Posts Tagged ‘John Nielsen’

Ginnie PritchettEven as technology advances, motorists identify range anxiety and lack of charging locations as top reasons to not drive electric

ORLANDO, Fla., (May 9, 2013) – The number of electric vehicle charging station locations has increased 959 percent since the debut of the Nissan Leaf in 2010. Despite that, eight out of ten U.S. adults are unsure about or unlikely to buy an electric vehicle (EV) and 30 percent of them say it is due to mileage limitations and availability of charging stations locations, according to a survey by AAA.

“There have been major advancements in electric vehicle technology and the supporting infrastructure,” said John Nielsen, AAA Managing Director of Automotive Engineering and Repair, “However, it will take time and education for the general motoring public to understand just how far these vehicles have come, and recognize the many resources available to those who drive them.”

Modern EVs typically have a range of 60-100 miles, more than enough for the average driver’s daily commute which the U.S. Department of Transportation says is around 16 miles one way. As to recharging, the U.S. Department of Energy reports there are now more than 5,800 charging stations available for public use. The agency has aggressively promoted expansion of the electric vehicle charging infrastructure using funds from the American Recovery and Reinvestment Act.

Additional findings from the AAA survey, fielded in July 2012, show that 26 percent of U.S. adults who are unsure about or unlikely to buy an electric vehicle (EV) cite the higher cost in general of an electric vehicle (i.e. buying, maintaining) as a reason they would be unlikely/undecided to make such a purchase.   “Battery improvements, increased competition, and economies of scale are all likely to drive down costs associated with buying an EV,” Nielsen continued. “With no need to change oil or filters and less brake system wear and tear, maintaining an EV is actually more affordable than a conventional vehicle.”

As joint efforts by government, private groups, and the automotive industry bring the charging picture into focus, AAA’s commitment to meeting member’s needs continues through electric vehicle roadside assistance. In 2011, AAA facilitated an extensive electric vehicle charging research and development program to help test EV charging as a roadside solution. AAA’s specially equipped road service trucks – capable of providing EV charging in approximately 15 minutes for about 10 miles of driving – are currently being tested in select markets across the country. The trucks can also provide traditional roadside services to members with any type of vehicle.

Working with the Electric Drive Transportation Association, AAA recently added EV content to their public information website, AAA Exchange. The new content provides basic information about electric vehicles that will help motorists determine whether an electric vehicle might be right for them. The materials also examine the various types of electric vehicles available, and help consumers understand the important differences that come with owning and operating an electric car.

Electric vehicle drivers looking for a public charging station in their area can consult the online AAA TripTik Travel Planner or the AAA Mobile application for smartphones. About 400 EV charging stations are located at AAA/CAA Approved hotels, restaurants and attractions. A green “plug” icon accompanies listings for these establishments in club-customizable AAA.com Travel Guides and 2013 Tour Book guides, which also denote stations available at AAA club offices.

As North America’s largest motoring and leisure travel organization, AAA provides more than 53 million members with travel, insurance, financial and automotive-related services. Since its founding in 1902, the not-for-profit, fully tax-paying AAA has been a leader and advocate for the safety and security of all travelers. AAA clubs can be visited on the Internet at AAA.com.

Ginnie PritchettIncrease in maintenance, insurance and fuel drive up average cost for sedans to $9,122 yearly, 60.8 cents per mile

ORLANDO, Fla., (April 16, 2013) – AAA released the results of its annual ‘Your Driving Costs’ study today, revealing a 1.96 percent increase in the cost to own and operate a sedan in the U.S. The average cost rose 1.17 cents to 60.8 cents per mile, or $9,122 per year, based upon 15,000 miles of annual driving.

“Many factors go into the cost calculation of owning and operating a vehicle,” said John Nielsen, AAA Director of Automotive Engineering and Repair. “This year, changes in maintenance, fuel and insurance costs resulted in the increase to just over 60 cents a mile.”

The findings of the 2013 ‘Your Driving Costs’ study include:

Based on Driving 15,000 miles annually

Small

Sedan

Medium Sedan

Large Sedan

Sedan Average

SUV 4WD

Minivan

Cost Per Mile

46.4 cents

61.0 cents

75.0 cents

60.8 cents

77.3 cents

65.3 cents

Cost Per Year

$6,967

$9,151

$11,248

$9,122

$11,599

$9,795

Additional Resources

In-depth findings of this year’s study, including a breakdown of specific costs by category of vehicle and various annual mileages, are contained in the ‘Your Driving Costs’ brochure which is available at select local AAA branch offices or may be downloaded in the additional resources bar.

Nielsen continued, “Before you make any vehicle purchase, it is important to determine ownership and operational costs and compare them to your current and future financial situation.” To assist consumers in determining their individual driving costs, the AAA ‘Your Driving Costs’ brochure contains a worksheet that can be filled out and personalized for a specific area, driver and vehicle.

Maintenance Costs Up 11.26 Percent

The costs associated with maintaining a vehicle had the single largest percentage increase from 2012 to 2013, growing by 11.26 percent to 4.97 cents per mile on average for sedan owners. AAA’s estimates are based upon the cost to maintain a vehicle and perform needed repairs for five years and 75,000 miles including labor expenses, replacement part prices and the purchase of an extended warranty policy.  Driving the increase in maintenance costs is significant increases in labor and part costs for some models and a major increase in the price of extended warranty policies due to high loss ratios by underwriters.

