What To Consider When Buying An Extended Vehicle Warranty

There’s a lot of negative talk about extended vehicle warranties—partly due to the fact that there are a number of warranty scams. However, an extended auto warranty often works in your favor. A common cliché you may hear: someone will complain that they paid $1,500 for an extended warranty and only filed claims for $800 and complain that they did not get the value for their money. But warranty is just like an insurance policy in that you hope to never need it.

It’s important to understand how warranties work, what coverage they extend, and how to evaluate the merits of a particular warranty. There is no universal black-and-white answer; you have to make a decision based on your individual situation.

Here are a few guidelines to follow when considering an extended warranty.

Avoid warranty scams—buy from a reputable dealership.

Be suspicious of mail, phone or email solicitations. For example, you may receive a letter in the mail that says “Your vehicle’s warranty is about to expire.” Many of these solicitations are outright scams. Many others represent fly-by-night companies that will be out of business in six months. There is a very high risk of handing over your hard-earned money only to find that no one answers the phone when it comes time to cash in on the coverage you’ve paid for. Not all third-party solicitors are scammers, but if you get a letter or phone call from an unknown company trying to sell you a warranty, you won’t really know if they’re legitimate or not until it’s too late. If you fall for a warranty scam, getting your money back is difficult at best and often impossible.

A local dealer with whom you have a long-standing relationship is a much safer place to buy your warranty, especially if you plan to have your vehicle serviced there. Anonymous solicitors can simply disappear off the map and leave you with no way to track them down. Dealers rely on face-to-face relationships and a good standing in the community to stay in business! Despite the stereotype of the “used car salesman,” the reality is that most car dealerships are run by honest people

Know the limits of your coverage.

Customers sometimes become upset when they discover that their warranties don’t cover everything they thought was covered. For example, warranties are sometimes sold as “bumper to bumper coverage” but do not actually cover everything. Warranties come in all shapes and sizes—more basic “power train” warranties often cover only a car’s major systems, whereas higher tiered warranties will cover a more comprehensive list of systems and potential defects. Many warranty plans include oil changes, roadside assistance and/or scheduled preventative maintenance. This can keep your auto maintenance expenses predictable by bundling the total costs into your car payment.

Here are some items that are generally not covered by warranties:

• Anything resulting from owner neglect or willful damage (e.g. ignoring a low oil pressure light)
• Damage resulting from an accident, weather or vandalism (your insurance policy should cover this)
• Scratches or dents from shopping carts or parking lots
• Torn or scratched upholstery or any damage to the interior

Redundancy and Transferability

When buying a new car, your manufacturer’s warranty will usually provide the coverage you need for the first few years. The original manufacturer’s warranty on most vehicles is transferable from owner to owner, which is why it’s often advantageous to buy a pre-owned car that’s only one or two years old. Extended warranties tend to be non-transferable from owner to owner. If you buy a new or certified pre-owned car from Folger Subaru, you get lifetime coverage for new cars and limited power train coverage for pre-owned cars.

No matter how reliable a car you buy, there is always a degree of risk. No manufacturer can give a 100% guarantee that nothing serious will go wrong with a car. An extended warranty alleviates the risk of a surprise auto repair bill due to an unexpected mechanical problem.

If you’re in the market for a new vehicle, we’d love to have you stop in to test drive a new or pre-owned Subaru today!






5701 E. Independence Blvd Charlotte, NC 28212
Sales: (888) 703-8351
Service:(866) 306-3293
Fax: (704) 535-8204

New Cars vs. Pre-Owned Cars

If it’s time to replace or upgrade your vehicle, you may be thinking about whether it makes more sense to buy a new car or a pre-owned car. There are pros and cons to both options, but here is the trade-off in a nutshell. With a new car, you get greater peace of mind, more flexibility to customize your options, and dealer-factory incentives (such as cash back or 0% financing) that are not available for pre-owned car purchases. With a pre-owned car, you can often enjoy substantial savings and still get many of the benefits of buying a new car. We’ll take a closer look here.

Depreciation and Gap Insurance

You may have heard it said that a new car loses thousands of dollars in value the minute you drive it off the lot. While it is true that a vehicle’s depreciation is sharpest during the first three years of its life, this has changed in recent years. Today’s new cars tend to retain their value better than new cars did in the past. The field of automotive engineering has improved, and mechanical issues do not develop as easily as they did in older cars. However, depreciation is still a significant factor. You’ll also need to purchase gap insurance for a new vehicle in case you are involved in an accident while the car is still new (this is often also necessary for pre-owned vehicles, but not always).

