Monday, March 23, 2009

Train Cuts Town In Two



Not to sound too cold hearted but if that's the worst thing happening to you then you're doing pretty damn good.

Dealership charges potential employee for job training

Another Nissan Store...what gives?



Unemployed Lisle resident Will Zellner saw the ad in the paper and thought he had struck gold.

"SALARY! COMMISSION! BONUSES! NO EXPERIENCE NECESSARY!"

Health insurance, a 401(k) program, the opportunity for job security in the "highest paid profession without a formal education," the ad continued.

It even claimed to pay a "generous salary" during training.

But amid the exclamation marks and screaming capital letters, the help-wanted ad for Arlington Nissan failed to mention one significant detail: If you show up for an interview, you'd better bring your checkbook.

Zellner said he was hired on the spot Jan. 21 but was told he had to prove his commitment to the job. The price: $629 for training materials, which he says consisted of a thin paperback book.

At first, the 35-year-old hesitated, but he was desperate for a job. Besides, he said, he was told he would get his money back after a 90-day probationary period.

The problem was, Zellner was fired after two weeks.

Last week, he e-mailed What's Your Problem? hoping to get his money back.

"I've had a number of jobs in the past and I've never had to put any money down for training," he said. "The whole thing from the beginning was just smoke and mirrors."

Zellner said he worked for Arlington Nissan about 10 days and received $836.81, which included a $116.24 commission for selling a 2008 Nissan Versa. After subtracting what he paid for training materials, his net was $207.81.

"I think they're looking for people who are desperate for work in a crappy economy and they're taking advantage of it," Zellner said.

The Problem Solver called Bob Rohrman of The Bob Rohrman Auto Group, which owns the Arlington Nissan dealership. Rohrman said the practice of requiring potential employees to pay for training is common in the industry.

He said the dealerships do not profit from the payments. The money goes to an outside training agency, in this case Charlotte-based Worldwide Consulting Services.

Of his 26 dealerships in Illinois and Indiana, all have used a training agency at some point, Rohrman said. In most cases, the training agencies are able to get more potential employees through the door, he said.

"It's worth our time, our management time, to have them train [employees] for a week rather than have us training them," he said.

Even so, Rohrman said he's toyed with the idea of getting rid of training agencies. But his general managers have told him it's often the best way to hire.

Jon Kommel, general manager of Arlington Nissan, likened the practice to paying college tuition.

"If you go through college, why are you going through college? To get a good job, right?" he said. "You're not guaranteed getting a good job."

Kommel said Zellner was let go because he didn't have what it took to be a salesman. After shadowing another salesman for more than a week, Zellner was put on his own for two days, Kommel said.



"In that time, we observed that he really didn't take any customers," Kommel said. "He sat in the back with the guys."

Kommel said he would have rather it worked out.

"I'm not looking to let people go," he said. "I'm looking to hire people."

Kommel and Rohrman said that if Zellner wants his $629 back, he has to get it from Worldwide Consulting Services.


The Problem Solver called Logan Bentley, Worldwide Consulting's placement director. Bentley said his agency trains potential employees at about 50 U.S. and Canadian dealerships each week.

"We don't charge students for a job," he said. "They pay for materials, which we feel is very necessary to be successful."

Bentley said the $629 Zellner paid provides him with "lifetime placement assistance," and he offered to help Zellner find another auto sales job.

Zellner declined.

"At this point, I think I could get a job on my own," he said. "I'd rather just get my money back."

On Thursday, Zellner called Bentley. He said Bentley said he would consider a refund if he asked for it in writing. Zellner typed up the letter that afternoon.

"He just said to sign the letter and he'll see what he can do," Zellner said. "It doesn't sound real reassuring."

HAVE A PROBLEM? E-mail your story, providing as many details as possible, to yourproblem@tribune.com or write to What's Your Problem?, Newsroom, Chicago Tribune, 435 N. Michigan Ave., Chicago, IL 60611. Please include your name and a way to contact you. We cannot respond to everyone, but we'll get to as many as we can and publish the results Tuesdays, Thursdays and Sundays.

Original story here.