Fuel Costs Up 1.93 Percent

Gasoline prices were relatively stable compared to the prior year, leading to a minimal fuel cost increase of 1.93 percent to 14.45 cents per mile on average for sedan owners. The average cost of regular grade fuel (used by most of the study vehicles) actually rose 3.84 percent, from $3.357 to $3.486 per gallon. However, several vehicles in the ‘Your Driving Costs’ study had small improvements in their fuel economy ratings which partially offset the fuel cost increase. Fuel costs in the 2013 study were calculated using the national average price for regular, unleaded gasoline during the fourth quarter of 2012.

Tire Costs Remain Unchanged
The cost of tires did not change from 2012 to 2013, remaining at one cent per mile on average for sedan owners. The stable price is attributed to a leveling off of past increased costs for raw materials, energy and transportation from factories to distributors across the country.

Insurance Costs Up 2.76 Percent

Average insurance costs for sedans rose 2.76 percent (or $28) to $1029 annually. Insurance rates vary widely by driver and driving record, issuing company and geographical region. AAA insurance cost estimates are based on a low-risk driver with a clean driving record. Quotes from five AAA clubs and insurance companies representing seven states showed across-the-board modest increases for all sedan sizes, with large cars having less of an increase than small- and medium-size sedans.

Depreciation Costs Rise .78 Percent

After seeing a drop in 2012, depreciation costs were up slightly in 2013, increasing .78 percent to $3,571 a year. This change may be a consequence of recovering new vehicle sales, resulting in more used cars available in the marketplace and thus the softening of the resale value of clean older models.

63rd Year of ‘Your Driving Costs’ Study

AAA has published ‘Your Driving Costs’ since 1950. That year, driving a car 10,000 miles per year cost 9 cents per mile, and gasoline sold for 27 cents per gallon.

The ‘Your Driving Costs’ study employs a proprietary AAA methodology to analyze the cost to own and operate a vehicle in the United States. Variable operating costs considered in the study include fuel, maintenance and repair, and tires. Fixed ownership costs factored into the results include insurance, license and registration fees, taxes, depreciation and finance charges. Ownership costs are calculated based on the purchase of a new vehicle that is driven over five years and 75,000 miles. Your actual operating costs may vary. See AAA’s 2013 ‘Your Driving Costs’ brochure for a list of vehicles and additional information on the underlying criteria used in the study.

As North America’s largest motoring and leisure travel organization, AAA provides more than 53 million members with travel, insurance, financial and automotive-related services. Since its founding in 1902, the not-for-profit, fully tax-paying AAA has been a leader and advocate for the safety and security of all travelers. AAA clubs can be visited on the Internet at AAA.com.

Ginnie PritchettFrom a full electric vehicle to a spacious minivan AAA top picks driven by fuel efficiency and comfort

ORLANDO, Fla., (March 26, 2013) – Most Americans (86 percent) rely on their vehicle to get them to and from work every day. With an average commute of 25 minutes each way and gas prices hovering about $3.50 per gallon since February, selecting the right vehicle can make a commute more enjoyable and lower expenses.  For motorists in the market for a new car AAA Auto Buying experts have selected vehicles that go the distance with comfort and performance.

“Many Americans are spending several hours every week in their vehicle to get to and from work,” says John Nielsen, director, AAA Automotive Engineering & Repair. “Having a vehicle that is reliable, fuel-efficient and comfortable can really make a difference in your everyday routine.”

AAA’s top vehicle picks are selected by AAA Auto Buying experts who test drive and evaluate hundreds of vehicles each year.  Fuel efficiency, comfort and overall performance helped create this top list of vehicles for commuters.

Additional Resources

Compact Vehicles

Chevrolet Volt: This four-passenger, plug-in electric vehicle, sidesteps range anxiety with a gasoline engine on board to run a generator. The newest versions of the Volt allow a driver to force operation of the gasoline engine, ideal for a commute that starts on a highway, where gasoline power is more efficient, and ends in a city, where battery power is more cost effective. The car is exceptionally quiet, handles well and boasts great acceleration but rear seat room is tight if you plan to carpool. TrueCar reports that the Average Paid price of the 2013 Chevrolet Volt five-door hatchback is $38,871, 2.8 percent less than the MSRP*.

Toyota Prius or Prius V: These gasoline-electric hybrids set the standard for fuel efficiency in a gasoline-powered vehicle. The Prius seats five in reasonable comfort and is exceptionally efficient for urban commutes where regenerative braking and the ability to turn the gasoline engine off while the car is stopped enhances fuel efficiency.  TrueCar reports that the Average Paid price of the 2013 Toyota Prius door hatchback is $24,066, 3.7 percent less than the MSRP, and the Prius V five door wagon is $26,350, four percent less than MSRP*.

Volkswagen Jetta SportWagen TDI: The SportWagen is a wagon style model that uses a diesel engine to deliver smooth acceleration with strong fuel economy. Handling is also precise and predictable. With the option of manual or automatic transmission, these cars are fun to drive, making the longer commutes seem less daunting. TrueCar reports that the Average Paid price of the 2013 Volkswagen Jetta SportWagen four-door manual hatchback TDI is $23,894, 9.2 percent less than the MSRP*.

