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Lower gas prices boost US SUV sales in October

By WTOP Staff

TOM KRISHER
AP Auto Writers

DETROIT (AP) — Falling gas prices improved buyers’ moods and boosted sales of SUVs and trucks in October.

GM, Toyota, Chrysler, Nissan, Volkswagen and Honda all reported sales gains last month. Of major automakers, only Ford and Hyundai saw declines.

Industry sales rose 6 percent over last October, according to Autodata Corp.

The national average price of gasoline fell 33 cents to end October at $3 a gallon, according to AAA. Gasoline is now the cheapest it has been in four years, and the decline accelerated a trend toward SUVs and trucks that has been going on all year.

“Gas prices coming down added a little bit of fuel to the fire, but that fire was already roaring,” said Alec Gutierrez, a senior analyst with Kelley Blue Book.

Small SUVs have been the fastest growing segment in the U.S. this year, and now make up one out of every four vehicles sold, says Jesse Toprak, the chief sales analyst for the car buying site Cars.com.

But gas prices fueled sales of bigger SUVs. Kelley Blue Book saw renewed interested in the mammoth Hummer H1 last month, for example. Sales of the recently redesigned Lincoln Navigator eight-passenger SUV jumped 38 percent, while Chevrolet Tahoe sales rose 6 percent.

Gas prices also convinced small business owners to go ahead and buy pickup trucks, Toprak said. GMC Sierra sales jumped 12.5 percent in October. Ram pickup sales were up 33 percent.

Fuel economy is no longer top of mind for most buyers, according to annual survey taken by J.D. Power and Associates in June. Last year it ranked No. 3 on the list of reasons why people buy cars. This year it dropped to No. 6 behind reliability, styling, brand preference, ride and handling, reputation and price.

As a result, hybrid sales are suffering. Sales of Ford’s C-Max hybrid dropped 22.5 percent in October, while Toyota Prius sales were down 13.5 percent.

But sales of some small cars rose. Lower gas prices can help first-time buyers and others feel comfortable enough to buy a new car. Sales of the newly redesigned Honda Fit subcompact were up 83 percent in October, for example, while sales of the Nissan Sentra small car rose 56 percent.

“Lower gas prices are actually a tide that floats all ships,” said Jessica Caldwell, a senior analyst with the car buying site Edmunds.com.

General Motors’ overall U.S. sales rose just 0.2 percent to 226,819. Chevy Cruze compact car sales were up 51 percent, largely due to increases in fleet sales to governments and rental car companies.

Ford’s sales fell 2 percent to 187,897. Its car sales declined 11.5 percent, but SUV sales were up 10 percent. F-Series truck sales were flat. For several months now, Ford has tried to limit pickup sales and keep some trucks in stock as it prepares for the launch of a new F-150 later this year.

Chrysler said its U.S. sales rose 22 percent to 170,480 for its best October since 2001. The red-hot Jeep brand led the way with a 52 percent increase over a year ago.

Toyota said it set an SUV sales record in October thanks to a 22-percent gain for its RAV4 small SUV, and a 30-percent jump in sales of the Highlander mid-size SUV. Toyota’s sales were up 7 percent overall to 180,580.

Nissan, Honda and Subaru all reported their best October sales ever. Honda sales rose 6 percent, backed by a 30-percent gain in sales of the CR-V, the nation’s top-selling SUV. Subaru benefited from strong sales of the Outback small SUV, while Nissan got a boost from demand for the Frontier small pickup.

Hyundai’s sales dropped 6.5 percent to 50,081. While sales of its Tucson SUV rose 44 percent, that wasn’t enough to offset sagging sales of its Sonata and Elantra sedans.

Volkswagen, which has struggled for months with older products, saw sales jump 8 percent in October after the arrival of the new Golf small car.

Sales should remain strong through November and December and close out the year at 16.5 million, up 6 percent from 2013, Toprak says. He says buyers should look for big discounts in small cars as well as full-size trucks and SUVs for the remainder of the year.

“At the moment, the picture is rosy. Sales are doing well, incentive levels appear to be higher but still in check,” Toprak said. “Things are in a pretty healthy balance in the industry.”

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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