Jeep Patriot image from Flickr.

The Insurance Institute for Highway Safety has come out with its annual list of Top Safety Picks. Eight SUVs and 19 cars have been given Top Safety Pick awards for 2010. People who want to make sure they’re getting the safest cars before filling out a personal loan application for a car loan should definitely check out this list.

The Insurance Institute for Highway Safety named six vehicles made by Ford, which makes Volvos, Top Safety Picks. Subaru and Volkswagen each had five vehicles named on the list. The Institute picked four Chrysler vehicles.

The Insurance Institute for Highway Safety

For 50 years, Insurance Institute for Highway Safety has operated for the purpose of reducing automobile accidents and injuries. The Institute is a non-profit organization that gets its funding from insurance companies. Each year, four tests are conducted to determine the Top Safety Picks:

1. Frontal offset impact test
2. Side impact test
3. Rear crash protection and head restraint ratings
4. Roof strength test

The Insurance Institute for Highway Safety also rates child booster seats for cars and other consumer products. Of course, the Insurance Institute for Highway Safety has been accused in the past of serving the interests of the insurance companies rather than the public, which is why vehicle testing is highly regulated. It has also come under scrutiny for being unfairly hard on motorcycles, but who are we kidding? Motorcycles are not known for their safety features.

New safety requirements

The New York Times noted that there were some major changes in the Insurance Institute for Highway Safety’s list. For instance, last year 94 vehicles were named on the Top Safety Picks list, and this year there were only 27. Furthermore, Toyota and it subsidiaries last year earned a total of 11 Top Safety Picks awards, and this year the company, which includes the Lexus and Scion brands, got none at all.

In order to make the Insurance Institute for Highway Safety’s Top Safety Picks list this year, vehicles had to get a rating of “good” on the roof strength test, which measures rollover protection, was required in order to make the list. “Good” is the highest rating. This change caused Toyota vehicles to be shut out, the length of the list to be reduced dramatically and the Honda Accord to be left off the list after it made the 2008 and 2009 lists.

Auto industry impact

Naturally, safety ratings play a big part for many consumers when they are considering vehicle purchases. After a couple of tumultuous years in the auto industry, the stellar safety ratings for Ford should help the company stay afloat while we ride out the rest of the recession.

Chrysler should be particularly encouraged by its four wins after it had to file for bankruptcy protection this year. Sales of the four vehicles that made the list should help stabilize the company. Those four vehicles are:

• Chrysler Sebring 4-door with electronic stability control
• Dodge Avenger with electronic stability control
• Dodge Journey
• Jeep Patriot with side torso air bags

Check out the full list of vehicles that made the Insurance Institute for Highway Safety’s list in the New York Times’ Wheels column.

Credit cards should be used carefully. However, if you need a car, the incentives available now could make using a credit card to buy a car feasible. (Photo: picasaweb.google.com)

If consumers are in the need of a car, this may be the right time to use credit cards to do it. Most dealerships have huge inventories and no way to get rid of them. The recession has put auto dealers in difficult positions, since most Americans are in no hurry to invest in big-ticket items. That’s great news for consumers who are looking to make an auto purchase. Potential savings on a car are substantially greater and selections are huge. Most auto dealers are making generous deals, with cash-back options and low financing rates. Cars that once were marked up are now being marketed at well below the sticker price, and sometimes even lower than the dealer’s cost.

Scott Painter, CEO of TrueCar, said, “There’s no question that you should get a screaming deal… the slump in sales resulted in discounts so steep that new cars can sometimes be less expensive than comparable used ones.” According to research done by TrueCar, last year dealers sold approximately 21 percent of 2009 models for less that dealer price. This year, that number is up to 25 percent already.

Dealerships Feeling the Pain

Adding to the auto industry climate is the rapid closings of many dealerships. In 2008 there were 1,200 closing dealers, this year GM Corp alone is planning on closing 1,200 to 1,500 franchises. These closings have helped turn the industry upside down. For example, at one time the Range Rover was a high-quality luxury vehicle. Now, there are fleets of the vehicles available with $12,000 cash-back on purchases. This isn’t the only vehicle with this kind of savings. Cadillac’s CTS sedan comes with $7,000 in incentives, while Ford’s 2010 Transit Connect vans are already coming with a $300 cash-back special.

