The Truth About Cars » Steven Lang http://www.thetruthaboutcars.com The Truth About Cars is dedicated to providing candid, unbiased automobile reviews and the latest in auto industry news. Wed, 22 Oct 2014 19:11:51 +0000 en-US hourly 1 http://wordpress.org/?v=4.0 The Truth About Cars is dedicated to providing candid, unbiased automobile reviews and the latest in auto industry news. The Truth About Cars no The Truth About Cars editors@ttac.com editors@ttac.com (The Truth About Cars) 2006-2009 The Truth About Cars The Truth About Cars is dedicated to providing candid, unbiased automobile reviews and the latest in auto industry news. The Truth About Cars » Steven Lang http://www.thetruthaboutcars.com/wp-content/themes/ttac-theme/images/logo.gif http://www.thetruthaboutcars.com New Or Used? : Try To Hit Em’ Where They Ain’t http://www.thetruthaboutcars.com/2014/06/new-or-used-try-to-hit-em-where-they-aint/ http://www.thetruthaboutcars.com/2014/06/new-or-used-try-to-hit-em-where-they-aint/#comments Mon, 30 Jun 2014 19:24:37 +0000 http://www.thetruthaboutcars.com/?p=856001 Hi Steve, I have been trying to find a Lexus GX470 for several months now. Either a 2012 or a 2013. What I have found is that these vehicles simply don’t exist here in Tennessee. I have gone through every Lexus dealer in the state, along with a few others that are out of state. […]

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Hi Steve,

I have been trying to find a Lexus GX470 for several months now. Either a 2012 or a 2013.

What I have found is that these vehicles simply don’t exist here in Tennessee.

I have gone through every Lexus dealer in the state, along with a few others that are out of state. I can’t find a GX anywhere.

So I thought that maybe I should try to look at a Toyota Sequoia, or maybe even a Toyota Tundra instead. I have found a few of these vehicles at the dealerships, but the prices are stupid high, and I just can’t justify paying what they want me to pay.

I am a cash customer, and I don’t think I’m too picky when it comes to cars. What I wanted to ask you is whether you can actually find a good deal on a late model GX at the auctions.

Steve Says:

No.

As of today there isn’t a single 2012 or 2013 Lexus GX that is listed for sale at the dealer auctions, and there are several reasons for that.

First, no new car dealership is going to get rid of a popular car that they can sell for a very stiff price premium.

That Lexus GX470 that goes off-lease is going to be looked at online by every Lexus dealer in the region before it ever winds up at the auction. If that popular SUV is even in lousy shape, they will still buy it.

When it comes to the most popular vehicles, those new car dealerships are in the pole position to make a strong profit thanks to CPO programs, today’s lenient sub-prime financing policies, and the salient fact that nearly everyone looking for a late model Lexus will shop the dealer first.

And it gets even worse for the cash customer. Certain vehicles, such as that Lexus GX and the Toyota Land Cruiser, are extremely popular overseas. Even if that off-lease vehicle looks like it got into a fight, and lost, any new car franchisee who has decent relations with wholesalers will make arrangements to flip that vehicle in very short order and get it sold to an exporter.

So the question now becomes, “Are there other avenues to buy a popular late model vehicle at the auctions?”

The answer is, yes. There are three opportunities.

The first are repossessions. Toyota Motor Credit and other financial institutions that specialize in primarily serving one manufacturer tend to give new car dealers the priority. They will even have “closed auctions” where only new car dealers for that particular brand will be allowed to bid on those vehicles. However, large independent banks such as Citibank Financial and Capital One offer their repossessions to all dealers at the auctions, and this is also true for many smaller banks and finance companies as well.

Second are traded-in vehicles. You are not likely to find many late models traded-in these days. But sometimes you get lucky and either find that needle in the haystack. That needle you find though is usually not a popular one. You are far more likely to find a tough to sell vehicle in this situation, but there will be some breathing room over the wholesale versus the retail price.

Finally, you have wrecked vehicles. Virtually every vehicle that is totaled out and has some value to it will wind up at a salvage auction. Exporters tend to be a very strong presence at these sales because the cost for overseas labor is a very small fraction of what it is here in the United States. These vehicles will be purchased, put in containers with whatever parts are needed to semi-accurately repair these vehicles, and they will be sent abroad where less costly labor will help put the vehicle back together. The North American market has become a hotbed for this type of activity thanks to the high content (features and options) of vehicles available here versus those vehicles in developing markets.

The key to getting a good deal at the auctions is to, “Hit em’ where they ain’t”. A high end Lexus or Toyota SUV is not where you’ll find that opportunity. Unpopular vehicles though can often have a healthy 20% to 35 % discount from the retail environment, but that’s not taking into account transport, reconditioning costs, and the substantial overhead of actually operating a car dealership.

So you want a good cheap vehicle at an auction? Go for an unpopular and well-made one. Think less about a loaded Toyota Sienna or Honda Odyssey, and more about a Mazda 5 or Nissan Quest. The Mazda 3 is super-expensive. A Dodge Dart? Not so much. Hope this helps.

Steve Lang can always be contacted at steve.lang@thetruthaboutcars.com

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Hammer Time: The $700 Repo http://www.thetruthaboutcars.com/2014/06/hammer-time-the-700-repo/ http://www.thetruthaboutcars.com/2014/06/hammer-time-the-700-repo/#comments Sat, 28 Jun 2014 02:07:16 +0000 http://www.thetruthaboutcars.com/?p=854689 My brother-in-law’s 1997 Honda Civic took a vacation recently, and it only cost me about $700. The customer who escorted the Civic to the humidity ridden swamps of Crystal Lakes, Florida, let’s call him, Mud, had already been financing a 2005 Ford Freestar from my dealership. Some weeks he would pay on time. Other times, […]

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My brother-in-law’s 1997 Honda Civic took a vacation recently, and it only cost me about $700.

The customer who escorted the Civic to the humidity ridden swamps of Crystal Lakes, Florida, let’s call him, Mud, had already been financing a 2005 Ford Freestar from my dealership.

freestar

Some weeks he would pay on time. Other times, he would be late. The phone always worked though, and since the Freestar had been one of my unsellable cars of the past year, I was just happy to have the vehicle out there to what I hoped would be a good owner.

If only it were so.

One day, I got a call from Mud while his chain smoking soon-to-be pregnant ex-girlfriend was screaming at him in the background.

“Hello?”

“Steve, I’m returning the Freestar today. Me and Wildflower are splitting  and…. shut up! SHUT UP! SHUT UP!!!”

“Aaahhh… that’s fine. Just call me back in a few.”

The few turned out to be a day.

“Hello?”

“Hey Steve. That  Civic you have on the lot. Can I exchange that with the Freestar and just make the same payment?”

Normally I say no to these things because the math doesn’t work out and, even if it does, exchange customers often get into the habit of delaying maintenance on their vehicles. Right around oil change time, these customers will come back to the lot and ask for an upgrade. What I do instead is tell them of a place a mile down the road where they can get the oil changed for $20. The cheap price has a surprisingly nice halo effect on the affordability of the vehicle they drive, and then I never hear from them until I start having payment issues.

freestar2

Mud wasn’t bad when it came to payments. But his ex-girlfriend’s smoking meant that the Freestar would need to have the interior detailed, and God knows what else.

“Bring the Freestar down and let me see what we can do.”

When I saw the platinum colored Freestar, I was both surprised and not surprised. The interior was still in decent shape. It had a faint smell of smoke, but not too bad. What did surprise me was a nice big dent on the driver’s door. That would cost some money to pop out along with the interior detail.

178,000 miles. When he had bought it from me it had all of 170,000. Or so I thought. This guy was driving close to 1,000 miles a week, and whatever I gave him, if I gave him anything, it needed to be able to handle that constant driving.

Thankfully, my brother-in-law’s Civic had more or less been overhauled before I got it. New belts, water pump, tensioner, plugs, wires, on and on. I did need to put four new tires on it, which turned out to cost only $233 thanks to my usual discount and a $100 gift card promo that the chain tire store was offering at the time.

I tried retailing the Civic for $3500, then $3300, and then $3000.

Nobody wanted it, and those that did just didn’t have the money. I had two kids in college and one older fellow tell me that they were going to get it in the next week, two weeks, when they got a settlement check, etc.

I didn’t care that much either way. Even though it was an unsellable car, I enjoyed driving thanks to my brother-in-law’s maintenance regimen. I knew it would eventually sell.

Then things started to get a bit, complicated. My sister-in-law mentioned to my wife, that my BIL hadn’t sold the vehicle for a lot of money, and that she thought it would get more than the $2000 I had paid for it.

When I hear things like this, I pretty much assume that this recent decision may not have been as smooth as I had initially thought.

I also couldn’t ask for nicer in-laws over the years. They have always been wonderful to me and my wife,  and I didn’t want anything that would cause hard feelings.  When their Camry’s engine blew up a couple years ago, I bought the vehicle for all of $500 with a very nice body and a perfect interior.   I replaced the engine with a JDM 2.0 four cylinder, financed it, had it voluntarily repoed in Denver (owner went out there and ran out of money). I then paid $750 for it to be delivered back to Atlanta, and sold it for $3000 cash which turned out to be my net profit.

I was thinking about selling the Freestar for cash, financing the Civic, and when I got my money back out of the Civic (about $2400), I would give my in-laws the profits. They had two young kids and I figured out this money, nine months from now, would be a perfect way to balance out their monthly daycare costs that I remember paying for back in my 30’s.

It was not meant to be. At least not when it came to Dirt, I mean, Mud. He was a pathological liar along with, what I would later found out, a serial impregnator. I should have taken the keys to the Freestar, shot him, and Jersey dumped his ass in Deliverance country.

Instead I took $305. $120 for what he owed on the Freestar, $120 as a payment cushion on the Civic, and $65 for the actual cost of the detail. I forgave the dent on the Freestar because, psychologically, if you do a nice favor for someone, they tend to be far less screwy with you in the future. However this isn’t always the case,  which is why I also asked him to give me the afternoon so that I can straighten it all out with my bank.

Well, the Bank of Steve has certain strict requirements. One of them is when you have a high-risk customer, you always put a GPS on that vehicle. Since I had initially planned on selling the Civic for cash, I had to take it to the mechanic shop so that we can put one in it. The cost of the unit is $129, and once we had three successful hits on the GPS, Mud got the keys.

Mud then took the car, went to Florida, and decided to play the BS game.

Instead of telling me the truth, that he had no job, he decided to tell me over the weeks, “I’ll get the money in on Tuesday.” Or, “I’ll be riding up to Georgia this weekend and I’ll get the money in and set up an automatic payment with Wells Fargo.” Every week was a new lie, a new excuse, and a new headache.

My policy with payments is relatively straight forward.

If you can’t pay me, then just tell me the truth.

If you can’t tell the truth, at least return my call.

If you can’t bother to return my calls over the course of three days, I’m going to get back my property.

And it is my property. Just because someone pays for the use of it, doesn’t mean they own it.

I get especially steamed when someone tells me, “It’s my car.” or “I already paid too much for it.” Hello? You don’t own my property. I am also not here to lecture you . My business is to provide for my wife and family and if you have some genuine catastrophic event that’s taken place, I’ll put the payments on a temporary hiatus. If you’re nice, I may even try to figure out a way to work off the balance with a side job related to your former work, so that you can become a long-term owner (and keeper) instead of a perpetual debtor.

Most of the time, I don’t want the car back. In the past I’ve had cleaning women do interior details. Small farmers pay me in chicken, eggs and tomatoes. I have even accepted lawnmower repairs, small generators, automotive repair work, assistance with transporting vehicles to and from the auctions, and  minor landscaping projects.

However in this case, I wanted the car back, big time. Last night the repo company scooped up the Civic that was suntanning in Lakeland, Florida. The old cost was $250 for the repo. $65 to transfer it to a nearby auction. $20 to mail the auction the keys so that it can be loaded onto a transport truck next Tuesday, and $275 to have it hauled back to my dealership.

I hope to see it on Thursday. From there it will likely need a $65 interior detail, and $42 to relist it on Autotrader and Craigslist.

So now I have another stickshift back on the lot. The Freestar sold for $3000 cash to a Latino family thanks to my posting the Craigslist ad in Spanish. By my calculations, this guy managed to do about 10,000 miles of driving for which I netted about $700. I got nailed by Mud, but that doesn’t mean I can’t wash myself of him and move forward to the next chapter in life.

 

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Hammer Time: Craigslist English http://www.thetruthaboutcars.com/2014/06/hammer-time-craigslist-english/ http://www.thetruthaboutcars.com/2014/06/hammer-time-craigslist-english/#comments Thu, 26 Jun 2014 13:03:21 +0000 http://www.thetruthaboutcars.com/?p=852529 If there is a hell, you will probably find it on Craigslist. Also, if there is a Santa Claus, you will probably find him performing some advanced NSA style hacking that tracks all the emails and texts people like me have to endure. I’m pretty sure that Saint Nick would also have an amazing Craigslist […]

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If there is a hell, you will probably find it on Craigslist.

Also, if there is a Santa Claus, you will probably find him performing some advanced NSA style hacking that tracks all the emails and texts people like me have to endure.

I’m pretty sure that Saint Nick would also have an amazing Craigslist to English translator for that purpose.

“Wut” very roughly translate to what, of course…. unless “wut” happens to be a typo, in which case, start thinking of words that end with “ut.”

“Whass u got???” is, “Excuse my kind sir, but I have texted 33 people in the last 22 minutes. I can’t even remember why I texted you but… whass u got?”

I miss the good old days.

