ONLINE MEDIA

Buying Habits Changing?

Mon, 21 Jul 2008 18:28:27 GMT

Buying Habits Changing?

Consumers change buying habits, but will it last?

By ANNE D'INNOCENZIO – AP

July 21, 2008

NEW YORK (AP) — Adrienne Radtke plans to keep riding her bike to work even if gas prices drop. Steve Pizzini got rid of his Cadillac Escalade in favor of a 16-year-old Acura and doesn't expect to have another gas-guzzler.

"I had a paradigm shift," said Pizzini, a financial analyst. "I spent the money on a nice car. But to me, it's not worth it. I don't think I will go that route again."

Every economic downturn changes shoppers in some way. But this time, experts say the new behavior — fueled by higher gas and food prices, tightening credit and a slumping housing market — are the most dramatic and widespread that they have seen since the mid-1970s.

So retailers, marketers and investors are all trying to figure out which habits shoppers will keep and which will they drop when the economy recovers. Will the people who switched to store-brand ice cream go back to Breyers or Edy's? Will shoppers return to department stores or keep looking for labels at T.J. Maxx?

"We are looking at stuff that reminds me of the 1970s," said Patricia Edwards of investment manager Wentworth Hauser and Violich. "Americans have seen a huge amount of their balance sheet evaporate. The effects will be more lingering."

Wendy Liebmann, president of WSL Strategic Retail, says people's new spending patterns are forcing companies to change the kinds of products they sell and tweak their marketing to appeal to cost-conscious shoppers. She points to the last big recession of the early 1990s that helped trigger a fundamental shift in retailing as affluent shoppers started buying at discounters as well as upscale stores.

Radtke, 31, who holds down two jobs — at a veterinarian's office and at a flower shop — recently picked up shoe glue to fix the soles of her worn sneakers. She's buying store-label soups and crackers and bought a bike for her commute after not having ridden one for five years.

"We weren't big spenders, but now we are watching our money more," said Radtke, of Manitowoc, Wis., whose husband works in construction. "Even if I fell into a pile of money, I still wouldn't be spending a lot."

According to a survey released Thursday by market research company Nielsen Co., which tracks consumer habits, about two-thirds, or 63 percent, of consumers are cutting spending due to rising gas prices, up 18 percentage points from a year ago.

According to the study, which queried nearly 50,000 consumers by e-mail during the first week of June, 78 percent of them are combining shopping trips and 52 percent are eating out less often. Consumers are also cutting more coupons, doing more of their shopping at supercenters and buying less expensive brands, the survey found.

A rebounding economy may let some consumers revert to their old ways — like people who switched to smaller cars when times were hard in the 1970s but flocked to sport utility vehicles when gas got cheap again. But with more economists believing that the current woes will last well into next year, many think the underlying frugality will linger. Some Americans say their parents or grandparents affected by the Great Depression are still hoarding buttons and squeezing out several soup meals from ham bones.

"I shop cautiously," said Edna Sott, an 88-year-old resident from Berkeley Heights, N.J. "I would say that is a hangover" from the Depression.

Marian Salzman, chief marketing officer for public relations agency Porter Novelli, cites a "Depression mentality" that's making people "rethink their optimism in the economy."

The widening gap between discounters and mall-based apparel sellers was evident in monthly retail sales figures released last week. The International Council of Shopping Centers-UBS tally of 38 stores found that same-store sales at discounters rose 5.1 percent in June and 9 percent at wholesale clubs. Discount giant Wal-Mart Stores Inc. posted a robust 5.8 percent, its best June performance since 2002.

At department stores, though, same-store sales — or those at stores opened at least a year — dropped 4.1 percent.

"People are spending money on food and the products they need to sustain life," said Todd Hale, senior vice president at Nielsen.

He noted sharp declines in visits to clothing, office supply and hardware stores. He also pointed out that sales of store-brand products in grocery items are up 9.1 percent for the year ended April 19, while sales of branded products rose a more modest 3.9 percent. More than half the sales growth from store label grocery items is now from dairy like milk and cheese, an area that has seen soaring inflation.

Liebmann says Americans are trying to take "control of the little things" like mending socks or buying more store-brand food because they can't control the big things like gas and food prices.

Their little changes, though, are forcing some companies to respond in big ways.

Auto executives predict that consumers' newfound appreciation for smaller cars will be permanent, causing major pain at auto plants. Toyota Motor Corp. was among the latest to announce a product overhaul, saying it will shut down truck and SUV production to meet the changing consumer needs.

Pizzini, 29, of Eagleville, Pa., says his elderly Acura gets almost three times as many miles per gallon as the Escalade, whose lease he got out of through a company called LeaseTrader.com. Since last October, LeaseTrader.com has seen a 24 percent increase in the number of people who want to downsize to a smaller car, spokesman John Sternal said.

Fred Clements, executive director of the National Bicycle Dealers' Association, said consumers stung by $4-per-gallon gas are shifting toward utility bikes and away from recreational versions. That's forcing bike shops to change their inventories and offer more training for consumers who may not have ridden a bike in years, he said.

Plenty of stores that have benefited from shoppers' woes are hoping to retain them when the economy rebounds.

Andrea Thomas, executive vice president of private brands at Wal-Mart, thinks that many shoppers will stick with store labels since the quality has improved so much. Overall, Wal-Mart expects to retain the affluent customers when the economy recovers because it has made improvements in its stores and customer service.

