Auto news and reviews from Car Buyer's Notebook.com: Finance: March 2007 Archives

March 30, 2007

Chrysler Group Announces Pricing on 2008 Chrysler Sebring Convertible

- With a starting U.S. Manufacturers Suggested Retail Price of $26,145 (including $675 destination), the all-new 2008 Chrysler Sebring Convertible is priced $645 below the comparable outgoing model with $2,965 more standard content

- Chrysler Sebring Convertible delivers open-air freedom with elegant coupe styling and functionality of a year-round car

- Model line-up offers a broad range of powerful and fuel-efficient powertrain and feature combinations

AUBURN HILLS -- Chrysler is raising the roof on the convertible segment, introducing the all-new 2008 Chrysler Sebring Convertible.

With a starting U.S. Manufacturer's Suggested Retail Price of $26,145 (including $675 destination), the Chrysler Sebring Convertible is priced $645 below the comparable outgoing model with $2,965 more content, including standard side seat-mounted air bags for head and thorax protection, four-wheel disc anti-lock brakes, tire-pressure monitoring system, automatic latching convertible top, standard hard tonneau cover, AM/FM stereo with six- disc CD player, six-way power driver and passenger seats and a tilt/telescoping steering wheel.

Continue reading "Chrysler Group Announces Pricing on 2008 Chrysler Sebring Convertible"

March 30, 2007

Report: No bonuses for top GM executives

NEW YORK -- General Motors, which significantly improved its financial performance in 2006 but did not make a profit, will not pay cash bonuses to top executives for the second consecutive year, the New York Times reported. GM spokeswoman Renee Rashid-Merem told the newspaper that the decision affected about 20 people, including CEO Rick Wagoner and Vice Chairman Robert Lutz.

Gasoline prices set to hit new record highs

San Francisco's surging gasoline prices stand poised to smash their old record of $3.36 for a gallon of regular, perhaps as early as today.

Some stations in the city already have passed that record, set last May.

Although San Francisco's average gasoline price reached $3.34 Thursday, individual stations were charging as much as $3.98.

And yes, that's $3.98 for regular. Want premium? At least one San Francisco station was charging $4.18 per gallon.

The national average for a gallon of regular stands at $2.62, up 48 cents since the end of January. California's average is $3.22, up 70 cents in the same period. No other state average tops $3 per gallon, although Hawaii might pass that mark this weekend.

March 29, 2007

Audi Announces 2008 R8 U.S. Pricing

AUBURN HILLS, Mich. -- Audi of America, LLC announced today pricing for the all-new 2008 R8 sports car. The R8 with a six- speed manual transmission will have a manufacturer's suggested retail price of $109,000 when it launches this fall in the United States. Models equipped with the six-speed R tronic automatic gearbox will start at $118,000.

The R8 is the first mid-engine sports car Audi has ever produced. With a 420 hp V8 4.2L FSI engine and rear-biased quattro(R) all-wheel drive system, the R8 has the performance capabilities unlike any Audi before it. With a zero to 60 mph time of 4.4 seconds and a top speed of 187 mph, the R8 is the fastest Audi ever produced. The lightweight aluminum frame and body and 44:56 front-to-rear weight distribution give the R8 tremendous handling capabilities, with the balance expected of a mid-engine sports car.

Continue reading "Audi Announces 2008 R8 U.S. Pricing"

Zipcar, Mass. Enhance Partnership to Reduce Car Ownership, Increase Commuting Options

Partnership introduces Zipcars to additional stations, brings car sharing to Malden, Quincy, Newton, and Braintree

CAMBRIDGE, Mass. -- To reduce car ownership and provide more commuting options, Zipcar and the Massachusetts Bay Transportation Authority (MBTA) today announced a multi-faceted partnership that will expand the Zipcar program to a dozen T locations along the Green, Orange and Red lines, making it easier for people to live and work car-free in the city.

Partnered with Zipcar since 2002, the MBTA is the first transit agency in the country to house vehicles at various transit stations throughout its service area. Through this partnership, the MBTA will expand Zipcar locations from three to twelve. Currently, a Zipcar is available at Alewife, Forest Hills, JFK/UMass, and Savin Hill stations. Over the next few months, 20 more spaces will become available at 8 stations along the Red, Orange, and Green lines.