10 years ago, the average person you dealt with on Craigslist was a professional in many respects. They knew what they were buying. They knew that it would take a reasonable amount of cash money to buy it. And they knew that their free time shouldn’t have to become your time to the tune of 13 texts that could mostly be answered by just reading the ad.

These days I feel like I’m left with the far left hand side of the bell curve. Of course, there are a few stragglers that find a way of making it to the middle of that curve and beyond. But most times, I’m left to deal with folks with those 13 questions that are spelling catastrophes, and a budget that has mostly champagne on the mind and Schlitz in the wallet.

So, I may as well have fun with it. Here is a nice little cheat sheet that will help you translate those terrible texts with high annoyance, and low rates of sales success.
Text message: “What is your absolute lowest price?”Translation “Whatever you say, I’m going to try to knock it down another 50%. You’re welcome!”

Text: “R u farm? I have $$$!!!”

Translation: I am the doofus who hogs the computers at the public library playing Farmville. I have no $$$!!!.

Text: “What’s the lowest you’ll go?”

Translation: Because whatever you say, it will never be low enough.

Text: “Is it a diesel?”

Translation: I am confused. What does the word gas mean in the description? Also, is this 30 year old Mercedes cheap to own?

Text: “Is it a V8?”

Translation: I can only afford to look at pictures while goofing off in high school. You mentioning that it is a V8 in the title AND description has no bearing on my current reading level. 

Text: Can you send me pics?

Translation: Because 24 pictures of a 15 year old Ford Escort wagon is certainly not enough!

Text: “Can you come to my place?”

Translation: No, trust me. You don’t want to go anywhere near my place.

Text: Can I check it out? What is the VIN#? Any mechanical issues? What about maintenance? Did it pass emissions? Tires?
Translation: I am going to drive your car for an hour and a half. Then give you a checklist of all the things wrong with your car. Even the ashtray I’ll never use! I will do this on the nicest day of the year.  
Text: Kelly Blue Book says your car is only worth $2400.
Translation: Assuming your five year old Impala has 280,000 miles… is in poor condition… is a base model… and has a rebuilt title.
Text: Does it have leather seats?
Translation: I will lie to you and say I want cloth instead.
Text: Does it have a 5-speed?
Translation: I don’t know how to drive one. But can I practice on yours?
Text: Are you the original owner?
Translation: What does one owner mean?
Text: I have cash money!
Translation: But not enough to buy your car.
Text: My mom needs a car and I have $1200 in cash. Can we work out a deal?
Translation: My mom is really my father’s cousin’s former roommate from Hoboken, and he knows absolutely nothing about this.
Text: Would you mind if I combine the test drive with some local shopping? I have to get…
Translation: The keys are in my hand. The tank is full, and that back seat has my girlfriend’s name written all over it.

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Question Of The Day: What Was Your Closest Call? http://www.thetruthaboutcars.com/2014/06/question-of-the-day-what-was-your-closest-call/ http://www.thetruthaboutcars.com/2014/06/question-of-the-day-what-was-your-closest-call/#comments Mon, 23 Jun 2014 18:28:14 +0000 http://www.thetruthaboutcars.com/?p=850290 Well, I nearly died today. I was driving on a winding one lane road, when  a silver mid-2000’s Dodge Ram Club Cab broke through the double yellow, and swerved halfway into my lane. My car was a 7 year old Toyota Corolla, and if it weren’t for a last split-second swerve, I would have been […]

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Click here to view the embedded video.

Well, I nearly died today.

I was driving on a winding one lane road, when  a silver mid-2000’s Dodge Ram Club Cab broke through the double yellow, and swerved halfway into my lane.

My car was a 7 year old Toyota Corolla, and if it weren’t for a last split-second swerve, I would have been dead. No question about it.

The surprising thing about the experience was my lack of a frazzled state immediately afterwards. I drove a couple hundred feet more, thanked God, did a U-turn at the nearby precinct headquarters, and dialed 911.

For all I knew it could have been anything that caused the near death experience. Texting, drugs, a spilled drink, a medical emergency… anything. But I surely wasn’t going to let that vehicle remain on the road without police involvement.

caught up with the truck enough to see it turn right onto a dead end street and stayed on the phone with the dispatcher for about 10 more minutes. The driver stayed in the car the entire time. No words between us. Nothing but me and a dispatcher, who told me that three police cars were already on their way. I kept the Corolla a good 700 feet away on the top of a large hill. I wasn’t going to play hero. But at the same time, I was betting that Atlanta’s 95 degree weather with 90% humidity would discourage the driver from coming out of his car.

Sure enough, he just stayed where he was at. 

Once the police showed up, I told them the story I just told you. They confronted what turned out to be a guy who had sweated out of his shirt. He was animate, allegedly he was working on the home where he was parked, and it took a good five minutes or so before the police were willing to let him speak with me.

“I’m sorry. I just spilled my drink and I know I crossed that yellow line. I’m really sorry.”

“I just wanted to make sure you weren’t impaired, or texting, or something like that.”

We shook hands, and it seemed like every 15 to 20 seconds, he was apologizing and trying to shake my hand again. I wish I had told one of the police officers to corroborate the spilled drink and other parts of his story. They don’t add up now. But to be honest, all I was thinking then was that my family could have experienced the worst day of our collective lives. His alibi was not my concern.

I thanked the officers and got the hell out of there. And now, well, I’m a bit frazzled. A neverending march of random questions goes through your mind when you experience something like this.

Do I stop driving compacts? Do I share what happened with my family? There’s a life lesson here, and I’m going to have to dwell on the ramifications for quite a while.

I’ve experienced plenty of close calls before. When I worked the Atlanta auction circuit I used to drive over 40,000 miles a year through three states as a ringman, and later, an auctioneer. But I never experienced anything quite like this in terms of a split second difference between life and death.  A 40 mph head on would have made me a corpse, and my family is sometimes the only damn thing I give a shit about in this world. I would rather endure the trials of Job than to leave them in such a terrible state.

This is why I like the idea of  self-driving cars and crash avoidance systems in general. I love cars, but if I had to make a deal with an angel and trade in my keys for the chance to simply stay on this Earth and be with my family, I would pack up our belongings and move away from the ex-urbs of Atlanta in a millisecond. New York City, Amsterdam, Costa Rica. Anywhere I could walk would be fine with me.

I need to get some perspective here folks, and maybe a good story or two would be the right prescription. So let me ask you, what was your closest call? More importantly, what impact did it have on the future of your driving?

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QOTD: Would You Ever Pay For A Stripper? http://www.thetruthaboutcars.com/2014/06/qotd-would-you-ever-pay-for-a-stripper/ http://www.thetruthaboutcars.com/2014/06/qotd-would-you-ever-pay-for-a-stripper/#comments Fri, 20 Jun 2014 17:10:52 +0000 http://www.thetruthaboutcars.com/?p=848106 No nav. No leather. No premium or power nuttin’. All yours for $12,800 before fees, tax, tag, title. You don’t want it? Don’t think you’re alone. Strippers have represented America’s premiere unsellable car for quite a while now. Everyone says that they just need a car to get from A to B. But easy credit […]

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No nav.

No leather.

No premium or power nuttin’.

All yours for $12,800 before fees, tax, tag, title.

You don’t want it? Don’t think you’re alone. Strippers have represented America’s premiere unsellable car for quite a while now.

Everyone says that they just need a car to get from A to B. But easy credit and low monthly payments have made basic low-end models as popular as a 2014 Toyota Camry L and as hard to find as, well. I’ll put it to you this way: there are now three L models available in Atlanta for a population of six million.

Don’t think that Toyota is alone on this. There is only one Nissan Versa S with a five-speed that you can buy here for less than $13,000. Not one trim level. One car. When Honda was busy liquidating the last of their 2012 Accords for the new generation, my nearby Honda dealer still had two base five-speed Accords on their lot. One had been there for 10 months and the other had remained unloved, and unsold, for nearly a year and a half. They were each bought for only $17,300 which sounds like a fantastic buy, except that a few months later I would see an identically equipped 2012 Accord go through the auction, with fewer than 8,000 miles, sell for all of $10,000.

It didn’t have dents, dings, damage or even dowdiness. It was just a base car, and these days, base cars don’t sell.

There are a lot of reasons for this lack of attention to what I now call, the disappearing stripper. An article I recently wrote for Yahoo! pretty much highlights the financial mindset of today’s customer versus those of just a decade ago. It’s a different car market out there. The economy may still be in the slow growth to recession mode here in the USA. But we still like our creature comforts, and the good price really comes second these days to the “affordable” monthly payment. So long as loan terms remain long, and interest rates remain low, that better equipped car will usually only cost an extra $20 to $50. Even cash strapped buyers can afford that wiggle room.

I always get emails from folks who want a deal, and I always try to tell these folks  to hit em’ where they ain’t. But few folks are ever willing to take that plunge. So far in 2014, I have known only one guy who was willing to buy a stripper car, brand new, for cheap money. $14,000 out the door for a Mazda 2. If he had been in one of the five states with no tax, he could have sliced another $1000 off that price.

He bought it right. So let me ask you. Would you have taken that deal? How about a base MX-5 or a Mazda 3 with nothing but a stickshift and that olfactory new car smell? Before you instinctively say yes, take the time to go online and look at the vehicle as it is so equipped.

Would you ever pay for a stripper?  If not, then just feel free to share your story of a stripper you once owned and rode on a daily basis. It’s a Friday and we can all use the laughs.

 

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New or Used? : Sadly, Infiniti Will Never Sell An M80 http://www.thetruthaboutcars.com/2014/06/new-or-used-sadly-infiniti-will-never-sell-an-m80/ http://www.thetruthaboutcars.com/2014/06/new-or-used-sadly-infiniti-will-never-sell-an-m80/#comments Fri, 20 Jun 2014 13:00:00 +0000 http://www.thetruthaboutcars.com/?p=847225 Dear Mr. Lang, Your most recent article put the final nail in the C4 coffin for me and for that, I’m everlastingly grateful. The VW GTI is but a distant infatuation, another foolish pleasure set aside. Onward to the Infiniti M35. My wife, county librarian, needs a reliable safe car to visit her 34 branches. […]

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Click here to view the embedded video.

Dear Mr. Lang,

Your most recent article put the final nail in the C4 coffin for me and for that, I’m everlastingly grateful.

The VW GTI is but a distant infatuation, another foolish pleasure set aside.

Onward to the Infiniti M35.

My wife, county librarian, needs a reliable safe car to visit her 34 branches.

The M35 sounds like just the ticket. It would also be a good road car for our forays to Las Vegas. Any recommendation on good/bad model years would be appreciated. We’ll find a good home for her ’03 Grand Marquis with 99k. It’s time to move on.

Thanks again for your help.

 

Steve Says:

Wow! 34 branches! Remind me to move to where you live after I get my kids through high school. One of my non-negotiables for what I hope will be the post-Dad phase is a library I can walk to.

Forget about the beach or the mountains. I want a quiet nice place where I can read.

As for your situation, the best way to approach this is to look at everything from the inside out. Let’s start with the M35.

The interiors on these vehicles are pretty much a love/hate affair. My advice is to find one. Let her spend some time inside (without you), and see whether she likes her surroundings.

I have always thought that the dashboard, seats and interior trim are far more important to most owner’s long-term happiness than the exterior design. Sexiness sells, but you will spend 98+% of your time looking at the car from the inside out. Those interior materials make an epic difference for a road warrior, and it sounds like your wife may need to become one.

Second, you are far better off visiting an enthusiast forum than to rely on the opinion of one guy. Let them tell you about the best years, worthwhile modifications, and unique challenges to your vehicle. Every vehicle has a weakness of some sort, and taking advice from actual long-term owners will give you a far better frame of reference than any other source in this business.

Here is the M35 enthusiast forum. Related to that, the M35 happens to also be the most reliable Infiniti car in my long-term reliability study. I recommended it not too long ago, and I think you are making a wise decision by considering it.

Do you a question? A rambling epiphany? Or even a hunch that is carried by nothing but thin air? Feel free to contact me at steve.lang@thetruthaboutcars.com .

