In a recent news article, RF stated: “…here’s another story where the web pulls the rug from under auto industry types seeking to hide the truth. We’ve been saying it forever (in Internet terms): the collector car market has collapsed. Well, duh. But the mainstream media and specialist press has both been happy to perpetuate the myth perpetuated by the auction houses that their business has been defying gravity. See? Cars are selling for phenomenal prices! Meanwhile, Hagerty’s CARS THAT MATTER is telling readers to pay attention to the men behind the curtain.” In truth, the men behind the curtains are not the market. They are middlemen. They extract a percentage from every participant they can find to witness their activities; Buyer, Seller, hell, even the gawkers have to pay to watch the show. The auction houses are, in ecological terms, parasites on the very market they claim to serve. Like any parasite their success has a tendency to cause harm to their host. These guys are tarted up used cars salesmen. That, and the recent transformation of the car auction into a three ring circus, is what is killing the auction companies, and it has absolutely nothing to do with the collector cars being sold.
What has been your experience selling a car privately? My recently widowed sister in California has a 2003 Infiniti Q45 with 10,000 miles. Yes, ten thousand. But I live 2000 miles away. An ad in the paper or Craigslist would certainly bring riff-raff to the door. A simple test drive could turn into a missing car. The dealer offered about half of market value, a private sale could make both parties happy.
The number two photo enforcement company in the United States has expanded, as its arch-rival faces an internal power struggle and financial difficulties. On wednesday. American Traffic Solutions (ATS) announced that it had acquired the bankrupt photo ticketing company Nestor Traffic Systems for $7.1 million. ATS will take over Nestor’s existing contracts boosting the number of cities and counties in which ATS controls traffic enforcement from 170 to 200. Nestor recently went into receivership after the company’s debt became unsustainable. Despite heavy annual losses, top management at the Rhode Island company continued to enjoy lavish salaries and bonus packages. Nestor’s future came into sharp doubt earlier this year after subcontractors began complaining that the company was not paying for services rendered. ATS will now take over Nestor free of these debts.
First of all, I don’t have the embed code for this ad. For some reason, GM hasn’t sent it to TTAC and it’s not on YouTube. To see the ad, click over to Autoblog. Second, New GM Chairman of the Board Ed Whitacre should never have done this ad. GM’s single biggest problem, the one that trumps everything: their insular culture. By fronting this spot, Whitacre has become part of the problem. He’s crossed the line from gamekeeper to poacher. He’s lost his independent observer/taxpayers’ guardian status; he can no longer distance himself from the Lutzes and yutzes who animate the GM zombie. Whitacre’s now “one of the boys.” Third, the actual text of this ad [parsed after the jump] misses the boat.
With GM’s decision today to offer a 60-day, money-back guarantee on new cars, we figured it would be fitting to ask what kind of reasons a person returns a car within 60 days? There are all kinds of reasons why a person would go through buyers remorse and we see it all the time here in our car lease trading marketplace. Keep in mind that LeaseTrader.com helps a person escape a car lease they no longer want, so we’d like to share the 20 most common reasons why a person would fall out of love with a vehicle – even as quickly as within 60 days.
Forbes‘ former GM Kool-Aid drinker, Jerry Flint, has finally cottoned on to the fact that GM is going to hell (and not back). The Ascot-Wearing One sees today’s announcement that the nationalized American automaker is selling its Opel brand to a Canadian-fronted Russian mob as a harbinger of doom. (Substitute the words “yet another” for “a” and you’re there!) “Opel, and the cars made in Britain under the Vauxhall name, account for more than 1 million sales a year, but the operations are more important that the sales. The German unit is the heart of GM’s car engineering, and particularly the creation of front-drive cars and compact-size cars. U.S. models are derived from these cars, such as today’s Chevy Malibu.” Oh, no! No more world-beating Astras? Hang on, isn’t Daewoo engineering GM’s small cars?
But only because dealers will be forced to give up a half a percent of their profit margin, reportsAutomotive News [sub]. Good thing Mark LaNeve says volume will be higher. Otherwise that might suck for the dealers. As Bob Lutz puts it, “We’re putting our money down that if people buy one of our vehicles and don’t absolutely love it, we’ll take it back. Three or four years ago, this would have been a huge risk. We are now so confident of our vehicles, we can afford to take this risk.” Actually, Bob, it sounds like you’re putting the dealers’ money down. But, hey, at least that way it’s not taxpayer money! Who’s feeling positive?
