Ok! Now this is one bangin car! Yesterday I had the opportunity to test drive a Scion tc against a Honda Civic, Kia Forte, and Mazda 3 at the Portland Meadows Raceway. I have to say that objectively, the Scion tc stood head and shoulders above the other three. The Kia's transmission was sluggish so that each time I punched the accelerator there was a split second before the gears engaged to put the car in motion. That was annoying. The Mazda was a good car. In fact, it was my second choice. It had excellent acceleration, but it didn't handle as tightly as the Scion tc. As for the Civic, it was my last choice. I didn't like the way it looked and it felt cramped inside to my 6 foot 3 220 lb body.
Now the Scion tc is a delighful car. I saw the five speed version with the beautiful cement color and 300 watt stereo system. It had 19 inch custom wheels and the newly designed front to back features a much sportier look. I know the Scion is marketed for the 25 age bracket, but with 180 HP and 2.4 DOHC engine, I can see myself crusing comfortably along in one of those hot models!!
Tuesday, August 31, 2010
Friday, August 20, 2010
When do you not have a car payment?
When you make your living selling cars, you could be a trillionaire if you had a dollar for each time a customer told you "my car's paid off and I don't want a car payment." That brings to mind the question; When is there ever a time when you don't have a car payment? If you buy a vehicle and finance it five or six years, by the time you pay it off, you usually will have mileage approaching 80k or more. This is of course the time when your maintenance costs climb considerably, even if you don't experience any mechanical issues with the vehicle. Let's break that down. If you are coming up on your 90k servicing, that would include transmission, which even if you avoid the dealer and go to Jiffy Lube will cost you about $300.00 and that doesn't include the oil change and other factors that will cost another $200.00. So, $500.00 in maintenance. Since your vehicle is older, it will use more fuel so you can factor in another $500.00 annually in additional fuel and other fluids. You will almost certainly have to exchange tires or replace a cracked windsheld, or fix the heater or air conditioning, or something...So, that's another $500.00 for the year. Even if nothing major goes wrong (if you are over 100k then the timing belt could fail and now we are in the thousands), that's at least $1,500.00 in maintenance costs. Over 12 months, that means you have a $125.00 per month payment on your vehicle whether you think of it that way or not. Now, $125.00 doesn't sound like an overwhelming payment, but if you factor in the stress of worrying about your vehicle having major mechanical issues, the question is then raised is it worth another $150.00 or $200.00 a month for that peace of mind of having a new vehicle so that those concerns are taken care of (of course, if you are financing that older vehicle this is a no brainer)?
That additional $225.00 per month breaks down to $7.40 per day. That's the cost of a large Starbucks coffee and a roll. So, what it comes down is you are going to have a payment either way. The question is do you want your older, failing vehicle and a Starbucks drink or do you want a fresh, new, exciting, reliable automobile?
That additional $225.00 per month breaks down to $7.40 per day. That's the cost of a large Starbucks coffee and a roll. So, what it comes down is you are going to have a payment either way. The question is do you want your older, failing vehicle and a Starbucks drink or do you want a fresh, new, exciting, reliable automobile?
Tuesday, August 17, 2010
Survey Information from About.Com
This comment about the Toyota Camry was posted on this site today:
"There's a reason the Camry is the best selling car in the US, and has been for years: It does just about everything well. It's roomy, quiet, comfortable, and built like the proverbial brick outhouse. With the new-for-2007 redesign, the Camry offers more choice than ever. Most buyers will opt for the well-priced and well-equipped Camry LE, but don't overlook the fuel-efficient Camry Hybrid, luxury-oriented Camry XLE and sporty Camry SE."
"There's a reason the Camry is the best selling car in the US, and has been for years: It does just about everything well. It's roomy, quiet, comfortable, and built like the proverbial brick outhouse. With the new-for-2007 redesign, the Camry offers more choice than ever. Most buyers will opt for the well-priced and well-equipped Camry LE, but don't overlook the fuel-efficient Camry Hybrid, luxury-oriented Camry XLE and sporty Camry SE."
Tuesday, August 10, 2010
What is Carfax?
Carfax is a vehicle history report that aids consumers purchasing a used vehicle. The Carfax report contains registration information, accident information, and insurance records. The primary purpose of Carfax, is to help prevent consumers from purchasing a vehicle that had unknown issues.