 

 

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New or Used? : Why Are Old Corvettes So Cheap? http://www.thetruthaboutcars.com/2014/06/new-or-used-why-are-old-corvettes-so-cheap/ http://www.thetruthaboutcars.com/2014/06/new-or-used-why-are-old-corvettes-so-cheap/#comments Thu, 19 Jun 2014 04:32:47 +0000 http://www.thetruthaboutcars.com/?p=846233 O.K. Steve Why are old Corvettes so cheap ? . Just Monday I saw yet another 1984 ‘Vette for sale in a used car lot for $2,500, are some years simply so bad they’re worthless? I have never owned one and only driven a few . Mostly my buddy’s ’68 350 W/ 4 speed back in the […]

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1984vette
O.K. Steve
Why are old Corvettes so cheap ? .
Just Monday I saw yet another 1984 ‘Vette for sale in a used car lot for $2,500, are some years simply so bad they’re worthless?
I have never owned one and only driven a few . Mostly my buddy’s ’68 350 W/ 4 speed back in the very early 1970’s when it was a neat car.
He built it from various junked and wrecked ‘Vettes at a specialized Corvette junkyard . We rode it very hard and it was a good , fun car that took quite a beating right until he drank himself to death .
I see the 1990’s (I think) four valve versions undamaged in Pick-A-Part Junkyards all over California. They are low mileage (under 150,000), zero damage, nice paint etc. ~ how is this possible ? .
I’d think they want to sell them whole and not part them out. But no one wants them?
Steve Says:
If only it were so.
I would be more than happy to drive a late model Corvette through the winding roads of North Georgia. Unfortunately, I have found them to be among the worst types of vehicles for my travels.
They are flashy, easy to drive too fast, and cops seem to enjoy hanging around them on highway jaunts.
That 84′ Corvette you were looking at may very well be the worst Corvette of the last 30 years. The quality was downright abysmal for what was, way back then, the first year of the C4 launch. The 1984 model was built in the thick of the Roger Smith era. There were very few good GM vehicles made during that time, with the most expensive models often getting shot and neutered quality wise well before they left the factory floor.
I’m willing to bet that Corvette at the used car lot was worth more dead than alive. By the time you see these vehicles at the auctions and the car lots,  they have suffered years of neglect.
It’s sad because, at least to me, that generation of the Corvette may truly be one of the most beautiful vehicles of that time period. They were gorgeous. But I never would want to keep one, or recommend it to someone who wants a sports car worth keeping.
The flip side of the coin is that the newer C6 Corvettes tend to be pretty reliable. I mentioned this in a recent Yahoo! Autos article, and if I were in the market for a used sports car, a C6 Corvette would definitely be a  top pick.
Old sports cars that had quality issues are now, just old crappy cars. A lot of 10 year old family cars will go faster than that 1984 Corvette without the quality control issues issues that come with a Reagan era ride.  Speed is often times a given in this day and age, and with America’s aging population, sporty two door cars are just not as in demand as they were back when the C4 was first released.
There is one big plus to the used Corvette marketplace that is shared with other niche vehicles such as the Mazda MX-5 and the Jeep Wrangler. 
They are usually not daily drivers. Most of these vehicles spend their time inside a garage and are used during weekends or whenever the owner gets that longing to enjoy their ride.  Corvettes tend to be lower mileage garage queens, and the powertrains are rarely stressed.
In the used car market, there is almost always a lot of them out there. Not because they aren’t worthy of ownership. It’s just that the demographics and long-term reliability of Corvettes have changed dramatically since the days of that 1984 Corvette. Today’s Corvettes are the sports car version of a cockroach. They can outlast their owners, along with most modern day bugs of the German variety.
Oh, and as for the C4 you saw, do yourself a big favor and don’t look back. I have yet to see one from the 80’s that didn’t drive like a bucket of bolts.

 

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Hammer Time: Screw Zipcar, Just Share A Govcar http://www.thetruthaboutcars.com/2014/06/hammer-time-screw-zipcar-just-share-a-govcar/ http://www.thetruthaboutcars.com/2014/06/hammer-time-screw-zipcar-just-share-a-govcar/#comments Wed, 18 Jun 2014 11:00:08 +0000 http://www.thetruthaboutcars.com/?p=844042 There a few things I can’t wrap my mind around these days. Take for example, Zipcar.  The car sharing firm that supposedly offers the Millenial vibe, is actually run by the old GM dumping ground for unpopular vehicles established rental company Avis. That’s not a bad thing at all. Long story short, the opportunity for […]

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govcar

There a few things I can’t wrap my mind around these days.

Take for example, Zipcar.  The car sharing firm that supposedly offers the Millenial vibe, is actually run by the old GM dumping ground for unpopular vehicles established rental company Avis.

That’s not a bad thing at all. Long story short, the opportunity for Zipcar to buy and manage vehicles at Avis procurement levels makes what was once a pipe dream, financially realistic. Avis gets to expand their fleet with minimal overhead costs (the two companies share the same vehicle fleet), and Zipcar gets to focus on expanding the idea of car sharing.

The problem for me is that the economics of car sharing under a corporate umbrella is still a bad idea for 99% of the folks out there.

You live in a university? Car sharing may make sense, but not when you deal with the strict asterisks and time-related gotchas that come with the corporate version of it.

There are times when you may want to go shopping, or to the movies, or to your favorite pharmacological distributor. Zipcar allows you to do that for about $10 an hour, plus an annual membership fee of about $15. If you are a student who doesn’t have the right to purchase a parking pass at your school, Zipcar gives you the sole out from those crowded university shuttles and long bike rides.

 

I’ll be blunt, Zipcar only works if you are denied a marketplace substitute, almost never drive, or once owned a rolling lemon money pit.

It’s also not a bad deal if you drive exactly twenty minutes, shop for exactly twenty minutes, and come back to where you live in 19 minutes and 59 seconds. Four students can gleefully share the ten dollar cost and a new deep seeded hatred for stop lights, slow drivers, and parking lots.

Or…

You can enjoy the infinite convenience of buying and sharing a car that you own.

You could have this. A 2009 Ford Crown Victoria.

The type of car that sparks fear in the eyes of a meandering motorist with just a few antennas on the roof, and a quick flashing of the headlights.

The price for a used one is still well short of $2500 with good mileage. Why so cheap? Because nothing is more unfashionable these days as a well-made, V8, rear-wheel drive car, bathed in government black and white, and incapable of getting more than 15 miles per gallon in the city.

Yet the economics of sharing this age old gas house, Animal House style, makes far more sense than supplementing the blogging income of cultural creatives and multi-national firms that see you as an easy target for their ecological phoniness.

That’s what ride sharing is about. They want your money. That’s it. If they cared a lick about you, the companies that foolishly overpaid acquired these operations wouldn’t have spent their resources de-contenting rental cars and removing important safety features that may impact your well-being should that terrible day come.

So, let’s say you decide that you want to own a car, but want to get some car sharing levels of help paying for it.

It’s not that hard if you are willing to hustle a bit. Yes there is Uber, and Lyft, and a few other firms that let you become the designated driver of the local university (invest in rubber floormats and keep the cop car). However, there are an awful lot of better ways to skin that cat.

So let’s say you decide to buy this car.

Definitely click on the link, because it’s not what you would expect. A 2004 Ford Taurus SE Wagon. Stop drooling.

Yes, this car is about as hip as a 35 year old frat boy. But that’s part of my point. It has 65,000 original miles. One owner, that being a local government, and all the maintenance has been done at the dealership according to the Carfax history.

New spark plugs. New tires. New starter. For $1175 plus a new battery and the bogus buyer premium, you’re still looking at less than $1500 out the door.

The price is right, and the hipness level is perfect as well. Why? Because you want to attract the types of people who are looking at the “transportation” end of the deal. People who are capable of doing math better than the average American.  In colleges and universities, these are usually grad students from overseas who have limited funds and a desire to travel. In the suburbs, or in your 20’s, it’s the young family that is trying to get established on one income. When you get to be in your 30’s and older, it will likely be the neighborhood where older folks and younger folks are already on good terms with each other.

You can have them all pay for part of the vehicle. Car insurance follows the car, not the driver, and that should be reimbursed as well along with a monthly charge for auto expenses. It is not against the law to allow a friend or relative drive your car under the permissive use policy. But, make extra sure that you are allowed to do this.  Every insurance company, and many states, have varying levels of coverage and liability when it comes to permissive use. This article is a good primer on it,

Even with that said, you always want to contact your insurance company. I have done this, twice, and both times, I contacted my insurance company to make sure that everything was kosher. This isn’t a big hurdle to climb, but some states simply say yes or no to the idea of permissive use.

The whole idea about making car sharing work is nothing new. It’s older than a Bluto Blutarski belch and as utilitarian as an old government mule. If you put even a minimal level of energy towards it, you won’t need a corporation to make it work.

Do you need faith in your fellow man? Meh. But if you pick your fellow man wisely, and don’t over-invest in the asset, you should be OK for years. A cheap government car that has been maintained right can offer a value proposition that is far better for most infrequent users than the ticking two-way time bomb that is trying to shop around town with a Zipcar.

 

 

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Question Of The Day: What Lame Duck New Car Is Worth Your Bills? http://www.thetruthaboutcars.com/2014/06/question-of-the-day-what-lame-duck-new-car-is-worth-your-bills/ http://www.thetruthaboutcars.com/2014/06/question-of-the-day-what-lame-duck-new-car-is-worth-your-bills/#comments Wed, 18 Jun 2014 10:30:11 +0000 http://www.thetruthaboutcars.com/?p=845569 I always tell folks that they should try to hit em’ where they ain’t. Want a Camry? Look at a Mazda 6 first. A Prius C? One of my personal favorites.  But I still have a soft spot for far cheaper closeout models like the Mazda 2 and Ford Fiesta. You may also wind up […]

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mazda2

I always tell folks that they should try to hit em’ where they ain’t.

Want a Camry? Look at a Mazda 6 first.

A Prius C? One of my personal favorites.  But I still have a soft spot for far cheaper closeout models like the Mazda 2 and Ford Fiesta. You may also wind up enjoying them a lot more in the long run.

That final year of a model’s run can sometimes provide that unique, one-time steal of a deal that would put today’s popular car to shame. There is a unique value quotient that frequently can’t be replicated with the brand new stuff, once rebates and slacking consumer demand start chipping away at the true cost of purchase.

So speaking of new cars…

One of our frequent commenters, tryochatter, was recently in the market for a brand new vehicle. His first in about a decade or so.

His tastes are a bit Y2K oriented. He doesn’t care about navigation systems, infotainment modules, or any of the other premium offerings that help boost the MSRP of a given new car to a healthy 15% to 25% premium.

Like a lot of us, he’s a rare breed in today’s marketplace. Stickshift, basic Ipod integration, comfortable seating for two, with maybe four in a very tight pinch, and one other small thing.

Airbags. In his words, he wanted a car that had, “enough airbags to turn the whole mess into a volleyball if need be.”. These days, even a base entry level car like the Chevy Spark comes with 10 airbags. So this wasn’t a tough hill to climb.

The car he wanted was listed for $15,515. One day of negotiating, and waiting… and waiting… and he finally bought his next new car. A 2014 Mazda 2 for $13,000 before the usual tax and potential bogus fees were added on. In Ohio, this came to just below $14,000 after tax, tag and title.

He loves it.  The monthly payments are reasonable, and with a new job within biking distance from his home, he is probably not going to need another new car until the oldest of the Millenials start hitting their 40’s.

This isn’t a common happy ending for what many in our industry call, “the lame duck cars”. Popular cars get the spotlights, auto show turntables,  and dealer traffic. While those about to be axed or replaced will usually get the moonlight that is the back of the new car lot.

Are those lame duck cars the better buy? Well,  I’ll put it to you this way. My late father was incredible at getting these types of cars at a rock bottom price. The 1992 Lincoln Mark VII that had an MSRP of $33,000, he pretty much stole it at $22,000. The leftover 2001 Lexus ES300 that followed also got a nice, but more moderate discount.

He had a knack for buying great cars during their final year of production, and with the daily driving he did around the third world roads of northern New Jersey, he wanted a car that could handle that daily brutality.

If he had bought a 1993 Dodge Dynasty, or a four door 1993 Saab 900, chances are I wouldn’t be bragging about it, and he would have quickly changed his strategy.       

So this is the question I want you to consider. If you had to buy a new car that is in its final year of production, which one would you choose? Keep in mind you’re spending your own dollars here. Let’s assume that this is a car you plan on keeping for a long while.

Which one would you pick?

Have a question? An Insight? A lame duck, first generation Honda Insight? Please feel free to contact Steve at steve.lang@thetruthaboutcars.com 

 

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Question Of The Day: What Is The Most Common Vehicle You Have Seen… http://www.thetruthaboutcars.com/2014/06/question-of-the-day-what-is-the-most-common-vehicle-you-have-seen/ http://www.thetruthaboutcars.com/2014/06/question-of-the-day-what-is-the-most-common-vehicle-you-have-seen/#comments Mon, 16 Jun 2014 16:09:42 +0000 http://www.thetruthaboutcars.com/?p=845185 …on the side of the road? Way back in the day, I used to work as an auctioneer at Logandale Auto Auction. I used to call it, “the red light district” because every vehicle there sold under the red light, which meant AS/IS. AS/IS meant, as it is. That means whatever you bought when it […]

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sideofroad

…on the side of the road?

Way back in the day, I used to work as an auctioneer at Logandale Auto Auction. I used to call it, “the red light district” because every vehicle there sold under the red light, which meant AS/IS.

findautoauction

AS/IS meant, as it is. That means whatever you bought when it came on the auction block. it was yours. That also included whatever spilled or fell off the vehicle as it was leaving the barn. You, and you alone, were the new owner of a vehicle that probably drank, smoke, and hung around with the bad boys.

Why do I mention this? Well, most of the vehicles that were sold at the sale were impounded or abandoned vehicles. Those vehicles you see on the side of the road in the USA? Well, out here, most law enforcement officers will stick a nice bright tag on the front and rear windshield of the vehicle, giving the owner “x” number of days to get the vehicle or the local wrecker company will pick it up and impound it.

find2

From there, it’s a waiting game, and the vehicles get ever the more expensive to get out of impound. Here in Georgia, the standard rate is around $126 for the tow and $20 a day for storage. If you don’t get it in time they end up having a public auction which is usually advertised in the local county paper beforehand.

15 years ago, I would say that about 90% of these vehicles that were at those nearby auctions would eventually wind up at Logandale. The buyers would usually just fill up the coolant levels to the max, oil if it needed it, a cheap refurbished battery, a quick wash detail, and voila! Brand new auction vehicle sold to the general public with the ultimate of caveat emptors as the buying policy, AS/IS.

flickriver

Back in the Y2K era, I would see a ton of old K-Cars make it through the auction along with Chevy Blazers, 1980’s GM econoboxes, and most notably, the Ford Taurus. Sometimes it seemed like the majority of the inventory at this sale matched one of these four categories to some degree or another.

