Teen Driving Week at Carsala: Part One

Image from Wired.com

Teen driving now has a fresh young face from the NASCAR world to help promote a program designed to teach safety to teens.

Colin Braun, 20-year old NASCAR Camping World Truck Series driver has teamed up with Ford Driving Skills for Life (DSFL) to promote the importance of safe driving to teens around the country.

Mile for mile, teenagers are involved in three times as many fatal crashes as all other drivers. Ford Motor Company has a wonderful program called Driving Skill for Life, through which teens are able to improve their skills in four key areas that are critical factors in more than 60 percent of teen vehicle crashes: Hazard Recognition, Vehicle Handling, Space Management, and Speed Management.

Braun, now in his second year driving the No. 6 Con-way Freight Ford F-150 for Roush Fenway Racing, knows the importance of safe driving on and off the track. As part of the yearlong partnership, Braun will participate in DSFL hands-on training events and various nationwide teen safe-driving initiatives.

“I am pleased to be a part of the Ford Driving Skills For Life program. Having grown up racing all my life, I learned early on there is a time and place for driving fast, but public roads are not it.” said Braun. “I think teenagers are more likely to listen to a message coming from someone closer to their own age, so I hope my involvement will make a difference teaching young drivers how to be safer on the road.”

Throughout the year visitors to www.DrivingSkillsforLife.com will have a chance to view Braun’s blog dedicated to safe driving tips, videos, photos and updates from his race season.

Buying a used GM car right now is a good idea even in the middle of what sometimes seems like a catastrophic series of events for the car company. It is important to keep some keys facts in mind and be aware of some of the myths being thrown around.

1. FACT: Sales for GM’s new cars set a high in May (up 18% from April 2009 by core brands: Chevrolet, GMC, Buick and Cadillac) while GM Certified Used Vehicles, the industry’s top-selling certified brand May sales down 28 percent from May 2008.

What this means: As buyers rush to grab new GM cars, the used (but manufacturer certified) models are getting less love and dealers always love sales so negotiating a sweet deal on a 2008 or prior under their Certified program is in season.

2. FACT: Warranties on GM’s Certified Pre-Owned will still be supported by certified dealers and service centers.

What this means: According to Mark LaNeve, VP of GM North America Sales & Service, ” We will honor our warranty commitment given at the time of purchase to owners of current and future General Motors Certified Used and Pre-Owned Vehicles, such as the 12-month/12,000 bumper-to-bumper warranty for Certified Used and Pre-Owned vehicles, and focus on the customers’ needs from their sales to service experience.” Extended warranties are not always backed by the manufacturer and are sold on behalf of third party companies so those companies are responsible for claims.

3. MYTH: Leftover 2008 and previous years models have been sitting on the dealer lots and could suffer from “Lot Rot”.

What this means: Pretty much nothing because it is a bit of an extreme urban myth based on an interesting article about cars decomposing in landfills which states that metal head gaskets can begin to rot after 1 to 3 years. What they really mean is that rot can be accelerated if exposed “…to high moisture content, acidity and dissolved salts in the soil”. In other words, buried in the ground. Moving on.

4. MYTH: Your local GM dealer is closing as part of GM’s restructuring plan (or “reinvention” as GM likes to call it) so you will not be able to get your Certified Pre-Owned car serviced once they close.

What this means: GM vehicles will receive service and warranty work at closing dealers until they shut down. The remaining dealers will continue to provide service and warranty work and so you may have to drive a little further but there will still be twice as many GM service centers as Toyota centers.

5. MYTH: Hummer is going away but you can finally get the biggest vehicle of your dreams for little to no money.

What this means: Hummer is being tentatively being sold to a Chinese company who is expected to maintain Hummer service and sales after the contracts are completed for the brand’s ownership transition and although the perception is that Hummers are rotting on the lots, May sales for Certified Pre-Owned Hummers were the only GM Certified Pre-Owned brand saw an upswing in May (up 16%) Mind you, that was only 222 total vehicles across the country because those suckers still have a dollar sign as big as their carbon footprint.

Which car from GM’s Certified Pre-Owned inventory would I want? Well, I certainly wouldn’t say no to a Cadillac CTS.

