Getting Back to Normal? Far From It - U.S. Rife With Gloomy Consumers, Young Car Buyers Lowering Their Expectations

Consumer spending and confidence are not hitting record highs. Go figure. As the pandemic rages and a vast swath of formerly gainfully employed Americans find their financial future much hazier then before, new car sales are suffering. It doesn’t bode well for sales volume during the remainder of the year.

Of course, that pain is not spread evenly among all automakers, but let’s set the OEMs’ concerns aside for a moment. What are actual buyers and doing — and thinking?

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QOTD: Ever Gifted a Car to Your Replacement?

Kids, as we all know, exist for but one purpose: to replace us. You’re out there on the deck, grilling steaks, and over there sits Junior. Waiting.

It’s ominous.

But kids need to get around, especially to places of employment so that they can pull their own weight. So sometimes a purchase is in order, or at least the gifting of a well-used vehicle you’d planned to sell or trade in. Ever done it?

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Buying a Car For Your Ungrateful Teen? Here's a List

The thought of a parent spending any significant amount of money on a vehicle for their teen offspring leaves a bad taste in this writer’s mouth, but some families march to the beat of a different, more affluent drum. Yours truly believes a free hand-me-down wreck should be the absolute limit of parental generosity, and that’s only on the condition that they pay for all upkeep.

But loans from the Bank of Mom and Dad are definitely a thing, which gives them considerable say over what vehicle actually enters their kid’s life. With this in mind, the Insurance Institute for Highway Safety and Consumer Reports joined forces to craft a list of decently reliable, safe rides for parents on a budget.

Would your spawn be happy with any of these top choices?

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Where Your Author Sells a Subaru During a Pandemic (Part II)

Today brings Part II of my 2012 Subaru Outback’s sales and ownership story, as the green all-terrain wagon recently pulled from the driveway for good. If for some reason you didn’t read Part I, find it here.

Now we press on with the vulgar topic of money.

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Where Your Author Sells a Subaru During a Pandemic (Part I)

I last gave an update on the vehicles which occupy my drive back in February. At the time, the Volkswagen’s roof rattle issues had (finally) been corrected and I was all ready for a quick sale of my Subaru Outback. But said quick sale was interrupted by a few different issues, both local and global.

Uncertain Times for car sales, eh?

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Gaining Traction: Americans Shun Two-wheel Drive In Record Numbers

Once upon a time, it was expected to find the driven wheels of a car aft of the rear seat. In this writer’s recollection, the coming of winter would see the addition of a few bags of concrete mix or sidewalk salt added to the trunk for extra traction. Most pickups, usually of the wholesome regular cab variety, boasted the same setup.

Eventually, front-wheel drive replaced RWD as the go-to way to put power down, while in the background four-wheel drive gathered steam.

Would it surprise you to learn that the majority of 2020 model-year vehicles sold in the U.S. thus far eschewed front- or rear-drive?

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Forget Sex and Adventure - Fear Could Be the Big New Sales Motivator

It’s something we’ve touched upon in the recent past: the fact that, in these pandemic times, a private vehicle is the safest way to get around (from a contagion standpoint). It seems we’re not the only one to rethink the attributes of a personal car. Japanese driving schools are suddenly doing a booming business. Cars.com reports a sudden surge in non-car-owning visitors.

According to data accumulated from numerous countries, automakers could find a slew of newfound buyers once the strictest lockdown measures end.

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When Transit Riders See Buses and Trains As Plague Vessels, Automakers Hungrily Lick Their Lips

It stands to reason. Despite the ecological advantage offered by buses and trains, private vehicle ownership starts looking mighty attractive in the midst of a viral pandemic. Fear and self-preservation often trumps virtue.

So it’s little wonder that a significant percentage of people browsing Cars.com in the first half of the month were people who’s never done so before, and who’d never owned a vehicle before. With transit ridership at all-time lows and ride-hailing companies hurting, the private car is king.

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Volkswagen Wants to Make Coronavirus Car Buying Less Terrifying

Volkswagen has decided to waive up to six months of payments for customers who lost their jobs due to the economic complications of the coronavirus pandemic. Of course, there’s a catch. Customers have to qualify for VW’s expansion of its “Community-Driven Promise” and must have recently purchased a new vehicle, though avenues exist to help existing customers who aren’t brazen enough to buy a new car after a viral outbreak.