.History
Carfax was founded in 1984 by Ewin Barnett III. The company began offering vehicle history reports to auto dealers and auto auctions in 1986; by 1993 the company had expanded into the consumer market, offering services to assist used-cars buyers. By 1996 these reports were available for purchase online at the companies website (www.carfax.com), making it much easier for consumers to access vehicle history reports.
Services
Carfax provides vehicle history reports for consumers and dealers. With a Carfax vehicle history report, a consumer or dealer can find out where a vehicle has been registered, if it has every been in an accident, or has had any title or mileage discrepancies.
Data Collection
Carfax collects data from motor vehicle departments, insurance companies and body shops around the country. The information collected is assigned to each vehicle VIN (Vehicle Identification Number) and compiled into a report.
Competitors
Autocheck (a division of the credit bureau Experian) is currently the only major competitor to Carfax.
Criticism
Carfax reports have often been criticized by consumers for missing obvious accident damage or problems. Due to the data collection model, the Carfax system may not be notified of vehicle body work or damage if the company that does the repairs isn't licensed. These "shade-tree" body shops do not report their information to Carfax.
.
.History
Carfax was founded in 1984 by Ewin Barnett III. The company began offering vehicle history reports to auto dealers and auto auctions in 1986; by 1993 the company had expanded into the consumer market, offering services to assist used-cars buyers. By 1996 these reports were available for purchase online at the companies website (www.carfax.com), making it much easier for consumers to access vehicle history reports.
Services
Carfax provides vehicle history reports for consumers and dealers. With a Carfax vehicle history report, a consumer or dealer can find out where a vehicle has been registered, if it has every been in an accident, or has had any title or mileage discrepancies.
Data Collection
Carfax collects data from motor vehicle departments, insurance companies and body shops around the country. The information collected is assigned to each vehicle VIN (Vehicle Identification Number) and compiled into a report.
Competitors
Autocheck (a division of the credit bureau Experian) is currently the only major competitor to Carfax.
Criticism
Carfax reports have often been criticized by consumers for missing obvious accident damage or problems. Due to the data collection model, the Carfax system may not be notified of vehicle body work or damage if the company that does the repairs isn't licensed. These "shade-tree" body shops do not report their information to Carfax.
.
Saturday, August 7, 2010
What's the Price of the Car got to do with it?
People have always been very price conscious when purchasing a new or pre-owned vehicle. Let's face it, it's a lot of money we're talking about and people want to make sure they're making a great investment. That's sound logic, but are people really achieving that objective, making a sound investment, by haggling over the price they pay for their vehicle? The data says more often the answer is no.
When you make a purchase, one of your primary concerns has to be the value of what your purchasing two, three, four years, etc., down the road. For example, if you purchase gold, you know that for infinity, that gold is going to retain, and possibly increase, it's value. You know it will do that because gold is basically infallable in the sense that it will never tarnish. It will maintain it's same luster 50 years from now.
With vehicles we know the formula works differently. A vehicle doesn't retain it's worth like gold so it depreciates (loses it's value) each second it's on the road. The longer that vehicle is driving, the miles it racks up, the less value it's probably going to retain. Most consumers know this already. That's why they are so concerned about price because they believe that by paying less, they are reducing the chance of being "upside down" e.g. owing more for the vehicle than it's worth. On the surface this is a logical argument, but if you analyze it from an economics perspective, there's actually much more to this. Let me explain. In 1977, Chrysler announced a major financial crisis within the company. What resulted from that announcement? If you remember and/or study history, the government stepped in and provided bail out money to Chrysler. The other car companies also assisted by reducing the prices on their comparable vehicles. Why? Because although the car companies compete against one another, they also depend upon one another. If one car company goes down, they will need to liquidate their inventory which will reduce their prices and thus cause competing models to have to reduce their prices. Remember when American Motor Company went under? That was when many of the cash rebate programs gained their popularity, but what happened is everyone loses revenue. Another example is oil prices. Have you ever noticed that if Chevron is $3.50 a gallon, Texaco across the street isn't selling gas at $1.00 a gallon. They are at $3.50 also, or within a peny or so of the Chevron price. Why? Because the cartel, or price agreements, between the oil companies insures all of them are able to compete effectively.
