It is no surprise that U.S. automobile dealers have been in a tizzy the past few months as the Consumer Financial Protection Bureau (CFPB) has been rattling its swords threatening to ban them from marking up interest rates on car loans, a sacred profit center for dealerships. Using methodology that assumes a person’s race can be determined by their last name and their gender by their first name, the CFPB claims that certain protected classes are being discriminated against in terms of being charged higher interest rates and thus the practice must stop.
What is a surprise is that Congress is equally annoyed with the agency’s strategy and lack of transparency, and recently announced new regulations limiting their power. No matter the outcome, there is a real possibility that the unintended consequences of the CFPB’s actions will be higher car loan rates for you. (Read More…)
This week marks the 50th anniversary of the November 22, 1963 assassination of U.S. President John F. Kennedy. Shortly thereafter, the city of South Bend, Indiana suffered another tragedy: the announcement of the closing of the American factories of the 111-year old Studebaker Automobile Company on December 9, 1963. Over 7,000 local workers engaged in building the company’s Avanti and Lark models would lose their jobs – it was not the most joyous of holiday seasons in South Bend.
We will leave the story of Studebaker’s demise to other sources, like this fine article over at Ate Up With Motor. I traveled to Indiana recently to cover the Studebaker National Museum but discovered that fellow South Bend native Jim Grey had just written an excellent series about the collection for our friends at Curbside Classic. Undeterred, I decided to follow the story of one fascinating car on display and discovered some nutty tales from the company’s old test track, the Studebaker Proving Grounds. (Read More…)
Tesla founder Elon Musk recently announced that it was feasible to build a giant vacuum tube from Los Angeles to San Francisco and transport people the 400 miles between the two cities in 35 minutes. There is a better chance of this so-called “Hyperloop” ever happening than Musk being allowed to sell his electric vehicles directly to the public through his own stores in more than a handful of states. Musk must face reality and stop trying to change franchise dealer laws if he wants Tesla to sell cars through a dealer network that has a true presence in the marketplace. He must embrace the current system and start signing up existing stores.
If you accept the idea that a car can have two personalities, then you can be cheered by the fact that your Honda S2000 will always have a garage mate. Cruise conservatively and you may as well be driving a Miata, albeit the world’s roughest riding and loudest MX-5. Find a twisty back road […]
Car salesmen call buyers like me, “squirrels.” It seems like whenever I buy a new car, I pull a handbrake 180 turn at the last moment and purchase a completely different vehicle than originally planned. Last week I was so close to buying a new Mustang GT with the Track Package that a friend at Ford was […]
I do not understand the attraction of matte finishes on new cars. Most luxury automakers offer this ugly flat paint option, charging upwards of $5,000 over a standard finish. It is all the rage here in Southern California but I am here to tell you: matte ain’t phat. (Read More…)
During all the turmoil facing hybrid automaker Fisker Automotive recently, from closing its doors to a possible resuscitation led by Bob Lutz, one thing has remained constant: the rapidly collapsing values of the Fisker Karma cars themselves. (Read More…)
We are bombarded with messages about the dangers of drunk driving, of the hazard of talking and texting on cell phones while driving, and the need to give a wide berth to folks driving Zipcars. We think there are many other varieties of unsafe motorists that get no attention from the media. As a public service, let’s take a look five subtle, but equally scary, drivers that make the highways a real challenge. (Read More…)
You are looking at the rarest Mercedes-Benz vehicle ever built: a 2011 GLK350 AMG that I spotted last week. How uncommon is this SUV? The exact production number was zero as that model does not exist. It appears the owner of the car added an AMG emblem to its hatch, part of an epidemic of de-badge and re-badge engineering happening here in Southern California. (Read More…)
I will admit that I am a Barrett-Jackson Collector Car Auction fanboi. I spent last week in Detroit during the NAIAS, and thus had to skip my annual trip to Scottsdale, Arizona for their auction extravaganza, one of the greatest automotive events in this country. However, amidst all the breathless reporting about Barrett-Jackson selling the original Batmobile for $4.6M, you might have missed the story of a rare fail by the auction giant. (Read More…)
Fraud Rule Number One: no matter how cute your girlfriend may be, do not include her in the picture on your fake ID.
Welcome to Part Two of our exclusive series on the rollicking world of Los Angeles luxury car buyers defrauding automakers, banks and dealers. In Part One we looked at Lemon Law scofflaws and odometer clockers. Today we will examine the crooked schemes that can be used to obtain the vehicle of your dreams. We will begin with the case of robber Baron Haghighi, who last month tried to con a few cars out of several Southern California high-line dealerships. (Read More…)
I recently stood on the showroom floor of a Los Angeles-area luxury car dealership as their sales manager pointed out a middle-aged couple browsing the lot. “We will never sell them a car,” he said. “In fact, we are going to politely ask them to leave.” Why? “One of our salespeople recognized them. They are professional Lemon Law scammers. They have hit two other dealers but they are not going to hit us.” (Read More…)