In such an eventful year as 2015, gas prices have thankfully remained out of the national spotlight. You’ve likely noticed gas was cheaper this past year, but a new study points out just how dramatically prices have changed.
According to AAA, the price of gas averaged $2.40 a gallon in 2015, down from $3.34 in 2014. In total, U.S. consumers saved more than $115 billion on gas compared to 2014. That averages out to $550 per driver.
The picture is even rosier when comparing recent prices to the average $3.49 per gallon we saw in 2013 and $3.60 per gallon in 2012. In fact, 2015 recorded the second cheapest annual average gas prices of the past 10 years. The only time we saw lower prices was in 2009 during the economic recession.
South Carolina benefited from the lowest gas prices in the nation this past year at $2.10 per gallon, down $1 from 2014. The next lowest gas prices were also found in the Southeastern U.S., specifically in Mississippi ($2.14), Alabama ($2.15), Tennessee ($2.16) and Louisiana ($2.18). For the first time on record, California suffered from the most expensive gas prices of any U.S. state, with a $3.16 per gallon average. Not far behind was Hawaii ($3.10), which has traditionally been the most expensive state for gas. Alaska ($2.97), Nevada ($2.86), Washington ($2.73), and Oregon ($2.68) rounded out the list of states with the highest gas prices in 2015.
On December 31, gas prices have dropped even further to a national average of $2 per gallon. Expect more good news for the coming year, as prices could drop another 10 cents a gallon over the next few weeks.
If you live in an area where it snows, chances are you know to scrape the ice off your windows, not to turn on your wipers until the ice around them has been cleared, and other precautions. But what about the ice on your roof?
Sometimes the ice on the roof of your car will melt off by itself, but every once in a while, an entire sheet might come flying off your car. The question remains: should you clear it off before you go driving?
If you’re the guy in the video below, you’d say yes every time.
The dash cam video begins with man driving on the highway in his Saab 9-5. He’s just listening to his radio, filming his drive, when a slab of ice comes flying off the back of an SUV in front of him. The windshield is immediately destroyed, but the driver remains calm the entire time.
However, the windshield wasn’t the only part of the Saab damaged. Thanks to the speed the vehicles were traveling and the weight of the ice slab, the left wiper arm and side mirror were also damaged.
Watch the video below to see just how unreal the whole incident was.
To kick off the seventh season of “Comedians in Cars Getting Coffee” with Jerry Seinfeld, the President himself hops in the passenger seat of a 1963 Corvette Stingray split window coupe. The Silver Blue Corvette with a dark purple interior is powered by a 327-cubic-inch V-8 engine, and was popular amongst astronauts during the ’60s and ’70s. It was the only year with the split rear window, making a unique choice to pick up the President of the United States.
However, when it comes to a spirited ride with Obama, it’s not that easy getting off the grounds of the White House. So after a short jaunt in the Corvette, the duo get stopped by a guard trying to leave the grounds. The drive comes to an end and the President and Seinfeld hop in the back seat of one of Obama’s vehicles.
With the Corvette drive not happening, the two tour the White House, talking about Obama’s daily life being the Commander in Chief. From underwear drawers to getting a spot on Mount Rushmore, not much seems to be off limits.
The banter picks up toward the end of the video, and it closes out with the President getting behind the wheel of the Corvette, for a spin around the grounds. Even Obama tries to exit the White House, but the duo are stopped once again by the guard. “Just tell him you’re the President” doesn’t work after all.
Faraday Future, the somewhat mysterious electric vehicle start-up company, has released a new teaser video ahead of the reveal of its first yet-to-be-named model that will be shown at the 2016 Consumer Electronics Show (CES) in January.
While not much is known about the company, we do know that the company has some lofty goals to be a legitimate Tesla competitor. In fact, the company has hired many former Tesla employees as well as other notable automotive and technology veterans from companies (including Chevrolet, BMW, Lamborghini, Ferrari, Land Rover, and SpaceX).
The company says it will have 300 employees by 2016 and the car will be available to buy by 2017. Faraday Future is investing $1 billion in a new manufacturing plant in North Las Vegas, Nev. to build the new model. The plant is expected to bring approximately 4,500 manufacturing jobs to the Silver State.
