Thursday, June 25, 2009

Rental Cars: Not Enough Supply?

So Hertz is buying cras and their stock is up. So what's up with that? The car rental company says it's been adding to its car fleet as it's seeing higher demand in the last few weeks.

Mark P. Frissora, company's chairman and CEO, says, "We are able to resume earnings guidance for the current quarter and full year for several reasons. Our car rental demand in the U.S. and Europe has stabilized and we are experiencing better-than-anticipated summer peak reservation build in both markets. We are adding fleet as a result."

The real question is why is Hertz stockpiling cars? Frissora told CNBC that his company sees improving demand for rentals in the past 10 weeks in the U.S. and in the past seven weeks in Europe for the summer season. As a result, the company is "literally scrambling to buy as many cars as it can.

Wednesday, June 24, 2009

Cash for Clunkers; Cash for Obama

The Cash for Clunkers bill has some folks in a tizzy. If passed, cars with lousey mileage can be traded in for a $3,500-$4,500 credit toward the purchase of a new, more fuel-efficient car. Old vehicles must be scrapped and folks donating their cars get a tax deduction. While some new-car shoppers might be enticed by the Cash for Clunkers credit, people with sense will see it's just another shell game.

As for the car-donation groups, the bill adds insult to injury, coming on the tail of a rotten economy that's punished charities. Over at Kars4Kids, Y. Meth, a spokesman for the company, weighs in: "While the bill is purportedly to remove smog-producing cars from the road and benefit automakers, Kars4Kids is conscientiously doing our share by frequently taking cars with high emissions out of circulation."

Read more here.

Monday, June 1, 2009

Dear Shabby

alexandria1_1999 at Starting Car Club is "in desperate need of opinions to help me decide what to do..."

She write that she left her ex more than a year ago (abusive, unfaithful, you know the drill); they had two kids that she has custody of. HERE COMES THE CAR PART: "My ex, even though he had a girlfriend before I even left him, told me he would take my car if I did not stop seeing my current guy." He gave you the kids but wants the car. Ok, I know guys like that, too. "He has a company vehicle he uses and never drove our car," she continues. "It was my only means of transport. I was making the payments and kept it locked up with the club which worked well for many months until I started getting comfortable and forgetting to put it on. One morning in October I woke and found it was gone along with all of our personal belongings in it. He took it... said I can have it back if I get back with him. Never going to happen...

"So I lost my job and had to stop going to school, then I found out I was pregnant. So I have not had a job or a car since October. Money is getting tight and I have a baby coming in July. He tells me now that I can have the car back if I give up his pensions. According to my attorney I would be entitled to about 30-40G in 17 years when he retires. We still owe 20G on the car and it is only worth about 10. Should I just go ahead and do this trade, as not having a job and money now is getting ridiculously hard, and the pension is not really doing me much good at this point in my life. He says he will pay it off but I will have no entitlement to the pensions... What should I do?"

Our advice: Hang yourself, honey. You're too dumb to breed.