loan that you got.  Who wouldn’t want that benefit?

To improve your credit score, all you need is to always remember these simple guidelines:

- Always pay your bills on time

- If you have delinquent accounts, make it a point to pay them off as quickly as possible (you might have to stop using your credit card to be able to catch up on delinquent accounts)

- Also, avoid applying for new credit if you are still catching up on your debts and other delinquent accounts.

- Keep accounts with balances open for a long time. Doing so increases your credit history. Businesses view people with longer credit histories as more reliable.

- However, you should discipline yourself to maintain a low credit card balance

- In more extreme situations, it would be good to get professional help.

- In addition, you can contact your creditors for help. There are creditors that provide programs that can ease monthly payments to help you pay off your debt obligations.

If you think that the benefits of buying a brand-new car outweigh those of buying a used vehicle, you might want to check out a few facts that you may have overlooked.

Although buying a new car gives you a near-perfect guarantee of optimum performance, many used cars can actually provide you with the same seal of quality. The value of a new car will also plummet the moment you get it on the road, an important point to consider if you’re paying with a car loan. Although used car loans are bound to have higher interest rates than auto loans for new cars, your long-term savings make it all worthwhile in the end!

For instance, if you buy a new car with an auto loan, the depreciating value of your vehicle will not affect your loan payments in any way. Ultimately, you’ll be paying hundreds of dollars every month to settle a loan for a car that’s no longer worth as much. And although used car loans will definitely have higher interest rates, you’ll be glad to know that in the long run, the difference amounts to just a few hundred dollars, a figure that won’t compare to how much you’ll save by buying a used car.

If you’re anxious about the possibility of buying a lemon, fret no more. The used car market is definitely stricter now, and unscrupulous sellers have fewer chances of duping buyers into purchasing a used car that isn’t in good condition. Vehicle history reports are also available for your scrutiny, and the internet gives buyers a chance to do a lot of research on how much a second-hand model will normally cost. By getting as much information as you can about the car you’re eyeing, you have a better chance of ending up with a used car that’s practically as good as new!

If you’re going to get a used car loan to finance the purchase, then it’s best to check out the rates that loan companies can offer you. Look for a used car loan whose terms aren’t too rigid, and make sure that you take out a loan that you can actually afford; after all, your commitment to pay isn’t just for a couple of months! The last thing you need is more debt piled upon your current loan, so make sure that you don’t overestimate any figures on your end.

Finally, decide on where you might be getting your used car loan. Negotiating with a dealer can have its pluses, but you might also want to check out online lenders who can offer you lower or more competitive rates for a used car.

Here at Free Car Loan Search, we make it so much easier for you to find the best used car loan offers that fit your budget and your needs. Sign up now and take one step closer to getting your dream car!

Planning to get a loan to buy a car? Be smart and avoid these common traps many car buyers fall into:

1. Failing to check your credit score

Your credit score directly affects the loan terms and rates available to you. Therefore, it is important to know your credit score to have an idea of what car loan offers you could qualify for. Knowing exactly what options are available to you may help you avoid getting duped into signing a loan term with a higher annual percentage rate (APR) than necessary.

2. Failing to Research Online

The Internet is the reason why our society is known as the information society. It would surely be a pity for anyone not to take advantage of the wealth of essential information made available through the Internet. And for car buyers, researching online does yield many benefits. Through certain online services, any car buyer can check different car loan offers and assess the going rate of these offers (which in turn equips the car buyer with certain facts useful for negotiating for a car loan deal).

In addition, there are online services that provide access to the history report of specific cars for sale by disclosing their VINs, or vehicle identification numbers. If truth be told, there are cars that get ‘damaged’ during transport from the factory. Some of these damaged cars still end up on the market, thanks to some devious businessmen. Knowing a car’s history helps you avoid purchasing an invalid product.

3. Negotiating a Car Loan Based on Monthly Payments

New car buyers mistakenly think that a lower monthly payment equals a good car loan deal. It is important to note that a lower monthly payment is usually achieved by having a longer loan term. Loans that are extended longer usually yield a higher interest cost at the end of the loan, which means that the borrower actually paid for a larger amount overall.

What a car buyer should consider is the total cost of credit. This can be determined by looking at the loan’s APR. The lower APR always benefits the borrower.

4. Going to a Dealer for a Car Loan

If you don’t have a credit score that allows you to qualify for a zero interest rate offer, going to a dealer is not the best idea. And it is definitely not a good idea if you have bad credit. This is because auto dealerships usually offer a higher interest rate in their financial programs compared to a direct financing setup with a lender.

