The key objective of any kind of investment is optimizing wealth-creation. This essentially means the rate of return should surpass the rate of inflation. Else, the actual value of investment made diminishes in net worth.
There are essentially two types of instruments for investment: equity and debt. Though debt instruments or other fixed income instruments like income funds, bonds, et cetera offer consistent returns they may be outdone by inflation in the long run.
The known remedy to make capital surpass inflation is to invest in equity instruments. This helps investor grow their capital much faster and will help beat inflation in spite of sharp periods of decline.
Equity investment refers to the buying and holding of shares of stock on a stock market by individuals and funds in anticipation of income from dividends and capital gain as the value of the stock rises.
Here are the top four factors in your 'points to remember' list:
1. Choose stocks based on the performance of the company
Collate historical data of the company in which you are planning to invest in and check their profit graph. They should be a minimum cap of around at least 20-25% on the returns from the capital invested by its shareholders.
Checking long term helps you assess the true value of the company while a shorter term of 6 months could just be a reflection of market mood rather than the solid foundation the company is based upon.
2. Strike the right balance and stick to it
It is essential to take a very disciplined approach towards your stock planning.
Be prepared to stumble over unexpected bumps when you start out or for that matter be prepared to be surprised from time to time as the volatility of the market is such.
The best results await those who participate in the long drawn out game that last well over a number of years to the tune of 10-12 years to be precise.
Strike a balance with your stocks, don't accumulate too many and then again don't invest in too little. A moderate diversification should be the key factor in striking this balance, i.e. perhaps say about 15 should be a good way to diversify for someone who wishes to stay invested in the long term.
Understand the companies you are invested in and also keep a tab of the trading volumes of a particular stock purchased. This will help you estimate the percentage of active participation in that stock and is also a test of its liquidity quotient.
Have a secure allocation plan in place, consult the experts and avoid temptation to buy too much into one single company.
3. Keep a tab and consistently evaluate the investments
Be in touch with every change that happens with regards to your stocks. During the lean times there might be good opportunities thrown up for the grabbing.
Don't lose sight of those if it makes investment sense for you. Figure out how you buy low at such points in time.
Keep track of the stock worth in order to determine if key elements that prompted you to buy the stocks in the first place are still secure in place or if your earlier expectations have been undermined.
Keep track of the prices on your finance worksheet and subject them to a quarterly and yearly review. This will help you reassess and reallocate according your current risk capacity.
4. Errors are an individual's portals of discovery
Your experience with stocks may be a mixed bag of both good and bad. Store away good pointers from the things that worked for you and learn from the bad experiences in perfecting your investment skills.
Begin the exciting journey of making your every penny count!
Wednesday, June 3, 2009
Wednesday, May 27, 2009
Barcelona beat Man United to win Champions League
Barcelona won the European Cup for the third time with a classy 2-0 victory over Manchester United in the Champions League final at the Stadio Olimpico in Rome on Wednesday.
Striker Samuel Eto'o struck the opener on 10 minutes when he cut in from the right past Nemanja Vidic and his low shot beat United goalkeeper Edwin van der Sar at his near post. Xavi cracked a free kick against the United post at the start of the second half before Lionel Messi sealed the win on 70 minutes when he headed home Xavi's cross.
Barcelona, also winners of Europe's premier club competition in 1992 and 2006, controlled the game against a curiously subdued Manchester United for all but the first 10 minutes. Early in the game, United's Cristiano Ronaldo cracked in a free kick that Barcelona keeper Victor Valdes could not hold. Park Ji-sung just failed to convert the loose ball.
Ronaldo continued to look lively right up until Barcelona took the lead against the run of play, with Eto'o showing great pace, control and skill to beat the United keeper.
From then it was Barcelona's game with United giving the ball away regularly and the Catalans kept control.
The second goal came 20 minutes from time when Messi showed great timing to nod in Xavi's hanging cross.
United had isolated chances to get back into the match but could not build any sustained pressure and Barcelona killed the game off with ruthless skill.
Striker Samuel Eto'o struck the opener on 10 minutes when he cut in from the right past Nemanja Vidic and his low shot beat United goalkeeper Edwin van der Sar at his near post. Xavi cracked a free kick against the United post at the start of the second half before Lionel Messi sealed the win on 70 minutes when he headed home Xavi's cross.
