When elderly parents abuse credit cards

To Her Credit

Sally Herigstad is a certified public accountant and the author of "Help! I Can't Pay My Bills: Surviving a Financial Crisis" (St. Martin's Press, 2006). Ask a question. To Her Credit archive

Dear To Her Credit,
My mother is 80 years old. She is in credit card debt for $120,000. This is due to shopping via television programs. I cannot help her with this debt. Any suggestions? -- Diane

Dear Diane,
That's a lot of impulse buying! Where is she putting all this stuff? Spending $120,000 on gadgets and goodies advertised on TV borders on the irrational. It's a good thing you are aware of the problem and want to help.

What you can do to help, however, depends on a couple of things.

First, does your mom want your help? If she is just complaining but isn't ready to take advice, then there's not much you can do. I normally advise helping elderly parents financially when necessary, but you can't afford to finance out-of-control spending. If you tried, it may just encourage her to spend more.

Second, is your mom of sound mind? It's awfully hard to make that decision. Eighty years old looks so different on different people -- some people are still working at that age, or could be, while others are starting to show judgment lapses. The most difficult cases may be those who are just as sharp as ever 90 percent of the time -- and then do inexplicable things the rest of the time.

Sometimes, a person's health or the medications they are taking can affect their judgment, even on a temporary basis. I remember when I went to the hospital to visit a friend who had just had back surgery. My husband and I expected to find a wan, weak person lying in bed. Instead, we found Maureen standing by her bed, phone and credit card in hand, staring with pain med-glazed eyes at the shopping channel! She bought so many things she didn't remember, boxes were coming to her house for weeks.

If your mom truly wants help with her problem (not just help paying the debt), there are some great resources out there. Debtors Anonymous is a fellowship of people dedicated to helping each other stop "debting," as they call it. Debtors Anonymous charges no dues and is very successful helping people stop spending compulsively.

To deal with her existing debt, she needs a financial counselor to look at her total financial picture and show her some options. I recommend a member of the Association of Independent Consumer Credit Counseling Agencies (AICCCA). One of the first options I would suggest is that she returns every item she possibly can, and sell much of the rest. You could even help her sell collectible figurines and whatnot on eBay.com or other online sites.

If your mom's mind is starting to slip, your tactics will be different. "Find out if she doesn't remember buying all this stuff again and again and again," says Georg Finder, independent credit evaluator. If she isn't sure, or if she denies buying all of it, you definitely need to step in.

You may need to have yourself appointed as her guardian, according to Finder. That way, she can't go on more buying binges. "Call the card companies to lower the spending limit to what she owes now," he says. Or call the credit card companies and see what they suggest. "Tell them what Mom is doing. They may actually suggest something helpful -- different cards have different policies."

If you live with your mom or happen to be there when boxes keep coming, you can be proactive. Finder says, "Tell the delivery person that the sale is refused -- that will cancel the charge and mom will go on a list."

It would be easy to say that it's the credit card companies' problem if your mom spends money she can't pay back if she is starting to lose her decision-making powers. However, we should never give someone the responsibility for something that we don't want to give them power over. I certainly don't want banks to start checking on my mental soundness when I'm 80, nor do I want them to cut off my credit at an arbitrary age. The responsibility for good credit decision making has to start with us -- or, in your mother's case, with a caring family member.

You are doing the right thing by helping to curb your mom's irrational spending. It won't be easy, but it's the right thing to do.

Comparing value of cash back cards vs. rewards

Cashing In

Randy Petersen is editor and publisher of Inside Flyer, which is considered the leading publication in the world about frequent traveler programs. At CreditCards.com, he writes Cashing In, a weekly feature in which he answers readers' questions about credit cards rewards programs. Ask a question.

Dear Cashing In,
I spend around $60,000 a month on purchases charged to my PayPal Master Card/Debit Card. I earn unlimited 1.5 percent cash back on each transaction, and it translates to $1,000 a month in cash. When I charge $1,000, I automatically receive $15 back when the transaction clears. What credit card would let me make more money or give me more value? Thank you. -- Steve

Dear Steve,
Your question presents an interesting argument. The PayPal arrangement is pretty exclusive, and you've done well to take advantage of the benefits it has to offer. Unlike other cash-back programs sponsored by bank cards, there are relatively fewer caveats with this program. However, you may not be aware of the most recent modification to the program. On April 8, the unlimited cash-back has been lowered from 1.5 percent to 1 percent. That is a 33 percent change, and it is relative to debit card purchases that do not require a PIN (there seems to be a growing number of those exceptions these days). If we follow that logic, you now will be earning only about $650 a month from the PayPal Preferred Rewards program, or $7,800 annually.

This change really just impacts the PayPal debit card product since the MasterCard earns you a point per dollar spent, but the rewards are fairly mild -- just under the 1 percent threshold:

• 1,000 points -- Free shipping up to $7 on a PayPal purchase
• 2,500 points -- $25 reward voucher
• 9,500 points -- $100 reward voucher

Your question asked about money versus value, and there is not enough space to fully examine all that these two topics do not have in common. Even among those consumers who choose money rewards, their choice is relative to lifestyle and expectations of use. As for value, like art, it is in the eye of the beholder. Now, having gone entirely philosophical on you, let's give you some what-ifs.

