The credit crunch has affected the sales of high performance vehicles to the extent that Luxury car maker Bentley is reducing production.
The plant in Crewe plans to reduce shifts and hours for models that have sold slower, a move that will cost at least 50 agency jobs. The car maker, established by Walter Bentley in 1919, planned to reduce the production by 15 per cent through brief to unions yesterday.
Bentley's car range starts from around £115,000 for a new model to up to £230,000 for the most expensive. However, few people are able to gain this amount of car credit in the current climate, so production has been scaled back.
This cutback is the newest in the long line as BMW, Land Rover and Mercedes have all done the same with their least selling models. Models affected by the crunch also include the Porsche 911 along with 12-cylinger models by Audi, Mercedes and BMW, down 13 percent in the year.
This drop in sales has been down to rising carbon taxes, raised petrol prices and general reluctance due to tough economic conditions.
This goes to show that people of all financial status are not safe from the turbulent economic crisis, whether they require large amounts of car credit or not.
Showing posts with label News. Show all posts
Showing posts with label News. Show all posts
Friday, September 5, 2008
Thursday, September 4, 2008
Oil prices close at 5-month low on US gas report
Oil prices closed at their lowest level in five months Thursday as a lower-than-expected drop in U.S. gasoline supplies gave traders more reason to believe that a cooling economy is forcing Americans to drive less.
Light, sweet crude for October delivery fell $1.46 to settle at $107.89 a barrel on the New York Mercantile Exchange. It was the lowest settlement price for a front-month contract since April 4.
Crude prices have fallen for five straight sessions, extending an almost two-month slide as traders shift their attention away from supply-threatening storms and back toward a stronger dollar and evidence of falling demand.
On Wednesday, oil prices settled 36 cents lower at $109.35 a barrel, a day after a dramatic, nearly $6 plunge in response to less damage from Hurricane Gustav than the oil industry feared. That brought crude prices in sight of $100 a barrel, a level not seen since April 1.
A smaller-than-expected drawdown of U.S. gasoline stocks was the primary driver of Thursday's declines.
In its weekly inventory report, the Energy Department's EIA said U.S. gasoline stocks fell by 1 million barrels to 194.4 million barrels for the week ending Aug. 29, less than the 1.8 million-barrel drop analysts surveyed by energy research firm had Platts expected.
Jim Ritterbusch, president of energy consultancy Ritterbusch and Associates in Galena, Ill., said the inventory numbers may have been skewed by market irregularities caused by Gustav, but he said the market appeared to be taking the figures as more evidence of falling demand.
"It's safe to say gasoline demand is still very weak. So far we haven't seen enough of a drop in pump prices to really alter that trend," Ritterbusch said.
At the pump, a gallon of regular slid less than a penny overnight to a new national average of $3.678, according to auto club AAA, the Oil Price Information Service and Wright Express. Prices remain well above the year-ago average of about $2.792 a gallon but have fallen more than 10 percent from the July 17 record average of $4.114 a gallon.
A stronger dollar also weighed on oil prices Thursday. A rising greenback spurs investors to shift funds out of commodities like oil and precious metals, which are traditionally bought as hedges against inflation.
Meanwhile, energy output in the Gulf of Mexico began to slowly come back online after the passage of Gustav. Some oil companies in the western Gulf whose equipment wasn't in the path of the storm began ramping up operations Wednesday and Thursday.
However, 95.2 percent of oil production in the Gulf and about 87.5 percent of natural gas output remained shut down as of Thursday. The Gulf area is home to a quarter of U.S. oil production and 40 percent of refining capacity.
Crude has dropped about $38, or 26 percent, since surging to a record $147.27 a barrel on July 11, as a U.S. economic slowdown spreads overseas and curbs demand for petroleum products.
"Consuming countries like the U.S. and Japan are facing economic problems," said Tetsu Emori, commodity markets fund manager at ASTMAZ Futures Co. in Tokyo. "I think we're heading toward $100 a barrel and if we break that, to between $88 and $95."
Still, analysts caution prices could spike again on an unforeseen geopolitical event or if OPEC countries scale back output. The Organization of the Petroleum Exporting Countries is scheduled to meet next Tuesday in Vienna and has indicated it may take action to defend the $100 a barrel level.
The EIA also said U.S. crude stocks tumbled unexpectedly last week. Crude supplies dropped by 1.9 million barrels to 303.9 million barrels; analysts had expected supplies to increase by 500,000 barrels.
Meanwhile, inventories of distillate fuel, which include diesel and heating oil, fell by 400,000 barrels to 131.7 million barrels. Analysts expected stocks to rise by 1.1 million barrels.
In other Nymex trading, heating oil futures fell 5.51 cents to settle at $3.0237 a gallon, while gasoline futures fell 2.64 cents to settle at $2.7404 a gallon. Natural gas futures rose 5.8 cents to settle at $7.322 per 1,000 cubic feet.
In London, October Brent crude fell $1.76 to settle at $106.30 a barrel on the ICE Futures exchange.
Oil: How low can it go?
Gustav has come and gone. And fortunately, New Orleans has been spared the type of damage after Hurricanes Katrina and Rita three years ago.
That's also good news for those living outside of the Gulf region. Fears that crude prices would spike dramatically higher due to massive disruptions of oil production proved for naught. Oil prices fell Tuesday, hitting their lowest point in nearly 5 months.
Talkback: Will oil go below $100 or back towards $150?
"The fact that oil has come down is a sign that perhaps the worst is over. Predictions that oil would go to $200 a barrel now seem more like a fleeting possibility," said Kenneth Kim, economist with Stone & McCarthy Research Associates in Princeton, N.J..
Still, even though crude prices have slipped more than 25% since hitting a record high in mid-July and the average price of a gallon of gasoline has fallen more than 10%, it's not yet a huge cause of celebration.
After all, at about $108 a barrel, the price of oil is around 50% higher than it was a year ago. Gasoline is higher by a third at $3.68 a gallon.
"It's easy to lose sight of the fact that six months ago we would have considered these prices exorbitantly high. We've got a ways to go before consumers feel much relief," said David Resler, chief economist Nomura Securities International Inc.
And don't expect Detroit to be too excited either. Auto makers GM (GM, Fortune 500), Ford (F, Fortune 500) and Chrysler are expected to report another dismal round of monthly sales later Wednesday as consumers continue to shun gas-guzzling SUVs and trucks.
How much further does the price of oil need to fall before consumers can really feel more confident?
Oscar Gonzalez, economist with John Hancock Financial Services in Boston, said that he thinks the record high prices of oil and gas from earlier this summer effectively eliminated the benefit from this year's tax rebates.
So he thinks prices probably need to fall further to reach a level that would actually lead to higher demand. His best guess is a price somewhere between $80 and $90 a barrel.
"If you see prices at the $80 level, you could see more rapid global economic growth than currently expected," Gonzalez said.