Barcelona, also winners of Europe's premier club competition in 1992 and 2006, controlled the game against a curiously subdued Manchester United for all but the first 10 minutes. Early in the game, United's Cristiano Ronaldo cracked in a free kick that Barcelona keeper Victor Valdes could not hold. Park Ji-sung just failed to convert the loose ball.
Ronaldo continued to look lively right up until Barcelona took the lead against the run of play, with Eto'o showing great pace, control and skill to beat the United keeper.
From then it was Barcelona's game with United giving the ball away regularly and the Catalans kept control.
The second goal came 20 minutes from time when Messi showed great timing to nod in Xavi's hanging cross.
United had isolated chances to get back into the match but could not build any sustained pressure and Barcelona killed the game off with ruthless skill.
Tuesday, May 26, 2009
A 'Buffy' movie without its maker? Joss Whedon speaks out!
Blasphemous. Insane. Moronic. Re-freakin'-diculous. Those are just some of the colorful reactions that greeted today's announcement that H'wood is planning to make a new Buffy movie without Joss Whedon (a.k.a. the worst idea in the history of civilization).
But one person has remained suspiciously silent throughout the escalating controversy: Whedon himself.
Until now, that is.
In an explosive Q&A conducted over e-mail, Whedon weighed in for the first time about the sure-to-be-hellacious Buffy reboot. What follows is a complete transcript of that interview...
What do you think about this Buffy movie they're making without you?
JOSS WHEDON: I hope it's cool.
Alright, so maybe I over-hyped our exchange a little bit. In my defense, it's all I could get out of him given the time constraints. (Whedon's crazy busy shooting the horror flick Cabin in the Woods and only had 10 seconds to spare.)
But while his words may have been brief, come on, the meaning behind them was anything but. At the very least, his statement is open to all kinds of interpretation. Is he taking the high road? Is he genuinely hopeful it won't suck? Is "cool" secret code for something else -- like "colossal failure," perhaps?
But one person has remained suspiciously silent throughout the escalating controversy: Whedon himself.
Until now, that is.
In an explosive Q&A conducted over e-mail, Whedon weighed in for the first time about the sure-to-be-hellacious Buffy reboot. What follows is a complete transcript of that interview...
What do you think about this Buffy movie they're making without you?
JOSS WHEDON: I hope it's cool.
Alright, so maybe I over-hyped our exchange a little bit. In my defense, it's all I could get out of him given the time constraints. (Whedon's crazy busy shooting the horror flick Cabin in the Woods and only had 10 seconds to spare.)
But while his words may have been brief, come on, the meaning behind them was anything but. At the very least, his statement is open to all kinds of interpretation. Is he taking the high road? Is he genuinely hopeful it won't suck? Is "cool" secret code for something else -- like "colossal failure," perhaps?
GM bankruptcy nears as bondholders shun tender offer
General Motors Corp has failed to persuade enough bondholders to accept a debt-for-equity swap, setting the stage for the largest-ever U.S. industrial bankruptcy within days.The event marks a critical disappointment for GM, the largest U.S. automaker and once considered the bellwether of U.S. manufacturing.
"I would say this is a sound rejection of an unsuitable offer," said Pete Hastings, a credit analyst at Morgan Keegan who has followed GM. "I have been saying for some time that this thing was dead on arrival and we were just waiting for the doctor to pronounce it dead. Now that's happened."
The largest U.S. automaker had so far failed to gain anywhere near the 90 percent of bondholder support desired to stave off bankruptcy, two sources familiar with the discussions told Reuters on Tuesday. Bondholders have until midnight to make their final decision on the tender.
As of midday Tuesday, the source said the company had only a "low-single-digit" percentage interest from bondholders.
But bondholders have balked at proposals that they forgive debt in exchange for a 10 percent stake in a restructured company.
GM had no comment on the bond exchange. The automaker said it would detail results of the exchange on Wednesday morning. Reuters sources said GM could file for bankruptcy some time after midnight Tuesday, but before June 1.
While the failure to reach a bondholder deal is a severe blow, GM did reach an agreement on Tuesday with the leadership of the United Auto Workers (UAW) union.
