How BLS Measures Price Change for Used Cars and Trucks in the Consumer Price Index #car #id


#used vehicle values
#

How BLS Measures Price Change for Used Cars and Trucks in the Consumer Price Index

Leased Cars and Trucks

The weight of Used Cars and Trucks in the Consumer Price Index is determined by spending on used cars and trucks less trade-ins on new and used vehicles and other sales of consumer owned vehicles.

Pricing. The Bureau of Labor Statistics (BLS) does not collect price information on used cars and trucks. All price information for used cars and trucks used in the CPI comes from the N.A.D.A. Official Used Car Guide (NADA). All prices are adjusted for depreciation of the vehicle.

A monthly price relative is calculated for each observation. The price relative is based on a three month moving average of the current and last two months depreciation adjusted prices. So for month t, we are comparing the price (Dt+Dt-1+Dt-2)/3 to the price (Dt-1+Dt-2+Dt-3)/3, where Dt is the depreciation adjusted price for month t.

Sample Selection

The current CPI sample of used cars and trucks was chosen with the J. D. Power Information Network. This is a network of car dealers who report sales of used vehicles to the J. D. Power Company. From the universe of 2 through 7 year old vehicles, a sample of 480 vehicles was chosen.

The CPI sample consists of 480 observations. These observations are replicated in all of the CPI areas (after tax adjustments).

The sample is updated by one model year each September through November. This maintains the same age vehicles over time. If a production model is discontinued, it is replaced by a comparable model. A complete resampling is scheduled every 5 years.

Quality Adjustments

Quality adjustments are made in the CPI for new and used vehicles based on manufacturers costs obtained by the BLS analysts. The quality adjustments that are made to used cars and trucks are the same adjustments that were made to the vehicles when they were new, they just occur in later years. Because the improvements are assumed to have depreciated at the same rate as the vehicle itself, the adjustment amount applied to used cars and trucks is appropriately depreciated.

Issues associated with used cars and trucks

Although the CPI uses the N.A.D.A. Official Used Car Guide to obtain prices, other sources are available. The two most commonly used sources are the Kelley Blue Book and the Black Book. Information on trends in used car and truck prices can be obtained from several other sources.

Manheim Auto Auctions constructs a price index based on sales at their auctions. These are wholesale auto auctions only open to professional buyers. Manheim runs a chain of these auctions and has thousands of vehicles to use as source data. They do not do adjustments for depreciation or quality changes. The index comes out monthly.

Adesa Auto Auctions is another chain of auto auctions. They have various data available on used car pricing trends but don t have a specific price index available.

Automotive News is a trade publication covering the Automobile industry. It sometimes has information on used car and truck pricing trends

Additional information

Additional information on the Consumer Price Index can be found in the BLS Handbook of Methods. chapter 17, “The Consumer Price Index,” Bulletin 2490 (1997). The current version of this chapter is also available on the BLS Internet site at www.bls.gov/opub/hom/homch17_a.htm or you may call the Information and Analysis Section of the CPI at 202-691-7000.

Last Modified Date: March 13, 2015

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Consumer Reports: The most and least reliable cars #car #rental #germany


#most reliable cars
#

Consumer Reports: The most and least reliable cars

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CONSUMER REPORTS – Consumer Reports has just released this year’s ratings of the most and least reliable new cars and carmakers. There are some big changes this year, with Infiniti dropping most dramatically in the ranks.

The most reliable new car you can buy is the Scion xB. That’s according to Consumer Reports’ reliability survey, which shows data on over a million vehicles. And there’s data on 28 brands as well.

Once again the most reliable brands are dominated by the Japanese, with Lexus, Toyota, and Mazda taking the top three spots. Honda came in at number four.

The four least reliable brands are Dodge, Ram, Jeep, and Fiat, all owned by Chrysler.

Consumer Reports says Chrysler has traditionally had more than its fair share of trouble, and with the addition of Fiat in the mix, it really has not helped. In fact the new Fiat 500L is ranked the least reliable car out of the 248 that Consumer Reports rated.

Some American brands did well. Lincoln shot up 12 spots this year, and Buick made it into the Top 10 list of reliable brands. It is the only American car to do so. GM has been one of the better domestic brands in terms of reliability. And Buick has often been its top brand.

The most reliable SUVs are the Mitsubishi Outlander Sport, the Subaru Forester, the Toyota Highlander, and the Lexus RX.

A few first-year cars, such as the Mazda6 and Kia Cadenza, got high marks for reliability. But most didn’t. So if you’re looking for a reliable car, Consumer Reports says that it’s really not best to buy a car that’s in its first year of the redesign. Wait a year or two until they work out some of those bugs. Case in point, the redesigned Chevrolet Silverado, which Consumer Reports’ research shows had lots of problems in its first year.