Kim thinks that oil hitting $80 in the next few months is certainly possible. However, he conceded that predicting oil prices is almost like calling a coin toss and added that with another few months to go in hurricane season, there could be more wild swings in oil prices.
Kim also pointed out that the recent slide in oil prices has a lot to do with weakening economies globally.
The good news is that if demand continues to fall in Europe and Asia, inflation pressures in the United States may subside as a result. But the bad news is that the pullback is further evidence that the U.S. economy is probably in recession and that the rest of the world may soon be following suit.
In addition, Kim said that though oil prices have been falling lately, this may be trumped by more bad news on the labor front. The government has already reported a loss of 463,000 jobs through July. On Friday, economists are predicting another loss of 75,000 jobs in August.
"Even if oil continues to come down, the thing you have to keep in mind is if we get continued job losses, any benefit from lower oil prices might be erased by people losing their jobs. So we're not out of the woods yet," Kim said.
Finally, Resler points out that some consumers may not be convinced that oil prices are going to keep heading lower. So even if they continue to fall, Resler thinks that consumers may be wary for the next few months.
"There is going to be this lingering suspicion that oil prices will rocket back higher," he said. "There's going to be a lot of anxiety and consumers are going to remain cautious and constrained by the fact that they are still paying much higher prices for gas than they did at the beginning of the year."
"Prices have to move a good bit lower for the shock effect to be completely gone," he concluded.
That's also good news for those living outside of the Gulf region. Fears that crude prices would spike dramatically higher due to massive disruptions of oil production proved for naught. Oil prices fell Tuesday, hitting their lowest point in nearly 5 months.
Talkback: Will oil go below $100 or back towards $150?
"The fact that oil has come down is a sign that perhaps the worst is over. Predictions that oil would go to $200 a barrel now seem more like a fleeting possibility," said Kenneth Kim, economist with Stone & McCarthy Research Associates in Princeton, N.J..
Still, even though crude prices have slipped more than 25% since hitting a record high in mid-July and the average price of a gallon of gasoline has fallen more than 10%, it's not yet a huge cause of celebration.
After all, at about $108 a barrel, the price of oil is around 50% higher than it was a year ago. Gasoline is higher by a third at $3.68 a gallon.
"It's easy to lose sight of the fact that six months ago we would have considered these prices exorbitantly high. We've got a ways to go before consumers feel much relief," said David Resler, chief economist Nomura Securities International Inc.
And don't expect Detroit to be too excited either. Auto makers GM (GM, Fortune 500), Ford (F, Fortune 500) and Chrysler are expected to report another dismal round of monthly sales later Wednesday as consumers continue to shun gas-guzzling SUVs and trucks.
How much further does the price of oil need to fall before consumers can really feel more confident?
Oscar Gonzalez, economist with John Hancock Financial Services in Boston, said that he thinks the record high prices of oil and gas from earlier this summer effectively eliminated the benefit from this year's tax rebates.
So he thinks prices probably need to fall further to reach a level that would actually lead to higher demand. His best guess is a price somewhere between $80 and $90 a barrel.
"If you see prices at the $80 level, you could see more rapid global economic growth than currently expected," Gonzalez said.
Kim thinks that oil hitting $80 in the next few months is certainly possible. However, he conceded that predicting oil prices is almost like calling a coin toss and added that with another few months to go in hurricane season, there could be more wild swings in oil prices.
Kim also pointed out that the recent slide in oil prices has a lot to do with weakening economies globally.
The good news is that if demand continues to fall in Europe and Asia, inflation pressures in the United States may subside as a result. But the bad news is that the pullback is further evidence that the U.S. economy is probably in recession and that the rest of the world may soon be following suit.
In addition, Kim said that though oil prices have been falling lately, this may be trumped by more bad news on the labor front. The government has already reported a loss of 463,000 jobs through July. On Friday, economists are predicting another loss of 75,000 jobs in August.
"Even if oil continues to come down, the thing you have to keep in mind is if we get continued job losses, any benefit from lower oil prices might be erased by people losing their jobs. So we're not out of the woods yet," Kim said.
Finally, Resler points out that some consumers may not be convinced that oil prices are going to keep heading lower. So even if they continue to fall, Resler thinks that consumers may be wary for the next few months.
"There is going to be this lingering suspicion that oil prices will rocket back higher," he said. "There's going to be a lot of anxiety and consumers are going to remain cautious and constrained by the fact that they are still paying much higher prices for gas than they did at the beginning of the year."
"Prices have to move a good bit lower for the shock effect to be completely gone," he concluded.
Tuesday, September 2, 2008
Car finance with Mr Money
Once-unloved, Seat is becoming increasingly confident. First it says its all-new Ibiza is beautifully designed and built, then it claims that "perfection does have a price" - which is £8,995 and up.
While I have my doubts that this humble Spaniard (or any other supermini) qualifies as "the perfect car", I do admire the company for its self-belief, and the fact that it's now equal to Fiat, its former parent.
But are the boys from Barcelona paying enough attention to the potent competition from Ford, whose equally new, pretty and exciting incoming Fiesta is available from just £8,695?
Also, Seat seems to be conceding that its latest Ibiza model will only do up to 47.9mpg in varied driving conditions. Rival Honda claims 55.4mpg for its latest £9,000-plus Jazz unveiled this week - see above - but the equivalent Combined economy claim from Ford is an astounding 76.3mpg, making the Fiesta ECOnetic the UK's most economical family car.
Let's not forget that slightly larger hybrid models from Toyota, Honda and Lexus are dirtier, thirstier and more expensive than the 98g/km Fiesta.
And since superminis are primarily about attractive pricing, great fuel economy, low emissions and high tax breaks, the Fiesta is on course to become the small hatchback of 2008. Because don't forget, these once-tiny superminis are becoming physically bigger, more suitable for families, increasingly credible and more desirable than ever before. You will be choosing the right car if you opt for the Fiesta, Ibiza, Jazz newcomers, or the existing Mazda2, VW Polo, Vauxhall Corsa, Mitsubishi Colt, Fiat Punto, BMW MINI or \u02C7Skoda Fabia.
As to whether you'll be paying the right price depends on your ability to sniff out or haggle hard for a fair discount. It's now almost compulsory for retailers to reduce the prices of these and other mass-produced, factory-fresh cars. Alternatively, go for a free finance deal, which is a discount in another guise.
# After acquiring MG for a steal several years ago, the Chinese have so far buried the brand.
Despite all the eastern promises, only three MGs have been registered in Britain so far this year, giving the firm an official market share of precisely 0.00 per cent, according to the Society of Motor Manufacturers and Traders. On this evidence, the MG company, marque, model range and what remains of the echoey Longbridge factory all look doomed.
Forgive me, then, if I fail to get excited by this week's MG announcement that apparently hails the arrival of a mid-engined, rear-wheel drive model called the MGTF LE500.
