caruk: 2011

Seven insurance companies have sued Toyota Motor Corp. in an attempt to recover money paid to cover crashes they blame on sudden acceleration.

The insurers cite data that blames 725 crashes on the problem and fault the Japanese automaker for failing to equip its cars with an override system that would cause a car to idle if the brake and gas were deployed simultaneously. They are seeking damages in excess of $230,000 from 14 crashes throughout the United States.

The lawsuits allege that "certain of Toyota's cars and trucks have a defect that causes sudden uncontrolled acceleration to speeds of up to 100 mph or more," the Los Angeles Times reported Monday.

Toyota said the latest lawsuits were without merit.

"Toyota believes that any allegation that a vehicle-based defect is the cause of unintended acceleration in this or any other complaint is completely unfounded and has no basis," Toyota spokeswoman Celeste Migliore told the Times.

The insurance companies are American Automobile Insurance Co., Fireman's Fund Insurance, National Surety Corp., Ameriprise Insurance, IDS Property Casualty Insurance, Motorists Mutual Insurance and American Hardware Mutual Insurance.

The lawsuits were filed Thursday in Los Angeles Superior Court. They follow the recent disclosure that Toyota paid $10 million to the family of four people killed in a runaway Lexus crash that led to recalls of millions of the automaker's vehicles.

2011: The Year of the Baby Boomer

Baby Boomers are defined as those people born between 1946 and 1964, a demographic that's roughly 77 million strong. According to the latest Census, starting on 1/1/11, 7,200 people will turn 65 years old, every single day.

Even more compelling is the fact that "spending by the 116 million U.S. consumers age 50 and older was $2.9 trillion last year -- up a whopping 45 percent in the last 10 years. Meanwhile, the 182 million people younger than age 50 spent $3.3 trillion last year -- up just six percent in the same decade," according to an analysis of U.S. Bureau of Labor Statistics data conducted by The Boomer Project for USA Today. With numbers like that, it stands to reason that Boomers would be a highly sought after target market for automakers.

Yet many marketers largely ignore this audience for the more trendy, sexy 18-34 year-olds. The thinking has been that the younger crowd spends more and has more influence. Well, we now know that's not true. "Last year, consumers age 50 and older spent $87 billion on cars compared with $70 billion by those younger than 50," reports the Consumer Expenditure Survey from the Bureau of Labor Statistics. Not only do the oldsters spend more in absolute dollars, but they buy more new cars and spend more on the cars they choose.

But when is the last time you've seen a marketing campaign aimed at greying retirees? Car commercials are almost entirely aimed at a younger crowd. That said, marketing to the Baby Boomer audience is tough. The Baby Boomer generation, unlike their parents, is a much more vital, energetic, and consumer-oriented crowd. USA Today reports that Baby Boomers spend more on technology than other demographics, shelling out an average of $850 for their latest home computer, $50 more than any other group, according to data from Forrester Research. Jacqueline Anderson, a consumer insights analyst quoted in the article takes on the traditional notion that Gen Y consumers are the most eager technology shoppers, pointing out that they don't have the spending power of Boomers. The article also states that Baby Boomers are buying more Apple products not just because they are cool but also because they are easy to use. As much as any generation, Boomers appreciate ease of use, speed, and dependability -- along with style. So on one hand, Boomers are in a different phase of life, but on the other, they are far from being "old." Boomers are acting and living more youthfully and any previous generation of retirees and most are loathe to accept that they're aging.

So where does this leave the carmakers? Some actually seem to get it. From 2007 to 2010, the average age of a new car buyer rose from 52 to 56. Lincoln's average buyer age went past 60 in that same time frame. In acknowledging this, while at the same time trying not to turn off young buyers, Lincoln has hired "Mad Men" actor John Slatterly.

Global Domination

The company's ambitions are lofty. A year ago, at the 2010 NAIAS, BYD announced its intention to be China's biggest automaker by 2015 and the biggest automaker in the world by 2025 -- this from a company that only formed its car business in 2003.

The car that BYD plans to launch first to consumers is the five passenger E6 electric car. Slightly smaller than a Hyundai Sonata, it has a top speed of 140 km/h (86 mph) and can travel 200 miles on one charge of its batteries, the automaker claims. After the E6 will come the S6DM dual-mode crossover, a hybrid which features both electric and gasoline drivetrains.

The BYD E6 has been sold to government and taxi fleets in China. The sedan would retail in the United States at an MSRP potentially as low as $35,000. The S6DM's dual-mode system gives it a range of 38 miles on battery power alone or 310 miles when using gasoline as a range extender, akin to the Chevy Volt. The vehicle uses the internal combustion engine to power the front wheels while the electric motor moves the rear wheels.