Complete Ratings and recommendations on all kinds of products, including appliances, cars trucks, and electronic gear, are available on Consumer Reports’ website. Subscribe to ConsumerReports.org .

(Copyright © 2014 Consumers Union of U.S. Inc. All Rights Reserved.)

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Consumer Reports: The Most and Least Reliable Cars #cars #2


#most reliable cars
#

Consumer Reports: The Most and Least Reliable Cars

Consumer Reports has just released this year’s ratings of the most and least reliable new cars and carmakers. There are some big changes this year, with Infiniti dropping most dramatically in the ranks. (Published Friday, Oct 31, 2014)

Consumer Reports has just released this year s ratings of the most and least reliable new cars and carmakers. There are some big changes this year, with Infiniti dropping most dramatically in the ranks.

The most reliable new car you can buy is the Scion xB. That s according to Consumer Reports reliability survey, which shows data on over a million vehicles. And there s data on 28 brands as well.

Once again the most reliable brands are dominated by the Japanese, with Lexus, Toyota, and Mazda taking the top three spots. Honda came in at number four.

The four least reliable brands are Dodge, Ram, Jeep, and Fiat, all owned by Chrysler.

Consumer Reports says Chrysler has traditionally had more than its fair share of trouble, and with the addition of Fiat in the mix, it really has not helped. In fact the new Fiat 500L is ranked the least reliable car out of the 248 that Consumer Reports rated.

Some American brands did well. Lincoln shot up 12 spots this year, and Buick made it into the Top 10 list of reliable brands. It is the only American car to do so. GM has been one of the better domestic brands in terms of reliability. And Buick has often been its top brand.

The most reliable SUVs are the Mitsubishi Outlander Sport, the Subaru Forester, the Toyota Highlander, and the Lexus RX.

A few first-year cars, such as the Mazda6 and Kia Cadenza, got high marks for reliability. But most didn t. So if you re looking for a reliable car, Consumer Reports says that it s really not best to buy a car that s in its first year of the redesign. Wait a year or two until they work out some of those bugs. Case in point, the redesigned Chevrolet Silverado, which Consumer Reports research shows had lots of problems in its first year.

Published at 3:38 PM EST on Oct 31, 2014


10 best cars: Consumer Reports – Best overall: Lexus 460L (1). #cars #for #sale #nz


#best cars 2010
#

The influential magazine names the cars, trucks and SUVs it rates highest in popular categories.

Price: $70,925

Mileage: 24 Hwy, 16 City

Parent company Toyota has been taking its lumps lately, but the carmaker and its luxury division Lexus still makes some very good vehicles. Case in point: the Lexus LS full-size luxury sedan scores a near-flawless 99 on Consumer Reports 100-point scale.

Toyota’s recall mess has caused some problems, though. Toyota would have had four cars in this Top 10 list instead of just two. Two vehicles — the Rav4 and Highlander SUVs — have had their recommendations suspended as a result of recalls that resulted in “stop sale” orders by the carmaker.

Best over.

Family car

Small car

Sporty car

Small SUV

Family SUV

Green car

Sports se.

Family ha.

Last updated March 02 2010: 4:40 PM ET


Consumer Reports: The most and least reliable cars #touch #up #car #paint


#most reliable cars
#

Consumer Reports: The most and least reliable cars

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CONSUMER REPORTS – Consumer Reports has just released this year’s ratings of the most and least reliable new cars and carmakers. There are some big changes this year, with Infiniti dropping most dramatically in the ranks.

The most reliable new car you can buy is the Scion xB. That’s according to Consumer Reports’ reliability survey, which shows data on over a million vehicles. And there’s data on 28 brands as well.

Once again the most reliable brands are dominated by the Japanese, with Lexus, Toyota, and Mazda taking the top three spots. Honda came in at number four.

The four least reliable brands are Dodge, Ram, Jeep, and Fiat, all owned by Chrysler.

Consumer Reports says Chrysler has traditionally had more than its fair share of trouble, and with the addition of Fiat in the mix, it really has not helped. In fact the new Fiat 500L is ranked the least reliable car out of the 248 that Consumer Reports rated.

Some American brands did well. Lincoln shot up 12 spots this year, and Buick made it into the Top 10 list of reliable brands. It is the only American car to do so. GM has been one of the better domestic brands in terms of reliability. And Buick has often been its top brand.

The most reliable SUVs are the Mitsubishi Outlander Sport, the Subaru Forester, the Toyota Highlander, and the Lexus RX.