Some details about the new car include an estimated 15 percent higher specific energy than a Tesla Model S 85 kW-hr pack, which equates to about 98 kW-hr. Like Tesla, the battery pack will feature a multi-cell design. The modular design allows for mass production as well as cells that can be replaced individually or as a group.
Faraday Future will also invest in in-vehicle connectivity and autonomous driving technology.
Chinese billionaire Jia Yueting, founder of Chinese online video site LeTV, is said to be the financial backer of the company.
General Motors will go to trial in January for what is considered to be the first “bellwether” case in the ignition switch fiasco. A U.S. judge rejected GM’s motion to dismiss the case, paving the way for a trial date of January 11.
During the trial, a jury will hear the case of Robert Scheuer, who allegedly sustained injuries because of an ignition switch defect on his 2003 Saturn Ion. In May 2014, another vehicle forced Scheuer off an Oklahoma highway causing him to collide with two trees. Thanks to a faulty ignition switch, the airbags did not deploy, his suit claims.
The Ion was one of a number of older cars recalled because they can slip out of the “run” position while in motion. In certain cars, the engine may stall and airbags may not deploy in a crash. GM started recalling 2.6 million cars last year to fix the defect, although the company has since admitted to knowing about the problem over a decade earlier. A victim’s compensation program headed by attorney Kenneth Feinberg tallied 124 deaths related to the ignition switches.
The first GM ignition switch trial is only one of six bellwether trials scheduled for 2016, reports Reuters. The results of these cases could determine the fate of future cases involving defective ignition switches.
A rare Ferrari with bodywork by legendary Italian design house Pininfarina is headed to the RM Sotheby’s auction in Paris this February. The 1962 Ferrari 400 Superamerica LWB Coupé Aerodinamico is the first of only 18 examples of the second-series, long-wheelbase models of its kind, and was used as a display model at the 1962 London and Chicago auto shows.
The Ferrari 400 Superamerica was introduced at the Turin Motor Show in 1959, with a 4.0-liter V-12 engine, four-wheel disc brakes, and other tweaks to improve its performance over the preceding Ferrari 410 Superamerica. The first cars rode on a 95.3-inch wheelbase, but when this particular bowed car in London in 1962, Ferrari had switched to a 102.4-inch wheelbase. The car’s bodywork, designed by Pininfarina, was notable for its aerodynamic fastback tail, open-mouth nose, and graceful front fenders.
After its appearances at the aforementioned auto shows, this 1962 Ferrari 400 Superamerica changed hands several times in the U.S. before being purchased by a Tokyo-based collector in the early 1980s. In the early 2000s, the car was imported to the U.S. again and subsequently sold to a European owner.
RM Sotheby’s does not have an estimate for this car’s value at auction, but bidders can expect to pay a healthy sum for this car, especially given its interesting provenance. Earlier this year, a 1957 Ferrari 410 Superamerica sold for $5.1 million at auction, while a 1962 Ferrari 400 Superamerica SWB Cabriolet raked in $7.6 million.
Every car deal has two 800-pound gorillas in it . . . but no one talks about them. Instead, all anybody wants to talk about is that little monkey sitting off to one side named Discount.
What are these 800-pound gorillas called? Well, one is called Rate, and the other is called Term. And their joy in life is tag-teaming your bank account.
I’ve seen people shop for months to find what they think is the best price. I’ve seen people come into my dealership and fight for three hours for an additional $500 off. I’ve seen people “blow out” — leave in a huff — over $1.25 in payments (that’s 4 cents a day, folks). And then I’ve seen the very same people walk into F&I (Finance & Insurance), and agree to financing that costs them thousands. Why? Because they didn’t know where the real money in a car deal is.
By far the biggest amount of money on the table in any car deal is what is made in the F&I office. I’m not just talking about the products they sell; I’m talking about the cost of borrowing money. If your rate is high and your term is long, you can wind up paying many, many times what you saved in discounts.