I recently answered another reader question about the comparison of a typical cash-back card versus airline rewards cards. In your case, however, the comparison of value is evident when we consider that the only way for you to earn value from the PayPal system is by spending money. So let's concentrate on that. We have established from your question that on expenditures of $60,000 a month ($720,000 annually), you will earn about $7,800. That's real money, no arguments there.

Now, let's say that you spent that amount using two different travel rewards credit cards.Here's what you would get:

Spending $720,000 with a Hilton Visa Signature card would earn you approximately 1.5 million Hilton HHonors points. That's an impressive amount when compared to $7,800. But does it have value?

With those HHonors points, you could spend six free nights at the Hilton Waikoloa Village or the Hilton Hawaiian Village, which would cost you 175,000 points. But, you'd have to get to Hawaii first. So, you would convert more HHonors points into airline miles with American Airlines. If you don't mind coach, that will use about 300,000 HHonors points. It takes two to have fun in Hawaii, so that's 600,000 points plus the 175,000 for the hotel. You've used 775,000 points so far. Now, shopping for this very same airfare and hotel package on Expedia, you would spend about $2,800. With the number of points you have, you can actually afford this trip twice, meaning that the payout from this rewards card is $5,600 -- well below the $7,800 cash payout from your existing PayPal arrangement. In stronger travel periods, it is likely that the value of the same trip will increase about 25 percent ($7,000), which still means that PayPal is the better choice for you right now.

If you were to go with just an airline rewards cards, you'd garner about 750,000 frequent flier miles annually, which equates to about seven business-class tickets to Europe. In today's environment, those tickets may be valued at $3,500 each, giving you a total value to another type of reward of $24,500. This, of course, is only relative if you enjoy travel, and in this case, want to travel enough to Europe in an upgraded capacity.

The bottom line: For cash back, I think you are truly in the best situation, even with the recent change of conditions to the payout of the PayPal debit card for cash back.

Big credit card losses continue to dog U.S. banks

The banking industry has 3.4 billion reasons why credit card debt is proving to be a major pain in its neck.

Even as banks see their profits recover, a survey shows credit card losses continue to plague the industry. In its latest Quarterly Banking Profile, the Federal Deposit Insurance Corporation reported that the first three months of 2009 produced net income of $7.6 billion, the largest net profit for U.S. banks in four quarters. Nevertheless, credit card charge-offs -- the amount of credit card debt banks decide is not collectible -- surged $3.4 billion from the year earlier for a 68.9 percent increase.

The FDIC keeps tabs on the banking industry, stemming from its role as the government agency resposible for encouraging public confidence in the U.S. financial system by insuring bank deposits. The agency describes the quarterly profile as the "earliest comprehensive summary of financial results for all FDIC-insured institutions."

Banks acknowledge that they are operating in challenging times. "The earnings report released by the FDIC today demonstrates that banks are continuing to work through the problems presented by a difficult economy," said James Chessen, chief economist for the American Bankers Association trade group, in a prepared statement. Still, he said there are reasons for optimism. "Though first quarter earnings are down from what they were a year ago, they are the highest they have been in four quarters, and two out of every three banks increased their assets in the first quarter," Chessen said. Of course, billions of dollars in goverment initiatives have certainly helped get banks into the black.

Lending remains a weak spot. For all major loan categories (including loans to commercial and industrial borrowers, credit cards and real estate construction loans), net charge-offs climbed to $37.8 billion in the first quarter from $19.6 billion in the same period a year ago. Still, on a quarter-over-quarter basis, charge-offs were down from the $38.5 billion total in the fourth quarter of 2008.

Additionally, the FDIC found that credit card delinquencies increased quarter-over-quarter as cardholders increasingly made late payments. The amount of credit card loans that were 30 to 89 days past due totalled 3.09 percent in the first three months of 2009, up from 2.98 percent in the fourth quarter of last year.

Despite government initiatives aimed at boosting lending, including the Term Asset-Backed Securities Loan Facility (TALF), banks can't blame losses on their increased willingness to lend. In fact, the FDIC discovered what many consumer borrowers already know -- banks are doing quite the opposite, with the FDIC data indicating credit card card lines were reduced by $406.6 billion (or 9.9 percent) in the first quarter. That's a continuation of card issuers' ongoing approach, representing the fifth-consecutive quarterly decline in unused loan commitments. Overall, total bank assets fell by $301.7 billion as a few large banks reduced loan portfolios and trading accounts, creating a 2.2 percentage drop that is the steepest pullback in industry assets in one quarter in the 20 years for which quarterly data is available.

Meanwhile, banks posted total noninterest income that rose 12.8 percent -- to $68.3 billion in pretax earnings -- compared to the year before. Lenders also continued to set cash aside for potential future losses, with loss provisions surpassing net charge-offs by $23.1 billion as banks' loan loss reserves advanced 11.5 percent. Additionally, total equity capital of insurer institutions jumped $82.1 billion, for the largest quarterly increase since the third quarter of 2004.

