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Watch Out For Your Sat/Nav

Australia’s law enforcers are at it again! Not satisfied in raising a hornet’s nest over the proposed banning of mobile phones, we have reports that the Queensland constabulary are fining drivers over the use of their portable sat/nav devices! (and from the comments from some of our readers it seems it’s not only the Queensland Constabulary)

The police assert that if you locate your sat/nav within the sweep of the windscreen wipers (as shown above), then it creates a visual obstruction and a hazzard and you can be fined. They probably have a point, but where else do you put it?

Well, it is suggested by the authorities that you locate it on the bottom right hand corner of the windscreen, right out of the way.

But this means that you have to run the power cable across in front of you to reach the power socket, and that could cause a bigger danger. Of course you can buy a packet of self adhesive cable ties and run the cable as you need to, if you can find a matching colour for your trim. We couldn’t, all we could find from several auto stores and electrical outlets were white sticker packs that certainly didn’t look so good stuck on the dashboard!

Furthermore, if you have a passenger who can help you by reading out the instructions, it’s not much use out of sight. So we reckon the best spot is centrally mounted, out of the wiper sweep and easy for driver or passenger to read.

But then we are not absolutely sure we won’t be fined by Sergeant Plod!

What do you think? Is this over-policing? Are they being sensible, or unnecessarily officious? Where is the best -and safest place  for the sat/nav?

Have your say on the post below – we want to hear from you.

FOOTNOTE:- Our March Newsletter revealed the story about Hands Free Mobiles. It really created a furore, with the vast majority of our readers against the thought of banning hands-free mobiles in cars, and we are not the only ones. A spokesman from the Department Of Infrastructure and Transport told us “There has been a large public reaction to the draft strategy.” So a ‘refined’ version of the strategy is expected to be discussed by the various State transport ministers when they meet later this month. We’ll keep you posted. http://credit-n.ru/kredity-online-blog-single.html

GM on the mend!

General Motors has just posted first quarter earnings of US$3.2 billion, its fifth consecutive profitable quarter and its best quarter in more than a decade.

General Motors was one of the most high profile bankruptcies of the GFC. But after a massive sell off and plant closures it has now emerged as a meaner, greener and substantially more profitable outfit.

It’s not out of the woods yet though, as it still has massive debt to pay back – the US taxpayer still owns more than a quarter of the stock. However it is heading on the right track, particularly after the world wide success of the Cruze compact – which is now made in Australia for the local market. GM execs claim it won’t be long before they regain the mantle of the World’s largest auto manufacturer. http://credit-n.ru/zaymyi-next.html

How Japan's Tragedy Will Impact On The Market

The dreadful earthquake and tsunami in Japan will have an impact on practically every Western nation in some form or other.

 We have been trying to find out how it will impact on the motor trade in Australia and frankly, it is very difficult to be definitive.

We do know that: –

  • Some Japanese vehicle manufacturing plants, including Toyota, Mazda, Nissan and Subaru have ceased operation and will be gradually resuming production during April and May, but only on a limited basis.
  • Whilst many Japanese branded cars are not actually manufactured in Japan, (for example, the only Honda that is fully manufactured in Japan is the Euro), Japan may well be the source of some crucial components.
  • Similarly, even non-Japanese brands may well be dependant on Japan for components. Volkswagen, for example, source air-conditioning units from Japan.

 This means that the shock that Japan experienced may well be felt much more widely than anticipated and some respected analysts predict that as much as 30% of the global automotive industry’s volume could be affected within six weeks.

We have surveyed most of the major manufacturers to get their take on how they may be affected. Understandably, may of them are reluctant to comment, and others are still uncertain and unclear.

Gone are the days when a car company would make the majority of its motor cars. Virtually all manufacturers source from all parts of the world. A typical car has approximately 5000 parts, and if just one part is sourced from Japan and can’t be sourced from elsewhere, then the whole plant could grind to a halt.

It does seem, though, that some notable brands have already suffered some supply problems – particularly with high tech diesel components, for example – but Japanese suppliers have been able to overcome the supply problems and we’ve just been told that diesel engine production is flowing again, much to the relief of manufacturers such as Peugeot, Land Rover and Citroen.

