Better Gas Mileage or Surviving Crash Impact – You Decide

This time last year, while the financial and housing crises quietly percolated, gas prices hovered between $3 and $4 a gallon, depending on where you lived in the country. And while we all complained about those prices, we weren’t really doing much about it. Jobs losses weren’t what they are today. The economy seemed in good shape. Most of us were comfortable in our jobs and collecting our paychecks, and driving our big ol’ gas guzzlers.

Fast-forward a year. While gas prices are roughly half what they were, the economy struggles to recover from The Great Recession. Americans are looking to cut costs and corners everywhere. Instead of replacing our gas hogs, we are repairing them. But some of us are replacing our cars. Sales of new cars are dismal, but still existent.

So we are in the dealership, perusing the selection. What is one of the top factors in the selection of this new vehicle? Reliability? Now more than ever, but not the top. Amenities? Maybe, but in this age of frugality probably not so much. Gas mileage? You bet. In fact, consumers are putting fuel economy above safety. In a recent Insurance Institute for Highway Safety (IIHS) crash test of subcompacts showed that “driver death rates in mini-cars are more than double the death rates in midsize and large cars.”

Another quandary that we Americans face in these hard times. On one hand, we need vehicles that are fuel efficient and environmentally friendly. On another hand, we want to keep ourselves and our families safe. On another hand we need to save money and live on tight budgets. And yet on another hand, we’re being asked to give a hand out to the car companies themselves. That’s a lot of hands out.

So, if you are among those looking for a new vehicle, which do you prefer? Comment here!

Show Us the Books

Car companies are still trying to dig themselves out of the current recession, asking for billions in support funds and promising leaner, more efficient, restructured organization. Like other companies, many hope that the car manufactures take this restructuring opportunity to weed out non-essential employees and broker better deals with the unions.

Some may argue this is painfully poor timing, while others say that this is the new way, a necessity. For years these companies have seemingly mismanaged their books, their companies, their relationships with America. While much of the backroom paper pushing and mice-type is best handled by the experts, transparency is the theme of the day. If the car companies want the American people to fund a bail-out of such staggering size, they need to put their cards on table. They need to show us who and what is being reorganized and why.

It may be ugly. It may be painful. But I say, show us the books.

B is for Billions and Bailouts

Billion dollar stimulus packages. Billion dollar bailouts. Billions, billions, billions. Was there ever a smaller denomination for these types of economic rescues? In today’s economy, it seems not. No matter what sector of the economy, especially automotive, billions seems to be the base denomination for the movers and shakers requesting funds to shore up their bottom-lines.

Heritage companies, long noted for their ability to return enormous profits year after year, now can’t seem to stay afloat for more than a couple months, and then not without promise of a helping hand to come. These once heralded companies are now posting enormous loss statements. They say they need to restructure. They need help. They need…billions.

The jury is out on America’s response to and appetite for another bailout. But, if the auto industry should go bankrupt, all agree it will be a sad day in American history. For the country that introduced the automobile to the world, to have to shutter the companies that made them thrive, it would be a very black day indeed.

Already some say that the American automotive dream has been lost. I say, let us be optimistic. Let us brush ourselves off, and look into the future. We built this city, one brick at a time, one car at a time. We still have the most talented, innovative and technologically advanced auto engineers in the world. If we can find our way out of the mire we are stuck in today, we could, can, will build cars, better, stronger than before. We know how it is done. We were and can remain first. Together, we can do it!

Top 5 Things You Can Teach Your Kids About Cars

From a very young age, kids are fascinated with cars. Racing cars, ambulances, dump trucks, fire engines; they all hold a special place in the hearts of the young, and the young at heart. And while most of us parents take special pride in our children’s eagerness to jump in the car to “go for a ride, just you and me,” it is important that we also remind these same children of the many responsibilities that come with car ownership. Keep in mind, it doesn’t have to be all spark plugs and break pads, and grease and mud up to your elbows. That’s better suited for them when they are ready to drive. Ignite your little one’s sense of responsibility with these 5 things. They are easy, fun, and important!

1. Exterior Care – Wash the car. Did you know that a clean car, washed and waxed, is more aerodynamic and better on gas consumption? That’s right. Clean cars get better gas mileage because they slip through the air with less air turbulence. A clean car also shows the driver’s pride in the vehicle and their desire to keep it in tip-top shape. And it’s fun! When is the last time you washed the car with your kid, that didn’t end up in a water fight?

2. Interior Care – Keep the interior clean and free of clutter. While you’re washing the car, clean out the inside too. Keeping the inside picked up keeps the driver from being distracted by items rolling around in the floorboard. And, in an accident or a sudden stoppage, those discarded things could become projectiles in the car.

3. Safety – Wear your seat belt and make sure drivers observe posted speed limits! More lives are saved every year by simply fastening seat belts and keeping the car’s speeds under control. Not speeding also saves on gas and cuts down on the car’s emissions. That’s safety for the environment too!

