I always buy new. I know, I know.

There’s a financial wizard of the Internet around every corner, ready to pounce and scream “DEPRECIATING ASSET” at me. But the reality is that I — like most shoppers — like to get a good deal when I buy anything, and that includes five-figure investments. Also, like most car buyers, I feel that “good deal” really means “the dealer didn’t make a dime on me.” Yes, I know that car dealers need to make money on used car sales to stay in business (and to continue perpetuating the myth that they don’t make any money on new car sales), but that doesn’t mean I’m their mark. On a new car, I can know with 100-percent certainty if I got a good deal.

When one of my Twitter followers asked me why the dealer’s cost isn’t the starting point for negotiation on a car, I quickly replied (as I was walking to dinner) that “used cars have recon cost.” However, upon further reflection, I realized that’s just the tip of the iceberg and if a Twitter user didn’t know why used car costs are so nebulous, most of y’all probably don’t know either. Transparency on used cars simply doesn’t exist, and it never will. Here’s why.

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The recent introduction of a thoroughly re-engineered Toyota Tacoma is propelling sales of the segment’s top seller to all-time highs. After an elongated hiatus, there are new options from General Motors, and they’re selling more frequently than GM anticipated. Just last month, Honda began selling an all new, second-generation Ridgeline, a pickup at the opposite end of the spectrum from the rough and tumble Frontier. That Ridgeline, we told you yesterday, is selling like it’s 2008.

Moreover, demand for small/midsize pickup trucks is roughly 30-percent smaller than it was a decade ago.

At Nissan, there are plenty of factors, internal and external, working against the Frontier. The current-generation pickup is more than a decade old. Yet Nissan USA is on track to sell more Frontiers in 2016 than at any point since the current truck debuted on the Titan’s F-Alpha platform in January 2004 at Detroit’s North American International Auto Show. Read More >

American Honda reported 2,472 sales of its all-new, second-generation Ridgeline pickup in June 2016, the truck’s first month of rather limited availability.

June was the Ridgeline’s first four-digit sales month since August 2014, the Ridgeline’s first month above the 2,000-unit mark since October 2008, and the best Ridgeline sales month since August 2008.

In fact, if American Honda simply maintained the June 2016 sales pace for the rest of the year, total 2016 calendar year Ridgeline sales would essentially match 2013’s total for an eight-year high in U.S. Ridgeline sales.

Indeed, on an annualized rate, based simply on the Ridgeline’s first month back from a long hiatus, Honda is already selling more Ridgelines than at any point since 2008. Read More >

A Massachusetts-based parts supplier you’ve probably never heard of could force General Motors’ entire North American operation to grind to a halt.

Clark-Cutler-McDermott Co. stopped making acoustic insulation and trim pieces for GM vehicles on Friday after declaring Chapter 11 bankruptcy, a situation it blames on money-losing contracts signed with the automaker, a source told The Detroit News.  Read More >

Let’s give a hearty “Welcome back!” to our friend Rebecca, who previously wrote about her Tacoma on these pages. She just picked up this beautiful Z4 from a dealership hundreds of miles away from her home. This is her story on how she did it. 

This journey started in October of 2007 when the lease on my 2005 Z4 3.0 matured, and I had to give the car that I dreamed of, and built on BMW NA’s site for two years, back to the dealership.

Since then I’ve had the recurring dream that I still had that car — it’s just been in storage all this time. I have serious commitment issues with cars, so it dawned on me three years ago that this was the one that got away. Fast forward to April 2016, I’ve saved for this car for a couple of years, and casually checking out the market with the plans to purchase before the end of the year. I happened upon a couple of white ones just outside my price range, and decided it was worth the stretch.

So what was my process?

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An anonymous GM employee writes:

I have a field role with General Motors that affords me the luxury of driving (mostly) anything in The General’s portfolio. I can choose from any brand except Cadillac, and can’t drive a Corvette or pickup (because of retail demand and limited supply). I’m 22 with student debt down into the low four digits. GM pays for gas, insurance, and incidentals like oil changes and winter tires because I need a car to do my job. I live in a snow-heavy state where I’m expected to do around 30,000 miles a year for business travel alone. Finally, I switch out cars every four months because that means it remains eligible for new vehicle incentives and programs when it’s sold back to the dealer at a big discount.

Here’s the catch: the vehicle is considered a taxable benefit.

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Nigel writes:

I own a 2011 Subaru Outback that just reached 107,000 miles. The past four bills I’ve received for it have cost anywhere from $300-580 a pop (two were for maintenance, plus the timing belt and new brakes up front).

Should I get used to high bills for it, or am I just getting ripped off by the dealership?

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Ford clearly low-balled its power figures when it issued a sneak peek of the second-generation 3.5-liter EcoBoost V6 back in May.

The newly massaged engine, which will get its debut in the 2017 F-150, was thought to gain 30 pounds-feet of torque. Now, Ford claims the mill will gain 10 horsepower and 50 lb-ft, for a total of 375 hp and 470 lb-ft — a torque figure that beats the F-150’s V8-powered competition. Read More >

It looks like car thieves in Houston have found a way to break into (and make off with) Jeep and Ram vehicles without using a slim jim, crowbar or screwdriver.

