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Auto Finance Industry News and Updates

Best Car Color to Buy: Your Car Color & Its Value

Roses are red.

Violets are blue.

Which color car

Is the best one for you?

Didn’t think we’d write you a poem, huh? As much hassle as buying a car can be, it can also be fun. You can bring your dog along to find a pet-friendly ride, test drive coupes and convertibles, and even pick from a rainbow of car colors, especially if you’re looking to buy a new car. Choose the color wisely and you could even help maintain your car’s long-term value.

So, what’s the best car color to buy?

If you’re shooting for resale value, the best car color to buy is the one that’s currently most popular. The more popular the color, the more attractive your car will be to potential buyers down the road. Of course, we know you don’t want to sell your car right now. But according to Kelley Blue Book (KBB), it’s safe to assume that today’s most popular car color will remain in demand for at least five years.

Researchers at automotive paint powerhouse PPG report that monochromatic colors such as white, gray, silver, and black continue to dominate globally. They’re crowd pleasers across the board.

Consumers will likely stick to the established trend for the remainder of 2018 and into  2019, finds coatings supplier BASF, with shades of gray, blue, and green emerging as favorites. According to BASF, these colors appeal to people because they replicate the aesthetics of digital gadgets and technology.

Some of the most popular colors in BASF’s library of hues include “metal’s mettle,” a shade of metallic gray, “kleur,” a deep red, and “centripetal blue,” a subdued dark blue color.

Buy the most popular car color in your state

It’s safe to say that neutral car colors like white, silver, gray, and black are good bets whether you live in Florida or Oregon, Italy or Spain. Other car colors, like orange and purple, are risky bets… unless you happen to live in an area where these colors are highly coveted or hold some level of symbolism.  

If you plan on living in the same general area for a while, you might want to consider buying a car that’s one of the most popular colors in your city/state.

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For example, if you live near James Madison University in Virginia, you can’t go wrong buying a purple car. The city of Harrisonburg, VA has the highest percentage of purple cars in the country. And in Tennessee, orange is the car color of choice. Almost the entire state shows that orange cars are the most popular color cars, likely in support of the University of Tennessee Volunteers.

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Explore car sales trends by color and state using CarMax’s interactive map. What color car is most popular in your state?

Buy the most popular car color for your vehicle type

If your city/state isn’t known for any particular car color or you know you’ll be moving in the near future, consider buying a car color that’s popular for the vehicle type you want, like an SUV, sedan, or sports car.

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According to KBB, the top five colors for SUVs, minivans, and trucks are:

  1. White – 19.3%
  2. Silver – 18%
  3. Black – 12.4%
  4. Medium Dark Blue – 11.4%
  5. Medium Dark Gray – 7.5%

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Silver also tops the list for luxury vehicles, followed by white and dark blue. And while black used to be the most popular color for luxury cars, KBB says black has hit its lowest market in years.

  1. Silver – 32.1%
  2. White Metallic – 17.7%
  3. White – 11.8%
  4. Medium/Dark Blue = 8.6%
  5. Black  – 8.5%

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If you’re shopping for a sedan, wagon, or hatchback, keep an eye out for silver cars, too. Drivers just can’t get enough of silver colored cars!

  1. Silver = 28.1%
  2. White – 11.8%
  3. Light Brown – 11.6%
  4. Black – 11.2%
  5. Medium/Dark Blue = 9.5%

Buy your favorite car color

Green, yellow, red, and blue! Which car color is right for you? In the end, the best car color to buy is the one that makes you happy. You spend about 300 hours a year in your car, so you might as well like what you drive! Shop around and when you’re ready, apply for a new car loan through myAutoloan. We make it easy to compare car loans just as easily as you compare car colors!

New Cars with Lots of Value

Had some great feedback on our last post and we were requested to dig a little deeper on autos that provide real consumer value.  Well, we will give it another shot and extend our scope some.

2011 Lincoln MKZ| Luxury

Frankly, with all the models in the luxury sedans market, having to identify one that seems to have more value is a tough one.  Really did some research in this area and think that the 2011 Lincoln MKZ’s balanced approach wins over the best Germany or Japan offers.  We’re not talking all-out performance, but value. The MKZ is a perfectly competent luxury sedan that comes nicely equipped. It also offers a delicate balance of tout handling and a smooth, comfortable ride.  The 2011 Lincoln MKZ starts at just $34,645.

