BUY IT ON e-bay?

It was just an experiment. I had no intention of buying. But so many of my friends and relatives had preached the gospel according to e-bay, I thought that I would give it a try. Think of the possibilities: buy a car at a bargain basement price, no hassling with a salesman, just pay your money and leave with the car. Common sense says, “If it sounds too good to be true, it probably is.” But common sense rarely plays a role in the passion of an auction.

I had been passing the lot of a local dealer for months, where prominently displayed out front were two beautiful, late model Mustang GTs. Each had low mileage, both were in great shape. As summer lead to fall, then lead to early winter, they still sat there unclaimed. By total coincidence, I came across them both listed for sale on e-bay Motors. For a starting bid of $500, they could be mine (or at least the process could begin). Surely the dealer would be anxious to get them off of the lot before snow. Everything was in my court. Winter was coming, the wounds of high gas prices were still in everyone’s mind, and a new, redesigned Mustang was about to launch. No one would want either one of these cars, and the dealer would want to sell.

I registered on e-bay and began bidding. The adrenalin rush was exciting. Others joined the process. My self-imposed ceiling was $10,000. The bidding continued, but no one met the dealer imposed Reserve Price (the minimum they would accept). As my emotional involvement accelerated, so did that of the other participants. My ceiling came and went, and the bidding continued. I bid more than I wanted to pay. Finally, like a fatigued poker player, I was worn down, and I was out. The other bidders continued, but the cars were not sold, at least on e-bay.

There were no deals to be had, and my money was still safely in my pocket. Even so, I felt empty, with a feeling of failure. I wanted one of the cars, but I didn’t want to pay enough for them. It was an interesting experiment which taught me the value of working with a dealer. For such a substantial purchase as a car, I realized that the dealer’s sales associate does perform a valuable function for the buyer. With an auction, while there are all of the details from the car’s listing information, photos and CarFax reports, there is no sensory gratification; there is no touching, feeling, smelling, and test driving. While I enjoyed the freedom of no pressure from a salesman, there was also a feeling of loneliness and vulnerability. There was no ally representing me in the deal.

I was surprised to learn that I prefer working with a dealer; to work with the resources and talents the dealer can offer. I need the comfort and security of knowing the product by it being visually in front of me, along with meeting and greeting the people that will back the car after the sale. Before bidding in the auction, I had done the same research that I would have done if I was buying the car the traditional dealer way. But there was no feeling of comfort, and no deal to be made. Buy it on e-bay if you want, but it’s not for me.

THE 2010 MUSTANG IS HERE

Enough with all of the bad news, it’s time to celebrate with some good news. At this writing, the Dow is up more than 900 points in three days, and Ford has launched the next generation of its signature car, the Mustang. Their Web site (http://www.fordvehicles.com/the2010mustang/index.asp) sets the tone with aggressive styling, polished interior details, and it screams of fun.

Mustang has a long history of growing (and surviving) through a variety of incarnations, some good, and some rather bad. Its rejuvenation came with its current design which hit the streets as a 2005. That Mustang’s retro features reflected 1968 when Mustang was at its best, but updated it with current technology. Now the next generation is ready for its launch in the spring of 2009.

Take a look and see what you think. While the 2005 demanded attention, this one continues the legacy in a more polished manner. I have not seen one in person, but the pictures show that the Ford designers were interested in refinement. Exterior edges are now rounded. Curves are everywhere; from the wheel wells, to the hood and grill, to the new tapered tail lights whose turn signals illuminate progressively (remember the Thunderbird of the mid-1960s?). The Mustang still shows aggressive styling, but it feels softer. Ford did not ruin the fine design achievement of the 2005, it just looks different now.

From a first impression, the car appears to be basically the same. Look deeper, and you do find changes. Ford claims that every exterior panel is new, aside from the roof. While the 2010 is now a few pounds heavier on both the GT and V6 models, performance does not suffer as the GT adds 15 hp to 315 hp, and torque increases from 320 lb/ft. to 325 lb/ft. The GT’s power comes from its tried and true 24 valve, SOHC 4.6 liter V8. The V6 continues with its reliable 4 liter at 210 hp.

Beyond its visual stance, this 2010 Mustang improves itself in variety of areas. Ford says that it has reduced squeaks and rattles by 33%, decreased wind noise by 12%, and has decreased the wind drag by 4% for the V6, 7% for the GT. While there are new wheel sizes and tire choices available, the major accomplishment seems to come with the new interior.

