Nissan and Toyota fire up the incentive engine yet again

Japan is ramping up production in the wake of the 9.0 March 11 earthquake, and major factory-to-dealer rewards are on the way from Toyota and Nissan to move the expected inventory wave. Automotive News states that the Japanese automakers will offer cash, interest rate holidays and significant lease incentives in the United States market. Sagging May sales numbers have made the incentive push a priority.

Supply is back meaning vehicles must move

Before May is over, Toyota and Nissan both expect to be producing normally again by the end of May, meaning vehicles need to sell. Incentive spending is the mechanism through which an overstock will theoretically be avoided. There will have to be even more automobiles sold since Nissan believes its Japanese factories will be up and running normally again by June.

The plan is something Nissan Division Manager Al Castignetti believes will work. He thinks that there will be tent sales by Memorial Day on Altima and Maxima automobiles which will have good deals.

Sales fallen in May

Compared with May sales in 2010, Toyota and Honda sales have fallen on hard times this May. Toyota sales have dropped by 56 percent (Lexus by 45 percent). Honda sales are down 41 percent overall, with the Acura division showing a 46 percent drop-off. Both Nissan and Infiniti aren’t doing too badly with only a 12 percent drop. A 37 percent increase in Hyundai Motors sales was shown in May as one of the only Asian automakers to do so.

The high gas costs, Japan earthquake shortages and low rebates are all attributed to the low Japan May sales according to J.D. Power and Associates forecaster Jeff Schuster.

Change from Feb. to Mar. in rewards

According to Edmunds.com, the decline in dealer incentives has been occurring for a few months, even in the U.S. From February 2011 to March 2011, there was a decrease in the average manufacturer incentive $220, or 8.6 percent, from $2,346 per new vehicle sold.

That was a huge drop in rewards. Ivan Drury as an Edmunds analysis spoke about this.

“These latest numbers show by far the biggest February-to-March incentives decline since Edmunds.com started tracking in 2002,” Drury said. “The decline is mostly likely a result of a 26 percent month-over-month sales jump in subcompact and compact cars which typically have a much lower level of incentives compared to large trucks and SUVs.”

The automakers may have changed from incentives

Whether or not GM, Ford Motors and Chrysler, also known as Detroit’s Big Three, stand idle or produce as many automobiles as possible, the fixed production and labor costs are the same. This was suggested by a team of researchers in a report called “The Effect of Customer Rebates and Retailer incentives on Manufacturer Profitability and Sales” that did a statistical analysis. There was overstock and more incentives since the Big Three produced more than they needed to. These rewards pumped up sales, often at a loss.

Articles cited

Auto News

autonews.com/apps/pbcs.dll/article?AID=/20110512/RETAIL01/110519951/1422

The Effect of Customer Rebates and Retailer Incentives on Manufacturer Profitability and Sales

isye.gatech.edu/|jswann/teaching/6230/6230 Swann Rebate (L13).pdf

Dealer Magazine

dealer-magazine.com/home/single-article/edmundscom-reports-true-cost-of-incentives-down-16/c11329d180.html

Pre-owned dealer incentives at Star Nissan

youtube.com/watch?v=2XJ9UW1VM24

Recent launch of Space Shuttle without practice

National Aeronautics and Space Administration occasionally has to break with practice and think outside the box. For a while, the Space Shuttle has launched was delayed, until National Aeronautics and Space Administration broke with that paradigm and the Space Shuttle took to the sky. The Space Shuttle Endeavour finally launched after weeks of delays. The launch was not all great, however. It is the last trip of the Endeavour.

Endeavor launch

CNN reports that the Space Shuttle Endeavor went up at 9 a.m. Eastern standard time. The last attempt at a launch was made on April 29, however had to be canceled because of a problem with a heating unit aboard the shuttle that is located in the hydraulic system, according to Reuters. The okay to go was given to the launch. That occurred just recently. The Alpha Magnetic Spectrometer, which is a $2 billion instrument 60 nations worked together to build, is being delivered in Endeavor to the International Space Station in STS-134. The machine is a particle detection and analysis machine that will try to find particles that aren’t detectable by normal telescopes and other instruments.

Last mission

The general tone around Mission Control was bittersweet. After the 16-day mission where the ISS will also get some parts, the Endeavor will be retired. The shuttle program will then launch its last journey in late June, according to the Christian Science Monitor, when the Shuttle Atlantis goes on the program’s last journey. After the Shuttle Columbia exploded on its way back to the atmosphere, the shuttle program was stopped by the Bush administration. There have been 14 astronauts killed during the shuttle program; three astronauts total lost their lives in all other National Aeronautics and Space Administration programs.

