Could Rising Gas Prices Actually Drive New Car Sales?

I am reminded a daily basis of the seemingly dismal outlook on the economic landscape - home foreclosures on the rise again, Florida’s state unemployment at 9.9%, the volatility of the stock market…these factors seem to underscore the message that new large ticket purchases such as a new car may not prudent at this point.

Add to that the fact that I have a 6 year old SUV that is paid in full, in pretty good condition, and a vehicle that I truly enjoy driving, and I was both resigned and perfectly content with the idea that I would be one of the growing numbers of Americans that will be hanging on to their aging car for longer than I normally would.  That is, until recently…well actually just last night, when my weekly stop to fill up my 2006 Mitsubishi Endeavor, set me back $82.46; an increase of over $9 per week in just the past month and up more than $15 per week since the beginning of the year.

With my debit card still reeling, I headed home to sharpen my pencil (actually, I found an app for it) and attempted to get my brain around what long term effect this added expense was going to have on my budget. 

According to GasBuddy.com’s Automobile Fuel Efficiency Calculator, the additional 125k miles that I was hoping to get out of my beloved Mitsubishi, at a projected (yet, I fear realistic) gas cost of $4.25 per gallon will set me back a cool $37,946. (Pause here for audible gasp.)

In an attemptto put this into a clearer perspective, I grabbed a brochure for the Chrysler 200 (which my husband has become quite enamored with of late) that was handily laying on the coffee table and did the calculation for the same 125k miles based on its 29 MPG rating. The result? The fuel cost on that same 125k miles would be $18,315; a savings of $19,630. My conclusion? With an MSRP of $18,995 on the Chrysler 200 LX, it might be time to rethink holding on to Old Reliable and head out this weekend to take a test drive. 

Things That Make You Go Hmmm: Presidents’ Day & Car Sales

by The Greenway Girl 

History.com tells us that Presidents’ Day is “…celebrated each year on the third Monday in February, [and] is a day when Americans honor the legacies of the U.S. presidents.”

Established in 1800, when Congress declared February 22–George Washington’s birthday–a federal holiday. Although still legally known as Washington’s Birthday, Presidents’ Day has become a day to honor not only Washington, but Abraham Lincoln, the 16th U.S. president who was born on February 12,  and the lives and accomplishments of all U.S. presidents.

Now maybe I’m alone on this one but I have to admit that I’ve always been more than a little fuzzy on how the seemingly random mash-up of this federal holiday and car sales became forever coupled together. Boston Globe correspondent, Peter DeMarco tells us how young entrepreneur, Alvan T. Fuller may have launched the time-honored tradition of the Presidents’ Day Car Sale. 

Alvan T. Fuller (front, right) is often credited with starting the Washingtons Birthday tradition of car sales.

“The idea, according to many, was the brainchild of Alvan T. Fuller, who was born in Charlestown [MA] and grew up in Malden. Fuller is perhaps best remembered for his tenure as Massachusetts’ 52d governor, when he refused to pardon anarchists Nicola Sacco and Bartolomeo Vanzetti before they were put to death for murder in 1927. But long before his career in politics, Fuller was just an enterprising teenager selling bicycles out of a backyard barn on Cross Street in Malden.”

    Get the story… http://bo.st/x2Ai6Q 

Peter DeMarco can be reached at demarco@globe.com. Follow him on Twitter @ whotaughtU2driv

Source: Boston.com

The FIAT 500 Abarth: Women Need Not Apply?

                                              
                                
There is no “lady-like” way to put this, so I’m just going to say it…

I am SO OVER the collective North American automotive industry telling me repeatedly that the FIAT 500 Abarth is not for us girls…it’s for the guys.

The Abarth, a new high-performance version of the Fiat 500 that made its U.S. debut late last year in Los Angeles is set to be available at the end of March. And for the past three months I have become increasingly obsessed with every image, news story and blog post released on FIAT USA’s newest addition to its lineup. 

In January, at the Chicago Auto Show, Olivier Francois, head of the Fiat brand and chief marketing officer for Fiat for Chrysler Group, spoke about the company’s decision to feature Jennifer Lopez in their ad campaign for the FIAT 500 Gucci Special Edition, telling the media “Jennifer was for feminine buyers. Abarth is the attraction for masculine buyers”.  Are you KIDDING me???