It's claimed to be a very special limited edition (only 500 will be available in this country), but there is no word as to where it will be built, how much it will cost in the UK and whether more of the same MGTF LE500 models will be available in overseas markets in greater volumes and at lower prices.
# Dave Green, an unhappy reader, writes to complain that he's been quoted £3,500 to convert his Mitsubishi Shogun Sport to run on Liquefied Petroleum Gas (LPG).
He politely suggests that it was misleading for me to state that petrol-powered cars and SUVs can be converted for a couple of thousand pounds, He has a point. I was wrong to quote £2,000 as a guide price for conversion. The figure should, perhaps, have been £1,150, which is the all-in price an organisation called Green Car Services (tel 020 3222 5333) was quoting days ago.
Obviously, the precise cost varies enormously according to the type of vehicle, but as a general rule, larger engines with more cylinders mean more work and expense - Mr Green's 2002 Shogun has a three-litre V6. Since the £3,500 he's been quoted for the LPG conversion is almost as high as the trade value of his car, he needs to shop around for more competitive quotes.
The irony here is that while his larger engine might cost him more to convert, the potential savings are so much greater as well.
While I have my doubts that this humble Spaniard (or any other supermini) qualifies as "the perfect car", I do admire the company for its self-belief, and the fact that it's now equal to Fiat, its former parent.
But are the boys from Barcelona paying enough attention to the potent competition from Ford, whose equally new, pretty and exciting incoming Fiesta is available from just £8,695?
Also, Seat seems to be conceding that its latest Ibiza model will only do up to 47.9mpg in varied driving conditions. Rival Honda claims 55.4mpg for its latest £9,000-plus Jazz unveiled this week - see above - but the equivalent Combined economy claim from Ford is an astounding 76.3mpg, making the Fiesta ECOnetic the UK's most economical family car.
Let's not forget that slightly larger hybrid models from Toyota, Honda and Lexus are dirtier, thirstier and more expensive than the 98g/km Fiesta.
And since superminis are primarily about attractive pricing, great fuel economy, low emissions and high tax breaks, the Fiesta is on course to become the small hatchback of 2008. Because don't forget, these once-tiny superminis are becoming physically bigger, more suitable for families, increasingly credible and more desirable than ever before. You will be choosing the right car if you opt for the Fiesta, Ibiza, Jazz newcomers, or the existing Mazda2, VW Polo, Vauxhall Corsa, Mitsubishi Colt, Fiat Punto, BMW MINI or \u02C7Skoda Fabia.
As to whether you'll be paying the right price depends on your ability to sniff out or haggle hard for a fair discount. It's now almost compulsory for retailers to reduce the prices of these and other mass-produced, factory-fresh cars. Alternatively, go for a free finance deal, which is a discount in another guise.
# After acquiring MG for a steal several years ago, the Chinese have so far buried the brand.
Despite all the eastern promises, only three MGs have been registered in Britain so far this year, giving the firm an official market share of precisely 0.00 per cent, according to the Society of Motor Manufacturers and Traders. On this evidence, the MG company, marque, model range and what remains of the echoey Longbridge factory all look doomed.
Forgive me, then, if I fail to get excited by this week's MG announcement that apparently hails the arrival of a mid-engined, rear-wheel drive model called the MGTF LE500.
It's claimed to be a very special limited edition (only 500 will be available in this country), but there is no word as to where it will be built, how much it will cost in the UK and whether more of the same MGTF LE500 models will be available in overseas markets in greater volumes and at lower prices.
# Dave Green, an unhappy reader, writes to complain that he's been quoted £3,500 to convert his Mitsubishi Shogun Sport to run on Liquefied Petroleum Gas (LPG).
He politely suggests that it was misleading for me to state that petrol-powered cars and SUVs can be converted for a couple of thousand pounds, He has a point. I was wrong to quote £2,000 as a guide price for conversion. The figure should, perhaps, have been £1,150, which is the all-in price an organisation called Green Car Services (tel 020 3222 5333) was quoting days ago.
Obviously, the precise cost varies enormously according to the type of vehicle, but as a general rule, larger engines with more cylinders mean more work and expense - Mr Green's 2002 Shogun has a three-litre V6. Since the £3,500 he's been quoted for the LPG conversion is almost as high as the trade value of his car, he needs to shop around for more competitive quotes.
The irony here is that while his larger engine might cost him more to convert, the potential savings are so much greater as well.
Issue Is Chrome disaster for Firefox?
Google provides about 85% of the proceeds of Mozilla, creator of the browser Firefox. Despite the agreement, under which the company Google pays Mozilla for the right to run in a browser our search service, the day before it was extended until 2011, long-term future of Firefox is under the greatest threat.
John Lilly, CEO of Mozilla, not inclined to dramatize the situation. "This is another browser that enhances competition. Of course, we will have to compete with him ", - said in an interview Gigaom.com Lilly. "It is not surprising that they are doing browser. Google does many things that relate to his business - servers, energy. They suggest that could improve the browser, developing from the very beginning of his ", - said Lilly.
Source drew attention: the market for browsers Internet Explorer still occupies a good position, controlling, by various estimates, 50-70% of the market.
It is also worth noting: it was not clear how the future will develop the bold concept of Mozilla - for example, the draft of Aurora.
John Lilly, CEO of Mozilla, not inclined to dramatize the situation. "This is another browser that enhances competition. Of course, we will have to compete with him ", - said in an interview Gigaom.com Lilly. "It is not surprising that they are doing browser. Google does many things that relate to his business - servers, energy. They suggest that could improve the browser, developing from the very beginning of his ", - said Lilly.
Source drew attention: the market for browsers Internet Explorer still occupies a good position, controlling, by various estimates, 50-70% of the market.
It is also worth noting: it was not clear how the future will develop the bold concept of Mozilla - for example, the draft of Aurora.
There are screen shots of browser Google Chrome
Although officially Chrome remains unavailable, the site blogoscoped.com already posted the first screenshots of the new browser.
It is not difficult to see, line search offers options - of course, without a search service Google does not cost.
Asterisk allows seemed to make a mark.
It is expected that the site will be available on the link http://gears.google.com/chrome/?hl=en (does not work).
This zone with nine most visited sites.
Actual tasks manager browser, which allows us to see what exactly causes the problem to a lack of memory.
Google Incognito - allows arrange safe surfing without a trace in the browser.
Google Incognito - allows arrange safe surfing without a trace in the browser.Asterisk allows seemed to make a mark.
It is expected that the site will be available on the link http://gears.google.com/chrome/?hl=en (does not work).
Google imposes competition Firefox and Opera - launches the browser Chrome
Google is intended to introduce today the beta browser, called Chrome, which should shake the position of existing browsers - Firefox, Opera and Internet Explorer. The best advantages of the new browser tells the comic, which can be found here.