 

Sedans

Audi A4: Beautifully finished and very comfortable in front, the A4 can make light work of any commute. Front-wheel drive is standard, but the option for Audi’s Quattro all-wheel drive system is available. The ride is firm but compliant and the handling is tops. The body structure feels exceptionally solid, even when facing rough urban pavement. Driving pleasure earns a very high grade, although the rear seat room earns a much lower score. TrueCar reports that the Average Paid price of the 2013 Audi A4 four-door Sedan CVT FrontTrak 2.0T is $31,697, 5.1 percent less than the MSRP*.

Buick LaCrosse: A steady ride, comfortable seating, responsive handling and an excellent V-6-based drivetrain make this car an ideal choice for commuting in a carpool. Performance is excellent. For buyers seeking the room and comfort of the LaCrosse with more fuel efficiency, a four-cylinder eAssist drivetrain is offered. Consider it a mild hybrid. TrueCar reports that the Average Paid price of the 2013 Buick LaCrosse four-door sedan base is $30,727, 5.6 percent less than the MSRP*.

Ford Fusion: Ford’s entry in the affordably-priced family sedan arena has been completely redesigned for 2013. The new model features a sleek exterior, an upgraded interior and new drivetrains. The Fusion is now offered with three engines, a base 2.5-liter four-cylinder engine and two optional turbocharged four cylinder engines, either 1.6- or 2.0-liters. The 2.0-liter, four-cylinder engine produces 240 horsepower, matching the output of many V-6s. This Fusion could easily have passed for a luxury car not too many years ago. Front-wheel drive is standard; all-wheel drive is an option. TrueCar reports that the Average Paid price of the 2013 Ford Fusion four door S is $20,038, 10.9 percent less than the MSRP*.

Hyundai Genesis: This V-6-powered sedan is refined, powerful and roomy. The V-6 engine turns in an exemplary performance and the new 8-speed automatic transmission raises the performance level to the point that the optional V-8 is unnecessary. While handling is predictable, the ride does fall a little short of full luxury sedan status. TrueCar reports that the Average Paid price of the 2013 Hyundai Genesis four door sedan V6 3.8 liter is $33,358, 4.9 percent less than the MSRP*.

Nissan Altima: The redesigned 2013 Altima continues to be a top choice for commuting. It is comfortable for all passengers, performs well and offers several unique safety features, including clever use of the backup camera to provide lane departure and blind spot warnings in some models. TrueCar reports that the Average Paid price of the 2013 Nissan Altima four door 2.5 liter is $21,706, 3.7 percent less than the MSRP*.

 

Crossovers

Ford Flex:  This boxy crossover is hard to beat when looking for room in a vehicle. Buyers will find ample space for passengers or purchases. The ride is quiet and well controlled. The engines are V-6s, with the EcoBoost motor turning in a particularly good performance. Though costly, this EcoBoost engine not only outperforms the base V-6, in AAA testing it also delivered slightly better fuel economy.  TrueCar reports that the Average Paid price of the 2013 Ford Flex SE is $26,803, 15.7 percent less than the MSRP*.

Toyota Highlander: In the crossover category, this vehicle features a comfortable ride and roomy interior. More impressive are its highway cruising manners and despite its size, ease of maneuvering in traffic. And while this vehicle’s size takes a minor toll in handling through sharp bends in the road, add a reputation for dependability and long life and you have a top choice for commuters needing size and passenger capacity.  TrueCar reports that the Average Paid price of the 2013 Toyota Highlander four-door front wheel drive four cylinder is $27,978, 6.3 percent less than the MSRP*.

 

Minivan

Honda Odyssey: This roomy minivan is offered in a wide range of models, though even basic versions are well equipped and comfortable. Its size suggests that it is best suited to a less crowded commute venue, but even in an urban setting, the Odyssey is easy to drive. Front and second row seating comfort is quite good. The third row folds easily to from a flat load floor with ample space for a wide range of items. TrueCar reports that the Average Paid price of the 2013 Honda Odyssey LX is $27,801, 5.8 percent less than the MSRP*.

AAA provides free vehicle reviews, localized pricing information and more online at AAA.com/AutoMaker. Additional information on AAA Auto Buying is available at AAA.com/AutoBuying.  The AAA Auto Buying Tools App is available here to access information on the go.

TrueCar, Inc. is the AAA preferred supplier for new and used car pricing information for the motor club. TrueCar is an online automotive information and communications platform focused on creating a better car buying experience for dealers and consumers. Consumers want a hassle-free car buying experience and dealers want high-quality sales velocity. TrueCar helps achieve these goals by providing unbiased market information on new and used car transactions and by supplying an online communications platform through which dealers and consumers can communicate with each other. TrueCar’s market-based information provides both consumers and dealers with an accurate and comprehensive understanding of what others actually paid recently for similar vehicles, both locally and nationally.  If you are in the market for a new vehicle, you can configure a virtual vehicle with the specifications you want, see the Estimated or Target Price for that vehicle in your area, and then connect directly with local TrueCar Certified Dealers at AAA.com/AutoMaker.  Once you submit a request, TrueCar Certified Dealer representatives will get in touch with you to discuss vehicles in their inventory.