Friday, March 20, 2009

New Cars Now Cheaper Than Used Ones

For cash-strapped consumers shopping for a car, used would seem like the place to start. Not necessarily. A new one might actually be cheaper.

Consider this: The average cost of a used 2008 Honda Accord EX sedan, certified by the dealership, was $21,544 earlier this month, according to Edmunds.com, a car-buying Web site. A new 2009 model cost $80 less.

It’s simple supply and demand. With new car sales at a 27-year low and desperate dealers piling on rebates and incentives, prices are plummeting. At the same time, demand is up for used cars and their values are rising.

“The intuitive logic has been that a used car buy is a better buy,” said Edmunds CEO Jeremy Anwyl. “But consumers need to check reality. It’s very contradictory.”

Used cars still generally cost less than new ones, but a mix of drastic price cuts, rebates and financing incentives is narrowing the gap.

Automakers are subsidizing zero-percent or low-interest loans on new cars, while the average rate on a three-year used car loan is about 7.5%, according to Bankrate.com. Factor in the lower cost of financing and the total cost of the new car can be less.

For example, a $30,000 car with an annual percentage rate of 2.9% would cost $662.70 a month over four years. By comparison, a used car with an APR of 7% would cost $718.38, a total of $2,673 more over the same period.

Automakers like Ford Motor Co. are banking on the phenomenon to drive consumers back to new car showrooms.

“There is an equilibrium level which we believe we are getting back to between the value of used vehicles and the transactional price of new,” said Ken Czubay, Ford’s sales and marketing vice president, when the company announced its February sales fell 48% from a year earlier. “This also portends, we believe, a favorable future for the new business.”

Even with the best of terms, however, the monthly payments for a new car are out of some people’s reach. That’s why leasing became popular. But many auto finance companies have stopped offering that option because it became unprofitable, and where it is available it may still be out of reach to many consumers.

Original story here.

US Mint Suspends Production of More Gold and Silver Coins

The United States Mint has officially announced the suspension of another slate of gold and silver products. The affected products are 2009 dated American Gold and Silver Eagle coins produced for collectors. These coins are considered collectible versions of the bullion coins.

Although these are collectible coins, they represent a sizable amount of precious metals sales and represent a method of gold and silver investment for many individuals. Last year, the US Mint sold 1,157,911 ounces of silver in the form of Silver Eagle coins minted for collectors. They also sold 155,740 ounces of gold in the form of Gold Eagle and Gold Buffalo coins minted for collectors.

The following message was posted on the US Mint's website in the space where the collectible Gold Eagle coins typically appear. The proof coins has been offered uninterrupted since 1986. The uncirculated version has been offered since 2006.

Production of United States Mint American Eagle Gold Proof and Uncirculated Coins has been temporarily suspended because of unprecedented demand for American Eagle Gold Bullion Coins. Currently, all available 22-karat gold blanks are being allocated to the American Eagle Gold Bullion Coin Program, as the United States Mint is required by Public Law 99-185 to produce these coins “in quantities sufficient to meet public demand . . . .”

The United States Mint will resume the American Eagle Gold Proof and Uncirculated Coin Programs once sufficient inventories of gold bullion blanks can be acquired to meet market demand for all three American Eagle Gold Coin products. Additionally, as a result of the recent numismatic product portfolio analysis, fractional sizes of American Eagle Gold Uncirculated Coins will no longer be produced.

A similar message is posted in the section where collectible American Silver Eagle coins would typically appear. The proof coins have also been offered uninterrupted since 1986 and the uncirculated coins since 2006.

Production of United States Mint American Eagle Silver Proof and Uncirculated Coins has been temporarily suspended because of unprecedented demand for American Eagle Silver Bullion Coins. Currently, all available silver bullion blanks are being allocated to the American Eagle Silver Bullion Coin Program, as the United States Mint is required by Public Law 99-61 to produce these coins “in quantities sufficient to meet public demand . . . .”

The United States Mint will resume the American Eagle Silver Proof and Uncirculated Coin Programs once sufficient inventories of silver bullion blanks can be acquired to meet market demand for all three American Eagle Silver Coin products.