The key for GM's negotiations with the UAW has been how the two sides restructured payment terms on $20 billion that the automaker still owes to a trust fund for retiree health care (the Voluntary Employee Beneficiary Association, or VEBA).
The UAW agreed to take 17.5 percent of common stock in a restructured GM, a person familiar with the terms told Reuters. The union would also be paid $6.5 billion in preferred stock and would be granted a $2.5 billion note.
A deal on those terms would mean that the union was successful in taking on less risk than it would have under an earlier proposal from GM that would have given it 39 percent of the automaker's common stock.
As part of the plan, GM will offer buyouts to all UAW employees.
The UAW did not sugar-coat its view of GM's current condition.
"GM today stands at the very brink of bankruptcy," the union said in a document distributed to GM workers that detailed the concessions it had agreed to make.
The UAW rank and file will vote on the contract on Wednesday and Thursday. Union officials who met in Detroit on Tuesday unanimously endorsed the pact after a briefing with UAW President Ron Gettelfinger, a person at the meeting said Current shareholders would be left with just 1 percent of a restructured company.
"It's a slap in the face," said James Yarbrough, a retired accountant from Plano, Texas, referring to the 10 percent equity stake offer.
Yarbrough has invested $158,000 in GM bonds, which he first bought in 1994. He regrets buying more bonds in 2008, when he thought GM was about to make a turnaround.
A person familiar with Obama administration's thinking on the matter said the White House was continuing to engage with bondholders to reach agreement.
US GOV'T RAISES RISK
GM shares, which could be worthless in a bankruptcy, ended Tuesday trade up 1 cent at $1.44 on the New York Stock Exchange after trading between $1.12 and $1.84 on the day.
The U.S. government has provided a combined $36.6 billion to GM, Chrysler and their financing units since December. Other sources said the government would provide "adequate working capital" to GM during bankruptcy and would want to be as inactive as possible as a shareholder.
The sources did not detail figures but the Wall Street Journal reported the Treasury plans to inject $50 billion in various financings to back a GM workout, most of which would take the form of company equity. The Journal also said the government would increase its stake to 70 percent from 50 percent, to reduce GM's debt once it emerges from bankruptcy.
The sources said any GM bankruptcy would be more time-consuming than Chrysler's because of the complexity of GM's global network. But the government would like to get out of an ownership stake once it was certain that taxpayers' interests were protected in a going concern.
The government is also providing billions to Chrysler in bankruptcy and hoping to be a short-term investor.
Chrysler is seeking approval this week to sell itself to a "New Chrysler" owned by the U.S. and Canadian governments, Chrysler's union and Italian carmaker Fiat SpA. A hearing on the sale will take place on Wednesday.
On Tuesday, a U.S. federal judge denied a request by a group of Indiana pension funds to delay the company's sale hearing and remove the bankruptcy case to district court.
Chrysler's bankruptcy and the looming insolvency of GM has further rattled the industry's supplier base. U.S. auto suppliers will be in dire need of up to $8 billion in emergency government aid over the next few months particularly if GM enters bankruptcy, Michigan Gov. Jennifer Granholm said in Detroit.
BIDDING FOR OPEL
While much attention is on Washington and Detroit, talks continue in Europe over the possible sale of GM's Opel unit.
On Tuesday, Germany pressed three bidders for Opel to improve their offers for the carmaker, saying they needed to assume greater risks and make credible commitments to preserve jobs and sites.
Economy Minister Karl-Theodor zu Guttenberg told reporters after meeting Fiat Chief Executive Sergio Marchionne in Berlin that the Italian carmaker's offer looked serious but that rival bidders Magna and RHJ International remained in contention.
"There's no favorite," he said. "Everyone knows that improvements are still necessary."
In an unexpected twist, China's Beijing Automotive Industry Corp (BAIC) also submitted an offer, potentially turning the three-way race into a four-way battle. that would also include U.S. carmaker Chrysler.
How to use credit card reward points
Jayant Bhadauria, 34, head of education solutions at Adobe India, is expecting his second child this month. He has his heart set on a Shoppers' Stop pram that costs Rs 7,800. Says Bhadauria: "I liked the pram. To dish out Rs 7,800 would hurt, but since I have credit card points to redeem I don't mind the indulgence."
