AIG recently raised more than $6 billion to pay back the U.S. Treasury. Photo Credit: David Shankbone/Wikimedia Commons/CC-BY

AIG and General Motors have been making great progress in paying the United States Treasury back for the bailout loans both companies received. AIG and GM were both maligned for the huge amount of money the firms received from the government, but they are returning to solvency. AIG was the single largest bailout performed under the program.

MetLife stock sold to pay back loans from Treasury

Insurance giant AIG sold a portion of its shares in the MetLife insurance company and turned over the proceeds to the United States Treasury, according to USA Today. AIG gave up 146.8 million shares of MetLife stock, from which the company raised $6.3 billion to make payments to the United States Treasury. AIG is using the funds in the effort to repurchase the $18.2 billion the Treasury holds in preferred equity shares of AIG. The government also holds 92 percent of AIG’s common stock, which was a condition of the bailout package the insurance giant received from the Troubled Asset Relief Program, or TARP. AIG was the single largest bailout, receiving more than $182 billion in total. The bailout included the Treasury and the Federal Reserve purchasing toxic asset from the company and $68 billion in loans.

General Motors on the road to health

General Motors, another notorious bailout recipient, borrowed $49 billion from the government to stay afloat, and the company has been making huge strides toward paying it back. General Motors recently announced in an earnings report that the company had made a profit every quarter of 2010, according to Reuters. This marks the first time since 2004 that the automaker has been profitable for an entire year, and it made the largest profit since 1999. GM posted a profit of $4.7 billion for 2010, though the stock price for the company has barely moved since the initial public offering in November. The Treasury still holds 33 percent of GM stock, which is a significant reduction since November 2010, when the Treasury held 61 percent. It is projected that the GM share price will have to rise to $53 per share for the government to break even.

End result of TARP

David Miller, the chief investment officer for the Troubled Asset Relief Program, said that the cost of corporate bailouts is not likely to be more than the money allocated for the housing crisis, according to Reuters. Miller said the Congressional Budget Office estimates that TARP will cost a total of $25 billion, and the Obama administration estimates slightly more than $28 billion. Treasury Secretary Timothy Geithner has said the estimate of $25 billion may be high. Various companies still owe the government $135 billion for TARP loans.

Sources

USA Today

Reuters on General Motors

Reuters on TARP estimates

Some people think the installment loans lent in the bailouts weren't worth it, but Treasury Secretary Tim Geithner disagrees. Image from Wikimedia Commons.

In the financial crisis of the last few years, billions of dollars in installment loans to huge firms were lent in bailouts. Many have preached loudly about the waste involved and corporate favoritism. However, it may not cost as much as some think.

Rage at installment loans to big business

In 2008, the financial world was in turmoil, and the government moved to get some installment loans out to head off a collapse. Billions were lent to banks and investment houses from New York, New York, to Kansas City, Missouri, and the largest domestic auto manufacturers were given some enormous advance cash bundles to keep them afloat. Conservatives and liberals alike have raged about the bailout loans, but Treasury Secretary Timothy Geithner thinks the outrage is unfairly directed his way, according to the New York Times. Though officials, of course, don’t go out of their way to agree with their critics, he has a point.

Emergency loans could turn a profit

The emergency loans made to huge businesses could be justified. Geithner has maintained that the $25 billion estimated as losses by the Congressional Budget Office are estimates. He also has maintained losses will only come from bank loans and mortgages gone bad, but everything else will turn out. For instance, if the Treasury holds onto shares in GM and sells them over time, the loans GM received could eventually turn a profit on the long term. Citigroup, which received more than $45 billion in aid, turned a profit of more than $10 billion for the taxpayers already.

Proof will be in the pudding

Though it certainly seems ridiculous to only aid to the parties that created the economic problems in the first place when the people that have been hurt could use the help more, there may be an upside after the fact. If the profits realized from bailing out huge firms are more than the losses of bailing out Fannie and Freddie, then a rational basis for bailouts in dire straits will have appeared.

