The pain at the pump has drivers trading in their SUVs for smaller cars and hybrids. But for those that are in the market for an SUV, there are some steals and deals out there.

It’s all about gas savings. Chrysler is featuring a gas guarantee — they will lock in your gas at a certain price if you buy one of their vehicles. Other local dealerships are giving gas cards away.

But the real deal is the discounted prices on SUVs.

Glennard Dare of Mishawaka says he and his wife have no choice but to drive an SUV.

“We’ll have to keep the SUV because we are handicapped and we have a lift in it for our handicapped scooters,” he explained.

For whatever reason you may want an SUV, Chip Basney with Basney Honda says it’s a buyer’s market right now. He says pain at the pump has buyers getting more bang for their buck.

“Prices on SUVs — you normally spend $20,000 last year; now you can buy that same truck for in the $13,000-range,” he said.

A 2005 Honda Pilot is selling for about $3,000 less than Kelley Blue Book value.

These gas guzzlers have sales people eager to roll them off their lots.

“We are doing everything to get rid of them right now basically,” one salesperson told WSBT News.

Regardless of what vehicle you buy, we’re told you always want to get a CARFAX report on any used vehicle to make sure it hasn’t been in an accident, and always take the vehicle to your local mechanic to have it inspected.

The financing arm of Ford Motor has traditionally been a cash cow for the auto maker, buoying it during periods of weak auto sales. Now the auto lender, faced with falling asset quality and burgeoning provisions for credit losses, may have to tap its parent for help at a time when Ford Motor is reeling from a sales slump and deeper production cuts.

“There’s cause for concern as the deterioration in asset quality could exceed levels we’ve seen in previous cycles,” says Mark Wasden, a debt analyst at Moody’s Investors Service. “Ford may find itself in the unusual position of needing to inject support into Ford Credit. This is a measure of the strategic importance that Ford Credit has for Ford.”

Ford Credit once paid billions of dollars a year in dividends to its parent, including a total of $US16.7 billion ($17.5 billion) from 1998 to 2006. But Ford Credit didn’t make a payout to Ford in 2007 and, because of its expected loss, doesn’t plan to make one this year, contrary to the unit’s earlier predictions.

Ford Credit’s problems come at a time when declining sales of profitable pick-up trucks and SUVs are hurting its parent. On Friday, Ford said it would slash its production for the rest of the year and reduced its earnings guidance.

“Specifically, we expect deteriorating residual values of lease vehicles to be lower than original expectations,” said Brian Johnson, an analyst at Lehman Brothers, in a report.

Mr Johnson estimates Ford Credit may need to write down $US1.1 billion related to price declines in SUVs and pick-up trucks.

Standard & Poor’s Ratings Services warned it will likely cut the credit ratings on the three US auto makers and their finance arms, due to weakening sales and concern over their cash flow.

“It’s hard to imagine what else you can throw into the mix to make things worse for the company,” say Efraim Levy, an equity analyst at S&P.

Mr Levy now expects Ford to post losses of $US1.63 a share this year.

Moody’s changed its ratings outlook on Ford, its credit business and Chrysler to negative, the first step toward a possible ratings downgrade.

The debt of Ford, Ford Motor Credit and General Motors also sank. Ford’s 7.45 per cent bonds due July 2031 were off 4.5 points, to trade at a distressed level of US61 cents. Ford Motor Credit’s 8 per cent bonds due December 2016 were off more than 2.5 points at around US76c. The bonds of the auto lenders have been considered benchmarks in the junk-bond market.

One factor in the problems of auto lenders is the declining residual value for pick-up trucks and SUVs, which are worth far less than had been assumed just a few months ago.

The rapidly shifting dynamics in the US auto industry - with petrol surging above $US4 per gallon and economic uncertainty on the rise - have battered sales of large vehicles that have long been the profit centres for the US auto industry.

Stuck holding the bag are dealerships and auto finance companies such as Ford Motor Credit, GMAC and CitiFinancial Auto, the auto finance unit of Citigroup, that are trying to sell inventories of thousands of these vehicles as they come off leases or are repossessed from owners unable to keep up with their car payments.

