Crushing Blows: EV1 is Behind Us So Who is Crushing Cars Now?

This is one of those eerie times when I feel the silence before that moment when lack of knowledge becomes full knowledge and those who find out the truth cannot go back (and I won't be able to take back what I am getting ready to say).

Its kinda like the answer to: "Do storks really bring babies?" only I am answering the neighbor's kid.

Cars get crushed every day but not just in the junk yards where wrecked and unrepairable cars go to die.

Which cars are getting crushed?
Some cars are squeaky clean, have leather seats, full navigation systems, V6's or V8 engines with far less than 30,000 miles on them. They still have that new car smell and in some cases, will still have bits of protective film covering the interior parts. For the most part they could never be considered damaged except for the odd scratch or ding that comes from brushing against the car or pulling a suitcase out of the trunk. Most of them are so new that they are not even on the dealers' lots yet so they are considered pre-production vehicles but are made pretty much the way subsequent ones will be made. Later ones are just made faster.

Who is crushing this lost tribe of cars?
Their makers. The automotive manufacturers, foreign and domestic.

What was their crime?
They were review cars for journalists, film cars for advertising placement in big budget movies and television shows and sometimes were just lenders to high profile (and sometimes B-list) celebrities. Sometimes they only sat on an auto show floor for the public to crawl in and out of. They were part of the marketing engine.

Why are they being crushed?
To tell you the truth, not by the choice of the manufacturers. No creator likes to see their offspring, their pride and joy, the result of years of hard work reduced to an over-sized smashed can. Some of these cars are such special editions that they have features and packages that will never be seen in combination again and could be valued at an extremely high price (if they even could be sold). But they have to crush them. The government requires that they destroy them. These cars are usually off the same production line that the cars come from for safety tests and so are licensed to the manufacturer but the title is not transferable. You cannot legally register one of these cars even if the manufacturer sold it in a charity auction. A rogue auto employee couldn't even hide one in their garage forever; the government checks up on these things!

The cars are not even allowed to be dismantled so that parts like seats and stereos can be reused because the government knows that eventually someone would build their own car out of refuse. Mind you, perfectly good, often high end refuse.

I am not pointing fingers at any manufacturer in particular because they are all held to the same standards. Maybe this will make some of them uncomfortable that I am even telling you this and I want to reinforce to them that, on this point, I am on your side. What would be better for brand building than to see rare editions turn up in auctions like vintage rare edition cars can and sell for ridiculously cool prices?

And to those of us who have driven these cars: I feel guilty and sad when I see my time end with one of these cars destined to be destroyed. Sometimes I wonder if I have played a part in a wasteful destruction. What I do know is that the manufacturers don't like it either. It is an unspoken death because their hands are tied.

"When did this start?" "Is their a solution?" "Can I write to my congressman?"

All that I know is that at a time when the car makers are being criticized for wasteful behavior it is makes sense to sometimes look further than the actions and try to get to the reason. There are always blatant examples within every company (automotive and non-automotive related) where waste can be highlighted in the media. It is sometimes the unspoken waste resulting from an industry held to standardized practices for safety and the environment directly by the government and the manufacturer swallowing, taking their lump and trying to move ahead that should be reported.

Most of this government regulation stems from emissions and safety concerns but to such a degree that one European luxury manufacturer will not import its very saleable models because they are handmade and the government wants a dozen or so to crash. These regulations also are the reason that a lot of American manufacturers do not sell their best models in the US.

RIP all of the 2009 cars conceived by artists, executed by engineers and have now gone to meet their maker.

XOO,Michelle

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Mustang Fever: The Car That Won't Go Away (Hopefully)

For full disclosure, I have to confess to having a lot of history with the Ford Mustang in my driving life.

My parents had a 1967 yellow Mustang that I drove quite a lot! It carried Heidi, the 1984 Goddard High School Homecoming Queen, on the back in the parade down Main Street in my hometown of Roswell, NM (she may have looked like a California Princess but it was my car). I was also allowed to take it out of town with 2 friends my senior year for an uneventful weekend at Mustang Island in Texas (a gift from my mother when she felt sorry for me because I missed my Senior Spring Break when I had mono).

I remember when my parents found that car. We were driving from Roswell to Horseshoe Bay, Texas and while driving through Brady, Texas (the disputed "Heart of Texas if you ask my friend KIRK) and there it sat: all restored in a showroom window of a vintage brick car lot. This was the early '80's. I think my parents were making more money than they ever had in their whole life, deservably so. We'd had some pretty cool cars previously, mind you! But never an old one and never a convertible. There are funny things that I miss about the Mustang: the little pedal I could push with my left foot to make the windshield wipers pass when I drove through sprinklers, the air vent down in the floorboard where fresh air could come in while the top was up and listening to only AM radio music stations.