Sources

New York Times

Chevy has made another recall, this time on the Impala. CC by IFCAR/Wikimedia Commons

General Motors has begun an Impala recall. Possible seat belt defects are the cause of the 300,000 car recall. Belts may come apart in collisions because of improper mounting. There are only two affected model years. General Motors will contact owners of the affected model years.

Impalas recalled

More than 300,000 cars are going to need to be repaired by General Motors, according to the Impala recall because of the seat belt defect. There are only two affected model years of the Chevrolet Impala, according to USA Today. Owners of a Chevrolet Impala from the 2009 or 2010 model years should contact their nearest Chevrolet dealership or General Motors directly. The phone number owners can call to get information on the Impala recall is 800-630-2438. If your car is being recalled, you will be notified. Dealerships and GM will send out notices. Owners of the recalled cars won’t have to pay anything for the defective seat belt, and it is easy to fix.

Seat belt defect leads to recall

An division of General Motors is there specifically to make sure that nobody is hurt or killed before these problems are caught. CNN reports that no injuries or deaths occurred because the seat belt defect was there. The front seat belts are defective in the Chevy Impala. The problem is that the belts might not be properly anchored to the lap belt pretensioner. A crash might result in the front passengers not being securely held in. The mount and belt may separate from one another.

Routine repair makes this lucky

There started to be a lot of warranty repairs on seat belts. This caused General Motors to investigate the situation. The recall was announced just as a precaution since nine claims had come in by June 2009 and 32 had come in by August 2010. No reports were of injury or death. By the end of October, all owners should have their cars inspected.

Citations

USA Today

CNN

Ally Financial Inc. may have an IPO just like former parent company General Motors. Image from Wikimedia Commons.

In the past few weeks, there has been a lot of buzz about an upcoming GM IPO. The related company, Ally Financial Inc., is now looking at an Initial Public Offering all its own next year. Ally Financial used to be GMAC, or General Motors Acceptance Corporation, the loan company formerly part of General Motors. GMAC used to deal only in auto loans, but branched out into other ventures including mortgages. GMAC had to ask for emergency loans from the TARP program, and had to become an actual bank to get bailout funding.

Ally Financial starts posting profits

Ally Financial Inc. is the re-branding of GMAC, or General Motors Acceptance Corporation. GMAC was previously the division of banking and loan lenders for General Motors. GMAC took care of in-house auto loans, but also delved into real estate and other ventures. In the second quarter of 2010, Ally posted a profit of $565 million, according to Reuters. First quarter saw a profit of $162 million; the first profit Ally or GMAC had posted since 2008. This was largely thanks to the company getting some debt settlement relief from mortgage holdings.The company may file for an IPO next year.

Bank formerly known as GMAC

Ally Financial Inc., is technically a holding company with many divisions. The company was previously known as GMAC, which was entirely owned by GM until 2006. GM needed a quick payday and sold its banking and finance wing to investors. GMAC needed some quick loans as its loan portfolio and investments went toxic and was bailed out by the government in exchange for taxpayers holding majority ownership. In 2009, the company changed the name to Ally Financial Inc.

GM buys new auto financing company

As Ally Financial is getting its act together, GM isn’t resting on its laurels. GM has just acquired a majority stake in auto loan company AmeriCredit, according to the Wall Street Journal. This may be a move toward allowing Ally to become its own entity, as GM retains only a small stake in ownership, so GM can have an in-house lender that doesn’t do anything else.

Further Reading

Reuters

Wall Street Journal

A GM IPO has just been filed, and the installment loans from the Treasury will get a huge payment toward them. Image from Wikimedia Commons.

General Motors has finally put in the papers for what has been anticipated for weeks. A GM IPO has just been filed, although exact details are not known yet. So far, what is for sure is that GM will be offering preferred shares, but how many shares is unclear. This will bring the company a good amount of debt settlement relief, as it might pay off a good chunk of its debt to the U.S. Treasury. It will get the company closer to independence, and maybe get it some big time cash quick.