*The Average Paid price is a proprietary mathematical calculation based on actual recent anonymized transaction information in your regional area, and includes destination and delivery charges after incentives that are subject to change, but does not include tax, title, licensing, documentation or processing fees, other state and governmental charges and/or fees, or any other charges or fees allowed by law. Your actual savings may vary based on multiple factors including the vehicle you select, region, dealer, and applicable manufacturer incentives. The Manufacturer’s Suggested Retail Price (³MSRP²) is determined by the manufacturer, and may not reflect the price at which vehicles are generally sold in the dealer¹s trade area as not all vehicles are sold at MSRP. Each dealer sets its own pricing. Your actual purchase price is negotiated between you and the dealer.

 

Image Gallery

Ginnie PritchettMotorists’ smart key learning curve results in risky and costly lesson

ORLANDO, Fla., (March 06, 2013) – Even as the technology, security and convenience of automobile “smart keys” evolve, AAA finds motorists are not keeping pace and are frequently outsmarted by their “smart” keys.  In 2012, AAA came to the rescue of over four million members who locked themselves out of their vehicles, a number that has dropped little in the past five years; even as use of smart keys has increased.  First available in luxury brands like BMW, Mercedes and Lexus, almost all automakers now offer the smart key  as standard or optional equipment within their fleet of vehicles. As a modern convenience, transponder fobs allow motorists to enter and start their vehicle key-free.

“Traditional car keys will likely become obsolete and be replaced by technologies offering even greater security and convenience,” said John Nielsen, AAA Director of Automotive Engineering and Repair. “Motorists will need to adapt with the technology to avoid the hassle and expense of smart key replacements.”

While new smart key features provide long list of conveniences, including remote start and stored driver profiles, motorists unfamiliar with operating keyless fobs can face risky situations and lockouts. Forgetting to turn off the car before exiting the vehicle, or not knowing how to quickly shut down the engine in an emergency, has proven to be a problem for some. And, for those systems with remote start capability, it is critical that motorists never start the vehicle in an enclosed space where engine exhaust gasses containing poisonous carbon monoxide can be trapped – with potentially fatal consequences.

Just as motorists adjust to smart key features, they may be surprised to learn that smartphones may soon be an option to replace their car key altogether. Electric vehicles from Chevrolet and Nissan today have special mobile apps that can be used to monitor and control many of their basic functions.  And, Hyundai recently unveiled a more advanced concept that allows motorists to enter and start a vehicle using a specially-configured smartphone that can then interface with the vehicle to provide additional functions and services. Some of this technology could be seen in vehicles as soon as 2015.

The greater conveniences and features of modern car keys do not come cheap and require more maintenance. The purchase price of vehicles that offer modern key technology are higher, the fob battery must be changed periodically and it can cost hundreds of dollars to buy, cut and program a new or replacement key.

“The cost to replace a transponder key runs around $100, and replacement smart keys can cost several hundred dollars depending on the make and model,” continued Nielsen. “Many newer keys must be programmed by a dealer or locksmith with special electronic equipment and accesses to highly confidential codes that are required to service the vehicle security system.

AAA recommends motorists take special care of their transponder and smart keys. Here are some steps that can help prevent danger, loss or damage of vehicle keys, and limit the replacement cost in the event a key is misplaced:

  • Familiarize yourself with the full capability of your smart key and know what to do in an emergency situation
  • Become comfortable with the features of the smart key in a safe environment
  • To avoid keyless-entry remote or smart key failure, replace the key/fob battery every 2 years or when recommended by the vehicle manufacturer or the in-car low battery warning system.
  • Don’t expose your keyless-entry remote or smart key to harsh elements – especially water.
  • Obtain a spare key and store it in a safe location for emergency use only.

Additional Resources

Michael Green Contact Tile

 

 

 

 

 

(WASHINGTON, February 28, 2013)

Highest Increase in Gas Prices to Begin Year on Record

  • The national average price of gasoline has increased 49 cents per gallon since the beginning of the year, which is the highest price increase through the end of February on record. Gas prices began 2013 at $3.29 per gallon and have climbed a total of 46 days to a national average of $3.78 per gallon. The previous record through the end of February was a rise of 46 cents per gallon in 2012.
  • The dramatic increase has resulted in the highest average prices ever for this time of year. The average price of gas in February was $3.65 per gallon, which was ten cents higher than the previous record for the month set in 2012. Today’s national average of $3.782 per gallon is five cents higher than the average a year ago.
  • “Gas prices increased at a dramatically faster pace than expected in February,” said Avery Ash, AAA spokesman. “Motorists unfortunately are paying more for gasoline than ever at this time of year, and it is primarily because of a decline in refinery production and higher futures prices.”
  • Many refineries decreased fuel production in January and February to conduct seasonal maintenance and facility upgrades. Along with unplanned refinery issues, this has resulted in the lowest rate of crude oil processing since April 2011. Decreased production squeezes gasoline supplies, which leads to higher pump prices for motorists.
  • The anticipated transition to summer-blend gasoline also has contributed to higher prices. The switchover takes place every year and is required to help meet local air quality standards. Summer-blend gasoline costs more to produce and can lead to logistical and distribution challenges.
  • The sharp rise in gas prices has come despite a recent drop in the price of crude oil. West Texas Intermediate (WTI) oil futures are about $14 per barrel less than a year ago, which reduces the cost of refining gasoline.

