Tuesday, September 16, 2008
Will the big three automakers still be the big three after this bear market?
I think and analysts agree that Chrysler, Ford and GM are all in serious trouble. Just like some of the biggest banks and insurance companies fell and some came close (hint to the wise - others may still and probably will fall) so will at least one of the big three automakers. They are all in worse shape than the banks and have been losing money for years prior to this latest economic downturn.
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Consumers are putting off any unnecessary purchases and are finding it very hard to get approved for credit except for those with exceptional AAA credit. The dark clouds, vultures and blow flies are circling Detroit and the big three. It is most likely inevitable that one will fall, but hard to tell which one will fall first. Will it be Chrysler? Without Iacocca they just haven't been the same. It's like Limp Biscuit without the biscuit, just limp.
Chrysler had some great times with the minivan and such, but it hasn't got much left. I think they will be first. GM has some serious problems and so does Ford with their finacial numbers and there are no profits at all. I wonder what kind of pay the executives are taking while their companies are outright falling hard? Well, only time will tell and soon.
Saturday, August 30, 2008
Salvage and rebuilt cars
I found the body shop most interesting as it was full of badly wrecked and recently new (2006 and newer luxury cars (BMW, Volvo, Porsche, Maserati and Mercedes Benz). While I waited for my car to get serviced and then inspected (what was funny here is that the inspection place was right next to the Eiuropean service center where my car was being worked on, but the owner said I would have to personally take my car over there when it was done because he and the inspection station owner did not get along). Anyways, As I walked around the body shop manager came out and we talked a little - apparently he was taking a break and had nothing better to do - neither did I as I was waiting for probably an hour or two for my car to be done.
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So we walked around his shop and I asked him about some of the vehicles in there. One was a Volvo that had obviously been hit really hard in the front. The frame was bashed in and so were the doors and even the left rear quarter and rear bumper and frame. Apparently this car got squished really bad. I asked him why this car was being fixed up as it was probably written off by the insurance company as a total wreck. He said these are his most profitable vehicles. He has an agreement with a local franchised new and used car dealer that buys these cars from customers and from salvage auctions for dirt cheap and then they haul them with a flat bed wrecker to him for repair.
The body shop man said within a few weeks they look as good as new and the used/new car dealer just sells them back to customers for big profits. According to the bodyshop guy, he also makes out very well due to this and so he recently increased his hourly labor charge 10 dollars because he could. I asked him is these cars were properly titled in the state for salvage and rebuilt. He said he had no idea what the car dealer did with them or if the eventual buyers even knew these cars were previously involved in a serious accident and deemed a total wreck by the insurance companies. He said most likely they didn't know or didn't care. Just goes to show that you need to do a used car VIN (vehicle identification number check) like Car Fax or Experian Autocheck prior to buying any used vehicle.
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Hurricane Gustav and what it means for Car Fax, flooded cars and con artist used car dealers
Not only could Gustav become a category 4 prior to entering the Gulf of Mexico, but it could even strengthen and enlargen more through the gulf. Then it is projected to barrel down near New Orleans and Louisiana. This is an area that still hasn't fully recovered from the last one - Katrina. The city of New Orleans and the surrounding area are mostly very low lying lands or even under sea level. Last time a major hurricane hit this area, the resulting floods ruined hundreds of thousands of cars and many of those have ended up back on the streets with little to show their previous flood history.
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Flood cars are very dangerous because the water damage will cause corrosion of parts that are internal and are not meant to be exposed to the elements. These parts can easily include hoses, electrical lines, etc... The problem with flood cars is that things will break down and go wrong and usually when you least expect them too. What happens if you are driving down the road and all of a sudden your brakelights stop working due to an electrical short caused by frayed or corroded wires? What if your headlights stop working at night due to a similar electrical glitch?
That could easily result in a terrible accident.
These things and more occur quite often with previously flooded cars so they must be avoided. By purchasing a CarFax or Experian auto check one can better find out the vehicles history and avoid flood damaged vehicles. Now with Hurricane Gustav barreling down on the same area there will inevitably be another resulting sharp increase in flood damaged vehicles being resold and buyers being left out as to the vehicles true history. A CarFax is essential to any buyer of a used car or truck.