Credit Cards: A Near Necessity

Credit cards are almost a necessity in today’s world. Many people use credit cards for everything from everyday purchases to big-ticket necessities. Although the recession has taken its toll on the credit and lending industry, companies are trying to right their wrongs and help customers make purchases. Recently, the federal government has stepped into the credit card mess, citing unscrupulous activities and demanding changes. Credit card companies understand how bad they look in the eyes of the public due to their dodgy dealings. Some companies are cutting customer’s limits, but also bringing down interest rates to make payments more manageable. They want to have customers who continue to pay on their bills, rather than just file bankruptcy or abandon the accounts.

Because of this, credit cards are slowly being used once again to fund high-ticket items like cars. With the overwhelming discounts and deals available, this is a wise choice for some consumers. Lilah Branson of Nashville, Tennessee said, “I need a car and I wasn’t planning on buying on in the recession. But then I saw the deal my credit card company offered and the deal the dealership had…combined, the deals were too good to pass up.”

Things are Slowly Picking Up

Credit cards are helping people again, slowly integrating back into everyday use. No one knows the where economy will be once the recession is completely over, but consumers are steadily getting their feet wet and wading back toward normalcy.

Unionized workers at Ford voted on changes to their contract, including cutting cost-of-living increases, reducing benefits and eliminating cash bonuses.

The company says the move will help it to stay competitive. According to the UAW, 59 percent of production workers and 58 percent of skilled-trades workers voted “yes,” and the new contract passed.

No government loans

General Motors and Chrysler have both asked the government for quick loans to help their companies stay  afloat. Ford says these changes will prevent the company from having to ask the government for money as well.

“By working together with our UAW partners, we identified solutions that will help Ford reach competitive parity with foreign-owned auto manufacturers and that are important to our efforts to operate through the current economic environment without accessing a bridge loan from the U.S. government,” said UAW President Ron Gettelfinger in a written statement.

More contract details

The ratified deal ended the jobs bank program, and it now allows Ford to make payments in stock to a retirement fund. The fund will extend health benefits to retired workers.

Now the UAW must attempt to reach a deal with both Chrysler and GM.

Making an example

The deal UAW reached with Ford will serve as a guideline for deals with GM and Chrysler. In the agreements reached with the government over more than $17 billion in loans, it specifies that the companies must work out new agreements with the union.

The companies are seeking more funding from the government. In order to get it, Chrysler and GM have to bring their labor costs in down to the same level as foreign auto companies’ plants in the U.S.

Under terms of their loan agreements, progress must be made by March 31. The companies are seeking an additional $21.6 billion in government aid.

Payday loans of the gargantuan sort may or may not be enough to fix the trouble that America’s automobile industry is facing. It is no stretch of the truth to say that the automakers are responsible for the mess they’ve made, and most have been all too eager to beg at the door of big government for handouts to keep their parties of excess going.

Yet not all automakers prostrated themselves in a mock display before government. Ford, for instance, decided to gird up their loins and go it alone. And if Associated Press reports are an accurate indication, they may have found the sales light at the end of the tunnel.

Credit is available

Sales have been in a nosedive for months for Ford, which is hardly out of place in the current economic climate. However, Jim Farley, the automaker’s global marketing chief, has said that adjusted new sales demand has “held steady” since November. Used sales have come “roaring back” since January. The implication, notes Farley, is that credit, from bank loans to credit cards and cash advance,  is available for consumers.

According to the AP, U.S. new car and truck sales dropped by 37 percent in January 2009, so Ford’s optimistic outlook hasn’t caught on. However, one analyst (Erich Merkle) believes that we’ve reached a plateau. “We’re really at that crucial inflection point right now. And with all the money right now that’s being pumped into the system … I think that we’ll start to see some revival in our economy and we’ll start to see sales on a sequential basis exceed that of the first quarter,” Merkle said.