Under car lease agreements, these companies typically take vehicles back at the end of the lease period and sell them to dealers at discounted prices based on estimates of residual values. In the case of a lease, residual value is the worth of a car at the end of the lease period.

Residual value is calculated at the beginning of a car lease and is the primary determinant of monthly payments. Often times, aggressive residual values are used in order to lower the monthly payments through the lease period. This can result in the car being worth less at the end of the lease period than what its residual value suggests.

In other words, the auto leasing company is pushed into selling the car at a loss. And this loss is likely to be exacerbated if accompanied by falling market prices for the car as it further depresses its value.

Ford Credit should “closely monitor all the risks they have in their current and future portfolios, for both leases and loans,” says Matt Traylen, a senior director of economics and portfolio services at Automotive Lease Guide.

Shares of Ford closed down US51c Friday, off 8 per cent, to $US5.81.

Federal safety regulators at the National Highway Traffic Safety Administration (NHTSA) report that the trucks do not conform to Federal Motor Vehicle Safety Standard imposed to maintain “fuel system integrity” and prevent fuel spills.

NHTSA warned on its Web site that single-rear-wheel versions of the trucks with 4-wheel drive and the 156-inch wheel base, equipped with a two-piece drive shaft contain a fuel tank system that can rupture or leak in a crash.

“During a 30 mph frontal impact into a rigid barrier, the fuel tank can move forward and contact a frame cross member, potentially causing damage to the fuel delivery module which can result in fuel spillage,” according to the NHTSA Web site.

The federal safety agency warned that “fuel spillage in the presence of an ignition source could result in a fire.”

Ford dealers will install a bracket in the trucks to remedy the safety problem when the recall gets under way in late May.

Peter Turner, spokesman for the New Brunswick Dump Truck Association, also said yesterday that a much larger protest is planned for Fredericton next week.

“We want to get out as many people as we can,” he said of the Fredericton demonstration.

The association, which claims to represent 1,200 truckers, says that high fuel prices make it impossible for private dump truck operators to make a living based on what the provincial government currently pays.

Last week, the association announced a boycott of government work.

“We are going to stay parked, said Turner yesterday.

“We are doing the safe thing by pulling our trucks off the road because we can’t afford to keep our trucks safe.”

He also said the truckers, who protested at a job site near Moncton earlier this week, will block other highway projects in the future.

Turner said the truckers thought they had reached a deal last month to avoid a boycott in which the government would pay for work by the hour instead of by the distance and weight of the material carried.

“They breached their contract with us,” he said.

But Transportation Minister Denis Landry said there was no such deal.

The truckers say they need another 20 per cent raise to go back to work.

Landry said that would cost the government $100,000 per percentage point.

If you are looking for a newer used truck, you should try to find one that is less than three years old, if possible. The depreciation rate is the reason for this guideline. Immediately after any car or truck leaves the lot brand new, it depreciates faster than it will for the rest of its life, and then the rate slows and levels off at about 3 years.

You can get a good idea of what you can afford for your used truck by using an online financing calculator. You simply enter the amount of the loan (do not forget to subtract any trade in value or down payment from the purchase price) and then put in the current interest rate and the length of financing.

Always check the Blue Book price for any used truck you are thinking of buying. If the price you are being offered on the used truck is a lot lower than what you find or a lot higher, you can ask questions to find out the reasons.

Don’t try to buy more used truck than you need or can afford. If you are a professional who uses a truck to haul heavy materials from location to location or around your work site, you may need a full-size, heavy duty truck. But, if you are going to be using it to haul groceries or an occasional sofa, you can probably get a mid-sized or compact pick-up.

Use caution when buying a used truck from a private seller. You may become the victim of identity theft or some other crime. Make sure that you not only check the identity of the seller, you also should check out the truck with a mechanic of your choice and also on a service which checks to see if your car has had any reported problems or been in an accident.

A dealership may offer higher prices than a private seller, but you will probably get some type of warranty and you can purchase an extended warranty if you choose. A dealer will often have on site financing as well. Talk to people you know who have recently bought a used car or truck to get names of good reputable dealers-this is a great way to get a firsthand account of the dealer.