Where National Aeronautics and Space Administration goes from here

Congresswoman Gabrielle Giffords was present at the launch to view Mark Kelly, her husband, take off as mission commander, according to CBS. After almost dying from a gunshot to the head several months ago, Giffords has recovered quite well. The Soyuz spacecraft will be the only way an astronaut will be able to get to the ISS soon. This will be the case after Atlantis returns. Private contractors are intended to start creating spacecraft which astronauts will “rent” for flights into space. NASA had been working on a replacement for the shuttle dubbed the Constellation program, which was nearly identical to the Mercury, Gemini and Apollo programs using a capsule set atop a very large rocket. However, the program was scrubbed in lieu of handing responsibility to private firms. It will be several years before any such craft are accessible.

Articles cited

CNN

cnn.com/2011/US/05/16/nasa.shuttle.endeavour/?hpt=C1

Reuters

reuters.com/article/2011/05/16/us-space-shuttle-idUSTRE74E2II20110516

Christian Science Monitor

csmonitor.com/USA/Society/2011/0516/After-the-space-shuttle-astronaut-corps-awaits-a-new-mission

CBS

cbsnews.com/stories/2011/05/16/scitech/main20063171.shtml?tag=stack

Tricks to stay away from rental auto gas penalties and other fees

Gas costs nearly $4 per gallon average in the U.S. today. However did you know it will cost more than double per gallon needed if you do not return the rental with a full tank? This and other “hidden” fees can cost you an excellent deal of money. Equip yourself with knowledge now so that your rental auto bill won’t sting your wallet later.

Gas costs $9.29 a gallon for a rental auto

Auto rental companies at 13 United States airports were studied by USA Today. It found out that $9.29 a gallon is what Hertz charges to top off your gas tank while $8.99 a gallon is what Dollar and Thrifty charges. With low base fees, rental businesses often charge these extra fees. They can be avoided if you pay for the additional gasoline ahead of time though.

Adding on even more fees

1. Additional driver fees – Every driver on the auto adds on. It typically is about $10 per driver that is added on.

2. Insurance – Never purchase additional insurance for those who have a vehicle insurance policy of your own, particularly if you already have comprehensive coverage on your policy. See if your losses could be insured by the credit card company too.

3. Early/late return fees – It is always significant that you return the vehicle on time. Each day that you are late, it can cost $10 or more. Typically, rental companies will charge for early return as well. It costs about $15.

4. Child car seats – Make sure you bring your own vehicle seats into your rental. Otherwise, you’ll pay about $7 per day for each child safety seat rented through the company.

5. Toll bypass – Some rental corporations will sell you an electronic toll road pass. Just say no if you don’t want one or already have one.

6. Mileage – Watch the mileage limit. Are you going to be driving long distances? If this is the case, you should make sure you have an unlimited mileage rental to keep away from additional fees for going over your miles.

7. Cleaning – Clean up your mess, leave the cat with family and do not smoke as part of your rental automobile. It can cost a lot to have the vehicle cleaned.

Finding cheap cars to rent

To discover the least expensive rental vehicles, start by searching travel web sites like Travelocity.com, Expedia.com, Priceline.com and Hotwire.com for deals on rental cars. You really should try planning ahead. You may get good airline ticket, rental auto and hotel deals put together. You might be able to save even more with entertainment coupon books and websites like RetailMeNot.com. Make sure you rent for what you need. Do not go any longer. As long as you do not have too much stuff, you may be okay with an economy compact which will get you there safely.

Citations

Bankrate.com

bankrate.com/financing/cars/rental-car-gas-costs-9-a-gallon/

MSNBC

today.msnbc.msn.com/id/23471992/ns/today-money/t/secrets-renting-car-without-overspending/

Dollar Rent-A-Car was caught red-handed

youtube.com/watch?v=ZY4A-EJAbZs

All Detroit teachers could possibly be laid off if spending budget problems not resolved

All school administrators and teachers employed by the city of Detroit are being laid off. Starting July 29, no educator employed by the Motor City can have a job because of the deeply troubled finances of the city. A 3rd of Detroit is uninhabited, and individuals have been leaving in droves. Post resource – Severe budget problems could get all Detroit teachers laid off by MoneyBlogNewz.

Motor City schools $327 million in debt

The public school system in the city of Detroit, Mich., is so plagued by financial problems the city is being forced to lay off every single one of its teachers and school administrators, according to CNN. To raise over $230 million to stay alive through August of the year, the Detroit School District issued emergency bonds in March while continuing to have its $327 million deficit. Drastic measures were required since the district was able to raise half a year’s budget, although it was not enough. First on the firing line were staff salaries. The layoff notices are being given to all 5,714 teachers and school administrators in Detroit. July 29 could be the end of teachers in Detroit. The city will no longer be paying for it.

