What is quality? Consumers believe they find it in a car that never breaks. Engineers look all the way to the parts level and see how long a given component actually lasts. Advertisers bullshit their way through it, and dealers don’t care so long as the car gets out of the lot before the wheels fall off. As a car guy, I look at how long someone owns a car and WHY they get rid of it. Case in point. I now have access to a database that will eventually cover over 200,000 trade-ins over the course of the year. As someone who has a keen interest in metrics, I’ve found that the current vehicle’s mileage and condition at trade-in time can tell me an awful lot about quality. The findings?

(Read More…)

Two hundred people, one car, twenty seconds. As an auctioneer, my job is to use my powers of persuasion to create the urgency to buy. Quick glances, fidgeting, eye contact, folding of the arms. Your body language and uncontrolled behaviors often tell me more than you can ever imagine even before the bidding starts. Don’t worry though. I’m really no hero and hopefully no villain. I’m simply keeping the score in a game where subtlety and nuance will eventually dictate my every move.

(Read More…)

One of the hardest questions I have to answer: “When is it cheapest to buy at the auctions?” I often find good deals even in the most competitive times of the year. But if we’re really talking about ‘averages’, as in lowest residual values for used cars, I’d say that the period between late September and mid-November is the cheapest time at the auctions. No spending holidays for consumers. No tax refunds for the public to use as down payments. Even the weather’s a pain since fewer customers visit the lots when the cool season starts. Plus, most used car dealers buy with floorplans (a finance company’s money) which often have nasty clauses that exact fees within 30 to 90 days. So what should you do if the retail deal isn’t for you? To paraphrase baseball Hall of Famer Wee Willie Keeler, in order to find a good deal in this business you have to, “Hit em’ where they ain’t.” 

(Read More…)

The first rule is that everybody at the auction is your friend. This doesn’t mean you back slap or kiss ass (though many do this quite well). But I like to say that the three currencies in the auto auction business are conversation, collusion and company. Simply put, you converse and collude with those you hang out with in the hope that when it’s your time of need, they leave you the hell alone.

(Read More…)

‘There is nothing quite like it!’ Every enthusiast I know has that attitude towards their car. But rarely is it actually true. Platforms are shared. Engines and transmissions are modified and tossed into whatever else can accommodate them from a cost perspective. Compromises are made. Only sometimes they aren’t. Sometimes you can buy something so unique, so timeless, that you can appreciate it’s qualities even twenty or thirty years later. The Lexus SC400 is one of those rare, outstanding machines. Let’s start with the door hinge.

When I was a kid, I really thought debtors could end up in prison. My Dad grew up in Old Europe (pre-WWII) and with memories of German hyperinflation, depression and Nazism came a very firm belief in paying cash . . . no matter what. Conservative isn’t the half of it. He simply can’t stand the very idea of investing in any asset that can only depreciate over time. For the last ten years I embraced the same attitude of “neither a borrower or a lender be.” My customer has always been the ‘cash’ customer. That is until the debtor’s economy hit my fleet of automotive mules with a proverbial 2 × 4.

(Read More…)

It pays to have friends in high places. Just as politicians have favored constituents, the automotive auctioneer almost always has a good memory for those who help them during the sale. More than anything else, the auctioneer wants to generate a market and get his own share of greenbacks. Some are easily corruptible. Others less so. But supporting him at times when the bidders that are ‘working the sale’ (a.k.a. colluding) can be worth far more to the auctioneer than the occasional greenback. Doing it the right way, at the right moment, can create a very nice win/win situation that goes straight to the bottom line.

(Read More…)

When it comes to cars, nothing is more expensive than an education. A bad owner. A neglected model with expensive problems. Or even a stupid owner with nothing but dreams in their head can easily turn a pearl into Chinese recycled swine. Case in point. I once had a well intentioned mom buy a 1998 Audi A4 from me. The good news? It had over $8000 worth of records over a period of 120,000 miles. The bad news? Re-read the last sentence and add arrogant 16-year-old kid and clueless Mom into the equation. I explained to them the high costs and maintenance involved, referred them to a very good repair shop, and even showed them the owner’s manual stating the next service due. As you already figured out, it didn’t matter.