In addition, dealership programs offer so many extra ‘services’ such as installing an alarm system, window tinting, leather seats, etc. These add-ons are appealing but they also bloat up a car’s sales price. Unfortunately, many are actually persuaded into buying the extras, overpricing the car in the process.

Many new car buyers unwittingly end up paying more than they should for their auto loans. This is because new car buyers are unaware of what to look for when it comes to securing a car loan deal. And because they don’t really have a clue of what a good deal is, they are unprepared when they go to a car dealer. Unfortunately, dealers love feasting on borrowers who don’t know any better.

The reality is that availing a car loan is more complex than just knowing what car you want to buy. Literally, a person could easily save or lose thousands of dollars depending on what car loan he/she gets. The question, therefore, is how do you determine what a good deal is.
First, for starters, know your credit score before applying for a car loan. Calculating one’s credit score can easily be done online.

A person’s credit score is directly related to what car loan rates would be available for that person. The lower the score, the higher the interest rates would be. Knowing what exactly your credit score is gives you an idea of what interest rates you could really qualify for.

Second, it is always best to search for car loan offers online. This allows a person to compare and study different car loan offers easily and conveniently. This gives the person a better chance to shop for the most reasonable deal. In addition, online auto loan offers usually have lower interest rates compared to what dealers offer because online offers are quotes directly from lenders. Applying for an auto loan online is basically another form of ‘direct financing’.

Of course, purchasing a vehicle requires sufficient knowledge of the price of the actual vehicle. Knowing the invoice and the manufacturer’s suggested retail price (MSRP) details should provide a potential car buyer a better chance to negotiate a price that is within the range of the buyer’s liking.

Remember that purchasing a car requires other miscellaneous expenses such as tax and registration expense. Getting as much discount as you can from the MSRP is always a good thing because the total cost of the car will increase anyway once all the other expenses are factored in. If you haggle enough, you might end up having a total cost that is still lower than the sticker price. If not, at least you won’t be paying much more than the MSRP compared to settling for the sticker price straight away.

More and more car buyers are going for economy, choosing smaller, more affordable and fuel efficient cars now that gas prices are reaching record highs.

The shift in demand for smaller vehicles is favoring Asian Car Manufacturers. GM however is still keeping the competition close with three of its car models making the top ten best selling list tying Japanese giant Toyota in the process.

Here are the top ten best selling cars for the month of April 2008:

1. Toyota Camry/Hybrid

MSRP: $18,570 - $28,120

21MPG City / 31 MPG Highway, 33 MPG City/ 34 MPG Highway (Hybrid)

2. Honda Accord/Hybrid

 MSRP: $20,360 - $30,260/ $31,090 - $33,090 (Hybrid)

22 MPG City / 31 MPG Highway, 28 MPG City / 35 MPG Highway (Hybrid)

3. Toyota Corolla /Matrix

MSRP: $14,405 - $16,415

28 MPG City / 37 MPG Highway

4. Honda Civic/Hybrid

  MSRP: $15,010 - $22,460/ $22,600 - $24,350 (Hybrid)

 26 MPG City / 34 MPG Hwy, 40 MPG City/ 45 MPG highway (Hybrid)

5. Chevrolet Impala

MSRP: $21,650 - $29,030

18 MPG City / 29 MPG Highway

6. Ford Focus

MSRP: $14,660 - $16,835

24 MPG City / 35 MPG Highway

7. Nissan Altima/Hybrid

MSRP: $18,330 - $28,380

23 MPG City / 32 MPG Highway, 35 MPG City / 33 MPG Highway (Hybrid)

8. Toyota Prius

MSRP: $21,100 - $23,370

48 MPG City / 45 MPG Highway

9. Chevrolet Cobalt

MSRP: $13,925 - $19,210

24 MPG City / 33 MPG Highway

10. Chevrolet Malibu

MSRP: $19,345 - $26,795

22 MPG City / 30 MPG Highway

With the ever-growing subprime loan market, bad credit car loans are much easier to get nowadays.  Current statistics show that half of all the current car loans are bad credit car loans dealt to borrowers with FICO scores below 620.

The catch, however, as is usually the case for borrowers with bad credit, is that bad credit car loans spawn higher interest rates. This is how lenders compensate for the potential ‘unreliability’ of the borrower, or the risk that the borrower will fail to pay up. But an even bigger catch is that some bad credit car loans plague borrowers with even higher interest rates than what they could have qualified for despite their low credit scores. 