The 2005 Mustang looked great from the outside, but the inside was a different story. There were too many glaring surfaces and too much cheap plastic. Ford heard the feedback and has revamped the interior significantly. The interior is now much less harsh, with quality materials and no annoying reflections.

Ford’s redesign of the Mustang comes just in time, as it now faces competition. Amongst much fanfare, the Dodge Challenger is now on the street, and the Chevy Camaro is soon to follow. With refined edges, more horsepower (on the GT), and its much improved interior, Mustang continues to live on as the others just hit the ground. Now, with gas prices plummeting, the muscle car is back, and is hopefully here to stay.

LINKS OF INTEREST:

Stills:
http://www.autoblog.com/photos/2010-ford-mustang-live-unveiling/1168351/

Video:
http://www.fordvehicles.com/the2010mustang/index.asp
http://www.edmunds.com/insideline/do/Features/articleId=134729

TO BUY, OR NOT TO BUY

Everyone is waiting desperately for the economy to stabilize, not to mention turn around. No one is more anxious for that good news than the auto manufacturers, and their dealers. While everyone waits, it raises the question, “When is it time to buy a car?”


Buying a car is a major, life event. For a consumer to take the plunge and make such an expensive purchase, needs and/or wants must outweigh the expense. In these shaky economic times, those parameters are hard to satisfy. Eventually, a thaw will occur. The “needs” of the buyer will hit first, and allow them to buy first. These needs may include:

- When a vehicle becomes unsafe, or unreliable due to aging components, or rusting parts.
- When fixing the vehicle is taking more time and energy than the driving.
- When repairs become ridiculously expensive; repeated engine work, chronic electrical problems, transmission work.
- When there is a change of life such as kids being born (or leaving an empty nest), retirement, etc.
- When transportation needs change to provide for construction hauling, commuting, car pooling, etc.
- When the vehicle is just plain cursed. A genuine lemon.
- When it starts making noises you never heard before.
- When the price of gas exceeds $4 per gallon, or plummets below $1 per gallon (dream on).


As the economy recovers and confidence begins to return, the “needs” buyer is followed by the more emotional “wants” buyer. These “wants” may include:

- When love is lost, and the owner is no longer getting back what they are putting into the relationship with the vehicle i.e. too many breakdowns.
- When they have drifted apart, and have nothing more in common.
- When the owner is just plain bored, and is ready for a dramatic change.
- When the seductive commercials convince the buyer that they deserve to be that individual.


Everyone has their own individual needs and wants, all within different time frames. Some people buy cars every three years, some every twenty years. In my case, I have tried to limit such a major purchase until there was a genuine need. My Dodge Colt rusted to the point of no longer being safe (or passing inspection). My Mazda RX7 only had two seats, and was no longer practical with children. The Thunderbird was too hard to pull out car seats, the Taurus wagon was not big enough for hockey bags, and the list will continue.


As for wants, they entice me daily. Every time I see an exotic design drive by, I want to drop my boring discipline, and volunteer to do my part to reinvigorate the economy; to make an impulse purchase. Then I wake up and continue to be boring. People will “need” to replace unsafe or costly vehicles. The emotional passion of “wants” will eventually lead to purchases. The economic thaw will come, hopefully sooner rather than later.

MERGER: DO, OR DIE?

GM and Chrysler: as one? How could that be? What would it mean?

The initial reports first hit the internet. GM and Chrysler were in exploratory talks. It was down played; explained that companies talk with each other all of the time to explore common goals and interests. But this one has not gone away, and it is actually accelerating.

The automobile sector has always been a cyclical industry. It ebbs and flows with the economic cycles. Manufacturers make billions in the best of times, and save cash to survive the worst of times. This economic barometer has traditionally been read by how many extra shifts are needed to keep up with demand, as opposed to how many auto employees are being laid off.

Domestic auto manufacturers have been hit twice as hard this time around. The inevitable economic downturn came, but they were caught with all of their eggs is one basket. Trucks and large SUVs brought them record profits. Domestics specialized in them. Then, gas prices escalated and they were all caught without a backup plan. Not only were consumers buying fewer vehicles, but they looked to the foreign fuel efficient choices when they bought anything at all.