In general, Google philosophy is this: the average Internet user spends in a much more time and engaged in various activities - says instant messages, send e-mail, forging social connections and, of course, works. Older browsers could not propose the most complete interaction of these elements (so believes Google), and therefore the company Brin and Page "decided to begin first".
In doing so, special attention was paid to work processes Chrome. According to the developers, the browser will work more stably, "leakage" of memory would be prevented, and each new tab will work in their own "sandbox" - and because of the script conceived work of all browser will not be disrupted. The new browser will open - like Firefox, which will increase its efficiency through a variety of plug-in and additions.
Will Google whether to propose a new concept, or the company simply re-invent the wheel? Learn about this will turn out very soon - Users Windows - fans of Mac OS and Linux will have to wait.
Monday, September 1, 2008
Maruti I Wished I Owned and Why
Attention all car enthusiasts out there! I have a question for you. If you could own a Maruti, then which one would you own and why? In fact, even if you are not a car enthusiast this question is open to you. You need to be able to know about many different types of automobiles. This is the day that we are going to take a look at what Maruti. Think of this as a fun little game that you can play, and it can be played with any type of car. Today though we focus on Maruti autos. The best part about this game is that you can pick whichever Maruti you want! No one is going to judge you. I’ll start off the game by telling you a little bit about the Maruti that I would choose. Hopefully you enjoy why I picked this. If you do not then take time and pick your own!
Maruti SX4
I went through a list of many Maruti cars and the SX4 was the best one that I found. A lot of Maruti cars have a weird box feeling to them, but not his one. The Maruti SX4 has a cool design that I think translates into American driving very well. In my opinion, these have a definite look of a sports car combined with a luxury car. My color of choice would be white, and I would look like a blur as a weave in and out of cars on the roads! I was pleasantly surprised to see this car, because like I stated earlier, I am not a fan of the box shaped cars. The cool part about this car is it has a look that I would consider getting even if I was not playing this game, so I guess that really is just an added bonus I can cash in on!
What Does it Feature?
The Maruti SX4 really tries to take advantage of its cool European design. They also have started promoting world class “drive by wire” technology. Another cool feature that I have not read much on other cars is that the SX4 has the most ground clearance for its class of cars. You really do not realize how nice this is until you do not have it around. Safety is also something that you do not have to worry about because it comes with the top quality anti lock brakes, dual side airbags, and more. If you like to blast the stereo while you are driving then that is a plus as well. You can get the top audio system in this car. As you can see, it is not only a cool car, but it has the best features to back it up as well
Maruti SX4
I went through a list of many Maruti cars and the SX4 was the best one that I found. A lot of Maruti cars have a weird box feeling to them, but not his one. The Maruti SX4 has a cool design that I think translates into American driving very well. In my opinion, these have a definite look of a sports car combined with a luxury car. My color of choice would be white, and I would look like a blur as a weave in and out of cars on the roads! I was pleasantly surprised to see this car, because like I stated earlier, I am not a fan of the box shaped cars. The cool part about this car is it has a look that I would consider getting even if I was not playing this game, so I guess that really is just an added bonus I can cash in on!
What Does it Feature?
The Maruti SX4 really tries to take advantage of its cool European design. They also have started promoting world class “drive by wire” technology. Another cool feature that I have not read much on other cars is that the SX4 has the most ground clearance for its class of cars. You really do not realize how nice this is until you do not have it around. Safety is also something that you do not have to worry about because it comes with the top quality anti lock brakes, dual side airbags, and more. If you like to blast the stereo while you are driving then that is a plus as well. You can get the top audio system in this car. As you can see, it is not only a cool car, but it has the best features to back it up as well
Sunday, August 31, 2008
Retiring people 'have unsecured loan debts'
People approaching their retirement continue to have to pay off their debts, which may include unsecured Car Loans, new research has revealed.
Key Retirement Solutions reports that over one in three people over the age of 55 have some form of outstanding debts
According to the firm, people within this age group have an average of £11,106 in unsecured debt each.
One in four was found to have outstanding loan payments, while a fifth owe money on their credit cards.
Dean Mirfin, business development director at Key Retirement Solutions, said: "The cost of living for the elderly has surpassed inflation over the past decade therefore it is more important than ever that consumers are aware of the dangers of approaching retirement with such large amounts of debt."
In related news, David Kuo, head of personal finance at fool.co.uk, recently urged people to look for "flexibility" and compare interest rates when considering taking out a loan.
Key Retirement Solutions reports that over one in three people over the age of 55 have some form of outstanding debts
According to the firm, people within this age group have an average of £11,106 in unsecured debt each.
One in four was found to have outstanding loan payments, while a fifth owe money on their credit cards.
Dean Mirfin, business development director at Key Retirement Solutions, said: "The cost of living for the elderly has surpassed inflation over the past decade therefore it is more important than ever that consumers are aware of the dangers of approaching retirement with such large amounts of debt."
In related news, David Kuo, head of personal finance at fool.co.uk, recently urged people to look for "flexibility" and compare interest rates when considering taking out a loan.
Car loan customers warned over green car claims
Environmentally-conscious motorists considering taking out a secured car loan to buy a new car have been warned about green claims made by manufacturers.
A study conducted by 4Car found that tests carried out by manufacturers to assess fuel economy and emissions do not offer accurate results.
Instead, 'real-world' tests undertaken by the website on eight supposedly low emission cars revealed all fell short of their official figures, Car Finance customers may be interested to learn.
Tim Bowdler, editor of 4Car, said the official test regime – which is done in a laboratory – is "too simplistic" and does not account for "real-world operating conditions".
"The batch of cars that we tested all claim to have 'green' credentials, but they are not as environmentally friendly or as economical as we've been led to believe," he commented.
Among the cars for sale tested by the website were the Golf Bluemotion, Skoda Fabia Greenline, MINI Cooper D and the HONDA Civic Hybrid.
Those with car finance and other road users looking for a greener car ought to look to vehicles with the lowest fuel consumption and emissions in the class of vehicle they prefer, Jay Nagley, publisher of Clean Green Cars recently said.
A study conducted by 4Car found that tests carried out by manufacturers to assess fuel economy and emissions do not offer accurate results.
Instead, 'real-world' tests undertaken by the website on eight supposedly low emission cars revealed all fell short of their official figures, Car Finance customers may be interested to learn.
Tim Bowdler, editor of 4Car, said the official test regime – which is done in a laboratory – is "too simplistic" and does not account for "real-world operating conditions".
"The batch of cars that we tested all claim to have 'green' credentials, but they are not as environmentally friendly or as economical as we've been led to believe," he commented.
Among the cars for sale tested by the website were the Golf Bluemotion, Skoda Fabia Greenline, MINI Cooper D and the HONDA Civic Hybrid.
Those with car finance and other road users looking for a greener car ought to look to vehicles with the lowest fuel consumption and emissions in the class of vehicle they prefer, Jay Nagley, publisher of Clean Green Cars recently said.
