What’s Happening with the NYC MTA?

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The NYC MTA has been in and out of the news lately and little of what being said is any good. Just skimming the headlines of the article concerning the MTA is enough to include that it is in a state of flux and uncertainty.

First of all, the MTA is struggling with the process of reducing their substantial debt through refinancing this year. They’re also being sued by the mother of Briant Rowe. She’s claiming that the MTA’s negligence led to the death of her son, who had been seen jumping onto the tracks just hours before he was struck and killed by a train.

And in the midst of these changes the MTA has also recently lost two board members, one of whom was Nancy Shevell is leaving to spend more time with new husband, Paul McCartney.

Only time will tell what effect the MTA’s struggles will have on auto shippers in the NYC area. But one thing’s for sure, plenty of eyes will be on the MTA as they deal with one of the most tumultuous times in their history.

Fuel prices and Auto Transport

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Recently, I have been questioned by returning customers why auto shipping prices have been going up. The answer is; fuel is the largest single fixed cost in the car shipping business so when fuel prices go up car shipping prices go up. Most Carriers claim their fuel economy to be 5-7 miles per gallon. Those who operate around major cities will usually get a little less. From Sacramento to Boston is 3021 miles according to Yahoo Maps. 3021 divided by 6 is 503 gallons per cross country trip.  According to the U.S. Energy Information Association, as of March 7, 2011 the price of diesel fuel in the United States ranged from an average of $3.81 per gallon in the Gulf Coast States to $4.12 per gallon in California with a national average selling price of $3.87 per gallon. That may not seem like a lot if you are spending $30 a week for fuel for your Toyota Camry when last year it was only $23 a week. However for these carriers the prices increase from one year ago, when the average price was 97 cents less a gallon is enormous. One year ago the seven day trip across country would use the same 503 gallons but those gallons would cost $1,459 today that same trip would cost $1,947 each way. That difference of $488 is more than most carriers spends per week on groceries or housing and is probably very close to exactly what that carrier spends each week on shelter and food combined. Carriers are forced to raise their prices so they can eat and have a place to live. If the carriers average 8 vehicles per load then $488 divided by 8 is a $61 increase per vehicle per trip. The actual price increases have been higher. This is because if fuel is 40% of a carriers fixed cost, and its price rises 33.4% from $2.90 a gallon to $3.87 a gallon then his fixed costs rise 13.36%. This predicts a price increase of about 13%, so if it cost $825 to ship your car last year across the country, then this year an identical vehicle shipment will cost around $932.25.

Mike Price

Auto Shippers Express

General Manager

SUVs Still Contenders

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Compact cars held the spotlight for several years now. With low gas consumption on everyone’s minds as prices rise and environmental issues come to the forefront, most consumers assume that smaller is better.

According to an article with USAToday.com, SUVs are re-entering the stadium as contenders for new car buyers. The biggest factor is that SUV manufacturers are very aware of the gas crisis, and doing their best to lower fuel consumption in the lower vehicles.

USAToday.com says, “Many new SUVs no longer have heavy truck frames, but are car-based, with unibodies that integrate that frame and body. That cuts weight and raises gas mileage.”

This news most likely helped the increase in sales, shown by an analysis performed by Edmunds.com. This research shows that there was an increase, “…to 32.4% of new vehicle sales last month, up from 29% a year ago and 25.9% in 2008.”

For more promising figures, visit our auto shippers website for a great quote for your vehicle transportation needs.

Chrysler Financial Sold

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The U.S. economy’s suffering is no secret from the rest of the world. A few smart decisions prove to be fruitful for other countries as they take advantage of cheaper buying prices for businesses that may be worth the investment.

The Detroit Free Press covered one thus business deal in late 2010. They report, “Toronto-Dominion Bank has agreed to buy Chrysler Financial, the automaker’s old lending arm, from private-equity firm Cerberus Capital Management for $6.3 billion.”

According to insiders, this purchase is to help, “…accelerate growth in the U.S.” If American business is good, then every country involved with America’s business improves as well.

Cerberus bought the business in 2007, but didn’t seem to glean much success from the purchase. A stable foreign business hand may be just what Chrysler Financial needs to thrive again.

Our auto shippers service applaud this kind of forward thinking and are excited to see how the deal plays out.

Exciting New Compass Features

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Over the years, Jeep became a symbol of adventure in the auto industry. The Grand Cherokee and the Wrangler are fun icons. With the new Compass, it looks as if Jeep is trying to create a dynamic trio.