Maybe that's why the industry doesn't appear too worried. "The vast majority of banks have been in existence for decades and the industry is taking prudent steps to assure that banks will continue to serve their communities for many, many more decades to come," the ABA's Chessen said.

Negotiating debt with original creditor vs. 3rd party collector

Opening Credits

Erica Sandberg is a prominent personal finance authority and author of Expecting Money: The Essential Financial Plan for New and Growing Families. Ask a question. 'Opening Credits' stories

Dear Opening Credits,
Hello Erica. We are trying to stay afloat with our credit cards. Most of them have gone to collections and we have been trying to work out some type of payment plan on our reduced income budget and, of course, we are met with sarcasm and threats of litigation. We just want to work out a settlement and make payments on that. Can you help? -- Laura

Dear Laura,
Bailing water from sinking boat is exhausting, isn't it? So let's mend that hole and get your financial vessel really seaworthy!

You say that the accounts are all in collections, but it's not clear whether they're still with the original creditors or if they've been sold to third-party collectors. This is a necessary distinction for both resolution options and legal matters. Just who is in possession of the accounts is not always obvious, so call the number on the bills to find out if you're unsure.

Dealing with original creditors
Though your bills may no longer arrive with a friendly, "Hey, maybe you've forgotten about us, but we didn't receive a payment last month ..." note, there is a good chance your banks and retailers will still work with you. Why? They not only want to get paid, but one day you could be in a better position and once again be a desirable customer. Therefore, though they may not sound particularly cheerful, it's in their best interest to help you find a way to pay.

• Resolution options. Original creditors are often reluctant to accept a payout of less than the amount you charged, so your best bet is to arrange a hardship plan. With it, you make lesser than normal payments until you get back on your feet. Begin a letter writing campaign: Send a brief explanation of your situation, an outline of your budget, supportive documentation and how much you can afford to pay with a check in that amount. Your offer may at first be rejected, but persist; reasonable proposals are usually accepted eventually. Another option is to contact an accredited credit counseling agency. A financial adviser will review your circumstances, and if it makes sense, will arrange a debt payment plan.
• Legal matters. It's always a good idea to know your legal rights and responsibilities before dealing with those you owe. When a balance is with the original creditor, state law, rather then federal, applies regarding collection practices, so learn what yours are by viewing the state state-by-state listing of collections laws, statutes of limitations.

Dealing with 3rd-party collectors
If your original creditors sold the accounts to third-party collection agencies, you'll be dealing with an entirely different type of company. These businesses purchase uncollectible accounts for a fraction of the amount owed, and then attempt to collect on the full balance. They make their money on the spread between what they buy the account for and how much the debtor pays. For example, if they purchased a $3,000 balance for $1,000 and collect in full, they make $2,000 -- a tidy profit.

• Resolution options. Because the collection agency bought the debt at a discount, you may be able to negotiate a settlement as long as they make some money on the deal. Be aware that you'll need the total offer in cold, hard cash. Collection agencies are not in revolving credit industry, so it's rare for them to accept small monthly payments, especially on a settled sum. However if the debt is large, offering to send the payments in two or three installments can't hurt. There are problems with settled debts, though. They don't reflect as well on your credit report as accounts paid in full, and there may be a tax consequence for the amount you walked away from. For this reason, you may choose instead to pay the total balance due, focusing on one and than moving to the next in systematic fashion.
• Legal matters. Third-party collectors must comply with the federal Fair Debt Collection Practices Act. There is nothing in this law that prohibits these collectors from making snide comments, but they are restricted from swearing and making idle threats. If they say they are going to sue you, then they must follow through.

While you're working on your debt issues, know that policies vary by company. Be flexible. You may encounter original creditors that are willing to settle for less than you owe but won't allow a hardship program, or collection agencies that refuse settlements but accept monthly payments.

As the boat's owner, Laura, your job is to locate the leak by knowing whom you owe, seal it well with a solution that satisfies both parties, and then closely monitor your repairs by maintaining creditor contact. Do so and you'll safely sail to a better financial future.

Discover deploys military rewards program

By Seamus McAfee

Discover Financial Services will reward double cash back and miles for its cardholders who make purchases at military bases.

The promotion, which will run from Memorial Day to Labor Day (May 25-Sept. 7), will also give double rewards automatically to consumers who make up to $1,000 in purchases on base. The locations accepted by the company will include most military installations in the United States and abroad, including commissaries, stores, exchange catalogs, online stores and base gas stations.

Discover said it is offering the promotion to complement the good reception it received from it in the past and to assist military members who make most of their purchases on base. "We wanted to recognize and reward those who serve our country by helping them make their money worth more, especially given the difficult economic conditions," said Julie Loeger, senior vice president of brand and product management at Discover Financial Services in a press release. "With this program, military families will be able to stretch their dollars on necessities that matter most right now, like gas and groceries."