Gas-Prices-to-Begin-the-Year-2011-2013

 

Gasoline Likely to Peak at Lower Average Price than Recent Years

  • AAA expects gas prices to peak at a lower national average than last year’s high of $3.94 per gallon. While seasonal gas prices have recently peaked in April or May, it is possible that prices will peak even earlier this year.
  • “There is a lot of uncertainty on where gas prices will go over the next few weeks, but hopefully the worst of the price spikes are behind us for now,” continued Ash. “There is still refinery maintenance to be completed and most of the country must transition to summer-blend gasoline, so motorists are likely to face continued high prices in the weeks ahead.”
  • Despite the spike in gasoline prices, WTI crude oil has dropped almost $5 per barrel in recent weeks as a result of record-high supplies and concerns about the global economy.
  • The national average price of gas has increased in March for nine years in a row, indicating that seasonal supply and demand factors for this time of year can have a significant effect on gas prices.

US-Map-February-2013-fuel-prices

 

Gas Prices Vary by More than $1 per Gallon Across the Country

  • Gas prices vary by more than a $1 per gallon between the most expensive and cheapest states. The lowest gas prices are in the Rocky Mountain region, which is supplied by refineries with access to relatively cheap crude oil. The most expensive prices in the continental U.S. are in Calif. and N.Y., which have the highest gasoline taxes in the nation.
  • Approximately 60 million Americans (nearly 20 percent) today live in a state where gas prices average more than $4 a gallon. Only about eight million Americans (three percent) live in a state where gas is less than $3.50 per gallon on average.
  • The five states with the highest averages today include: Hawaii ($4.37), Calif. ($4.24), Alaska ($4.02), N.Y. ($4.01) and Conn. ($3.99). The five states with the lowest averages today include: Wyo. ($3.29), Mont. ($3.29), Utah ($3.43), Idaho ($3.45) and N.M. ($3.49).

Michael Green Contact TileHearing to highlight need for consumer protections, education and additional research on E15

WASHINGTON, D.C. (Feb. 26, 2013) – AAA President & CEO Robert L. Darbelnet will testify today before the House Committee on Science, Space and Technology’s Subcommittee on Environment that regulators and industry should suspend the sale of E15 gasoline until motorists are better protected. AAA will highlight the inadequate consumer protections and education efforts to date and will express support for additional testing by the National Academy of Sciences.

“Congress’ decision to examine potential problems associated with the sale of E15 is encouraging news for motorists,” said Darbelnet. “Most drivers are unaware of the potentially harmful effects of E15 and have not been properly educated about this new fuel entering the market.”

Additional Resources

  • Click here to listen to a AAA interview with Robert L. Darbelnet on E15

The hearing will examine the Environmental Protection Agency’s recent decision to allow the sale of E15, a blend of gasoline containing up to 15 percent ethanol. The subcommittee scheduled the hearing partly in response to AAA’s recent findings that E15 may cause consumer confusion, void warranties and contribute to vehicle damage.

“AAA is not opposed to ethanol, but we are against the way E15 has been introduced and sold to consumers,” continued Darbelnet. “We welcome the committee’s support today as AAA calls for additional impartial research and for regulators and industry to suspend the sale of E15 gasoline until motorists are properly educated and protected.”

The subcommittee hearing, “Mid-Level Ethanol Blends: Consumer and Technical Research Needs,” is scheduled for Feb. 26 at 2:00 PM EST in 2318 Rayburn House Office Building.

A AAA survey last fall found that only 12 million out of the 240 million light-duty vehicles on the roads today are approved by manufacturers to use E15. Five manufacturers stated their warranties would not cover fuel-related claims caused by E15, and eight additional manufacturers stated that E15 did not comply with fuel requirements in owners’ manuals and may void warranty coverage.

AAA’s automotive engineering experts believe that sustained use of E15 could result in costly problems such as accelerated engine wear and failure, fuel-system damage and false “check engine” lights in some cars. An overwhelming 95 percent of consumers surveyed by AAA were not familiar with E15, indicating a strong likelihood of consumer confusion leading to misfueling.

Both E10 and E85 provide options for consumers at this point. Ethanol-blended fuels have the potential to support American jobs, promote American energy independence and save Americans money. More than 95 percent of the gasoline sold in the United States is E10, which contains up to 10 percent ethanol. E85, which contains up to 85 percent ethanol, is designed for use by flex-fuel vehicles.

As North America’s largest motoring and leisure travel organization, AAA provides more than 53 million members with travel, insurance, financial and automotive-related services. Since its founding in 1902, the not-for-profit, fully tax-paying AAA has been a leader and advocate for the safety and security of all travelers. AAA clubs can be visited on the Internet at AAA.com.