Continue reading "Zipcar, Mass. Enhance Partnership to Reduce Car Ownership, Increase Commuting Options"

U.S. Automakers Endorse Japan Currency Manipulation Act

Applaud Stabenow Legislation to Force Action Against Japanese Currency Misalignment

WASHINGTON -- The Automotive Trade Policy Council, whose members include General Motors, Ford and DaimlerChrysler, praised legislation introduced today by Senator Debbie Stabenow (D-MI) to force the Japanese government to take action to stop subsidizing millions of auto exports to the U.S. by bringing its currency into proper alignment with the U.S. dollar. The Japanese Currency Manipulation Act would require the administration to immediately begin the process of pressuring Japan directly as well as coordinating with other major industrialized countries and the IMF to put a stop to Japan's damaging currency policy.

Continue reading "U.S. Automakers Endorse Japan Currency Manipulation Act"

US Automakers Say Report Confirms Urgent Need to Strengthen Yen, Reduce Risk of Global Recession

Yen at 'lowest level since 1986' on a real effective basis according to report

WASHINGTON -- A new report by 30 leading economists calling for an increase of 25-30 percent in the value of the yen to the dollar is "a timely and urgent reminder to US policymakers about the dangers to the US and global economy if action is not taken to address the extreme and dangerous misalignment of the dollar with major Asian currencies, particularly Japan's," said Stephen Collins, president of the Automotive Trade Policy Council, a trade association representing General Motors, Ford and DaimlerChrysler Corp.

Continue reading "US Automakers Say Report Confirms Urgent Need to Strengthen Yen, Reduce Risk of Global Recession"

March 26, 2007

Driving Cost Per Mile Calculated at 52.2 Cents for 2007

AAA Calculates Cost of Car Ownership and Operation for 100 Miles of Driving is $52.20

ORLANDO, Fla -- Consumers feeling pinched by increases in day-to-day living expenses can take some comfort in AAA’s annual study of driving costs released today. According to the nation’s largest organization for motorists, the cost of owning and operating a new vehicle in 2007 remains basically unchanged from a year ago at 52.2 cents per mile, or $7,823 per year, when driving 15,000 miles annually.

“While costs for some items such as insurance and financing increased from the start of 2006, a lower cost for fuel at the end of last year offset these expenses resulting in no net increase in the average driving expense for 2007,” said John Nielsen, director of AAA’s Approved Auto Repair network.

Continue reading "Driving Cost Per Mile Calculated at 52.2 Cents for 2007"

U.S. gas prices rise to $2.61 a gallon

NEW YORK - U.S. average retail gasoline prices rose over the past two weeks, though at a slower pace than seen last month, reflecting strong demand and production shortfalls at refineries, according to an industry analyst.

The national average for self-serve regular unleaded gas was nearly $2.61 a gallon on March 23, up about 5.6 cents per gallon in the past two weeks, according to the nationwide Lundberg survey of about 7,000 gas stations.

The price of filling up is 11 cents a gallon higher than it was last year, but still 42 cents below the record high reached on August 11 last year, analyst Trilby Lundberg said.

March 20, 2007

Wolfsburg edition Passat now at VW dealers

AUBURN HILLS, Mich. – Volkswagen of America, Inc. announced today that the Wolfsburg Edition Passat is now available at dealers. Volkswagen will produce approximately 6,000 of these special edition models.

The Wolfsburg Edition Passat continues the tradition of offering value priced special editions. This edition features a 2.0L, 200-horsepower turbo-charged engine with a standard six-speed automatic Tiptronic® transmission.

Continue reading "Wolfsburg edition Passat now at VW dealers"

March 19, 2007

Nissan North America Announces Increase in Destination and Handling Charges

NASHVILLE – Nissan North America, Inc. (NNA) today announced increases in Destination and Handling charges for all 2007 Nissan and Infiniti models.