Nobody wants to stay

Detroit, once a sprawling metropolis and industrial powerhouse, has been losing people steadily for more than a decade. There are now the same numbers of individuals in Detroit as there was in 1910 as 25 percent of the population left in just the last 10 years. A third of the city, according to MSNBC, sits vacant. The school district has 10,000 fewer students than in 2001. In March, when the Detroit School District went into crisis mode, a law titled Public Act 4 was passed by the Michigan legislature that granted broad powers to emergency financial managers employed by state and local governments. Robert Bobb is the emergency financial manager for the public schools in Detroit. As an emergency measure, he is using the law now.

Firing may not happen

When it comes to layoffs, not every person will really be losing their jobs. Bobb, the emergency financial manager, is said to be restructuring Detroit schools in order to bring them in line with declining enrollment. However, he is also going to restructure the CBA that exists between the city and the Detroit Federation of Teachers. Bobb is likely trying to repeat what happened in 2009 when the district and union made an agreement to cut back on health benefits and teachers salaries. If the fiscal issues are not controlled, Detroit may have to deal with a state takeover, report Reuters. By 2015, the $155 million Detroit deficit might grow to $1.2 billion which would really start in 2014. Just like Bobb took over Detroit schools, an emergency manager might be assigned by the state to the city.

Citations

CNN

money.cnn.com/2011/04/15/news/economy/detroit_teachers/index.htm

MSNBC

msnbc.msn.com/id/42612424/ns/us_news-life/

Reuters

reuters.com/article/2011/04/12/us-detroit-budget-idUSTRE73B5GT20110412

Scheming barristers bungle up BP oil leak fund

The government of the U.S. directed BP to pony up $20 billion for an oil leak fund. A mere pittance of those mega billions has been dispersed to Gulf coast residents who say their livelihoods have been overturned by the environmental and economic carnage. People demanding recompense complain a lot about the claims process, which is infested with attorneys attracted to settlement money like flies on turds.

Getting through BP oil spill claims

About 19 percent of the $20 billion BP set aside for the oil leak claims was paid in the BP oil spill claims with $3.8 billion paid in total by the Gulf Coast Claims Facility a year after the Gulf of Mexico accident last year. The latest report from Kenneth Feinberg, who was appointed by the Obama administration to disburse the BP oil leak fund, said that 201,261 claims have been paid. There have been over 857,000 claims already. BP oil spill claims will be paid until August 2013 by the Gulf Coast Claims Facility which has 3,200 employees in its 35 offices in five states. The claims process has been considered unfair, slow and confusing by several people getting Feinberg a lot of criticism.

Damage proof

Feinberg made a statement on Tuesday about the BP oil spill fund management saying “Amounts requested by claimants very often bear no reasonable relationship to the damages really proven,” since $20 billion was requested by one applicant. About 72 percent of the claims from the BP oil spill have had payments or offers made. There have been claims denied too. There are pending claims also. Usually they just need some documentation. Figuring out the BP oil claims process has been hard on some of the individuals for instance fishermen. They are used to dealing in cash and without paperwork. In 574 cases disputed by claimants who believed payment was too low or rejection was unfair, the Coast Guard, charged with arbitrating disputes, hasn’t overturned a single one.

Getting the cash is all that matters

Tens of thousands of Gulf Coast residents — particularly vulnerable populations with language and culture disadvantages such as the region’s large contingent of Vietnamese fishermen — have been misled into signing up with lawyers or have been unaware that claims have been filed in their name. Feinberg spoke on the fraudulent activity. He said it was “an obstacle to the efficiency and speed in getting the checks out.” The New York Times states that several law firms have targeted Vietnamese fishermen to con them onto their client lists. When BP settles, lawyers end up with more money for how many clients are on the list. The New York Times states of a San Antonio law firm that filed claims for thousands of Vietnamese, all listed as deckhands with identical earnings. The claims were rejected, and many people were surprised to discover their names on the list.