GM IPO to begin soon

General Motors filed for a GM IPO today. According to the New York Times, it could be quite the pay day for an IPO. The company will be offering preferred shares. However, GM hasn’t announced the total number of shares the company will be selling. Chairman and CEO Ed Whitacre announced he will retire completely from GM by the end of the year; he’d previously said he’d retire once the company was back on track. An initial sale of shares will probably liquidate a lot of debt.

Clearing of debt a major bonus

Among the many benefits of this sale of shares, and re-listing of General Motors, will be paying off a large part of the installment loans from the Treasury. According to CNN Money, the Treasury has agreed to sell some of the government’s stake in General Motors. Currently, the U.S. Government holds 60.83 percent of GM shares, and the Canadian government holds a further 11.67 percent. GM has paid the Treasury back about $7 billion so far.

Getting back into the black

General Motors, with this Initial Public Offering, will get at least part way to paying the debt the company owes to the U.S. government. GM is posting profits again, so it isn’t as if GM will need another loan until payday from the taxpayers again. The IPO would have to clear about $67 billion for taxpayers to break even on the auto bailout.

Further Reading

New York Times

CNN Money

General Motors posts profits for the first time in years. Image from Wikimedia Commons.

After GM and Chrysler went to the government asking for a bailout, and got one, General Motors has posted a profit for the first quarter of 2010.  It is the first time the company has posted numbers in the black since 2007.  GM recently repaid a portion of the auto bailout it was lent and is thought to be on the path to profitability. Ford Motor Co. also posted recent gains, so it seems auto companies are getting back on track, though they still have plenty to repay from the emergency loans they received from taxpayers.

GM posts first quarter gains

For the first time since 2007, GM has posted a first quarter profit. According to the New York Times, GM garnered about $865 million in profits for first quarter 2010.  It posted revenues of $31.5 billion, and cash flow about $1 billion in the positive.  It’s an overall positive sign for the beleaguered car maker, who previously had to ask the government for more than $50 billion in assistance. One year ago, the company posted losses of $6 billion.

Payment on the loans begun

Weeks ago, GM made payments on a portion of the loans from the Treasury.  The actual loans to GM and to Chrysler were bundled loan packages, and they paid off one of the portions, years before it was due.  While this was touted as a victory by GM and also Chief Executive Ed Whitacre, it was only a payment of $8.2 billion to the governments of America and Canada.

Not out of the woods

Despite the return of GM profits, the company is still heavily in debt.  The loans it received from the U.S. and Canadian governments totaled more than $50 billion. GM has been making obvious positive strides but isn’t completely free yet. At present, the U.S. Treasury still owns more than 60 percent of GM, and those ownership stakes can only be bought by stock offering when the company goes public again. According to the same piece in the New York Times, they will potentially make a public offering by year’s end.

General Motors makes $6 billion payment

General Motors wired the final payment Tuesday night on $6.8 billion in installment loans from U.S. and Canadian governments. More than $1 billion went to the Canadian government, and $4.7 billion went to the U.S. Treasury. According to Reuters, the U.S. Treasury has confirmed that General Motors has paid its loan obligation a full five years before the maturity date of the loan.  The loans made to General Motors and Chrysler were part of the TARP program.

General Motors to begin mass production of Chevy Volt

Production has already commenced on the Chevy Volt, the plug in hybrid.  It is being manufactured at the Hamtramck plant near Detroit.  General Motors Chief Executive Ed Whitacre has also, according to CNN, announced they will invest $136 million into the Fairfax, Kansas and $121 million into the Hamtramck, Michigan plants for production of the next generation Malibu. The Fairfax plant also produces the Buick LeSabre, and the Hamtramck plant produces the Buick LaCerne and Cadillac DTS models, among others.