Credit cards don't just substitute for cash, they can also earn you reward points. "I use cards for their convenience and other benefits which I can milk," says Bhadauria. And you, too, can tap the monetary value of the points collected on your card.
How to accumulate points?
Every time you swipe your credit card to make a purchase, you collect reward points. Typically, you get one point per Rs 100-250 spent. This, however, depends on the card and the bank. For instance, banks offer more points on co-branded cards. State Bank of India gives one point per Rs 40 spent on its Gold Card and eight points per Rs 100 on its co-branded Tata Card.
The value of each reward point also varies across credit cards and banks. Says Sachin Khandelwal, head (cards), ICICI Bank : "The value of a point can be anywhere between 30 paise to a rupee and is also a function of the merchant partner in case of co-branded cards." For example, the value of one point on the SBI Gold Card is 70 paise, while it is Re 1 on the SBI-Tata Card.
The limitation with most accelerated reward points on co-branded cards, however, is that they can be redeemed only against products and services of the partnered establishment.
One also needs to remember that points get accumulated against spends (that too, not all of them), not for cash withdrawals.
How to redeem points?
What to redeem on. Earlier, banks offered a limited catalogue of products. Plus the prices were very high and one couldn't negotiate on them. But now there is a laundry list of what you can do with the points.
For starters, there is the conventional catalogue that includes apparel, gadgets, jewellery, luggage items, and the like. You can also encash your points against gift vouchers. For instance, with HDFC Bank's Gold Card you can get gift vouchers from Domino's, Cafe Coffee Day, Pantaloons, Westside, Lee, Music World and Landmark.
Going a step further, some banks have tie-ups with certain merchants where you can redeem points instantly. You don't have to contact the bank and get vouchers; you can pay using the points.
When the card is swiped, the reward points get reflected on the machine. So, if you have accumulated points worth, say, Rs 500 and you buy goods worth Rs 1,000, the merchant will offer you the choice of using your points for payment.
Some banks now offer air tickets on reward points, a feature that was earlier limited to co-branded cards. For instance, HDFC Bank has tied up with Jet Airways , Indian and Kingfisher Airlines to allow its card users to convert their reward points into air miles. The value of one air mile is usually equal to one reward point.
"The air miles required to get complimentary tickets would depend on the airline and the travel sector," says Parag Rao, executive vice-president, head (product and portfolio management), credit cards, HDFC Bank.
Some banks, like Bank of Baroda , also let you redeem your reward points against cash. That is, cash corresponding to your reward points are credited to your account. Deutsche Bank does the same on its Gold Card, but also offers a gift catalogue.
Procedure. You can redeem your points by filling up a redemption coupon which is there on banks' website. You could also use the phone banking option. For web-enabled credit card holders redemption can happen online. The banks can take anywhere between a week to a month to redeem the points.
How to bag the best?
With so many cards, each with multiple features, how do you know which one to pick. Bhadauria wants features, flexibility and convenience from his credit cards. "Of my five cards, I use HDFC Master Titanium card the most since I can pay the bills online and it gives me higher reward points for it. The card also offers many options to redeem my points," he says.
Figure out what you want. If you are a frequent air traveler, then an airline-bank co-branded card may work for you.
Another thing to note is the value of points. Says Nirupam Sahay, chief marketing officer, SBI Cards: "Points accumulated and their value is important, in addition to the wide choice of redemption options." For example, the co-branded ABN AMRO MakeMyTrip Go Card offers three reward points per Rs 100 spent. But, on purchases made on MakeMyTrip, the points range from 10 to 30. The reward points can be redeemed as cash back into your account.
Now, more cards are offering the cash-back option on reward points. Choose the card that offers you maximum cash-back on your frequent spends and offers an array of redemption choices.
All banks display their products online and have compare tools to help you pick the best.
Use these to compare the features and find the card that suits you best.
Don't forget the expiry date. All your hard work would go waste if your points expire.
However, most banks have started doing away with the expiry period.
For the smart shopper, the credit card is worth more than just what it buys.
Credit cards don't just substitute for cash, they can also earn you reward points. "I use cards for their convenience and other benefits which I can milk," says Bhadauria. And you, too, can tap the monetary value of the points collected on your card.
How to accumulate points?