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Tuesday, August 26, 2008
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Sunday, August 24, 2008
Amazing stuff you can find for sale in Craigslist car and truck section
Does this car look hot or stolen to you? At least it's on jacks and not on milk crates or rocks. I would include the rest of the craigslist listing, but I cannot seem to find it. Maybe it has already been flagged off or something.
Monday, August 4, 2008
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Sunday, August 3, 2008
It never fails to amaze me some of the items being sold on Ebay - Corvette Limo!
From the front you can only catch a glimpse of the stretch job.
Here you can see the whole jist of this thing. It looks like something straight out of CMT's hit show Country Fried Videos! It looks a little on the ragged side - maybe they just had a lot of business and the car has been driven into the ground. Well, if you are interested and want a Corvette limo it is for sale on Ebay. Here is the link to the Ebay item:
cgi.ebay.com/ebaymotors/Cars-Trucks___1982-Style-Chevrolet-Corvette-Stretched-Limo-4-Door_W0QQitemZ190240266221QQddnZCarsQ20Q26Q20TrucksQQddiZ2282QQcmdZViewItem?hash=item190240266221&_trkparms=39%3A1%7C65%3A1&_trksid=p4506.c0.m245.l1318
Saturday, August 2, 2008
Yesterday was the one year anniversary of the I 35 W bridge collapse in Minnepaolis MN
I just couldn't imagine the horror of anyone that was in the midst of this when it happened. Could you imagine your car or truck all of a sudden dropping 20 or so feet, crashing into other vehicles and being thrown around like ping pong balls. Some were lucky and their vehicles stayed on the bridge and kept them safe. Others were trapped and crushed in vehicles without a chance. Some were swept into the river to drown. That was awful and I just can't imagine what the people involved went through and probably still go through today. Incidents like this can cause psychological impairments and shocks that may never fully go away for some of these people. Some of the survivors may never want to cross a bridge again in their car or at all - and I don't blame them.
Many area churches had special services yesterday to remeber those whose lives were lost and to remember the sorrow and the tragedy. Afterwords there were remembrances and memorials at nearby Gold Medal Park and at the new bridge. There the names of all the dead were read:
Patrick Holmes, Artemio Trinidad-Mena, Paul Eickstadt, Sherry Engebretsen, Julia Blackhawk, Peter Hausmann, Sadiya Sahal, Hanna Sahal, Richard Chit, Vera Peck, Scott Sathers and Greg Jolstad.
This was followed by a moment of silence. Let's not forget those whom died or were injured at the I 35W bridge collapse as this could have easily happened to anyone who passed over that bridge that day. This was a tragedy, and hopefully we can learn from this and better construct our bridges and roadways and make sure we also take better care of them so this doesn't happen again to anyone else. Whatever your religion may be, please say a prayer for those that died and were injured in the I-35W bridge collapse and for their family members so that they may gain comfort and strength and heal from this tragic experience. As you will notice, there are no links, ads, etc... listed in this post and there won't be as we do not believe it is right to profit off someone else's tragedy.
I don't know if there is a donation fund or website setup to help those involved in this tragedy. If someone knows of this please post the link or url to it in the comments below and I will gladly add that link after checking it out to make sure it is legitimate (I just got a call from scammers today claiming to be my local fire department and seeking donations - called the fire department and they stated they were not calling people and soliciting donations - unbelievable how low sammers will go), so I just want to make sure it is legitimate and then I will post it for everyone to see.
Thursday, July 31, 2008
Easy way to save 1 to 4 mpg in your car or truck!
Now, this is where you start to realize the savings - if the average vehicle takes 15 gallons to fill it up then at $.16 per gallon savings you would save (.16 X 15) = $2.40. That is using the lowest numbers of only 1 mpg savings. If you use the slightly higher numbers of $.40 per gallon savings (which is very likely as that is actually just a little over the median figures) you would have (.40 X 15) = $6 per fill up in savings. That's a lot. And it quickly adds up to savings of hundreds of dollars fast. So, now that you can see how this idea works, what is it? Is it some scammy device that applies magnetic power or creates a supposed vortex effect in the air intake? No, these items were all proven as scams by the FTC and EPA.