Not out of the woods just yet

The U.S. and Canadian governments are still majority shareholders of General Motors.  Currently, according to this article in The Guardian, the US and Canadian governments collectively hold 73 percent of GM stock, the U.S. holding 60 percent.  General Motors received about $50 billion from the U.S. Treasury in TARP funds, and the plan is that once GM is allowed to go public for stock purchases again, the taxpayers will get back something on their investment. Chrysler is still struggling, though it has begun to make positive steps.  The Wall Street Journal reports that Treasury Secretary Tim Geithner will be meeting with Whitacre soon.

So is it ok to buy GM again?

Many people were dissatisfied with the involvement of the Treasury, and also the fact that one of the largest manufacturers of domestic automobiles slipped so badly.  The car manufacturing industry is also one of the largest employers in the US, and thousands were laid off in the wake of the General Motors and Chrysler bankruptcy.  This is proof that GM is returning to not only solvency, but perhaps to profitability, and with the upcoming release of the Chevy Volt, Detroit may soon see the dawning of a new day.

(Photo Credit: http://www.flickr.com/photos/jm3/ / CC BY-SA 2.0)

Smokey says, "Only you can prevent Honda Jazz forest fires. Only you." (Photo: tsikot.com)

Another Japanese automaker is facing a recall, which comes as no shock to anyone who buys into the whole GM conspiracy theory that’s floating around out there. Josh Oliver at TheGMSource writes that in light of the recent Toyota recall, some people began speculating that the U.S. government – the same government that has gone to great pains to prop up the sagging General Motors (GM) – is trying to hammer the competition so that GM has a better shot at increasing their share price. Of course the whole theory breaks down when you consider that the Japanese government is also forcing Toyota to recall vehicles over there. Your cash advance blogger simply doesn’t smell what conspiracy theorists are cooking, but I have had a cold lately.

Now Honda recalls airbags

According to the Washington Post (See: http://www.washingtonpost.com/wp-dyn/content/article/2010/02/09/AR2010020903896.html), Honda will recall 438,000 cars worldwide due to a problem with the airbag deflator. It can cause the rap to rupture and fling shrapnel at the driver. One fatality and 11 injuries have been recorded in the U.S. due to the Honda airbag malfunction.  If Pat Benatar ever pondered the greater implications of Fahrvergnügen, I’m sure airbag shrapnel wasn’t on the set list.

Honda had just recalled 646,000 cars

Only two weeks before, Honda had to act on news that a faulty window switch had caused a Honda Jazz to burst into flames and kill a South African child. That prompted a 636,000-vehicle Honda recall. In recent years, Honda had already gone through airbag recalls totaling 510,000 cars. “Insufficient stamping pressure” during airbag inflator propellant production had been the problem then, according to the Post.

Kangaerarenai koto da, Takata

Oh, so the airbags were made by the U.S. unit of Japan’s Takata Corp? The conspiracy theorists are hungry again. Takata was unaware of the airbag problem, according to Honda. Now the following U.S. and Canadian-made Hondas are being recalled, totaling 379,000:

2001 and 2002

• Accord
• Civic
• Odyssey
• CR-V
• Pilot

2002

• Acura TL
• Acura CL

If the Honda airbag recall affects you, call (800) 382-2238 or visit this Web site for more information.

Honda recalling airbags: A yen for giving up the yen

Honda estimates that the recalled airbags will cost the company around 24 million yen in Japan. At 89.91 yen per dollar, that’s about $267,000 – that’s where the $67 per car estimate comes from. Globally, however, they’re looking at around $30 million. As of the Washington Post‘s report, Honda’s share price was down 0.2 percent in Tokyo; Takata’s was down 1.6 percent.

The media has been all over these auto recalls

Yes, they’re important for the safety of those who own the cars in question. But analysts like Yoshihiko Tabei of Kazaka Securities – among others – are going on record with the media as saying that “While the way automakers handle recalls is important, I think people should be careful not to overreact to every single recall.” Critics of the cash advance industry lose their heads when one person enters a debt spiral after using the product, even though ample evidence exists that cash advance is a safe product if used properly. The Honda recall for airbags is serious; so was the Toyota recall. However, auto recalls as a whole are a quiet business not worthy of such attention (or not so much attention for American automakers, according to the conspiracy-minded).