2012 Ford Mustang | Sports

Well, here we are with another Ford – as I’ve said before, I just love what they have done both in style and in quality.  But this fun to drive Mustang is sporty and very good looking.  Wow, I think I’m in love, lol.  Great looking and an excellent racecar like handling with powerful brakes.  I think it is the best Mustang since the Shelby.  It offer all that I’ve mentioned in a package that everyone can afford – all the while the truck space is so big that you won’t have issues with road trips or shopping.  It’s the ultimate value in the sports car class. The 2012 Ford Mustang starts at just $22,310.

2011 Honda Odyssey| Minivan

Here is a nice minivan with a lot of perks, nice seating arrangements that fold flat and a great compliment to when you need to haul things home from Lowes.  The new Odyssey sports a number of design tweeks that really make the auto appear much sportier and visionary than before.  Nice interior compliments the design but you won’t believe how comfortable this minivan is!  We think it has some excellent value.  The 2011 Honda Odyssey starts at just $28,075.

So what is the best way to get one of these auto financed?  To begin with you will need to compile a list of auto financing options.

Dealing direct is a good way to save money and dealing with a company that searches for the best offers in auto loans is also a good way to go.  Only through requesting and comparing quotes would you have a clearer picture on the various financing options. The time taken is now far less thanks to the net.  Companies like myAutoloan.com provide this matching and multiple offer process.  Again, myAutoloan.com is a proven choice.

Another idea and one of the better options to consider would be a large down payment that would then allow you to qualify for a shorter term and potentially a lower interest rate.  Of course there are also zero down payment options available for those people on a tight budget but they really are hard to qualify for.  You’re going to need good credit to do so.

In most cases the period of the auto loan would be anywhere from thirty six months up to seventy two.  If you were to choose the longest term then the overall cost is likely to be greater than if you could pay back the balance in a short time.  Choosing 48 to 60 months should provide you with the best rates.

Make sure you are clear if the interest rate is fixed or flexible – We recommend that you never take a flexible rate car loan.  Though a fixed rate is easier to understand it may end up costing more over time whereas a flexible interest rate would mimic the prevailing market conditions – so as long as the rates are low, grab a direct loan soon.  Since they are currently low, get it fixed because we all know they are sure to rise down the road.
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GM June U.S. Sales Improve 11 Percent

• GM gains market share in first half of 2011, with sales 192,056 units higher
• June retail sales rise 16 percent year over year, and up 4 percent over May
• Chevrolet Cruze sales surpass 20,000 third straight month; retail sales up 153 percent
• June total sales of full-size pickups increased 15 percent compared to May

General Motors dealers in the United States reported 215,358 total sales in June, an 11-percent gain compared to June 2010 according to a GM press release on Friday July 1. The gain was the result of continued solid retail demand for the company’s wide selection of fuel-efficient vehicles. Retail sales for GM’s brands rose 16 percent for the month, compared to a year ago, and were 4 percent higher than May.

For the month, Chevrolet Cruze had retail sales 153 percent higher than the Chevrolet Cobalt it replaced, and total sales above 20,000 for the third straight month. The 32 MPG highway-rated GMC Terrain and Chevrolet Equinox compact crossovers saw a combined retail sales increase of 78 percent during the month.  Passenger car and crossover retail sales also rose substantially, up 33 percent and 24 percent, respectively.

“With continued strong consumer demand for GM’s fuel-efficient vehicles, June was another solid month for us,” said Don Johnson, vice president, U.S. Sales Operations. “The month caps a successful first half of 2011 for us in the U.S. market – our sales are up and we’ve gained share profitably”, as reported in Forbes’ by Agustino Fontevecchia.

In the first half of 2011, GM dealers in the United States have reported 1,261,633 vehicles sold – a 192,056 unit increase over the first half of 2010 – leading to total and retail market share gains.

Passenger Cars
Total sales of GM passenger cars increased 28 percent during June, compared to a year ago. Retail sales for cars rose 33 percent for the month on the continuing strength of the Cruze, which was up 153 percent compared to the Chevrolet Cobalt it replaced. The Cruze Eco, which delivers an estimated 42 miles-per-gallon highway, accounted for 17 percent of the model’s sales during the month.

For the year to date, retail sales for GM’s full-size pickups are up 12 percent, while total sales of 259,101 units represent a 12-percent increase compared to the first six months of 2010.