Second half of 2009?

That’s what Merkle predicts. Farley hasn’t been that specific, but he did acknowledge that February sales indicate a similar positive trend. Positive as in no continued drop, that is.

In January, Ford sales fell 40 percent in the United States, but  F-series pickups and Fusion sedans provided enough of a boost to continue their market share increase for the fourth straight month. New products like the Harley-Davidson F-150 and Transit Connect van have increased expectations, but perhaps their ace in the hole will be the much-improved 2010 Taurus. With EcoBoost technology, Ford claims the engine will combine V6 economy with V8 power.

Ford shares up; will they drive it home?

Of course, no automaker is out of the woods yet. It remains to be seen whether such gains will continue, or whether Ford will have to go to the government payday loans well like their less competent business competitors. Cash Advance Mojo wishes Ford well, and reminds you that if you find yourself in an emergency cash situation, payday loans can help until your next pay period.

Related articles

• Officially Official: 2010 Ford Taurus SHO! (autoblog.com)
• Ford Officially Looking To Sell Volvo [Carpocalypse Now] (jalopnik.com)
• Ford better positioned to ride out recession (msnbc.msn.com)

Your payday loan source admires the spirit Ford is showing.

In the aftermath of the recent automobile industry bailout, Nick Bunkley of the New York Times reports that Ford suffered their worst sales year ever in 2008. They lost $14.6 billion, yet they did not take from the federal pot of billions. Ford apparently had “sufficient liquidity to fund its business plan and product investments.” Yet when your debt ($25.8 billion) exceeds your total cash on hand ($24 billion), sufficient liquidity doesn’t spring to mind.

Sure, they may be healthier than GM or Chrysler, but can they wait until 2011 to break even or earn a profit? Not if the economy takes another major nosedive.

CEO Alan Mulally puts his company’s cards on the table: “It’s a very volatile time for all of us. But it’s not our plan at all to access the government’s money.” It was never my plan to use online payday loans when I got into difficult financial situations, but at times I have used them. I don’t regret having done so.

May the hope springs never rust

“We still feel that, with the amount of stimulus that’s going on in the U.S. market, that we’ll see some improvement in the second half of this year,” says the automaker’s CFO, Lewis Booth.

But what if it doesn’t? Does it make sense to continue to rely upon available lines of credit to make it through the first quarter? Perhaps it would be feasible if things weren’t as bad as they are. Yet Ford plans to draw $10.1 billion more from its available credit lines in the quarter.

It certainly hasn’t helped Ford that workers whose jobs had been eliminated were still receiving 72 percent of their pay via the United Automobile Workers union. New terms are currently being negotiated. Finding that compromise – helping struggling ex-employees vs. keeping the company from going belly up – is an awesome challenge. The light at the end of the tunnel is currently nowhere in sight. Your payday loan source imagines that Ford will have to accept federal aid unless President Obama’s stimulus package enacts major change in the short term.

House Approves $14 Billion Bailout

Big 3 Auto Makers Bailout

The $14 billion bailout proposal was sent to the House of Representatives tonight in order for the House to cast its vote. The bill passed 237 to 170, but a majority of the support came from the Democrats.

Only 32 Republicans voted in favor of the bailout, eight of which are from Michigan. Seven additional Republicans in favor of the bailout were also from Midwestern states that are home to automobile plants. Besides the Republicans from states directly tied to the auto manufacturers, there was little right-wing support for the measure. It’s going to take more than a couple payday loans to get this problem out of the gutter.

Checks and Balances—Senate Could Kill Bailout Measure

The House approved the bailout, but opposition from the Senate could kill the bill. It’s obvious that Democrats in the House are in strong favor of the bailout, but the majority of Republicans in the House and Senate are in strong opposition of the bailout. Republicans, along with some Democrats, in the Senate argue that the bailout will not solve the issues that plague the auto industry.