Effective March 19, 2007, the new Nissan Division D&H charges will be $625 for Versa, Sentra, Altima, Maxima and 350Z; $705 for Quest, Frontier, Murano, Xterra and Pathfinder; and $745 for Armada and Titan.

The new Infiniti Division D&H charges will be $715 for the Infiniti G sedan and coupe and the Infiniti M sedan; $760 for the Infiniti FX crossover SUV; and $815 for the Infiniti QX56 full-size SUV.

Dollar, Thrifty Car Rental Join Northwest Biz Perks Program

TULSA, Okla. -- Dollar Rent A Car and Thrifty Car Rental, subsidiaries of Dollar Thrifty Automotive Group, Inc., are giving Northwest Airlines Biz Perks program members two more great reasons to earn Biz Perks points.

Effective immediately, Biz Perks members who sign up for a DOLLAR or Thrifty Car Rental corporate account via the Northwest Airlines Biz Perks website will earn 250 points per qualifying rental transaction with Dollar or Thrifty. Additionally, members will receive 1,000 Biz Perks bonus points, which will be awarded after the third rental. (All three rentals must take place during the first year of membership).

Continue reading "Dollar, Thrifty Car Rental Join Northwest Biz Perks Program"

March 18, 2007

Mazda paying $25 for you to test drive their cars

Through April 2, 2007, test drive any Mazda vehicle and receive a $25 prepaid Visa card in the mail.

Porsche ushers in a $589/month lease for 2007 Cayman

e-mail from Porsche for their Cayman:

The only thing in life that is possibly more gratifying than the responsive nature of the Cayman is an equally gratifying offer on one. We'd like to make you aware that the lease rate on a Cayman starts at $589 per month. This financing offer is valid through March 31, 2007. We hope you can take advantage of this special offer and can enjoy the Cayman first hand. Offer valid in U.S. only.

California's Galloping Gas Prices Leave Other States in the Dust

LOS ANGELES -- Gas prices statewide and throughout Southern California surged past $3 a gallon and just kept going over the last week, creating an 80-cent difference in gas prices across the United States, according to the Automobile Club of Southern California's Weekend Gas Watch.

"California gas prices are now on average nearly 80 cents higher than the least expensive state, Wyoming, and about 60 to 70 cents higher than most other states," said Auto Club spokeswoman Carol Thorp. "Prices went up at a faster rate this last week than at any other time in 2007. A number of factors are combining to cause this quick increase, including some supply issues and a lot of speculation in the market by investors that is driving up wholesale gasoline prices."

Continue reading "California's Galloping Gas Prices Leave Other States in the Dust"

Tax Guidance for Hybrid/Alternative-Fuel Car Owners

Tax credits on 14 vehicles benefit green car buyers

CHICAGO -- Hybrid and alternative-fuel vehicles are well-known for their green credentials, but they can also save you money on your taxes. We've taken the guesswork out of tax credits for green vehicle buyers by offering consumers information about cars that qualify for a credit and explaining how and when credits for popular hybrid vehicles are expected to be phased out.

Thanks to the Energy Policy Act of 2005, certain cars purchased in 2006 can earn credits of up to $4,000 and there is still time for buyers to take advantage of these credits in their 2006 filing. To be eligible for the credits, vehicles have to fall into one of four categories: fuel cell, advance lean burn technology, hybrid or alternative fuel. Currently, the only mass- market cars that qualify are hybrids and one natural-gas-powered car, the Honda Civic GX.

The IRS offers credits on a total of 14 cars, ranging from $250 to $4,000. Here is a list of those cars and their corresponding credits:

Continue reading "Tax Guidance for Hybrid/Alternative-Fuel Car Owners"

March 16, 2007

Used Car Sales Significantly Impact New Vehicle Pricing and Brand Strength

Sales of New and Used Vehicles Are Strongly Interrelated, According to a New Study from the Car Internet Research Program and Capgemini

OTTAWA & PARIS -- The used car business is here to stay and will increasingly impact the new vehicle market in a variety of ways, including residual values, pricing, brand strength and customer relationships. As a result, manufacturer involvement in inventory management and used vehicle branding is crucial for enabling dealers to carry out successful remarketing programs.