 

WASHINGTON, January 31, 2013

 

 

 

 

U.S. Motorists Pay Second Highest Gas Prices on Record for January

  • The national average price of gasoline in January was $3.32 per gallon, which was the second highest average on record for the month. This also represents the first monthly average below year-ago levels in six months. The highest recorded prices in January were in 2012, when the monthly average was $3.37 per gallon.
  • “Gas prices in January historically are among the least expensive of the year because of lower demand and the use of winter-blend gasoline,” said Avery Ash, AAA spokesman. “While few of us would claim that gas prices are cheap, at least most motorists paid a little less compared to last year.”
  • The national average price of gasoline increased 13 cents (4 percent) a gallon in January, which was the first monthly increase since August. Gas prices nationally have increased 14 days in a row for a total of 22 days during the month. Gas prices increased at a slower pace than in January 2012, when the national average increased 17 cents (5 percent) a gallon.
  • The lowest state averages for January were in the Rockies, where relatively cheap crude oil, a glut of local gasoline supplies and limited pipeline capacity out of the region helped keep prices low. The average monthly price of gasoline in Wyo. ($2.87), Colo. ($2.91) and Utah ($2.92) were the first state monthly averages under $3 per gallon since January 2012.
  • Drivers in the Northeast continue paying among the highest prices in the continental U.S. because local production and supplies still have not recovered from Hurricane Sandy. Higher than average state gasoline taxes also contribute to higher prices in the region. Motorists in N.Y. paid an average of $3.74 per gallon for the month, while the average in Conn. was $3.69 per gallon.
  • Drivers in the Midwest saw the highest price increases for January as a result of rising crude oil costs in the region and decreased gasoline supplies. States with the highest monthly price increases included Minn. (33¢), Ind. (24¢), Mich. (23¢) and Ill. (23¢).

AAA Expects Gas Prices to Rise in February Due to Refinery Actions

  • AAA expects the national average to increase in February due to seasonal refinery actions, but at a slower pace than in the previous two years when the average climbed by 29 cents per gallon (2012) and 27 cents per gallon (2011). Despite the expected slower overall pace, it is likely the national average will rise temporarily above year-ago levels in the coming days.
  • “Gas prices are expected to rise steadily as many refineries temporarily close for scheduled turnaround maintenance and as the industry begins the complicated process of switching over to summer blends of gasoline,” continued Ash. “Various summer-gasoline blends are required in many regions to meet local air quality standards, but the fuels cost more to produce and the changeover process can disrupt supplies in the spring.”
  • Gas prices in February increased at a quick pace over the past couple of years due to higher oil costs caused primarily by civil war in Libya (2011) and geopolitical tensions with Iran (2012). While gas prices this February are expected to increase at a slower rate, major events such as an unexpected refinery outage, increased unrest in North Africa or changes in the global economy could affect this month’s forecast. The national average in February has increased nine out of the previous ten years.
  • The national average should rise steadily through April or May as the switch to summer-blend gasoline continues and with an increase in demand this spring. AAA expects gas prices this spring will peak at a lower national average than last year’s high of $3.94 per gallon, which occurred on April 5 and 6.
  • Gasoline prices in the Northeast will remain among the highest in the country following the planned closure in February of Hess’ Port Reading, N.J. refinery, which accounts for 7.5 percent of Northeast gasoline production. The closure of this refinery further reduces production in the region, which means that a larger percentage of gasoline in the heavily populated Northeast will be supplied by Gulf Coast, Midwest and overseas refineries. The reduction in refinery production places Northeastern motorists at increased risk of price spikes this year if refinery or pipeline disruptions strike the region.

 

Today’s Gas Prices

  • Today’s national gas price average is $3.423 a gallon, which is 2.9 cents more than yesterday and 10.2 cents more than a week ago. Today’s national average is the highest price since Nov. 25, 2012.
  • Motorists nationally are paying an average of 2.7 cents per gallon less on gas than last year. This is the 27th day in a row that gas prices have been less expensive than last year.
  • The five states with the highest averages today include: Hawaii ($4.11), N.Y. ($3.78), Calif. ($3.76), Conn. ($3.75) and Alaska ($3.69). The five states with the lowest averages today include: Wyo. ($2.90), Mont. ($3.01), Colo. ($3.07), Utah ($3.09) and N.M. ($3.11).

AAA’s Daily Fuel Gauge Report is updated daily at www.FuelGaugeReport.AAA.com with average national, state and local retail prices for gasoline, diesel and E-85. Every day up to 120,000 stations are surveyed based on credit card swipes and direct feeds in cooperation with the Oil Price Information Service (OPIS) and Wright Express for unmatched statistical reliability. All average retail prices in this report are for a gallon of regular, unleaded gasoline. For more information, contact Michael Green at 202-942-2082, mgreen@national.aaa.com.

 

 


ORLANDO, Fla., (January 25, 2013) –  A survey by AAA has found that newer cars with built-in maintenance reminder systems are allowing owners to spend less time worrying about when to service their vehicles and more time enjoying vehicle ownership.  According to the survey, 63 percent of motorists drive vehicles with a built-in maintenance reminder system that alerts them when it’s time to have service work performed. More than half (51 percent) of those drivers rely solely on the reminder system and have maintenance done only when the system says it’s due.  AAA recommends that motorists always follow automakers’ maintenance recommendations as found in vehicle owners’ manuals, including the use of in-vehicle maintenance reminder systems (where equipped) as an accurate indicator of when a car needs service.

“It’s encouraging to see motorists accepting this technology. Maintenance reminder systems make vehicle ownership easier, and having required services performed at the appropriate intervals results in better overall performance and longer vehicle life, “ says John Nielsen, AAA’s director of Automotive Engineering and Repair. “Reminder systems can also save money by helping drivers avoid unnecessary service work.”