Oh! the 1980's! My friend Ruby flipped her Fastback one day with other friends in the car while skipping school to smoke. My dad's brother Raymond, one of my heroes, bought his own red convertible vintage Mustang which he proudly kept garaged until he died earlier this year. As my cousin Shawn said, "unless something changes some minds, dad's will be joining my two '65 hardtops after we get things sorted out."

The 1980's also saw an era of new Mustangs that honestly, were so ugly to me and I blocked them so much that I didn't even acknowledge their presence. That trend continued until 1994 but by that point, I guess, I became a non-believer and it wasn't even a viable car to consider wasting time thinking about.

In 2005 that all changed. The Mustang made a comeback and Ford had obviously had a re-think: pretty is as pretty does. When someone I know was looking for a new car I persuaded him to buy an '05 coupe (I still love his car & he doesn't love it as much because he can't carry his band's equipment in it so well).

Last night, despite the current pre-shock economic trembles affecting the manufacturer, Ford revealed the latest Mustang. The 2010 version still has that look and performance that made me fall in love again but this time the object of my affection has been in the gym, eating right and is ready for a new era of fans.

Is it the wrong time to introduce this car? I don't think so because we can't force muscle car lovers into hybrids or PZEVs or even 4-cylinders. It just ain't American to shame buyers for so many reasons. It isn't even like Ford should be chastised for the improved model: it isn't significantly different enough from the previous iteration that they wasted precious engineering hours to detract from their ability to develop extremely well executed hybrids, PZEVs and low MPG models. (Is it un-American to suggest that GM wasted hours/days/years on the new Camaro from SCRATCH when they should have pursued not making a muscle car to compete with the Mustang?)

Yes, I am sentimentally attached to the Mustang. I cried at the big Reveal last night for both its history and its future.

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FIND THE RIGHT CAR THAT WILL MAKE YOU GO “OH YEAH!” QUIZ

Pop quiz hotshot, how do you find that right car that’s going to make you get down on your knees and go, “Oh yeah!!” Take this little quiz in order to get on the road to driving!

QUESTION #1: What kind of car should you look into?

A) One that you need.
B) One that you want.
C) One that talks to you like in the Stephan King movie Christine and eliminates your enemies.
D) Both B&C

QUESTION #2: HOW MUCH YOU SPEND ON A CAR?
A) What you can afford determined by payments at 20% of your monthly take home pay.
B) On par with what you spend each month on crack.
C) On par what you spend on crack and hookers
D) All of the above

QUESTIONS #3: WHICH ISN’T ADVANTAGES OF LEASE YOUR NEXT CAR?
A) You can drive a better car for less money
B) No trade-in hassles
C) You can drive a new car few years.
D) You are not hassled with owning commodity

QUESTION #4: WHAT ARE THE ADVANTAGES OF BUYING OVER LEASING
A) It makes financial sense when interest rates are low over leasing.
B) No miles penality
C) You don’t have to worry about anyone spray-painting “Honky Lips” on the side of your vehicle.
D) Both A & B
QUESTION #5: WHAT ARE OTHER COSTS OF OWNERSHIP TO CONSIDER?

A) The deprecation rate of specific models.
B) The amount of investment needed for the upkeep of fuzzy dice to hang from the review mirror.
C) Insurance rates for the model.
D) Costs of hydrolic jacks for your tires
E) Both A & C

QUESTIONS #6:IS IT IMPORTANT TO SCHEDULE AN APPOINTMENT VIA PHONE BEFORE YOU GO FOR A TEST DRIVE?

A) Yes. This will give you an idea of the business atmosphere.
B) Hell no. Show up in last year’s Halloween costume and scream, “It’s party time.”
C) All of the above.
D) None of the above.

QUESTION #7: Should you let the salesman’s pitch distract you while you test drive.
A) Absolutely. Show the man some respect. He’s got some stories to tell.
B) No, so turn up the radio as loud as you can on the Spanish language station.
C) No. Listen for the sound of the car and try to drive on a terrain similar to your normal driving route.
D) ALL OF THE ABOVE

QUESTIONS: #8: WHERE ARE GOOD PLACES TO RESEARCH YOUR FUTURE VEHICLE?
A) The Internet
B) Newspapers
C) Dealerships
D) A meeting of the Ron Howard fan club.
E) All but D.

ANSWERS
1) A
2) A
3) D
4) D
5) E
6) A
7) C
8) E

CONGRATULATIONS! AND GOOD LUCK IN FINDING THE RIGHT CAR FOR YOU!