Continue reading "Used Car Sales Significantly Impact New Vehicle Pricing and Brand Strength"

Hyundai Expands Azera Lineup With New GLS Model Featuring 28-MPG 3.3L V6 Engine

* New trim level -- GLS equipped with 3.3-liter V6 engine, which achieves
21 mpg city, 28 mpg highway

* 17-inch wheel and bumper moldings with chrome-inserts standard on SE

* Azera Limited with Ultimate Package now features a 605-watt Infinity Logic 7 Surround Sound AM/FM/XM/CD-changer/MP3 audio system with 12 speakers (including subwoofer) and external amplifier

* All three trims are equipped with standard Tire Pressure Monitoring System (TPMS)

FOUNTAIN VALLEY, Calif. -- Hyundai Motor America announced pricing today for the all-new 2007 Hyundai Azera GLS equipped with a powerful, yet fuel-efficient 3.3-liter V6 engine. The SE trim level has also been upgraded and a surround sound audio system is now available on the Limited model.

Continue reading "Hyundai Expands Azera Lineup With New GLS Model Featuring 28-MPG 3.3L V6 Engine"

March 15, 2007

Gas Prices Show Wide Discrepancy from Coast to Coast

BURNSVILLE, Minn. -- A statewide average gasoline price in excess of $3 per gallon in California is not likely to be seen in many markets east of the Rocky Mountains this spring, said Gail Weinholzer, director of public affairs, AAA Minnesota/Iowa.

According to AAA’s daily, on-line AAA Fuel Gauge Report (www.aaafuelgaugereport.com), the nationwide price of self-serve regular gasoline is currently $2.545 per gallon; although the statewide average in California is $3.121 per gallon. This wide price discrepancy is primarily due to rising demand for fuel on the west coast, the region’s limited refining capacity and strict air quality standards, and its relative isolation from fuel supplies elsewhere in the nation, Weinholzer said.

Continue reading "Gas Prices Show Wide Discrepancy from Coast to Coast"

GM launching March incentive program

General Motors is launching an incentive program today to spur March sales of certain Chevrolet, Pontiac, Buick, GMC and Saturn vehicles. The program starts March 15 and runs through April 3. GM's Cadillac, Hummer and Saab brands are not included. The program offers consumers 0 percent financing for up to 36 months and reduced-rate financing for up to 72 months on certain vehicles, GM says.

March 14, 2007

Triple White VW Convertible Available in L-T-D Edition

AUBURN HILLS, Mich. –Volkswagen of America, Inc. announced today that the limited edition Triple White New Beetle convertible is now available at dealers. Only 3,000 customers will have the opportunity to own this truly special edition.

The Triple White New Beetle convertible features a unique Campanella white exterior, a white interior, and white convertible roof boot. The Triple White New Beetle convertible takes its color palette from the original Super Beetle convertible of the late 70s. This modern day rendition includes 17-inch ‘Oktopus’ alloy wheels, a three-spoke leather wrapped steering wheel, white leatherette seats and center armrest.

Also included are black carpeting, floor mats and door panels along with Sirius Satellite Radio. Another distinctive feature of the Triple White New Beetle convertible is the special front seat headrests ingrained with the New Beetle convertible icon.

With the standard automatic transmission, the Triple White New Beetle convertible is priced at $25,990.

March 13, 2007

VW Rabbit receives 2007 Residual Value nod

AUBURN HILLS, Mich. – Volkswagen of America, Inc announced today that the 2007 Volkswagen Rabbit was chosen as Automotive Lease Guide’s highest projected resale value in the compact car segment. The annual award acknowledges automakers for producing vehicles predicted to retain the highest percentage of their original price. The models that are honored for best residual value are top-ranked vehicles in their relevant categories.

Automotive Lease Guide analyzes value, historical vehicle performance and industry trends in more than 1,100 vehicles in 13 vehicle segments to determine the automotive industry’s best residual values. The award is based upon Automotive Lease Guide’s projected residual values and industry analysis for the 2007 calendar year.