Edwards, of Wentworth Hauser and Violich, agrees that new fans of discounters will keep buying at discounters as long the products measure up. And she sees lower-income shoppers switching back to meat from beans and rice before going back to name-brand food.

At the Alexandria Shoe Repair and Leather Service in Virginia, sales have increased 18 percent since February.

"I am seeing a younger crowd who lives in the disposable world," said owner Barbara Steube. "They are learning an economics lesson. They will see the benefit of the savings and how much money they walk away with when they fix their shoes."

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This story posted by LeaseTrader.com, the automotive service company that lets people transfer out of their Car Leases early. If you're looking to swap a lease or transfer out of your Car Lease, please visit www.leasetrader.com.

Dating and Cars

Tue, 15 Jul 2008 18:17:44 GMT

Dating and Cars

What your man's car says about him

Monday, July 14, 2008

KGO TV San Francisco

It may be what's on the inside that counts, but it's what's outside that attracts. LeaseTrader.com and dating coach DeAnna Lorraine give insight on what women really think of the cars men drive.

Ms. Lorraine says a man's vehicle sends messages about his character that women immediately pick up on. "A man's car reveals a lot about his personality and values, and may determine a woman's attraction toward him," states Ms. Lorraine. "Women pay attention to more than just a man's personal looks."

So what's your car saying about you?

LeaseTrader.com shared with Ms. Lorraine the five most popular leased vehicles men drive, according to user data on the site. Ms. Lorraine then created a profile that represents the vehicle's personality traits:

Chevy Suburban: These men like travel, adventure and spending time with friends and family. These vehicles attract women that are family-oriented, down-to-earth and easy-going.

Mercedes S-Class: These men are classy, successful, stylish and "Sugar Daddies." These vehicles attract women that are in their late 30s and 40s, sophisticated, and enjoy being taken care of.

Ford F-150: These men tend to be insecure and overcompensate on a tough, macho level. These vehicles attract women that prefer to be protected by a man so they can feel safe.

Corvette: These men are conservative but are trying to satisfy a mid-life crisis by displaying their wild side through their car. These vehicles attract women that are attracted to the bad-boy image, and are typically "hot," bad girls themselves that are impulsive, wild and rebellious.

Toyota Camry: These men are solid, reliable and committed. These vehicles attract women that are sweet, level-headed, uncomplicated and undemanding.

For help with exchanging your current lease for a different vehicle, visit: www.LeaseTrader.com or call 800-770-0207.

For advice on enhancing your dating life, visit: deannalorraine.com | TheSanDiegoDatingCoach.com or call (866) 694-4722 | (858) 405-0210.

About DeAnna Lorraine

DeAnna Lorraine is a San Diego-based Dating Coach and Certified Life Coach highly trained and specialized in the areas of Dating & Relationships. With degrees in Gender Communication & Psychology, she has studied and researched heavily relationships and social dynamics, male and female psychology and communication. She helps successful adults who are looking to settle down identify what's been keeping them single, and putting them on a track to accelerating the dating process and meeting compatible, quality partners. She has worked with and provided results for software developers, engineers, attorneys, real estate agents, and other industry singles.

About LeaseTrader.com

LeaseTrader.com is an innovative provider of vehicle lease transfers that easily and affordably matches car shoppers with people wanting out of their leased vehicle. People often want out of their lease contract but don't want to pay the hefty fees associated with early lease termination. Available to users nationwide, the service matches individuals wanting out of their lease with people seeking short-term leases with attractive payments and no money down. Privately held and founded in 1998, LeaseTrader.com is headquartered in Miami.

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LeaseTrader And The Dating Coach

Wed, 02 Jul 2008 18:33:42 GMT

DATE DOCTOR BREAKS DOWN MEN AND THE CARS THEY DRIVE

KFMB San Diego

It may be what's on the inside that counts, but it's what's on the outside that attracts. So what kind of car do you drive? News 8 spoke with a San Diego dating coach about men and their cars.

Every guy can tell you every car they've ever driven, but they might not be able to tell you what that car said about them. If you're trying to jump start your love life, San Diego's "Date Doctor" Deanna Lorraine says when it comes to men and their cars, women are watching.

"A lot of women do it, and it definitely sends an impression," Lorraine said.

Paulie drives a BMW 330.

"It's fast, it's smooth and it attracts a lot of women," he said.

But the Date Doctor says too much bling might chase women away.

"It does seem like the type of guy who drives a sports car who maybe won't commit to you may be kind of a player," Lorraine said.

Eddie calls his tricked-out Chrysler a "chick magnet".

"All kinds - black, white, Mexican, Asian - they all love it. Everybody loves this car," Eddie said.

But what does a luxury sedan like Bernie's Lexus say about a man?

"That he's big paycheck, big ego and not afraid to show it," Lorraine said.

That brings us to gas guzzlers. The Date Doctor says watch out ladies. Big truck guys can be insecure.

"Maybe over-compensating for something that is lacking, because they have this huge, lifted truck," Lorraine said.

News 8's Jeff Zevely wanted to find out what the Date Doctor thought his Honda Accord said about him.

"I drive this car because I want something that starts every time and gets good gas mileage," Zevely said.

Deanna says Jeff is safe, a bit boring, but reliable.

"A lot of women would think you're like the commitment type of guy who is not going to trade them in for something younger and hotter, per se," she said.

Deanna Lorraine consults for LeaseTrader.com, and says if you want to start attracting a different type of woman, it may start with a new car or attitude.