Most of the time, people with bad credit are not aware that they could negotiate for a more reasonable interest rate. In addition, many of the car loans are done through dealers, all of whom are ready to take advantage of those who come unprepared. Dealers usually are pressured to meet designated profit targets from their finance office.

There is an incentive, therefore, for dealers to offer a higher interest rate than necessary because higher interest rates mean higher profit.

As a result, many borrowers end up paying higher interest rates than they should. And they end up doing so because they weren’t aware of much more reasonable offers.

To avoid getting duped into making a bad decision by getting an unreasonable auto loan, borrowers are advised to get ‘direct financing’, where the car buyer goes directly to a lender for a car loan rather than going to a dealer. Doing so will open up much more reasonable car loan offers for people with bad credit.

Free Car Loan Search provides useful information on a variety of car loan offers. Our service allows potential car buyers to compare different offers and calculate in advance which car loan has the lowest APR that they could qualify for.  Searching for a car loan offer in Free Car Loan Search is fast, efficient and most of all, convenient.

Soaring gas prices have forced many Americans to shy away from traditional favorites like pickup trucks and SUVs that seem to consume gas the way desert camels gulp water in favor of smaller more fuel efficient cars. As a result, sales for trucks and SUVs have plunged by 25%.

One of the hardest hit companies with the shift in demand for smaller cars was Chrysler. Its U.S. sales dropped by 23% last April. The company, like auto giants GM and Ford, enjoys a large portion of profit from the SUV and light truck category. The decrease in marketability of such products also means a decrease in profit.

Although America’s Big Three do have some compact car models that have sold well the previous month, the lack of variety in the small car category doesn’t quite stand up against the abundant offering of Asian car manufacturers who seem to cope better with the oil price hike than American car makers.

With gas prices expected to remain high the coming years, American car manufacturers face the risk of further sales drop in the coming months.

In an attempt to induce more sales, Chrysler launched a new campaign with its “Let’s Refuel America” program. The campaign allows car buyers to avail of a gas card that secures gas prices at $2.99 per gallon for the next three years. The company deems the program as protection for Americans from any event of further oil price hikes.

The gas card will be available at 3,511 U.S. Chrysler, Jeep and Dodge dealerships throughout the country. The car products included in the program range from compacts, crossovers, minivans as well as diesel pickup trucks.

The program only lasts until June 2, 2008. To have access to fuel worth $2.99 per gallon, a person must be willing to purchase Chrysler LLC owned production cars within the month.

With gas prices nearing $ 4.00/ gallon, many Americans are shifting to smaller, more economical compact and subcompact cars. For the month of April 2008, one of every five cars sold in total were small cars.

How drastic is the shift in demand for smaller vehicles?

Consider this: For the first time, four cylinder vehicles have outsold their V6 counterparts.

In the small car category, the top ten best sellers are:

1. Toyota Corolla/Matrix: 32,435 units sold
  MSRP: $ 14,405 - $16,415/ $15,410 - $ 17,720
  Corolla: 28 MPG city/ 37 MPG highway, Matrix: 30 MPG city/ 36 MPG highway

2. Honda Civic: 31,710 units sold
  MSRP: $ 15,010 - $22,460
  25 MPG city/ 36 MPG highway

3. Ford Focus: 23,850 units sold
  MSRP: $ 14,660 - $ 16,835
  24 MPG city/ 35 MPG highway

4. Chevrolet Cobalt: 18,636 units sold
  MSRP: $ 13,925 - $ 19,210
  24 MPG city/ 33 MPG highway

5. Toyota Yaris: 11,434 units sold
  MSRP: $ 11,350 - $ 14,450
  29 MPG city/ 36 MPG highway

6. Hyundai Elantra: 9,981 units sold
  MSRP: $ 13,625 - $ 17,325
  24 MPG city/ 33 MPG highway

7. Mazda3: 9,234 units sold
  MSRP: $ 13,895 - $ 20,845
  24 MPG city/ 32MPG highway

8. Nissan Sentra: 8,842 units sold
  MSRP: $ 15,830 - $ 20,260
  25 MPG city/ 36 MPG highway

9. Dodge Caliber (compact wagon): 8,825 units sold
  MSRP: $14,000 - $22,435
  24 MPG city/ 29 MPG highway

10. Kia Spectra: 8,406 units sold
  MSRP: $12,895 - $16,995
  23 MPG city/ 30 MPG highway