An article with USAToday.com featured a great review of the new 2011 Jeep Compass. Although there is a significant price increase from 2010 ($19,295 from $15,365), this rise is due to many more features than the previous model. This, “…includes features like air conditioning, power windows and locks, heated power side mirrors, keyless entry, fog lamps, cruise control and tinted glass.”

Besides the inside features, the outside of the new Compass includes, “…LED tail lamps, new wheel designs and a ‘Trail Rated’ drive train.” All this adds up to one convenient and classy adventure vehicle.

For all your vehicle transportation needs, visit our auto shippers website.

Imports from China?

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China has long been booming, even as America slowly struggled through a devastating recession. This success is easy to see in the recent new car buying frenzy.

According to an article with USAToday.com, Chinese cities are beginning to crack down on the number of vehicles that will be able to be registered. Beijing, “…is going to cap the number of new car registrations at 240,000 a year.” Many Chinese citizens are still buying, but this number means sales will eventually slow down.

As sales fall, China will begin looking for other places to sell vehicles in overproduction in its factories. Because the United States and Europe both suffered financially in the past years, automakers poured much of their energy into Chinese sales. This may very well change as China becomes overstocked and the American economy begins the slow ascent to where it was a couple of years ago.

For more interesting news, visit our auto shippers website for great deals and a full list of our services.

Record Recall Year

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Throughout the year, we hope this blog has become a touchstone of car news for the latest gadgets and newsworthy bits. We also hope it’s been a reliable source in a tumultuous year of recalls and confusion in the auto industry.

We’re not the only ones who’ve noticed this alarming trend. An article with USAToday.com at the end of the 2010 year explored this phenomenon.

The article says, “Led by Toyota, automakers recalled about 20 million vehicles in 2010, but the tally is far from a record.” In 2004, 30.8 million vehicles were recalled. The top culprits in 2010? Toyota, General Motors and Nissan closes the crew with about 2 million recalls.

The added press to the shocking amount of recalls made a noteworthy year for the auto industry. As we look forward to the coming year, hopefully automakers will fare better than what we just saw.

For more reassuring numbers, visit our auto shippers website for the best prices and service in the car transportation industry.

Ford Explorer – King of Trucks

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At the end of the year, many take the time to reflect on what was done well that year and what could have been done better. The auto industry is no different. One article with freep.com explores the best of the best in trucks – and one vehicle came out on top.

The two top competitors were the 2011 Dodge Durango and the Ford Explorer. According to the article, the Explorer wore the crown for the past year – but it was a tough decision.

While both cars, “…offer more interior room and better fuel economy than their predecessors,” the Explorer delivered more than the Durango in other aspects. These include making it easier to get into the back of three rows of seats, and making it easier to fold these seats down for more storage room.

The Explorer also incorporated voice control technology for many of its features. The Durango couldn’t compare with this spiffy feature.

For more top performing quality, visit our auto shippers website.

The Volt Reigns

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Electric cars are exciting. Electric cars may be the answer to many of the environmental issues created by gas-powered vehicles. Electric cars also have been raising eyebrows – are they a practical solution, or just another trend? One car is proving that the electric movement may well be the former.

According to an article found on freep.com, the Chevrolet Volt, “…solves a problem that stumped the auto industry’s best minds for a century. It combines the emissions-free operations and efficiency of an electric car with the quick refueling time and long driving range of a gasoline car.” What makes the Volt stand out among its electric competitors is the generator incorporated into the design of the car.

Another cool feature of the Volt – the battery is fully charged after only four hours of attachment to a power source. Once the battery is depleted, the generator turns on to produce even more juice. Combine this with a full gas tank, and the Volt can go 379 miles. Wow.

For more awe-inducing news, visit our auto shippers website for quotes and a full list of services.

Ford Announces Recall

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With the New Year rolling in, it’s important for your vehicle to be in tip-top shape. This includes complying with all auto recalls when they are announced.

While we are hoping that those who need to turn in their vehicles have heard by now, Ford announced a recall in late December. The affected vehicles include, “…some 2011 model year F-150, F-250, F-350, F-450, Ford Edge and Lincoln MKX vehicles.”

According to the Detroit Free Press, “A Ford supplier of a control module produced the faulty product over a six-day period.” Apparently, the electrical systems in these truck models can short and start a fire in the vehicle. The article included a phone number to check if your vehicle is included in this relatively large recall – 1. 866. 436. 7332.

We urge all owners of these Ford models to call and check if your vehicle is included in the recall. We also urge readers to visit our auto shippers website to receive the best car transportation service a consumer can ask for.