Discover will provide cash back bonuses through a partnership with Operation Homefont, a nonprofit organization that provides emergency assistance and support to wounded soldiers and their families upon their return home. Cardholders can also donate their rewards to Operation Homefront.

The ugly side of debt collection

d Ossenfort

The Credit Guy

The Credit Guy, Todd Ossenfort, is a credit expert and answers readers' questions about credit, counseling and debt issues. Ask a question 'The Credit Guy' archives

Dear Credit Guy,
I received two court judgments against me. These judgments are about 5 years old. I could get no information from my creditor. I received a phone number for their collection agency. The collection agency refused to allow me to make payments in order to pay off the outstanding accounts. The two outstanding accounts amount to about $4,000.00. I offered $200 per month in payments. I don't understand their all-or-nothing decision. I am on Social Security, and there is no way they are going to get a better deal than I offered. If I could contact a decision maker with my creditor and explain my case, would I get a positive response on this matter? -- Fred

Dear Fred,
Congratulations on trying to do the right thing and pay what you owe. It is unfortunate that the collection agency is unwilling to work with you to accept monthly payments. This is an exception rather than the norm. If your only income is your Social Security, it sounds as if you are correct in believing they will not get a better deal than what you have offered to pay monthly.

The fact that the judgments are 5 years old tells me that it is very likely the collection agency already knows that you have no assets to make good on the $4,000 that you owe. If you did, the collection agency would have used the judgment(s) to secure a wage garnishment or to place a lien on your personal property.

If you do own a home or other property I'd check with your city and county tax assessor's office or other county records departments to learn whether there is a lien against your property. State and local laws vary across the country, so a lien could have been placed without prior notification to you of the action. Should a lien have been placed on your property, it will be more difficult to sell or refinance the property without satisfying the lien first. The lienholder cannot, however, force a sale of your property.

The reason the collection agency wants you to pay what is owed upfront and not in monthly payments is that they have very little invested in the debt -- typically pennies on the dollar -- and do not want the hassle of monthly collection. They would much rather settle for less than the full amount and get it all at once, than receive a small amount each month.

You could attempt to contact your original creditor, but once the amount owed has been sent to collections, the creditor does not keep the records and is not usually interested in collecting the debt. In most cases, the debt has been sold to an outside collector and the original creditor has charged off the balance on its ledgers and taken the loss, thereby removing your account and the debt from its radar screen.

My advice is to send a written response to the collector by return receipt mail that you are willing to settle the debt by paying $200 per month until the debt is paid and if that is not acceptable, you no longer wish to be contacted regarding the debt. The past due accounts and judgments will come off your credit report after seven years, and you can sleep well at night knowing you did your best to pay what you owe.

Take care of your credit!

2009 Hyundai Sonata SLX CRDi Road Test Review

HYUNDAI’S ENGINEERS and designers are right now working to bring to market what promises to be a revolutionary leap forward for the Korean giant-killer, in the form of the sleek upcoming 2010 Hyundai Sonata.

But for the moment, the current fourth generation Sonata, first released back in 2006, is Hyundai’s offering in the mid-size sedan segment - and the 2009 model is likely to be the last before the more aggressively-styled fifth generation arrives. Reason enough, we thought, to take one last look.

It may not be the most stunning sedan on the road, but the question for those seeking reliability and value in a family car is this: is the Sonata the one for me?

Styling

If the 2010 Sonata has the balance and style that the images that have spilled onto the interwebs suggest, the new model will likely be a stunner, with a coupe-like roofline, long bonnet and short rear deck. But, if we’re calling a spade a spade here, the current model is fairly ordinary to look at.

It’s not that the current Sonata is ugly though. There’s no specific feature of the car that jumps out as a horrible piece of design, but it can’t be called creative. This leads me to the only words that best describe Hyundai’s family sedan: bland and derivative.

Despite a facelift with this model, the headlights still say VZ Commodore, the rear-end says 2007 Honda Accord, and the rest of the car says very little at all.

It’s simply… there.

Style-wise, the Sonata is a safe choice. Not every buyer chooses a car on the strength of its styling - take the strong-selling Corolla for example. In the carpark, the Sonata’s pitch is to those looking for a medium to large car, conservatively styled and for just the right price.

On the plus side, it is a well put-together unit. Panel gaps are tight and even, as are the shut lines. The bonnet, doors and boot all offer a weighty and solid ‘clunk’ when you close them.

Thankfully, this same attention to build quality is also found inside the Sonata.

The Interior

As the old adage goes, beauty is only skin deep. A car doesn’t need to be a looker for it to be a good unit, and once you plant yourself in the Sonata, the visual side of the story changes: while somewhat spartan, the inside of the 2009 Sonata SLX is a nice place to be.

Style-wise, the lines of the dash, centre console and door trims flow nicely - there is a nice cohesiveness to the design here - and while it is perhaps also derivative, it doesn’t feel blatantly so. There are just the right amount of silver highlights and the plastics feel solid and sturdy.

To touch, the leather wrap of the steering wheel feels a class above its price point, while the position and appearance of the steering-mounted controls are both comfortable and stylish.