I was reminded by this from my ride home yesterday from an 85 mph racing circle here in Atlantan that we call Initerstate 285. Now that the weather is hot, I’m seeing a lot more vehicles on the side of the road with bright stickers to alert the local wrecker services. A 25 year old Buick Lesabre may have finally earned it’s wings on Exit 27. But the 2002-ish Cadillac Seville on Northdside Dr. may have fallen victim to the reptilian four figured fangs of GM’s Northsatr head gasket issues. A mid-90’s Sable wasn’t far away, and finally, a similar era Roadmaster sedan rounded out the four I saw over the course of the 20 mile drive.

I’ve seen a lot of rolling money pits and crusher fodder in my travels. But what about you? What’s the most common vehicle you have seen on the side of the road?

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NASCAR For The Novice (The Prequel) http://www.thetruthaboutcars.com/2014/06/nascar-for-the-novice-the-prequel/ http://www.thetruthaboutcars.com/2014/06/nascar-for-the-novice-the-prequel/#comments Fri, 13 Jun 2014 19:46:42 +0000 http://www.thetruthaboutcars.com/?p=843553 I am pacing back and forth in a 200 square foot wooden building that I had exchanged for a 1996 Volvo 850 sedan back in 2008. “What the hell am I going to write about? I know nothing about racing! Zip!” “Well Steve, maybe we can arrange for a few interviews.” “Would they be racers?” […]

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Click here to view the embedded video.

I am pacing back and forth in a 200 square foot wooden building that I had exchanged for a 1996 Volvo 850 sedan back in 2008.

“What the hell am I going to write about? I know nothing about racing! Zip!”

“Well Steve, maybe we can arrange for a few interviews.”

“Would they be racers?”

“Aaahhh, no.”

“Owners? Hookers? How about the guy who fires the gun?”

“What gun?”

The truth was that I didn’t want to go to any race. I had a long line of issues to deal with at the used car lot. Customers that needed help either finding cars, or paying for them.  The grass was growing back where the gravel was, and I hated to leave money on the table. If I left, either some deals would be lost, or I would have my cell phone surgically attached to my ear for the entire time.

It wouldn’t be fun. But that was the big problem for me at this point. Life wasn’t fun when it came to my daily work life. I rate every working day from a 1 to 10 scale for that key elusive ingredient known as, fun. For the past year my days have been 2’s and 3’s. They used to be 7’s and 8’s, back in the time when I had not built this beast of the business up to the point where I felt like was a subservient tail of a great big fire breathing dragon.

I was dealing with too many cars with weird problems, and amateur bullshitters who thought they could get one up on me. There were countless times over the past two weeks where I just thought about taking all my retail cars, wholesaling them, and taking time off from what had become a pressure cooker of human stupidity.

Instead, I went to my first race.

I started out driving out to Atlanta and entering a humongous underground parking deck that had at least 12 or 13 levels to it.

garage

Turn right, drive. Turn right, drive. I realized that I was doing a 15 mph version of NASCAR with an opposite turn, and all the cars thankfully either gone or parked along the side out of pity.

Once I reached the bottom of the bottom,I realized something highly unusual right off the bat.

I was the only one there.

No cars. No noise. Nothing but me and my car… that happened to have nothing in the trunk. At least for now. Gulp!

As a native Jersey boy, I briefly thought about the ease of whacking someone and moving a body in this parking garage. My southern twang belies the fact that I grew up in Northern Jersey during the Reagan era. A time and place where houses mysteriously burned down, the mafia always handled your garbage, and John Gotti was considered a not-so-bad guy.

This theatrical idea was tempered by me driving  a seven-year old Corolla instead of the black 1980 Cadillac Seville I sold earlier that week. I missed that car. After about 10 minutes of quiet and no phone signal, I met my co-rider, and we quickly made our way back up to the same part of Northwest Georgia I had just left.

Camry-Hybrid-LE-interior

We would be spending our time in a 2014 Toyota Camry LE. The type of car that no supposed enthusiast or auto journalist wants to drive. Yet what did I recommend for my mom to buy back in 2012? A Camry. That is after she pretended to be open-minded and rejected everything else in the marketplace. The brutal truth of this business is that most folks have minimal needs to get from A to B, and reliability is still the #1 driver of sales in the new and used car markets.

As I exhume myself from this tomb of automotive storage, my mind wanders to the blandness of the American driving experience. Cruise at 70. Seats comfortable. Driving straight and uneventful. Talk on cell phones.  That’s what the American open road is like these days. The media driven garbage about cars representing the penultimate of freedom and sexiness is, at least in my mind, castrated by the salient fact that everyone plays the game “follow the leader” when it comes to daily driving, and detailing is already a pure misery for most car owners.

This is what I’m thinking about while going through six different lights on one of 30+ Peachtree Streets here in Atlanta.

stoplight

I enjoy a winding one lane road as much as anyone in this business, but city driving sucks and the suburbs aren’t much better these days. Traffic is a constant pain because turn signals are optional, people play with their cell phones, and drivers often turn for the hell of it.

Cars are mostly a burden in most cities like Atlanta, and what joy can be had by revving your engine every now and then is often throttled back by a city police force whose only opportunity for pay raises is to issue more traffic tickets.

The racing world is a healthy rebellion from what has largely become a speed hating society.

The light turns green. I hit Interstate 85 and after about 30 minutes of driving, we finally become free of the monetary clutches of quick changing stoplights and legalized theft cartels. I and my co-driver are hitting 80 on our way up to northwest Georgia and beyond.

crosscountryroads

The scenery gets better. I like to tell folks that when you’re in Atlanta, you’re in Atlanta, and when you’re in Georgia, you’re in JAW-JA! Never the twain do meet.

Atlanta is a bit of a weird place. Very corporate, yet not quite conservative, and often times city officials are downright delusional about where their strengths lie. A few years ago these guys wanted to get the NASCAR Hall of Fame down here, which would have been kinda like asking the New York Yankees to move to Winnipeg.

I’m not a NASCAR enthusiast at all. But one thing I do know is that the cultures of “NASCAR Country” and “The ATL” are about as close to each other as Mercury is from Pluto.

The College Football Hall of Fame will be in Atlanta, right near Georgia Tech, which is a great fit for the culture and the community. The guy I’m riding with is pretty much a foot soldier for promoting these types of projects around Georgia, and as the scenery around us changes from commercial parks to pine trees, we start changing a bit.

Our accents become a bit more country. By seeing my neck of the woods, I begin to relax. The phone gets turned off.  The beauty of North Georgia becomes all encompassing, and I realize something at that very moment.

I needed this.

 

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New or Used? : Vroom! Crunch! Cha-Ching! http://www.thetruthaboutcars.com/2014/06/new-or-used-vroom-crunch-cha-ching/ http://www.thetruthaboutcars.com/2014/06/new-or-used-vroom-crunch-cha-ching/#comments Thu, 12 Jun 2014 19:47:47 +0000 http://www.thetruthaboutcars.com/?p=842650 Troyochatter submits this request for your perusal. Hey there, I have a dilemma that you might be able to help with. Got a sec? My brother had a motorcycle accident. All is well, but here’s the issue. The bike is a 1996 Honda Nighthawk that books for $1895…except I have never seen one sell for […]

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Source: Gallagher.com

Source: Gallagher.com

Troyochatter submits this request for your perusal.

Hey there, I have a dilemma that you might be able to help with.

Got a sec?

My brother had a motorcycle accident. All is well, but here’s the issue.

The bike is a 1996 Honda Nighthawk that books for $1895…except I have never seen one sell for  that cheap.

AND.. his is a one year only model, in yellow, and it is mint.

The insurance company wants to total it. But I have looked at it and, honestly, high end, maybe $600 total in parts and labor puts it back to 98% before it was wrecked.

Steve flippantly Says: Offer to keep it with a salvage title and find out the price difference. Then you can paint it purple with green zigzags like those old Kawasaki Ninjas.

Troyo:  See, that’s the thing, it’s not even close to totaled. So can he keep it and request a salvage title and xxx amount of dollars?

Steve: Yes and no. Older vehicles are historically undervalued and typically, you have to offer examples of why their valuation is wrong. All older vehicles, cars and motorcycles, have been historically undervalued in certain price books. The best thing you can do is visit them all. NADA often provides higher valuations due to their primary clientele (banks and finance companies), while Kelly Blue Book does a good job as well with the consumer side. Although older vehicles in general tend to be a bit of a hit or miss, depending on their rarity and the fact that average older vehicles tend to have fewer accurate data points.

He should use Ebay’s completed items, Craigslist, and Cycle Trader to find examples that reflect what he had, which won’t be easy. Even an expert’s opinion in the industry can go a long way. I have helped insurance companies with automotive appraisals. But motorcycles are a very different animal.

 

 

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New Or Used? : A Mitzvah For The Mazda http://www.thetruthaboutcars.com/2014/06/new-or-used-a-mitzvah-for-the-mazda/ http://www.thetruthaboutcars.com/2014/06/new-or-used-a-mitzvah-for-the-mazda/#comments Wed, 11 Jun 2014 00:11:15 +0000 http://www.thetruthaboutcars.com/?p=840674 I have a 10 year old Mazda Protege which I have loved ever since new. There is just one small problem. Rust. This car rusts like Dolly Parton sings. There is rust on the frame. Rust on the rear wheel wells which I have steadfastly removed ever single year. Rust on various parts of the […]

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redflagdeals

I have a 10 year old Mazda Protege which I have loved ever since new.

There is just one small problem.

Rust. This car rusts like Dolly Parton sings. There is rust on the frame. Rust on the rear wheel wells which I have steadfastly removed ever single year. Rust on various parts of the powertrain. All the wheel bearings have been replaced, twice, and after yet another near dire prediction of expensive rust related maintenance, I’ve decided to sell the Protege.

I put it only at around $5000 and it finally managed to sell at the $4100. Right around where you said it would when I emailed you a few weeks ago.

Except now, I have a bit of a problem. I promised the car, but the guy I promised it to had a bit of a problem getting his finances in order. A little over a week ago we agreed to put off the final sale of the Protege until Friday.

So I decided to just do some detailed inspection of the rear of the vehicle a couple of days ago and I found my decade old nightmare. A huge swash of rust on the rear of the frame that has been untreated since new.

I decided to get that entire area treated and rustproofed. Total cost was around $400.

I then let the fellow know about the treatment and asked if he would split the bill with me. He gave me a firm and unfriendly no as the answer. I was a bit pissed off because, yeah, I didn’t have a green light from him. But at the same time, he hasn’t given me the green light either now for quite a while.

Part of me (a big one) wants to drive it to Asheville, give it a last go on Tale of the Dragon, then sell it down there.

What do you think?

Steve Says:

This is why all of my holding of vehicles come with non-refundable deposits.

You want a car? Great! Two weeks. $500 deposit. No exceptions.

This is what you should have done in the first place because it discourages future window shopping and keeps the buyer focused on his obligations in the deal. Nickelshiters stop nickel and dimeing you when they have enough skin in the game for there to be a major downside to their flakiness.

As for the repair work, stuff like that you don’t do as a favor until the buyer is on board with it. Life is short. If you were afraid that this guy was going to bite the big one if he got in a rear impact, then you were obligated by a higher authority to do the right thing.

You did half the right thing, and the funny thing is you did the tougher half. You paid for a somewhat expensive repair that you were under no obligation to do. That fellow though owes you nothing but gratitude. You should have put him in the loop. Even if that meant eventually losing the deal on the car.

What I would do is honor the trade. The financial hit sucks, but you know what? You are a person with integrity and honor, and that is something that money can never bestow upon you.

So honor the deal and if he doesn’t have the money by Friday do the second most honorable thing and offer to split the repair costs on Saturday. If he doesn’t bite, take it to Asheville but don’t sell it. I’m begging you. I already see enough rolling rustbuckets at the auctions from you damn Yankees.

Author’s Note: Steve has a short memory that comes and goes with his once thick New Jersey accent. You can always reach him directly at steve.lang@thetruthaboutcars.com.

 

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How I Royally Screwed Up My Life And Bought… http://www.thetruthaboutcars.com/2014/06/how-i-royally-screwed-up-my-life-and-bought/ http://www.thetruthaboutcars.com/2014/06/how-i-royally-screwed-up-my-life-and-bought/#comments Mon, 09 Jun 2014 11:00:33 +0000 http://www.thetruthaboutcars.com/?p=839793 A 33 foot stretch limo that was formerly owned by a famous run down strip club in Miami. Two small TV’s that dated back to the beginning of the Clinton era. Cheap burgundy upholstery that I probably would never want to study with a forensic light. 104,000 miles, and a corded phone right next to the champagne glasses in […]

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limoclosetvphone

A 33 foot stretch limo that was formerly owned by a famous run down strip club in Miami.

Two small TV’s that dated back to the beginning of the Clinton era.

Cheap burgundy upholstery that I probably would never want to study with a forensic light.

104,000 miles, and a corded phone right next to the champagne glasses in the mini-bar. Oh, and it was a Cadillac. Not just any Cadillac. But the last of the old-school rear wheel drive Cadillac Fleetwoods with rear-wheel drive and the 350 V8.

Everyone screws up at some point when it comes to cars. But when I screw up… it’s something truly special.

This limo from Stripper Central had wheels that were (cough! cough!) begging for what most mother’s call “negative attention”.

limowheel

These were 90’s era gangsta wheels that, here in Georgia, are the rolling equivalent of MC Hammer pants. 

The reason why I bought this rolling showcase of 90’s era bling was the same reason why most car dealers and hobbyists end up buying this stuff.

We got drunk and saw it on Craigslist.

Now, in my case, someone from Alabama had already seen my own personal screw-up of a badly bought vehicle. A 2007 Crown Vic Police Interceptor that had been overhauled to a point of being practically brand new.

vic

Transmission replaced recently? Check!

