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After sales, will shoppers pay full price again?
NEW YORK (AP) -- Consumers are now used to the steep discounts offered by stores to boost sales during the recession-ruined holiday season.
Now, retailers are wondering when shoppers will again pay full price for merchandise.
Anxieties about how rampant discounts have affected shoppers' psyches and stores' profits are running high ahead of expected dismal December sales figures on Thursday.
Merchants worry they'll also have to quickly slash prices on spring goods to attract customers. Already, some retailers are cutting prices on selected spring styles to lure sale-savvy shoppers.
The chairman of an investment banking firm specializing in retailing says "It is a vicious cycle that no one wants to continue." In addition, retailers expect competition from a rise in liquidation sales.
(Copyright 2009 by The Associated Press. All Rights Reserved.)
Posted: 12:30am EST January 7, 2009
Hyundai: Can't make car payments? Just return it.
NEW YORK (AP) -- Hyundai says it will cover the depreciation on any returned leased or financed vehicle for the first 12 months to some customers "who are stuck" and find themselves unable to make their car payments.
The "Hyundai Assurance Program" only applies to customers stricken by misfortune outside of their control. That could include loss of their job, becoming disabled or losing their driver's license for medical reasons.
Customers must also have made at least two payments on the car already. In addition, Hyundai will only refund the depreciation on the returned car up to $7,500.
One Hyundai executive says it's the company's way of dealing with the economic anxiety that has caused consumers to park their desires for a new car.
The recession has hit the carmaker hard. Its December sales in the U.S. fell 48 percent. Sales for all of 2008 declined 14 percent.
(Copyright 2009 by The Associated Press. All Rights Reserved.)
Posted: 7:07pm EST January 5, 2009
Citgo suspends low-income heating oil program
BOSTON (AP) -- An oil company owned by the Venezuelan government is stopping its shipments of heating oil for poor families in the United States.
That word comes from the non-profit organization that distributes the fuel.
It says Citgo, a Venezuelan subsidiary based in Texas, is citing the falling price of oil, and the world's economic crisis.
Under the program, Venezuela gave fuel to 400,000 households in 23 states through a charity run by Joseph Kennedy. He's the eldest son of the late Sen. Robert F. Kennedy.
It sent 100 gallons of free oil a year to eligible households.
But critics said it was just a ploy by Venezuelan leader Hugo Chavez to undermine the Bush administration.
Chavez, who's a socialist, is a staunch critic of President Bush and has called him "the devil."
(Copyright 2009 by The Associated Press. All Rights Reserved.)
Posted: 5:28pm EST January 5, 2009
Feds start wait list for DTV converter box coupons
WASHINGTON (AP) -- The Commerce Department says there's a waiting list for anyone applying for federal coupons to pay for converter boxes ahead of the transition to digital television broadcasts.
Those on the list may not get their voucher in time for next month's switchover.
The waiting list started forming Sunday after the $1.34 billion funding limit set by Congress was met. The list already has 103,000 requests for coupons.
The agency will send out coupons to those on the list only as unredeemed coupons currently in circulation expire. Meanwhile some lawmakers say more money needs to be freed up to help consumers make the transition.
Those with cable or satellite TV or anyone who buys a television set with a digital tuner has nothing to worry about.
(Copyright 2009 by The Associated Press. All Rights Reserved.)
Posted: 5:50am EST January 6, 2009
Panel wants fuel taxes hiked to fund highways
WASHINGTON (AP) -- A federal commission created by Congress is recommending a 50-percent increase in gasoline and diesel fuel taxes as a way to finance highway construction and repair.
The National Commission on Surface Transportation Infrastructure Financing is the second group in a year to call for higher fuel taxes.
In a report expected later this month, members of the commission say they will urge Congress to raise the gas tax, now 18.4 cents a gallon, by 10 cents and the diesel fuel tax, now 24.4 cents a gallon, by 12 to 15 cents. At the same time, the commission will recommend tying the fuel tax rates to inflation.
A tax increase of this magnitude would be politically treacherous for Democratic leaders in Congress. President-elect Barack Obama has expressed concern about raising gas taxes in the current economic climate. But commission members say the government must find the money somewhere.
(Copyright 2009 by The Associated Press. All Rights Reserved.)
Posted: 1:57pm EST January 1, 2009
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