Under the bum, the driver’s seat feels flat and shapeless - a characteristic I suspect would become irritating on a long haul, as would the higher seating position. To be fair though, the appealing steering wheel, both tilt and reach-adjustable, makes up for these failings.

Oddly, the rear seats seem more comfortable than the front (momentarily evoking a thought of Police Academy’s Hightower character ripping out the front seat and driving from the back. If only I were tall enough to do the same…)

Speaking of Hightower, he’d be rapt to know that headroom and legroom is excellent, not only in the front but in the back as well.

Equipment and Features

With cruise control, a trip computer, and those steering-mounted controls, the only thing the SLX is really missing is climate control. Overall however, the feature set is well integrated and sensibly placed.

As with most of the Hyundai range, iPod, Aux and USB connectivity remain a pleasing sight in the cabin; features not universally found with many of the Sonata’s higher-priced peers.

On the safety front, the updated Sonata offers six airbags, but also adds ‘anti-whiplash’ active front head restraints, supporting the occupant’s head and back and minimising movement in the event of an impact, as well as softening the blow of a rear impact.

Electronic stability control and ABS brakes are standard across the Sonata range, while rear-parking sensors are standard on the Elite spec and optional for the SLX.

The Drive

The 2009 Hyundai Sonata can be had with either a 2.4 litre four-cylinder petrol engine, or Hyundai’s new 2.0 litre Common Rail Direct injection turbo-diesel.

The petrol engines are available with either a five-speed manual or a five-speed Selectronic automatic, with Hyundai Intelligent Vehicle electronic control, while the diesel mill can be paired with either a six-speed manual or a four-speed Selectronic automatic transmission with HiVec.

We tested the six-speed manual Sonata SLX CRDi, and the manual transmission was a delight to use, with smooth changes and a light but strong clutch feel.

While the Sonata offers the requisite punch to comfortably overtake, the small 2.0 litre diesel, developing 110kW at 3800rpm and 305Nm at between 1800-2500rpm, while feeling strong low down (low-end torque), ran out of puff toward the higher middle part of the rev range. But that’s diesels in general really.

It’s a nice unit though and with long legs for country touring. It’s certainly worth a close look by buyers who may have otherwise been considering a “six”.

On the fuel economy side, sixth gear and the small diesel ensured that any 100km/h freeway cruising would see the factory quoted 6.0 l/100km consumption achieved without breaking a sweat. (Of course, breaking a sweat wouldn’t really help on that score…)

Still, for the extra $2500 to get yourself into the diesel, and the higher cost of diesel fuel these days, you’d want to spend a lot of time on the freeway to make it worthwhile.

According to the boffins at Hyundai, the Australian-delivered 2009 Sonata benefits from suspension tuned specifically for our roads. It works well and goes about things without jarring, soaking up most secondary surfaces without complaint. For a family car where comfort is valued more highly by the majority of buyers, I’d say Hyundai has got the equation balanced about right.

For the money, and for its purpose, the Sonata glides along both freeways and mottled suburban streets as well as many of its mid-size peers, bettering some carrying ten grand (or so) more on their stickers.

Still, a hot handler it aint, with the steering feeling somewhat remote and the front end a little too eager to understeer, the Sonata - for now, at least - remains the slow and steady family hauler and less the “let’s go the back way home” pleasure-seeker.

At idle, the diesel drone of the CRDi is evident inside, though it’s pleasingly quiet at cruising speeds. For wind and road noise though, another tick - the Sonata does an admirable job of ensuring the radio is the most obvious sound in the cabin.

The Verdict

Perhaps I’ve been a little tough on the Sonata. With this car, you need to remind yourself of the value of the package. For a smidge over $30,000, you get a lot of car: one with the space and versatility of a traditional Aussie family ’six’, and, in the diesel, with the fuel economy of a small ‘four’.

At that price, its only real competitor is the Holden Epica - itself a rebadged Korean car. Of the two, I’d lean towards the Sonata without hesitation.

It’s a plenty decent drive if you’re looking for a mid-size sedan that will move you from A to B in comfort and without fuss - and let’s face it, that will satisfy a lot of family buyers. With pleasing-enough but somewhat anonymous lines, good economy and low maintenance costs, it’s a ‘win/win’ choice.

It might not have ‘aspirational’ written on it, but Hyundai’s Sonata has been improving with each model and represents solid buying value. If the factors I’ve mentioned above tick the boxes for you, you’ve found a winner in the Sonata.

Mike Likes

• Smooth transmission
• Stylish dash
• Low-end torque
• Reach-adjustable steering wheel
• iPod/Aux/USB Integration

Mike Dislikes

• Styling: not ugly, but not appealing
• Front seats
• Mid-range torque
• Absence of climate control

Aston Martin V12 Vantage Scores Class Win At Nurburgring 24hr

IT SAYS A LOT about a company when its CEO slides behind the wheel of one of its race cars for a bit of wheel-to-wheel action. It says even more when the CEO helps pilot that car to victory in the world’s most grueling endurance race.