What is the Purpose of the Bailout?

A lot of media attention has been given to the auto bailout in recent times. However, the proposal keeps changing, and people are confused about the bailout’s purpose. The most current proposal is a $14 billion bailout designed for two of the three big auto makers. The $14 billion is much less than the original request, and the bailout would now help prevent only Chrysler and General Motors from going into bankruptcy. Ford Motors claims that it has enough money to stay afloat for now, while Chrysler and General Motors allege that they are merely weeks from going bankrupt.

A Temporary Solution

The bill would create a temporary remedy until the new Congress and President-elect Barack Obama can develop a more permanent solution. The bill calls for strict oversight of Chrysler and General Motors: the company executives would have pay limits and would be forced to get rid of the aircraft they used to transport to previous Congressional hearings. George Bush will also appoint a “car czar” that has the power to recall the loans within 30 days if the auto makers are not cutting their costs enough.

Bailout Is Now Up To The Senate

The fate of the auto bailout is yet to be determined. The House of Representatives and President George W. Bush have given their support, but it is now up to the Senate whether or not the measure will pass. The Republicans in the Senate believe that instead of being a temporary solution for the auto industry, the bailout is simply prolonging the inevitable—the collapse of the big three American auto makers. The future of the American auto industry relies on the Senate vote; it will take 60 Senate votes to pass.

Choose Your Own Fate

Aren’t you glad that your financial future isn’t up to someone else’s vote? If you need a financial bailout or a temporary financial solution, you are at liberty to get extra money when you need it. Payday loans can do for you what the House is hoping the bailout will do for the auto industry: give your current financial situation a little boost until you can get back on your feet.

As Americans, it is our fundamental right to have our voices heard; this includes what we have to say about the auto bailout and our access to payday loans. Americans care about the auto bailout because it has everything to do with our tax money. Budgets are tight, so Americans are extremely vigilant about where their tax dollars are being spent. Americans are also concerned about their financial freedom. Some states are eliminating access to payday loans, which in essence, is eliminating financial freedom.

Auto Bailout

The Big 3 auto companies are struggling to remain above waters

The Big 3 auto companies, GM, Ford, and Chrysler, are begging Congress for money to help them avoid bankruptcy. The Big 3 are up against more than just Congress. A recent CNN poll claims that 6 out 10 individuals are opposed to the auto bailout more than half of the people polled are not in favor of bailing out the nation’s biggest automobile companies. Opposition increased when Americans learned of the poor performances by auto executives, and the private jet they flew to get to the Congressional meetings. Opposition to the bailout can be found across the nation, including the Midwest, where the auto industry employees thousands of Americans. With such widespread disapproval it will be interesting to see which way Congress votes. What do you think about the auto bailout?

Is the Government Listening?

Many Americans have absolutely no interest in saving the country’s major auto companies, but the auto companies are desperately pleading their case. On the contrary, many Americans are interested in preserving their financial freedom, including their right to payday loans, while several politicians are trying to eliminate payday loans nationwide. There is something wrong with this picture: Americans don’t want to bailout the auto companies because they would like to see their hard earned tax dollars go towards a more legitimate cause. Yet, the government is considering granting the Big 3 their bailout wishes? And Americans want to preserve payday loans and financial freedom. Yet, the government is trying to abolish payday loans? It sounds as though the government isn’t listening.

Use Your Voice

No matter what the issue is, Americans have the right to be heard, and Americans are catching on to this. If we want something bad enough we will use our voices to get it. Take this year’s election, for example. Our country desired change, and there was a record turnout for the presidential election. Barack Obama was elected president, due in part to his promise for change. Obama will surely bring big changes to the United States, but it is unclear if those changes will positively or negatively affect Americans. Obviously, the majority of the country believes Obama will bring much needed, positive change. He wouldn’t be president otherwise. However, Obama is one of the many politicians that would like to eliminate payday loans nationwide. You used your voice to put Obama in office, now use your voice to tell your president that you want to keep your financial freedom and your access to payday loans.