Daimler was not happy with their purchase of Chrysler and sold the majority of its interest to the investment group, Cerberus, back in early 2007. Perfect timing! Daimler dodged the bullet that has hit all three domestic manufacturers straight in the eye.Ford, GM and Chrysler are all in dire straights. Not only did demand for their product cease, but the credit structure that sustained their livelihood collapsed as well, all part of the housing credit debacle. Now, with survival at stake, all three need money, and they need it now.

Rumors are flying. Ford, on the heels of already selling Aston Martin, Jaguar and Land Rover, is now rumored to be in talks to sell its one third stake of Mazda, either back to Mazda or to a group of Japanese companies. Chrysler’s Jeep brand might be sold to Renault. And now, GM and Chrysler are going to merge? The others make sense, but a GM/Chrysler merger is puzzling. What form would it take? What would it look like? What models would stay, and which would die? Or, would GM just swallow Chrysler and liquidate everything in sight to benefit from its $11.7 billion of cash and sell the remaining hardware?

Many stumbling blocks and questions remain in the way of a GM/Chrysler merger. What role will the unions play in allowing a merger to succeed? Also, Cerberus must buy the remaining 19.9% stake of Chrysler that Daimler still owns, in order to be free to merge. Would the government allow them to merge and own 36% of the US auto market? What would happen to the finance branch, GMAC, a hotly contested issue between GM and Chrysler? Cerberus already owns 50%, GM the other 50%. The investors that are Cerberus wants all of GMAC, and for good reason. When the economy turns around, its massive influence in providing credit is worth millions.

GM now has many interesting choices throughout its product lines (see previous blogs), but within GM, there is already too much redundancy (see my blog, “Power of Twins”). What would be the outcome of diluting the product line further with all of the various Chrysler models? Some would stay, many would not. If the merger became a reality, my crystal ball says: Jeep will remain, GMC will go, Chrysler will become an affordable luxury wing, Dodge will remain with several performance models, Viper will be sold to a customizing manufacturer, Hummer will be bought by an Arab or Russian company, Cadillac will continue to thrive as an icon, Chevrolet and Buick will blend together to become one, eliminating many models. In addition, there will be fewer dealerships, higher prices, many more plant closings, and thousands more jobs lost. GM will again dominate the domestic auto industry, and I will still prefer Ford, or a Japanese brand.


This story seems to change by the hour. Stay tuned to what surely will be a dramatic saga. It is hardly a merger made in heaven, but it appears to be a case of do or die. If the deal does go through, what would the logo look like and how would it fit on the grill of a Solstice?

UPDATE, 11/10/08
The latest rumor is that talks between GM and Cerberus are off, and discussions are proceeding with Hyundai.

UPDATE, 11/11/08
Now GM is out and Cerberus is talking to Hyundai instead. Meanwhile, GM's stock price dropped another 20+%, and a federal bailout is imminent. Stand-by!

HAVE YOU DRIVEN A FORD LATELY?

I have always been partial to Ford products. Maybe it is because of my initial exposure to my childhood friend’s father’s beautiful black 1957 Ford Thunderbird, or my sitting behind the wheel of a new Ford Galaxy 500 at the New York World’s Fair years ago, or because I was always envious of my neighbor’s 1968 Ford Mustang Mach III. For whatever reason, Ford products have always caught my attention.

My appreciation of Fords has not just been admiration from afar, I have owned three over the years. My first was a Thunderbird of my own, followed by a Taurus wagon for the family, and now our current Windstar van (see July’s blog). All have been well designed, serving with near flawless performance. The acronym, Fix Or Repair Daily has not been the case in my experience. While for a variety of reasons my last two cars have been from Honda and Toyota, I am now once again intrigued by Ford.

Despite the doom and gloom of today’s economy, Ford appears to be working towards a position of strength. Its recent sale of Jaguar and Range Rover gave them the needed cash to keep running. Now it is up to their product line to return Ford to profitability, and that is where the fun begins.

My renewed interest in Ford began with the stunning redesign of the Mustang in 2005, rejuvenating the aging brand. Recapturing the style of its best incarnation, the 1968 Mustang, sales and awards quickly followed. It was impressive enough that I almost bought one. Now in its 5th year, my head still turns every time I see one drive by. Fans (and I) anxiously await its next generation due as a 2010.