Monthly Payments

There are a number of variables that affect your total monthly payment for a car. The amount of money you have available for a down payment, the value of your trade-in (if you have one) and your credit score are obvious heavily-weighing factors, but these will come into play regardless of whether you buy new or used. If you purchase a new vehicle, dealer-to-factory incentives can significantly lower the amount needed for a down payment. You can also apply cash back to the principal of the loan, which will lower your payments a bit more. Finally, with new vehicles, you can typically get auto loans with longer payback periods (up to 72 months) whereas with a pre-owned car, you may only be able to get 48- or 60-month financing. The net result: new vehicles are often just as affordable as pre-owned vehicles, and sometimes the monthly payment even works out to be less.

Vehicle Condition & Price

One reason why some people prefer new vehicles over pre-owned vehicles: they may be concerned about the car’s history (or whether or not the prior owners took good care of the car). While this is a legitimate concern in many cases, buyers don’t have nearly as much risk as before. The stereotype of the used car salesman has become largely a thing of the past—partly because vehicle history is much more transparent than before. When dealerships take cars on trade-in, they are able to assess the market value of the car based on a more complete set of information. This transparency has led to a more level playing field. It’s difficult for dealers to make excessive markups on pre-owned cars—and it’s easier for you to see the full picture of what you’re buying before you buy it.

There’s no black and white answer as to whether it makes more sense to buy a new car or a pre-owned car, but you can find an excellent selection of both at Folger Subaru. Our sales consultants will help you to find the vehicle that meets your needs with no hassles or high-pressure sales tactics.

Stop in for a test drive today.





5701 E. Independence Blvd Charlotte, NC 28212
Sales: (888) 703-8351
Service:(866) 306-3293
Fax: (704) 535-8204

Leasing a Car vs. Financing

Is it a better deal to lease or buy a new car? The answer to that question depends on the specific situation, but here are a few general guidelines that you can use to determine the best financial approach for selecting your next vehicle.

Value for the Money

When you buy a car, you are paying (or financing) the full retail price of the vehicle. When you sign a lease, you are paying for the expected depreciation on the vehicle for the life of the lease. (For simple math, if you lease a $20,000 car and it is expected to lose half of its value, your lease payments will total $10,000. If you buy the same car, you pay $20,000.) This means that leases allow you to have access to a higher end car than you what you might be able to afford to buy.

Equity

The most obvious benefit of buying a car is that you own equity in the vehicle. When you make payments on a car loan, a portion of the payment goes toward the principal. If you make all of your payments on time, you will own the title to the car at the end of the agreed-upon amortization schedule. With a lease, you own nothing when the lease expires. (One important point to make about vehicle equity: it’s not the same as home equity. If, for example, you have determined that it’s better in your situation to own a house than to rent an apartment, don’t jump to the conclusion that owning a vehicle is automatically better than leasing one. Houses tend to appreciate in value over the long term, whereas cars always depreciate in value.)

Market and Price Fluctuation

Leases are more predictable when it comes to market value, since the amount of depreciation that you are paying for is agreed upon at the beginning of the lease, regardless of market conditions at the time when your lease expires. In other words, if you lease a car, the lessor assumes the pricing volatility risk. When you buy a car, on the other hand, you will have to cover the difference if your car’s market value is less than expected (or reap the benefits if it retains more value than expected).

Mileage

Auto leases restrict the number of miles that you can drive the car. It’s typical for a lease to come with a limit of 12,000 miles per year. If you exceed that limit, you will be assessed a per-mile overage fee. This can add up quickly, especially if you take a lot of long road trips or if you commute a long distance to work. However, many dealers also offer high-mileage leases that can work out to be advantageous in a number of cases. When you own a car, there are no restrictions on mileage.

Taxes

If you use your car for business at least part of the time, you can deduct a portion of your lease payments on your taxes. Leasing a car can sometimes offer distinct tax advantages for this reason. You should consult your CPA or tax advisor about the tax implications of owning or leasing your vehicle if you plan to use it for work.