A few first-year cars, such as the Mazda6 and Kia Cadenza, got high marks for reliability. But most didn’t. So if you’re looking for a reliable car, Consumer Reports says that it’s really not best to buy a car that’s in its first year of the redesign. Wait a year or two until they work out some of those bugs. Case in point, the redesigned Chevrolet Silverado, which Consumer Reports’ research shows had lots of problems in its first year.

Complete Ratings and recommendations on all kinds of products, including appliances, cars trucks, and electronic gear, are available on Consumer Reports’ website. Subscribe to ConsumerReports.org .

(Copyright © 2014 Consumers Union of U.S. Inc. All Rights Reserved.)

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Are Extended Warranties For Cars Worth It – Consumer Reports #we #buy #junk #cars


#extended car warranty
#

The majority of buyers never use the coverage

Looking for an easy way to save hundreds on your next new car and simplify the buying process at the same time? Skip the extended warranty. The dealer will probably try hard to sell you one, telling horror stories about the thousands of dollars it can cost to replace an engine or transmission. But the odds are you’ll never need the coverage, and even if you do, the money you’ll save in repairs won’t come close to what you paid for the added warranty.

A recent Consumer Reports survey found that 55 percent of owners who purchased an extended warranty hadn’t used it for repairs during the lifetime of the policy, even though the median price paid for the coverage was just over $1,200. And, on average, those who did use it spent hundreds more for the coverage than they saved in repair costs.

Beware of extended-warranty scams

Even if you’re considering an extended warranty, be wary of any solicitation you get through the mail or over the phone. Scammers have found that the warranty business can be very lucrative, and the Better Business Bureau has received thousands of complaints from consumers who have been stung. Typically, the questionable outfits contact an unsuspecting owner whose warranty has just expired or is about to expire.

The impression they want to give people is that they are contacting them on behalf of their dealer or manufacturer, or they are associated with them, which, in fact, they are not,” says Michelle Corey, president and CEO of the St. Louis office of the BBB.

Once they’ve taken the bait, the unfortunate victims often find that their problems have just begun. “They’re not able to read the contract until it’s mailed to them,” says Corey. “They don’t see the conditions, the limitations, or exclusions. Then when they try to use it, they’re informed that pre-existing conditions don’t apply, or they’re told they don’thave maintenance records showing that they followed the manufacturer’s requirements for upkeep.”

The final insult comes when unhappy customers try to get a refund, and they are either refused or only given a prorated amount based on when they signed the contract.

The first step to take to defend yourself against this type of fraud is to contact your dealer to ask whether whoever is trying to sell you coverage is associated either with them or the carmaker. Also ask whether your original warranty really has expired to avoid paying for redundant, overlapping coverage.

Moreover, don’t give your credit-card number or commit to anything over the phone or through the mail without seeing a contract and reviewing what is covered first. And be sure to keep maintenance records and receipts for future reference. Beyond warranty concerns, it may help in selling your car down the road.

If you decide to buy a coverage plan

Peace of mind comes at a price. If you opt for an extended warranty, consider these smart-buying tips.

Don’t buy under pressure. Dealers often try to sell the convenience of rolling coverage into a new-car loan, but that means you may be paying up front for coverage that you already have with the factory warranty. You can purchase an extended warranty after buying the car, although you may find the cost increases as the vehicle ages.

Don’t be afraid to bargain. Among those who purchased an extended warranty, only a third of our survey respondents tried to negotiate a better price for their contract. Most of those who did haggle were successful, saving about $325 on average.

Shop around. You don’t have to buy an extended warranty through a dealership. In fact, you may find a better deal through your auto club or insurance company. But consider this: Satisfaction in our survey was highest among those who bought an automaker-backed warranty.

Go all in. Our survey found little difference in cost between limited and bumper-to-bumper coverage, which is more likely than powertrain plans to include reimbursement for towing, travel expenses, and a rental car. If you’re going to buy, get the full protection.

Read the small print. Before signing, be sure you understand what is covered and where you can take your car for authorized service. Third-party warranties, especially, may have notable restrictions on approved shops. Given how many dealerships have closed in recent years, the availability of participating repair shops is a particular concern.

Consider an extended warranty for the long haul. All cars tend to become less reliable over time, so an extended warranty might be worth considering if you’re planning to keep your vehicle long after the factory warranty runs out.


Consumer Reports – Build – Buy Car Buying Service #car #on #sale


#car buying
#

Car Buying Service Customer Reviews

Sue B. saved $5,126 off MSRP “Love this service! Love my new car! Truly a worry free experience.”

