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Truck deals boost US auto sales in September

By WTOP Staff

DEE-ANN DURBIN
AP Auto Writers

DETROIT (AP) — Big discounts on pickup trucks kept U.S. auto sales strong in September.

General Motors Co. and Chrysler Group led the industry with 19-percent sales increases over last September. Toyota sales rose 2 percent; Ford and Volkswagen were down.

U.S. sales rose 9 percent to 1.2 million cars and trucks, according to Autodata Corp. The sales pace slowed after a blistering August, which was the best month for the industry in eight years. But September’s annualized pace of 16.4 million vehicles — down from 17.5 million in August — is closer to what analysts are predicting for the full year.

While August was fueled by Labor Day promotions and incentives on midsize cars, September saw good deals on pickup trucks. Chevrolet was advertising up to $8,500 off the price of a crew cab Silverado with a trade-in, while Chrysler’s Ram was offering zero-percent interest.

The second half of the year is usually stronger for pickup sales, and stable gas prices, employment gains and higher consumer confidence have more people shopping for trucks, automakers said.

But GM and Chrysler were also hoping to take advantage of Ford, which has temporarily closed a truck factory to retool for its new aluminum-clad F-150. Ford cut back on discounts in order to keep more trucks in stock during the shutdown. As a result, GM said its light-duty Silverado outsold Ford’s F-150 for the first month since 2011, and for only the second time in the last five years.

Pickup truck owners are the most loyal in the industry, but they also have come to expect big discounts, said Larry Dominique, president of the ALG auto forecasting firm. Full-size truck buyers may spend their entire annual income on a truck, Dominique said, so they’re sensitive to price.

“If you have two or three good trucks in the marketplace and Ram has an extra $2,500, they can pull off the fringes from each other,” he said. But automakers should beware: Those customers may not stay loyal when it’s time to buy a new truck.

Ford’s sales dropped 3 percent to 180,175 as F-Series pickup sales dropped 1 percent to 59,863. It was the first time in seven months that Ford’s monthly truck sales have dropped below 60,000.

Ford Motor Co. saw a 9 percent increase in Fusion sedan sales, but otherwise its car sales were down. Sales of the Escape small SUV fell 4 percent; Ford blamed that on a sharp cutback on sales to rental car companies.

GM’s sales totaled 223,437 cars and trucks. Three of its four brands saw double-digit gains; Cadillac sales were flat compared with last September.

Sales of the Chevrolet Silverado pickup rose 54 percent to 50,176. GM averaged just under $5,000 in incentives per pickup, which was 30 percent, or $1,140, higher than a year ago, according to estimates by J.D. Power and Associates. By comparison, Ford said its incentive spending dropped $160 per truck to $4,300.

GM’s SUV sales were also strong. Sales of the recently revamped Cadillac Escalade more than doubled, while Chevrolet Traverse sales rose 45 percent.

Chrysler sold 169,890 cars and trucks, its best September since 2005. Ram truck sales rose 30 percent to 36,612 after Chrysler raised Ram incentives by 22 percent to $4,640.

Chrysler also benefited from buyers’ increasing preference for small SUVs. Sales of the Jeep Cherokee, which was introduced late last year, surpassed the bigger Grand Cherokee for the first time. Jeep brand sales increased by 47 percent over last September.

Toyota sales rose 2 percent to 167,279, with a 43-percent gain for another small SUV, the RAV4, and big gains for the newly refreshed 4Runner SUV and the soon-to-be-discontinued FJ Cruiser. Honda sales rose 12 percent to 118,223 on the strength of the CR-V SUV and the Honda Fit subcompact, which jumped 66.5 percent

Other automakers reporting Wednesday:

— Nissan sales rose 18.5 percent to 102,955. Sales of the newly revamped Rogue crossover jumped 52 percent, while sales of the electric Leaf were up 47 percent.

— Hyundai sales rose 2 percent to 56,010 vehicles. Sonata sales were up 7.5 percent as a new version arrived in dealerships, while sales of the revamped Santa Fe SUV rose 35 percent.

— Subaru sales jumped 31 percent to 41,517 on the continuing strength of its SUVs as well as the new Legacy sedan, which saw sales double.