Maintenance

If you drive home a new vehicle—whether you buy it or lease it—the manufacturer’s warranty will cover all of the major systems, usually for at least three years. Certified pre-owned vehicles typically come with some degree of warranty coverage as well. It’s common for leases to expire before the manufacturer’s warranty runs out, which means that you won’t be paying any significant maintenance costs aside from oil changes and other regular maintenance. Longer leases may extend beyond the warranty period. If you own a car and plan to keep it for a long time, maintenance may become more of an issue after a few years.

Upgrades and Customizations

If you have a desire to customize your vehicle, you will have much more flexibility and freedom to do so with a car that you own. For example, you may want to install an aftermarket stereo system, change the paint color or make any other cosmetic enhancements, a lease will make upgrades difficult or impractical. You may have to reverse any modifications prior to turning in the car at the end of the lease (aside from the fact that you’re paying to improve someone else’s vehicle).

It’s impossible to give a generalized answer as to whether it’s better to lease a new vehicle or to buy one, especially since lease terms can vary widely. Not sure whether a lease or purchase makes the most sense for you? Stop in or give us a call today to discuss the vehicles and options best suited to your needs.





5701 E. Independence Blvd Charlotte, NC 28212
Sales: (888) 703-8351
Service:(866) 306-3293
Fax: (704) 535-8204

#ShareTheLove Event 2014: Thanks for Your Support!

The 2014 Share the Love Event was a wonderful success, and our team was pleased to be able to donate some much-needed supplies to the Humane Society of Charlotte, thanks to the generosity of our local community! This Subaru Forester is filled with dog & cat food, kitty litter, toys, treats, bedding and blankets donated to the Humane Society by our employees and customers.
The Humane Society of Charlotte adopted out over 3,800 animals last year, and their goal is to reach 4,000 in 2015. They provide a wonderful service to our local community, and their outreach program offers free spay and neuter for certain areas of our city. We are grateful for the opportunity to contribute in a small way to their organization.





5701 E. Independence Blvd Charlotte, NC 28212
Sales: (888) 703-8351
Service:(866) 306-3293
Fax: (704) 535-8204

4 Ways to Increase Your Chances of Keeping Your New Year’s Resolutions

New Year’s resolutions are a long-standing tradition, but most people have discovered that it’s much easier to promise something than to make a permanent habit change. According to a 2013 Forbes article, only 8% of people keep their New Year’s resolutions. Gyms and diet clubs see a spike in membership sales every January. Restaurants sell more salads in January.

It’s common to experience a moment of inspiration and pledge to turn over a new leaf in the new year, but sustained motivation is much more difficult to achieve. When you make a New Year’s Resolution, you will need a strategy to fulfill on it. Motivation requires energy and effort to sustain. Different goals require different approaches, but here are three basic practices that can be adapted to any area of life.

Look “upstream” of your difficult choices.

Many people fail to accomplish their goals because they depend on their willpower to be strong at the moment when it will predictably be at its weakest. By anticipating your moments of weakness, you can make a better decision that will shield you from temptation at the moment of truth. For example, if you have made a pledge not to overindulge on junk food, it’s much easier not to buy junk food when you are at the grocery store than to buy it and try to restrain yourself from eating it. On the other hand, if you are in sales and have pledged to make more sales calls, you might make this easier by getting in the habit of planning out your sales calls for the next day each evening. For any habit you want to change, look at the decisions leading up to it and see how you can change those decisions for the better.

Take steps rather than big leaps.

Most people find that radical changes to daily routines are the hardest to sustain for the long haul. If you don’t exercise at all, resolving to work out for 30 minutes a day, 5 days a week may be a recipe for discouragement. Instead, consider taking one small step forward at a time. For example, you might choose one simple exercise that you can do in one minute and do it first thing every morning. Then, when this habit has become firmly ingrained, add another simple habit.

Change your environment.

Making simple changes to your environment is a powerful way to remind yourself of your own commitment to your new way of life. It doesn’t have to be fancy or complicated; even rearranging the furniture in your office will force you to walk a different path to your chair. Even this simple behavior change will create a subtle change in your thinking.

Track your habits and results.

Progress toward any goal is often slow and hard to see. When we don’t measure what we do, it’s easy to develop the perception that we aren’t making any progress. Keeping track of your activity is a good way to stay encouraged and hold yourself accountable. Simple is the key word here. You might try, for example, marking a check-box on your wall calendar for every day that you kept your promise to yourself. When you start to see measurable progress, this is a good natural motivator to stay on course.

Rome wasn’t built in a day—success requires consistent exertion of effort one day at a time. If you make New Year’s resolutions this year, give some thought to the factors that could derail your resolution and develop a strategy for success.