Dr Ulrich Bez, the dynamic leader of one of Britain’s most famous exports, Aston Martin, has done exactly that, helping steer the just-launched V12 Vantage to class victory (and 21st place overall) at last weekend’s Nurburgring 24 hour enduro.

The V12 Vantage came first in the SP8 class, ahead of KTN’s Audi RS4, Team Gazoo III’s Lexus IS-F and Team Gazoo I’s Lexus LF-A. Assisting Dr Bez and taking turns in the V12’s cockpit were British journalist Richard Meaden, racing driver Oliver Mathai and Aston Martin’s Chris Porritt.

“For V12 Vantage we have demonstrated the reliability of our new car for all to see,” Dr Bez said after the race.

“I have said before that for me this race is the ultimate endurance test so for our new car to win the class on its debut and for our customer teams to perform so well amongst such respected competition is the perfect result for Aston Martin.”

“This week as we launched the V12 Vantage to the world’s media we have proved the car’s ability on the road, and we have ended it here at the Nürburgring by proving its ability on the track.”

The race-going V12 Vantage wasn’t all that dissimilar to the production model either, making the car’s class win all the more remarkable. The engine was virtually identical to that in the road car, with the only race specific additions being a modified suspension, racing slicks, stripped interior, roll cage and fire suppression system.

The V12-powered Brit reportedly had some competition from one of the Lexus LF-A prototypes, but after it caught fire and retired from the race the Aston had top spot all to itself.

Think you can handle all of the V12 Vantage’s ‘Ring-conquering might? The super-quick Aston goes on sale locally later this year, and with a retail price of $395,000 it’s quite the supercar bargain.

Better place your order quick though. No more than 25 V12s are expected to be brought over here, and most, if not all, of them are already spoken for.

UK Cops Get Jaguar XF Diesel S, Aussie Cops Put In Transfer Requests

RECENTLY WE HAD a look at the Vauxhall Insignia Sports Tourer that some British bobbies will soon be replacing their tired old Astras with, and that probably got a few Aussie cops jealous enough as it is.

Now though comes news that Jaguar is launching its own police package, in the shape of the Jaguar XF Diesel S, for the consideration of the UK police.

Developing 205kW from its 3.0 litre twin-turbo diesel V6 (no torque figure seems to have been disclosed), the coppers will find themselves hauling to 100km/h in almost bang-on six seconds.

“The Police Officers driving pursuit vehicles demand a very high level of performance and handling, as well as safety and comfort,” said Geoff Cousins, UK Managing Director for Jaguar Cars.

As you’d expect, the special Jag features all the usual fuzz-spec trimmings, including a roof-mounted light bar, side alley lights, and flashing lights in the grille.

Inside, the XF Diesel S carries the usual assortment of electronics, including radio, computer, emergency light kit, and donut tray (we couldn’t confirm that last one).

Chevrolet Camaro Convertible Gets 2011 Launch

THE LAST TIME we heard that the ragtop version of the fan-favourite Chevrolet Camaro was on track for a 2011 showroom debut, there appeared to be some uncertainty around the traps as to just how seriously we could all take that claim.

Now, General Motors US spokesperson Terry Rhadigan has confirmed that the Holden-engineered Camaro Convertible is in fact scheduled to hit showroom floors in early 2011, though a specific date or month wasn’t offered.

“The convertible was never canceled. It was retimed. It will be the first quarter of 2011 for the start of production,” Rhadigan said.

Rhadigan acknowledged that the original plan was for the convertible to debut early next year. With GM’s current woes though, it’s little surprise that the project has been pushed back a year.

“We always thought it would be one year after the coupe,” he said, “instead we are going two.”

Despite GM’s ongoing battle to stay afloat - and now with bankruptcy looking to be a dead certainty - the main issue holding up the convertible project was that the supplier for the folding roof mechanism was looking likely to go under.

The latest news however is that the supplier has sorted itself out, and its agreement with GM is back in place. With that final hurdle out of the way, the Camaro Convertible is on its way.

According to Rhadigan, the 2011 Chevrolet Camaro Convertible will debut with the same V6 and V8 engines currently offered with the coupe model.

Porsche Short $4.4b For Continued Operations, Close To Bankruptcy?

WHAT A TIME it’s been for Porsche lately. First the German supercar manufacturer began circling to take over its Volkswagen parent, and then, thanks to the global financial meltdown and finding itself stumbling for funds, the two began discussing a merger.

More recently, those merger talks were put on hold, with Volkswagen declaring Porsche unready for such a step.

Now, German magazine Der Spiegel is reporting that Porsche has found itself $15.3 billion in debt due to its recent manoeuvring to garner a 51 percent majority share in Volkswagen.

Worse still, the report claims the company is $4.4 billion short of the funds needed to keep its operations rolling, asking the German government for $179 million in emergency short term loans.

According to Der Spiegel, the situation at Porsche is so bleak that the company came desperately close to bankruptcy for a period in early March.

It has to be said that without any official acknowledgement from either Porsche of Volkswagen, it’s difficult to ascertain the accuracy of the report.