Increasing gas mileage is normally a grouping of altering driving practices and offering appropriate repairs for the truck. No solitary practice or skill presents an incredible soar in gas mileage, however when made use of it in arrangement the savings in gas expenses can be noteworthy. If your wondering how can I get better gas mileage for my truck, apply any or all of the 4 methods below will get you going in the right direction to improving your truck’s gas mileage.

4 Efficient Ways to Improve Gas Mileage:

The basic method to perk up gas mileage is to drive reliably. Violent driving methods for example following closely, continuous track shifting, peeling out, and competing all the way through the yellow lights entail the driver to increase speed without cause or irresponsibly. This represents gas that should have encouraged the truck to move ahead is currently being exhausted on abrupt initiations and halts. To improve gas mileage, a driver must learn to glide with the traffic and look forward to circumstances which may perhaps need unexpected halts. By watching the traffic lights and keeping away from red light ends, a driver can improve his or her gas mileage by a small number of miles.

The second technique to improve truck gas mileage is to evade speeding. Trucks are planned to attain highest fuel competence at pace underneath the existing official restrictions, so even keeping pace with active traffic can indicate a major loss in gas mileage. Even though it stands for being overtaken by other drivers or getting unfair expressions, driving slower will positively enhance the truck’s management and fuel competence.

By means of a truck’s cruise control arrangement should perk up gas mileage, on condition that the path is even and not overcrowded with traffic. Cruise control instruments are not as inclined to pump the accelerator regularly, to preserve speed as the driver possibly will be. The engine may not call for all of that additional gas with the aim to supply adequate energy, so using cruise control on lengthy stretches of freeway should augment gas mileage by no less than 25%. If the highway is situated in a mountainous county, on the other hand, using cruise control perhaps is challenging. A lot of cruise control techniques are inclined to make use of extra gas when going up hills, because the truck has got to prevail over the results of gravity in addition to uphold a predetermined speed.

More and more truck owner are converting there trucks to run on water and gas, or water and diesel, if you’ve never heard of this before don’t laugh it’s no joke. This isn’t a free method on “how can I get better gas mileage for my truck” but it’s a proven method that will save you money, almost double your gas mileage, give you more power and produces less emissions. You can have your truck running on water and gas for under $150 that includes the conversion step by step guide and all the necessary bits and bobs.

U.S. sales results released Tuesday showed cars outselling gas-guzzling trucks and SUVs by almost 200,000 in May — the biggest margin since 1996. That was bad news for U.S. automakers, whose lineups are heavily skewed toward large, inefficient vehicles, but a boon to their car-focused Asian rivals.

General Motors posted a sales drop of about 27% from a year earlier and said it would close four truck plants, prepare its Hummer brand for a possible sale and focus on making smaller cars. Chrysler’s 25.4% sales decline put it behind Honda in monthly sales for the first time.

And, after 17 years, Ford’s F-Series trucks were dethroned from the top sales position, falling to No. 5 behind the Honda Civic, Toyota Corolla, Toyota Camry and Honda Accord.

“I think it’s a watershed moment,” said Jim Farley, head of marketing at Ford.

For the month, overall vehicle sales in the U.S. were 1.4 million, down 8.4% from a year earlier, according to Autodata Corp. Based on the May sales rate, the industry is on pace to sell just 14.3 million vehicles this year in the U.S. In 2007, total sales were 16.1 million.

For nearly a decade, Americans bought more light trucks — a segment that includes pickups, SUVs and minivans — than cars. But starting in March, cars edged ahead. The gap widened in April, and in May, 193,559 more cars than light trucks were sold.

“The market has shifted dramatically from large gas-guzzling vehicles to smaller, fuel-efficient vehicles,” said Dennis Virag, president of Automotive Consulting Group in Ann Arbor, Mich.

GM in May saw a 37% decline in light truck and SUV sales and its share of the overall U.S. market dropped below 20%, a new low for the automotive giant that in 1980 had 45% of the U.S. market.