We have been assured by Hyundai and Kia that they have no supply problems and certainly many European brands remain unaffected too. However, Mazda, who have had to shut down all of their factories in Japan, are slowly resuming operations but have a very restricted power supply. This suggests that their highly popular 2 and 3 model small cars will be suffering severe supply problems in the coming months.

Toyota have been hit by supply shortages in its local operation, and have announced that it will halve its output from its car production line in Altona until supply lines improve. They will reassess the situation at the end of June.

Even if a manufacturer is largely unaffected with parts supply, it may be hit in other obscure ways; for example, some European and North American makers are experiencing shortages of certain colours of cars because some special pigments come from Japan and can’t be sourced from elsewhere.

So, what’s the message?

Simply, this is an enormous disaster that is impacting in many more ways than one could possibly anticipate. New car buyers need to be aware that their choices may be restricted. We will certainly be doing our best to keep abreast of developments, availability and pricing, but it is a time of turmoil where patience is paramount.

As a company, we have enormous sympathy for the plight of the millions of people who are suffering in Japan. Should you wish to assist by donating, we suggest you visit the Japan Tsunami Appeal website at www.wspa.org.au/Japan_appeal

or the Red Cross Appeal website at

 www.redcross.org.au/Japan2011.htm http://credit-n.ru/calc.html

Would You Pay $50,000 for a new Corolla?

A famous political saying of 50 years ago “You’ve never had it so good”* could well apply to today’s new car buyer.

 We’ve been doing some homework on ‘value for money’  new cars comparing those manufactured today against those produced a generation ago.

We looked at two popular cars – the Holden Commodore and the Toyota Corolla.

Let’s look at the Corolla first.

In 1985, a Toyota Corolla CSX Hatchback 5-door with 5 speed manual transmission and a 1.6L engine cost a base price of $14,140, excluding delivery costs. Air-conditioning, power steering and front power windows were extra cost options which would have brought the price up to just under $17,000, excluding delivery costs.

 

Twenty-five years ago, the Holden Commodore was relatively new and was the most popular car of the year. A 1985 Commodore SL VK 3 speed automatic cost $14,815 at the dealership. Add to that the extra costs you had to pay for air-conditioning, 4 wheel disk brakes, power steering and power windows. This brought the price up to just over $18,200 before delivery and registration costs.

Now let’s adjust these 1985 prices, allowing for inflation and calculate them into today’s dollars. The consumer price index has nearly trebled – a factor of 2.615. So this means that in today’s dollars, the Commodore would have cost $47,632 and the then locally produced Corolla Hatchback translates into a staggering $44,324 at today’s prices.

 

Now let’s look at what hidden extras you get with the modern version that would have cost a motza in 1985 – assuming you could get them.

ANCAP Safety Ratings – the modern car has built-in crash protection; “crushability zones” and front and side airbags. They have anti-skid braking as standard – that hardly existed in 1985, and only on the most expensive cars like Mercedes, and traction control- which did not exist.

Whilst the enormous advances made with vehicle safety are probably the most important, let’s not forget reliability.

The JD Power company in the USA just released its’ latest annual reliability survey – see our report here. It shows a reliability factor of 151, which is the best that the survey has ever reported, and that’s an outstanding 140% improvement on reliability standards on those of 25 years ago.

But let’s put all of that aside and compare just the raw dealer floor prices.

We worked out that our venerable 1985 Toyota Corolla would cost $44,324 in today’s dollars. (Of course, if you add in all the safety features, you’d be looking at well over $50,000 but forget that for a moment.)

So, would you pay $44K for a new Corolla? Of course you wouldn’t – not when you can get a staggering 52% discount!! A new Corolla is just $21,000 – less than half the price of it’s 25 year old equivalent in today’s dollars..

That’s a great deal for a Corolla. Now how does the Holden Commodore fare?

We have an inflated 1985 cost of $47,632 and a brand new Commodore, equipped with airbags, anti-lock braking, traction control, CD player will set you back just $36,990, which is around 30% less than twenty-five years ago.

Just occasionally we have to remind ourselves that it is indeed true – “we have never had it so good!”

* British Prime Minister,  Harold McMillan, 1957 http://credit-n.ru/zaymyi-v-ukraine.html