According to UK paper The Telegraph, Porsche is in talks with the Bank of Tokyo for a $1.3b loan, in addition to the help it has requested from the German Government.

This WILL be a case of “watch this space”.

BMW Motorsport Program Shrouded In Doubt

BMW MOTORSPORT BOSS Dr Mario Theissen has plunged the company’s racing program into uncertainty after revealing the Bavarian manufacturer may reconsider its future in Formula One and the World Touring Car Championship.

The automaker has been left frustrated by a series of controversies which have marred the start of the WTCC and F1 seasons, forcing BMW to potentially review its commitment to both categories.

The BMW board approved of plans to continue its participation in Formula One earlier in the year, but Dr Theissen says the result of negotiations over the 2010 regulations could prompt the company to reassess its position.

“If the framework and the conditions change greatly that would be a reason for us to review the project,” he said.

Dr Theissen has previously expressed concerns over the proposed budget cap and the difficulties his team may have reducing its expenditure.

“In one go you cannot just evaporate by a factor of three. A moving path, for example over two or three years, would be possible,” he told the German press.

BMW has also been involved in a scrap with the FIA at WTCC level, after lodging a protest against rivals SEAT over a perceived breach of the technical regulations.

After struggling to compete with the Spanish manufacturer towards the end of last season, the FIA altered the rules to promote a level playing field, restricting the boost pressure on SEAT’s turbo-diesel powered entries.

But in the aftermath of the Marrakech round earlier this month, it was revealed SEAT had been granted dispensation to increase its boost level to combat atmospheric conditions during the first three rounds of the season, without notifying rival teams.

He told Autosport: “In my opinion the situation is not sustainable and we are presently examining our WTCC commitment very critically.

“We have always been in touring car racing in some form or other, and we will continue in that way. But we have a very broad base of customers so it doesn’t necessarily have to be a works engagement.”

Citroen Looking To Be Europe’s Third Largest Carmaker

SURE, EVERYONE wants to be top of the pops: there’s Fiat pushing harder to become Europe’s biggest manufacturer and Volkswagen also working hard to loosen Toyota’s position on the podium in global markets.

Now, Citroen is coming to the party, with the manufacturer’s Vice President Jean-Marc Gales telling the Corriere della Serra newspaper that the French manufacturer would focus on alliances with other carmakers in a bid to move into Europe’s top three.

“It’s not important for us to produce 6 or 7 million cars to survive,” Gales told Corriere della Serra.

“We have another strategy, we believe in alliances, we cooperate with Ford and BMW on engines and gears, the most expensive parts to develop in a car,” he said.

Gales’ goals for the smaller half of PSA Peugeot Citroen are lofty to say the least, with the carmaker currently ranked seventh in Europe for sales, behind Fiat and its partner Peugeot in fifth place.

The top three in Europe at the moment is made up of Volkswagen, Ford, and Opel/Vauxhall rounding out the trio. With GM Europe’s ongoing troubles, third position may be up for grabs soon enough, but with Renault, Peugeot and Fiat between Citroen and the top three, the French carmaker has a fight on its hands.

In Australia, Citroen’s sales for April dropped 53.3 percent over the same time last year, but it is faring better in other markets and has a strong - if typically Gallic - model line-up.

2009 Mazda RX-8 Launched In Japan With New Featuresm

MAZDA HAS UPDATED its rotary-powered RX-8 for the Japanese market, loading up the four-door coupe with a range of goodies and gadgets designed to make life in the cockpit just a little bit easier.

Rain-sensing windscreen wipers are one such addition, while auto-on headlamps are another. Keyless entry and a keyless ignition are also standard kit across the JDM RX-8 range, and Aluminium Metallic and Metropolitan Grey Mica have been added to the colour palette.

As for when these changes will make their way onto Australian-delivered RX-8s, the official line from Mazda Australia is that it may be on the cards.

“It’s too soon to start talking about it, but it is definitely under consideration at the moment,” said Mazda’s Media Communications Manager, Lydia Richards.

Mazda wouldn’t be drawn on a timeline for a local release of the updated RX-8, but we’ll keeep you informed of any further developments.

2009 Toyota Aurion Touring Edition Released To Commemorate 50 Years Of Toyota In Australia

TOYOTA MARKS 50 years of Australian sales this year, and to celebrate the milestone the company has wheeled out a special-edition variant of its Aurion large sedan.

Based on the Aurion AT-X, the Toyota Aurion Touring Special Edition comes packed with a range of added equipment, effectively endowing it with $2700-worth of gear at no extra cost.

A rear spoiler and 17-inch alloys jazz up the exterior, as does a grille lifted from the Aurion Sportivo, a pair of sports pedals and a set of sports headlamps and taillights. There are also front foglamps, unique badging and front and rear parking sensors to help differentiate the Touring SE from the base model Aurion.

A six-disc CD changer, dual-zone climate-control, leather-wrapped steering wheel, leather gear knob and a trip computer spice up the interior, which should gel nicely with the Aurion’s standard power seats, windows, and mirrors. Considering the whole lot retails for $34,990 (plus on-roads), that’s not too bad a deal.