Savvy shoppers may get car with card
A few weeks ago, I responded to a reader's question about the possibility of putting the purchase of a new car on a credit card.
Based on my personal experience -- and that of several friends who tried to do this -- I replied that most dealerships won't allow the full purchase price of a car to be put on a credit card.
Some will allow part of the purchase price -- sometimes as much as $5,000 -- to be put on a card. But they balk at putting the full price of a car on a credit card because the dealership must pay the credit card company a fee that ranges from 2 percent to 3 percent of the purchase price.
With profit margins thin on many new car sales, dealers aren't eager to give away another $600 to $900 on a sale of a $30,000 vehicle.
After my response was posted, I received this e-mail from Matt Fadiman, vice president at Riverbank in North Andover, Mass.
"I have worked in banking and merchant card services for 15 years, and unfortunately (Jackson's) response was not accurate. He was correct that the dealer would pay an approximate 2 percent fee on the transaction. However, as per both the MasterCard and Visa merchant agreements, a participating merchant must accept that credit card (assuming it is valid and approved) for all purchases. The merchant cannot, by policy or practice, decide which transactions it will allow and which it will not.
"I do agree that in reality many dealerships will attempt to refuse to charge the sale on a credit card, but when pushed they will back down. I have purchased my last 4 cars all on credit cards. To say the least the dealer was not happy, but when presented with both a copy of the merchant agreement, and my declaration to pursue with the credit card company, they quickly reversed their position. My calculation is that between the rewards (cash back) and the zero percent rates on the credit cards, my savings were well in excess of $6,000."
I spoke with representatives from Visa, MasterCard and American Express, and while Mr. Fadiman is correct on some points, the reality most buyers face is not so clear-cut.
A spokesman for Visa e-mailed me this response, which mirrors MasterCard's position:
"U.S. merchants must follow basic card acceptance rules for all Visa transactions. Visa's rules do not allow merchants to impose a maximum transaction amount as a condition for honoring a Visa card. Our rules require merchants to always honor valid Visa cards regardless of purchase amount -- large or small."
But at American Express, the situation is different.
Spokeswoman Sarah Meron says that car dealers can refuse to put the full purchase price of a vehicle on an AMEX card.
"We would love everyone to put everything on his American Express card, but dealers have the leeway to limit transactions," she says.
There's another reality that makes this a very gray area.
Car purchases are negotiated deals involving many factors, including the purchase price of the vehicle, the value of a trade-in and the method the buyer is using to pay for the car.
A dealer can adjust the deal using any or all of those factors. A deal is not a deal until there's a signed contract, and all car sales contracts include a section on how the buyer plans to pay for the vehicle.
So, if a buyer tells a dealer he or she plans to finance the car through the dealer and then shifts gears and decides to pay cash at the last moment, the dealer can and likely will renegotiate the whole deal. After all, the dealer probably was counting on getting a fee from the bank or finance company.
So, it's not beyond the realm of possibility that when someone negotiates a price on a new car and then asks to put the amount on a credit card -- to take advantage of a zero-percent finance rate or reap frequent flier miles -- the dealer will refuse to go through with the deal or renegotiate the price to cover the cost of the credit card fee.
Doing that may be in violation of the dealer's agreement with the credit card company, and if you're savvy enough to threaten trouble with the credit card company, a buyer may be able to push through a deal. Or, maybe the deal is so lucrative already for the dealer that the store is willing to give back the cost of the credit card transaction.
Regardless, my bet is that the dealer's position will almost always prevail.
Based on my personal experience -- and that of several friends who tried to do this -- I replied that most dealerships won't allow the full purchase price of a car to be put on a credit card.
Some will allow part of the purchase price -- sometimes as much as $5,000 -- to be put on a card. But they balk at putting the full price of a car on a credit card because the dealership must pay the credit card company a fee that ranges from 2 percent to 3 percent of the purchase price.
With profit margins thin on many new car sales, dealers aren't eager to give away another $600 to $900 on a sale of a $30,000 vehicle.
After my response was posted, I received this e-mail from Matt Fadiman, vice president at Riverbank in North Andover, Mass.
"I have worked in banking and merchant card services for 15 years, and unfortunately (Jackson's) response was not accurate. He was correct that the dealer would pay an approximate 2 percent fee on the transaction. However, as per both the MasterCard and Visa merchant agreements, a participating merchant must accept that credit card (assuming it is valid and approved) for all purchases. The merchant cannot, by policy or practice, decide which transactions it will allow and which it will not.
"I do agree that in reality many dealerships will attempt to refuse to charge the sale on a credit card, but when pushed they will back down. I have purchased my last 4 cars all on credit cards. To say the least the dealer was not happy, but when presented with both a copy of the merchant agreement, and my declaration to pursue with the credit card company, they quickly reversed their position. My calculation is that between the rewards (cash back) and the zero percent rates on the credit cards, my savings were well in excess of $6,000."
I spoke with representatives from Visa, MasterCard and American Express, and while Mr. Fadiman is correct on some points, the reality most buyers face is not so clear-cut.
A spokesman for Visa e-mailed me this response, which mirrors MasterCard's position:
"U.S. merchants must follow basic card acceptance rules for all Visa transactions. Visa's rules do not allow merchants to impose a maximum transaction amount as a condition for honoring a Visa card. Our rules require merchants to always honor valid Visa cards regardless of purchase amount -- large or small."
But at American Express, the situation is different.
Spokeswoman Sarah Meron says that car dealers can refuse to put the full purchase price of a vehicle on an AMEX card.
"We would love everyone to put everything on his American Express card, but dealers have the leeway to limit transactions," she says.
There's another reality that makes this a very gray area.
Car purchases are negotiated deals involving many factors, including the purchase price of the vehicle, the value of a trade-in and the method the buyer is using to pay for the car.
A dealer can adjust the deal using any or all of those factors. A deal is not a deal until there's a signed contract, and all car sales contracts include a section on how the buyer plans to pay for the vehicle.
So, if a buyer tells a dealer he or she plans to finance the car through the dealer and then shifts gears and decides to pay cash at the last moment, the dealer can and likely will renegotiate the whole deal. After all, the dealer probably was counting on getting a fee from the bank or finance company.
So, it's not beyond the realm of possibility that when someone negotiates a price on a new car and then asks to put the amount on a credit card -- to take advantage of a zero-percent finance rate or reap frequent flier miles -- the dealer will refuse to go through with the deal or renegotiate the price to cover the cost of the credit card fee.
Doing that may be in violation of the dealer's agreement with the credit card company, and if you're savvy enough to threaten trouble with the credit card company, a buyer may be able to push through a deal. Or, maybe the deal is so lucrative already for the dealer that the store is willing to give back the cost of the credit card transaction.
Regardless, my bet is that the dealer's position will almost always prevail.
If you spend tens of thousands of dollars on a car, you want to get something back for your investment when it's over. Inevitably, the value of your car will depreciate, but you'd like it to have as much trade-in value as possible.