Let's bring the discussion back to vehicles. If a car manufacturer offers you a $5,000.00 rebate, or cash back, many of you assume this is a great thing right? You get to buy the car cheaper? Let's go back to Chrysler and the oil companies and the examples given above. If Chevrolet gives those rebates so that their SUVs sell for $30,000.00 instead of $35,000.00 (due to the rebates given) then two, three years down the road, that vehicle that actually sold for $5,000.00 less is now worth that much less in value so that when you go to try and sell that car as a trade and get into a new one, you owe thousands more than that car is worth, not because you paid too much, but because the reduced amount you paid has driven down the value of that vehicle.
Now, at this point you may be saying "this guy is crazy. He's saying I should pay more when I buy a vehicle...I'm not going to listen to that!" Well, what I'm actually saying is no one is helping you by reducing the amount you pay up front because the more you pay for your vehicle, the more everyone else has to pay for that same vehicle which means the vehicle creates more value for itself which makes it more valuable when you go to sell it years later. It's the same principle as gold. Plus, when you have a strong vehicle like a Toyota, the value in what I'm arguing is born out with the resale value of the vehicles this company puts out. This is the reason Toyota's vehicles are slightly more expensive than some of the other makes, because these Toyota's are more valuable to you. The end result? CNN, Edmunds, Cars.com, and others consistently place Toyotas at the top of their lists for having the best resale value. Can you say that for that vehicle you got the $5,000.00 rebate on?
When you make a purchase, one of your primary concerns has to be the value of what your purchasing two, three, four years, etc., down the road. For example, if you purchase gold, you know that for infinity, that gold is going to retain, and possibly increase, it's value. You know it will do that because gold is basically infallable in the sense that it will never tarnish. It will maintain it's same luster 50 years from now.
With vehicles we know the formula works differently. A vehicle doesn't retain it's worth like gold so it depreciates (loses it's value) each second it's on the road. The longer that vehicle is driving, the miles it racks up, the less value it's probably going to retain. Most consumers know this already. That's why they are so concerned about price because they believe that by paying less, they are reducing the chance of being "upside down" e.g. owing more for the vehicle than it's worth. On the surface this is a logical argument, but if you analyze it from an economics perspective, there's actually much more to this. Let me explain. In 1977, Chrysler announced a major financial crisis within the company. What resulted from that announcement? If you remember and/or study history, the government stepped in and provided bail out money to Chrysler. The other car companies also assisted by reducing the prices on their comparable vehicles. Why? Because although the car companies compete against one another, they also depend upon one another. If one car company goes down, they will need to liquidate their inventory which will reduce their prices and thus cause competing models to have to reduce their prices. Remember when American Motor Company went under? That was when many of the cash rebate programs gained their popularity, but what happened is everyone loses revenue. Another example is oil prices. Have you ever noticed that if Chevron is $3.50 a gallon, Texaco across the street isn't selling gas at $1.00 a gallon. They are at $3.50 also, or within a peny or so of the Chevron price. Why? Because the cartel, or price agreements, between the oil companies insures all of them are able to compete effectively.
Let's bring the discussion back to vehicles. If a car manufacturer offers you a $5,000.00 rebate, or cash back, many of you assume this is a great thing right? You get to buy the car cheaper? Let's go back to Chrysler and the oil companies and the examples given above. If Chevrolet gives those rebates so that their SUVs sell for $30,000.00 instead of $35,000.00 (due to the rebates given) then two, three years down the road, that vehicle that actually sold for $5,000.00 less is now worth that much less in value so that when you go to try and sell that car as a trade and get into a new one, you owe thousands more than that car is worth, not because you paid too much, but because the reduced amount you paid has driven down the value of that vehicle.