Reminder Systems and Vehicle Maintenance

Unlike traditional maintenance schedules based on time and/or mileage, maintenance reminder systems use various sensors and a computer algorithm to monitor vehicle operation and determine engine oil life based on real world use. The factors considered vary by reminder system, but commonly monitored values include hours of operation, engine rpm, cold starts, outside air temperature, vehicle speed and more. This analysis of real-time vehicle operating conditions makes choosing an oil change interval based on traditional “normal” or “severe service” driving conditions obsolete.

Frequency of Scheduled Maintenance

Motorists who follow their in-car reminder systems may also see a change in the frequency of recommended oil changes. While older vehicles sometimes required oil changes as often as every 3,000 miles, advancements in engine and lubricant technology have extended oil change intervals to 5,000 miles or more on most newer cars. In some cases, engines that use synthetic or semi-synthetic oils can have oil change intervals of more than 10,000 miles! AAA survey data show today’s motorists are beginning to accept longer oil change intervals, with 48 percent of drivers changing their oil every 3,000-6,000 miles.

Not All Oils Are the Same

While maintenance reminder systems typically call for extended oil change intervals, those recommendations are based on an assumption that the oil used in the engine meets the automaker’s specifications. AAA found that nearly 75 percent of motorists whose cars have built-in maintenance reminder systems understand that the accuracy of those systems depend on using engine oil that meets the vehicle manufacturer’s specifications.

Many newer cars today require the use of semi-synthetic oil (a blend of conventional and full-synthetic stocks) to maintain the warranty and ensure proper engine protection between oil changes. The use of full-synthetic oils is very common in European imports, high-performance models and engines equipped with turbochargers or superchargers. Using a lower quality oil than required will compromise engine protection, decrease the accuracy of the maintenance reminder system and potentially void the engine warranty. It is important that motorists and service providers be aware of the relevant standards for each vehicle and only use engine oils that meet them.

AAA Recommendations

AAA advises motorists to follow their vehicle manufacturer’s recommended maintenance schedule and, if their vehicle is equipped with a maintenance reminder system, to perform necessary maintenance when prompted by the vehicle. Ignoring maintenance reminders can increase vehicle wear and tear and potentially cause long-term damage. It is also important to know what type oil your vehicle requires and ensure that your service facility uses an appropriate product. The wrong oil could void a vehicle’s warranty, leaving the motorist to pay any needed repair bills.

As North America’s largest motoring and leisure travel organization, AAA provides more than 53 million members with travel, insurance, financial and automotive-related services. Since its founding in 1902, the not-for-profit, fully tax-paying AAA has been a leader and advocate for the safety and security of all travelers. AAA clubs can be visited on the Internet at AAA.com.

WASHINGTON, December 31, 2012 -

 

 

 

 

 

Gas Prices in 2012 Most Expensive Year on Record

  • The national average price of gasoline in 2012 was $3.60 a gallon, which is the most expensive annual average on record. The previous annual record was $3.51 a gallon set in 2011, while the third most expensive year for gas prices was 2008, when the average was $3.25 a gallon.
  • “Record high gas prices have made this the most expensive year yet for motorists,” said Avery Ash, AAA spokesman. “Factors as volatile as major hurricanes, refinery outages and tension in the Middle East resulted in significant frustration for people filling up their cars.”
  • The national average has broken a daily record high for 134 consecutive days for a total a 248 days in 2012. Motorists paid record-high gas prices on 68 percent of the days during the year.
  • The highest daily national average of the year was $3.94 a gallon on April 5 and 6, while the lowest daily national average was $3.22 a gallon on Dec. 20.
  • The states with the most expensive annual averages for 2012 included Hawaii ($4.31), Alaska ($4.09), Calif. ($4.03), N.Y. ($3.90) and Conn. ($3.90). The states with the cheapest annual averages included S.C. ($3.35), Mo. ($3.38), Miss. ($3.39), Tenn. ($3.40) and Okla. ($3.41).
  • The highest daily statewide average of the year was $4.67 in Calif. on Oct. 9, while the lowest daily statewide average was $2.91 a gallon in South Carolina on July 3.
  • The daily average for regular gasoline dropped below $3.00 per gallon in only eight states at some point during the year, while daily averages increased above $4.00 per gallon in 11 states (and Washington D.C.) at some point.

 

December Gas Prices Fall to Lowest Average of the Year

  • Gas prices averaged $3.30 a gallon nationally in December, which was the lowest monthly average of the year.
  • The national average declined 11 cents per gallon (3.25 percent) in December and declined on 22 days during the month.
  • Gas prices nationally have fallen nearly 58 cents a gallon (14.96 percent) on average since September 14, the day before much of the United States began the transition to winter-blend gasoline. Gas prices have dropped as a result of decreased demand, increased supplies and the switchover to less expensive winter-blend fuels.

Fiscal Cliff Adding Uncertainty to Gas Prices in 2013

  • A failure to reach a fiscal cliff deal could push the economy into a renewed recession, which would drive down gas prices as a result of decreased demand and weaker commodities prices including oil and gas. As a result of continued negotiations in Washington, predictions about gas prices in 2013 remain very uncertain.
  • Even if a fiscal cliff deal is reached, AAA predicts that gas prices in 2013 will remain high, but are likely to be cheaper than in 2012 due to increased domestic crude oil production and that demand is expected to remain lower than in recent years.
  • “What happens with gas prices this year will be impacted by decisions in Washington this month,” continued Ash.  “Yet no matter what happens in Congress, AAA is optimistic that gas prices will be less expensive than in 2012.”