— Volkswagen sales fell 18.6 percent to 25,995, but the struggling German brand saw a glimmer of hope as its new Golf arrived in showrooms. Golf sales were up 93 percent.

Copyright 2014 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

Don’t Settle for Student Loans to Pay for Online Education

By WTOP Staff
Online college programs are becoming a more popular choice for prospective students, with one study finding that more than 6 million students enrolled in at least one online course in fall 2015. The popularity of these courses can be attributed in part to their flexibility with working adults' schedules, students' ability to progress more quickly through online programs and, oftentimes, cheaper tuition. [See 10 low-cost online bachelor's programs for out-of-state students.]Online degrees can be beneficial to many college students, but some studies have shown online learners complete their programs at lower rates than students at traditional brick-and-mortar campuses. Individuals with student loans but no degree comprise two-thirds of defaulted borrowers. Though these numbers are not encouraging, just like for traditional programs, there are ways to reduce how much you'll need to borrow for an online program to ensure you won't become one of these statistics. Don't just settle on borrowing student loans to cover the whole cost of your program and living expenses. Instead, start thinking about how to cut costs and cover your balance in different ways, such as the following. -- Grants and scholarships: Even though you are taking an online course, you can still apply and receive grants and scholarships. But your first step should be to complete the Free Application for Federal Student Aid, commonly referred to as the FAFSA, which will allow you to receive a Pell Grant if your expected family contribution is low enough. The EFC criteria and award amounts are adjusted annually, but the 2017-2018 academic year awards range from $606 to $5,920, which could significantly lower the amount you borrow annually. Your next step is to apply for scholarships. You can start by checking online scholarship search engines, such as the Salt Scholarship Search, College Board's BigFuture and Peterson's. But don't forget to take advantage of local organizations and your school's financial aid office. Both may offer scholarships that you can't find with a national scholarship search. [Review these 10 sites to kick off your scholarship search.]For instance, organizations like the Elks Club, Knights of Columbus or the Rotary Club typically offer scholarships annually to local students. Just because you're going to school online doesn't mean you're ineligible. Visit your local library for scholarship listings, and ask around town. You might be surprised how many local organizations offer scholarships. While these scholarships typically aren't large, every little bit counts. Each dollar you receive in a scholarship is a dollar you don't have to borrow and pay interest on. -- Work-study: Another option for online students may be work-study awards. Not all students enrolled in online programs are eligible, but students at some schools -- including, for example, SUNY Empire State College and Liberty University -- are. Work-study awards are not given upfront like scholarships and grants. In most cases, they are an offer to earn up to the awarded amount if you secure an eligible work-study job. While there is a misconception that all work-study jobs must be on campus, students can work for off-campus, nonprofit or public employers as long as the work is in the public's interest. You may be able to work for a for-profit employer if the job is relevant to your course of study. No matter who the outside employer is, it will need to have an established agreement with your college for you to receive work-study funds. Remember, to be eligible for federal financial aid, you must be enrolled and pursuing a degree or certificate. If you're not working toward a credential, Pell Grants and work-study won't be option, but you may still be able to take advantage of private scholarships -- just be sure to read the eligibility criteria carefully. [Explore what to know about financial aid in online programs.]-- Pay as you go: One of the great benefits to enrolling online is the flexible schedule, which can allow you to complete your college coursework around your responsibilities. But prospective students often overlook using their part- or full-time job earnings as an option for paying for college. Almost 80 percent of college students in 2015 worked at least part time while attending classes, according to the National Center for Education Statistics. By budgeting and thinking strategically about your college costs, you can likely reduce your dependence on student loans by paying a portion out of pocket. Many -- but not all -- online programs are less expensive than traditional programs and often have shorter payment periods. Six, eight or 10 weeks are common course durations. Because of the frequency of payments in an online setting, you may be well-placed to pay as you go and possibly avoid borrowing altogether. Attending college online and avoiding student loans may be challenging, but if you are willing to put in the effort, you can limit the amount you need to borrow. More from U.S. News Q&A: Understanding Student Loan Discharge Eligibility Student Loan Refinancing Isn't Right for All Borrowers
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