Every time you swipe your credit card to make a purchase, you collect reward points. Typically, you get one point per Rs 100-250 spent. This, however, depends on the card and the bank. For instance, banks offer more points on co-branded cards. State Bank of India gives one point per Rs 40 spent on its Gold Card and eight points per Rs 100 on its co-branded Tata Card.
The value of each reward point also varies across credit cards and banks. Says Sachin Khandelwal, head (cards), ICICI Bank : "The value of a point can be anywhere between 30 paise to a rupee and is also a function of the merchant partner in case of co-branded cards." For example, the value of one point on the SBI Gold Card is 70 paise, while it is Re 1 on the SBI-Tata Card.
The limitation with most accelerated reward points on co-branded cards, however, is that they can be redeemed only against products and services of the partnered establishment.
One also needs to remember that points get accumulated against spends (that too, not all of them), not for cash withdrawals.
How to redeem points?
What to redeem on. Earlier, banks offered a limited catalogue of products. Plus the prices were very high and one couldn't negotiate on them. But now there is a laundry list of what you can do with the points.
For starters, there is the conventional catalogue that includes apparel, gadgets, jewellery, luggage items, and the like. You can also encash your points against gift vouchers. For instance, with HDFC Bank's Gold Card you can get gift vouchers from Domino's, Cafe Coffee Day, Pantaloons, Westside, Lee, Music World and Landmark.
Going a step further, some banks have tie-ups with certain merchants where you can redeem points instantly. You don't have to contact the bank and get vouchers; you can pay using the points.
When the card is swiped, the reward points get reflected on the machine. So, if you have accumulated points worth, say, Rs 500 and you buy goods worth Rs 1,000, the merchant will offer you the choice of using your points for payment.
Some banks now offer air tickets on reward points, a feature that was earlier limited to co-branded cards. For instance, HDFC Bank has tied up with Jet Airways , Indian and Kingfisher Airlines to allow its card users to convert their reward points into air miles. The value of one air mile is usually equal to one reward point.
"The air miles required to get complimentary tickets would depend on the airline and the travel sector," says Parag Rao, executive vice-president, head (product and portfolio management), credit cards, HDFC Bank.
Some banks, like Bank of Baroda , also let you redeem your reward points against cash. That is, cash corresponding to your reward points are credited to your account. Deutsche Bank does the same on its Gold Card, but also offers a gift catalogue.
Procedure. You can redeem your points by filling up a redemption coupon which is there on banks' website. You could also use the phone banking option. For web-enabled credit card holders redemption can happen online. The banks can take anywhere between a week to a month to redeem the points.
How to bag the best?
With so many cards, each with multiple features, how do you know which one to pick. Bhadauria wants features, flexibility and convenience from his credit cards. "Of my five cards, I use HDFC Master Titanium card the most since I can pay the bills online and it gives me higher reward points for it. The card also offers many options to redeem my points," he says.
Figure out what you want. If you are a frequent air traveler, then an airline-bank co-branded card may work for you.
Another thing to note is the value of points. Says Nirupam Sahay, chief marketing officer, SBI Cards: "Points accumulated and their value is important, in addition to the wide choice of redemption options." For example, the co-branded ABN AMRO MakeMyTrip Go Card offers three reward points per Rs 100 spent. But, on purchases made on MakeMyTrip, the points range from 10 to 30. The reward points can be redeemed as cash back into your account.
Now, more cards are offering the cash-back option on reward points. Choose the card that offers you maximum cash-back on your frequent spends and offers an array of redemption choices.
All banks display their products online and have compare tools to help you pick the best.
Use these to compare the features and find the card that suits you best.
Don't forget the expiry date. All your hard work would go waste if your points expire.
However, most banks have started doing away with the expiry period.
For the smart shopper, the credit card is worth more than just what it buys.
2009's fastest cars under $100,000
Speed-obsessed drivers used to have to shell out big bucks for high performance. Want to go zero to 60 mph in 2.46 seconds? That'll be $1.5 million for a Bugatti Veyron, please.
Today, however, consumers see speed as more of a right than a privilege. Many automakers agree and, while they're not delivering the same sort of performance as one finds in the Veyron, several models can get to 60 nearly as fast--without costing more than $100,000.