This probably isn’t going to go over well at the office but I will argue that Mr. Francois, as well as all of the major automotive blogs (penned by men) sparked this debate. So, as a woman in this industry, I’m just making one female opinion known. 

I’ve said it before; I am an unabashed girly-girl. I live for fashion and would practically put my life on the line if anyone ever threatened my shoe collection. But industry executives seem to have it in their heads that a woman that appreciates style can’t also appreciate performance. Once the owner of a 1994 Jaguar XJS V12 Convertible, not only can I appreciate performance, I demand it. And with the base MSRP of the Abarth nearly $1,500 lower than the Gucci Special Edition, it’s a no brainer.  

If I may offer a bit of insight to my male counterparts in this industry about the female psyche - I don’t know a single woman that was influenced to purchase the FIAT 500 Gucci Edition because of the J-Lo commercials.

As long as we are on the subject of commercials, one can hardly bring up the Abarth in conversation without addressing the head-turning and somewhat controversial ad that was actually released at the same time as the J-Lo commercials but until the Super Bowl, was not aired on TV. Again, industry media outlets including Autoweek and Ward’s Automotive stated that “Women were shocked and offended”.  Thank you for letting me know how I am supposed to feel…NOT!  

Truth be told, I thought the commercial was brilliant. Yes, it was extremely sexy but I didn’t see it as sexist. The difference? A beautiful woman that has the confidence and moxie to call a guy on his stuff. 

Don’t get me wrong, I understand wanting to appeal to a wider audience. However, given the fact that statistics show that over 80% of car buying decisions are affected by women, maybe the “industry experts” should throw out the marketing brief on this one and take a bit of advice? First, recognize that in today’s age of social media, brands are no longer created by a company alone, but rather, co-created with consumer opinion. Second, embrace the fact the fact that the Abarth has appeal for both sexes and that women are savvy enough to recognize and choose substance over insignia. And finally, stop trying to push female car culture back a couple of decades. 

This blog is the sole responsibility of its author. All content posted is purely of personal opinion of the author, based on current news stories in the public domain.

Monday Money Minute: Ballin' on a Budget

The Frugalosopher

Known most of her life as simply “the cheap one,” Cassandra Gardner has spent a lifetime making a dollar out of fifteen cents.

Today, as a professional frugalosopher, she spends her time showing others how to save money and live well while doing it.

As much as I love to cook, I also love to eat out. For some reason, food just always tastes better when you aren’t the one who prepared it. My son is always pestering me to make him sandwiches and when I point out that since he is twelve years old now he can now make them himself, he always explains that they just taste better when I make them. Yes, I’m a sucker, I know. Anyway, I love to eat out, but I hate to spend a lot of money to eat out. This does not mean that I am limited to McDonald’s for my culinary outings…

 I very rarely eat out anywhere without a coupon. When I say very rarely, I mean that I must be eating with someone who hates every restaurant for which I have a coupon. As soon as someone asks me to go out to eat, I run for the coupon stash. There are always great coupons available. The Sunday paper always has coupons for restaurants. Check your mailbox too. The mailers that most people just throw away are filled with coupons for local restaurants. Also, there are always coupons books that are free that are usually available at gas stations, laundromats, nail salons, etc.

If all else fails, check Restaurant.com. There are many offerings on that site and you can often score $25 certificates for $10. Just make sure that you read the fine print. Sometimes they are only good for dinner, or you have to spend a minimum. Watch your e-mails for Groupon and Living Social deals. There are frequently coupons for restaurants that I have been wanting to try. Sign up for the restaurant e-clubs too. They send out coupons all the time.

Buy one get one coupons are my favorite, but 20% off coupons are great too! Sometimes it will just be a free appetizer, but whatever it is, you just saved money! Don’t forget to tip your server based upon the pre-discounted total. That was a huge pet peeve of mine when I was a server!

Where do you get your restaurant coupons?

Source: frugalosopher.com

Taking my Car in for Service…Why Should I Check in on Facebook?