Suspension overhauled? Big check.

A stack of papers that made the history of this car look like a paperback book? A never ending stack of papers and check copies.

vic2

I paid a bit for the Interceptor since it was so new mechanically. About $2600 in total.  Drove it for a bit around town just to revel in what was a good deal on paper.

And then… nothing… nobody wanted a gas guzzling police car. It sat for months on end.

So what did I do? Well, first I got the phone call.

“My name is Sherman K Wires June-yah! I have a Cadillac stretch limo and an old Inidan bike I’m tryin’ to sell. You want to do any tradin’ with that police car?”

limointerior

My business is right near Deliverance country and, as such, I’ll pretty trade anything except chickens and tomatoes. I have a neighbor back a bit who raises both and I got all of those I need.

In the south, you get more than your share of folks who want to trade due to their own car’s mechanical issues. More times than not, you’re better off not doing it.

limotenseats

“Tell me about em’?” and thus started a 30 minute monologue I put on speakerphone while drinking bourbon, and going on Craigslist to look at the pictures of his two vehicles.

The first thing I noticed was that the Indian motorcycle was a fake. Fake Indians are as common as kudzu around here thanks in large part to a powersport auction that gets thousands of repossessed motorcycles every single month. The first play toys to bite the dust are always the phony ones. Yesterday’s Chinese scooters with Honda-esque names to them have largely been replaced with full-blown imitators of classic machinery.

limodriverseat

So that Indian was out. But a Cadillac limo? Hell, I had never bought a limo before. May be worth at least checking out now…

I ended up falling in love with the old bastard. It had that perfect combination of retro-kitsch and “Look at me!” uniqueness to it. I drove the Crown Vic to central Alabama through winding one lane roads, and met the fellow halfway.

Within ten minutes we exchanged keys and papers. I was shocked to find out that this behemoth could actually manage right near 20 miles per gallon if you kept it going at a 50 to 60 mile per hour clip. Just don’t press hard on the accelerator. Ever.

My goal was to surprise my wife by rolling it up to our driveway.

limoside2

 

Well I certainly did, and I managed to surprise a lot of neighbors as well who knew my regular work. Pretty soon, I was filling up the limo with folks I had known since forever and giving them a joyride.

There were lots of ideas hatching up in my enterprising little head while I took that drive. Most of them bad ones.

limootherside

The Atlanta Braves will soon be coming to about 15 miles from where I now live. So why not create a party/limo service to that new stadium and back?

Well, there were liability concerns. Old car concerns. People potentially barfing in a 100 square foot space with only two rear doors for ventilation. All of these things conspired to keep me conservative with that use and abuse.

limoprius

Then I thought about putting a big wrap around it and advertising it at the big box stores a few miles from my car lot. Other nearby dealerships use old military trucks to hang banners and pollute the aesthetics of the nearby Walmart and Home Depot parking lots.  So why not do the same with a vehicle that people would actually want to ride in?

To be blunt, I just saw it as hokey, and this thing had a neverending assortment of electrical issues that required a battery jump if I let it sit for a few days… which always happened. $2000 for a wrap seemed like a lot. But I realized that a supersized magnet could be had for about a tenth of the price. So financially, that was in the running. I just never warmed up to it.

limonightinside

In the end, I just used the old limo as my own personal party and fun time vehicle. I took my wife and her friends to the movie theater when it came time for her birthday. I used it for my son’s birthday as well along with one of my mechanic’s kids. When Black Friday came, I was able to get a 32″ TV mounted on the wall behind the driver.

So now I had 3 TV’s. A ton of leather, and a vehicle that gets easily noticed wherever I took it.

That was the good news. The bad news was that like all novelties, I got tired of it after a while. It took up space. It required a lot of little things to be done which all soon added up, and this past week I finally sold it for $2800.

limolast

So now I have one less limo in my life.  As for other automotive screw-ups, I have plenty to share. Dozens in fact.  But what about you? Have you ever bought a fun vehicle that became a rolling mistake as soon as you were given the keys?

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Hammer Time: Memories of Metros http://www.thetruthaboutcars.com/2014/05/hammer-time-memories-of-metros/ http://www.thetruthaboutcars.com/2014/05/hammer-time-memories-of-metros/#comments Fri, 30 May 2014 04:01:59 +0000 http://www.thetruthaboutcars.com/?p=834201 There it stood, right next to the Michael Jordan Wheaties display. A brand-new 1992 yellow Geo Metro convertible. Price Chopper, a local New York supermarket chain (think Pathmark or Albertson’s on crack) was opening up a brand new location in Saratoga Springs. The Metro would be the perfect vehicle for upstate New York’s salty roads […]

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metro1

There it stood, right next to the Michael Jordan Wheaties display.

A brand-new 1992 yellow Geo Metro convertible.

Price Chopper, a local New York supermarket chain (think Pathmark or Albertson’s on crack) was opening up a brand new location in Saratoga Springs.

The Metro would be the perfect vehicle for upstate New York’s salty roads and wickedly cold weather for one irrefutable reason. It was free… after tax, tag and title.  The only thing I had to do was figure out how to win it.

So I got busy. 150 entries a day for 3 full months. 13,000 in all. The day came for the drawing, and I won!

25 pounds of free meat. To make matters worse, I was a vegetarian at the time.

So what did I do? I got a friend’s cooler. Put in 25 pounds of filet mignon, and took a three and a half hour drive home to impress my dad.

He was impressed. Sadly, it would take me another 10 years before another Geo Metro would enter my life.

metro7

The first was a burgundy 1997 four door automatic. I bought what was arguably the shittiest of all Metros for $2000 back in 2002, and sold it for $4000. Doubled my money. Even the paint flaking on the roof and the trunklid didn’t detract from the mythical promise of exceptional fuel economy.

Unbeknownst to the buyers of these loveless shitboxes, the automatic version of the Metro drained the MPG numbers by at least 7 mpg. The powertrain was like a rubber band that gave you more resistance as you tried to stretch it out. If you drove it around town and wanted to keep up with traffic, the four-door three speed automatic got only about 30 mpg combined.

I would later find out that a a Tercel could beat it in real world driving. A far heavier and better engineered Civic could match it. Even the almost as cheap Chevy Cavalier could keep up with the Metro in terms of real world fuel economy. Once I sold that Metro, I thanked the good Lord for separating me from this piece of mobile tupperware and proceeded to focus more on W124’s, rear-wheel drive Volvos, and anything made by Subaru.

I called those nicer models the “wanna-be’s”. As in folks who wanted a Lexus or a BMW, but couldn’t afford their price premium in the used car market, would wind up buying one of these three models instead. I bought plenty of other vehicles as well. But chances are, if there was a well-kept trade-in at the auction that matched one of these three models, I would buy it. New car dealers only cared about financing the new and late model vehicles back then. Older cars were a no-no nadir. So it was relatively easy to find good ones to resell.

As time went on, I began to see those Metros regularly hit the $500 to $1000 mark at the auctions. Quality sold, and the Metro wasn’t it. Nobody wanted them until very late 05′ when Hurricane Katrina hit.

Then things started to get a bit weird at the auctions. I would see Metros matching the prices of Volvos that were not much older and infinitely more deserving of a buyer’s attention. Contrary to the frequent eulogizing of cheap defunct cars, I had zero love for the Metro. It was a deathtrap that anyone who cared about their well-being would stay the hell away from.

swift

Then I found a Metro with good seats. It was called the Suzuki Swift. A 5-speed hatchback with a 4 cylinder engine, the Swift was surprisingly fun and for $600, as cheap as the average repair for a newer Volvo. My wife loved it. My mom thought I was an irresponsible father, and after an interminable delay in market interest, I was finally able to unload it for $1500.

Why the hell did I like that thing? I had two kids and a stay at home mom to think about. Not some ancient tin can of a car.

Well, it got worse, because within three months, I would buy two more Metros.

metro3

 

The first was a 1996 3-cylinder hatchback. White. 90k miles.  $500 plus a $50 sale fee.

It was a steal of a deal. I eventually replaced the wheels and sold it for $2800. Then, I struck fool’s gold with a  first generation Geo Metro at an impound lot auction in South Atlanta.

Imagine 27 dents, 37 dings, and three shades of green.

Imagine 27 dents, 37 dings, and three shades of green.

It was a snot rag. Three shades of green and inexplicably worth my time. The driver seat had virtually disintegrated and yet, there was an immaculate one on top of the back seat along with a driver side mirror. It was a salvage vehicle that was wrecked way back when it was worth something.

188,000 miles. Rebuilt title from Alabama. I bought it, running, for $125. I figured why the hell not.

Well, no A/C in Georgia and a slim chance for profit for starters.  I wasn’t about to put it up at my retail lot. So I drove it around the neighborhood for a bit.

It ran fine. Perfect. After replacing the driver seat and tossing the old one in a nearby dumpster, I decided to sell it at the one place that could give me a price premium for unique crappy cars.

Ebay.

Old Peugeots at the auctions? Ebay.

A Volvo 780 bought for $90. A nine-year old Subaru Impreza with nothing but primer for paint that I bought for $76.25 out the door? Both ended up on Ebay.

Low-mileage Crown Vics, Colony Parks, Mark VIIIs and 1st gen Priuses with body damage. All I had to do was buy them, take 24 pictures, and write up a glorious soliloquy of pithy summations worthy of an Ebay audience. They brought strong money.

I would buy, sell, and meet the new owner at Atlanta’s Hartsfield Airport with a free Starbucks in my hand. I averaged about 150 deals a year during the mid-2000’s and about a third of them were on Ebay.

This car held onto my conscious thoughts like a fungus. One day, I decided to do a financial spreadsheet. Like a lot of former financial analysts, I suffered from this nasty little OCD-like tendency to put anything that required a long-term mathematical answer into a spread sheet.

This time, I pitted the Metro against a 2001 Yamaha XC125 and did the math to figure out which one would be cheaper in the long run if you maximized their passenger count. Long story short, the two trained monkeys riding a scooter wouldn’t match the five Pygmys that would be stuck in the Metro.

Now that I figured out the Fantasyland part of my life, I decided to sell the Metro. My first law back then, which I still abide by now, is to never fall in love with a car.

10 days later, the Metro sold for all of $700. This is where things got weird. The very next day, the buyer drove 6 hours from western Tennessee down to Atlanta to meet me. He was one tough looking, intimidating, son of a gun.

Sunglasses, tattoos, one of my friends remarked that he had the smell of shit and spit. I said one word, “Hi.”, and for the next hour, all I did was listen to a really nice guy tell me about every single Metro he has ever bought while staring at my reflection on his sunglasses. This guy was made for this car. I pocketed the $700 and decided that I had made a match in small car heaven.

All these memories came back to me this evening for one reason.

mirage

 

The new Mitsubishi Mirage. I have yet to drive it. But the Mirage is probably the first car whose parsimonious pedigree harkens back to that nearly forgotten world of basic cheap cars in the United States.

In today’s world, where a basic economy car comes with over 100 horsepower, 15 inch aluminum wheels, and 10 airbags, the Mirage strikes me as something that is worthy of the old Metro’s econobox heritage.

So count me in as one guy who is willing to cheer for a contender that is a pure pretender.  I look forward to buying them real cheap when 2020 comes around. Who knows? By then the Mitsubishi Mirage may replace the Geo Metro as the penurious used car of choice for the modern day tightwad.

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Hammer Time: Are Shareholders Worth It? http://www.thetruthaboutcars.com/2014/05/hammer-time-are-shareholders-worth-it/ http://www.thetruthaboutcars.com/2014/05/hammer-time-are-shareholders-worth-it/#comments Wed, 28 May 2014 14:20:07 +0000 http://www.thetruthaboutcars.com/?p=448804 Capitalism has no loyalties. Everybody is replaceable. Products. Employees. Employers. Services. Alliances. Joint Ventures. Financiers. Even the executives of multinational firms along with their board of directors are only as good as whatever quarterly numbers can be cooked up by their ‘independent’ auditing firm. Capitalism is the ultimate “Let’s go!”, “Do it!” and “Screw you!” […]

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balancing act

Capitalism has no loyalties.

Everybody is replaceable.

Products. Employees. Employers. Services. Alliances. Joint Ventures. Financiers. Even the executives of multinational firms along with their board of directors are only as good as whatever quarterly numbers can be cooked up by their ‘independent’ auditing firm.

Capitalism is the ultimate “Let’s go!”, “Do it!” and “Screw you!” of economic systems. You name the angle or need in capitalism, and chances are that there is a market substitute that can immediately fill the gap. Even government regulations can be routinely challenged by trade organizations, international courts, and the all too common political handshake.

All this reality happens… on paper.

The truth is that capitalism is tempered by the culture where it’s practiced.

In the world we live in today, corporations and industry interests always pursue laws and relationships to protect their gotten gains. The ultimate goal of some companies isn’t progress. But to keep certain competitors and market substitutes far away from the hands of the free market.

Consumer first? Hell no! Earnings first? Hell yes! This brutal reality of corporate self-interest brings on a few tough questions when it comes to the American auto industry in particular.

Everyone has their own hierarchy of worthiness when it comes to an automaker’s success. Bonuses, dividends, stock options and pensions are all realigned to account for the rewards of good work.  So with that in mind, let me have you think about a question that has bugged me now for several years.

Are individual shareholders worth it?