Couple all of that kit with the Aurion’s 200kW 3.5 litre V6, six-speed tiptronic auto, and standard stability control, traction control, ABS and comprehensive suite of airbags and you’ve got a very compelling large sedan. It’s now on sale nationally.

F1: Williams Submits Entry For 2010 Season

THE FORMULA ONE Teams Association’s bid to present a united front in sending an ultimatum to FIA President Max Mosley has received a blow after Williams submitted an entry for next year’s championship.

FOTA had written to Mosley on Sunday demanding the FIA scrap the planned 2010 regulations in favour of the current rules, or face the prospect of no team submitting an application by the May 29 deadline.

It is believed the letter detailed a plan for FOTA itself to regulate cost-cutting and assist smaller outfits while working to the 2009 regulations.

Ferrari team principal Stefano Domenical told reporters in Monaco the teams remain committed to reducing costs but on their terms.

“What we have asked is to go back to the rules of this year, the 2009 rules,” he said, “and then see together what we can do in order to make changes for next year.

“Bear in mind that for sure the cost is something that all the teams are fully committed to work on, but the cost is something that is related to the business of the teams.”

However, FOTA’s plans are now in disarray after Williams broke ranks with the teams despite being a signatory to the letter, casting doubt on the level of unity within the association.

Williams’ Chief Executive Officer Adam Parr though said the team remains committed to FOTA despite lodging its entry for 2010.

“The unity of FOTA is of paramount importance to Williams,” he said. “(Sunday) we joined the other members of FOTA in writing to the FIA to request a continuing effort to find a compromise concerning the regulations for 2010.”

Parr believes FOTA had made significant progress in its negotiations with the FIA, but said Williams’ was contractually obligated to sign on for the 2010 season.

“We believe that under the leadership of (Ferrari president Luca) di Montezemolo and (Toyota Motorsport boss) John Howett, FOTA has extracted some very significant concessions from the FIA,” he said.

“These include not only the procedural aspects of the budget cap but also other elements that will enable the higher budget teams to participate.

“Having said that, Williams has — and has always maintained — that we have a binding contract with both Formula One Management and the FIA to participate in the world championship from 2008 to 2012.

“We have been paid in full for our participation and we feel both morally and legally obliged to make it clear that we will participate in Formula One in the future as we have in the past 30 years.”

Bugatti Veyron 16.4 Grand Sport Production Under Way?

IN NEWS THAT should please millionaire convertible fans, Bugatti has begun production of the Veyron’s convertible sibling – the Bugatti Veyron 16.4 Grand Sport - at the company’s plant in Molsheim, France.

Unveilled last year at the Pebble Beach Concours d’Elegance in California, the question of whether the car would see the road was answered when the first production slot was auctioned off on the day.

Sales of the convertible Grand Sport are expected to be limited, with just 150 examples to be built, and the first 50 slots to be made available exclusively to existing Bugatti owners.

Powered by the same 747kW W16 engine as its hardtop brother, the Grand Sport has undergone extensive development to ensure it maintains the same structural integrity and strength that has made speeds upward of 400km/h possible for the ‘regular’ model.

Despite its 1.4 million Euro price tag, 30 of the convertible Veyrons are already spoken for, and the happy owners should take delivery some time around July.

2009 Volkswagen Touareg TDI BlueMotion Announced For Europe, Not Due For Aus Yet

VOLKSWAGEN HAS ANNOUNCED the addition of a BlueMotion model to the Touareg line-up in the European market, offering a 10 percent improvement in fuel economy.

Offering a fuel consumption figure of 8.3 l/100km, the Touareg TDI BlueMotion beats even the 9.05 l/100km of the Touareg V6 TSI Hybrid, revealed in February.

The petrol hybrid has it over the TDI BlueMotion in one area though, and that’s outright power. The TDI delivers a maximum output of 167kW, while the V6 TSI hybrid’s petrol and electric output weighs in at 279kW.

Volkswagen’s BlueMotion technology features an intelligent energy management system which charges the battery during the push phase of the vehicle, while 25mm lower suspension and low rolling resistance tyres contribute to the Touareg TDI BlueMotion’s fuel savings.

Despite its excellent fuel economy figures, we’re unlikely to see the Touareg TDI BlueMotion – or the rest of the BlueMotion range – in Australia any time soon.

TMR spoke with Volkswagen Group Australia’s Karl Gehling, who said that while the company is “eager to get the BlueMotion range onto Australian roads, it won’t happen until the [BlueMotion] technology can be offered with Volkswagen’s DSG transmission.”

According to Volkswagen’s spokesperson for Production Communications, Christian Haacke, that pairing may never come to pass, due to the extra cost and weight of the DSG transmission; suggesting such a combination would be contradictory to the aim of the BlueMotion technology.

Volkswagen already offers ten BlueMotion models in the European market, including the Golf, Jetta and Passat, featuring start-stop technology, low rolling resistance tyres and modified aerodynamics – including an enclosed underbody.