Related Video:

(Photo from foot-slogger, Flickr.com)

The auto sector is experiencing continuing tough economic conditions. The auto industry will have to emerge from the other side of this recession with a new look; a look that will be forever changed. The way autos are made and sold will never be the way it was. In reaction to this, many auto makers like GM and Honda are cutting low margin or poor selling models and lines to better define and strengthen their market positions. GM has killed the Pontiac line, for example. Honda has stopped making their S2000 roadster, and many others will follow suit from auto makers across the globe.

Clearance Sales are not always Deals when it comes to Cars

Normally, retail clearance sales of discontinued items can be great buys. The deep discounts create enough value to justify the purchase. However, cars are a bit more complex in how they fit into the sales model. Automobiles need to retain a residual value, how much they are worth for later resale, to be considered good investments. Discontinued car lines have a difficult time holding their residual market value because of a lack of demand and a lack of replacement parts and available service and warranty options. Once the particular discontinued model is out of the mainstream, very few people are interested in buying an old model. Combine that with the other difficulties in parts and service and you end up with very little value in the market.

Separating the Good Deals from the Bad

The key to determining which discontinued models are the best deals is good solid research. There are several places one can look to find out what the analysts see as the car’s future value. KBB.com, U.S. News’ car ranking site and Edmunds.com are a few good places to find out valuable information on how much the car is worth. These sites give valuable information on quality and reliability which directly affect the car’s residual value. Remember, residual value only matters if the car is going to be re-sold or traded in. If the car will be owned for 10 years or more, the residual value is not much of a factor. The car will not be worth much of a percentage of its original value anyway.

To Re-sell or not to Re-sell

The buyer has to have a plan in place before making the decision to buy a discontinued car model. If the plan is to keep the auto for 8 or 10 years or more, then residual value isn’t a consideration, but warranty and service are. Ask the dealer if the warranty will be honored after the model is discontinued. Also, ask if the warranty can be extended afterward. Many parts are universal on a lot of models, but an important question to ask is whether or not replacement parts will be available 5, 8, or 10 years down the road. If the buyer’s plan is to get a bargain price and then re-sell or trade in the vehicle, residual value comes back into play. No matter what the plan, research plays a key role in providing reliable information the buyer can use to get the best deal possible.

Photo: http://commons.wikimedia.org/

Today it was announced that General Motors will be selling off their inventory of Saturn vehicles. Saturn vehicles will join with the service and rental car lots operated by select dealers. This will enable dealers to slash prices up to 46% off retail price. These Saturn vehicles are brand new, but will be marketed as used because technically the dealers will be considered the first owners.

Many may hesitate to buy

There’s reason to hesitate in buying a Saturn from a generic auto dealer as that GM stated that they will honor existing warranties on these liquidated vehicles. The fact that these cars will be considered used may or may not be a deterrent to prospective buyers. Because the resale value will be very low, GM is losing a lot of money on this deal by paying $ 7000 to dealers on every car. It is said to be part of their reorganization process and that it will pay off in the long run.

What this means for you

I’m a Saturn owner and I love the brand, so I’m pretty excited that I’ll be able to apply for an online installment loan or payday loan to secure funds for my new Saturn. My Saturn is 5 years old and I have yet to have a problem with it. I have been on many long road trips, and with its digital compass that’s viewed on the rear view mirror I have never been lost.

When will this sale happen?

It’s reported that this will occur around January 4, 2010 and up to three months of inventory will be liquidated. That’s roughly 3,500 Saturn’s that bargain hunters will be able to purchase. General Motors is desperate to rid themselves of their Saturn and Pontiac vehicles. General Motors will be left with only Chevy, Buick, and Cadillac for the coming years.

Bye-bye Saturn cars! Image from Flickr.

People shopping around for cars and auto loans should take notice: You might have an opportunity to to get a brand new Saturn car for a used-car price. The same thing goes for Pontiacs.