"Every generation of performance autos gets a little bit better," explains Mike Omotoso, senior manager of Global Powertrain Forecasting at J.D. Power & Associates. "Only supercars used to go 0-60 in less than four seconds. Now 3.5 to four seconds is just the price of admission in this segment."
And the performance segment is broadening. It's not just angular, low-riding sports cars that make up the speed category. Many are now big, bold power sedans. Longtime luxury manufacturers are even keeping up with the sports-car makers, so those in the market for a new car can stop dreaming when it comes to speed and start deciding which package they want it wrapped in.
Behind the numbers To find the fastest 2009 cars under $100,000, we looked simply at automaker-provided data models that reach 60 mph the fastest. Unfortunately, there is no standardized form of measurement of 0-to-60 time across the auto industry. The data can vary due to a number of factors--such as the type of tire, road surface, weather conditions, etc.--and all manufacturers have their own testing facilities. Nevertheless, across the manufacturer-provided information, the results were varied: sports cars, muscle cars and high-powered luxury cars. Where 2009 data was not yet available, we used data from the 2008 model.
The top of our list belongs to a curvy speed machine: the 2009 Nissan GT-R R35. Born of the legendary Nissan Skyline GT-R models dating back to 1969, the 2009 GT-R officially drops the Skyline name. At 480 horsepower, it hits the 60 mph mark in 3.3 seconds and tops out at 193 mph.
This car is the fastest in the pack, but it doesn't necessarily make a statement--it might even get through a city commute without straining too many necks because, while it's sporty, it doesn't stand out the way other performance cars do.
Lotus, a British manufacturer of performance cars since the 1950s, does stand out, however, and uses a lightweight advantage to get two models onto our list: the Lotus Elise SC and the Lotus Exige S 240.
"[Some companies] are getting better performance by using lighter materials," says Omotoso. "Lighter cars go faster and get better fuel economy." Lotus models couple middleweight engines with light frames and aerodynamic designs to create cars that get stellar performance without the soaring prices of high-end engines.
Both cars cost a pretty penny--the S 240 clocks in at about $65,000 while its little brother costs about $10,000 less. But both reach the 60 mph mark quickly and both, with their sleek designs, definitely make a statement.
American Classics, Updated If a Lotus is a little too bold to satisfy one's need for speed, there are always the updated American classics that serve more or less the same purpose.
"There's still room for the good old American muscle car," says Omotoso, who believes enthusiasts for timeless American favorites will exist for years to come. "People are demanding cars that remind them of their youth. These cars need interior and exterior touches of nostalgia to remind this audience of the original versions."
Cars that fit the bill are the Corvette Z06, which hits 60 mph in 3.7 seconds, as well as two modified Ford Mustangs. For those more interested in buying American and big performance, but don't care as much about nostalgia, there's the Dodge Viper, which reaches its heart-pounding 0-60 mph in 3.5 seconds with the second most powerful engine on our list.
Speed Meets Comfort But speed also comes in some surprising packages, particularly luxury models that don't--on first appearance--look as though they pack quite the same punch. But they do.
Mercedes-Benz has three 2009 models on our list. The C63 AMG, Mercedes-Benz's base-level performance sedan, sports one of the weaker engines on our list, but with a 0 to 60 mph of 4.3 seconds, it's doubtful any driver would notice. Matching its speed and power, believe it or not, is a wagon--the E63 AMG. It may not have the cool factor of a Corvette but keeping pace with one is pretty cool in its own right. A Cadillac, the 2009 CTS-V, also makes the list after getting an upgrade. (So much for the old-man image.) Despite its large and heavy styling, the CTS-V hits 60 mph in 3.9 seconds and reaches a top speed of 191 mph.
So with the category of speedy cars expanding, could they eventually muscle out demand for cars that cost five or 10 times as much? Omotoso doubts it.
"People know names like Ferrari, and there are enough millionaires there's always going to be a demand for those cars. They're a combination of performance and heritage, and a Ferrari customer isn't the same as a Corvette customer."
Or a luxury sedan customer, for that matter. But with the performance market expanding, they can at least all keep pace with one another.
Today, however, consumers see speed as more of a right than a privilege. Many automakers agree and, while they're not delivering the same sort of performance as one finds in the Veyron, several models can get to 60 nearly as fast--without costing more than $100,000.