GM Chairman Rick Wagoner said the company believed that American consumers were shifting permanently from SUVs toward smaller vehicles. He said the company’s board had greenlighted production of a new small car in an Ohio factory and of its Volt electric vehicle — set to debut in 2010 — in Detroit.

“We at GM don’t think this is a spike or a temporary shift,” Wagoner said in a conference call before the company’s annual shareholder meeting in Wilmington, Del.

It was a different story for many Asian automakers.

The fuel-efficient Honda Civic compact had a record month with 53,299 sold, a 38.5% increase from May 2007. It and other small cars including the Fit helped Honda, which sells very few light trucks and and is heavy with fuel-efficient cars, post a 15.6% increase in vehicles sold for the month.

Hyundai, Mazda, Kia and Subaru posted sales increases for the month. So did Nissan, which saw an 8.4% increase in sales, driven by a 43% burst from its Altima sedan, which like the Civic comes as a hybrid as well as a traditional drivetrain. But Nissan’s results were pulled down by a lineup that includes large SUVs such as the Armada, whose sales fell 52%, and the Titan full-size pickup, which was down 56%.

The difficulties of that delicate balancing act between cars and light trucks was perhaps best illustrated by Toyota, which had a 4.3% decline in sales for the month despite a mix of cars that includes the popular Yaris, Camry, Corolla and Matrix models. The drag, in the Japanese automaker’s case, was the trucks and full-sized SUVs it makes in the U.S.

“All of our previous assumptions on the full-sized pickup truck segment are off the table,” said Bob Carter, head of Toyota’s U.S. sales unit.

Of the many models crippling GM sales, the worst have borne the Hummer nameplate. In May, Hummer purchases declined 60%, and through the first five months of the year it is the marque that has slipped the most, down 36%, placing it behind brands such as Chrysler, Bentley and even Maybach. The Hummer H3 gets an average of 15 miles per gallon, according to the Environmental Protection Agency.

“At this point, we are considering all options for the Hummer brand,” Wagoner said. “Everything from a complete revamp of the product lineup to partial or complete sale of the brand.”

No possible buyer has been named for the division, which was for a few years — when gasoline cost less than $3 a gallon — one of GM’s best-performing. Last week, GM’s stock hit a 26-year low, falling to $17.38. In trading on Tuesday, GM shares rose 14 cents, to $17.58.

At Tuesday’s shareholder meeting, speakers criticized Wagoner for what they called his excessive compensation in light of the company’s poor performance. According to one calculation, GM’s chairman received compensation worth nearly $16 million last year, up from $9.6 million in 2006. Nevertheless, a measure to tie executive pay to performance was defeated at the meeting.

Besides Hummer, another SUV brand that has been rumored to be on the block is Jeep, considered the one salable product among the holdings of cash-starved Chrysler. The privately held automaker has repeatedly denied that it intends to sell Jeep, but analysts say it ought to have considered that option some time ago. Jeep’s top-selling vehicle, the Wrangler, gets an average of 18 mpg.

“Chrysler should have sold it two years ago,” analyst Virag said. “Today, Jeep is seen as a portfolio of products that are pretty inefficient.”

After years of juicy profits from light trucks, all three U.S. automakers are scrambling to shift production toward cars.

GM said Tuesday that it would close plants in Oshawa, Canada; Moraine, Ohio; Janesville, Wis., and Toluca, Mexico. Several thousand jobs could be affected. Those plants are responsible for pickup trucks and SUVs such as the Chevrolet Silverado, the GMC Envoy and the medium-duty Chevy Kodiak and are expected to end production no later than the end of 2009.

Sales at Ford fell 15.6% in May, buoyed a bit by a 3% gain in its sales of cars such as the popular Focus. Last month, Ford said that it would cut worker shifts and total production at a handful of plants that make its largest SUVs and pickup trucks, and that it would produce the subcompact Fiesta in a plant outside Mexico City that currently makes the F-series pickup.

Even Chrysler, which of all carmakers has the product mix most heavily slanted toward light trucks, with 71% of its vehicles sold through May falling into that category, is looking to cars. In April, it announced that Nissan would produce a small car for it, while Chrysler would make trucks for Nissan in a Mexico factory.