Happy New Year from all of us at Folger Subaru of Charlotte!






5701 E. Independence Blvd Charlotte, NC 28212
Sales: (888) 703-8351
Service:(866) 306-3293
Fax: (704) 535-8204

Why “Gap” Insurance Is Important

Gap insurance is ideal for new cars, leases and recent-model pre-owned cars. Some car buyers assume that “full coverage” on an insurance policy means an ironclad guarantee that if their car is totaled or stolen, it will be replaced at no cost (other than the policy deductible which is typically $500). Unfortunately, that’s not the case.

Cars are a type of asset that depreciates in value over time. Depreciation is especially sharp during the first few years of a car’s life. When you drive a new or late-model pre-owned car off the lot, the value of your car decreases more rapidly than the balance of your loan. In other words, your debt will likely exceed the value of the car for the first 1-2 years. This condition is referred to as being “upside down.” If you get into a bad accident and your insurance company declares your car a total loss, you will be responsible for paying the difference between the car’s book value and the balance of the loan—which can add up to a hefty amount of money.

Let’s look at a couple of scenarios. Suppose you bought a brand new car for $22,000. You were able to buy the car with $1,000 down and 4% financing with a 72-month loan period. Your payment is $345/month. Six months later, the car is totaled in an accident. Your insurance company pays you $18,300 (based on the current book value of the car) less your $500 deductible ($17,800). Meanwhile, you still owe $19,340 on the loan. The balance of $1,540 comes out of your pocket.

There are a number of factors that can influence the size of the gap between a vehicle’s book value and the amount owed at the time of a total loss. The higher the sticker price of the car, the greater the gap will be during the upside-down period. If you bought the car with zero money down, you will start with a hefty gap. If you financed the purchase with an extended loan period (as in the example above), the loan will amortize slowly—meaning that the “gap” will shrink slowly. Finally, if you were upside-down on your old car when you traded it in (adding the negative equity onto your new car loan), this will also exacerbate the gap in the event of a total loss.

If you are leasing your vehicle, gap coverage is even more critical. One of the primary benefits of leasing a car instead of buying is the fact that you get to drive a higher-end vehicle for a similar monthly payment. That means that the depreciation on the vehicle will add up to a higher dollar figure and a higher “gap” in the event of a total loss. For this reason, many leases require gap insurance and include the cost in the lease payment, but don’t assume that. Make sure to read your lease terms and understand your gap coverage.

Most dealers will explain gap coverage to you, but make sure to ask if your loan includes gap coverage. Unless you are paying at least 20% down on your vehicle, you will most likely need gap insurance.

If you’re in the market for a new vehicle, stop in this week and test-drive one of our Subarus!


5701 E. Independence Blvd Charlotte, NC 28212
Sales: (888) 703-8351
Service:(866) 306-3293
Fax: (704) 535-8204

Common Winter Car Problems and How to Avoid Them

While North Carolina is less prone to severe winter storms, cold temperatures can still affect your car. Those of us who have lived in the Southeast region during past winters know that the temperature can drop like a stone without warning! Here are a few things to look out for this winter.

Bad Battery

For a number of different reasons, dead car batteries tend to be a bigger issue during the cold winter months than at other times of the year. If you haven’t had your battery tested in awhile, now is an important time to do it. Also, take a look at your battery cables and make sure that they are not corroded or rusted. For older vehicles, the connectors on your battery may need to be replaced to ensure a good connection. Double check to make sure that you have jumper cables in your trunk—and that they are in good condition. Replace old or rusted jumper cables. Should you find that your car will not start, resist the temptation to crank the starter over and over. This will just drain the battery and make matters worse.

Frozen Emergency Brake

As a rule, avoid using your emergency brake in the winter unless you absolutely have to. There’s really no reason to use the emergency brake most of the time anyway unless you are parked on a hill. When the temperature drops below freezing, your parking brake can become stuck in the engaged position. If you drive a car with a manual transmission, you can park the car in first gear; for an automatic, put it in park. During the cold months, avoid parking on inclines even if it means walking further.