The manufacturer previously said it would defer payments up to 90 days for existing Volkswagen Credit (VCI) customers affected by the economic crisis. While most automakers are trying to sweeten the pot while demand is down, deals and relief packages have rolled out pretty gradually. By contrast, VW seems to be doing quite a bit all at once — here’s how one goes about getting into those programs.

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Where Your Author Requires a Volkswagen Quality Control Remedy

In the most recent installment of Your Author’s CPO Volkswagen Follies, I shared the slow process which was the purchase of my 2019 Golf Sportwagen. At the end of that piece, I mentioned it was already at the dealer for a rattle after two weeks of ownership.

It’s back in my possession now, and it’s fixed. Any bets on how long it took, and how many trips were made to the dealer’s service center?

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Where Your Author Encounters a Sleazy 1980s Car Dealership in 2020

We’re not talking about my Golf Sportwagen purchase today; they were slow to negotiate, but not sleazy. The topic at hand is what happened this past weekend when I helped my grandmother purchase a used car.

It turns out that at some dealers, even though the calendar says 2020, sales practices are more in line with 1980.

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Where Your Author Spends Dollars on a Mexican Wagon

All of you have shared in my car shopping experience, which began at the end of 2019. Starting with a solicitation for recommendations back in October, the process of finding the right replacement for a 2012 Outback extended longer than planned and was punctuated with a particularly poor experience at a Volkswagen dealer.

But it was all worth it, because now I’ve got a new (used) wagon.

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QOTD: Tempted by a Tweener?

Cars are out, crossovers are in. This is as true as saying the sun rises in the east or that the slow air leak in your back tire will eventually get worse. It’s a given, and, with the current onslaught of crossovers now trickling into previously unexplored white space, your choice has never been greater.

2019 may be remembered as the year automakers broke out of traditional segments and began inserting boxy products into that narrow window between existing models. Chevrolet, Buick, and Mazda all decided it was a good idea to pursue buyers in tweener segments. The question today is: have any of these supposedly right-sized products moved you to consider a brand you’d normally have ignored?

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Where Your Author Selects an Outback Replacement, but Asks: New or Used?

Recently I reached out to you, dear readers, for some suggestions on replacing a 2012 Subaru Outback. The wagon has occupied my driveway for the past two years, but, for reasons outlined previously, it’s time for it to go. My initial idea for a replacement was a Kia Niro, but that didn’t seem like it was going to pan out. So I turned to the real experts around here.

Comments poured in, and four suggestions were clear. Let’s narrow things down a bit.

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Who's Buying What? Certain Automakers Making Inroads in Minority Communities

Regardless of what your college instructors claim, individuality remains a virtue. And, while (legally and harmlessly) going your own way is still a good thing, great masses of individuals often gravitate towards the same thing. It’s an age-old phenomenon, one easily seen in the buying preferences of minority communities.

If you’re someone who values the time-honored affordability and usability of the common sedan, thank the African-American community. They’re still buying tons of them. If you value innovation and industry disruption, tip your hat at the Asian community. They show an increased affinity for trying new things.

While registration data shows America’s visible minorities haven’t diverged too far from last year’s buying preferences, a few surprises can be found in data drawn from the first half of the year.

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  • Master Baiter EV mandates running into the realities of charging infrastructure, limited range, cost and consumer preferences. Who could possibly have predicted that?
  • Jkross22 Our experience is that the idea of leasing/owning an EV is better than the experience of getting a closer look at them and coming away underwhelmed.
  • Ajla I never thought I'd advocate for an alphanumeric but "Junior" is a terrible name.
  • Arthur Dailey So pay moving costs, pay penalties or continue to pay for space in the RenCen, and purchase all new furniture and equipment. Rather than just consolidating in place and subleasing. Another brilliant business decision.
  • Jkross22 Why not just consolidate space and rent out to vendors at a reduced rate? Wouldn't this help with coordination and partnerships as well as letting go of unused space, turning it into a revenue generation opportunity as well as a PR win where GM could offer younger companies great space to develop ideas? Oh right, that might make more financial sense. Can't take the OLD GM out of GM.