Continue reading "VW Rabbit receives 2007 Residual Value nod"

March 11, 2007

The 2008 Porsche Cayenne is here. Get a price quote.

For far too long, those of us with a desire for performance and a need for practicality have had to compromise. That is, until the Porsche Cayenne came roaring up in our rear view mirrors. The new Cayenne takes the original concept of a sporting vehicle with utility and pushes it to the next level.

The most obvious changes are on the outside. The front fascia now has restyled headlights and air intakes for a new more aggressive look. The rear valance features updated exhaust openings and taillights. Across the model line, the engines utilize a new direct fuel injection system to deliver more performance and fuel efficiency. And now the new Cayenne models are ready for you to experience at your Porsche dealer.

Get a price quote on the 2008 Porsche Cayenne.

Toyota Dealers Offer Discount On Newly Redesigned Tundra

Toyota Motor Corp. says some of its dealers are offering as much as a $1,500 discount on the basic work truck version of Toyota's newly redesigned Tundra truck, just barely one month after it went on sale. The discount for the Texas-built large truck reflects the intense competition in this lucrative segment, and the challenge Toyota faces in its effort to substantially expand its sales in a segment long dominated by Detroit brands.

The discount is a one-month, nationwide program that began this month and is described by Toyota as "another tool," to spur sales, in addition to relatively low APR and lease deals Toyota has already offered since the outset.

Brian Smith, corporate manager of truck operations at Toyota's U.S. sales unit in Torrance, Calif., said the program should help dealers be able to prod more basic work truck buyers who tend to be "either credit-challenged or battling with negative equity" with their existing vehicles to buy new Tundras.

"At this point in time we feel like many of our [basic-work-truck] buyers are facing those constraints" and need a further assistance to help them buy trucks, Mr. Smith said.

While the Tundra launch is still in its early stages, Toyota's top management in Japan is concerned about whether the company can meet a target of selling 200,000 new Tundras this year, according to senior Toyota executives who spoke on condition of anonymity.

Nissan Announces Pricing on 2007 Sentra SE-R

NASHVILLE, Tenn. – Nissan today announced pricing on the all-new Sentra SE-R and Sentra SE-R Spec V, the performance versions of the new larger, more powerful 2007 Nissan Sentra sedan.

The starting Manufacturer’s Suggested Retail Price (MSRP) for the Sentra SE-R, which features a 177-horsepower 2.5-liter DOHC 4-cylinder engine and Xtronic CVT (Continuously Variable Transmission) with steering wheel-mounted paddle shifters, is $19,400.

Continue reading "Nissan Announces Pricing on 2007 Sentra SE-R"

March 9, 2007

Budget Offers Bargain One-Way Rates From Florida

PARSIPPANY, N.J. -- It's that time of year again - Budget is looking to move its fleet north for the summer. Budget Rent A Car System, Inc. today announced special one-way rates from Florida to select locations in the continental United States through a limited-time offer that allows customers to rent a car in one place and return it in another, with unlimited mileage and no drop fees.

Continue reading "Budget Offers Bargain One-Way Rates From Florida"

Hyundai Prices Upscale Veracruz Crossover $11,000 Below Lexus RX350

FOUNTAIN VALLEY -- Hyundai Motor America has announced pricing for the all-new premium crossover, the 2007 Hyundai Veracruz. Hyundai has once again made luxury and performance attainable in previously unthinkable ways with a base price more than $11,000 lower than the Lexus RX350.

Veracruz's designers recognized that the needs and desires of traditional SUV buyers weren't being met and focused on meeting those needs in an elegant and ingenious way. The result is a spacious crossover that delivers refined style, a supple ride and first-rate performance at previously unavailable prices.

The all-new Veracruz is available in three trim levels: GLS, SE and Limited. All models include standard Electronic Stability Control (ESC), a powerful, fuel-efficient 3.8-liter V6 engine, Hyundai's first six-speed automatic transmission, seating for seven, upscale amenities and more cargo volume than the full-size Mercedes-Benz GL.

