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Profit-Taking Pulls Oil Back From $103

NEW YORK -- Oil futures retreated from a new overnight record above $103 as the dollar gained strength and Turkish forces withdrew from northern Iraq, removing two of the reasons underpinning crude's dramatic 19 percent rise from earlier this month, according to the Associated Press.

But many analysts believe the declines may be temporary, and that oil is poised to rise above $103.76 a barrel. That's the price many believe to be oil's all-time high on an inflation-adjusted basis, set in early 1980 during the Iranian hostage crisis.

Posted by Peter C. T. Elsworth  at 12:52 PM to Crude oil market | Permalink | Comments 0

Backseat Driver: Detroit should bring its small cars and vans over from Europe

Europe is awash with small, fuel efficient cars and vans, many of which are powered by clean diesel engines – it’s even an option for the Ford Focus. Many carry American brand names and it’s about time Detroit shared the wealth with us over here.

Ford has a fabulous range of vehicles. Its Transit Connect, which is a funky little cargo van built in Turkey, was a big hit at the Chicago Auto Show, and it is expected to import its Fiesta model in the near future, although in sedan mode only.

Ford currently offers its Focus brand in only two models in the U.S. – the 2-door coupe and 4-door sedan. In Europe it continues to market its highly successful 5-door hatchback. And it has also introduced its New Ford Focus, a makeover that includes a nifty station wagon/hatchback.

General Motors, which operates in Europe under the Opel (Germany) and Vauxhall (Britain) brand names, also designs and builds a wide range of vehicles around the world. It is bringing over its Astra and Vectra models through its Saturn division, but why it does not bring over its successful Corsa subcompact beats me.

Chrysler markets its Dodge Caliber in Europe, but offers a turbo-diesel version, and its Dodge Sprinter van might be a candidate to come to these shores.

While gasoline prices in the United States remain well below European levels, with crude oil recently rolling over the $100 a barrel mark and gas prices possibly reaching $4 a gallon in the spring, the appetite for small, fuel efficient cars can only increase.

Posted by Peter C. T. Elsworth  at 12:31 PM to commentary | Permalink | Comments 0

Less Can Cost More, Says Consumer Reports

Sometimes a bargain isn’t. A car that may look inexpensive, up front, just might wind up costing you more in the long-run, warns Consumer Reports magazine, in its Annual April Auto Issue, reports thecarconnection.com

Once you add in factors like maintenance, fuel costs, insurance, interest and depreciation, the actual cost of ownership can be significantly different than what many car buyers would expect. The magazine notes that with its $17,500 sticker price, a Mitsubishi Lancer is a whopping $5,000 less than the smaller Mini Cooper — at least when you first drive it home. But over the typical, five-year ownership cycle, the equation looks quite a bit different. When you add in repairs and other factors, the Mitsubishi actually will cost about $3,000 more, Consumer Reports calculates.

Toyotas score quite well, according to the magazine. While the Highlander SUV is $3,000 more, initially, than a comparable Ford Explorer, the Japanese SUV will save an owner $6,500 over the long-run. And lower fuel costs are one of the main reasons why the Prius hybrid will save an owner $2,000, after five years, versus a Chevrolet Cobalt, even though the sticker price of the Chevy is $7,500 less.

But one big surprise comes from the luxury side of the Toyota line-up. Its Lexus brand has relatively high maintenance costs, so over that same, five-year cycle, an ES350 will rack up a full $2,300 more in repair costs than a Lincoln MKZ.

Posted by Peter C. T. Elsworth  at 11:44 AM to Sales | Permalink | Comments 0

The Best And Worst Certified Used Cars

Think about a used car and you might think junky, dirty and old. But another market is catching the attention of savvy buyers who want updated rides without paying new-car prices, according to forbes.com.

These certified used or certified "pre-owned" (CPO) vehicles have been inspected and refurbished by the manufacturer and are backed by extended warranties. The certified used car market isn't one that automakers can afford to ignore.

According to a recent J.D. Power and Associates study, sales of certified used cars have increased 46% since 2000. Auto experts estimate that 1.6 million certified used cars are sold annually, a number equivalent to 10% of new vehicle sales.

This rapid growth started when the segment emerged in the 1990s. Luxury automakers like Mercedes-Benz, BMW and Lexus, looking for ways to unload vehicles coming off lease programs, introduced the certified pre-owned programs as a way to attract the discerning buyer who wanted a luxury car but didn't want to shell out the big bucks.

Other luxury and non-luxury automakers who found themselves in similar situations began offering their versions of these programs.

Posted by Peter C. T. Elsworth  at 11:31 AM to Sales | Permalink | Comments 0