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What Cleveland Women Want

Tue, 01 Jul 2008 00:11:47 GMT

What Cleveland Women Want

Readers are important back seat drivers for this feature

Thursday, June 26, 2008 - Cleveland Plain Dealer

I really enjoy opening the "mailbag" and hearing from readers who have suggestions for topics in this space or comments about past stories. I also appreciate alert readers, including Alan Travaglianti of Strongsville.

Awhile back, I wrote a story about helping teenagers learn the skills they need to be safe drivers. I quoted information provided by The Mid-Ohio Sports Car Course that said a teenager is killed in a car crash every 6.5 minutes. Sharped-eyed Travaglianti took me to task for not checking my math and wrote, "With 365 days per year, 24 hours per day and 60 minutes per hour, we have 525,600 minutes per year. At a fatality rate of one every 6.5 minutes, that would be 80,862 teenage deaths. That is way more than the overall total of about 38,000 car fatalities per year."

No, I didn't do the math. I got A's in every subject in school except algebra. I only passed that class because Mr. Brown, my math teacher at Solon High School, took pity on me. Anyway, Mid-Ohio confirmed that the stat was wrong and has revised its information to read that a teenager is killed in a car crash every 64.5 minutes. And although even one teenage death in this country is too many, at least the number is lower than reported originally.

Travaglianti also commented about the value of defensive driving courses for teenagers. His son was 17 years old and driving for a year when the teen enrolled in a Track Time high-performance driving course at Mid-Ohio. The course was a graduation present from his parents. Travaglianti said his son learned "how a car really handles with braking, turning and accelerating like one could never do on public streets."

"My relatives and friends thought it would cause my son to become a street racer by having him learn how to drive fast. He learned instead that racetracks are for speed and public highways are for people and defensive driving. What he learned about car control taught him much about winter driving and what to do when skidding. He has not had a speeding ticket in 14 years since taking this course," said Travaglianti.

That's what we like to hear. And on another subject...

According to a Favorite Car Feature survey of female customers, 62 percent of women "most enjoy" a fold-down back seat that provides more storage area. The survey was conducted by LeaseTrader.com, a company that helps consumers transfer car leases. John Sternal, vice president of marketing communications, said the next most enjoyed items in order are: Bluetooth capability, MP3/iPod connectivity, automatic open/close hatchbacks, and GPS technology.

Tiffaney Beatty, senior vice president, National City District Sales Executive, shared research that said "men are four times more likely than women to negotiate," which could "mean a big disadvantage for women when it comes to car shopping." Beatty said the bank's Check Ready is a new auto loan feature that includes a blank check up to a maximum amount that can be used like a personal check when buying a car.

According to Beatty, the "check is a strong incentive for the dealership to meet your price. It takes away the stress of wondering whether you'll get financing at the rate you want." Having a set loan amount also helps a car buyer stay within a budget," she said. For more information, visit www.nationalcity.com/autoloan.

A reader from Brooklyn, Ohio, asked for suggestions for a "good car repair shop" on the West Side. I'm sure, or at least I hope, she has had her faulty brakes fixed by now. But any suggestions for future repairs would be welcome.

Colette Brooks is owner of BioBling, a company that connects "conscious women with biodiesel cars and the fuel - veggie oil - to run them." Brooks tracks down car dealers and private sellers who are selling the green car you want. Brooks gets 10 percent of the acquisition cost to locate the car and you pay shipping fees if necessary. She can also hook you up with a biofuel distributor.

If you already drive a biodiesel car or you just think it's a good idea, Brooks also sells t-shirts, tank tops and long sleeved shirts that tell the story. For more information, visit www.biobling.com

Women and Cars will be looking at alternative fuels in a future column. I'm intrigued that fuels have been made from algae and other unusual sources. I'm interested in what you have to say about the subject and if and why you drive a green car. Please email me at the address below.

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Lease Transfers Grow As Economy Declines

Tue, 17 Jun 2008 18:24:54 GMT

Rise In Lease Trades Good For The Aftermarket?

June 17, 2008

Auto Service World

In the wake of high gas prices and the slumping U.S. auto market, LeaseTrader.com has experienced a 30 percent increase in transactions for its lease transfer program.

Such a shift could prove positive for the aftermarket, as new lease owners will not have the same relationship with the dealer.

Consumers point to a slowing economy and unappealing new car sales incentives as leading reasons why they'd rather take over someone else's lease.

Some U.S. auto manufacturers have reported sales decreases from 20 - 40 percent on certain vehicles in recent months.
Even smaller, more fuel-efficient cars are selling at low, single-digit increases for manufacturers.

Since the beginning of 2008, LeaseTrader.com has tracked a 30 percent increase in transactions. Vehicle shoppers have the luxury of taking the car salesman out of the picture by negotiating directly with another consumer wanting out of a vehicle that still has several months remaining on the lease.

So far in 2008, the BMW 3 Series and Mercedes C-Class have been the most popular vehicles for lease transfer.

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Americans Downsize to Cope with Fuel Prices

Tue, 17 Jun 2008 17:59:32 GMT

Desperate to Downsize: American Consumers Dash to Cheaper Fuel Sippers

By Dale Buss on June 17,2008

Edmonds AutoObserver

Consumers' quick, massive shift toward smaller vehicles has bludgeoned the auto industry. But Americans have only begun to show automakers how anxious they are to make transitions to more fuel-efficient transportation.