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No, I am not trying to sell you a gas saving device. It's actually really simple - the next time you get your oil changed go with pure synthetic oil (not a synthetic mix as synthetic mixes only contain 10 to 25% synthetic oil and so your results will be much lower - it is a much better deal to use the full synthetics only). Yes, it will probably cost twice the price of a regular oil change, but you will definitely see big results in your fuel economy which will far outweigh the added costs of the synthetic oil. I never really thought much about using anything but the cheapest oil available and discount oil changes, but all that changed when I found out that pure synthetic oil had this big a change in fuel economy across the board on all vehicle types even to include work trucks and service vehicles.
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This is not to mention that using full synthetic oil will greatly reduce wear on your key engine components and make your car run better and longer for less money. You can't beat that, now can you? For the complete research on synthetic oil and resultant fuel savings:
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Monday, July 28, 2008
Slight relief at the pump as national average gas prices drop below $4 a gallon
Well, the reserves of refined gasoline are lower than they should be and even though demand has lowered considerably, politics and growing tensions along with economic problems and such in third world countries has kept gas prices high. This along with Iran's nuclear ambitions (it's quite obvious that Iran is up to no good as usual and wants to have nuclear weapons) and the fact that some of the world's largest reserves are starting to run out - why else would the middle east be investing so much money as it has in areas other than oil (banks like Citicorp, real estate, etc...) in such turbulent times with no clear rally on the horizon? Because they know something that you don't - the world has less oil than it thinks and it is slowly running out.
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All these items mean that the current drop in the price of oil was and will be very short lived. I know, you can see Jim Cramer scurying around, ranting and raving like a lunatic that oil is going to go to 100, but you have to understand, Cramer is like a weatherman - he is only right 50% of the time. Oil and gas will only go up because they have to. China, INdia and other large countries with billions of citizens will be using more oil every year and supplies will go down. It's simple supply and demand.
Now, the quick drop in oil prices over the past 2 weeks or so dropped too much and so will bounce back and probably to the $130's range for now. Yes, it may rally and then drop and then rally and so on. And maybe it will drop and touch 100 so Jim Cramer can say, "I told you so" only to immediately bounce to $148 or even a new high at $150 per barrel. So this quaint little drop in current gas prices means that soon gas and oil prices will go back up. Airlines will return to figuring out odd fees and pricing structures and more to try and help make ends meet (I think that they should cut the executives pay for losing money - whom ever heard of a company that was losing money left and right paying umpteen millions of dollars in compensation to executives that basically suck - if they were any good and the airline industry were so bad, they would use their resources and start investing OUTSIDE of the airline industry - look at Warren Buffet and Berkshire Hathaway - it no longer is in the business it originally was and look at how it flourished).
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So, for the near term look for gas prices to creep back up to $4 per gallon or so and for oil per barrel to return to the $130's to $140's. I am sorry, but until the democrats in congress get together and release the laws against off shore drilling and drilling in national parks, the price of oil and gas just won't get much better (it would also help if more effort was made to use natural gas (CNG) and other alternatives to foreign oil). And this is supposed to be a very active hurricane season - all it takes is one major hurricane half the size of Katrina to bring about $5 per gallon gas or even worse (depending on where it goes). Throw in Iran and the fact that Israel wants to bomb their nuclear refining plants before President Bush is out of the office so they have his backing and you could get another steep jump in the price of gas. To say the least energy and especially oil is a very volatile market in a crazy market and down economy. I wish I had good news on this, but I just tell it like it is.
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Sunday, July 27, 2008
Pep Boys and Caroffer.com want to pay cash for your car - is it a good deal?
Well, I was passing through the Sunday newspaper and came upon the weekly PepBoys insert. It was full of the usual - some deals on oil, car wash soap, air filters and brake pads - and then I noticed a little 2 inch square box that read' "Sell your car now for cash! Receive a cash offer online at caroffer's website and schedule your vehicle drop off at PepBoys.
Being that I have spent the last 15+ years of my life in the automotive business and have current wholesalers and retailers licenses in North Carolina, I thought it would be interesting to see how realistic their numbers would be. So I went online and entered in my car's information. The next day I got an email with their offer in it. I was appalled - it was less than 1/2 the wholesale (not retail) price of the car. If I wanted to I could easily run my car through a WHOLESALE, dealer only auction and get twice what they were offering me.