Ford’s rebirth continued with the launch of the Ford Freestyle in 2005, then the Fusion in 2006.
The Fusion was the first to feature Ford’s now signature sparkling chrome three bar grill. With a sharp looking design, this Accord fighter attracted attention, and sales, immediately. The owners I have asked love them. Ford’s crossover entry quickly followed in 2007 with the Edge; plenty of room, excellent handling, and another design success. A friend of mine says that it’s the best vehicle he has had in years. Now for Ford, it is the much anticipated launch of their new people mover, the Ford Flex.
It is not a mini-van or a crossover, but seats 7 and drives like a car. Print photos do not do it justice. In person, the Flex is impressive. While I have not driven one yet, the reviews in the trades are glowing. NOTE: The Flex was just placed on Consumer Reports' Top 5 list of crossover SUV's.

Ford faced a public relations nightmare following the Explorer rollover/tire debacle a decade ago. While their F150 truck retained its #1 position (until recently), the consumer’s perception of Ford’s safety and reliability was severely tarnished. That perception is now changing. Many of Ford products proudly wear Five Star safety ratings in most categories. JD Power gave the Mustang their endorsement with an excellent high initial quality rating. In response to high gas prices and a pleasing redesign, the Ford Focus is now flying off of dealers’ lots, selling for less money than the Honda Civic. The quality is excellent. Still have doubts about Ford? My company’s fleet of Ford Escapes has been indestructible. One Escape was retired recently after 7 years old and 220,000 miles with no complaints throughout its proud service.

Ford now offers some genuinely interesting choices in its current line-up. With safety and reliability in its pocket, and deals available in this tough economy, this domestic brand is again worth serious consideration. I will take a Flex for my family and a deep red Mustang GT for me (a man can dream can’t he?). Have you driven a Ford lately? I hope to do so again soon.

UPDATE, 10/24/08: Consumer Reports has just released its 2008 Car Reliability Survey and it places most models of all three Ford brands (Ford, Lincoln and Mercury) ahead of all other domestic manufacturers. Based on Consumer Reports’ Readers’ Survey, almost all models received “average or better” reliability results, placing them on the same playing field as its Japanese competitors.

UPDATE, 1/7/09: Consumer Reports' chief car tester, David Champion, has published the following quote: "Ford has been doing a lot right on reliability for the past five years. It's not immediately apparent that the Ford Fusion would be more reliable than the Toyota Camry, but it is, and the Fusion is one of the more reliable family sedans on the market."

SPASTIC DRIVERS

I have already shared my thoughts about distracted drivers (see May). I am totally against it, regardless of the circumstances. No cell phones, Ipods or knitting. Just drive! Now my beef is about spastic distracted drivers.

You can spot one with as little as a glance in the rear view mirror. On the way home the other night, I observed a perfect example. The man had a stressed expression on his face as he waited at the red light. He was agitated as he talked on his cell phone, gesturing wildly. Sure enough, when the light turned green, he floored it, and zig-zagged through traffic on his way to somewhere really important. It was obvious that driving for him was secondary to everything else going on in his life. He whizzed past me on the interstate, still talking on his phone. As he drove with one hand, he quickly changed several lanes and then disappeared, speeding well above the speed limit. He was a distracted spastic driver, endangering everyone on the highway.

Last night it was a well tuned Honda Civic zipping by me. The thunder of his car’s stereo could be heard and felt even at highway speed. He was sitting low and dancing to his tunes. The music was primary, the driving secondary. He passed several cars, crossed several lanes at speeds well above the posted limit, then he quickly cut in front of a car and decelerated rapidly to exit at the next ramp. First music, then driving. Dangerous!

There is an intersection that I cross on the way home every night. During rush hour, the right hand lane is congested with drivers lined up at the traffic light waiting to access the ramp to the interstate. Impatient, spastic drivers choose the left lane to save time. There is at least one for every cycle of the traffic light. When the light turns green, they cut across traffic into the right lane at the last minute to make the ramp. Those left behind slam on their brakes, or blow their horns. Accidents frequently follow. Another spastic driver, preoccupied with everything else but driving. Dangerous, spastic drivers!

Driving a vehicle is not playing a video game. It is serious business that requires 100% of the driver’s attention. Lives are at stake, not to mention expensive repairs. Encourage your friends and relatives to put the phones down, lower the stereo, and obey the traffic laws. With a little common sense and courtesy, we can all be happier and safer drivers. Save the spastic driving for XBOX 360.