Surveillance video from a Houston garage shows a Jeep Wrangler being methodically commandeered by a man using a laptop and tablet. After last year’s remote-control Grand Cherokee incident, this is another hacker-related headache for Fiat Chrysler Automobiles. Read More >

Even with an all-time first-half U.S. sales record, Ford’s SUVs and crossovers huge year-over-year gains weren’t enough to counteract the significant losses in Ford’s car lineup.

And that’s where the Ford F-Series steps in.

Overall Ford Motor Company sales rose 4.4 percent in the first half of 2016. At the Ford brand, specifically, every passenger car nameplate produced fewer sales than during the same period in 2015. Read More >

Because BMWs of the last quarter-century tend to be complex machines, intolerant of owners who flake on maintenance and expensive to fix once all those deferred problems result in a major failure, American self-service junkyards are full of Bavarian machinery. I see dozens of discarded E30s, E28s, and E36s every year, and hundreds of scrapped 7 Series cars. I’m not sufficiently interested to raise my camera and document their demise most of the time. However, an E34 5 Series with V8 and manual transmission isn’t something you see every day in the junkyard.

Here’s a ’94 that I shot in a yard in California’s Central Valley last week. Read More >

Our own Timothy Cain was smitten after spending a week with the midsize Mazda6. It’s a hard vehicle to hate. With its sexy, sculpted sheetmetal, it’s one of those cars you turn back to look at after you park it.

But the Mazda6, even with its willing chassis and sporting demeanor, is still missing many ingredients, one of them power. Call it the Miata Effect, or simply realize that Mazda doesn’t have its own V6 to stuff under the Mazda6’s long hood. Mazda’s midsize sedan isn’t nearly close to the most powerful option in the segment.

That may change though thanks to the Mazda CX-9 and its 2.5-liter turbocharged four-cylinder engine.

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After TTAC delved into the details of the sixth-generation Chevrolet Camaro’s gradual decline last month, General Motors reported the worst sales month for the Camaro since November 2014.

June 2016 sales of the Chevrolet Camaro fell to a 19-month low. With only 4,969 sales — a huge number by the standards of most sporting cars but a 40-percent drop compared with the Camaro’s five-year June average — U.S. Camaro volume fell below 5,000 units for just the second time in the last 18 months.

Newly launched this past winter, the latest Camaro’s sales have fallen well below the totals achieved by the six-year-old fifth-gen Camaro in its final — and worst — year on the market. In the first-half of 2015, GM reported 42,593 U.S. sales of the Camaro, a 9-percent year-over-year drop. Yet one year later, the new Camaro is down 14 percent to 36,834 units, a drop of 5,759 sales. Read More >

This is the story. Brother Bark and I knew a fellow. At one point, he’d been kind of a big deal in the Columbus, Ohio music scene; he called himself, and the others like him, Franklin County Municipal Rock Stars. At the age of 30, he quit that scene and he quit drinking while he was at it. Got a job in Washington, D.C. as a cubicle drone. Bought himself a new Thunderbird. Paid it off in four years. Then he lost his job in the post-September-11th fallout. Ran out of money in a hurry. Moved into a tiny apartment with his girlfriend. Couldn’t afford to leave the house much. He was starting to recognize the signs of incipient agoraphobia in the way he trembled when it was time to go outside and get the mail.

He still had the ‘Bird. It was in good shape. Just six years old. His girlfriend’s car broke down. She started driving his car to work; he wasn’t using it anyway. Some days he didn’t even leave his bedroom. One day the phone at home rang. It was his girlfriend. The ‘Bird was dead. She’d been driving it down the freeway and BANG smoke GRIND silence rolling to a stop.

“I’m sorry, baby,” she said. “I should have changed the oil when it told me to.”

“The Thunderbird told you to change the oil?” our friend asked. He didn’t know it could do that.

“Yes, three weeks ago it started showing the red light that means change the oil.” It was then, according to our friend, that he hung up the phone and started sobbing. He sold The Bird for scrap. The girlfriend left him. He took a Greyhound back to Ohio and moved into a rural basement outside Kenyon College, living on old friends’ charity and doing whatever work he could accomplish without walking outside. The next time he left the house for any substantial length of time, it was to volunteer for the campaign of Barack Obama, five long years later.

“How,” he asked Bark plaintively, “could she have thought that the light meant change the oil?”

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“Has GM lost market share? Yes.”
Alan Batey, President, GM North America,
Wall Street Journal, July 6, 2016

From 17.7 percent in the first-half of 2015, General Motors’ U.S. market share tumbled by more than a point to 16.6 percent in the first-half of 2016.

But, GM’s North American president points out in a Wall Street Journal opinion piece, profitability is on the rise.

TrueCar estimates that, as a percentage of the average transaction price, GM’s incentive spend in June 2016 fell by half-a-percentage point to 10.9 percent, year-over-year. As for the average transaction price, TrueCar says GM’s rose 6.5 percent in June 2016 to $36,489. That is 9.4-percent higher than Fiat Chrysler Automobile’s June 2016 ATP, which also required greater incentives to achieve according to TrueCar. Meanwhile, Batey wrote in The Journal that GM has “reduced low-margin sales to daily rental companies in the U.S. by 88,500 units.”

This explains the marriage of two conflicting subjects: GM’s decreased volume in a growing market and GM’s corresponding increase in profitability. Read More >