Obscured Windshield Visibility

Windshield road dirt is a serious hazard during the winter, particularly if you do a lot of highway driving. On the first day of driving in inclement winter weather, you may suddenly begin to depend on the washer and wipers just to be able to see out of your windshield. Make sure that you have plenty of windshield washer fluid (including a bottle in your trunk)—and make sure that your windshield washer actually works. It’s not uncommon to go most of the year without using the washer (or using it infrequently). Be sure to replace windshield wipers if they are worn. On nights where the temperature falls below freezing, don’t scrape or pry wipers away from the windshield if they have frozen to the glass. Doing so could damage the wipers and prevent them from working correctly when your windshield becomes clouded.

Windshield Cracks

Cracks in the windshield are most likely to form during the winter. This is due to the constant temperature fluctuation and the stress it places on the windshield. The combination of cold air on the outside of the car and hot air from the defroster causes tiny micro-cracks to expand. If you have a “star” or a tiny crack in your windshield, you may be able to prevent it from growing into a crack. See a windshield repair specialist to find out what can be done.

Frozen Door Locks

On especially cold nights, the door locks can freeze up. Spraying a tiny bit of WD-40 lubricant into the locks ahead of time can help to prevent them from freezing. If you do find your door locks frozen, do NOT use a lighter to heat your key. Most recent-model cars have electronic chips inside the key fob that can be damaged. (You could end up with a key that gets you into your car but fails to start the ignition.) Also, don’t pour hot water onto the lock (unless you’re planning to park your car in a warm garage the next night). This may temporarily resolve the situation, but will only make matters worse when the hot water cools down and freezes. Thawing out the lock with a hair-dryer is a better option (if you happen to have access to a hair dryer and an extension cord).   Be sure to stay safe this winter by taking these important precautions. If you’re considering upgrading to a newer vehicle before the winter sets in, give us a call or stop by!



5701 E. Independence Blvd Charlotte, NC 28212
Sales: (888) 703-8351
Service:(866) 306-3293
Fax: (704) 535-8204

The Subaru 2014 Share the Love Event

If you drive home a new Subaru between now and January, you automatically become a part of our Share the Love event—now in its seventh year. Subaru supports a number of different charities as part of this annual event. $250 from the sale of your vehicle will go to support one of our partner charities—and you get to pick which one.

Here are a few of the things that the Share the Love event has made possible:

• Subaru has donated $9 million to the ASPCA, which helped to put 1,200 pets in new homes.
• The Make-A-Wish Foundation received more than $4.5 million, helping to grant over 600 wishes for children with life-threatening medical conditions.
• Meals on Wheels was able to deliver over one million meals to seniors, thanks to contributions from the program.
• Subaru has helped to provide the funding for 71 national parks, in partnership with the National Park Foundation.

Subaru dealerships around the country work with local charities as part of the Share the Love event. In 2012, Folger Subaru of Charlotte partnered with Make-A-Wish® Central & Western North Carolina. We donated $100 from the purchase of each new Subaru at our dealership to the local foundation. In addition, we sold Christmas tree ornaments and collected monetary donations to raise additional funds for the charity.

2014: The Humane Society of Charlotte

For this year’s Hometown Charity, we have selected The Humane Society of Charlotte. The Humane Society helps to put pets into loving homes and also provides free and low-cost veterinary clinic services, including spaying/neutering and microchipping. At any given time, they house 120 to 150 animals at their facility. The Charlotte Humane Society does not receive any federal or state grants; they rely solely on private donations and the generous support of over 500 volunteers.

Here are just a few things that the Humane Society of Charlotte accomplished recently:

• They placed 2,715 dogs and cats into permanent homes in 2013.
• They performed 12,009 spay/neuter surgeries at two clinics in 2013. (Since the clinic opened in 1982, they have altered over 250,000 animals and prevented billions of unwanted births.)
• Approximately 1,517 animals were fed through the HSC pet food bank, where they distributed over 16,000 pounds of food to those in need.

When you buy a new Subaru from Folger Subaru of Charlotte, Folger Subaru and Subaru of America will donate $250 of the proceeds to the charity(ies) of your choice. Click here to select whom you would like to support. If you select more than one, the $250 from your vehicle will be evenly distributed between the different charities.

As always, all new vehicles purchased at Folger Subaru of Charlotte come with the Ward Williams Promise: a lifetime warranty including towing. Purchase a new Subaru between now and January 2, and your purchase will benefit a good cause.

5701 E. Independence Blvd. Charlotte, NC 28212

• Sales: (888) 703-8351
• Service: (866) 306-3293
• Parts: (888) 703-0991
• Body Shop: (704) 535-8204

Proudly Serving The Greater Charlotte, NC Metro Area!

