Consumer Paid More For The Month Of May

Last month, consumers paid more when shopping in the U.S. auto market. This is according to auto information company Edmunds.com. They paid more and have fewer choices, Edmunds said.

For the month of May, customer that bought a vehicle, paid about $180 more then in April, $310 more for then the month of February, and $410 more then May 2010. Overall incentives were at the lowest last month since October 2005, and incentives fell for compact -23% and subcompact -14% cars more than the average incentives for any other segment between April and May, according to Edmunds.

South Korean automakers turn out to be the biggest winners in Edmunds’ analysis of the monthly sales data released by the industry this week.

Edmunds said that the joint sales for sister companies Hyundai and Kia topped Honda and placed them fifth on the U.S. sales list behind fourth place Toyota. Hyundai has broken its monthly sales record five months straight. Kia has posted a 44.8% sales increase year to date.

Chrysler has paid back loans.

Chrysler has paid back the money that the U.S. and the Canadian governments, Said the automaker on Tuesday.

 It all included; $5.9 billion owed to the U.S. taxpayers and $1.9 billion owed to the Canadians, Chrysler said. "The original loans were repaid in full, more than six years ahead of schedule, along with the payment of accrued interest and additional consideration," said Chrysler, in a statement.

This doesn’t mean that Chrysler is debt free no, no, no. In fact, Chrysler took an additional loans last week to help pay off older debt. Isn’t that the same like paying a credit card bill with another credit card? Will it be a near ending cycle to pay one loan with another one? Well the company said that “it could save $300 million in annual interest payments through refinancing”.  

There is a saying in Puerto Rico that says: it’s like drying a puddle of water with a wet towel. Well I’m glad that Chrysler that pay off the loans to the U.S. and the Canadians. But now how they are going to do with the rest of the loans.