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Collectible Car Auctions: Are They What They Are Cracked Uo To Be?

Ah, car auctions. The thrill of the hunt, the crash of the gavel, the hub-bub of money and more money and even more money, the idea in the back of your mind that you might just come across a dream car for next to nothing and make out like a bandit.

It’s those trappings and that thought process that keeps the car auction business going.

It is, unfortunately, not the often harsh realities of finding and buying a car at auction.

Sure, there’s a lot of minor auctions around town. I’ve had more than one relative pick up some sort of vehicle at one of these and walk away reasonably satisfied, but these were mainly utilitarian vehicles. Pick ups, stake-bed trucks, farm gear, that sort of thing.

In this sort of situation, and actually for auctions in general, it really is “let the buyer beware”. You have to be pretty savvy, know what you’re looking for, know how much you’ve got to spend, keep your wits about you and know the potential mechanical problems of cars in general and the car you’re looking at specifically.

But those other auctions, the one’s you see on TV, the ones where they’re selling dream cars at un-dreamed of prices … well, those are something else entirely.

Hunter S. Thompson once said, “The collector car business is a cruel and shallow money trench, a long plastic hallway where thieves and pimps run free, and good men die like dogs. There’s also a negative side.”

OK, he actually said that about the music business, but darned if it doesn’t apply to the car auction world too.

Really, if you’re just as much a student of humans and human nature as you are a car person, you should check out one of these high status car auctions the next time one is on your TV.

90% of the cars you’ll see are the ones that were in your High School parking lot (OK, they were in my High School parking lot, and I’m starting to give away my age), and restored to within an inch of their sheet-metal lives. Hemi ‘Cudas, Malibu SSs, muscle cars that were cool then and still cool now are going for half the cost of your house. Over-priced doesn’t begin to describe it.

And the people that are buying them?

They all seem to by middle aged drips on their 3rd heart bypass and their 2nd trophy wife. They all made obscene amounts of money as land developers or sewage contractors or drug salesmen in the upper mid-West, lower East-side sales region for Glixnarr Pharmaceuticals.

They’re they guys that got more money then sense and have suddenly developed a need to go out and start buying cars by the dozens.

Why? They couldn’t give you a clear answer if their toupee depended on it; they just know they want it. Sure-sure, some might tell you “I’ve wanted one since High School” or some such, but it all boils down to the same reason they’re spending equally profane amounts of do-re-me on “that Monet fella; I got a couple a’his fer the wife!”: status.

They want to be able to tell their friends that they just got a Co-Po Camaro, and there’s really not much more to it than that.

But here’s the real bottom line: It’s bad for normal car guys like you and me.

It’s not just bad because normal, middle-class schmos like me and you are getting priced out of the market, it’s bad because what is getting tagged as “cool” or “worthwhile” in the car world is being determined by guys who aren’t into cars, they’re just into the money that the cars represent.

It’s the same reason that letting guys just smart enough to make licentious amounts of money loose on the art market degrades what art is: pretty soon it’s not about van Gogh and what he was trying to get across, it’s how much you paid for it and how much you screwed over the next highest bidder.

Right now there are cars sitting in garages whose history is unknown and unknowable
to the dry cleaning magnates and furniture store owners. You could walk in and say, “Hey, just like Ed McCullough’s.” and they would stare at you blankly.

And that is a shame. For all of us.

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Credit Crunch: Refinancing A Car Loan

You always see these TV commercials where they clatter on about refinancing your home mortgage in order to save big bucks. But hey, what about refinancing auto loans? The reasons to refinance a car loan, are the same as those for a home- lower interest rates, and reduced payments. When interest rates drops, and the conditions are right, refinancing your auto loan can save a good chunk of cash. And in this crazy economy, we all can use a little more dough.
According to Ask Dr. Don, a good place to start shopping for refinancing rates in on Bankrate; a site that will give you an idea of which financial lender are competitive in your market. Bankrate even has an auto loan calculator to compare a new refinancing payment to your current payment.

When you’re going driving down the refinancing parkway, first, use common sense and evaluate your situation. If you bought your car on a promotional loan with 0 or 1.9 percent, obviously you’d have to be dumber than a greasy engine to want to refinance for 7 percent or higher. But if the reverse is true, let the refinancing adventure begin!

Another thing to remember, refinancing might not lower your payment but you could find yourself in a situation of saving $500-$1000 on the loans interest rates. If your credit is piss- poor, refinancing can save you even more money if you are approved, since those who have bad credit might be paying car loan interest rates as high 20 percent or more. If that’s the case, and your credit improves (perhaps by a good job or bills paid on time), then it’s a fine-and-dandy time to look into refinancing options.