2007 Hyundai Veracruz Manufacturers Suggested Retail Pricing:

Continue reading "Hyundai Prices Upscale Veracruz Crossover $11,000 Below Lexus RX350"

March 8, 2007

Certified Sales Continue to Rise

DETROIT — Even though Jack Frost was busy dumping large quantities of snow on much of the country in February, Autodata Corp. reported that certified sales maintained their momentum for the month, coming in at 129,461 units, up 3.2 percent from the previous February.

The company noted that both February 2007 and February 2006 had the same number of selling days — 24. When compared to January's results, February's sales were up 1.8 percent, even though the latter month had one less selling day.

In a breakdown of market share, Autodata said domestics grabbed 48.3 percent of the market, down 2.3 percent, while the European share was 14.1 percent, down 1.1 percent. Asian automakers' share was up 3.4 percent, reaching 37.6 percent.

Overall, General Motors reported it sold 42,855 CPO units, up almost 6 percent from the same month last year.

BMW Celebrates 11 Years of With Susan G. Komen for the Cure

Donated funds will top $11 million for Susan G. Komen for the Cure as the 237-stop nationwide fundraising tour crosses the country

ATHENS, Ga. -- The million-mile, cross-country grassroots fundraising drive that has raised more than $10 million for Susan G. Komen for the Cure over the past decade kicked off in Athens, Georgia today at Athens BMW, 3040 Atlanta Highway from 10 AM to 6 PM.

Thirty-eight specially-badged BMWs, decorated with pink modernist maps, arrived for the official start of The 11th Annual BMW Ultimate Drive Supporting Susan G. Komen for the Cure. Over the next eight months, the program will travel throughout the country, stopping at 237 BMW Centers nationwide with the goal of donating an additional $1 million to the cause.

Continue reading "BMW Celebrates 11 Years of With Susan G. Komen for the Cure"

Knowles Family Receives Award for Economic Empowerment at the Houston Hip-Hop Financial Summit

The 2007 National 'Get Your Money Right Tour' Kicked Off with Russell Simmons, Monica, LeToya Luckett, Solange Knowles, Chingo Bling, Slim Thug, Belly, Short Dawg, Mathew Knowles, Bun-B, Bryan-Michael Cox, Free and Dr. Benjamin Chavis

HOUSTON -- The Hip-Hop Summit Action Network (HSAN), along with title sponsor Chrysler Financial and presenting sponsor Anheuser-Busch, Inc welcomed a capacity crowd of more than 2,700 people to kick off the third annual Hip-Hop Summit on Financial Empowerment National Tour at Houston's Texas Southern University. The "Get Your Money Right" tour features the powerful combination of hip-hop stars and Chrysler Financial financing experts to teach young people about personal finance.

Continue reading "Knowles Family Receives Award for Economic Empowerment at the Houston Hip-Hop Financial Summit"

DaimlerChrysler Launches Lease Service for Small Business Owners

- CompleteLease addresses the needs of entrepreneurs who constantly strive to add value to their businesses and to improve customer service

- 'You handle your business, we'll handle the rest'

INDIANAPOLIS-- DaimlerChrysler Financial Services Americas today announced its entry into the trucking industry's full service leasing market. Its comprehensive Sterling Trucks CompleteLease and Chrysler Financial CompleteLease initiatives are aimed at small business owners in the vocational segment.

CompleteLease was announced to the news media here covering the National Truck Equipment Association's (NTEA) "Work Truck Show" at the RCA Dome.

Continue reading "DaimlerChrysler Launches Lease Service for Small Business Owners"

March 7, 2007

Avis Offers One-Way Deals from Florida Starting at $12.95

PARSIPPANY, N.J. -- Avis Rent A Car System, LLC today announced low one-way rates for Florida customers traveling to select destinations in the United States. This special limited-time offer gives customers the ability to rent a car in one place, return it in another, all with unlimited mileage and no drop fees.

The daily rate for a car rented from select Florida airport locations starts as low as $12.95 a day for a sub- compact, $13.95 a day for a compact, $14.95 a day for a intermediate, $16.95 a day for a standard, and $18.95 a day for a full-size. Minivans are also available for just $19.95 a day. Promotional rates are valid while supplies last on rentals beginning on April 9, 2007 for travel through June 15, 2007.