Now, at this point you may be saying "this guy is crazy. He's saying I should pay more when I buy a vehicle...I'm not going to listen to that!" Well, what I'm actually saying is no one is helping you by reducing the amount you pay up front because the more you pay for your vehicle, the more everyone else has to pay for that same vehicle which means the vehicle creates more value for itself which makes it more valuable when you go to sell it years later. It's the same principle as gold. Plus, when you have a strong vehicle like a Toyota, the value in what I'm arguing is born out with the resale value of the vehicles this company puts out. This is the reason Toyota's vehicles are slightly more expensive than some of the other makes, because these Toyota's are more valuable to you. The end result? CNN, Edmunds, Cars.com, and others consistently place Toyotas at the top of their lists for having the best resale value. Can you say that for that vehicle you got the $5,000.00 rebate on?
Wednesday, August 4, 2010
Good customer service and dinasaurs..A thing of the past?
I'm a creature of habit. I usually go to the same restaurants and my menu selections are pretty consistent. I always tip well and I am not the type of person to give the service people a hard time. Just recently, I realized that many of these restaurants see me in there all the time and yet, the service I receive is average if not poor. No one takes the time to try and learn your order (even though you order there often and it's always the same). No one cares about knowing your name. They seldom even care enough to say hello to you anymore. Case in point is recently, my wife and I went to a local restaurant that we have often frequented. She ordered her customary $10.00 glass of wine, and then another, and then we ordered dinner. The host and the female food server were both very familiar to us. When our food came out, the entrees were cold. When we mentioned this to the food server, she frowned and told us "this has never happened before" as she continued to stare at us. We offered that there is a first time for everything and so she should test the food. She did and agreed it was cold. She took the food back. About 30 minutes later she came back and told us the food was almost done. Another 20 minutes passed before she came back with our plates. Now the food was just luckwarm. When we commented about that, her response was she would have to talk to her general manager. The gentleman came over and immediately told us he would comp our meals although we never asked him for that. He offered this as if that was our objective all along. From there, we got into a sad conversation with him about how often we ate there. He was aware of this since we saw us there often. Then, we finished and left.
Now I know that the economic times have forced many businesses to cut back on staff. Many companies are struggling to stay afloat and as a result, raises and incentives are being cut back. Employees are being asked to work harder for less compensation. All of these factors have an influence on the quality of service, no doubt, but if you want to generate business, wouldn't a logical place to start be in how you treat your existing customers?
The restaurant story took place about six months ago. We had been going to that restaurant about two or three times per month, but since that night, we haven't been back. We haven't been back because we realize all we wanted was some simple recognition and appreciation for our business. It would have been fine with me if the food server had just apologized and gotten the order right in a reasonable time frame (not an extra hour). Had she responded that way, we would have been satisfied and there would have been no need to offer us compensation as if we were the problem child needing a fix.
Now, I work in the car business. Buying a car is the second most important and expensive decision a person will make. For many people, their car purchase will be their most expensive and important decision. This reality creates significant anxiety and stress when making this transaction. I am a firm believer that my job is to make that process as easy and enjoyable as is humanly possible for the customer. I believe this because this is basically what I want when I venture out as a consumer. You should feel special and attended to. you should feel respected and you should know whatever information you receive is correct and timely. I'm for building a movement to bring back quality personal customer service. Do you agree? I would love to hear people's thoughts!
Now I know that the economic times have forced many businesses to cut back on staff. Many companies are struggling to stay afloat and as a result, raises and incentives are being cut back. Employees are being asked to work harder for less compensation. All of these factors have an influence on the quality of service, no doubt, but if you want to generate business, wouldn't a logical place to start be in how you treat your existing customers?
The restaurant story took place about six months ago. We had been going to that restaurant about two or three times per month, but since that night, we haven't been back. We haven't been back because we realize all we wanted was some simple recognition and appreciation for our business. It would have been fine with me if the food server had just apologized and gotten the order right in a reasonable time frame (not an extra hour). Had she responded that way, we would have been satisfied and there would have been no need to offer us compensation as if we were the problem child needing a fix.
Now, I work in the car business. Buying a car is the second most important and expensive decision a person will make. For many people, their car purchase will be their most expensive and important decision. This reality creates significant anxiety and stress when making this transaction. I am a firm believer that my job is to make that process as easy and enjoyable as is humanly possible for the customer. I believe this because this is basically what I want when I venture out as a consumer. You should feel special and attended to. you should feel respected and you should know whatever information you receive is correct and timely. I'm for building a movement to bring back quality personal customer service. Do you agree? I would love to hear people's thoughts!
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