A few other tips to keep in mind when refinancing your car:

• Check local credit unions and banks: Finance arms at corporations like General Motors Acceptance Corp. and Ford Motor Credit do not offer refinancing. Bah!
• Know your terms: Make sure your existing car loan doesn’t have a large prepayment penalty. A great deal depends on the length of the loan term. Another thing to consider, there are also a couple of low fees that vary by lender and state, including the lien holder transfer (under $15), and state re-registration fees (under $80).
• Search Online: It’s just a mouse click away to compare financial institutions. LendingTree.com and E-Loan.com. are good places to start, while Capital One Auto Finance gives props to people with bad credit who are showing signs of improvement.
• Extending the term length: This is a good option for those not in a credit crunch, but would rather smaller monthly bills by extending the refinancing terms beyond the old loan’s date. If interest rates are low, this might be a good option.
  

So what are you waiting for? Look into it today and save some dough. Treat yourself to a nice hot fudge sundae when you do, and most importantly, good luck my friend on your quest for car refinancing!

Harmon Leon is the author of the new book, The American Dream: Walking in the Shoes of Carnies, Arms Dealers, Immigrant Dreamers, Pot Farmers, and Christian Believers!

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Selling your used car

Do you highlight its features or its reliability?
Many of us, at one time or another, need to sell a car.

Some time ago, I had a Mazda Protege5. Yes, some of you may snicker. But it was actually fun to drive. It had a five-speed manual, got great gas mileage, a sunroof and you could cart a lawn mower around in the back with the seats folded down. Very utilitarian.

When it came time for me to sell the Mazda, all of the features I just listed were important to me but not necessarily to a potential buyer. Nonetheless, I listed all to show the car off, demonstrating it's usefulness as well as it's fun-factor.

I sold the car in less than a week. At the time I sold it, gas prices were on the way up. I had several calls about the car, with most people interested in it for it's good gas mileage, it's wagon-esque carrying ability and a perceived Mazda reliability.

Reliability is a factor
Most used car buyers will list reliability as one of their most important requirements. Fancy features you use occasionally don't make up for a car sitting in your mechanics garage.

Here's a list from Consumer Reports of the cars they have found to be the most reliable. A great reference for buyers, but not so great to sellers whose car may not be on the list.

Now, it's easy to argue that used car buyers would list reliability as a big issue for them when they shop. There's many reasons, but for most they can't buy a new car or they're trying to save a few bucks. Either way, they want their hard-earned money to go as far as possible. Which means, even though they're buying used, they want the car to last, with as few repairs as possible.

Your advantage as a seller is offering a car that buyers are looking for and doing it at a better price. A buyer can't beat your price at a dealer. In addition, by using an online service such as Mota, you have the option of taking advantage of their vehicle inspection service and show potential buyers that your car will provide trouble-free driving for many miles. Just an added bonus to a potential buyer and builds your credibility as a seller.

Be honest and up front with a likely buyer and offer proof of your cars value and reliability. With traits like these as a seller, you should have no problem finding a buyer.

Andy Mrozinski

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The Transactio: Part 2

In part one, we learned that the buyer bears the burden of verifying the identity and condition of the car for sale. Checking paperwork, matching numbers, and a call to the Department of Motor Vehicles will confirm a vehicle’s pedigree and legitimacy. But the buyer remains only one half on this transaction; the seller has the power to set the terms of payment to complete the deal.

A smart and seasoned seller always demands cash. Cash needs no explanations. Cash asks no questions. Cash has no substitute. Cash ends all doubts. A bag of money will satisfy any seller and validate any buyer. Cash brings a smile.

Any negotiation about the method of payment should warn a seller. A personal check, even from a known associate, has no value. Checks can be stopped. Checks can be forged. Checks can be stolen. A kind smile and a pledge of validity empower no check. No seller should ever take a personal check.

A certified check should be avoided too. They can be forged quite easily and quickly given the power of modern technology and printers. A certified check is valid if the seller accompanies the buyer to the bank and witnesses the buyer draft the document. That way the seller can ask the bankers if the seller has the funds to cover the amount. However, the seller cannot delay in transferring the funds because even certified or cashier’s checks have ways of being voided. Again, the seller only has the money when actual money hands.

If the transaction demands a larger sum of money, more than fits in a grocery bag, then creative and secure measures must be taken. A quick story will illustrate the point.

