People buy with their eyes in this business. Always have and always will.
I don’t care if you are a pseudo-sophisticated Yuppie wanna-be who thinks that Subaru is a value brand, (It’s not. They cater to the Costco crowd.) Or an impoverished mother of five who is taking her $6000 tax check and blowing it on the Cadillac of minivans.
Image completely rules this business. New or used. As much as I would love to sell old sturdy wagons and functional minivans that will last for another seven years, my customers want the modern-day crossover. The SUV that hypothetically gets great mileage if you read the window sticker upside down. A compact with an impossible to find leather interior, and of course, the upscale ride with the nice big wheels.
The first test of whether a car sells in this business comes down to a simple question.
Everyone has a certain point with their daily driver when they would rather see money back in their pocket, instead of seeing more money fall out of their pocket.
Time marches on. That old clunker loses it’s endearing qualities and then, what do you do?
Well, the answer depends a lot on what type of vehicle you’re trying to sell… which is why I’m introducing Carmax’s wholesale operations into this write-up.
6:30 P.M. and three more cars just pulled up to my place… on a Monday…
Have I just bought a McDonald’s franchise? Not quite. This is the start of what we call “tax season” in the used car business.
A time when tens of millions of Americans who live paycheck to paycheck get a nice four figure lump sum from Uncle Sam and his favorite sub-prime debt dealers.
Georgia is now seriously weighing in House Bill 907 which opponents have dubbed the, “Taxi Monopoly Protection Act.”
It would effectively outlaw ride sharing services like Uber and Lyft. While also making cab companies victims of the usurious fees that they are required to pay to remain in business.
My solution to all this would be politically tone deaf and probably DOA in GA. My special interest is simply a personal one. I want to see better ideas work for the general public.
So here’s my deep dive into the rabbit hole that is government balancing one man’s freedom with another man’s fears.
When I peruse the websites of some of my local yards, it seems like some of these cars have very little damage but some insurance adjuster has written them off based on whatever metric the company uses.
I’m an experienced shadetree mechanic and it seems like getting a 3-4 year old car for 30% of its original MSRP would be a screaming deal, and since warranty coverage is no longer an issue, it comes down to diminished value on the salvage title. I tend to keep my cars for 8-10 years so who cares.
Here’s where my doubts creep in.
If it was such a great idea, I would have surely read more about it. In the case of this one nearby yard, they have a huge collision repair facility. So why aren’t they repairing and flipping these cars? Googling doesn’t provide a whole lot on the pros and cons, just on the procedural aspects.
Any experience or stories ?
The best part about working at TTAC has very little to do with the constant press car access, the barely-disguised graft known as “new car launches” or having various varieties of invective spewed at you by tens of readers each day. No, the real fringe benefit is that you are paid to spend a fair amount of your waking hours reading and researching about cars, and that includes browsing the online classifieds for strange and obscure cars.
There are some things that I am too damn old and open-minded to understand.
Like hating a car brand. Especially in those common cases where folks haven’t been exposed to any level of vehicle derived hardships.
Toyotas are boring. BMW’s are Yuppie-mobiles. Mercedes-Benzes are for snobs. On an on, through the lexicon of cliche and generalizations comes the silliest of stereotypes. As much as I hate to see it, hear it, and read it, I’m resigned to the fact that there is always going to be some version of this nuttiness in our world.
But what if there was an easier means to defeat it? In fact, as many of you know, there already is. A force of human good that can outdo any scam artist or snake oil salesman.
The enthusiast forum.
“You can have any car you want. So long as it’s a Toyota or Honda.”
My parents had offered to split the costs of a new car with me back in 1994. That matching policy eventually included an awful lot of disclaimers and exclusions.
“No V8! No V6! No turbo! No stick! No convertible! No small car! No! Nein! Nyet!”
I eventually settled on a red Toyota Camry Coupe that served me well for 12 years and nearly 240k miles. It’s still on the road, which is funny because my brother, who had an equal bent on the Toyonda reliability supremacy, did something unusual recently.
He bought an Audi. Then he did something even stranger than that… he bought another.
I just got a job that involves a fair amount of driving and I am looking to spend about 11-13k on a car that is fun to drive but at the same time practical and reliable.