This doesn't just go for buying a car. When you lease a car, the amount it will be worth at the end of the lease is critical in determining your monthly lease payment price. It's called residual value, an important factor to keep in mind if you're shopping for a new car.
In a list compiled by Automotive Lease Guide, or ALG, the 10 cars expected to hold value the most over the next five years are an eclectic group (sedans and small sport utility vehicles, among others). What do these cars have in common?
"You see a much better alignment of production with market demands," says James Clark, editorial director of ALG.
What about cars that will hold the least value after five years? "You'll see a lot of brands we traditionally have high-depreciation rates for," says Clark. Some of these vehicles are heavily used as fleet vehicles for rental car companies; some (i.e., Korean brands like Hyundai and its subsidiary, Kia) have perceived quality issues, even though Clark says the Korean brands' "quality has actually gotten a lot better, but their perceived quality is still low."
The 10 best and 10 worst autos for holding value over 5 years
Best value holders
1. Volkswagen R32
2. Jeep Wrangler
3. Mini-Cooper
4. Scion XB
5. Honda CR-V
6. Toyota RAV4
7. Infiniti G35/G37
8. Dodge Viper
9. BMW 1 Series
10. Nissan Rogue
Worst value holders
10. Hyundai Entourage
9. Chevrolet Malibu Classic
8. Kia Optima
7. Suzuki Forenza
6. Hyundai Accent
5. Kia Rio
4. Suzuki Reno
3. Kia Spectra
1. Lincoln Town Car
This doesn't just go for buying a car. When you lease a car, the amount it will be worth at the end of the lease is critical in determining your monthly lease payment price. It's called residual value, an important factor to keep in mind if you're shopping for a new car.
In a list compiled by Automotive Lease Guide, or ALG, the 10 cars expected to hold value the most over the next five years are an eclectic group (sedans and small sport utility vehicles, among others). What do these cars have in common?
"You see a much better alignment of production with market demands," says James Clark, editorial director of ALG.
What about cars that will hold the least value after five years? "You'll see a lot of brands we traditionally have high-depreciation rates for," says Clark. Some of these vehicles are heavily used as fleet vehicles for rental car companies; some (i.e., Korean brands like Hyundai and its subsidiary, Kia) have perceived quality issues, even though Clark says the Korean brands' "quality has actually gotten a lot better, but their perceived quality is still low."
The 10 best and 10 worst autos for holding value over 5 years
Best value holders
1. Volkswagen R32
2. Jeep Wrangler
3. Mini-Cooper
4. Scion XB
5. Honda CR-V
6. Toyota RAV4
7. Infiniti G35/G37
8. Dodge Viper
9. BMW 1 Series
10. Nissan Rogue
Worst value holders
10. Hyundai Entourage
9. Chevrolet Malibu Classic
8. Kia Optima
7. Suzuki Forenza
6. Hyundai Accent
5. Kia Rio
4. Suzuki Reno
3. Kia Spectra
1. Lincoln Town Car
Friday, August 29, 2008
It's not just green car insurance that Brits are choosing
In recent years there has been a rise in the number of companies offering green car insurance and other products to keep up with consumer demand for more environmentally friendly services, and this green mentality is also affecting the cars that people buy.
As they strive to reduce their personal impact on the environment – in this case their carbon footprint – British motorists are increasingly choosing a more environmentally friendly car, according to research from global information services company Experian.
Experian has found that the green credentials of a car affect the decision of which one to buy for 26 per cent of Brits, with more than half of motorists saying that they are concerned about the negative effect their car has on the environment.
Female drivers are more concerned about their environmental impact than their male counterparts, the research found, and are also more likely to let this affect their decision of which car to buy.
The study also revealed that drivers who change their car more regularly – those who keep each one for less than three years –are more likely to consider their carbon footprint when buying a new car compared to others who do not change their car for four years or more.
"Our research shows that the environment is clearly becoming a bigger concern for car owners." said Kirk Fletcher, managing director of Experian's Automotive division. "In our opinion, this is more likely to continue to grow rather than diminish and needs to be factored into the sales process.
"A car is the second biggest purchase a person is likely to make after a buying a house and customers concerned about the environment will have a lot of questions to ask before they make their final decision to buy. Dealers need to have this information to hand to enhance the possibility of a sale."
Meanwhile, research from Legal & General has revealed that Brits are happy to go green but only on their terms. Apparently, 82 per cent of them are annoyed that they are having green values forced on them by government and business initiatives, such as being charged for carrier bags in the supermarket.
However, almost all Brits – 98 per cent – say that they are taking steps to make their lives greener, such as getting green car insurance and recycling household waste, illustrating that they are more than willing to do their bit to fight climate change, but do not appreciate having it enforced upon them.
As they strive to reduce their personal impact on the environment – in this case their carbon footprint – British motorists are increasingly choosing a more environmentally friendly car, according to research from global information services company Experian.
Experian has found that the green credentials of a car affect the decision of which one to buy for 26 per cent of Brits, with more than half of motorists saying that they are concerned about the negative effect their car has on the environment.
Female drivers are more concerned about their environmental impact than their male counterparts, the research found, and are also more likely to let this affect their decision of which car to buy.
The study also revealed that drivers who change their car more regularly – those who keep each one for less than three years –are more likely to consider their carbon footprint when buying a new car compared to others who do not change their car for four years or more.
"Our research shows that the environment is clearly becoming a bigger concern for car owners." said Kirk Fletcher, managing director of Experian's Automotive division. "In our opinion, this is more likely to continue to grow rather than diminish and needs to be factored into the sales process.
"A car is the second biggest purchase a person is likely to make after a buying a house and customers concerned about the environment will have a lot of questions to ask before they make their final decision to buy. Dealers need to have this information to hand to enhance the possibility of a sale."
Meanwhile, research from Legal & General has revealed that Brits are happy to go green but only on their terms. Apparently, 82 per cent of them are annoyed that they are having green values forced on them by government and business initiatives, such as being charged for carrier bags in the supermarket.
However, almost all Brits – 98 per cent – say that they are taking steps to make their lives greener, such as getting green car insurance and recycling household waste, illustrating that they are more than willing to do their bit to fight climate change, but do not appreciate having it enforced upon them.
Spectrum of car finance providers getting broader
A study carried out by a professor from the University of Buckingham has revealed that a broader range of options for car finance exist than ever before.
Professor Cooke's study showed that point of sale finance has slumped between 1997 and 2006, because it suffers from a weak image and is often perceived to be uncompetitive.
A whole host of other car finance options have emerged, such as manufacturers' finance houses and high street bank finance. These companies have won business from car dealers by aggressively promoting their car finance products.
From 1997 to 2006, the used car market in the UK has consistently been about three times the size of the new car market. Private buyers account for about half of total new car sales and virtually all used car sales.
