1955 Chevy Belair on 2040-cars

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Subprime financing on the rise in new car sales, leasing too

We all remember the financial crisis that began several years back. At its core was a splurge of subprime lending for housing loans. The housing bubble burst, triggering a collapse of the mortgage-backed securities market. Apparently, those types of loans still exist in the automotive industry, and the market share for these types of "nonprime, subprime, and deep subprime," loans has grown 13.6 percent compared to the third quarter a year ago.
According to an Automotive News report, high-risk lending expanded to 24.8 percent of total loans in Q3, up from 21.9 percent for this time last year. As this level increased, average credit scores of borrowers dropped to 755, down from 763 a year ago. In that time, the average financing amount increased $90 per vehicle, to $25,963.
At 818, Volvo maintains the highest per-owner credit score, while Mitsubishi has the lowest, at 694. The highest rate of borrowers was at Toyota, with 14 percent of the market, followed by Ford with 13.1 percent and Chevrolet at 11.1.

2014 Chevy Cruze Diesel arrives with 42 mpg for $25,695*

The last time General Motors had a diesel passenger car in the US, it was the 1.8-liter 1986 Chevette. At the 2013 Chicago Auto Show today, GM is unveiling the much-anticipated 2014 Chevrolet Cruze Diesel. The compact bows with a 2.0-liter turbo-diesel four-cylinder engine that boasts 148 horsepower and 258 pound-feet of torque, with full twist coming on at just 2,000 rpm. What's more, the common-rail, direct-injection diesel features an overboost function that allows the engine to deliver up to 280 lb-ft of torque for 10 seconds at a time. Even with 10 more horsepower and 110 more pound-feet of torque than the available turbocharged 1.4-liter four-cylinder in the Cruze, the 2.0-liter diesel engine can return up to 42 mpg (highway) bolted to its six-speed automatic transmission.
If you're counting, that figure meets the less powerful Cruze Eco with a six-speed manual transmission. More importantly, the auto transmission Cruze Diesel matches its main competition, the Volkswagen Jetta TDI, in highway fuel economy. The Cruze 2.0 TD (as it will be badged) can also handle up to 20 percent biodiesel (B20), whereas the Jetta is rated only for B5. General Motors has not released city fuel economy for its newest diesel, but we do know how much it will cost you to jump behind the driver's seat.
GM will kindly ask for $25,695, plus an $810 destination fee. That marks a $2,115 premium over a loaded Cruze LTZ Auto and $2,640 more than the Jetta TDI, though the MSRP will net you a leather interior, 17-inch alloy wheels and an Aero Performance Package, as well as a two-year maintenance plan and five-year, 100,000-mile powertrain warranty. Compared to the gas-powered Cruze, you also lose a couple cubic feet of rear cargo space thanks to a 17-liter diesel emission fluid tank. That urea fluid, which helps put the clean in clean diesel, will need to be refilled at least every 10,000 miles.

GM under fire from safety advocates over braking problem caused by recall fix

Safety experts are lambasting General Motors over what they say is the automaker’s slow notification of owners of certain 2019 sedans and trucks that a recall fix could cause power braking to fail and increase the risk of a crash, the Detroit Free Press reports.  GMÂ’s original recall in December targeted about 550,000 Cadillac CT6 sedans and Chevrolet Silverado 1500 and GMC Sierra 1500 pickups, all from the 2019 model year, over potentially defective electronic stability control and antilock brakes. In that case, GM said the errors would not show up as a diagnostic warning on the instrument cluster. But after GM had done recall work on 162,000 vehicles, about 1,700 owner have complained that their power brakes didnÂ’t work after they had the recall done and then used the OnStar app to start their vehicle. GM then issued a supplemental fix for customers whoÂ’d already had their vehicles serviced. In this case, a diagnostic warning should illuminate saying either “Service Brake Assist” or “Service ECS,” which GM says is a signal that a customer should not drive the vehicle and instead call their dealer, which will tow the vehicle and have it repaired. Safety advocates say the automaker hasnÂ’t gone far enough to protect customers. “The fact that you could potentially start a vehicle and not have brakes is a pretty risky proposition,” Sean Kane, president of the Safety Research and Strategies, which works on auto issues for plaintiffs and governmental organizations, told the Freep. “The fact that they wouldnÂ’t notify owners (sooner) is pretty stunning.” GM told the Freep it was required to notify the National Highway Traffic Safety Administration and file paperwork before it notified customers about the original recall, which was made Dec. 12. It then had to investigate and resolve the problem created by its original recall fix before alerting customers. GMÂ’s call center and dealers are contacting the remaining 900 customers who havenÂ’t yet had the update made to the original recall repair. GM also hired a vendor to send recall letters to the 550,000 customers affected by the original recall notifying them about the update. There are no known injuries or deaths related to the problem. Read the Freep story here.