Still, some worry that Detroit’s newfound love of small cars could backfire because of the sheer size and inertia inherent in such large operations.

“Oftentimes what we see from Detroit is an overreaction too late,” said Wes Brown, principal of Los Angeles marketing research firm Iceology. “They make seismic shifts to react to what the market is doing today, and by the time they get the product to market, the market has moved on.”

The automaker has recalled 2005 and 2006 model year Ford F-150 and Lincoln Mark LT trucks, according to the recall notice posted by the National Highway Traffic Safety Administration on its website on Wednesday.

Ford trucks covered by the recall are equipped with 5.4-liter engines. The brake hose on those trucks can detach from an intake manifold, causing the driver to lose the “assist” function that provides additional power to the brakes, according to the safety notice.

The trucks could still be stopped with remaining braking power but it would require drivers to apply “more force to the pedal,” Ford spokesman Wes Sherwood said.

He said Ford had received reports of 11 minor accidents but no injuries because of the brake hose defect.

The sweeping recall covers almost 606,000 vehicles in the United States and comes just as Ford is gearing up to launch all-new versions of its F-Series pickup truck line.

U.S. sales of the Ford trucks are down 16 percent this year in a downturn tied to high gasoline prices and a slumping U.S. housing market.

In addition to the trucks covered by the U.S. government recall, there are another 50,000 of the trucks on the road in Canada covered by a similar recall procedure, Ford said.

Ford said customers in the United States and Canada affected by the recall could have brake hoses replaced at Ford dealerships starting in late June.

Ford customers with questions can call 1-800-392-3673 for more information, the automaker said.

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“We haven’t reached any conclusion with Renault on that,” Bajaj told reporters.

“We are open to an alliance, and if Renault does not want to partner us, it will be a Bajaj project,” he said, adding that they were not in talks with other commercial vehicle makers for an alliance.

Pune-based Bajaj Auto has 50 percent in a venture with Renault and partner Nissan Motor to make a $2,500 car from 2011, to take on Tata Motors’ similarly priced Nano, which is scheduled to go on sale later this year.

“The car deal with Renault does not preclude us from doing a deal with someone else for commercial vehicles, but from our side if we do partner someone, it will be Renault,” he said.

Bajaj Auto, a unit of Bajaj Holdings & Investment Ltd, also makes scooters and leads the Indian market for three-wheeled motorised rickshaws. It has said it planned to make light trucks in the sub-1 tonne to 3.5 tonnes.

Tata Motors, also the top bus and truck maker, has scored a big hit with Ace, its sub-1 tonne truck, and others are keen to enter the segment, which is growing fast on the back of improving roads and a ban on overloading.

The venture for the small car, which will have an initial annual capacity of 400,000 units for the local and other emerging markets, will make a vehicle that is “high-quality, low-cost, high on fuel-efficiency and low on emissions”, Bajaj said.

Codenamed ULC, it will aim at a fuel-efficiency of 30 km per litre of petrol, and carbon dioxide emissions of about 100 grams per km, he said.

That would make it less polluting than cars in the European Union, which has proposed tough legislation to force down emissions of carbon dioxide to 120 grams per km from 2012.

“So in terms of being green, fuel-efficient and priced right, it will be quite unique,” Bajaj said.

“It will be a niche product, as we do not want to be a part of the mainstream market. Being in the rat race (of small cars) only means you will lose your shirt,” he said.

Car makers including Fiat, General Motors, Ford Motor, Hyundai and Toyota Motor have also expressed an interest in making a small car that is affordable to more consumers in emerging markets such as India.

Renault Chief Executive Carlos Ghosn has praised the “frugal engineering” of Indian manufacturers including Mahindra & Mahindra, with whom Renault has a venture for the Logan sedan.

Bajaj Auto also has the ability to keep costs low while remaining profitable, Bajaj said. “We don’t have the size, the scale or the reputation to do what global car makers are doing,” he said. “But our margins are a healthy 14 percent, which is higher than many others.”