This article is from AutoRemarketing.com

EAST NORRITON, Pa. — Addressing the Automobile Dealers Association of Greater Philadelphia late last week, Pennsylvania Gov. Edward Rendell argued that his proposed state sales tax cut can lead to improved auto sales and help close future state budget gaps.

"My proposal lowers our sales tax rate by a third, increases the fairness of our business and sales tax systems and helps our state avoid the financial crisis that we know is only 18 months away," the governor told the dealer association's members.

"We will eliminate special interest exemptions on items except necessities like food, clothing and medications, and increase fairness because every item not subject to the sales tax makes the tax on everything else far too high," he added.

Specifically, Rendell proposes trimming Philadelphia's sales tax rate from 8 percent to 5.3 percent. The governor is looking to reduce the sales tax in the Philadelphia suburbs and the remainder of state from 6 percent to 4 percent. (Allegheny County, however, would see a reduction from 6 percent to 4.7 percent).

The governor added that there would be close to $500 in tax savings on an average new-vehicle purchase in the Philadelphia suburbs if the tax cut goes through. Meanwhile, in Philadelphia, the savings would be close to $650.

Explaining the proposal further, officials noted that a Stimulus Transition Reserve Fund would hold all revenues generated from the sales tax change. The fund would not be able to be touched until July 2011, which would be after Rendell has left office.

At that time, the money can be used to help close the budget gap caused by the end of federal recovery funding. The budget gap is projected to be $2.3 billion.

"A year from now, when more than $2 billion in Recovery Act funds are gone, I will no longer be governor, but I can see it coming and I know if we take action today, we can avoid a budget crisis then. Taking the long view will save legislators from enacting huge tax increases that will be inevitable in the coming years," Rendell noted.

"Elected officials and pundits who suggest further budget cuts to make up for the ending of federal aid would be jeopardizing the kinds of state investments that made community revitalization possible," he continued.

"If we want our state to continue to invest in our cities, great communities and industries, we need to take the bull by the horns and get in front of this crisis," Rendell suggested.

Continuing on, officials explained the state's sales tax further. At the time of its 1953 adoption, "nearly all tangible goods" fell under the sales tax.

However, in the almost five decades since, the government has exempted 74 categories of goods or services as special interest groups pushed amendments through the General Assembly.

"For the average Pennsylvania family, the elimination of sales tax loopholes does not impact them one way or the other," Rendell argued. "But for auto dealers, retailers and related businesses, a lower sales tax rate will give them a stronger competitive edge.

"And businesses that have gotten a pass on sales taxes will now have to pay their fair share," he added.

Proponents also argued that the state would have lower sales tax rates than nearby Maryland, Ohio and West Virginia if the reduction is passed.

Additionally, they explained that the proposal not only would exempt food, clothing and prescription medications, but would also keep the original exemptions for manufacturers covering process, agriculture and machinery and equipment.

DriveYour Bargain,

Anne

www.twitter.com/womendrivers.com

Women-Drivers.com and BEST BUY just selected the winners from the registrants at the 2010 Pittsburgh International Car Show. Over $2500 car-related goodies were given away by our generous partners at Best Buy and the very saavy Geek Squad.

• Garmin GPS systems
• Bluetooth’s
• $150 Car Detailing Coupons

Congratulations to:

M. Saunders

C. Pranovich

D. Martin

C. Sill

A. Balionis

C. Muhlenkamp

K. Wagner

C. Yount

S. Stahl

M. Copper

L. Kozinski

B. Spine

And, remember, always drive your bargain,

Anne

www.twitter.com/womendrivers

Say What?

With the Kizashi, Suzuki enters a new class of cars. It’s a step outside of the box, with the name (yea, I know, I had to say it a few times to ‘get it right’), but especially going into the mid sized sedan class.

Known for its high performance products, Suzuki is banking on this model entering this class and tearing up market share. Between a $19,000 and a $22,000 ticket, the car enters a fairly competitive market with Honda, Toyota, Ford and Hyundai already there. So, let’s see how the jazzed-up Kizashi competes.

