Grant's Auto Rants

For Sale, By Owner

The spikes in fuel prices over the last two years and subsequent cataclysmic digger in SUV/Truck values may be a factor in a recent shift of used vehicle sales from traditional dealers (new & used) to private party. The increase in online sales outlets and their usability have also helped many private sellers find new homes for their beloved whips.

A recent study by CNW Marketing Research shows that private sales nearly doubled last year to some 34% of the total used car market, which is roughly the same percentage that new car dealers handle and more than what independent used sellers do. This increase has also had a dramatic effect on the average transaction price, which has increased from about $4,500 to $7,000.

Most people who have ever dealt with a new car dealer have experienced the low-ball trade-in offer, which is invariably accompanied by some nicety like, "Oh, we just aren't selling those very well," or "I can only give you..." In actuality, this is the bread an butter for any dealership worth their, salt(?).

By counting in the fact that nobody wants to deal with the hassles of selling a car on their own, the dealer can get away with offering you less than market value for your car. These same people above make up the group that trades in their vehicle on Friday for $9,000, only to see it advertised on that dealer's used lot on Monday for $14,000. As a matter of fact, the dealership can make money on the used car sales both coming and going, by buying it for below value and then selling it for a premium. It is not at all unheard of for a dealer to make $3,000 or $4,000 on up to $7,000 to $8,000 on a used (premium) car flip.

The playing field may be leveling, however. Not only are there more online outlets that cater to used car sales and relieve several of the hassles, more and more people are open to the idea of either buying or selling through third party sites. Craigslist has seen their used car listings more than double in the last year from 400,000 to over 1 million, roughly 2/3 to 3.4 of which are through private party. The same results are seen by other sites like cars.com, eBay Motors, AutoTrader, and Kelley Blue Book.

When you consider both how reliable vehicles have become and how many trade-ins are "upside down," (the joyous condition where you owe more on your vehicle than it is worth) it is more relevant and important than ever to get as much as you can for your trade. And with more user-friendly services to help you do it privately, you can expect new car dealers stick with the highest margin cars (premium, Certified Pre-owned, etc...) and the independents losing business altogether.

For every new car sale in the US, there are two used cars that change hands (some 44 million in 2005). If you are in-market, you might want to ask yourself how much is that trade-in convenience really worth.

Where the Rubber Meets the Road

Ding, Ding, Ding...look no further, for we have found, without doubt, the ultimate "car guy."

While many can claim that they have be interested in cars since early childhood or even have a passion for the automotive industry, I am sorry to say that they will likely bow out to the mechanic recently featured in an article by the UK's The Sun. Apparently, Chris Donald of Great Britain, loves his work so much as a mechanic, that he, in a matter of speaking, likes to "take it home." Put another way, this mechanic likes to have sex with cars.

When I first saw some of the auto blogs and Digg pick up this story, I simply didn't believe it and in the interest of keeping this a family-oriented, motorhead-type of online publication, resisted the temptation to include it in our coverage. After reading the articles, however, and seeing some additional (related) stories come out of the respective woodwork (read closets), I decided that this type of behavior needs to be well-documented for any parents with overactive imaginations who might be wondering why their son or daughter likes to sleep in the garage.

Chris claims to have had sex with approximately 30 vehicles over the last 20 years and has even started a website to, I guess, inform or reach out to the other 500 or so blokes who he claims share the same interest. Judging from the included images (though I can't bring myself to search for any more), Chris goes for all makes and "models," apparently without discriminating based on a car's color. He has gone for Germans, Italians, French, British, and even American.

Some of the more alarming information that inevitably accompanies this type of story comes in the form of comments and somewhat related incidents. Chris has a girlfriend of the human variety, for example. What must she think when he says he is just "going out for a drive?" Or the fact that there have been other strange fetishes where individuals choose to make nice with other inanimate objects. (The story mentions one electrician from 1993 who was jailed for skipping the vehicle altogether and just going straight for the road.)

Mr. Donald attributes his affliction, in part, with a particularly strong crush he had as a child on Kit from Knight Rider. How many additional ways can David Hasselhoff possibly find to impregnate the delicate social fabric of our society? Were it not for such good hair, I would think he would be sticking another feather in his cap as we speak.

Now, I will be the first to admit that we have written here about the similarities of the human figure to those features on a car and even the closely related responsibilities of the mechanic vs. doctor, but when you consider that the guy has also had the hots for a couple of boats and a jetski, I don't feel so bad.

To read more, click here and here.