A desperation to downsize is taking hold across the land, fed not only by skyrocketing fuel costs but also by the rise in general economic pressures, most notably the mortgage mess. And this surge is likely only to intensify, even if gasoline prices somehow moderate.

"Consumers want to abandon their less-fuel-efficient vehicles for smaller cars, and that's illustrated by all sorts of trends," said David Tompkins, executive director of industry solutions for Edmunds.com, parent of AutoObserver. "But what's really coming into play is the urgency they feel to do so sooner rather than later. This is becoming a huge wild card for the industry."

The increasing urgency is becoming apparent in a number of ways, both in new-vehicle retail-sales patterns as well as in all sorts of significant tangents.

Consumers are buying smaller vehicles and trading in larger ones at previously unseen rates, of course. They're also growing more inclined toward used cars. Americans are even popping more often for tiny and sometimes two-wheeled vehicles.

More than ever, they're also rushing to escape from leases for SUVs and trucks.

And sadly, more Americans are deciding that the only way to get out from under their automotive burdens is to torch their vehicles and make fraudulent insurance claims.

"Rather than stretching or gradually making a change, consumers are making a snap change here - they're shifting all at once," said Lincoln Merrihew, senior vice president of TNS Automotive, an industry market-research firm in New York.

"It's like a school of fish who change all at once. And the problem for the car industry is that it isn't designed that way. It's hard for [automakers] to respond to that."

As automakers try to gear up their own huge adjustments to this sea change, at least three trends in consumer sentiment and activity already seem emergent:

· The segment shift toward smaller, lighter, more fuel-efficient vehicles - and away from full-size pickup trucks and SUVs - is only accelerating.

· The battle over SUVs as appropriate transportation for responsible Americans is over. And SUVs lost.

· The watershed in Americans' thinking about vehicle size and efficiency is spilling over into other areas of economic life and lifestyle.

Flight From Fuel Hogs

In the biggest - and, still by far the most important - window into these trends, purchase and consideration behavior continues to head dramatically toward more fuel-efficient vehicles.

As Chevrolet intones in its latest TV advertisements touting the division's lineup of six vehicles that get 30 mpg or more on the highway, consumers want automakers to "tell me something good." And many of them are trolling online automotive sites such as Edmunds.com as never before seeking advice from others on how to proceed.

"I have enjoyed everything about my 04 Durango w/Hemi except the high monthly payment and the ridiculous gas guzzling," Lynnette Lyons Berman of San Antonio, an Edmunds.com Forums visitor, recently wrote. "I think I have convinced hubby that a lower-priced more fuel-efficient vehicle is a wise choice for our family of five at this point. However, I find myself going in circles trying to decide what to buy."

In a broad reflection of such impulses, in just the last two months, according to Edmunds.com's analysis, consumers have shifted hugely away from same-segment trades and purchases and toward a pattern of trading in larger and less fuel-efficient vehicles for those that will cost them less at the gas pump going forward. The number of same-segment trades for small and midsize cars in April and May, combined, was 17 percent fewer than in January-February, Edmunds.com found, while the number of trucks and SUVs offered in trade was 35 percent higher.

Consumers buying small cars are trading in significantly more small and midsize SUVs than they did during January and February, said Dr. Tompkins of Edmunds.com. Same-segment trades declined by 19 percent in April-May, he said, while trade-ins of midsize SUVs rose 45 percent; trade-ins of small SUVs increased 37 percent; trade-ins of large and luxury SUVs averaged about 33 percent higher; swaps of large trucks were 25 percent more in April-May; and 15 percent more compact trucks were exchanged.

Edmunds.com analysis also showed that customers buying midsize cars are dumping large SUVs at a rate 83 percent higher than just three months ago. In April-May, same-segment trade-ins of midsize cars declined 14 percent compared with January-February. After large SUVs, the biggest segment increase in trade-ins for midsize cars -size cars was large trucks and luxury SUVs, both at a 39 percent gain. Midsize SUVs were traded in 32 percent more often, compact trucks 26 percent more, and small SUVs 22 percent more.

Moreover, Tompkins noted, "Consumers buying small and midsize cars are trading in newer vehicles." In just three months, he said, there has been an 11 percent increase in small-car buyers trading in vehicles that are less than four years old. For midsize-car buyers, 5 percent more are trading in a newer vehicle.

Toyota Prius sales -- which were supply-constrained in May after many months of spectacular growth -- nevertheless continue to be a telling individual barometer of the growing mileage-consciousness of American consumers. In April-May, there were 27 percent fewer consumers trading in a small car for a Prius, compared with January-February, and 14 percent fewer swapping a midsize car. But Americans traded in luxury SUVs at a 56-percent higher clip, large cars 52 percent more often, and large SUVs 46 percent more often.

Used cars are becoming a more common alternative for many Americans. "People are wanting to get rid of larger vehicles and get something smaller," said Curtis Kroeker, chief executive officer of eBay Motors, one of the nation's largest used-car markets.

"Meantime, these are tough economic times, so people aren't feeling flush with cash. That leads a lot of people to the used-car market who might otherwise buy a new car."

Naturally, the smallest vehicles available via eBay Motors are becoming some of the most popular. Used Honda Civics are one. But while General Motors has stopped selling new Chevrolet Geos, and Ford has stopped selling Ford Escorts, Kroeker said that there are as many as 40 bids on each used Escort and Geo that shows up now, a huge leap over a couple of years ago.