Today’s Gas Prices (Dec. 31, 2012)

  • Today’s national average price of gasoline is $3.29 per gallon, which is 4.5 cents more than a week ago and 1.6 cents more than a year ago.
  • The five states with the highest prices include: Hawaii ($3.99), N.Y. ($3.74), Conn. ($3.68), Calif. ($3.57) and Vt. ($3.55). The five states with the lowest prices include: Wyo. ($2.98), Colo. ($3.01), Okla. ($3.02), Utah ($3.03) and Mo. ($3.03).

AAA’s average gas prices are updated daily at FuelGaugeReport.AAA.com with average national, state and local retail prices for gasoline, diesel and E-85. Every day up to 120,000 stations are surveyed based on credit card swipes and direct feeds in cooperation with the Oil Price Information Service (OPIS) and Wright Express for unmatched statistical reliability. All average retail prices in this report are for a gallon of regular, unleaded gasoline.

Suspend Sale of E15 Gasoline

December 17th, 2012 by admin

By Robert L. Darbelnet, President and CEO of AAA

Published first in The Hill on Dec. 13, 2012

The Environmental Protection Agency (EPA) and gasoline retailers should suspend the sale of E15 gasoline until more is done to protect consumers from the potential for costly auto damage and voided warranties.

Additional Resources

Research to date raises serious concerns that E15, a fuel blend consisting of 15 percent ethanol and 85 percent gasoline, could cause accelerated engine wear and failure, fuel system damage and other problems such as false “check engine” lights.

The potential damage could result in costly repairs for unsuspecting consumers. This is especially tough for most motorists given that only about 40 percent of Americans have enough in savings to afford a major auto repair.

In June, the EPA approved the use of E15, and a handful of gas stations in Nebraska, Iowa and Kansas have begun to sell this fuel. There is a strong likelihood that retailers will market E15 in additional states soon unless regulators take immediate action to protect consumers.

Nearly all of the gasoline sold in the United States today is E10, which contains up to ten percent ethanol, primarily produced from corn. The ethanol industry has lobbied hard to increase the amount of ethanol allowed in gasoline as a way to increase sales and help meet the Renewable Fuels Standard.

AAA’s concern with E15 is not about ethanol. In fact, AAA believes that ethanol-blended fuels have the potential to save Americans money and reduce the nation’s dependency on fossil fuels. The problem is that available research, including the EPA’s exhaust emissions tests, is not sufficient evidence that E15 is safe to use in most vehicles.

The ethanol industry’s response to reports of damage caused by E15 is that it is the most tested fuel in the EPA’s history.  The caveat to this assertion is that while the agency did test E15, their research focused primarily on exhaust emissions and associated components such as catalytic converters. While this research was consistent with the EPA’s mission, it never fully examined whether E15 might damage engines and fuel systems.

Some of those supporting E15 admit the fuel may cause damage. For example, the Renewable Fuels Association warned retailers that some underground storage tank systems, both new and used, exhibited reduced levels of safety and performance when exposed to E15. In addition, earlier this year the industry testified before Congress in support of legislation that proposed to give fuel producers blanket liability protections, while providing no protections to motorists. If the industry is not confident enough to take responsibility for the risks of E15, is it right that the risks be passed onto consumers?

Automakers advise they may void warranties for anyone using E15. Five manufacturers (BMW, Chrysler, Nissan, Toyota and Volkswagen) state their warranties will not cover E15 claims. Eight additional automakers (GM, Ford, Honda, Hyundai, Kia, Mazda, Mercedes-Benz and Volvo) state that E15 does not comply with fuel requirements specified in most owners’ manuals and may void warranties. It is difficult to comprehend why the EPA would choose to ignore all these warnings.

The automakers’ position is understandable given that most cars were never designed for E15. Only about five percent, or 12 million of the more than 240 million light-duty vehicles on U.S. roads today, are approved by manufacturers to use the fuel. These vehicles include flex-fuel models, 2001 and newer Porsches, 2012 and newer GM vehicles and 2013 Fords. So unless you drive a Porsche or a brand new car, you could be out of luck when it comes to E15.

The only responsible action to take now is to suspend the sale of E15 until consumers are better informed and protected at the pump. AAA did not come to this decision lightly. We arrived at this recommendation only after extensively reviewing the existing research, surveying automakers and conducting a national poll finding that only five percent of Americans had heard of E15.

The simple truth is that E15 is a product not yet ready for public consumption, and government regulators have an obligation to suspend sales until these issues are addressed.

AAA recommends the EPA, fuel producers and automakers collectively develop a long-term plan that promotes public education, while implementing improved labeling and warnings at the pump. Additional research also is necessary to better understand the full consequences of using E15 in older and newer vehicles.

AAA urges regulators and the renewable fuels industry to consider the interests of consumers first by immediately suspending the sale of E15 before American motorists are left footing the bill.

Podcasts

B-Roll

YouTube Videos

AAA Senior Driver Expos

NewsRoom Video Gallery

Media: Find and Download AAA Videos and B Roll.