"Every generation of performance autos gets a little bit better," explains Mike Omotoso, senior manager of Global Powertrain Forecasting at J.D. Power & Associates. "Only supercars used to go 0-60 in less than four seconds. Now 3.5 to four seconds is just the price of admission in this segment."
And the performance segment is broadening. It's not just angular, low-riding sports cars that make up the speed category. Many are now big, bold power sedans. Longtime luxury manufacturers are even keeping up with the sports-car makers, so those in the market for a new car can stop dreaming when it comes to speed and start deciding which package they want it wrapped in.
Behind the numbers To find the fastest 2009 cars under $100,000, we looked simply at automaker-provided data models that reach 60 mph the fastest. Unfortunately, there is no standardized form of measurement of 0-to-60 time across the auto industry. The data can vary due to a number of factors--such as the type of tire, road surface, weather conditions, etc.--and all manufacturers have their own testing facilities. Nevertheless, across the manufacturer-provided information, the results were varied: sports cars, muscle cars and high-powered luxury cars. Where 2009 data was not yet available, we used data from the 2008 model.
The top of our list belongs to a curvy speed machine: the 2009 Nissan GT-R R35. Born of the legendary Nissan Skyline GT-R models dating back to 1969, the 2009 GT-R officially drops the Skyline name. At 480 horsepower, it hits the 60 mph mark in 3.3 seconds and tops out at 193 mph.
This car is the fastest in the pack, but it doesn't necessarily make a statement--it might even get through a city commute without straining too many necks because, while it's sporty, it doesn't stand out the way other performance cars do.
Lotus, a British manufacturer of performance cars since the 1950s, does stand out, however, and uses a lightweight advantage to get two models onto our list: the Lotus Elise SC and the Lotus Exige S 240.
"[Some companies] are getting better performance by using lighter materials," says Omotoso. "Lighter cars go faster and get better fuel economy." Lotus models couple middleweight engines with light frames and aerodynamic designs to create cars that get stellar performance without the soaring prices of high-end engines.
Both cars cost a pretty penny--the S 240 clocks in at about $65,000 while its little brother costs about $10,000 less. But both reach the 60 mph mark quickly and both, with their sleek designs, definitely make a statement.
American Classics, Updated If a Lotus is a little too bold to satisfy one's need for speed, there are always the updated American classics that serve more or less the same purpose.
"There's still room for the good old American muscle car," says Omotoso, who believes enthusiasts for timeless American favorites will exist for years to come. "People are demanding cars that remind them of their youth. These cars need interior and exterior touches of nostalgia to remind this audience of the original versions."
Cars that fit the bill are the Corvette Z06, which hits 60 mph in 3.7 seconds, as well as two modified Ford Mustangs. For those more interested in buying American and big performance, but don't care as much about nostalgia, there's the Dodge Viper, which reaches its heart-pounding 0-60 mph in 3.5 seconds with the second most powerful engine on our list.
Speed Meets Comfort But speed also comes in some surprising packages, particularly luxury models that don't--on first appearance--look as though they pack quite the same punch. But they do.
Mercedes-Benz has three 2009 models on our list. The C63 AMG, Mercedes-Benz's base-level performance sedan, sports one of the weaker engines on our list, but with a 0 to 60 mph of 4.3 seconds, it's doubtful any driver would notice. Matching its speed and power, believe it or not, is a wagon--the E63 AMG. It may not have the cool factor of a Corvette but keeping pace with one is pretty cool in its own right. A Cadillac, the 2009 CTS-V, also makes the list after getting an upgrade. (So much for the old-man image.) Despite its large and heavy styling, the CTS-V hits 60 mph in 3.9 seconds and reaches a top speed of 191 mph.
So with the category of speedy cars expanding, could they eventually muscle out demand for cars that cost five or 10 times as much? Omotoso doubts it.
"People know names like Ferrari, and there are enough millionaires there's always going to be a demand for those cars. They're a combination of performance and heritage, and a Ferrari customer isn't the same as a Corvette customer."
Or a luxury sedan customer, for that matter. But with the performance market expanding, they can at least all keep pace with one another.
Saturday, May 23, 2009
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