"Those cars have gone from being more in line with average [demand] to being some of the highest-demand vehicles on the site," he said.

Auto dealers nationwide also are experiencing strong growth in sales of their Certified Pre-Owned Vehicles, which give consumers a price break but also the reassurance of safety and soundness that come with the factory guarantees. April sales of these vehicles hit the second-highest level on record, at nearly 157,000 units, according to Autodata Corp.

Certified used vehicles are concentrated in luxury brands, and some upscale marques have been experiencing the biggest sales jumps. In May, for example, Audi's certified pre-owned sales rose to nearly 3,400 units, an increase of nearly 43 percent over a year earlier. And Mercedes-Benz sales rose 32 percent in May, to more than 6,000 vehicles, as well as by more than 24 percent year-to-date compared with 2007.

Of course, consumers also are buying more hybrids than ever, although the hybrid market is spottier than one might expect. Prius remains supply-constrained at least for now. And GM has been having trouble getting the new hybrid versions of its behemoth Chevrolet Tahoe and GMC Yukon out of the gate, so it has increased incentives on the vehicles.

Small is Beautiful

In the meantime, more and more Americans are investigating other fuel-efficient alternatives. In an introduction long anticiapted by owner and importer Mercedes-Benz, U.S. sales of tiny Smart cars began in January and reached nearly 2,700 units in May. About 30,000 people have paid deposits of $99 apiece for "reservations" to purchase a Smart ForTtwo at sticker prices ranging from $11,590 to $16,590.

And while Smart USA declined to release its own sales analysis or projections, spokesman Ken Kettenbeil said that "there has been an uptick in reservations attributed to gas prices." He noted that a solid endorsement of the front and side crashworthiness of Smartfortwo by the Insurance Institute for Highway Safety, last month, also has boosted consumer interest.

And while U.S. consumers continue to wait for the next major breakthroughs in electric powertrains, such as the Chevrolet Volt plug-in hybrid scheduled to debut next year, sales of the few available all-electric cars have been ticking up as well.

Sales of Global Electric Motorcars (GEM) vehicles have increased from 10 percent to 25 percent over the last year - spiking over the past two months, said the Fargo, N.D.-based unit of Chrysler. The company also has experienced a ten-fold increase in consumer inquiries about GEMs. About 36,000 of the Neighborhood Electric Vehicles -- which have short ranges and are intended only for light use -- already are on the road.

Fuel-price increases have been so dramatic that more Americans are drastically re-evaluating their vehicle-ownership requirements in light of their needs for driving to work, school, for recreation and errands. That's why Marcia Goodrich decided to plop down $2,300 for a Yamaha C3 scooter last month.

"I thought it was becoming goofy to drag around two tons of steel just to run up the hill to get a bag of cat food at the supermarket," said Goodrich, a writer for the communications staff of Michigan Technological University, in Houghton, Mich. "Plus, I work at a university that talks about the importance of preserving the environment. Both of those things had been preying on my mind."

So Goodrich now leaves her 1999 Buick LeSabre in the garage far more often - though it gets about 27 mpg on the highway - and hops onto her scooter, which eats up 60 mpg. It's got a one-gallon gasoline tank and enough enclosed storage to tote a bag of groceries, plenty of each kind of capacity for Goodrich as she commutes to work and just tools around the town of 12,000 people in Michigan's Upper Peninsula.

"I've thought about this for a long time," says the 56-year-old. "But I didn't have the financial motivation until now."

Escape Hatches

A desperation to get out from under increasingly onerous responsibilities for gas-hogging large SUVs and pickup trucks also is driving more and more Americans to try to get out of their leases. Of consumers registering to swap leases on Leasetrader.com, 24 percent more than a year ago are motivated by a desire to downsize, said the Miami-based company, which surveys each registrant about such factors.

"It used to be, 'I want a new model, I want something else,'" said Sergio Stiberman, Leasetrader.com's chief executive officer. "Now it's become a need to downsize."

Desire to downsize is the highest in the four years that Leasetrader.com has been tracking customer motives, Stiberman said. The company now is trying to get a handle on how many would-be lease swappers also are motivated by general economic distress brought on by falling house values, employment pressures and other factors.

Financial desperation typically is the motive for car owners who really push the envelope - by destroying their vehicles, pretending they were stolen and burned by the thief, and then attempting to defraud their insurance companies into paying up. There are no statistics available breaking these crimes down by vehicle segment, but "we're seeing an uptick in news reports about SUVs being torched," said James Quiggle, director of communications for the Coalition Against Insurance Fraud, in Washington, D.C.

"These vehicles have outlived their usefulness as luxury items and are too expensive to maintain, so more people are looking for a quick way out," Quiggle added. "They're trying to get out from under burdensome payments and free up that money to either pay off debt or buy a less expensive car."

A Discussion in Wisconsin

Clearly, the image of the large American SUV has come in for unprecedented battering lately. The vehicles, of course, increasingly are perceived as badges of excessive consumption at a time of rising overall economic hardship and as senselessly fuel-inefficient monsters as gasoline prices are spiking - and concerns about climate change are mounting.

It wasn't too long ago that SUV ownership remained firmly in the mainstream as legions of tree-huggers assailed it. But no more. The standoff has ended; the tipping point has been passed; the battle has been won by the anti-SUV forces -- and owning and driving one of the behemoths has become not just a reason for social stigma but for outright opprobrium. Even GM is trying to get away from SUVs.