Let‘s start with the interest rate. Say you’re buying a $27,000 car. You ask for $4,000 off, but the dealer says no. You compromise and settle for $2,000 off, ending up with a final price of $25,000. (Obviously, I’m greatly simplifying these numbers.) Now let’s take a look at the effect of the interest rate on your $25,000:
Amount Financed
Term
Interest Rate
Total Amount Paid
$25,000
5 yrs. / 60 months
0.0
$25,000.00
$25,000
5 yrs. / 60 months
0.9
$25,576.20
$25,000
5 yrs. / 60 months
1.9
$26,226.00
$25,000
5 yrs. / 60 months
2.9
$26,886.60
$25,000
5 yrs. / 60 months
4.9
$28,238.40
$25,000
5 yrs. / 60 months
6.9
$29,631.00
$25,000
5 yrs. / 60 months
8.9
$31,065.00
The first thing to notice is that there is a swing of $6,065 between zero percent and 8.9 percent. So if Joe Schmo has poor credit and the best he can qualify for is 8.9 percent, Joe will be paying a lot more for his car than the guy who qualifies for 0 percent. And if Joe has really bad credit — like, car salesman bad — he might end up with a rate around 14.9 percent. In that case he’s paying $35,606.40 for his $25,000 car– or $10,606.40 more than the person with excellent credit. Ouch.
Now, let me stop here and say this: If the best rate Joe qualifies for is 14.9 percent, that isn’t the dealership’s fault. Maybe that rate is the result of Joe’s poor choices. Or Joe may have lost his job and been unable to find work, or was hit with a serious illness. Who knows? People have bad credit for many reasons, and having bad credit doesn’t mean you’re a bad person. It just means you won’t qualify for a better rate until your credit history improves.
But car dealers normally don’t try to jack someone up eight to 14 points. A person with a 750 credit score usually knows they have good credit, and knows what they qualify for (or close to it). So normally a dealer may try to hold two or three points on a qualified buyer. Let’s say the lender tells the dealership they’ll buy the customer at 2.9 percent (the “Buy Rate”), but the dealer wants to make a little money so they mark up the Buy Rate two points and list you at 4.9 percent. If you take it, you just left $1351.80 on the table. Not a huge amount, but that’s three car payments. Or one house payment (for some people). Yet people will fight a salesman over $100 on the “front end” (the price of the car), and give up $1350 on the “back end” (financing). Doesn’t make sense, does it?
Let me stop again and say there’s nothing wrong with the dealership making money off of financing. All lenders do. And they should make money off financing. They’re providing you with a valuable service — they’re loaning you $25,000 for five years — and you should be willing to pay for that service. If you think the bank or the credit union who approved you at 1.9 percent isn’t making money on your loan you’re kidding yourself. They make money on every loan, or they wouldn’t be in business for very long, even credit unions. But a car dealership or a lender shouldn’t be allowed to make an excessive amount of money on a loan. How you determine what’s “excessive” is up to you.
That was Rate. But remember, these gorillas like to work in tandem. So let’s mix metaphors a bit and look at the other wrestling champ waiting to hit you with a steel chair and piledriver you: Term. How long should you finance a car? In the 1960s, the average car loan was 24 months, or two years. Five-year loans were unheard of. But today, most people finance vehicles for five to six years. The reason is simple: It lowers your payment. But in the end you pay a lot more for your car. Let’s take a look at what adding just one year to a car loan will do to you:
Amount Financed
Term
Interest Rate
Total Amount Paid
$25,000
6 yrs. / 72 months
0
$25,000.00
$25,000
6 yrs. / 72 months
1.9
$26,471.52
$25,000
6 yrs. / 72 months
2.9
$27,267.84
$25,000
6 yrs. / 72 months
4.9
$28,905.12
$25,000
6 yrs. / 72 months
6.9
$30,602.16
$25,000
6 yrs. / 72 months
8.9
$32,356.80
Here’s how it works. Let’s say you’re trying to reach a payment of $400 a month. You and your spouse have looked at your budget and decided this is the most you’re willing to pay. Of course, you’d really like to be $350 or less, but you haven’t found a car you like for that amount. So you’ve reluctantly accepted the fact that you might have to go as high as $400. (Of course, you don’t tell the salesman that!) But you’ve been shopping for six weeks. You’ve visited 14 different dealerships in four different states, spent more time doing on line “research” than it took Alexander Graham Bell to invent the telephone, and beaten the poor car salesman over the head with your TrueCar stick so hard it actually broke off in your hands. You know you’re looking at a fantastic deal — but you’re still at $459.29 a month, which is $60 more than your max. What do you do? The salesman humbly suggests 72 months. That will cost you a point in rate (typically the longer the term the higher the rate), but it puts your payment at $401.46. Hell, you can do that. Give me that pen!