POWER OF TWINS

In this trying, uncertain economy, purchases large and small need to be carefully evaluated and scrutinized. Only the essentials become a buy. This is especially true with a big ticket item like a car or a truck. Ask any auto dealer. Now more than ever, buying a vehicle requires a well thought out process; extensive research, and wise decision making. While now is a good time to buy with some real deals available (see previous blog, LET’S MAKE A DEAL), it is also a time to be smart. No buying of a status symbol to impress the neighbors, no impulse purchases. Thrift and common sense is king. This is the time to take advantage of the dollar cost savings delivered by the POWER OF TWINS.

Twins are vehicles from separate brands that share platforms, engines and major components. Product is shared to keep design and manufacturing costs down, with the goal of increasing profits for each of the companies. Some twins are sold through a different brand within the same manufacturer (Ford & Mercury); others are available through a competitor (Pontiac Vibe & Toyota Matrix). Usually the vehicles’ interior and exterior styling designs differ, while the engine and suspension are nearly the same.

One brand of the twins may include a lot of bells and whistles at a higher price. The other may provide a more expansive option list for the buyer to choose items individually. One may have a longer running, more comprehensive warranty, and may appear to bring a higher resale value with less initial depreciation. The other twin may be able to save you a lot of money now. Generous incentives may apply to one, and not the other. A personal consideration, you may find that you like one twin’s dealer better than the other. These are all factors to consider. At stake, deciding which twin to buy could save you thousands of dollars.

Manufacturers have shared their designs and hardware for years producing twins. Mercury is Ford, but has traditionally included more standard options. A little more flash, for more money. For years, the Ford Thunderbird was essentially the Mercury Cougar. Now, the buyer can choose between the Ford Explorer ($26,495) & Mercury Mountaineer ($26,800), the Ford Escape ($19,140) & Mercury Mariner ($21,540), and the Ford Fusion ($18,135) & Mercury Milan ($19,095)*. Each of them twins. The separate product lines allow for an expanded dealer network, and more profits for the parent company. The downside is in this difficult economy, dealers are competing with each other. For you as the buyer, it gives you more choices, and bargaining power.

The many brands of General Motors have always shared amongst twins, producing essentially the same vehicles under different brands for many different prices. GMC has traditionally been the rougher version of the more domesticated Chevy truck. Buick is perceived as the luxury sibling of Chevrolet, while Pontiac is the sportier treatment. Some twin GM choices include: Chevrolet Trailblazer ($27,745) & GMC Envoy ($27,980); Chevrolet Impala ($21,975) & Pontiac Grand Prix ($22,210) & Buick LaCrosse ($24,250); Saturn Outlook ($28,625) & GMC Acadia ($30,140) & Buick Enclave ($33,220). My personal favorite is the Pontiac Solstice ($22,455) & Saturn Sky ($25,855). All are twins, all are priced quite differently.

Chrysler is considered the luxury, more expensive brand, while Dodge is the performance choice, and depending on options, generally costs less. The Chrysler Town & Country minivan ($23,415) is a plusher version of the Dodge Grand Caravan ($22,520). Compare Dodge Avenger ($19,640) & the Chrysler Sebring ($19,840), along with the Dodge Durango ($27,335) & Chrysler Aspen ($32,905). They are all Chryslers, but with interesting differences in price.

The foreign manufacturers also provide the buyer twin choices, sometimes at considerable dollar savings. Look at the difference between the Honda Pilot ($27,595) & the Acura MDX ($40,195), along with the Nissan 350Z ($28,510) & Infiniti G37 ($34,900). Is the name plate worth the extra dollars? The power of twins even crosses between domestic and foreign lines with the Pontiac Vibe ($16,855) & Toyota Matrix ($15,510); and the Ford Fusion ($18,135) & Mazda 6 ($19,140).

While it is generally true that you get what you pay for, with a little research and soul searching, you may find that you do not need all of those options, as well as paying a premium for just a name. Do you really need a Lexus to impress, or is a Toyota Camry with similar options going to satisfy you? With a little humility and common sense, you could save thousands on the purchase price, not to mention the excise tax and insurance. Those dollars saved can buy a lot of gas. Do your research, and ask yourself honestly, "What do you really need?" Then, use the POWER OF TWINS for a smart purchase.

*All prices listed are for Base 2008 models.