Illustrative of the angst this is causing consumers is a string of responses to a recent question posed online by the Milwaukee Journal-Sentinel. "What to do with your SUV?" the newspaper asked online readers early this month.

It was right about the time that GM was announcing the closure of an SUV-assembly plant in Janesville, in southern Wisconsin. But there were lots of feelings of justifiable contempt of SUVs expressed by green-leaning consumers who were happy to see SUV owners finally get some sort of comeuppance. And many recent car buyers told of their concessions to fuel economy in their transactions.

"Retribution is occurring," said one typical commenter, a Milwaukeean named Jonathan. "I knew 10 years ago that this was a trend [that] would end badly. I tried not to get upset with so many single drivers of massive SUVs, but it was difficult at times."

Nevertheless, many participants in the newspaper's chat remained unapologetic and even defiant about continued plans to drive and own an SUV. Tricia Dooley, of Jackson, Wis., noted that "the only vehicle that has enough power to pull [the family travel trailer] is our SUV, so we will be keeping it. In between camping trips, though, we will be driving less."

Another, Tom Gaumond of Milwaukee, asked: "Is there really a choice for people who have families? I need to haul kids, pets and all of their related material and a small sedan doesn't cut it. I am driving my SUV regardless of gas prices."

Different This Time?

Given the dramatic fall-off in trade-in values of large SUVs and pickup trucks, there also are increasing economic incentives for keeping them rather than paying rising prices for new, smaller, more fuel-efficient vehicles. Driving a large SUV for another year almost certainly will cost a consumer less than the financial hit he or she would sustain from trading it in right now even for a small car.

If a consumer has owned a vehicle for three years or less and hasn't paid off the loan, "it often doesn't pay to downsize," said Consumer Reports, "even if the new car's fuel economy is much better." The magazine recommended that consumers hold onto their cars at least four or five years, typically, to minimize the financial impact of depreciation and finance charges.

Indeed, Merrihew, the consultant with TNS Automotive, purported that American consumers and the auto industry face considerable danger over the long term from over-reacting to gasoline-price increases in the short term. "This is the same industry that said, in 1973, that [higher gas prices] were a permanent change, and big cars are done. Then, suddenly, SUVs were the new big cars."

In any event, there clearly is an epochal feel in the air for many Americans, this time around. Maybe it has to do with the combination of climate-change concern and shockingly high gasoline prices. More businesses and local governments are cutting back to four-day work weeks with employees working longer hours. And even mass transit seems poised for some sort of comeback.

"Why has everyone become so environmentally sensitive now?" asked Steve Hoch, of Whitefish Bay, Wis., on the Journal-Sentinel chat. Answering his own question, he said that it's because consumers "really just ... do not want to pay $4 for gas."

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GM To Review Hummer Brand

Sat, 14 Jun 2008 22:12:14 GMT

Owning a Hummer was a gas. Really

While celebrities still flaunt the gas-guzzling beasts, sales figures show the iconic monster American SUV is in decline, writes Brendan Kennedy.

By Brendan Kennedy

The Ottawa Citizen

Saturday, June 14, 2008

The rising cost of fill-ups is prompting GM to review its Hummer line 'to determine its fit within the GM portfolio.'

It emerged as a symbol of American military might in the First Gulf War as CNN beamed images of the Hummer into North American homes, toppling the enemy and rambling over rough terrain in Operation: Desert Storm.

Arnold Schwarzenegger, the Terminator himself, was one of its earliest champions. Gas cost about a buck a gallon in the United States. That was nearly 20 years ago.

Today, the Hummer faces a very different setting: The U.S. is back in Iraq, this time stuck in a seemingly intractable war; Mr. Schwarzenegger is the governor of the state with the most stringent fuel-efficiency standards in North America, and gas prices have risen to more than $4 U.S. a gallon.

Although celebrities such as soccer star David Beckham, hip-hop artist 50 Cent and Ottawa Senators goaltender Ray Emery still proudly boast of their gas-guzzling beasts, sales figures show the Hummer is clearly in decline.

And a recent announcement by General Motors suggests its future with the company is in doubt.

General Motors said it would be reviewing the Hummer brand "to determine its fit within the GM portfolio."

At the same time, GM announced the closure of four of its SUV- and truck-producing plants -- including its Canadian plant in Oshawa, Ont. -- noting the company's shift in focus to smaller vehicles.

The downsizing trend has also made its way to Canada.

In the last four months, Canada's Leasebusters.com has found a 25- to 26-per-cent increase in the number of people looking to get out of their large vehicle leases, which includes all full-size pickup trucks and sport-utility vehicles. That number climbs to 30 per cent if you include mid-sized trucks and SUVs.

President and general manager Jim Matthews said more people are being reactive to gas prices and considering smaller vehicles, and that cash incentives are now usually required to entice people to take on a large-vehicle lease.

"The worst of it is that there's no stabilization in sight," he said.

But the Hummer has always been more than just a big SUV. It's an iconic symbol of U.S. affluence and excess, of its hyper-masculine, chest-beating bravado.

Recently, the U.S. has suffered the mortgage crisis, a shrinking economy and a declining dollar; is the death of the Hummer next?

Professor Daniel Howard, chair of the marketing department at the Southern Methodist University's Cox School of Business in Dallas, Texas, thinks so.

Mr. Howard said GM's announcement signifies the end of an era.

"The Hummer represented the gas-guzzling fast lane life of many affluent enthusiasts," he said. "It is a sobering reminder the automotive world Americans once knew and took for granted is rapidly coming to an end."