As I look through the recent history of our industry, I am having trouble figuring out a single scenario where individual public shareholders made the difference. Ross Perot couldn’t kick Roger Smith’a ass into gear. Lee Iacocca and Kirk Kerkorian were the crown jesters of a pointless takeover exercise. As for Ford, wasn’t the fact that the Ford family held sway the major reason why an industry outsider like Alan Mulally was successful at restructuring the company? He didn’t need to worry about holding off on a strategy, or hiring some lackey to his management team,  just because some schmuck with a big block of stock thought he knew more.

Smaller shareholders are nothing more than gamblers. If something bad happens, they are the last to know and for good reason. They don’t know anything. Even if they did, their shares don’t enable them to help create that change. I can’t think of one solitary situation in the last 50 years where a small shareholder has been able to make a difference in any automobile company.

Who has offered the greatest stability and success in the long run? In our industry it may very well solely rest in the wiser and more patient hands of the family controlled business.

The most successful Japanese auto company is owned by the Toyoda family. The most successful European company, Volkswagen, is ruled by Porsche Automobil Holding. A German holding company owned by the Porsche families.

As for American manufacturers, only Ford, a company controlled by the Ford family for well over a century, was able to survive the 2008 meltdown without a direct bailout. The shareholders did nothing but lose all their money and offer many of us a golden opportunity to short their stocks. John Q Public and Cerberus were inevitably replaced by the unions, Fiat, and Uncle Sam.

Could individuals shareholders ever make a difference in this business? If not, do they simply make it easier for the family with limited resources to control the business?

Instead of offering a reflexive yes/no based on ideological allegiance, I want you to also think about the financial issues. We are in a heavily cyclical industry. White knights, along with new leaders, have helped save nearly every automaker from bankruptcy or a hostile takeover at one time or another.

But can this defense be better executed with a family that has their own name and reputation to defend? Instead of a bunch of shareholders who are in it simply for the stock price?

My answer is yes. I think small shareholders serve as nothing more than a money pool for those who are doing the real work. In a well-run organization they offer liquidity. In good times, they get dividends and stock appreciation. In bad times, they usually don’t have any means to change the running of a car business for the better.  This business has far too many influencers on too many levels for public shareholders to effect change.

Am I wrong?

Author’s Note: Even when Steve is wrong you can reach him at Steve.lang@thetruthaboutcars.com

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Hammer Time: Not All Cheap Cars Are Beaters http://www.thetruthaboutcars.com/2014/05/hammer-time-cheap-cars-are-not-beaters/ http://www.thetruthaboutcars.com/2014/05/hammer-time-cheap-cars-are-not-beaters/#comments Mon, 26 May 2014 10:00:27 +0000 http://www.thetruthaboutcars.com/?p=829882 One dollar of depreciation in four years. Fifty-five miles per gallon. Forty-eight thousand miles. I may have very well owned the cheapest car in America a few years ago. Back in 2009, I bought a 2001 Honda Insight with 145,000 miles for all of $4001 at an auction. After four years and with 193,000 miles, I […]

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2001-honda-insight-rear

One dollar of depreciation in four years.

Fifty-five miles per gallon.

Forty-eight thousand miles.

I may have very well owned the cheapest car in America a few years ago. Back in 2009, I bought a 2001 Honda Insight with 145,000 miles for all of $4001 at an auction. After four years and with 193,000 miles, I sold it last year for exactly $4000.

That’s all well and good, but let’s face it folks. I’m in the car business. Plus, a first generation Honda Insight is pretty much a cheat when it comes to cheap cars. It was designed with stingy bastards like me in mind who use the edge of the technological envelope instead of individual ingenuity and improvisation.

That Insight was a cheap car… but definitely not a beater. Why? Too much money and too few stories about personal travels and other unique mayhem. To me, a beater is a concept that has far more to do with the owners than the actual car.

Three qualities define the beater.

Personalization: Murilee’s 1992 Honda Civic may outlast the Crown Vic dinosaurs that find their way to government auctions and taxicab companies.  But his 1965 Chevrolet Impala was a rolling embodiment of the glories that come from a beater that has true inner beauty. He made that car whole in every sense of the word.

Parsimony: Beaters must always remain cheap when it comes to cosmetics. A 1983 Lincoln Mark VI that drools out liquids on a daily basis and has duct tape on every seat and door is more of a beater than a Metro bought new and maintained with someone’s obsessive compulsive disorder.

Stories: Rolling sewing machines that spend their days droning around on traffic-laden roads are not what beaters are about. To me at least, I want the really out there stuff. The Volvo wagon whose ten foot headliner meticulously chronicled the unique exploits of two young female lovers who traveled the country. The other Volvo wagon that was bought cheap and proceeded to financially emasculate one of our writers. The other, other Volvo wagon that was rescued from the crusher and brought back to the loving hands of a brick enthusiast.

An ability to outlast other cars to the point where it contradicts all known levels of applied physics should be spiritually welded with the stories that inevitably come with a good personalized car.

So what about your story? Did you one day find a lonely old 1980’s Subaru wagon that was used as an official beer car for your local hash events?   Did an old family car help you more fully understand the pharmacological events that come with attending Grateful Dead concerts? Heck, did you take a Renault LeCar in the woods and chase wild animals with it?

We all have our moments of high weirdness with a beater. So feel free to share yours.

 

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Hammer Time: PT Cruiser? http://www.thetruthaboutcars.com/2014/05/hammer-time-pt-cruiser/ http://www.thetruthaboutcars.com/2014/05/hammer-time-pt-cruiser/#comments Mon, 19 May 2014 21:45:06 +0000 http://www.thetruthaboutcars.com/?p=461266 $11,800. That was the asking price for a 2008 Chrysler PT Cruiser down at my local Chrysler dealer back in June 2008. Throw in a $1500 rebate or the “Refuel America” $2.99 per gallon guarantee into the equation, and you may have ended-up with a pre-tax, tag, title price right around $10,300. Not bad. Not […]

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pt1

$11,800.

That was the asking price for a 2008 Chrysler PT Cruiser down at my local Chrysler dealer back in June 2008. Throw in a $1500 rebate or the “Refuel America” $2.99 per gallon guarantee into the equation, and you may have ended-up with a pre-tax, tag, title price right around $10,300.

Not bad. Not bad at all.

Then again, was it? There are a lot of long-term factors to consider when approaching any of the less popular new cars that are in their last years of production. Not all will be a good deal.  But you may be surprised. Join me now as we journey down the PT-shaped rabbit hole.

pt12

If you’re not an enthusiast, and simply wanted a ‘keeper’ car, that $10k Cruiser may have been a great deal in 08′. Even with the abysmal gas mileage and the pointless towel rack in front of the passenger seat.

pt3

Folks who don’t drive very much… hmmm… Let’s say that folks who frankly don’t give a damn about cars at all were the target du jour for most Cruisers that went out the door. It was a styling statement in a cheap car world that ranged from plasticized SUV wanna-be (Dodge Caliber) to automotive androgyny (Toyota Yaris).

PT Cruisers of the time typically came in two packages. Blah boring basic and turbo/convertible kinda interesting. This is a nuance that shouldn’t be missed. Sometimes you can find a nugget of used car goodness within an ocean of a model generation’s ennui.

pt11

The right engine. The right trim package. The right seats. Pretty soon you are going from a strip model to a street hooner.

So what to buy?

As a long-term dealer and enthusiast let me cut one big choice out of your lineup.

pt6

The entry level model. You like driving? Forget it. Don’t even bother. When you see an old PT Cruiser that has a low number in bold, and think to yourself, “Hey, that looks like a good deal!”, pretend like you just ordered a sundae and all you got was the ice cream.

Look at that sad little melting scoop of ice cream. It’s store brand surplus without the real whipped cream, the sweet maraschino cherry, sprinkles, nuts, caramel and whatever other trimmings you long for.

pt7

Was it worth what you paid? Think about that. Most Sunday advertisements are selling you nothing more than cheap ice cream at a premium. Back in 2008, the real cost for the PT Cruiser came from getting that new car sweet tooth for a car that simply didn’t compare with a nice used Saturn Aura. Today, that same basic late model PT Cruiser car is a poor substitute for a 10 year old Nissan Altima.

Let’s also think about the old value quotient of hitting em’ where they ain’t. A Camry SE, an Accord coupe with a V6 and stick, and even the Malibu SS all have one thing in common.

They are usually too much money in the real world of buying cars. Most folks try to opt for the champagne popular car at the beer budget unpopular car price. In a perverse twist, many of these cars will handily outsell their less enthusiast oriented brothers and sisters.

You want value? Get the cheap wrapper with the nice stuff inside of it. The ‘old’ new car that was well-designed and given the great powertrain of a few years ago. The used car that you buy for the joy of driving instead of the brand or name that came with it.

pt9

If you consider that to be a PT Cruiser, well, all the power to you. They certainly sell cheap.

 

 

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Hammer Time: Batter Up! http://www.thetruthaboutcars.com/2014/05/hammer-time-batter-up/ http://www.thetruthaboutcars.com/2014/05/hammer-time-batter-up/#comments Fri, 16 May 2014 11:00:23 +0000 http://www.thetruthaboutcars.com/?p=820914 The bases are loaded and the score is tied. Two outs in the bottom of ninth. 3 balls. 1 strike. You know this pitcher better than you know your brother. The last pitch had almost cleared the left field pole, and the entire stadium. Your swing was as beautiful as Mickey Mantle in his prime. […]

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pitch

The bases are loaded and the score is tied. Two outs in the bottom of ninth. 3 balls. 1 strike.

You know this pitcher better than you know your brother. The last pitch had almost cleared the left field pole, and the entire stadium. Your swing was as beautiful as Mickey Mantle in his prime. Just a few inches to the right and you would have been on your way to a private party with friends instead of another walk back to the batter’s box.

The catcher signals, and you catch one finger out of the very corner of your eye. Fastball. The pitch comes, right down the middle. It’s almost like a dream and yet, you can’t do anything about it.

The stomach pangs in stress and anguish as the rest of your body remains still. You watch it go past. The thud in the catcher’s mitt. The umpire bellowing, “Stttaaarrriiikkeee!!!” Your manager had told you not to swing and now, you have 50,000 fans booing as you curse under the breath and step away from the batters box.

Will you get a pitch that good again? The pitcher grins as he now knows, his mistake ended up giving him an advantage.

This is how I felt yesterday afternoon. That manager who I wanted to fire was a neighbor who I had bought a car for nearly eight years ago. A four year old Cadillac Seville with only 26,000 miles, a CPO warranty still in effect, and the exact color they wanted for all of $12,600. It was nearly $4000 less than what the nearby dealer had offered for the same type of vehicle. Except his was a year older and had 10k miles with no warranty at all.

For 8 years they had been happy with it being their retirement vehicle. A lot of long-distance trabeling and one of my mechanics ensured that the vehicle would stay in good running order. No Northstar engine issues. A couple of oil leaks around the 100k mark. but nothing out of the ordinary given what it was. They were happy, and I was happy for them.

Then a Solara driven by an idiot decided to make a turn going against traffic and…. bam!…. hospital visit and totaled car.

The good news was that the folks were okay. Bad news? All the airbags did their job and a 12 year old Seville wasn’t a prime candidate for the replacement of this safety equipment and the surrounding sheetmetal. The car was totaled. There was some soreness. An honest apology from the bad driver, and another page for everyone would be turned.

I get the call that evening, “Steve, someone just totaled out the car. We’re at the hospital”

“Is everyone OK?”

“Kinda. Our friends are about 80 and they were shaken up a bit. A little sore. But no broken bones. Can you come up to the hospital and pick us up?”

“Sure. I’ll be right there.” I palmed the keys to a nearby 2003 Camry and made my way against rush-hour traffic to the hospital.

It took a couple of hours to get discharged. Since there was no bleeding or dying, there would be a lot of waiting. I parked at a nearby church where my wife teaches Sunday school and made the long trudge to the hospital.

“Is everything OK with ya’ll?”

An older lady was resting on a bed and my neighbors, along with an elderly stranger, were waiting for their turn.

“We’ll be fine. But chances are Manda will need a couple of days of rest before heading back to Ohio.”

I became a good listener for the next half hour. Eventually the subject came to their next car.

“Can you help us find a Malibu?”

Sure, what are you looking for?

“We thought we would get another silver car with leather. Two years old. Maybe around $10,000.”

“I hate to say it, but you’ll be waiting for another two years to get that type of car, if you’re lucky.”

“So what do you think we should get?”

A tricky question, and I had to wait a moment to formulate the right response. These people were conservative in tastes, and I knew that I would be dealing with folks who wanted a showhorse car at the same workhorse price I got eight years ago. That deal was a lightning strike, and the auction market is a lot more competitive in 2014 than it was in 2006.

“Go ahead and when you feel able, just go to a dealership and test drive a few vehicles. See what you like and let me know.”

This turned out to be a blessing and a curse. The blessing is that it shocked them back into the reality of modern day car prices. Everything cost a lot more these days. The curse came from them testing cars with cloth interiors they didn’t like, and leather interiors that they thought were the bee’s knees.

“Can you get us a 2010 Buick Lucerne or LaCrosse for around 10k?”

I sighed with my eyes, “Yes, but the reality is a one owner car that has been maintained at a dealership and has a perfect Carfax goes for a stiff premium at the auctions. If you want to buy a clean car, you have to pay a clean book price.”

I showed them the clean Manheim Market Report prices for those two vehicles.

“Well, we can handle a few dings here and there…”

Baloney! Folks who insist on leather for a late-model vehicle aren’t going to tolerate scratches and scuffs. They want the perfect car, and that’s perfectly fine. But there is a price for that.

It’s called the clean book value.

I decided to browse a bit as my neighbors were busy debating each other about the car when, I found it. The perfect car.