BYD placed 10 units of another model, the F3DM into fleet testing in December at the Housing Authority of the City of Los Angeles. The company plans to complete all crash testing for both models needed to pass U.S. safety tests.

BYD has ambitions, but as any automaker can attest, getting consumers to buy unknown brands is not easy, especially when it comes to automobiles. "It's an interesting technology company, but they haven't shown anyone they understand the U.S. market and the way vehicles are distributed and sold," says auto industry consultant Jim Hall of Group 2953 Analytics.

"What is most interesting about the company so far is who has invested in them -- Warren Buffett and Mercedes-Benz," says Arnold Gray, an engineer and auto industry consultant on alternative drivetrains such as electric and hydrogen. "I don't doubt they will make a splash in the U.S., but I'm doubtful it will be a wave."

2011 Nissan Sentra

Nissan is offering one of the lowest lease rates ever on its popular Sentra compact: just $139 a month. And the initial payment of $1,999 probably won't break the bank either. The special lease payment for a Sentra has varied greatly over the past year. As late as last August, it was running $149 to $179 a month. Another advantage: The term is 39 months, giving you an extra three months to get your financial act together before your next purchase or lease. One reason for Nissan's largesse is that used car prices are expected to rise, and it can count on making a tidy profit on returned Sentras once the leases are up. In the meantime, lessees reap some of the benefit, provided they can live with driving just 12,000 miles a year (or pay $0.15 a mile above that threshold). Sentra owners also save money at the pump: The relatively spacious compact gets a maximum fuel economy of 24 miles per gallon in the city and 31 on the highway. Nissan offers the option of a 2.0-liter, four-cylinder engine generating 140 hp, and two 2.5-liter engines generating either 177 or 200 hp.

There certainly was no shortage of creativity in automakers' marketing departments as they worked on the leasing incentives for January.

Both Honda and BMW devised zero down payment deals designed to bring reluctant consumers back to dealership showrooms, and most automakers are requiring fairly low upfront payments. Although its rates are a bit higher than those for other compact cars this month, Toyota's Scion brand is traditionally the leader in the down payment game, invariably requiring less than $1,000. And the initial payment on a Cadillac SRX is a mere $1,929 -- an amount more suited to a compact or midsize car. Monthly payments naturally tend to be higher when automakers eliminate a down payment -- they have to make up the loss somehow. But the lessee still generally comes out at least a few hundred dollars ahead once all the costs are added up. As far as monthly rates go, consumers will generally find rates affordable. There are many compacts with payments in the $150-$190 range, for example. The monthly lease payments in the midsize segment continued to hover around $200 -- a sign that most automakers are serious about competing in this category. The competition will only intensify once VW's American-made Passat hits the market later this year.

Best Auto Insurance Advice

Car Insurance Discounts
Everyone wants a bargain, especially as car insurance goes up every year. There are discounts if we can satisfy some basic criteria. Make sure you ask your insurance agent if you qualify for any of these discounts.
Auto Insurance Discounts You May Qualify For
Automatic Seat Belts
Automatic seat belts are those annoying belts that choke you when you close the door. Some companies might discount up to 30% off Personal Injury Protection and Medical Payments coverage if the driver and passenger sides have air bags and automatic seat belts.
Anti-theft/Alarm
Some companies give discounts off the Comprehensive premium when an active anti-theft device is present. This usually means a burglar alarm. Some companies may discount more if the alarm arms itself automatically when you turn off the vehicle.
Driving School
Some companies give drivers under age 25 who complete a state approved drivers education class up to 10% off on Bodily Injury, Property Damage, Medical Payments, Personal Injury Protection and Collision coverage.
Safe Driver
Sometimes if you're a safe driver, usually 3 years with no points, you qualify for additional savings on different types of coverage. The insurance company will let you know. Usually on your insurance bill you'll see something that says "Your premium reflects the maximum discount allowed for safe driver".
Multi-Car or Home & Car
If you insure 2 or more vehicles on the same policy some companies may give you a discount. They may be equally generous if you have your home and both cars insured with them as well.
Safe Vehicle
Some insurance companies classify certain cars as "Safe Cars", meaning there's statistical data to suggest that there's less risk of injury by way of design, air bags ABS, etc. Find out if your car qualifies for this discount.

Tuesday, January 25, 2011

Sunday, January 23, 2011

Thursday, January 20, 2011

Wednesday, January 19, 2011