4. Components – Keep your hands to yourself. One of the first things we want to do when we get into a car is fiddle with the radio, put the seats in a more comfortable position, open and close the windows. But that’s not a very good idea, especially for little ones. While all the shiny surfaces and flashing lights are enticing, today’s new cars are outfitted with Navigational systems, On-Star, and satellite radio, to mention a few – systems that can easily be messed up by little hands. Instead, children under 80 pounds or 12 years of age, should only sit in the back seat, where there are fewer components, and should not touch any equipment unless told to do so by the driver.

5. Maintenance – Kick the tires, change the fluids. Kids like to get dirty! They like pulling dipsticks and checking tires. And with you there to help and guide them, you can teach them a very important lesson about car maintenance and preventative car care at the same time you are enjoying one-on-one time with a special little one.

It is important that children be aware of all the responsibilities that come along with vehicle ownership. Cars are one of the most important purchases they will make as adults. Showing them what it means to be a responsible owner will anchor important principles they can carry with them when they are ready to make a purchase of their own. Plus the bonding spirit between parent and child is unforgettable.

The Recession Question: Repairing versus Buying?

The economy is down, the automotive industry is trying to survive, and the good news is that the price of a vehicle has never been better. Some people are taking advantage of these savings and replacing all their fleet and/or personal cars. Others rather weather the recession by repairing their existing vehicles. So, that begs the question, is it better to buy now or to repair?

First of all, if you’re financially able to do it, as a favor to the auto industry and the economy please…PLEASE consider buying. Not only will you be able to get an amazing deal but you’ll also be part of the solution and helping the auto industry get out of this mess. If you rather wait and repair the vehicles that you currently have, think about this.

The four most expensive vehicle repairs are related to major engine, transmission, rear axle, and electronics problems. If these are not the current issues with your car, then it MAY be ok/practical to keep or “nurse” you car until you are in a better financial position to purchase a new one. Of course, if you’ve been neglecting certain repairs and then end up with a laundry list of items, you may want to check the blue book value of your vehicle and make a decision. You can also contact us or a friend who has automotive knowledge to help you decide.

So, if you just got a bonus and you’re trying to figure out what to do with the extra cash—consider buying a car. Prices have never been better. If you need a small repair like replacing a starter or radiator—go ahead and make a trip to the mechanic.

Do I hybrid or not? What is a full vs mid-hybrid vehicle?

Ah, the question I get on a weekly basis. You may not have known the difference because you’re just now in the market for a new car. However, before you think about purchasing a hybrid vehicle, consider reading this post.

First of all, one of the most important things to understand is if you are dealing with a full or mid hybrid. A full hybrid has both a gas engine and electric motor. As a result they work in combination and can work in unison. Mid-hybrid vehicles have a gas engine and electric motor too. However, the mid hybrid’s electric motor supplements the gas engine’s load and, as a result, creates a more fuel efficient vehicle. So the next question, which is better? Full or mid? The answer is, if you care about fuel efficiency—both the full and mid hybrids are basically equally efficient.

So, let’s talk about this further—–is getting a hybrid worth it? I always look at this from the consumer’s perspective. If you are a consumer narrowly focused on purchasing a hybrid to accelerate the trend of fuel-efficiency, despite the costs, then I think you are the right customer for this type of vehicle. If you are a consumer interested in saving money, then I personally think you should wait –the technology is not quite there yet.

If you compare the current pricing of hybrid cars versus gas vehicles, given the average life of a vehicle, the consumer generally will not be able to recoup the difference. Also, repairing a hybrid is much more expensive and often an element that is not considered during the purchasing process. Have you asked how expensive it will be to replace the battery of a hybrid?

I am personally excited about the trend in electric cars and more fuel efficient vehicles, but making this purchase at this given time depends on what type of consume you are. So, do you hybrid or not? That all depends on you….

GAS EFFICIENCY SCAM ALERT

As gas prices increase, so have advertisements about products that claim to clean your gas tank and increase your fuel efficiency.  DO NOT BE FOOLED.  I have a term for these types of liquid products –I call them snake oil.

For my friends and clients looking to make their cars more fuel efficient, I tell them to redirect their dollars and spend it on efforts that actually DO increase fuel efficiency such as:

• Maintaining clean air-filters
• Keeping tires well inflated
• Reducing weight of vehicle (empty out that trunk!)
• Tightening your gas cap to reduce gas evaporation

These are inexpensive and easy ways of making a real difference in fuel efficiency.  Save your money!

Parent Auto Tip

Instead of crayons, which can melt in a hot car, consider color pencils.   Just make sure the tips are not too sharp and that sharpeners are kept in a glove compartment away from kids.  This is an easy way to preserve the condition of your seats and value of your car.