Category Archives: CARS

It’s March Madness.

It’s March Madness, that’s for sure. No, I’m not referring to basketball. I’m referring to automotive sales. Many auto companies have reported large increases in car and truck sales for the month of March.

General Motors reported a 12 percent increase, Nissan’s sales rose 12.5 percent, Hyundai’s American sales were up 13 percent, and Volkswagon said its March sales rose a whopping 35 percent. Ford Motor Company reported a 5 percent increase in sales, while Chrysler Group reported an astonishing 34 percent increase from March 2011 in sales this year in cars and trucks. For both Ford and Chrysler, this is the highest level in at least four years. AutoNation, the country’s largest dealership chain, says sales went up 26 percent for domestic brands, 10 percent for import brands, and 10 percent for luxury vehicles. Interestingly, this March has seen an auto sales increase in other countries around the world, such as India.

One would assume that due to the extreme price of gas these days would deter people from purchasing a car. The national average for regular gas is $3.92 per gallon, according to the AAA. One might think that the higher “green” awareness, the knowledge that smoke and exhaust from cars harms the environment, pervasive in the marketplace today would also deter people from buying them.
However, this is just not the case. On the one hand, people are buying more hybrid, “eco-friendly” cars, to deal with the aforementioned issues, but they’re still buying. And they’re not spending less, either. On the contrary, people are now paying more for cars than ever before.

“Consumers aren’t overreacting to gas price rises,” said Don Johnson, G.M.’s vice president for United States sales operations. “They’re not panicking and going from a full-sized pickup to a small car that doesn’t give them the same utility.”
Why are more cars being bought? A few possible explanations may be the decrease in unemployment in recent months, warm weather helping bring customers out of their houses and into dealerships, and a wider availability of auto financing. People who delayed buying a car during the economic downturn are now venturing out and buying. Ellen Hughes-Cromwick, Ford Motor Co-Economist, so aptly put it: “People are going back to work and the vehicle stock…is ripe for replacement.” People are also getting rid of their old cars and replacing them with newer cars as the economy recover and gas prices rise.

In addition, the average credit score for new car buyers is at an all time low; it hasn’t been this low since the first half of 2008. This makes the car market an easier place to navigate for new consumers, which is always a good thing; buying a car for the first time can be confusing, and the easier it is, the better the person feels about their purchase.

Analysts say they expect 1.4 million cars to be sold. This is 15 percent more than a year ago and the most since 2007. John Humphrey, senior vice president of global automotive operations at J.D. Power and Associates, says, “Barring any future shock related to geopolitical issues in the gulf region and further upward pressure on the price of oil, we believe sales will continue on a solid pace for the balance of the year.”

http://www.nytimes.com/2012/04/04/business/car-sales-keep-up-their-firm-growth.html?_r=2&hp

http://bottomline.msnbc.msn.com/_news/2012/04/03/10999202-auto-sales-on-target-for-best-month-since-2008

http://online.wsj.com/article/SB10001424052702303816504577319152950129124.html

http://www.reuters.com/article/2012/04/03/us-autos-sales-idUSBRE8320GK20120403

Hyundai’s Early "Car Allowance Rebate System" Trades Show Nearly 60 Percent Improvement in Fuel Economy.

Early trend could translate to annual savings of 69 million gallons of gas, $170 million in fuel costs and more than 600,000 metric tons of co2 emissions

FOUNTAIN VALLEY, Calif., 07/24/2009 Early statistics from Hyundai Motor America on the U.S. government’s Car Allowance Rebate System (CARS) program, also known as “Cash for Clunkers,” show an average 59 percent fuel economy gain between the “clunker” and the new vehicle purchased. Hyundai estimates individual fuel consumption will decrease by 275 gallons per year, reducing fuel costs by nearly $680 annually at current gas prices.

As this program expands industry wide, the energy and cost savings could be considerable if these early trends hold for the 250,000 vehicle sales expected under phase one of the CARS program. Annual fuel consumption in the U.S. could decrease by 69 million gallons, reducing spending by a total of nearly $170 million on gasoline[1], and cutting CO2 emissions by more than 600,000 metric tons.