The seller of a particular and valuable muscle car demanded a large sum of cash in small bills. The buyer agreed to the terms. He had to visit four banks to secure the amount, and he needed a means of transporting the bills without alerting the local bandits. He placed the money in a large cooler. When he made delivery, it looked as if he brought the drinks to a back yard barbeque. The buyer drove away in the muscle car. The seller buried the cash in the back yard. Both seller and buyer were delighted.  Every transaction should end that way.

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The Transactio: Part 1

You found the car. You agreed on the price. Now comes the transaction, the actual transfer of ownership. Buyers drive off in their purchase. Sellers count their cash. Transactions in the automotive world happen daily, and most go smoothly. If you purchase or trade-in a vehicle at a dealership, the friendly sales staff will handle the transaction; they are paid to check and recheck all the purchase information, construct any financing, and contact the Department of Motor Vehicles. If you forego the licensed dealers and chose to go to the marketplace yourself, a host of details and procedures must be followed. A buyer must be vigilant every step of the way. A seller must hope for a legitimate buyer.
To change ownership in the State of California, every car needs two documents, a signed title, or pink slip, and a smog certificate. It sounds simple enough, but placing those documents with a willing buyer and seller can be the source of any host of nightmares.
As with any transaction of commerce, common sense and a cool head may be the best tools, and the burden of a private party purchase rests squarely on the buyer. The seller has the edge. He knows the car, and he no longer wants it. Part of the buyer’s job is to learn the motivation for the sale. A seller may be trying to unload an old car badly worn or damaged. A seller may also be liquidating the estate of someone recently passed who barely used a vehicle. Potential for greatness or folly resides in every transaction, and that remains for the buyer to determine, and that determination begins with checking the numbers.
The Vehicle Identification Number (VIN) on the car should match with the VIN on the title. It should match with the vehicle on the smog certificate. The license plate numbers should also match. Again, this is simple stuff, but our nation is steeped in millions of cars; errors can and will happen. Not all sellers are honest. A seller should be able to present a set of complete documents to any buyer, and any buyer should be able to verify those documents with a call to the Department of Motor Vehicles.
The wait for an operator at the DMV can be the hardest part of the transaction, but once the DMV has a VIN, they will verify the make, model, year, ownership and smog status of the car. If all the information agrees and you like the deal, then the transaction will happen. If the numbers fail to match, then walk away from the deal. With the volume of cars for sale, you will always find one with a clean pedigree.

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Is there a cost to going green?

A rebel with a cause
While toiling online one day, I stumbled upon an interesting eco-story. The venerable General Motors EV1 had popped up in the news but with a much different angle to its ordinary “greenliness”.

The story I came across was about an EV1 that had sold for $465,000. GM had stipulated in their EV1 leases that all cars be returned to them, with all but a few destroyed. This particular car has apparently escaped the crusher.

This lone rebel got me thinking. One thing that has always baffled me about the move to green technology, particularly in cars, is the economic and environmental impact of the science itself. To get more specifice, what about all those batteries?

Batteries are everywhere but to whose benefit?
There’s a palatable push by the pro-green movement to pressure the world’s automakers to build hybrid and all-electric cars, in spite of the fact that the technology is still in its infancy. Battery technology has evolved but not to the point of futuristic unlimited charges.

But because of that, a battery is thought of as disposable, tossed away when its no longer useful.

Whether it be hybrid or electric, automakers are dropping hundreds of pounds of batteries into cars, all in the name of being green and attracting the newly formed green buyer.

What of the batteries? Is there a guarantee that the vehicle’s power source won’t land up in the city dump?

The economic impact brings its own price. Hybrid and electric cars carry a premium. And, particularly with hybrids, the dollars you save by not buying gas does not offset the systems initial cost or the cost to replace it. Pocketbooks are having a say more than ever regarding vehicle purchases and scrimp is its middle name.

Batteries as a commodity
Can batteries be considered a commodity, not unlike oil? A battery isn’t made up of too many parts but the most important in today’s eco-friendly car battery is lithium.

Toyota’s Prius uses nickel-metal hydride batteries. Recent improvements with lithium-ion cells means some of the new hybrid and plug-in electric cars will use this technology.

Lithium carbonate, which is extracted from dried salt ponds, is processed to make lithium. South America and China possess the most abundant sources of lithium. Is the supply limited? Hard to tell, but as demand goes up, so will the price. Sound familiar?

There’s been much debate surrounding petroleum’s global impact. Is there any impact to the environment from all these batteries? Are all nickel-metal hydride and lithium batteries recycled?

An integral part of being green is reducing your use of petroleum and the products created from it. I suspect it’s going to take many small solutions to replace the only one we’ve ever had.

Leave a comment below and let me know what you think.

Andy Mrozinskiy

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