This adds to the lengthy list of 2009 dated precious metals products that have been "temporarily delayed" or suspended by the US Mint. In my previous post Actions of the US Mint Discourage Gold Ownership, I mentioned the delayed release of 2009 Gold Eagle fractional coins, 2009 Gold Buffalo coins, and all 2009 Platinum Eagle coins. The delay, which was first announced in November 2008, continues with no further explanation provided.

For those keeping track, here is a list of the US Mint's 2009 precious metals products that have been "temporarily delayed" or suspended:

* 2009 American Gold Eagle 1/2 oz. (bullion)
* 2009 American Gold Eagle 1/4 oz. (bullion)
* 2009 American Gold Eagle 1/10 oz. (bullion)
* 2009 American Platinum Eagle 1 oz. (bullion)
* 2009 American Platinum Eagle 1/2 oz. (bullion)
* 2009 American Platinum Eagle 1/4 oz. (bullion)
* 2009 American Platinum Eagle 1/10 oz. (bullion)
* 2009 American Gold Buffalo 1 oz. (bullion)
* 2009-W Proof American Gold Eagle 1 oz. (collector)
* 2009-W Proof American Gold Eagle 1/2 oz. (collector)
* 2009-W Proof American Gold Eagle 1/4 oz. (collector)
* 2009-W Proof American Gold Eagle 1/10 oz. (collector)
* 2009-W Proof American Gold Eagle 4 Coin Set (collector)
* 2009-W Uncirculated American Gold Eagle 1 oz. (collector)
* 2009-W Proof American Silver Eagle (collector)
* 2009-W Uncirculated American Silver Eagle (collector)

In addition, the following precious metals related products were discontinued by the US Mint for 2009. These discontinuations were announced in November 2008. Amidst the environment of unprecedented demand for precious metals, the US Mint determined that these products were "unpopular."

* Uncirculated American Gold Eagle 1/2 oz. (collector)
* Uncirculated American Gold Eagle 1/4 oz. (collector)
* Uncirculated American Gold Eagle 1/10 oz. (collector)
* Unriculated American Gold Eagle 4 Coin Set (collector)
* Uncirculated American Gold Buffalo 1 oz. (collector)
* Uncirculated American Gold Buffalo 1/2 oz. (collector)
* Uncirculated American Gold Buffalo 1/4 oz. (collector)
* Uncirculated American Gold Buffalo 1/10 oz. (collector)
* Unriculated American Gold Buffalo 4 Coin Set (collector)
* Proof American Gold Buffalo 1/2 oz. (collector)
* Proof American Gold Buffalo 1/4 oz. (collector)
* Proof American Gold Buffalo 1/10 oz. (collector)
* Proof American Gold Buffalo 4 Coin Set (collector)
* Uncircualted American Platinum Eagle 1 oz. (collector)
* Uncircualted American Platinum Eagle 1/2 oz. (collector)
* Uncircualted American Platinum Eagle 1/4 oz. (collector)
* Uncircualted American Platinum Eagle 1/10 oz. (collector)
* Uncircualted American Platinum Eagle 4 Coin Set (collector)
* Proof American Platinum Eagle 1/2 oz. (collector)
* Proof American Platinum Eagle 1/4 oz. (collector)
* Proof American Platinum Eagle 1/10 oz. (collector)
* Proof American Platinum Eagle 4 Coin Set (collector)

That makes a total of 38 precious metals products which have been delayed, suspended, or discontinued by the US Mint.

As it currently stands, investors or collectors looking to purchase newly minted American Eagle or American Buffalo precious metals products have only two options available. These are the 2009 1 oz. American Gold Eagle and the 2009 1 oz. American Silver Eagle. Both of these products continue to be subject to rationing.

Original story here.

At Least it Hasn't Happened at My Store... Yet

Story about auto manufacturers calling in their inventory.

Good read here.

Christmas List 2009 #2



Lots of reasons why I NEED this.

More about it here.

Roll Your Own Cigarettes about to Skyrocket

I roll my own cigarettes to save $, but starting April 1st the cost advantage will all but disappear. At the company I buy from a pound of loose tobacco is rising from approximately $15 to as high as $50. One pound will make approximately 3 cartons. Once you factor in the tubes and the time involved it is a no win situation. Thanks for nothing government.

Full story here.

Where I buy my smokes here.