Robin G. saved $5,827 off MSRP “I’m bad at haggling, so it really helped to have a guaranteed price that I could know before going to the dealership, and it was a great price!”

Jack M. saved $1,757 off MSRP “The program saved me thousands of dollars on a new car and allowed me to avoid talking with numerous sales people to get the deal I wanted. Thank you.”

Craig M. saved $3,395 off MSRP “I found the Build and Buy program very helpful for providing me with information that gave me the power to negotiate prices. Several dealers responded and were willing to sell me the vehicle I wanted at or very close to the estimated price your program came up with.”

William D. saved $3,551 off MSRP “It has been 4 years since I bought a new car. I was amazed at how easily three dealers honored the Consumer Reports price. What a great way to start the negotiations. I felt completely comfortable purchasing the car at the Consumer Reports price but I even worked a slightly better deal, at which point I knew it was a great deal.”

William C. saved $2,452 off MSRP “At the time of purchase, I asked our sales person if I had come to the dealership without the Consumer Reports price statement, would I have been able to get – as good as or a better deal. She responded – absolutely not. You did your homework on the Internet and were rewarded!”


How BLS Measures Price Change for Used Cars and Trucks in the Consumer Price Index #2011 #cars


#used vehicle values
#

How BLS Measures Price Change for Used Cars and Trucks in the Consumer Price Index

Leased Cars and Trucks

The weight of Used Cars and Trucks in the Consumer Price Index is determined by spending on used cars and trucks less trade-ins on new and used vehicles and other sales of consumer owned vehicles.

Pricing. The Bureau of Labor Statistics (BLS) does not collect price information on used cars and trucks. All price information for used cars and trucks used in the CPI comes from the N.A.D.A. Official Used Car Guide (NADA). All prices are adjusted for depreciation of the vehicle.

A monthly price relative is calculated for each observation. The price relative is based on a three month moving average of the current and last two months depreciation adjusted prices. So for month t, we are comparing the price (Dt+Dt-1+Dt-2)/3 to the price (Dt-1+Dt-2+Dt-3)/3, where Dt is the depreciation adjusted price for month t.

Sample Selection

The current CPI sample of used cars and trucks was chosen with the J. D. Power Information Network. This is a network of car dealers who report sales of used vehicles to the J. D. Power Company. From the universe of 2 through 7 year old vehicles, a sample of 480 vehicles was chosen.

The CPI sample consists of 480 observations. These observations are replicated in all of the CPI areas (after tax adjustments).

The sample is updated by one model year each September through November. This maintains the same age vehicles over time. If a production model is discontinued, it is replaced by a comparable model. A complete resampling is scheduled every 5 years.

Quality Adjustments

Quality adjustments are made in the CPI for new and used vehicles based on manufacturers costs obtained by the BLS analysts. The quality adjustments that are made to used cars and trucks are the same adjustments that were made to the vehicles when they were new, they just occur in later years. Because the improvements are assumed to have depreciated at the same rate as the vehicle itself, the adjustment amount applied to used cars and trucks is appropriately depreciated.

Issues associated with used cars and trucks

Although the CPI uses the N.A.D.A. Official Used Car Guide to obtain prices, other sources are available. The two most commonly used sources are the Kelley Blue Book and the Black Book. Information on trends in used car and truck prices can be obtained from several other sources.

Manheim Auto Auctions constructs a price index based on sales at their auctions. These are wholesale auto auctions only open to professional buyers. Manheim runs a chain of these auctions and has thousands of vehicles to use as source data. They do not do adjustments for depreciation or quality changes. The index comes out monthly.

Adesa Auto Auctions is another chain of auto auctions. They have various data available on used car pricing trends but don t have a specific price index available.

Automotive News is a trade publication covering the Automobile industry. It sometimes has information on used car and truck pricing trends

Additional information

Additional information on the Consumer Price Index can be found in the BLS Handbook of Methods. chapter 17, “The Consumer Price Index,” Bulletin 2490 (1997). The current version of this chapter is also available on the BLS Internet site at www.bls.gov/opub/hom/homch17_a.htm or you may call the Information and Analysis Section of the CPI at 202-691-7000.

Last Modified Date: March 13, 2015

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Used Car Buying Guide – Consumer Reports #car #painting #prices


#buy used cars
#

Finding the right balance between value and risk

Two- and three-year-old used vehicles are often the best values. Not only is the price lower than a comparable new car’s, but continuing ownership expenses such as collision insurance and taxes are lower, and a two- or three-year-old used vehicle has already taken its biggest depreciation hit. In addition, buying used is a way to get a nicer car than you’d be able to afford new.

But buying a used vehicle means finding the right balance of value and risk. Following are some issues to consider.