(Read More…)

Tax refund. Got one yet? Well even if you don’t, millions of people will, and this is great news for car dealers. The fortunate folks who can afford to pay off their Christmas largess with a few paltry Benjamins left over will often go car shopping. $700 down, $500 down. Heck anything more than a pulse will get you into a car these days. The effect of all this newfound money being dispersed into our economy: a lot of interesting and stupid behavior at the auctions. For starters, everything gets a lot more expensive.

(Read More…)

There are three types of beater: cheap, cheaper and push start. A cautious consumer can’t let brand snobbery blind him to the truth about a car. Case in point. A low mileage leathered-up Olds Silhouette minivan. In Gold. Sure it’s the epitome of GM mediocrity, equipped with more parts bin pieces than a Junkyard Wars jalopy. But, in this case, the owner stabled the Silhouette in the great indoors. A ream of paperwork highlighted the undeserving loving care the machine received. So I bought the old Olds for $2200. I’ll be financing it for a little over four grand. Hey, it’s a living.

(Read More…)

I’m a third generation mule trader. Grandpa literally bought mules and cows from the rural outskirts of Bavaria and sold them at the nearby cattle auctions. Dad’s been a food importer since 1949 for a company called Roland where he’s sold to Chinatown wholesalers and store owners for nearly 59 years. As for yours truly? I have auctioned off and horse traded the modern day mule at thousands of dealer sales. I love cars. I love the auction business. Most importantly I love learning. Educating people about cars and auctions, creating the urgency to buy, and learning about managing cars AND people is what I do outside my family life. It’s engaging. It’s a pain in the ass. And it would be completely unnecessary if people looked at a car the same way I do.

(Read More…)

20 years. When most folks ask me how long the average car should last, that’s what I tell them. It’s actually not true though. The real answer these days is a lifetime. In fact, I’ve seen cars at the auctions that were literally passed on from one generation to the next. They hit all sides of the American, Japanese, and European palette. Older Volvo 240’s and Toyota Camry’s are truly numerous. But Subaru SVX’s, Suzuki Samurai’s and even old-school Buick Roadmasters have been there in the automotive flesh as well. In fact, I’ve even seen some of the most unreliable vehicles in recent history (Excels, Chevettes, Kadetts) crawl through the 20+ year old finish line in good running order. What makes the real difference? Read on.

(Read More…)

Car haters love it. Car lovers hate it. The Geo Metro has come to represent the uncomplicated wet dreams of piss poor eco-weenies, and a bare bones deathtrap on wheels for the SUV faithful. It’s surprising that this car has elicited such strong reactions over the years given that it never rang up the sales charts in the first place. However, thanks to cheap gas and the return of the “tax gas out of the ass” brigade, I decided to drive one for a full week. And not just any one. A rare, non-optioned, rust free version that is as common in rural Georgia as an unsubsidized peanut farmer. To be perfectly honest folks, the Geo Metro wasn’t that good and it wasn’t that bad. It was… well…

(Read More…)

Back in 2006, I sold a frugal friend a Volvo. He paid $2500 for the conservatively driven 1995 Volvo 940. It had all the records. Top quality tires. Volvo OEM components. A true cream puff for the true enthusiast. As fellow classic Volvo aficionados, we actually kept up with each other over the years. Him for advice and updates. Me because I enjoy the company. Unfortunately, two years and 45k miles later, his wife used a telephone pole to permanently customize the front end. The insurance company cut him a check for the original purchase price. With that money, he could have easily bought a car from a smorgasbord of good used cars in today’s market. But he didn’t… here’s why.

(Read More…)

We used to call it 60-80. You could buy a two-year-old used car with 80 percent of it’s life left for 60 percent of the new car price. Then, as Detroit & Co. started to overproduce ad nauseam, the ratio went down to 50/80. Then 40/80. These days you can pretty much buy a decent two-year-old car (think discontinued Ford, Mercury & Buick models) for about 35 percent of it’s new car price without dickering too hard. So, is that the sweet spot in today’s market? Nope. At least not for the non-enthusiast. The biggest bang for your buck lingers a little further down the curve. Specifically the five to six-year-old commuter vehicle with about 75k miles that has become as popular as an old can of buckwheat. Think Ford Taurus, Buick Regal/Century/LeSabre, Mercury Sable and virtually anything with the name Oldsmobile on it. Sure these are the equivalent of leisure suits for the self-effacing car snob. But I’d be damned if they aren’t the best deals for those who, in Rhett Butler-speak, “Frankly, don’t give a damn.”

(Read More…)