Hammer Time: 10 – 20 – 30

About 5% of the population buys a car out of love. The rest are just balancing the checkbook. Maybe I’m nuts for writing this since cars are seen as an embodiment of freedom in many cultures. But even with the halo of “freedom,” true hardcore auto enthusiasts are still a very small portion of the entire population. Consider how many people would own a car if they didn’t need one? Ever?

How many commuters actually go on those Sunday drives to the mountains or to the racetrack? Would the general public willingly pay $20k for a Camry, or even $25k for an MX-5 if they didn’t need wheels to get around? The answer for most folks would be a firm ‘No’ because as the great philosopher Yogi Berra often said, ‘Money is money.”

We all have a budget that tethers us to the reality of car ownership. Taxes, insurance, maintenance, depreciation and debt are the unwanted barnacles that come with a set of keys. In the past most buyers would cast a cursory glance at these numbers after figuring out the cash price or monthly payment. But now…

The numbers can’t cover up the limited pursestrings. That first number, 10, seems to be a glass ceiling. Buyers that want to buy a new cash car, but don’t have the greenbacks, often use the 10k mark as the barometer for a near-new car. Buy a one year old Camry? They want to spend up to 10k. Two year old Camry? 10k. Three year old Camry? OK, 10k. But it better have leather and a roof. Never mind that the sub-prime buyers are willing to pay well over 15 to finance one just like it.

20? The car obviously needs to last 20 years of course! No costly maintenance either. The oil should be changed on whim these days and the transmission… isn’t it supposed to be a lifetime fluid? You would be surprised how many buyers expect cars to have minimal maintenance costs even though they beat on their cars mercilessly. Nothing makes me cringe more at the auctions than a once beautiful car that cost megabucks when new all tore up and cheaped out by it’s negligent owner. A late model luxury brand maintained with the budget of a toaster. I see a lot of leased vehicles like that at the auctions.

30? Any car that is bought must get at least 30 miles per gallon. Even if it’s done once, it has to be achieved and noted for all to hear. It can be a Forester that found itself tumbling down a mountain. Or a Caravan that caught a tailwind that was more than likely the hand of God. Sajeev’s Lincoln? Well I’m sure it hit 25, or 27, or maybe even 30 when the engine was cut out on a long downward hill. Ok, I’m exaggerating a bit. Nothing Sajeev drives gets anywhere near 30 mpg. But 6 months from now if gas spikes to the $4 mark or beyond, everybody’s mother is going to want to either brag about their family barge, or bag it. If it creeps towards $5, you will likely see a sequel to Cash for Clunkers. You heard it here first.