Reliability. One thing that has made used cars more appealing is their improved reliability. In an analysis of Consumer Reports’ annual sub­scriber surveys over the past few years we found that five-year-old vehicles had one-third fewer problems than the five-year-old vehicles we looked at in 2007. Years ago rust and exhaust-system problems were common, but that’s no longer the case, and major engine and transmission problems have also decreased, making late-model used vehicles far less of a risk. When properly maintained, today’s vehicles should easily surpass 100,000 miles without a major overhaul, and many could reach 200,000 miles .

Warranties and repairs. Although used cars are more reliable than ever, maintenance and repair costs are important considerations. In the first two or three years of a car’s life, it has fewer problems and is typically covered by a comprehensive warranty. An older used car, however, is usually out of warranty or close to it. You can expect not only more problems as time goes on, but more costly ones as the years and miles pile up.

This means that owners will have to pay for repairs and for wear parts like tires, brakes and batteries. But even if you replaced all those things the moment you bought a used car, the savings over a new car would more than compensate.

There is always the risk that you’ll buy a lemon. Even a car with a great reliability history can be a poor example, or have been abused, neglected, or damaged by a previous owner. By having the vehicle thoroughly inspected by a qualified mechanic, you can protect yourself against nasty surprises.

Depreciation. A major disadvantage of buying a new car is its rapid depre­ciation. Models typically lose about 47 percent of their value in the first three years, com­pared with 24 percent over the next three. But this varies greatly among models.

The BMW 328i. for example, has held its value relatively well (about 40 percent depreciation over the first three years), while the Lincoln MKZ has depreciated more rapidly (about 50 percent).

Several factors determine depreciation, including the model’s popularity, perceived quality, supply, and whether or not the vehicle belongs to the current design generation. The average depreciation on a $27,500 vehicle leaves less than $15,000 ($14,575) after three years, a huge hit in residual value.

Interest rates. Loans for new cars usually have a lower interest rate, but the difference is often not a major concern. In March 2014 the national aver­age for a 60-month new-car loan was about 3.11 percent, according to Bankrate.com; a 60-month used-car loan was about2.80 percent. When rates are within just one percentage point of each other, the additional inter­est you pay on a typical used-car loan adds only about $7 to $15 to the monthly loan payment.

Insurance. You’ll typically pay a bit less to in­­sure a used vehicle than a new version of the same model.

Safety. Buying a used car means you might not get the latest safety features. Features such as electronic stability control (ESC), head-protecting curtain air bags, and advanced frontal air bag systems are hard to find on older vehicles. But ones such as antilock brakes, traction control, and side air bags have been commonplace for quite a few years now.


Consumer Reports: The most and least reliable cars #used #car #worth


#most reliable cars
#

Consumer Reports: The most and least reliable cars

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CONSUMER REPORTS – Consumer Reports has just released this year’s ratings of the most and least reliable new cars and carmakers. There are some big changes this year, with Infiniti dropping most dramatically in the ranks.

The most reliable new car you can buy is the Scion xB. That’s according to Consumer Reports’ reliability survey, which shows data on over a million vehicles. And there’s data on 28 brands as well.

Once again the most reliable brands are dominated by the Japanese, with Lexus, Toyota, and Mazda taking the top three spots. Honda came in at number four.

The four least reliable brands are Dodge, Ram, Jeep, and Fiat, all owned by Chrysler.

Consumer Reports says Chrysler has traditionally had more than its fair share of trouble, and with the addition of Fiat in the mix, it really has not helped. In fact the new Fiat 500L is ranked the least reliable car out of the 248 that Consumer Reports rated.

Some American brands did well. Lincoln shot up 12 spots this year, and Buick made it into the Top 10 list of reliable brands. It is the only American car to do so. GM has been one of the better domestic brands in terms of reliability. And Buick has often been its top brand.

The most reliable SUVs are the Mitsubishi Outlander Sport, the Subaru Forester, the Toyota Highlander, and the Lexus RX.

A few first-year cars, such as the Mazda6 and Kia Cadenza, got high marks for reliability. But most didn’t. So if you’re looking for a reliable car, Consumer Reports says that it’s really not best to buy a car that’s in its first year of the redesign. Wait a year or two until they work out some of those bugs. Case in point, the redesigned Chevrolet Silverado, which Consumer Reports’ research shows had lots of problems in its first year.

Complete Ratings and recommendations on all kinds of products, including appliances, cars trucks, and electronic gear, are available on Consumer Reports’ website. Subscribe to ConsumerReports.org .

(Copyright © 2014 Consumers Union of U.S. Inc. All Rights Reserved.)

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