General Motors is discontinuing both brands, so Pontiac and Saturn cars are bascially going into fire sale mode now. I am still trying to understand exactly how this sale works, so perhaps someone out there who is more business savvy could leave a comment to fill in the missing information.

Incentives plus price slashing

First of all, GM says it will pay dealers “$7,000 for every new Saturn or Pontiac on their lot that is moved to rental-vehicle or service-vehicle fleets operated by the dealers,” says the Wall Street Journal. So, basically, GM will pay dealers to take ownership of the cars. So that’s weird and backward. Right?

Then, dealers must label these cars as “used” because technically the dealers are the first owner, not the customer. Of course, most of the cars will not actually be used, and they’ll still have zero miles (or just test drive miles) on them.

A little help?

So, what am I missing here? This strategy really makes no sense to me. Why doesn’t GM just give bonuses for Pontiac and Saturn cars sold? Why not just slash prices instead of going through the process of justifying and slapping a “used” label on there?

I’m still waiting for this to click. The brands are both being discontinued, so it can’t be for the purpose of maintaining value attached to the Pontiac and Saturn names. I’m at a loss. Let me know what you think.

The bottom line

Anyway, regardless of exactly what GM and its dealers are doing and why they are doing it, you could be able to buy Pontiac and Saturn cars for super cheap, so if you’re thinking about getting a new car sometime soon, you might want to set your plan in motion sooner rather than later.

Billboards may become a thing of the past (photo by openphoto.net)

Small business owners are looking to installment loans to make it through the rough economy. With industry giants like GM and Chrysler falling into bankruptcy, it’s easy to see how smaller businesses are in precarious financial situations. Part of the problem is cyclical. As business owner Terry Grant, owner of a small chain of dry cleaners in Orlando, Florida, stated, “It’s hard because to get more business we have to advertise; but to advertise we need more business.” Many businesses have the same problem and are looking for ways to afford the advertising needed to reach more customers.

Advertising is being cut from budgets

Unfortunately, every business is suffering and advertising outlets of the past, like magazines, newspapers and radio stations, are also suffering. They are trying their best to give customers small perks in efforts to keep their business. Meg Schaeffer, manager of the sales department of WBRT Radio said, “It’s hard because we want to keep people buying our ad-time, but the first thing people cut in times of trouble is marketing. We are trying to throw in perks and bonuses, but only our most loyal customers are still here.”

Advertising is changing

One popular way to advertise is online. Many small business owners are turning to free advertising online with social marketing and blogging. Nancy Everett, owner of a graphics design firm in Seattle, Washington, stated, “We need free marketing and online tools are the best…all it takes is time and you can create an online buzz about your product quickly and easily.” There are some simple ways of using the internet to build a brand and they are becoming more and more popular as internet usage expands.

Social marketing works

Using Myspace, Twitter, Linkedin and Facebook to market is the simplest way of getting a name out. Each of these social marketing sites boasts millions of users who check in daily to communicate, market, and build their businesses. The key is consistency. Everett confirmed this, adding, “I dedicate two hours every other day of my work week to social marketing and networking. Whether it’s tweeting people or uploading new pictures to Myspace, I make sure that there is activity on my online presence….and I always communicate with those who talk to me.”

Consistent communication is the key

That’s another key for business owners who use online marketing—consistent communication with potential buyers. Many owners realize the importance of using any communication wisely and following up. Everett added, “Even if it’s just to say ‘Thanks’, it’s all about relationships and building them… you don’t know if that one ‘thank you’ will lead to a new contract or job.” By making the most of an online presence, businesses can use funds procured through installment loans, bank loans and grants for running the business, rather than supporting a heavy advertising budget.

Blogging is user-friendly and it attracts business

Blogging is one of the most effective ways of maintaining a user-friendly and pleasant website for a business. Some tips to blogging are:

1.  Always provide fresh content. Marcus Gentry, marketing professor at Pepperdine, stated, “You want to make the customer glad they went to your website. Outdated content won’t help that cause. You need to post something as often as possible to engage your viewers.”