“While the figures are indicative of early trends only, it is clear that the program, at this stage, is very successful in getting old, low fuel economy vehicles off the road and replacing them with safer and greener vehicles,” said Hyundai Motor America President and CEO John Krafcik. “We think these economic and environmental benefits are so compelling, that they will induce Congress to expand or enhance the CARS program past its current endpoint.”

Additional statistics from the Hyundai sample prove further that the CARS program is truly removing “clunkers” from the road. Eighty three percent of the initial trades take in a truck, SUV or van and 86 percent of the new vehicles purchased are passenger cars. The average age of a trade-in model is nearly 14 years, and the average odometer reading is more than 140,000 miles. The average “clunker” achieves about 16 miles per gallon according to EPA data, while the average new car sold under the program achieves more than 25 mpg.

Hyundai became the first automaker to honor the government’s CARS incentives on July 2 and the novel consumer incentive program accounts for about 11 percent of Hyundai sales so far this month. Nearly a third (32 percent) of the trade-in models reported by dealerships were Ford vehicles, followed by Dodge (23 percent). Lexus, Jaguar, and Mercedes-Benz are among the other brands delivered as “clunker” trades, demonstrating both the broad appeal of the government program, and the changing nature of Hyundai’s product line and buyer demographics. Hyundai’s rollout enables buyers to receive the full rebate allocated under the CARS program when an eligible trade-in is exchanged for a qualifying Hyundai model at a participating Hyundai dealership.

The fuel-efficient Hyundai Elantra was the most popular model purchased under the CARS program, making up nearly 33 percent of sales. Elantra recently earned top honors in the 2009 J.D. Power and Associates Initial Quality Study for the highest initial quality in the compact car segment, and is a “Top Pick” from a leading consumer magazine. With manufacturer incentives and a full CARS rebate for a qualifying “clunker,” consumers can purchase a new Elantra for as little as $8,620. Sonata (27 percent) and Accent (19 percent) ranked second and third, respectively, in CARS transactions.

Hyundai accelerated CARS incentives to consumers by several weeks by backing dealerships with short-term cash advances as the government organized the rollout of the program industry-wide. Under the CARS program, consumers qualify for a $4,500 rebate on the purchase or lease of new vehicles that achieve 10 miles per gallon more than a trade-in car or five miles per gallon or more than a trade-in light truck. New vehicles that achieve between 4 to 9 mpg more than a trade-in car, or 2 to 4 mpg more than a trade-in light truck qualify for a $3,500 incentive. See www.cars.gov for complete details.

Thirteen Hyundai models and engine combinations qualify for the CARS incentive program, which requires passenger cars achieve 22 mpg or more combined fuel economy, and light trucks achieve 18 mpg or better combined fuel economy.

* Accent
* Elantra

* Elantra Touring
* Entourage
* Sonata 2.4L
* Sonata 3.3L
* 2010 Genesis Coupe 2.0L
* Tiburon 2.0L
* Tucson 2.0L

* Tucson 2.7L
* Santa Fe 2.7L
* Santa Fe 3.3L
* Veracruz

Five Hyundai models achieve 30 miles per gallon or more on the highway –Accent, Elantra, Elantra Touring, Genesis Coupe 2.0L and Sonata 2.4L. Hyundai ranks third in corporate average fuel economy according to the U.S. Environmental Protection Agency, so consumers will realize further cost savings by stepping into a more fuel-efficient model than they currently drive.

The CARS incentive program complements all existing special incentives and financing options from the manufacturer, including Hyundai Assurance, which allows consumers to return their vehicle if they unexpectedly lose their income, and Hyundai Assurance Gas Lock, which offers a year’s worth of gas at a guaranteed price of $1.49 per gallon. Visit www.Hyundai.com for details.

HYUNDAI MOTOR AMERICA

Hyundai Motor America, headquartered in Fountain Valley, Calif., is a subsidiary of Hyundai Motor Co. of Korea. Hyundai vehicles are distributed throughout the United States by Hyundai Motor America and are sold and serviced through more than 790 dealerships nationwide. All Hyundai vehicles sold in the U.S. are covered by The Hyundai Advantage, America’s Best Warranty. In addition, Hyundai Assurance is now offered on all new vehicles leased or purchased from a certified Hyundai dealer. The program is available to any consumer, regardless of age, health, employment record or financed amount of the vehicle. The program is complimentary for the first 12 months.