In the same period, franchised dealers' new private car finance penetration fell from 52 per cent to 41 per cent, while used car finance penetration dropped from 53 per cent to 30 per cent. Independent dealers' used car finance penetration dropped from 40 per cent to 20 per cent.
Professor Cooke's study showed that point of sale finance has slumped between 1997 and 2006, because it suffers from a weak image and is often perceived to be uncompetitive.
A whole host of other car finance options have emerged, such as manufacturers' finance houses and high street bank finance. These companies have won business from car dealers by aggressively promoting their car finance products.
From 1997 to 2006, the used car market in the UK has consistently been about three times the size of the new car market. Private buyers account for about half of total new car sales and virtually all used car sales.
In the same period, franchised dealers' new private car finance penetration fell from 52 per cent to 41 per cent, while used car finance penetration dropped from 53 per cent to 30 per cent. Independent dealers' used car finance penetration dropped from 40 per cent to 20 per cent.
Tuesday, August 12, 2008
The 10 Cheapest Cars Per Mile Per Gallon
As car buyers are drawn to more fuel-efficient cars, a common challenge people face is how to get the most gas mileage for the money. Hybrids, for example, typically deliver the best fuel economy in their respective classes, but they sell for a premium. Begs the question: Is it better for your bank account to buy a small, less-expensive nonhybrid that still provides good, if not great, fuel economy?
If your goal in getting better fuel economy is to make every dollar count, the following list can guide you to some of today's best buys. Of the more than 260 vehicles that we've recently tested, these are the 10 cars that provide the best combination of low purchase price and high fuel economy.
Crunching the numbers
To get this list, we divided the as-tested price (including options and destination charge) for each vehicle we've recently tested by the car's overall mpg (including city and highway) in our fuel-economy tests. This tells you the price you'll pay for each mpg.
But gas mileage isn't everything. So, to ensure we aren't guiding you to cars that are mediocre in other areas, we selected only ones that meet our stringent criteria in performance, reliability, and safety for being recommended. And to make sure, the cars aren't going to blindside you with high ownership costs after you've signed on the dotted line, we selected only models that earn an excellent owner-cost rating.
Top 10 in price per mpg
| Model | As tested Price | Overall mpg | Price per mpg |
|---|---|---|---|
| Honda Fit Sport (manual) | $15,765 | 34 | $464 |
| Honda Fit (base) | 15,245 | 32 | 476 |
| Toyota Prius (base) | 23,780 | 44 | 540 |
| Mazda3 i (manual) | 17,290 | 30 | 576 |
| Toyota Prius Touring | 24,803 | 42 | 591 |
| Nissan Versa 1.8 SL | 16,675 | 28 | 596 |
| Honda Civic Hybrid | 22,400 | 37 | 605 |
| Honda Civic EX (manual) | 18,810 | 31 | 607 |
| Hyundai Elantra GLS | 17,555 | 27 | 650 |
| Scion tC (base) | 17,115 | 26 | 658 |
Drawing on a price that's under $16,000 and good fuel economy in the low-to-mid 30's, both versions of the Honda Fit we've tested topped the list. That shows that you can pay more for a car with higher gas-mileage numbers (such as the Toyota Prius), but you won't necessarily get better fuel economy for the buck.
If you want a roomier car than the subcompact Fit, several compact cars made the list, including the Mazda3, Honda Civic, and Hyundai Elantra. And, despite their higher cost, three hybrids-two versions of the Toyota Prius and the Honda Civic Hybrid-made the list, based on stellar fuel economy results.
The lowest price per mpg in our analysis came from the Toyota Yaris and Hyundai Accent with manual transmissions ($370 and $425, respectively). But because they scored too low in our tests to be recommended, they didn't make the cut. Which cars are highest? With the Dodge Viper SRT10 and Mercedes-Benz SL550, you'll pay more than $6,000 for every mile-per-gallon. And you'll have to feed these engines requiring Premium fuel, as well.
Sunday, August 10, 2008
4x4s now 'worthless' in part exchanges
Dealers are refusing to take 'worthless' gas-guzzling 4x4s in part exchange amid plummeting values for second-hand cars.
They say some are worth more as scrap as demand for steel soars.
Used car values generally are set to drop by 12% between now and Christmas, experts warned yesterday.
A three-year-old family car worth £5,000 will drop by £600. That means it is losing around £5 every day - leaving many owners spending more for it in repayments than it is actually worth.
Experts at price guide Parkers say the slump is the result of the Government's controversial proposals to hit millions of drivers with backdated car tax increases of up to £245, which they say have 'skewed' the market, and the soaring price of fuel.
The worst losers are the biggest 4x4s. Parkers' car-price expert Simon Harris said: 'These are proving impossible to part-exchange. There's no demand for petrol off-roaders and resale values are plummeting.
'Increasing fuel prices and the prospect of owners being liable for double the amount of road tax on certain high fuel consumption models means used car buyers are more wary before deciding on their next purchase.
'There is no appetite at present for thirsty 4x4s that would typically cost £100 or more to fill up with petrol as fuel prices continue to soar, and become liable for more than £450 a year in vehicle excise duty by 2010 for models currently two years old. It effectively means these vehicles are worthless. Dealers don't want to touch them.'
Andrew Harrison-Smith, owner of Peterborough-based independent Land Rover specialist Nene Overland, said: 'Values for big petrol-engined 4x4s are about £3,000 or perhaps even £4,000 lower than for the diesels.'
Sue Robinson, director of the National Franchised Dealer Association, confirmed some dealers are refusing to take in certain cars.
She said: 'The market for 4x4s has become tougher following the Government's announcement of revised vehicle excise duty rates for higher-polluting cars.' Adrian Rushmore, managing editor at EurotaxGlass's car price guide, predicted a 12% drop in used prices between now and Christmas.
Car sales fall but drivers will bear fuel hike
The credit crunch and rising fuel and tax costs have hit new car sales but motorists say there's miles to go before they would ditch their vehicles.
Figures have shown purchases of new cars plummeting in July, with the Society of Motor Manufacturers and Traders (SMMT) reporting 153,420 new cars registered in July 2008 - a 13% fall on the July 2007 figure.
But research from insurer esure claims that despite petrol prices increasing by more than 20% in a year, motorists would endure more hikes.
On average, motorists have said they are willing to pay up to £1.75 per litre for petrol - 60p more than the current Petrolprices.com average - before giving up their cars in favour of alternative transport.
Rising fuel prices and soaring household bills have conspired to make a new car an unaffordable luxury for more people, and sales have now seen steady decline for three successive months, according to SMMT figures.
'The July decline in total sales reflects the continued deterioration in consumer confidence being experienced across the economy,' says SMMT chief executive Paul Everitt.
'Vehicle manufacturers are doing their bit to support consumers, though, and new cars are now 22% more affordable than they were 10 years ago and new technology is delivering more fuel efficient motoring.'