The 2015 Subaru Forester

The 2015 Subaru Forester is an excellent all-purpose compact SUV. It’s extraordinarily reliable, provides ample cargo space, maneuvers well, delivers good fuel economy, allows for wide-open rear visibility, and comes equipped with unparalleled safety features. Subaru did not introduce a lot of updates on the 2015 model (Subaru typically rolls out major engineering changes once every five years). The frame and dimensions are nearly identical to last year’s model with only a few minor adjustments. The Forester is the perfect vehicle for the weekend warrior, bringing the outdoor ruggedness that Subaru owners have come to love.

Here are some of the highlights in the 2015 Forester:

• Subaru EyeSight® driver assist system with crash prevention, lane departure warning and adaptive cruise control now available on more models than 2014 (previously available only on the Touring)
• Back-up cameras are standard equipment for all models of the 2015 Forester.
• Panoramic moon roof is now standard
• Optional 18” High-Luster Wheels (Touring model only)

This year’s model still contains a 2.5L, BOXER® 4-cylinder engine delivering 170 horsepower and 174 pound-feet or torque. Like the 2014 model, the 2015 Forester comes with a continuously variable transmission (CVT), updated in 2014 from the previous 4-speed automatic transmission and creating a significant improvement in highway gas mileage (EPA rating: 32 mpg highway / 24 mpg city). Limited, Premium and Touring models come equipped with X-MODE™ traction assist system with Hill Descent Control.

For the month of November only, Folger Subaru of Charlotte is offering a $249/month* lease on the Forester (normally $299/month). If you’re considering a new vehicle, come in today to test-drive the 2015 Subaru Forester. We’re sure you’ll love it!

Click here to schedule an appointment with one of our sales reps. (An appointment is not required, but it helps to ensure faster service.)

*Stock #515313, 36 months, $2,000 due at lease signing + tax, tag and $649 admin fee. 12k miles per year.

5701 E. Independence Blvd. Charlotte, NC 28212

• Sales: (888) 703-8351
• Service: (866) 306-3293
• Parts: (888) 703-0991
• Body Shop: (704) 535-8204

Proudly Serving The Greater Charlotte, NC Metro Area!

Alternative Fuels of the Future

Standard gasoline is a finite resource, which has scientists and drivers starting to pay attention to the alternative fuels of the future.

Solar recharging is one alternative to internal combustion that has been around for a long time. Solar-powered cars have been in development for decades, but solar batteries have not so far proved efficient or powerful enough to power a modern car at a significant speed for any great distance under normal weather conditions. Efficiency of solar cells is being improved all the time, however, and solar power could still have its “day in the sun” as an alternative fuel of the future.

Biodiesel is another area where a significant amount of scientific research and development has already been invested. Crops including corn, wheat, and sugar cane can be harvested and converted into “biofuel”—usually ethanol-based. In fact, the enthusiasm for biofuels has created its own problems, as in some areas it has reduced the amount of farming land available to produce food for local populations. Biodiesel also has some of the same environmental implications as gasoline, releasing carbon dioxide into the atmosphere (although it contains far less of other polluting chemicals). Thus, while it is certainly a renewable energy source, there is disagreement among scientists and motorists about whether biodiesel is truly an alternative fuel of the future.

But if solar recharging and biodiesel from ground crops don't sound as though they're quite going to replace your unleaded gasoline any time soon, there are other options. Scientists have been excited about algae for a long time. As the world's population grows, and natural resources dwindle, many believe that simple algae, which grows abundantly in our oceans, could point the way both to alternative fuels of the future, and also to potential sources of food for future generations. It could be a practical, if not exactly appetizing, solution.

Hydrogen fuel cells are another potential fuel of the future, and one which is already being taken very seriously indeed. Hydrogen is a “lighter than air gas” which is estimated to make up as much as 75% of all matter in the universe. It's therefore both abundant and fairly simple to derive from both water and air. The widespread uptake of hydrogen fuel cells would, however, require massive investment in transport infrastructure: first, in terms of transporting and storing hydrogen gas, and second, in converting cars to run on the material, which differs from ethanol in that it requires making major changes to cars' engines.

There's also some concern over the safety of hydrogen as a widespread fuel. It is highly explosive when mixed with oxygen, which is why we don't use the gas to power airships anymore! Any new technology will bring its own challenges, and sooner or later we will have to choose one option or the other to replace dwindling reserves of crude oil.