07sat3

A 2007 Saturn Aura XE in the same color silver as their old Cadillac. It had half the miles of their totaled Seville (68k vs. 136k). The 07 Aura had also been reconditioned by two dealerships that I like to buy from because they don’t scrimp on getting their vehicles front-line ready.

One owner. No accidents. Extensive service history. This would very likely be the best car at the auction that day.

“Hmmm… well that’s interesting. Can you tell me about it?”

07sat5

I showed them the Wikipedia listing. I explained to them that the 3.5 liter engine and four-speed automatic transmission were the same one used in my wife’s old Malibu Maxx that they had liked so much. I told them that Saturn was now an orphan brand, but any GM dealer can service these vehicles and that this vehicle would likely be at least a thousand or so cheaper than the Buick since Saturns are no longer bought by most of the major auto-finance dealerships.

03s802

Nobody shops around for a Saturn anymore.

“Yeah, but I’m not sure I want a Saturn.”

“Okay, well I’ll pull out the Carfax and let you read a few of the reviews from actual owners. I gotta eat with the family. Let me know what works.”

An hour later I got the news that I was anticipating…

“Barbara really wants to get the Buick. Just keep your eyes open, and if you find one, let us know.”

The next day the Saturn sold at the auction for $7500 plus a $200 auction fee. Throw in my $500 fee, and they could have bought the Saturn underneath the clean wholesale value. It would have been an easy slam dunk.

03s801

Instead, I wound up buying an 03 Volvo S80 in silver with 130k miles for just under $3000. A re-man transmission was put in it only 2,000 miles ago and the car just got the belt changed at 122k. The only reason why I was able to get it was because the alternator was weak, and only 1 of the other 108 dealers took the time to look at the history.

03s802

Most long-time dealers just assume these Volvos were traded-in for a bad transmission. Plus Volvos tend to be slow moving, but this one has the right color and recent maintenance history for a finance deal. I’ll take my chances.

I hated to see that Saturn go by though. It was the perfect car with the perfect everything else. Will I get another nice easy fastball down the middle? Eventually I will. Unfortunately, my chance to swing at it now depends on two managers who are probably still busy bickering with each other.

07sat1

That Aura will now be showcased by a dealer in Alabama. So what about you though? Has there ever been a car that you knew would be the perfect fit? But someone, somewhere, decided otherwise?

 

 

 

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Hammer Time : Saving An Old Cougar From Extinction http://www.thetruthaboutcars.com/2014/05/hammer-time-saving-an-old-cougar-from-extinction/ http://www.thetruthaboutcars.com/2014/05/hammer-time-saving-an-old-cougar-from-extinction/#comments Thu, 15 May 2014 12:10:52 +0000 http://www.thetruthaboutcars.com/?p=820450 An unsellable car comes in many forms. The three-door minivan. The stickshift attached to a non-sporty wagon. The Daewoo. The conversion van with design graphics rooted in sexual fantasy. Then there is this car. A car designed in the Reagan era with a cheap plastic grille, an even cheaper plasticized interior, and a luggage rack […]

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cou2

An unsellable car comes in many forms.

The three-door minivan. The stickshift attached to a non-sporty wagon. The Daewoo. The conversion van with design graphics rooted in sexual fantasy.

Then there is this car. A car designed in the Reagan era with a cheap plastic grille, an even cheaper plasticized interior, and a luggage rack on the trunk that would do Lee Iacocca proud.

God I love this thing. What the hell is wrong with me?

They say that absence makes the heart grow fonder. Well that is true. But when you throw in a kindly old man with a love for old cars, it can get infectious.

This past weekend, I met this old fellow who wanted to get some witches brew to keep the transmission on his Cougar in shiftable shape.

“How many miles?”

“Oh, about 400,000 miles.”

“You’re kiddin’!”

“No, no, no… I take a lot of long trips. I like the seats and all I have to do is get it to 80 and let time take care of itself.”

Mark was about 80 years old and his life seemed to be the ultimate exercise in triumph in hardship. Five great kids, but not a lot of grandkids. A public pension, but not enough to handle the debts that came with esophageal cancer. A long marriage, and a recent death of a lifelong loved one. His Cougar had been the one enduring constant in his life for the last 17 years, and he wanted to keep it roadworthy for as long as possible.

“Hey, let me ask you?” He told me in a raspy voice that reminded me of the old boxing coach from Rocky, “Do any of these things work?”

A lot of you would assume that everything on the auto parts shelf related to improving a transmission is garbage, and over time, you’re right. There is no snake oil that can reverse the process of transmission wear.

But some of the solvents in these products (and many auto-trans and power steering additives) will soften and swell the seals to get the transmission’s internal seals to seal and hold proper pressure and shift properly.

At least for a while.

I told the guy, “Look, transmissions on these vehicles are as cheap to replace as a bad toupee. Here’s a site I use to find auto parts.”

I showed him the car-part.com site…. and it didn’t take. This guy was close to technology as we are to typewriters. So instead, I gave him three names and numbers to get a good used transmission. However, there was still a problem.

He didn’t have the money. Broke is broke, and at 80 years old, this guy simply didn’t have the means for those ends. I hate situations like this, but sometimes you just have to offer a temporary band-aid for a bleeding wound that will probably require further attention down the road.

“Let me buy this for you.” I pulled out some Trans-X. “If your mechanic tells you not to use it, then just return it.”

“No, no, no. I appreciate it. Really.” He gave me an aged smile and a pat just under my shoulder. “What you have already done is a mitzvah. Thank you…” and the rest of his words came out in a blur as I was too shocked to here a Yiddish word from an old man living in northwest Georgia.

I always like to kid about living somewhere between civilization and Deliverance. In truth, all my wife’s friends are smart. All my friends are experienced souls, and  my old life was one that I ran away from in much the same way as those with tough childhoods and troubled pasts move in the search for a better life.

Still I missed a lot. That line of thought is for another day, but sometimes the search for a perfect life can lead to imperfect consequences.

Later that evening, I saw that dealer queen at the auction.

cou2

 

A  swan song 1997 Mercury Cougar that would likely be the biggest creme puff of an old man’s car that I would see in the forseeable future. Five pictures rarely tell you the whole story.

cou3

 

cou4

 

cou5

 

After looking at the Carfax history (1 owner, no accidents, 12 service records) and the Autocheck (nothing weird with the title), I wrote the following on my Facebook page.

“Mr. Sajeev Mehta… I have just found the perfect car to compliment the Conti. 61,185 miles and yes, it is indeed an XR7.”

My timing was bad, and the car Sajeev bought was far, far worse. Thanks to a rare, almost incurable disorder known as, “The Lincoln Syndrome”, Sajeev had just decided to double his investment in one of the most heinous cars ever made in modern times. The 1994 Lincoln Continental. A car so bad that it needs two prestigious emblems to help you forget the fact that you got a gasket chewin’ 3.8 and a tranny slippin’ AXOD.

conti2

Then again, at $900 to buy, and a $900 double-down to bring everything back to day “fun”  condition, it was too good of a buying experience for Sanjeev to pass up. Yes, his brother is a stakeholder as well in this hopeless pastime.

conti1

 

“There’s only one MN-12 for me baby, and I already got it.”

So the next day, I look at the Cougar. It’s a showpiece. Whoever owned it beforehand had it detailed at least twice a year and rarely took it out of the garage.

Someone would buy it.

I went to the sale that morning, and there was just a ton of weird stuff. A 2014 Chevy Impala Limited, old style, with about 13k miles that ended up selling for $14,200 plus the seller fee. A 2010 Dodge Challenger SE in Blue with some substandard add-ons that went for $15,800. An 04 Viper SRT convertible with 22k that had arbitrated for a bad differential at the prior sale. That one went for $36,100.

viper1

After the 8th Volkswagen and 13th minivan crossed the block, the Cougar was up for bid.

I made a fist and mouthed the word, “Fifteen” so that he would be in at $1500. I was betting that the other dealers would sit on their heels or try to lowball it at a thousand. Sometimes this tactic works. Other times, you’re in for a dogfight.

It didn’t work. Someone in the corner hit sixteen, a friend of mine went seventeen. I was hoping for the King’s Rule at this point where you look out for the other guy, and the other guy looks out for you. But with nearly a hundred dealers looking at one vehicle at a time, the market is too competitive and the King’s Rule doesn’t apply.

The auctioneer went back to me. A guy that I have known for 15 years and worked with back when I was on the auction staff at five different auctions. I was thinking about doing a big bump and flashing two fingers for a two thousand dollar bid. Then something happened.

In those few seconds, I was looking at a car that, to be frank, I truly didn’t want. I had already got rid of four unsellable cars the week before, and already had one brown minivan that I took on trade that wasn’t going to sell for a while. At $2k plus the $155 fee, I would be one major repair away from playing around with a car that had no profit in it. Ebay prices were already at play, and I would more than likely be stuck with what I call an “Almost” car. A car that everyone says they want on paper until they try to find the vehicle they truly love.

I didn’t bid. I walked. The surprise was that there were no more bidders, but even at $1855 ($1700 plus the seller fee), I was just out of love for a car that I never truly liked in the first place.

As I walked away, I realized something. Two guys had loved two Cougars. One had driven the car to it’s very limits of usefulness. While the other had kept it in a time warp and will hopefully pay it forward to another ‘keeper’ among the enthusiasts brethren.

The car world had a strange balance to it.

As for me, I now need to start shifting my own gears before I get stuck in my own version of a 17 year old Cougar. There is a squalidness that comes with shucking old and new metal. Somehow, I need to get away from buying one car at a time and applying myself towards developing a better mousetrap that will have a more enduring impact.

Author’s note: There are a lot of click friendly links to this article that will help you better understand a few of the terms. It’s all click friendly. Feel free to reach me at steve.lang@thetruthaboutcars.com .

 

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Question Of The Day: Would It Be Better To Test Drive A New Car… Without The Dealership? http://www.thetruthaboutcars.com/2014/05/question-of-the-day-would-it-be-better-to-test-drive-a-new-car-without-the-dealership/ http://www.thetruthaboutcars.com/2014/05/question-of-the-day-would-it-be-better-to-test-drive-a-new-car-without-the-dealership/#comments Tue, 13 May 2014 10:40:27 +0000 http://www.thetruthaboutcars.com/?p=819593 Imagine over 500 cars at your disposal, and you pick the exact ones you want to test on the open road. There are no mind games. No bait and switch tactics. Nothing but you going to a computer, figuring out the most worthy candidates, and letting a salaried employee fetch the keys and answer the […]

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interior2

Imagine over 500 cars at your disposal, and you pick the exact ones you want to test on the open road.

There are no mind games. No bait and switch tactics. Nothing but you going to a computer, figuring out the most worthy candidates, and letting a salaried employee fetch the keys and answer the relevant questions to your car search.

Sounds too good to be true? Well, it’s already happened. There’s only one problem.

The place that does it primarily sells used cars, not new cars.

 

exterior

Thanks in part to the inordinate hassles of buying a car, Carmax is now the largest automotive retailer in the United States. In fact, they are now bigger than the #2 and #3 automotive retailers combined. They managed to do this tall order with just a small fraction of storefronts, and without the easy access to certain financing sources that help new car dealerships move their inventory. This is no small feat given the level of hardball tactics dealer lobbies usually inflict on state legislatures.

The almost universal desire to get away from bias and manipulation is a huge challenge for millions of new car buyers. Who offers the best car? It’s hard to say when advertising is all over the place and the chance to test drive all the new cars, without blatant bias at nearly every turn, is virtually impossible.

For consumers who are often firmly entrenched in the online search for a new car, the 21st century new car buying decision still hits the thick brick wall that is the early 20th century method of retailing cars.

The inherent costs to the Carmax model, for example, is still in the several billions of dollars even though they contract out a lot of their reconditioning activities. Between purchasing 500,000+ vehicles, investing in the real estate and physical infrastructure, hiring and training thousands of employees, designing the transportation logistics and the myriad of IT platforms, and finally, looking out for shareholders, Carmax can’t afford to offer the lowest price on a routine basis.

But despite this financial handicap, they still serve a large swath of the general public without resorting to the lower forms of salesmanship. People will pay a premium for honesty. If the new car business wasn’t in a legal stranglehold, chances are a lot of the fixed costs in buying a new car would go away.  Or at least consolidate to a competitive superstore / online order / specialty store world where consumers simply pick their best fit.

All of these sales channels are as common as kudzu these days for anything but new cars. Thankfully there are other alternatives; although their presence is usually fleeting.

For example, when many of us head out to the larger auto shows, we get the same unique chance to look at and test drive a lot of brand new cars.  The opportunity to walk around in one place and test drive what’s out there motivates millions of people to spend their money on a show that features things that you can usually go see for free. Just not under the same roof.

If you headed out to the more rural areas of the USA not too long ago, county and state fairs used to offer folks the same opportunity to go out and test drive a variety of new sheet metal. Maybe they still do, but I haven’t seen it here in Georgia for quite a while.

Finally, there are the rental car agencies, car sharing programs, and PR events that allow everyday folks to test drive what’s out there outside the new car dealership.

Except sometimes the new car is simply not what you want, and when it comes to rental cars in particular,  the vehicle may be too used to be new.

This brings me to the big question. If there was a place where you could test drive a new car, any new car, every new car, would you go? I’m sure you would so let me throw a knuckleball into that equation. Would you be willing to pay $20 for the opportunity to drive whatever you want for an entire day? Let’s keep it short drives. Fewer than 10 miles. But as many cars as you wish without being four-squared and stuck in a miserable cubicle for hours on end.

Think of it as an auto show that never ends. Would it be worth $20 to figure out which car will be your next car?