Begin with performance – this 2.4 liter, 4 cylinder 185 horsepower engine has get up and go. The ride is smooth and the car responds well. I was expecting a tad more punch and having a 6 cylinder would offer that option.

The design and exterior is sassy indeed. The overall body design is urban and contemporary; a well fitted exterior topped off with four attractive 17” and 18” alloy wheels. Coming from the self proclaimed Grill Girl, the Kizashi’s front grill is aggressive – but not overdone – and offers an attractive, wide looking stance.

Keyless entry and a push-button start make are great and convenience.

The interior is clean, inconspicuous, and comfortable. The power seats and mirrors are easy to set. The seats offer lumbar support which makes a difference on longer trips. Plenty of organization and places for cups and accessories. Sound can bust a move with the AM FM CD XM capable audio system with 7 speakers and MP3 playback. Listen to your customized music selection.

This All Wheel Drive vehicle isn’t just about kicks. Safety matters; take a closer look. Complete with eight (8) standard airbags, advanced Electronic Stability control with traction assist and anti lock brakes. The vehicle is already compliant with 2014 Crash Standards – years ahead of its class.

The dual zone temperature mitigates any possibility of arguing over temperature control.

Coming off the 2010 Detroit Auto Show which offers so much focus on energy efficiency, this 21.5 mpg vehicles could deliver more in this area.

Overall this car gets a 'good' rating. Lots of amenities, style points, safety and value for this vehicle. Bravo, Suzuki.

 Drive Your Bargain,

Anne

www.twitter.com/womendrivers

Leadership and public confidence are both equally fragile. Delicate is the balance of staying in the public’s favor which is done by consistently deliverifair and quality product or service.  

Last Thursday, Toyota Motor Corporation recalled yet another 2.3 million cars and trucks for faulty gas pedals. This begs the question at what point will this impact Toyota’s long tern market share and sales? Thursday's action came on the heels of a recent recall of 4.2 million Toyota and Lexus products because floor mats could cause the accelerator to jam down.

In the immediate term the company stopped non-Japanese production of eight (8) vehicles including  the 2009-2010 RAV4, 2009-2010 Corolla, 2009-2010 Matrix, 2005-2010 Avalon, 2007-2010 Camry, 2010 Highlander, 2007-2010 Tundra and 2008-2010 Sequoia.

Word about customer complaints regarding faulty pedals, specifically sudden accelerations, are as far reaching as 2005 and 2006. In a news release on November 6, 2009, Toyota said “The questions of unintended acceleration involving Toyota and Lexus vehicles has been on of the most thoroughly and repeatedly investigated issues by Toyota as well as engineers at the NHTSA. Six times in the past six years, the NHTSA has undertaken and exhaustive review of allegations of unintended acceleration on Toyota and Lexus vehicles, and six times the agency closed the investigation without finding any electronic engine control system malfunction.” Now, just three months later, Toyota officials say that the problem is clearly not an electronics one.

Questions for Toyota are not likely to end. Two Congressional committee hearings are planned, beginning February 10th.  A full page Toyota advert was in the New York Times over the weekend proclaiming that the driving public‘s safety is number one with apologies for the inconvenience.  In essence, Toyota cares. It appears they do care, but what will the impact and the findings of the Congressional hearings play on public’s sentiment?

So, what is the staying power of Toyota in this operational and safety chaotic fury? Especially on top of already fierce competition from Ford, Hyundai and KIA?  There will be a short-term market drop in sales, no doubt. How long that will last may be impacted more by next week’s findings. But, over time, this may be a quality hiccup for all to learn from. At the end of the day, Toyota consumers are very loyal and most of us have short-tension spans, and can be very forgiving. Let’s see just how soon American’s forget about this and get back buying another Toyota.

Drive Your Bargain,

Anne

www.twitter.com/womendrivers