Continue reading "Avis Offers One-Way Deals from Florida Starting at $12.95"

March 5, 2007

GM Extends its Warranty on Performance Parts

* 24-Month/50,000 Mile Warranty on Performance Parts Crate Engines

* 12-Month/12,000 Mile Warranty on Performance Parts Transmissions, Components and Short Block Assemblies

* New Coverage Demonstrates GMPP Durability and Quality

DETROIT -GM Performance Parts (GMPP) announced that it will extend the warranty offered on its Performance Parts crate engines* to 24-months/50,000 miles (whichever occurs first) and it will add a 12-month/12,000 mile warranty to its Performance Parts components, effective March 1.

"Now, whether you're buying a brand new GM vehicle, a GM Certified Used Vehicle, or a GM Performance Parts crate engine for your project vehicle, GM is letting everyone know that our products offer outstanding quality, durability and value," Executive Director of GM Accessories, Nancy Philippart said. "This new GM Performance Parts warranty demonstrates our confidence in our performance products and builds on the steps we've taken to deliver both product excellence and industry-leading value."

Continue reading "GM Extends its Warranty on Performance Parts"

March 3, 2007

Auto Industry Pro: Ten Year Loans Will Soon Be Commonplace

Todd Newman is a retail automotive consultant and author of Down the Road: The Book of Professional Car Selling and Career Strategies. In this brief he discusses the changes in new vehicle finance that have taken place in the last few years, and makes some predictions about the future:

When does the bottom drop out? Infinite term loans?

In my book I wrote about the ever-growing tidal wave of debt that is haunting our customers that come in the door looking to trade and buy again. Consumer debt according to the Bureau of Labor and Statistics show that Americans share well over two-trillion dollars worth of consumer household debt.

That’s TRILLION, not BILLION. In other words, it is nothing that will be paid off anytime soon.

While working with salespeople and managers at various stores, I have had similar conversations time and time again about the boatloads of debt their customers have. Veterans of the game like to talk about how banks at one time only financed customers for up to thirty-six months on vehicles. When I was selling cars, sixty-month payments were considered for people that had questionable credit and needed lower payments. I remember giggling about customers that needed seventy-two month or eighty-four month payments back then and wrote those customers off for “get me done” status.

These days, seventy-two and eighty-four month payments have become commonplace. Customers have grown accustomed to thinking that during their lives, they will always have car payments. The banks have succeeded in turning the opinion of living debt free into a thought of impossibility.

Continue reading "Auto Industry Pro: Ten Year Loans Will Soon Be Commonplace"

March 2, 2007

Mitsubishi Announces Pricing for All-New 2008 Lancer

CYPRESS, Calif. -- Mitsubishi Motors North America, Inc. (MMNA) has announced pricing for its all-new 2008 Lancer compact sedan. The rally-inspired Mitsubishi Lancer delivers driven-to-thrill dynamics, "class-up" value, advanced safety and cutting-edge user-technology in an aggressively styled package.

The 2008 Lancer will start at a manufacturer's suggested retail price (MSRP) of $13,990 for the value-minded DE model. The well-equipped Lancer ES will start at $15,990 and the sporty GTS, with available class-leading technology, starts at $17,490.

All Lancer models are front-wheel drive and powered exclusively by a new all-aluminum MIVEC 4-cylinder engine teamed to a five-speed manual transmission, achieving 152-hp (Federal emissions). A Partial Zero Emissions Vehicle (P-ZEV) engine achieves 143-hp.

Continue reading "Mitsubishi Announces Pricing for All-New 2008 Lancer"

Chrysler Eyes Trucks To Put Spring In Its Sales Step

CHRYSLER GROUP IS HOPING A thaw in March will help turn the company around, after the DaimlerChrysler division posted an 8% drop in February sales versus February 2006. Larger slow-sellers slid and newer, smaller vehicles with better mileage gained.

The company is still reeling from the recent announcement by its parent that all options are on the table with regard to its future with the European maker of Mercedes-Benz vehicles.