Growth in demand for alternatively fuelled vehicles has offered some hope for the suffering vehicle manufacturing industry.
Last month saw a 19.4% increase in sales, sparked by rising petrol costs as well as hightened environmental concern.
'The industry needs the support of the Government in order to encourage the uptake of lower-emitting vehicles and ultimately lower the cost of motoring for consumers,' Everitt says.
Greener vehicles are likely to benefit from increasing interest over future years, with Britons keen to save money but reluctant to give up their cars.
Saturday, August 9, 2008
6 Tips For Saving Fuel and Getting Better Gas Mileage
Barak Obama was all over the news recently, mocked by his opposition for saying we can conserve fuel by simply inflating our tires. Made for a great sound bite for the 24-hour news stations, but the thing is, he's right. According to experts, under-inflated tires can reduce your gas mileage anywhere from 3 to 15 percent.
So what else can you do to help lessen your gas consumption? I spoke with the experts at the NASCAR Technical Institute and Traffic.com, two groups that know a little something about fuel management. Here are their top tips for squeezing out more miles from every gallon.
1 - Check Your Tires
Tire pressure changes with changing temperatures, so it's important to check the pressure after all weather changes. An under-inflated tire not only reduces the life of the tire, but can cause your gas mileage to plummet by as much as 15 percent. (And they recommend rotating tires roughly every 5,000-10,000 miles to extend the tread life. With or without a pit crew.)
2 - Change the Air Filter
Dust and other impurities getting into the combustion chambers of your engine's cylinders results in wasted gas and weaker engine performance. Replacing a clogged filter can improve mileage by as much as 10 percent, which translates into more money in your pocket every gallon. Change the air filter every six months, more often if you live in a dusty location.
3 - Lighten Your Load
For every 100 pounds of extra weight, your mileage goes down by two percent. Take all that unnecessary junk out of the trunk, and while you're back there, check the air pressure on the spare.
4 - Check Your Spark Plugs
Spark plugs fire as many as 3 million times every 1,000 miles. That's a lot of heat and wear and tear. Dirty spark plugs cause misfiring, which wastes fuel by as much as 30 percent.
5 - Make Sure Your Cap is Tight
According to NASCAR's Tech Institute, nearly 20 percent of vehicles have gas caps that are damaged, loose or missing altogether, allowing that high-priced octane to vaporize, wasting some 147 million gallons of gas every year.
6 - Don't Be Idle
Obviously, sitting in bumper-to-bumper, stop-and-go traffic is a tremendous waste of fuel. Traffic.com recommends using the real-time traffic function available on many newer GPS systems to avoid backups and find clear routes, and updating the system's maps to find the quickest way to your destination.
Thursday, August 7, 2008
BP Invests $90 Million in Verenium’s Cellulosic Ethanol Technology
It seems that BP is trying to make up for lost time — the worldwide oil giant has invested $90 million in cellulosic ethanol company, Verenium. This is BP’s first foray into the world of cellulosic ethanol (ethanol derived from non-food crops), and man is it a gigantic one.
The money will be distributed to Verenium over the next 18 months, with a likelihood of further investment and cooperation beyond that point. Under the agreement, BP will have broad access to Verenium’s research, production facilities, and technology.
Although relatively late to the fray, BP thinks this investment gives them the “most advanced technology for transforming [cellulosic material] to biofuels,” as Sue Ellerbusch, president of BP Biofuels North America said.
Verenium claims to have the edge in cellulosic ethanol production through genetic engineering of the microbes required to turn the cellulosic material (switchgrass, wood chips, sugarcane bagasse, miscanthus) into ethanol.
They also claim to have developed specialized enzymes that speed the ethanol-making process along. As Verenium points out, enzymes are important to the cellulosic ethanol process in the same way that spark plugs are important to igniting fuel in your engine.
We’ll see where this goes, but that’s a lot of cash and a serious confidence boster to Vernium’s shareholders.
Wednesday, August 6, 2008
Save on car insurance
When it's time to renew your car insurance, don't automatically sign up with your old insurer: You may miss a chance to save.
You can shop multiple insurers at carrsure.com, but major players like Allstate, Progressive and State Farm aren't on the site. You'll need to go to their sites or call an agent. As you look around, ask yourself these questions.
Am I saving as much I can?
- See what others pay. State insurance department websites list sample rates. Find your state's at naic.org.
- Up your deductible. The average driver pays $939 a year for car insurance but makes a claim only once every eight years. Raise your comprehensive deductible from $250 to $500 and collision from $500 to $1,000, and shave your premium by 10 percent or more. Over time, that will more than cover the higher out-of-pocket outlay if you ever make a claim.
- Drive less. If higher gas prices have you covering fewer miles -- you're carpooling, say -- you may get a rate break.
- Fix credit errors. Credit troubles can raise your premium. Order a free report at annualcreditreport.com and correct any mistakes that may be costing you.
Do I have the right amount?
- Don't confuse minimum with optimum. Every state sets a coverage floor, but that may be too low. Pros suggest $100,000 per person, $300,000 per accident and $50,000 for property damage. Carry the same amount in uninsured motorist coverage, says JD Howard of the Insurance Consumer Advocate Network. It will pay your bills if you're in a smashup with an uninsured or underinsured driver.
- Give up on your jalopy. Once your car is old, you can probably drop collision and comprehensive coverage. You'll pay as much in premiums over a few years as you'd pay to replace or repair the car. To gauge its current market value, look up used-car prices for your model at autotrader.com or kbb.com. If it's less than $2,000, kick the extra coverage to the curb (average savings: $431 a year).
Are the extras simply gimmicks?
- Forget "accident forgiveness" coverage. The promise: Pay a higher premium (7 percent to 15 percent with Allstate) and your rates won't go up if you wipe out. But paying more now to save money later doesn't add up, says Bob Hunter of the Consumer Federation of America. And it may be unnecessary: Some insurers forgive the first accident at no extra cost. Even Allstate does so if you've been a customer for five years.
- Reject "new-car replacement." The fear: Your new car depreciates like mad the second you drive it off the lot, so after an accident the insurance payout isn't big enough to buy a new model. The takeaway: Pass on this one too. It'll add slightly to your premium and won't kick in unless the car is totaled.
Can I afford to let my kids drive?
- Sit down. Adding a teen to your policy can double or even triple your premium, all the more reason to shop hard before your children get licenses.
- Read her report card. Most insurers offer discounts -- sometimes as much as 25 percent -- for students with a B average or better.
- Send him away. If your kid goes to a school that's more than 100 miles from home (without wheels, of course), you'll qualify for a lower rate.
- Get credit for being strict. Even if you would never give your teen the keys to the Jaguar, your insurance company may price your policy as if he drove the most expensive car in your garage, says Larry Tencer, a California insurance agent. Ask about this costly provision -- it could be reason enough to switch insurers.
Subscribe to:
Posts (Atom)
Posts