But what have you really done? What you’ve done is, you’ve just agreed to pay $1347.72 more for the car than you would have paid if you financed for 60 months. Not only that, you’ve also just guaranteed – guaranteed — that you will be “upside down” when you decide to trade it in 4 or 5 years from now. Is this a bad thing? Not necessarily. For many people, their household budgets are so tight that having an extra $58 in their pocket every month is more important than spending an extra $1347 over the next six years. So I’m not saying don’t do it. I’m saying know what you are doing.
So, like Randy Savage jumping off the top rope to deliver a devastating elbow drop, or Brock Lesnar slamming you into the ground with a suplex, these are the brutes waiting to stomp you into the mat whenever you buy a car. The best way to defeat them is one, start building better credit now, and two, don’t just concentrate on the discount. Think about interest rate and the length of the loan, too. And if you qualify for a spectacular rate like 0 percent at 72 months, don’t bother asking for a huge discount as well. You can get one or the other, but not both.
If you require a vehicle with a cavernous interior, chances are you’re already looking at crossovers, SUVs, minivans, and large wagons. While larger vehicles offer more space, there are sacrifices, namely in maneuverability and handling. You won’t be as agile on the road, especially if you’re higher off the ground. But before you decide, give a smaller car some thought. One of the growing trends in compact cars is to package them so well that you don’t need to move to a larger vehicle to get plenty of room in the cabin for hauling the family or going to Costco. From hatchbacks to sedans and small wagons, here’s a selection of 15 compact cars that offer spacious interiors for all your hauling needs plus five honorable mentions, and they’ve been arranged based on passenger volume from lowest to highest.
Mini Clubman
Passenger Volume: 92.5 cubic feet Cargo Space: 17.5 cubic feet behind the second row; 47.9 cubic feet with second row folded
Returning bigger than ever for 2016, the Mini Clubman is now the largest vehicle in the funky British brand’s lineup. More of a small wagon than a hatchback, the new Clubman is longer, wider, and comes with four actual doors and seating for up to five passengers. The rear split barn doors remain but behind them is increased cargo space thanks to the new car’s bigger size. 40/20/40 split-folding rear seats are also available as an option so you can maximize the space.
Volkswagen Golf
Passenger Volume: 93.5 cubic feet Cargo Space: 22.8 cubic feet behind the second row; 52.7 cubic feet with second row folded
Thanks to its more conservative exterior design, the Volkswagen Golf offers plenty of interior space wrapped in a compact package. The versatile cabin has standard split folding rear seats, so you’ll be able to haul a nice mix of people and gear. Should you want a hatchback that’ll get your pulse racing, the Golf GTI and Golf R will give you a nice injection of fun without sacrificing practicality. New Golf features for 2016 include a new infotainment system with Apple CarPlay and Google Android Auto compatibility so you can let your mobile device take over the car’s multimedia interface.
For those averse to hatchbacks, the Volkswagen Jetta offers midsize sedan space in a compact package. You and your passengers will also enjoy the extra legroom on long road trips. If you need to haul more than what the car’s trunk can hold, the Jetta can be had with 60/40 split folding rear seats to increase cargo capacity. There’s a Jetta for everyone, from a frugal hybrid for the eco-conscious and the fun-to-drive GLI for the car enthusiast who wants a trunk. Like its Golf sibling, the Jetta also gains a new infotainment system for 2016 that has Android Auto and CarPlay compatibility on all but the entry level variants.
Nissan Versa Note
Passenger Volume: 94.1 cubic feet Cargo Space: 18.8 cubic feet behind the second row; 38.3 cubic feet with the second row folded
No, the Nissan Versa Note isn’t the most interesting car to drive, but for people looking for affordable transportation with plenty of space for passengers and gear, this one’s hard to beat. Higher trim levels of the Versa Note come with the Divide-N’-Hide adjustable cargo for maximum flexibility, meaning you’ll be able to configure the car’s interior as you see fit so you can cram whatever mix of cargo and people you have.