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Question Of The Day: Did You Ever Get Screwed On A Rebate? http://www.thetruthaboutcars.com/2014/05/question-of-the-day-did-you-ever-get-screwed-on-a-rebate/ http://www.thetruthaboutcars.com/2014/05/question-of-the-day-did-you-ever-get-screwed-on-a-rebate/#comments Fri, 09 May 2014 11:00:59 +0000 http://www.thetruthaboutcars.com/?p=818402 2007 was a nutty time for my car business when it came to buying parts and supplies. All the auto parts stores around my dealership were busy blowing their financial brains out in the pursuit of commercial business. I was retailing all the good cars I could find at the auctions, and it wasn’t long […]

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rebate

2007 was a nutty time for my car business when it came to buying parts and supplies.

All the auto parts stores around my dealership were busy blowing their financial brains out in the pursuit of commercial business. I was retailing all the good cars I could find at the auctions, and it wasn’t long before I started to see an armada of amazing deals come to my door.

12 free gallons of coolant (8 store brand concentrates, 4 Dex-Cool) at Autozone. 16 quarts of free synthetic motor oil plus 24 more quarts of conventional oil at O’Reillys. Advance Auto Parts would guarantee the lowest price. Then O’Reillys offered “cost plus” deals that I could barely even fathom. While the parts stores were busy slashing each other’s throats, I was steadfastly collecting all the cheap and free products that came from the marketshare bloodbath.

Armor All, Meguiars, Turtle Wax, auto care products that were trying to get a retail presence… all were practically free for the taking if you were willing to keep up with the offers. 2007 netted me enough auto care products to handle the next three years of my business.

This ended in early 2008, and by 2009, you could often get better deals by lurking at the Bob Is The Oil Guy web site. That’s when I started noticing a nasty trend. Things started to get a bit too cute with the rebates.

I would apply for a deal, scan a copy for my own records, mail it in, and wait.

Nothing. One month would pass. 45 days. Then two months.

It got to the point where I had a spreadsheet on Google Docs exclusively dedicated to all the rebates that I saw as bait. At least 20% of which were financially AWOL on any given time.

I would call, email, and even complain if their word and my mailbox weren’t aligning themselves the right way. Eventually I got what I needed, but boy, did I get ticked off at that constant tug-o-war of time.

These days I only stock up on certain products off-season (i.e. Freon in November) and pretty much stick to the Bob Is The Oil Guy site for whatever else is worth my time. I retail less, wholesale more, and it’s rare that I see something that is truly compelling these days.

One deal today did catch my eye. This one.  The only problem is I can’t endorse it wholeheartedly because maybe, perhaps, that rebate may find itself in that netherworld called, “lost in process”.

Every rebate that isn’t online is a roll of the dice these days. So with the odds in flux, let me ask you a painful question. “Did You Ever Get Screwed On A Rebate?”

This is your time to sound off on what I consider to be an industry practice that should be taken out back and burned to cinders. Mail-in rebates are an inexcusable screwing of the general public.

If you were ever one of those screwed, here’s your chance to vent.

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Question Of The Day : How Much Would You Charge To Teach The Basics? http://www.thetruthaboutcars.com/2014/05/question-of-the-day-how-much-would-you-charge-to-teach-the-basics/ http://www.thetruthaboutcars.com/2014/05/question-of-the-day-how-much-would-you-charge-to-teach-the-basics/#comments Wed, 07 May 2014 18:10:32 +0000 http://www.thetruthaboutcars.com/?p=817386 I grew up not knowing the difference between a V6 and a V8. Cars were a mystery to me. Motor oil could have been the same thing as cooking oil right up until my 16th birthday. Then I caught the bug. We all get it. A nasty incurable fever known as, “First-car-itis”. I wanted a […]

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celica

I grew up not knowing the difference between a V6 and a V8.

Cars were a mystery to me. Motor oil could have been the same thing as cooking oil right up until my 16th birthday.

Then I caught the bug. We all get it. A nasty incurable fever known as, “First-car-itis”.

I wanted a car in the worst possible way. I knew that if I just grabbed my hands on every magazine, book and repair manual I could find, that first car would become mine for a long, long time.

I didn’t expect a steep learning curve.

The public library in Englewood, New Jersey offered a nice selection of Chilton’s manuals that probably had all of one reader. Those manuals were thick, hard with just a few exceptions, and practically unintelligible at first.

This access to a repair manual made all the difference in the beginning.  I started by opening the hood to a 1987 Toyota Celica which wasn’t even mine, and figuring out where the hood prop was located. That took a little bit of time. Then I had to figure out the little things. The oil cap. The coolant reservoir. After endless page turning, I finally figured out where the brake and power steering fluids were, and accidentally also discovered one of the a/c Freon outlets.

Hot? Cold? Heck, for all I knew that little nozzle could have been a hidden charger for the air struts that lifted the trunklid.

My beginnings were more humble than the 1962 New York Mets. I knew nothing, learned a little however I could, and eventually became proficient at… the basics. It wasn’t until college that I learned how to change out brakes, and that took two other people to do most of the coaching. I brought the pizza and beer.

Cars are intimidating machines, and today’s sealed containers, plastic skid plates, and engine covers aren’t doing the curious novice any favors.

So my question to all of you is, “How much would you charge to teach a newbie how to perform the basics of auto maintenance?”

Let’s keep it simple. Oil change. Coolant replacement. Changing a flat tire. Replacing fluids from the top. Topping off the A/C. Replacing the battery. Checking fluids and tire pressure. Basic inspection of the brake pads.

Remember that they will more than likely need to learn how to use a jack and jack stands as well, and some may even be able to handle a tranny fluid change with either an excavator or a simple wrench if there is a simple bolt to remove it (pray to the old Volvo gods for easy access!). You may also want to throw in basic wrenching techniques into the mix.

Could all this be taught in one spring day?  If so, how much would you charge if you were teaching this type of course? Throw in some free pizza and cold beer for yourself as well.

 

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Question Of The Day : What If You Could Resurrect A Dying Or Dead Brand? http://www.thetruthaboutcars.com/2014/05/question-of-the-day-what-if-you-could-resurrect-a-dying-or-dead-brand/ http://www.thetruthaboutcars.com/2014/05/question-of-the-day-what-if-you-could-resurrect-a-dying-or-dead-brand/#comments Tue, 06 May 2014 16:21:57 +0000 http://www.thetruthaboutcars.com/?p=816065 I made my first small fortune in this business selling old Volvos. I started way back in the mid-2000‘s when I got downright militant about outbidding anyone on an older rear-wheel drive Volvo. In one year, 2007 to be exact, I managed to buy at least one Volvo every year from 1983 all the way […]

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oldvolvo

I made my first small fortune in this business selling old Volvos.

I started way back in the mid-2000‘s when I got downright militant about outbidding anyone on an older rear-wheel drive Volvo. In one year, 2007 to be exact, I managed to buy at least one Volvo every year from 1983 all the way to 2004.

I loved the Volvo brand as their rear wheel drive cars represented the perfect mix of comfort, safety and functionality. The discontinued 240, 740 and 940 were insanely easy to sell and cheap to buy; especially the wagons.

These Volvos usually had a history of conservative owners who took their cars to the dealership or Volvo specialized shops for service. Repairs were easy and reasonable thanks to long model runs and parts that were as common as kudzu at any Georgia junkyard.

The used car side of the Volvo brand represented a big fat target where young families, hipsters, Camry-oriented shoppers, and the still common Brick enthusiast could all find a Volvo worth keeping. I followed that tune of demand and soon became a daily reader at Brickboard, Swedespeed, and several other well known sites for Volvo aficionados. I was hooked.

Then I became unhooked.

The seeds of Volvo’s destruction started out as an opportunity for me. Owners began to trade in Volvo S70’s and V70’s from 99′ upwards due to a malfunctioning electronic throttle module. At the sales I would see these vehicles being sold AS/IS, buy them ridiculously cheap, and then take them to the Volvo dealer to get their software upgrade. Eventually Volvo did the right thing by extending the coverage to 10 years and 200,000 miles. However, as Volvos began to develop other issues such as lifetime fluids that weren’t so, and parts failures that were as cheaply made as they were expensive to fix at the dealerships, the marketability of these vehicles nosedived to the point of near irrelevance.

The Volvo S40 was a world-class blunder. The Volvo S60 and S80 were left to rot on the vine of Ford’s neglect along with the V70 and C70. The Volvo XC90 may have represented the brand’s only solid hit for the entire decade as the MBA marketeers at the Premier Automotive Group decided to make Volvo into a downright ridiculous alternative to BMW.

Volvo wasn’t alone in the quixotic pursuit for a more ‘upscale’ brand identity. Oldsmobile was positioned as an import fighter. Mercury tried to become a premium brand as well, and marketed heavily towards women, while Lincoln redefined American luxury in a way that no one outside of Dearborn could quite understand.

The list of failed brands stretches long since the Y2K era. Plymouth. Isuzu. Saturn. Hummer. As proof of their deadness in the retail marketplace, most independent dealerships that specialize in financing won’t even buy these brands… along with Volvo, Mercury and Lincoln.

You can’t sell a dead brand, unless you were maybe a successful overseas manufacturer trying to crack the American market. Or maybe the CEO of Ford or GM. Let’s assume that the perfect world exists. A place where you could choose your brand and launch your products without worrying about money. Consider yourself old GM, a newbie at Tesla, whatever you like.

What brand would you choose to resurrect?

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New or Used : Buy Retail? Sell Wholesale? http://www.thetruthaboutcars.com/2014/05/new-or-used-buy-retail-sell-wholesale/ http://www.thetruthaboutcars.com/2014/05/new-or-used-buy-retail-sell-wholesale/#comments Mon, 05 May 2014 17:55:55 +0000 http://www.thetruthaboutcars.com/?p=815738 Steven Love your articles on TTAC. Especially those on auctions, your dealership, and used cars. I was wondering, do you provide services to buyers looking to buy a specific car? The prices in ATL are much better than the market in New England, to the point where I would be willing to fly down, buy […]

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Steven

Love your articles on TTAC. Especially those on auctions, your dealership, and used cars.

I was wondering, do you provide services to buyers looking to buy a specific car? The prices in ATL are much better than the market in New England, to the point where I would be willing to fly down, buy a car and drive it back up. (I also have some friends in ATL anyway.)

If you do please let me know. I’ve been hunting for a decent priced NB Mazda Miata – and in my neck of the woods many are quite over priced.

If not no worries. I’ll continue to enjoy your articles.

Thanks!

Even before I wandered aimlessly around the Internet and found this place, I tried to build a car buying service that would serve the public.

The problem back then was the same problem that exists now. The general public wants to buy “showhorse” cars for “workhorse” prices.

That’s a tough market to serve, and to be frank, I got tired of being jerked around.

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Corporate customers were willing for me to buy the workhorse so long as it met certain criteria. Before AirTran merged with Southwest, I used to buy their vehicles for the Atlanta market. All I had to do with them is check three simple boxes. White, under 60k miles, and it had to be a Ford. Windstars, Rangers and Tauruses were their primary wants. They paid me cost plus $500, and I was trusted to serve their interest at the sales.

Meanwhile, I ended up dealing with three types of public buyers.

1) The Online Hamlet

This is the guy who sees a great vehicle that fills every single one of their needs and then says, “Let me think about it.” 90+% of the time these customers are just wasting your life’s energy.

2) The Illusionist

These folks always thought that the auctions were loaded with a  cornucopia of cheap and plentiful vehicles. These misguided souls wanted the quivalent of an immaculate five year old Maxima for $5000…. with leather! After showing them the realities of the auction market through the Manheim Market Report, they would write back every once in a blue moon asking me if I had anything. When I did, they became an Online Hamlet.

3) The Extremist

There were two versions of the extremist. Those who wanted me to find a very specific type of vehicle; which was almost always old or rare. They weren’t so bad to deal with because they knew their stuff, understood that old cars aren’t perfect, and could often carry a conversation that went beyond the words, “I, me, mine… gimme! gimme!”

The flip side of that coin were those who had absolutely no care about what I got, because I was buying a car to help them solve a problem. The goodhearted fellow who was purchasing a car for a parent or child who needed a car to drive. Ss for what type of car, it didn’t matter so long as it was white and the size of a Camry.

I would ask these customers what car the person had been driving before, and just buy a newer version of it. Camry drivers got Camrys. Accord drivers got Accords. Volvos begat Volvos.

Which brings me to your unique situation. To be blunt, there are two issues. The first is I wholesale the overwhelming majority of the vehicles i buy
(about 80%) to other dealerships in the metro-Atlanta area.  These customers look at cars as investments. Not a coveted possession or a depreciating asset. I find the cars that can check off all their boxes and move on to the next one.

The second hurdle (more like a brick wall)i s that you are asking me to buy a highly popular and seasonal vehicle during the very worst time of year to buy it. A well-kept Miata in the springtime will get all the money in the world at the auctions. Even an unpopular droptop, such as the Volvo C70 I bought for $1000 last November, will end up selling for about $2700 (less auction fee) during this time of year. I was unfortunate to buy it with a transmission that was going south, but fortunate to buy it at the right times. So I made money on it.

If you want me to buy a vehicle, it’s cost plus $500 and I will only buy a “lemming” these days. Late model cars that are off-lease, a rental, or a repo. A 2012 Mazda 5 Sport, silver with a black/gray interior an 62k miles I’ll try to retail for $12k. But if I bought it for someone who already gave me a 20% non-refundable deposit on the average book value before the sale, they would wind up paying around $10,500.

Late model, less popular cars are worth my buying. A car that I can flip to another dealer that specializes in that type of vehicle? Not so much.

Good luck!

 

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