The Hummer's possible death is a signal of the restructuring of the North American automotive industry, he said.

"And it's not pretty at the moment, it's not pretty at all."

Chief executive officer and founder of the Florida-based LeaseTrader.com, Sergio Stiberman, said his company has seen a 24-per-cent increase in the last 12 months in the number of people trying to downsize their vehicles, looking to escape their large SUVs in exchange for much smaller cars.

"The economy is not what it once was," Mr. Stiberman said. "And you also have the housing issue. Everybody finances their vehicle, so the vehicle becomes the largest expense in a household second to the house or the mortgage."

Stats from Autotrader.com also show that fewer people are doing searches on Hummer H3s (the smallest and most commercially viable of the Hummer brand) since 2005, and the number of homeless H3s stuck in the lot has been steadily climbing.

The Hummer dealership in Ottawa wouldn't speak to the Citizen about its sales figures for the brand, but Scott Cook, general sales manager at the Hummer dealership in Saskatoon, said he has definitely noticed a downward trend in sales for his larger vehicles, particularly Hummers.

"You bet," he said, when asked if he felt the Canadian auto industry was following the trends in the U.S. But Hummer dealers in booming Alberta said their sales are steady.

George Hoffer is professor of Automotive Economics at Virginia Commonwealth University in Richmond, Virginia.

Mr. Hoffer said the Hummer shouldn't be looked at in isolation, but instead as the ultimate expression and climax of the SUV.

"Every 10 years we've had a car that was designed to make someone look good," he said. "The one that took hold in the mid-'90s was the SUV and the personal pickup truck."

He calls the Hummer the "last swan" of this "bubble" vehicle, a name Mr. Hoffer has used to describe status vehicles meant for conspicuous consumption.

"The SUV was really nothing more than the sixth or seventh bubble vehicle the American auto industry has had since the late '50s."

He said the U.S. auto industry has been so reluctant to abandon the SUV because they have been so profitable. Since the SUV became such a powerful status symbol, Mr. Hoffer said, manufacturers were able to charge a high premium. Since the profit margin was so large, they could also comfortably give out massive incentives to the dealers, which were then passed on to consumers.

"(Consumer interest) was waning, but there was such a profit margin in these vehicles that for two years, despite high gas prices, the industry could keep sales up by throwing thousands of dollars on the hoods of these vehicles and make them compelling buys, which they were," he said.

But as Mr. Hoffer states, "An attractive vehicle even a year ago is no longer attractive at $4 a gallon."

Representatives of GM Canada declined to be interviewed for this story, but stated in an e-mailed response that the decision to review the Hummer brand is part of GM's overall strategy to "provide more fuel green options" and there was nothing to add to the company's original press release.

Marty Padgett wrote the book on Hummer. He's the author of Hummer: How the Little Truck Company Hit the Big Time, Thanks to Saddam, Schwarzenegger and GM. In the book, Mr. Padgett calls the Hummer the wheeled equivalent to the Statue of Liberty.

Mr. Padgett says it is inevitable GM would re-evaluate the Hummer.

"They're quite aggressively positioning the company as a 'green' leader," he said in an e-mail. "Hummer doesn't fit in with that at all, and Hummer sales have been falling for two or three years now."

Mr. Padgett said Hummer has always been a cult vehicle, with limited mass-market appeal.

"And when the cult is satisfied, who's left to bring into the cult?"

While true off-roaders will remain loyal, he said, expensive gas will keep Hummer from attracting new customers.

"There's a cultural shift happening, and the tide is turning against fuel-inefficient vehicles."

Mr. Padgett said GM is putting its new investment money behind the Chevy Volt Plug-in hybrid, which he says will be its "halo car" for the next decade.

Although he doesn't necessarily see this as the absolute death of the Hummer -- he stressed how expensive it can be for a company to shut down a division -- Mr. Padgett suggested that its mainstream commercial life is likely near its end.

"Only $1 (U.S.) gas could resurrect it," he said.

And Mr. Padgett dismissed the idea of the Hummer hanging around simply because of its iconic status.

"Icons have a short time in the sun," he said.

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Fuelling Up a Hummer

Here's a look at how much it costs to fill the tank (read data as follows):

Hummer model: size of fuel tank in gallons; cost to fill up based on $4 a gallon U.S.

Hummer model: size of fuel tank in litres; cost to fill up based on $1.30 a litre Cdn

H3: 23-gallon tank; $92 U.S.

H3: 87-litre tank; $113.10 Cdn

H2: 32-gallon tank; $128 U.S.

H2: 121-litre tank; $157.30 Cdn

H1: 2 fuel tanks - 28.5 gallons plus 24 gallons = 52.5 gallons; $210 U.S.

H1: 2 fuel tanks - 108 litres plus 91 litres = 199 litres; $258.70 Cdn

Fuel consumption:

L/100km (miles per gallon)

Model: City driving/

highway driving

H3: 19/14 (13/18)

H2: 21/16 (11/15)

H1: 24/16 (10/15)

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What Kind of Woman Does Your Car Attract?

Wed, 11 Jun 2008 23:45:03 GMT

What Kind of Woman Does Your Car Attract?

by Chris Sweigart on June 11, 2008

11alive.com

Single guys may want to consider what kind of women they like to attract when they buy or lease their next car.

Dating coach DeAnna Lorraine and LeaseTrader.com teamed up to give insight on what women think about the personality of a man based on the car he drives.