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This is a rip off and is bad for consumers as even used car managers at used car dealerships aren't that bad. These guys at caroffer are trying using PepBoys to try and get customers cars at half of their wholesale value. At these prices, you are far better off selling your car quickly for its wholesale value or waiting a little and getting some more. There is no reason to sell a car for 1/2 of its wholesale value, ever. In my opinion caroffer is a scam and is trying to scam or take advantage of people that are usually in financial trouble (who else would accept their offers at these prices).
To top it off, they have the balls to state that these numbers are contingent upon PepBoys checking the car in and if its condition is worse than near creme puff status that they will deduct further an mail you a check for the difference. This is just like those gold commercials we see on tv where they tell you to mail in your gold in these non insured brown envelopes, "oh we are honest and will give you more for your money then anyone else" - right, and they will sell you the Brooklyn Bridge too, if you let them. I wasn't really out to sell my car, I just wanted to see what kind of a deal they were offering and see if it was fair like CarMax is. It was not even close.
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In my experience I have actually told many people to take their cars to CarMax because they actually got more for their trades than most car dealers were willing to give them. I found this to be true every time (you have to be careful of what is the real trade in figure and what the car dealer is floating over from the new car's profit into your trade). CarMax really does give the true, wholesale value of your car and doesn't try to play games with you. Caroffer, wants to give you half of what you would get at CarMax. That is just ridiculous for anyone to even consider. Just rule out Caroffer and if you must sell your car fast, go to CarMax - you'll get a lot more for your car, truck or SUV. I think PepBoys should rethink their alliance with a shady business like Caroffer especially in todays internet and blogging saavy world.
Saturday, July 26, 2008
Using Craigslist to effectively sell your car or truck
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Friday, July 25, 2008
Ethanol and is it really the best alternative to foreign oil
As corn goes up, so do other commodities. This drives the costs of living and virtually everything we do or need higher. There are better alternatives than diverting much of the corn production to ethanol. As T. Boone Pickens, one of the wealthiest and smartest investors, has said, "lets use our largest natural resource - natural gas." This is already offered by several manufacturers for governmental and work related vehicles. Even the Honda GX has it - except its referred to as CNG or Compressed Natural Gas). The reason for compression is that Natural Gas is just that a gas and takes up to 10 times or more space than gasoline. This would not be very effective in cars and trucks for consumers if you had to drive around with a 200 gallon tank attached to your car.
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So, CNG was found to be quite effective and, although it still takes about 2 times the space of gasoline, it is still quite doable and convenient. With a special compressor machine one could even tap into their home gas line and refill their car at tremendous savings. Now if enough vehicles were switched to CNG the extra demand would cause a price increase in natural gas which would be detrimental to homeowners with natural gas heating and other uses. To offset this we should employ wind power, nuclear power and solar power. All three of these are being used sporadically throughout the U.S. and the potential for 20% to even 80% of our power to come from these three sources is there - this would result in much lower driving costs, home heating and energy costs and, importantly, a huge reduction in green house gases.
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What does OEM really mean and is it really better?
Well, what their not telling you in these advertisements is that in todays cars and trucks virtually all parts are built by companies other than the manufacturer. Many are made in Korea, Guam, Malaysia and China or Japan. They are made by other stand alone companies. These same manufacturers make products for several new car manufacturers and also sell their own brand items. Also, there are numerous manufacturers like Brembo brakes which manufacture brake rotors and callipers that far exceed OEM parts. So, this could actually be seen as false advertising.
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What made me write this today was that I saw an add in Motor magazine in which Nissan, true to form, showed a picture of a Nissan brake and rotor and a very poorly designed and built brake and rotor. Yes there are perts out there worse than OEM. But, notice that they said OEM was better than any aftermarket part and this is completely untrue. Just watch some TV shows like Horsepower and similar and they will show you how they are constantly upgrading and replacing OEM equipment and auto parts to make a car faster, stronger and better.
So, in the future, remember the fact that OEM parts aren't really OEM in the first place. There is always better parts and equipment out there and you can always get a better deal by using Google and searching for that part rather than paying a huge markup at your local new car dealer.