Volkswagen Golf SportWagen
Passenger Volume: 94.3 cubic feet Cargo Space: 30.4 cubic feet behind the second row; 66.5 cubic feet with the second row folded
The Volkswagen Golf SportWagen offers interior space that can shame many compact crossovers/SUVs. With up to 66.5 cubic feet behind the front seats, Ikea shopping sprees won’t be an issue in this small wagon, and should you need to haul the entire clan, there’s still plenty for you work with when the split-folding rear seats are in use. Think of the Golf SportWagen as the anti-SUV because it proves you can have a family car that’s spacious, fuel efficient, fits anywhere, and is fun to drive.
While the current-generation Chevrolet Cruze is on its way out, it remains a good compact sedan that puts comfort first. This means on the road, you’ll be able to sit back and relax in the car’s roomy interior while the large trunk means you won’t have to leave anything behind. Available with a 1.4-liter turbo-four or an efficient 2.0-liter turbodiesel, there’s something for everyone from the daily commuter to the hypermiler. If you’re averse to the idea of owning a diesel-powered compact sedan, there’s also the Cruze Eco, which is rated at 28/42 mpg city/highway when equipped with the six-speed manual. Look for the second-generation 2016 Cruze to go on sale next year and expect it to come packed with all the latest tech features including Android Auto and CarPlay compatibility.
Honda Fit
Passenger Volume: 95 cubic feet Cargo Space: 16.6 cubic feet behind the second row; 52.7 cubic feet with the second row folded
Think of the Honda Fit as the hatchback worthy of a PhD in interior packaging. Its Magic Seats enable you to split and fold the rear seat cushions, adding an extra layer of practicality while the flat-folding front seat allows you to stick a surfboard in the car or use it as a leg rest while you sit in the back lounging. All that practicality turns the Fit into the perfect urban hauler because its small size, nimble handling, and peppy engine make it plenty fun to drive in the city.
A compact sedan designed with sensibility in mind, the Nissan Sentra proves you don’t need to jump up to a midsize sedan or a crossover if you need a car for family duty. While its looks may not stir the soul, the Sentra performs its mission well, meaning your passengers won’t be cramped and you don’t have to leave any stuff behind. A face-lifted model with new headlights and a full suite of active safety systems including automatic forward emergency braking, adaptive cruise control, blind-spot warning, rear cross-traffic alert, and Active Understeer Control will go on sale next year.
Hyundai Elantra GT
Passenger Volume: 96.1 cubic feet Cargo Space: 23 cubic feet behind the second row; 51 cubic feet with the second row folded
While it’s up next for a redesign after its sedan sibling, the Hyundai Elantra GT remains practical for families thanks to its spacious and flexible interior. Rear seats that split and fold completely flat give you plenty of room to work with when hauling your family and their gear. There’s also no shortage of convenience and tech features thanks to a generous array of equipment including a large panoramic sunroof, heated seats all around, ventilated front seats, and an infotainment system with a 7-inch touchscreen and available navigation.
Mazda3 Hatchback
Passenger Volume: 96.4 cubic feet Cargo Space: 20.2 cubic feet behind the second row; 47.1 cubic feet with the second row folded
Revered for its engaging handling and fun-to-drive nature, the Mazda3 remains one of the top compact cars and the driver’s choice for the segment. In short, this is the car that’ll let you have your cake and eat it too, offering great driving dynamics in a package that’s attractive and able to hit more than 40 mpg on the highway. The available hatchback body style offers the most interior volume and gives you plenty of space for your belongings and your friends.
Even though it’s one of the slower-selling vehicles in the compact class, the Dodge Dart comes with a spacious interior that makes it one of the roomiest in its class. However, due to the swoopy styling, keep it to two rear passengers because whoever gets that center seat will be hunching over 99 percent of the time to avoid bonking their head into the ceiling when you hit a bump. For eco-minded folks, there’s the Aero model, which comes with a 160-hp 1.4-liter turbo-four that can be paired to a 6-speed manual or a twin-clutch gearbox with the latter good for 28/41 mpg.
Known more for its bulletproof reliability than for jump starting enthusiasts’ pulses, the Toyota Corolla offers exceptional fuel economy wrapped in a package that has a small footprint and an interior that rivals midsize cars. Step inside the Corolla’s cabin and you’ll be met with plenty of space for you and your passengers to stretch out in and relax. Need even better fuel economy? Consider the Corolla Eco, which is rated at 30/42 mpg with the CVT, allowing you go further before stopping for gas.