2.  Stay connected to visitors by asking for input, feedback and opinions. One of the best ways of captivating an audience is to ask for their opinions. Business owners should incorporate a “comment” section on their website that gives visitors an outlet.

3.  Owners should use blogs as a way to reach search engines. Blogs can keep a website popular because of the constant addition of content with keywords. There are plug-ins available to create keyword friendly URLs and business owners should find them and use them wisely.

Try social marketing – it’s free!

These are all great ways for business owners to find free advertising and marketing possibilities. In times like these when businesses need installment loans or bank loans and may even have to liquidate assets to stay alive, it’s good to know that marketing does not have to come to a standstill. Marketing and advertising are what will bring new customers in and, hopefully, generate more income.

Apply Below for your Installment Loans!

I have seen a vehicle that crossed a plane and a car before. The maker called it more of a “roadable aircraft” than a flying car. Today, I came across the Scoot Coupe, which is basically a combination motorcycle and car, but it’s really more of a motorcycle with bucket seats.

The Scoot Coupe has three wheels and handlebars like a motorcycle. However, it carries the passenger and driver side-by-side in car seats. It gets great gas mileage, much the same as a regular motorcycle.

Slow going

A Scoot Coupe can only go about 40 to 50 miles per hour. Also, the Scoot Coupe has already been outlawed for safety reasons in some U.S. cities, so before you go blow your paycheck or loan on a Scoot Coupe, make sure you’ll be allowed to drive it.

A Scoot Coupe will run you between $5,000 and $10,000, so it’s not an ultra-cheap way to travel. But it is less expensive than a new car, and of course it gets 70 to 80 miles to the gallon.

Price disadvantage

Of course, the only way the Scoot Coupe is really a realistic idea is if you like to invest in stuff just because it’s cool. Obviously, because of the speed, the Scoot Coupe can’t go on the highway.

So the Scoot Coupe is neither an alternative to a car nor a replacement for a motorcycle. So, given the fact that you’ll have to spend between $5,000 and $10,000 on this thing on top of your regular transportation costs, it’s pretty pricey. At least, to me it’s pretty pricey. I am aware that some people spend that much on clothes any given day of the week.

Details, details

Scoot Coupes come in two models. The smaller one, which does not require you to have a motorcycle license, is the 50cc model. The larger size, 150cc, requires a motorcycle license to drive it.

Right now the price listed on the official web site for the 50cc is $6,299 and the price for the 150cc is $6,599. That’s better than the “up to $10,000″ that Manolith reported,  but still not chump change.

Business time

The company that makes Scoot Coupe, Panther Motors Inc., is based in Florida. The official Scoot Coupe web site says that dealerships all over the country are selling them. It also says you should contact the company to find the nearest Scoot Coupe dealer near you.

So, here you go, contact away! The web site is www.scootcoupe.com, the company phone number is 954-682-3693, and you can e-mail info@scootcoupe.com.

A familiar story

The Scoot Coupe, unfortunately, reminds me of the Puma, an experimental vehicle developed by GM and Segway. This vehicle is described as a “sit-down scooter” or a scooter-car hybrid. People are worried about safety above all else and usefulness when it comes to the Puma.

Like the Scoot Coupe, the Puma doesn’t go very fast and isn’t safe for the freeway. The Puma is being pitched by GM/Segway as an electric alternative to cars. With the Scoot Coupe, it seems we have yet another vehicle that will add to transportation options but won’t serve as a replacement for traditional cars.

The preachy environmentalist

So many companies are trying to develop vehicles that will replace cars. I don’t think that is necessarily the case with Scoot Coupe, but we’ve all seen this. I think that the key, instead of creating new vehicles, is to share the ones we have.

Carpooling and more efficient, convenient public transportation are the answer to helping the environment and people’s finances. It is going to take a long time for the “a vehicle for everyone, and everyone in his vehicle” mentality to become obsolete, but I am glad to see signs that society is going that way.