How many of those little loyalty cards do you have on your key ring? Four? Five? Six? Let’s see…the grocery, the pharmacy, the wholesale club, the bookstore; your favorite cosmetics store. Even most car dealerships’ service centers understand and have rolled out a loyalty program for their customers. And for those of us that are interested in saving, we know that there is value in using these cards.

Enter Facebook Check In… While this feature has been available for a while, it was met with with a lukewarm reception at best. Some people always check inEVERYWHERE (and I do mean everywhere).  For instance, I have a friend that Checks In pretty much without fail, wherever she goes. (jokingly, even a couple of times, at home). I, however, am not nearly as vigilent about it. Even as someone in marketing, I understand the importance of having people check in at your business, but as a consumer I couldn’t help but wonder…yep, I’m gonna just put it out there…”What’s in it for me?”

Then I got my answer.  At the end of last year, Facebook introduced Check In Deals. This feature allows Facebook Business Pages to offer a deal to their customers who check in on Facebook upon arrival at their business. 

When this became available, I though it would be a great idea for my employer Greenway Dodge to start offering Check In Deals in our Service Department. Given Facebook’s huge consumer base, the average shopper is more likely to have Facebook on his or her smartphone than a competing location-based service like Foursquare or Gowalla.

The program got off to a somewhat slow start which I can only attribute to people still struggling with the whole Checking in concept
 combined with a lack of understanding about how the Check In / Check In Deals process works. 

So here is a quick example:

1. Go to Greenway Dodge Chrysler Jeep Service to get your car serviced. 

2. While the Service Advisor is checking your car in, pull out your smartphone and
    Check In on Facebook. 

    Now there’s that question ”Why should I Check In on Facebook?” What if I don’t
    want everyone to know where I am? What if I don’t want the company to have
    my contact information? 

    These are common questions that we run across when trying to promote a
    Facebook Check In Deal to our customers. So let me see if I can dispell a few
    myths. 

    First, when you Check In on Facebook, only those friends that you have
    indicated on your profile will be able to see where you are. This is a setting that
    you have complete control over.

    Second, unlike loyalty cards of the past, there is no exchange of your personal
    information to the business when you check in - not even your name. For that
    reason, it is very important that you pay attention when you check in to see if
    there is a current Check In Deal at that location and let business know if, after
    checking in, Facebook notifies you that you are eligible to claim the deal.
    Remember, because the business is not given your information, they cannot
    remind you. 

3. Back to the Check In… Once you locate the Place that you would like to check
    in, before selecting it, stop and take a look…is there a yellow rectangle to the
    right of the Company’s name and address? This indcates that they are running a
    current Facebook Check In Deal.  

4. Select the place, and then you will be asked if you want to add any additional
    friends that might be with you and a comment. Finally, select “Post”.

    You will then see a screen detailing the Check In Deal that you are elegible to
    claim. You will need to present this screen to a sales associate, manager, or
    here at Greenway Dodge Chrysler Jeep Service, you will present it to your
    Service Advisor.

Generally, Check In deals amount to things like free chips at Chilis, although JetBlue travelers receive 25 TrueBlue points every time they check in to an official JetBlue airport location (100 points in Orlando) which can then be added to their miles and used for free travel in the future. 

At Greenway Dodge Chrysler Jeep Service, our standard Facebook Check in is 10% off Service. Which doesn’t seem like alot but here’s a HOT tip… Check our website for Service Special Coupons before you come in. Where most businesses will not let you combine offers, in most cases we encourage it!

Back to Greenway…

So are you headed in for our $29.95 Oil Change and Tire Rotation Valentines Special? 

Get the coupon from our website, while on the Specials page, you can go to the top and select the link to go ahead and schedule your service. 

Finally, on the day that you arrive for your service, let your Service Advisor know that you are here to take advantage of our already excellent Valentines Day special and, oh by the way, since you just checked in…take another 10% off! 

Then you can sit back in our nice comfortable Service Lounge and use your smartphone for something really smart - like a game or two of Angry Birds!

What do you think?

Would you be more likely to participate in these loyalty programs now?