Yes, well, Car And Driver‘s Dave Vanderwerp kind of stole our headline for his takedown of EPA testing practices. Still, he earns it by stripping away any illusions you may have harbored about the rigor of the EPA testing process. Did you know that the EPA only tests 15 percent of all new vehicle models, taking automakers at their word for the other 85 percent? Surely you were aware that the EPA once had to convert a Bugatti Veyron to two-wheel drive for testing because it didn’t have four-wheel dynos at the time? No? Hell, the EPA test can’t even tell whether the BMW M5’s +100hp “M” button is on or off. No wonder the Volt is going to get 2,347 mpg! Read the whole thing over at MSN Autos.
Participating in GM’s global technology development and purchasing organizations secures important economies of scale for Opel/Vauxhall and other GM brands. For example, vehicles that represent new propulsion technologies, such as the Ampera extended-range electric vehicle, can only be brought to market in a joint effort.
“GM operates many joint ventures around the world and has proven in the past that this business model delivers the right balance of independence, innovation and synergies,” said John Smith, GM Group Vice President Business Development. “All parties will work hard to close the deal as soon as possible,” he added.
GM straps on the rose-colored blinders and dangles the Volt in its presser on today’s agreement to sell Opel to Magna and Sberbank. Ironic counterpoint after the jump.
To put it simply, Honda’s Insight sold 4,226 units last month while the Prius sold 18,886. Through August, Toyota sold 93,810 Priora while the Insight motivated only 14,045 buyers. Honda has tacitly admitted that the Insight is not up to snuff. But upgrades could take years. Honda could just as easily have the long-rumored Fit Hybrid ready in the same time. Would it be a better Prius fighter? Or will Honda Hybrids be stuck wandering the desert until, say, the CR-Z arrives?
I recently clocked a billboard offering passersby a Mercedes E-Class for $599 a month. I called the Mercedes dealer in question. Sorry, can’t find the paper, I have to call you back. I’ll wait. Oh, here it is! Here what is? A rear-wheel-drive E-Class luxury car. Which one? A rear-wheel drive E-Class luxury car. Yes, which model? E350. Options? A choice of metallic paint (as long as it’s white or black) and heated front seats. How much down? $5,509. How many months? It’s a 39-month lease, 10k miles per year. $599 a month all in? Plus tax. How much tax? $42 a month. Do you have one in stock? I’m sure we do but we can get one. Uh-huh. It’s not a the worst deal I’ve ever seen but . . . I wonder how much it would cost me to lease that Maybach that’s been in their showroom since 1909. Meanwhile, where the hell is Darwin? By now, anyone stupid enough to fall for a low low monthly payment come-on should be in debtor’s prison. Which would force the dealers perpetuating the sales technique into receivership, where the bank could re-fi their biz. I mean, $1 mil would only be $1666 a month over 50 years. Plus interest, of course. And handling fees.
GM’s new ad campaign, featuring Chairman Ed Whitacre, centers around the catchphrase “may the best car win.” According to the New York Times, the lure to new buyers will be a 60-day refund on any new GM product. In short, the perfect way to remind shoppers that buyer’s remorse comes standard on most GM vehicles. But that’s not even the craziest part of GM’s latest bid for consideration. To find out more, let’s just surf over to maythebestcarwin.com . . .
I don’t mean to single out Audi here, but they sent us some stats about their stand at the Frankfurt Auto Show. [Press release after the jump.] Fifteen climate control units. One thousand four hundred spotlights. Six thousand square meters of space. I mean, even if you put aside the environmental impact of powering this much stuff, not to mention transporting, feeding and housing 150 people, how much does it all cost? Is it really worth it? Can’t Audi just use the internet and give us a discount on a nice, pre-owned S4?
Hello, Don Sajeev! Over on Autoblog, I read Jonny Lieberman’s post on the Aston Martin 177 and it’s inboard shocks. I am not sure I will ever have to deal with this, but what is the deal with reducing unsprung weight as much as possible? I don’t understand: Is it just about greater control of the vehicle+motion through shocks & springs, or is it something greater? It would be nice to find out what El Mehtador + the Piston Slap community thinks about this.
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