Information from

CNN Money

money.cnn.com/2011/04/18/news/companies/BP _spill_claims/?npt=NP1

24/7 Wall Street

247wallst.com/2011/04/19/the-BP -20-billion-gulf-claims-facility-has-paid-nearly-nothing/

Los Angeles Times

latimes.com/news/nationworld/nation/la-na-gulf-spill-claims-20110419,0,2595018.story

New York Times

nytimes.com/2011/04/19/us/19spill.html?_r=1

Lansing says absolutely no to pay day advance lending as Michigan economy flails

If a legal business offers a product like pay day loans – a product for which there is a proven demand – the efforts of local governments to restrict payday loan lenders through cutthroat zoning policies are at best questionable, says the Payday Pundit. NWI.com reports the Lansing, Mich., Planning and Zoning Board are looking for ways to revise ordinances to phase bad credit loans out of town. Cutting legal, profitable, in-demand companies out of the picture is a poor choice, considering that Michigan’s HB 4214 is holding the financial martial law ax over every struggling town in the state. Source of article – Lansing says no to payday lending as Michigan economy flails by MoneyBlogNewz.

Changing ’special use’ provisions now

Lansing’s Planning and Zoning Board of Appeals has been poring over the city’s “special use” zoning provisions, ostensibly as a check-up to see if any changes need to be made. The suggestions that targeted payday lenders are not a coincidence. Bad credit loan companies help a city’s economy while helping those in need of a little boost here and there although it might help to talk about parking near churches in residential neighborhoods and making sure there are fewer in home day centers.

The zoning changes say that there cannot be any new payday advance outlets in Lansing although this is something that might end up leading to more issues in the future, some suggest. Trustee Mikal Stole said to NWI that they’re simply trying to encourage “more variety in the types of companies.

Several fighting

The state government would be able to “force a municipality” such as putting Lansing into bankruptcy with its “financial czar” (EFM) according to Detroit Rep. John Conyers while it is “an assault on democracy” according to AFL-CIO president Mark Gaffney. This is how Michigan House Bill 4214 has already caused some issues. A new Emergency Financial Manager will start to have control as the Benton Harbor, Mich., official’s powers have been superseded . The economy of the small town might be bad enough to warrant dissolution, a power HB 4214 grants to a governor-appointed EFM.

According to the Rachel Maddow Blog, Benton Harbor’s per capita income is $8,965, the lowest in Michigan. From Benton Harbor, you just have to cross the St. Joseph River to get a better number. The PCI is at $24, 949 in “Twin City” St. Joseph. This is significant because Benton Harbor is the home of the Whirlpool company, which is celebrating its 100th anniversary this year. The company is in St. Joseph, “on the other side of the tracks,” celebrating this.

The business staying at home is something the Benton Harbor business individuals would like. When it comes to payday advance, Lansing should be concerned about keeping its moneymakers around because a financial czar could possibly be waiting in the wings.

Information from

The Maddow Blog

maddowblog.msnbc.msn.com/_news/2011/04/18/6489195-whats-at-stake-in-benton-harbor

NWI Times

nwitimes.com/news/local/govt-and-politics/article_61f251e3-379e-5576-adde-8954a51e9131.html

Payday Pundit

paydaypundit.org/2011/04/18/too-prominent/

CFPB set to deliver easier mortgage forms to consumers

The Home Mortgage Disclosure Act of 1975 demands lenders to make all loan data clear to pertinent public parties. User-friend provisions like this have been around for over 30 years, yet the subprime debacle of recent years proves that the mortgage process still needs an excellent deal of work. Thus, the Consumer Financial Protection Bureau plans to take steps to simplify mortgage disclosure forms so that any prospective homebuyer can understand them. Source of article – CFPB to make simpler mortgage disclosure forms a priority by MoneyBlogNewz.

Calling the mortgage disclosure form a ‘key priority’

The Wall Street Journal reports that the new mortgage disclosure form is a “key priority” of the CFPB, a Dodd-Frank organization that will start operations on July 21.

There’s a lot of paper documentation in detail of the mortgage agreement with all of the mortgage forms. Closing the loan costs a lot in fees and costs. There are a lot of provisions as well. The 1968 Truth in Lending Act and Real Estate Settlement Act from 1974 were put together with these forms. Mortgage disclosure forms will become friendlier than ever if the CFPB gets what it wants.

“We will be looking at our first (mortgage form) prototypes,” White House adviser and possible CFPB chairwoman Elizabeth Warren told Dow Jones Newswires.

In the past, this form has been opposed

The CFPB idea to simplify the forms was being reviewed by Elizabeth Warren with supports. In the past, there have been several attempts to simplify the mortgage papers to help customers understand the exact costs with mortgage loans. This never worked in the past. The CFPB post can be filled by somebody who might make an effort to help Warren. What the decision is on changes to the credit card industry will be determined in the future.

Citations

Home Mortgage Disclosure Act

ffiec.gov/hmda/

Wall Street Journal

blogs.wsj.com/developments/2011/04/18/warren-new-prototype-for-mortgage-forms-coming-in-may/?mod=google_news_blog

You should understand your mortgage

youtube.com/watch?v=MC515DJrhsM