And please feel free to choose or add your own moniker to the subject, just about all of the following apply:

"Nuts and bolts"
"Bumper Humper"
"Testa Rossa"
"Tie Rods and Ball Joints"
"Wrench Fetish"
"Speed Bump"
"Backseat Driver"
"Whips with Whips"
"Flush and a Tug"
"Pipe dope"
"Two for Tailgating"
"Objects in mirror may be closer than they appear"
"Curb Appeal"
"Flatbed Quickie"
"Gearhead"
"Mustang Sally"

Upstate Auto

Detroit still represents the center of the automotive universe, at least domestically anyway, even if only symbolically. And while globalization, US factories of foreign competitors, and declining market share are all doing their share to dilute this reign, the Midwest has cemented its place in Automotive history. There are, however, other hotspots around where car culture is particularly prevalent, even in the absence of any formal manufacturing, corporate headquarters, or racing venue.

Certainly southern California as a whole has been car crazed for decades with its design studios, vehicle-friendly tepid climate, Hollywood crowd, wide-open spaces, and progressive population. In the south, Daytona, Florida has it all with the draw of Nascar, the beach (where you can still drive), and mix of tourist/snow birds that pave the way for a nice “vehi-cation.”

One area, which may not traditionally be equated with the likes of Le Mans, but has certainly made some automotive waves as of late, is New York. And while the “city” has the money, people, and glamour to support it, I am talking actually about upstate New York, and I don’t mean Poughkeepsie.

If you follow the Thru-way far enough, it will turn from North - South to East - West and take you from point A (Albany) to point B (Buffalo) with a very eclectic group of folk and features in between. It is along this corridor where you can find some recent and very interesting automotive news covering sales, service and even racing topics.

While every metropolitan area will have their share of car buffs and stories, it is especially intriguing to uncover little gems in these smaller communities. Starting in Albany, you will find the headquarters for Lia Auto Group, which services not only the Capital District but parts of CT and MA as well. Lia is one of the countries top 100 dealer groups by sales volume. In addition to Lia (http://www.liacars.com/), the Albany area is home to Dealership Management Software company, Auto/Mate (http://www.automate.com/index.html), which offers a progressive and more cost effective DMS system alternative to ADP, Reynolds & Reynolds, UCS, etc.

Moving West, you will come to Syracuse and its environs. Syracuse is the home Fuccillo Automotive Group and Fuccillo Hyundai, one of the largest Hyundai retailers in the country. This dealership is a perennial sales volume leader having once set the record for most vehicles sold in a month for Hyundai. The current record stands at nearly 2,000 Hyundais in a 30 day period.

Syracuse is also the home of Driver’s Village, a colossal Roger Burdick auto store featuring no less than 16 brands on one location, a concept that is duplicated in only a couple other parts of the country. The site also includes additional vendors like a salon, insurance company, Nascar experience, restaurant, athletic club, and, of course, driving school.

Another interesting automotive concept to come out of Syracuse, New York comes compliments of Courtesy Ford, which was featured in an October Automotive News article. The company ran into trouble in their service lane as volume and space constraints led to customer wait times of several days just to have their cars serviced. Seeing an opportunity the company introduced their 24 hour service program, which keeps several techs, a service advisor and cashier in house throughout the night to service vehicles.

The program has not only cut down the wait times, but it has provided an interesting service for customers who can now simply drop off their vehicles in the evening and pick them up on the way to work in the morning.

Down the road in Rochester, they also know a thing or two about service. John Holtz is the area’s largest dealer group and recently introduced a service concept that takes a page right out of your local dentist’s playbook. In fact, the company interviewed area dentists to find out just how they scheduled patients and adopted the practice to their service lanes. The idea is pre-scheduling customers ahead of time they way you might a dentist or doctor’s appointment, which means the dealership is contacting customers only as a reminder, not to actually “sell” a service. The concept has down wonders for the entire Holtz group.

They company has also forgone the use of email to contact customers regarding upcoming service appointments using instead a postcard mailer. In their experience, customers equate the email to spam and simply delete it.

Possibly last on this list, though certainly not least, is Watkins Glen Race Track. Watkins Glen is a picturesque hamlet sitting at the base of Seneca Lake, the second largest of the finger lakes, which probably would make it the “ring finger” on your left hand. Watkins Glen became the home of the original Watkins Glen road racing circuit back in 1948 at the effort of Cornell Law Student and auto enthusiast Cameron Argetsinger.

The circuit first went through the actual downtown making it a true road course, though in 1958 the first of four devoted tracks was constructed. Watkins Glen has a rich history of auto racing and lay claim to being the first post WWII road racing course in America. It has hosted all types of racing including Formula 1, SCCA events (Can-Am, Trans-Am), Formula 5000, CART Indy Car Series, and Nascar.

So the next time you hear stories about New York’s salty roads, lake effect snows, and buried cars, remember that spring is right around the corner and that the “I Love NY” campaign many of us are familiar with applies also to car guys.