Cars Aren’t Getting More Expensive Are They?

Fifteen years ago I bought my first car for $4k, exactly what I thought the used car price sweet spot was at the time. It was a good, basic Honda Civic with 87k miles on the odometer. It lasted a good 90k more until it was totaled by an errant tractor-trailer.

Fast forward to today and I still think the sweet spot is right around $4k for basic transportation. But the price of the average new car has risen considerably since then. It’s now somewhere in the region of $28,000.

Interesting. New car prices higher, the price of solid used cars is still the same. What does this tell us?

It tells us that new cars are depreciating more, on a dollar basis, than before and that used car deals continue to improve. And that means new cars are more expensive to own than before, which could be one key reason why used cars are more popular than ever before.

Credit Flowing Again For Auto Loans

Automotive News reports that the “Average Joe”, who typically has a FICO score in the region of 620 to 680 is finding it easier to get car loans now. Requirements are a bit more stringent than before in terms of how much of a down payment is made, and trade-in loan balances.

I guess this means we may hear less of the “We’ll pay off your trade, no matter how much you owe” bs on radio commercials. The closing rate is also improving it seems because buyers are more realistic about their borrowing power and doing their homework more before going in to risk getting shot down for financing.

Below Average Joes tend to have scores below 620 which is considered subprime, and still have difficulty financing. Which makes sense as they have a lower probability of paying back loans.

This is one more reason why the new car market is so far down compared with its peak.

How to Get A Repair Estimate

The key to getting an accurate repair estimate is to know what you’re asking for. Be specific when identifying the problem (symptoms). Don’t speculate on the cause, even if you know the answer. That’s why you’re asking for professional help.

For routine service you are familiar with (oil changes, tune ups, etc) you can just call a few shops and get a ballpark estimate for what it costs. Always take notes, ask the same questions and get the name of the person you spoke with.

On any service more routine than an oil change, ask for the shop’s hourly labor rate too. This allows you to better compare the total cost estimates by pricing the parts and labor separately.

Bringing the car in will enable the shop to provide a more accurate estimate. Ask for the estimate in writing. It some times helps ahead of time if you tell them you might not keep the car, depending on the extent of the problems.

The time to pay for a thorough inspection is when you’re contemplating buying a car or you really want to have it checked out top to bottom, and need an objective assessment. They will probably find a problem, as most cars are not in perfect condition. Always cap how much time you want them to spend on it. An hour is a reasonable amount.

Sixth Gen Honda Accord (1998-2002) Shift Lever Light

This is totally unscientific, kind of funny and I am almost embarrassed to call this “advice”, but I’ve seen it enough times to know it works. I’ve never bothered to investigate further but have done it myself on several cars of this particular model and also heard the same thing from others with the same model.

If you have one of these cars and it’s equipped with an automatic transmission, and the lights on the shift lever panel go out (P-R-N-D indicator) all you have to do is bang it once with your fist, and it should come back on. The problem may be intermittent and come back later, but this could just do the trick.

Spilled liquids might also be a contributing factor after turning sticky (coffee).

Stuck Throttle: What I Would Do

With all the news about unintended acceleration of various Toyota vehicles, here’s what I’d do if it happened to me [Disclaimer: I’m not liable for anything that may arise out of using this advice].

I believe the majority of the Toyotas subject to recall in the US for unintended acceleration are equipped with automatic transmissions. So as a practical matter, if the throttle stuck I’d first push the shift lever into neutral. Then I’d pull over to a safe spot and turn the engine off.

If going into neutral doesn’t work (I can’t imagine that it wouldn’t) I’d turn the engine off, but leave the key in the “on” or “accessory” position if possible. This reduce the likelihood that steering effort would affected. Of course, this assumes the car has a regular key and not a newfangled remote starter.

If all else failed I’d throw the car into park or reverse, which would destroy the transmission and possibly the engine. But at that point there isn’t any better alternative.

For cars with manual transmissions, it’s just a matter of pressing the clutch to disconnect power to the drive wheels and moving the shift lever to neutral. Then I’d pull over and cut the engine.

While this is a serious problem, based on some of the reports/descriptions about the fatal crashes it appears the driver panicked and did not recognize the problem quickly. An ounce of prevention can go a long way.

How to Find A Good Mechanic

The key to finding a good mechanic, as with any professional service is reputation and referrals. If you know someone nearby who is knowledgeable about cars, and has a car similar to yours they’re probably a good source for a referral.

Always try to use a system with feedback to locate good help. It’s no different in concept to ratings on eBay. The key is you need indicators of trust.  Three sites you can use to scour for mechanics are:

Tire Rack. Look for installation shops in your area that have a lot of good ratings and that also do general car care.

NPR’s (National Public Radio) Car Talk

Yelp’s Automotive section for your area.

Then again, no matter how good the reputation the proof you won’t know for sure until it’s your turn. This reminds me of a vasectomy joke but I digress.

Anyway, just by using one of the above sites should get you several promising service centers. Unless you have a rare or specialized vehicle you should be set. It’s not necessary to go to the dealer unless warranty work is being performed.

A Taste of Maranello

In LA for the weekend visiting family and friends. Had a direct flight from DC. The guy in the aisle seat in my row brought a phone book and read it the whole way. Weird.

Saturday night I went for a ride with my cousin Duane (Cindy’s brother) in his 2001 Ferrari 550 Maranello. It was an interesting display of egos, not Duane’s or mine but of the other drivers.

Every stop light seemed to produce a one car drag race with an economy car or taxi. We’d just motor around but everyone wanted to prove something, gun their engines and floor it when their Christmas tree turned green.

This is a front engine V12 GT car in the classical sense. The car is amazing with a firm ride and the aluminum shift gate elicits a wonderfully mechanical sound with each gear change. The engine is everything, especially with the Tubi exhaust system.

And it isn’t likely to break the bank. Duane estimates $2,500 per year average for maintenance at specialist shops.