Month-end dealer inventory in the United States stood at about 605,000 units, up about 21,000 units compared to May and about 168,000 units higher than June 2010.

It’s so nice to hear good news about the auto industry!  Let’s hope more good news is to follow.

New Car Values

There are simply a whole lot of choices when it comes to new auto.  Here are 3 of the top models for the 2011 year that clearly reflect value in their class.

2011 Ford Fiesta | Subcompact

I love Ford and what it continues to do with innovation.  It’s not like they are the new guy on the block but they have been around and have had their problems with a line up that was really looking “old”.  Now look at them!  They did not take the government handout – didn’t have to and they gained share because of it.  If you want a real bargain in terms of fuel economy, (28 mpg city, 37 mpg highway) this is the real deal – The Fiesta is a bargain and offers a whole lot for just a little.  That’s value!  What the best part?  The 2011 Ford Fiesta starts at just $13,200.

 

2011 Hyundai Elantra | Compact

There has been a lot of conversation about this auto and frankly, it’s deserving of the attention.  They have outdone themselves with great styling, good handling and excellent fuel economy. It’s listed at (29/40 mpg), which establishes a benchmark that others will struggle to achieve anytime soon.  Often overlooked by consumers, this Korean compact is really getting some attention – we think it’s mainly about its low price point compared with it’s Japanese competitors. The 2011 Hyundai Elantra starts at just $14,830.

2011 Kia Optima| Midsize

Many autos have held the prized “King of the Hill” platform and it was only a matter of time before a new challenger would emerge.  The 2011 Optima, according to consumer reports, is well ahead of the Honda Accord this year.  It’s been a deserving dethroning – so much value at a very competitive price.  The EPA ratings for the 2.4-liter 2011 Optima at 24 mpg in the city and 35 mpg on the highway with the six-speed manual, 24 mpg in the city and 34 mpg on the highway with the six-speed automatic.  It’s good looking, with great styling and curves but with a market leading warranty program and excellent mpg, it stacks up as a great to be considering.  The 2011 Kia Optima starts at just $18,995.

You can actually arrange auto financing online for the car you want to purchase.  Online, lenders can give quotes almost instantly.   The you can be at home, the pressure is off, and good, rational thinking can take place and you are in control.   Online lenders also offer more preferential rates than their real-world counterparts; this is because they have less overhead and they are not marking up the finance charge to add more profit.  Some websites, like myAutoloan.com, offer the opportunity to receive up to four quotes within minutes of each other.

The capacity for choice here is significant.  Heck, we all want to have choices and this is the best way to get an auto loan and be in control.  The process works for all 3 of the autos we’ve mentioned today – walk into any dealer empowered because you have your financing pre-arranged.   What this means is that you can literally pick and choose the best auto loan deal for you, and in some cases receive a check by courier the next day, ready for you to walk into the dealership as a cash buyer.

Let us know if you’ve come across some good values or give us some ideas on what you would like to hear about – we’ll do our best to accommodate.

Auto loan Delinquencies up by 21.2% (from 2nd QTR year-earlier)

Yesterday, in an article published by the Detroit News, business and marketing research firm Experian Automotive released data that shows auto loans that are 60 days past due rose by 21.2 percent in the second quarter from year-earlier levels.

In the second quarter, 0.80 percent of car loans were 60 to 89 days past due, up from 0.66 percent during the same period in 2008.  Thirty-day delinquencies rose 14.6 percent in the second quarter to 3.06 percent, up from 2.67 percent the previous year.   Combined, 30- and 60-day delinquencies amount to $25.5 billion in loans at risk.

Why is this significant?  That’s because it prompts lenders to tighten their lending criteria.  The result is that it pushes many consumers out of the market altogether.  Sure some buy used but many just drop the purchase to wait out the strict requirements being applied.

Michigan was among only three states to show a reduction in 30-day delinquencies, according to the study’s findings. The other two were Alaska and Nebraska.

At some point the lending markets has to turn so that pent-up demand eases.  However, for right now, it’s a tough market and consumers are not getting much of a break on the cost of financing, that is unless you’ve got a high credit score.  In the meantime, we all wait.

For the balance of the year SAAR (Seasonally Adjusted Annual Rate) figures will probably close the year out at just under 10 million per month annualized.  Next year by February, we should see things starting to break free.  Let’s hope that prediction holds!