"A man's car reveals a lot about his personality and values, and may determine a woman's attraction toward him," Lorraine said in a news release from LeaseTrader.com.

LeaseTrader.com shared with Lorraine the five most popular leased vehicles men drive, the news release said. Lorraine identified the following personality traits for each of those cars:

Chevy Suburban: These men like travel, adventure and spending time with friends and family. These vehicles attract women that are family-oriented, down-to-earth and easy-going.

Mercedes S-Class: These men are classy, successful, stylish and "Sugar Daddies." These vehicles attract women that are in their late 30s and 40s, sophisticated, and enjoy being taken care of.

Ford F-150: These men tend to be insecure and overcompensate on a tough, macho level. These vehicles attract women that prefer to be protected by a man so they can feel safe.

Toyota Camry: These men are solid, reliable and committed. These vehicles attract women that are sweet, level-headed, uncomplicated and undemanding.

Ladies, what kind of car does your man, or the man you want, drive and what does it say about him?

Guys what kind of car do you drive and what does it say about you?

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Customers Decide to Not Car Shop

Tue, 03 Jun 2008 19:38:05 GMT

Rebate Check! What R U doing?

by David Migoya on June 2, 2008

Denver Post

As you might have seen in a previous posting I’ve falled into line with the high-tech movement and purchased a (small) HDTV with fund from our rebate check.

It’s opened my eyes to the nonsensical nickle-and-diming the television/satellite industry does to lure us into the better-sharper-crisper game.

Still, I found it less a surprise that in this rebate-driven market that those who are considering spending their new-found wealth are not likely to do it on a new vehicle.

With gasoline prices hitting the tank — how’s that for a bad play on words? — it’s no wonder, either. Unless it’s a hybrid or a much smaller vehicle, chances of a new-car purchase aren’t very good.

What amused me more, though, wasn’t so much the revelation that 81 percent of all car shoppers aren’t likely to use their rebate funds on a new car, but that the information was coming from LeaseTrader.com.

It seems almost self-serving that a business that’s dedicated to automotive leases would release a study saying people they polled — customers, you think? — were more likely to lease a vehicle for 12 or 18 months rather than grab a 60-month purchase agreement.

Still, there is some useful information to be had in this study: “a majority of people that shop LeaseTrader.com are looking to assume someone else’s lease so they can avoid paying a down payment as well as a lengthy vehicle lease term.”

Hmmm. I kind of like that thought. Pick up a lease on a newer vehicle (most began new) that its current holder can’t afford. Save your rebate check, or a good portion of it, and get into a lease that isn’t so long or in need of a hefty down payment.

For what it’s worth, it might be time well spent to take a look.

Do so at www.LeaseTrader.com or call 800-770-0207.

More to the point, I’m curious what others are doing with their rebate funds. A new TV? A car? A night out or a cruise? Savings? Bills?

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How To Avoid Repossession

Wed, 28 May 2008 19:42:25 GMT

How To Avoid Losing Your House

05/28/2008, Illinois Daily Journal

Jean Chatzky

I know from experience that if one person has a question or problem, there are thousands more behind the scenes who are struggling with a similar situation. And I'm not the least bit surprised: The stock market is up, then way down. Gas prices are soaring. We're now hearing that food prices are on the rise. Add all of these together and you've got a lot of people who are concerned about their bottom line. So I like to dole out the answers and tips in this space whenever possible.

Q: We purchased our first home in 2006. We were in a subprime loan, and our mortgage was $4,500 a month. Needless to say, we were not able to pay our house taxes. A few months ago, our new lender refinanced us at a lower rate so we were able to keep our home, but we still owe thousands of dollars in property taxes. Are we going to now lose it because we haven't paid? -- Charlie, San Francisco, Calif.

A: The first thing you need to do is call your local tax office, because chances are, they'll be willing to work out a payment plan with you. The caveat? "They usually want this year's taxes paid before next year's come due," says Gail Cunningham, senior director of public relations for the National Foundation for Credit Counseling. To get an idea of what your monthly bill might be, you can split the amount you owe over the number of months you have before next year's due date. If it comes out to be more than you can swing, you need to consider finding another source of income, either by moonlighting or working overtime. Filter all the extra money toward your tax bill, and then start planning ahead for next year so you don't start the cycle all over again.

Q: I make good money, but due to the rising costs of gas, food and everyday goods, things are tight. I'd like to get rid of one of our vehicles, but it's a lease. What should I do? -- Jennifer, Tulsa, Okla.

A: I'm hearing this again and again these days, especially from people who bought or leased SUVs and are now regretting it because of the absurd amount they're paying for gas. Luckily, you do have some options. The first is to go back to the dealer and explain the situation to see if you can strike a deal that will cost you less than your original payments, preserve your credit and get you out of the car. It will, however, likely cost you something, which is why I like the second option better: swap the lease.

In this scenario, you use a lease transfer program to find someone else to take over your Car Lease. These companies are like the match.com of car leases -- they'll put you in touch with someone who's looking for a short-term lease, then work with you to make an official transfer of the contract. They also screen applicants to make sure their credit and income are sufficient, which takes a load off your shoulders, although John Sternal, a spokesperson for LeaseTrader, tells me that once the contract is transferred, you're not liable for any defaults. There's also no black mark on your credit from the transfer, and it's relatively inexpensive. LeaseTrader charges $79 to post your vehicle online and about $150 to do the transfer.

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