Subaru Impreza hatchback
Passenger Volume: 97.5 cubic feet Cargo Space: 22.5 cubic feet behind the second row; 52.4 cubic feet with the second row folded
In the compact class, the Subaru Impreza hatchback is one of the most practical entries thanks to an interior that can swallow a lot. The standard Symmetrical AWD system also makes the Impreza unique because it gives you all-weather capability in a package that’s compact and fuel efficient. This means no matter what Mother Nature throws at you—especially if you live in a four-season state—you’ll be able to handle it with ease. Look for an all-new Impreza to debut sometime at the end of next year.
Honda Civic
Passenger Volume: 97.8 cubic feet Cargo Space: 15.1 cubic feet (14.7 cubic feet on the Touring grade)
No longer the bland, uninteresting compact car it used to be, the tenth generation Honda Civic now offers a class-leading balance of fuel economy, handling, space, and features. Since the car has grown in size, the cabin has gained more interior space and the Civic is now considered a midsize vehicle. In addition to the sedan and the coupe that was revealed at the 2015 Los Angeles Auto Show, a four-door hatchback will arrive for the first time in the U.S. and will be revealed after the performance-minded Si models. Look for the insane Civic Type R to arrive in the U.S. for the first time sometime in 2017/2018.
Kia Forte5
Passenger Volume: 98.2 cubic feet Cargo Space: 23.2 cubic feet behind the second row; 56.4 cubic feet with the second row folded
Among hatchbacks in the compact class, the Kia Forte5 offers the most cargo space and passenger volume, giving it a cabin that rivals larger cars. Style isn’t sacrificed in the name of practicality because the Forte5 remains one of the best-looking compact hatchbacks on sale today. Should you be looking for more oomph, the Forte5 SX comes standard with a 201-hp 1.6-liter turbo-four that makes it one of the quickest cars in its class. You’ll also enjoy using Kia’s UVO infotainment system since it’s one of the easiest on the market to master.
Honorable Mentions
While these cars didn’t make the cut for one reason or another, they deserve an honorable mention because they offer plenty of cargo space and practicality in packages that are compact and easy to live with.
One of the newest entries into the compact car segment, the Scion iM is a rebadged version of the European- and Japanese-market Toyota Auris. Essentially replacing the Toyota Matrix, the iM offers practicality and fuel economy in a package filled with plenty of standard features including a TFT display, a 7-inch touchscreen, a rearview camera, and a Pioneer audio system.
Like its hatchback sibling, the Kia Forte sedan offers midsize space in a compact package. However, unlike the hatch, the sedan is more focused on comfort and getting great gas mileage with its less aggressive wheels and tires, and less powerful but more fuel efficient engines. Should you decide to go on a road trip with friends or go on a shopping spree, there’s plenty of space in the car’s trunk and in the cabin for a mix of people and gear.
As one of the first compact cars to come with an interior that rivals larger vehicles in terms of space, the 2017 Hyundai Elantra sedan continues to be one of the roomiest in its class. For the environmentally conscious, Hyundai has added an Eco trim that promises to be the most fuel efficient model in the Elantra lineup thanks to a downsized 1.4-liter turbo-four mated to a seven-speed twin-clutch gearbox.
Like its hatchback sibling, the Subaru Impreza sedan offers exceptional passenger space for you and your friends. With its standard AWD system, you’ll also be able to go anywhere regardless of the weather thanks to the extra traction it provides. The trunk, on the other hand, is on the small side, so you may want to pack slightly lighter than normal.
Fiat 500L
Passenger Volume: 98.8 cubic feet Cargo Space: 22.4 cubic feet behind the second row; 68 cubic feet with the second row folded
While it’s technically a tall hatchback, the Fiat 500L is more like a shrunken minivan that has a cavernous cabin and second-row seats that split, fold, and tumble forward for maximum carrying capability. All that space, however, comes at the cost of style because the 500L has odd proportions and a polarizing exterior design.
With all these new cars that are compact on the inside but spacious on the inside now available or going on sale in the near future, which of these cars would you pick for hauling people and gear? Tell us in the comments below.
