Driving Distracted

As you drive to work in the morning, how many other drivers do you see holding cell phones, leaning toward the radio, reading a map, or otherwise not watching the road ahead? These kinds of drivers are an accident waiting to happen. In fact, inattentive driving is the leading factor in most vehicle accidents.

A 3-Second Window

A study by the National Highway Traffic Safety Administration (NHTSA) and the Virginia Tech Transportation Institute (VTTI) found that 80% of accidents and 65% of near accidents occurred when the drivers were inattentive within three seconds before the event. Three seconds is about how long it takes to complete a good breath–a mere instant when you are on a freeway going 65 miles an hour. The study concluded that:

• Drowsiness is a significant problem that increases a driver's risk of a crash or near crash by at least a factor of four.

• The number of crashes and near crashes caused by dialing a cell phone is nearly identical to the number associated with talking or listening.

• Reaching for a moving object increased the risk of a crash or near crash by 9 times; looking at an external object by 3.7 times; reading by 3 times; applying makeup by 3 times; and dialing a handheld device by almost 3 times.
  

Sources: National Highway Traffic Safety Administration and the Virginia Tech Transportation Institute

Employee pricing or zero percent financing? When you get ready to sign on the bottom line, which option should you choose?

Essentially, employee pricing sets a fixed, no-haggle price tag on a vehicle that is about 2-3 percent below the dealer's invoice cost (which may be 10% or more off of the “sticker price”), the reduction typically given to Chrysler, Ford, and GM employees. Besides the employee discount, a potential buyer may apply any applicable rebates or dealer incentive to the lower fixed price. Employee pricing is appealing–GM saw nearly a 50 percent increase in sales over the previous year due mainly to this marketing strategy. But the actual transaction price of the vehicle isn't much different from earlier offers, which included the larger rebates. Additionally, not all vehicles are included in the employee discount plans. Many popular ones, such as Ford Mustang or Chevrolet Corvette, do not qualify.

A more traditional dealer incentive is zero percent financing, in which the buyer purchases the vehicle on credit but does not have to pay any interest on the loan for a specified number of months or years. But there's always the fine print to consider; specifically, the zero percent offer is only for "well-qualified buyers"–those with good credit ratings–who are required to put down a sizable down payment, usually 10 percent.

Assuming that you are buying a vehicle that qualifies for employee pricing but also have the credit worthiness to get zero percent financing, which do you choose?

Compare, and then make your decision.

And the results are . . .

In both of these cases, the buyer is better off paying more (and financing more) at the zero percent interest rate than choosing employee pricing, but financing at 7 percent interest, the usual rate for new cars. However, if a 4 percent interest rate is available, the payments would be just slightly in favor of the employee pricing options.

As always, do your homework before you step onto the lot. There are two Web sites to help you decide which option is better, based on current offers including www.dcu.org/streetwise/auto/rebatecalc and www.bankrate.com/brm/calculators/autos.asp

Sources: Christian Wardlaw of Autobytel and Chrysler Financial

Car buyers often purchase a certain vehicle because it is within their budget, it has specific features, or it matches a lifestyle. But have you ever purchased a vehicle because it would be lower to insure?

Vehicle insurance is based on several factors including what kind of car you drive, how often you drive it, where you live, your age, gender, and marital status, and last but not least, your driving history. An important step when purchasing a new vehicle is to check out the insurance rates with your insurance provider.

Runzheimer International analyzes it even further. We review the cost to repair, how easily the vehicle is damaged, and statistically how often the vehicle is stolen. Listed below are the lowest 2007 vehicles to insure.

Once you've focused on a model or two, call your agent to discuss insurance premiums. And remember your driving history. You may just want to get that safe, no-frills family sedan instead of a racy little sports car to keep your insurance premiums more manageable.

Sources: Runzheimer International, howstuffworks.com/car-insurance.htm, and
motorinsurance.co.uk/news/1307.html

The new Tesla Roadster is not your daddy's car. This brainchild of Silicon Valley entrepreneurs is a high-end, supercharged electric car that zooms from zero to 60 miles per hour in four seconds and reaches speeds of over 130 miles per hour.

Unlike other electric cars, the Tesla Roadster competes with high-end, gas-powered sports cars such as the Ferrari, Porsche, Lamborghini, and Viper–with a price tag to match. What's missing is the roar of the engine because the battery-powered cell is super-quiet.

The Roadster is powered by 900 pounds of lithium-ion batteries. These batteries typically last for about 500 recharges or 100,000 miles. The engine takes about 3.5 hours to fully charge and lasts for up to 250 miles. This is four times better than most electric models. The Roadster can be recharged using a standard household power outlet.

The Roadster carries a hefty $80,000-$120,000 sticker price. Tesla Motors has hopes to sell up to 3,000 Roadsters by the end of 2008. The company says it plans to reinvest the profits from this luxury vehicle into developing more affordable electric models for middle-class Americans down the road.

Sources: 

www.technoride.com

www.teslamotors.com/index.php?js_enabled=1
www.topspeed.com/electric-cars/ke1030.html

Needless deaths and injuries that result from nonuse of seat belts cost society an estimated $26 billion annually in medical care, lost productivity, and other injury-related costs. Keep buckling up, and you will be among the 11,000 people saved each year by the proper use of vehicle restraint devices.

For most drivers and passengers it's a no-brainer. But how do you handle the stubborn few who don't feel it necessary to buckle up? Make a firm, polite request to snap on the seat belt and don't start the car until everyone follows your advice. If that doesn't work, maybe a factoid will: The impact to your body in a 30 mph crash, if unprotected, is equal to falling three stories.

Comfort Increases Usage
For larger people, if the vehicle's restraint system does not fit, the next step may be to purchase an aftermarket restraint system. Some extenders are provided free of charge by the dealer or manufacturer, if requested. Keep supporting documentation with your registration and insurance in the event of a traffic stop or a crash.

Be careful when considering the use of products on the market that claim to make seat belts fit better. They attach to the seat belt but are not a part of the original belt. No federal standard ensuring the effectiveness and safety of these aftermarket products has been developed.

Guidelines for Little Passengers

A child is big enough to use a seat belt when he/she can sit without slouching and knees bent over the edge of the vehicle seat. This is at approximately 8 years old and 4'9". Younger, smaller children should be placed in a belt-positioning booster seat. Forward-facing car seats are recommended until a child weighs approximately 39 lbs. Infants under one year of age and under 20 lbs should always be secured in a rear-facing safety seat.

Air Bags are No Substitute for Seat Belts

Air bags are specifically designed to be used with seat belts. By themselves, air bags are only 12% effective at reducing deaths. Air bags are more effective when you’re buckled up and seated at least 10" away, and when children under 12 are properly buckled up in the back seat.

Sources:
www.NHTSA.dot.gov,www.michigan.gov
www.safe2travel.co.uk
www.aap.org
www.wescoperformance.com