Now, it will push trucks with a "National Truck Month" marketing program. The effort is aimed at moving Chrysler's heavily incentive-ized Dodge Ram pickup, which saw a 17% increase in sales for the month, to 24,379 units. It offers a free upgrade to a Hemi engine for Ram buyers and deals on Dakota and Durango.

Large vehicles like Durango are seeing sales plummet as buyers flock to more efficient alternatives. That SUV saw a 43% drop in sales last month, with Jeep's Grand Cherokee off 22%.

Ford Announces Agreement to Sell Automobile Protection Corporation

DEARBORN, Mich. -- Ford Motor Company announced today that it has entered into a definitive agreement to sell Automobile Protection Corporation (APCO) to Trident IV, L.P., a private equity fund managed by Stone Point Capital LLC. This transaction is the result of the review of strategic options for the business announced by Ford on October 11, 2006.

The sale is expected to close during the second quarter and is subject to customary closing conditions, including applicable regulatory approvals. Terms and conditions specific to the agreement are not being disclosed at this time.

APCO, a wholly-owned subsidiary of Ford Motor Company, was purchased by Ford Motor Company in July 1999. APCO offers vehicle service contracts and related after-market products to dealers of all makes and models.

Continue reading "Ford Announces Agreement to Sell Automobile Protection Corporation"

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March 30, 2007

Chrysler Group Announces Pricing on 2008 Chrysler Sebring Convertible

March 30, 2007

Report: No bonuses for top GM executives

Gasoline prices set to hit new record highs

March 29, 2007

Audi Announces 2008 R8 U.S. Pricing

Zipcar, Mass. Enhance Partnership to Reduce Car Ownership, Increase Commuting Options

U.S. Automakers Endorse Japan Currency Manipulation Act

US Automakers Say Report Confirms Urgent Need to Strengthen Yen, Reduce Risk of Global Recession

March 26, 2007

Driving Cost Per Mile Calculated at 52.2 Cents for 2007

U.S. gas prices rise to $2.61 a gallon

March 20, 2007

Wolfsburg edition Passat now at VW dealers

March 19, 2007

Nissan North America Announces Increase in Destination and Handling Charges

Dollar, Thrifty Car Rental Join Northwest Biz Perks Program

March 18, 2007

Mazda paying $25 for you to test drive their cars

Porsche ushers in a $589/month lease for 2007 Cayman

California's Galloping Gas Prices Leave Other States in the Dust

Tax Guidance for Hybrid/Alternative-Fuel Car Owners

March 16, 2007

Used Car Sales Significantly Impact New Vehicle Pricing and Brand Strength

Hyundai Expands Azera Lineup With New GLS Model Featuring 28-MPG 3.3L V6 Engine

March 15, 2007

Gas Prices Show Wide Discrepancy from Coast to Coast

GM launching March incentive program

March 14, 2007

Triple White VW Convertible Available in L-T-D Edition

March 13, 2007

VW Rabbit receives 2007 Residual Value nod

March 11, 2007

The 2008 Porsche Cayenne is here. Get a price quote.

Toyota Dealers Offer Discount On Newly Redesigned Tundra

Nissan Announces Pricing on 2007 Sentra SE-R

March 9, 2007

Budget Offers Bargain One-Way Rates From Florida

Hyundai Prices Upscale Veracruz Crossover $11,000 Below Lexus RX350

March 8, 2007

Certified Sales Continue to Rise

BMW Celebrates 11 Years of With Susan G. Komen for the Cure

Knowles Family Receives Award for Economic Empowerment at the Houston Hip-Hop Financial Summit

DaimlerChrysler Launches Lease Service for Small Business Owners

March 7, 2007

Avis Offers One-Way Deals from Florida Starting at $12.95

March 5, 2007

GM Extends its Warranty on Performance Parts

March 3, 2007

Auto Industry Pro: Ten Year Loans Will Soon Be Commonplace

March 2, 2007

Mitsubishi Announces Pricing for All-New 2008 Lancer

Chrysler Eyes Trucks To Put Spring In Its Sales Step

Ford Announces Agreement to Sell Automobile Protection Corporation

Finance: March 2007: Monthly Archives

Archives