A friend of mine told me a story about a her mother buying a car years ago. It seems that one day in the early 1960’s, after her husband had gone out for a pack of cigarettes and never returned, she found herself a housewife with 2 small children, a house payment, no job and no car. This lady, who’s strength and polish can best be described by her parachuting at age 65 years later, picked up the phone, called every dealership in town until she found one who would meet her demands. She wasn’t trying to get a free car. All that she asked when she rang them was one simple favor:

“I have the cash to buy a car for X amount and if you will come pick me up at my house so that I can test drive a car that fits that price, I will buy the car from you.”

Believe it or not it took her about 6 dealerships before finally a nice Pontiac salesman agreed to her request. She got the car, got a job that eventually became a lifelong career and she became self sufficient enough to raise her 2 children without any assistance from her deadbeat husband.

Flash forward to 2009. At a time when the automotive industry is finding itself in a wee bit of a slump, along comes a study that reveals that car sales people may want your business but they aren’t diligent about following up with potential customers despite all of the advances made in car shopping, buying and selling (eg, the internet). Phone leads alone are considered to be the gravy of the business with high success rates and fast turn around but a lead provider and training resource for the car dealerships recently analyzed the results of 3,000 customers who placed phone calls into dealerships after seeing a car that they liked on dealership websites and found that 3/4s of all such potential calls from buyers are ignored, lost or not followed through. And email exchanges were even more likely to be lost.

Some of the findings:

• 72% of dealers did not ask for an appointment with the caller.
• 35% of dealers did not suggest alternatives if the caller’s first vehicle of interest was already sold.
• 24% of dealer voicemail systems were full or not functional, so the customer was unable leave a message.

What does this mean for buyers? Frustration. It means that after researching and finding a car that interests them, unless they walk onto the lot and do the dealership dance, they will just move along until they find a salesperson who will talk to them.

In walks Carsala.There are more fish in the sea of cars.

What most buyers forget quite quickly when they see “the car” (and they fall in love) is that cars are mass manufactured by model and trim every year and that with a good database of similar cars with similar mileage and features, so the object of their desire is obtainable. By knowing what car a buyer likes Carsala can usually find that car, negotiate a price 15% and often more off retail “value” and all a buyer has to do is sign the paperwork with the dealership. No messing around with false starts, unreturned phone calls or negotiating.

For dealers, Carsala is also good news. It means that they are being presented by solid leads who are not virtually kicking tires so the turn around from negotiation to close is fast.

I dunno but it just seems that with buyers getting frustrated with dealerships and dealers getting frustrated with buyers, Carsala is a mediator who can get every one to meet their goals.

A recent survey from the Insurance Research Counsel states that hundreds of thousands of driver have let their insurance lapse because of financial hard times. As the jobless rates climb, so will the number of people choosing to go uninsured. The story is the same, “which bill do I pay the insurance or the electric?”

The trend is bad news for everybody on the road. If you’re hit by an uninsured motorist, you may have to sue to recover costs, and many uninsured motorists have few assets. You can protect yourself by carrying uninsured-motorist coverage — almost half of states require the added coverage — but this may boost your premium.

Many of the people on the road are either uninsured or underinsured, and so you have to protect yourself. Your odds of being in an accident with an uninsured driver are substantial.

One of my clients had a down turn in his business and reduced his coverage to a bare minimum to save costs. Against my advice, he cancelled all coverages except liability. As you can probably guess, he was hit by an uninsured driver, who then fled the scene. In tough economic times, he now has substantial damage (in excess of $10,000) that he has to pay. To make matters worse, he was injured.

Motorists driving without insurance also face risks. If you are found at fault for the accident and a judgment is awarded, a court could order liens on you assets. If you don’t have attachable assets, you could be set up on a court ordered “payment plan.” Also, driving without insurance is illegal in 48 states and the District of Columbia.

It’s an ugly situation, so before you decide to let all you policies lapse, talk to you agent. There are often things that can be done to ease the financial pressure without sacrificing your long term financial future.

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Jim Seilsopour

Jim Seilsopour is an insurance agent and seasoned author in Long Beach, California. As an avid triathlete he loves his Honda Fit because he can fit his bike in it and get great MPG.

As you go through life, there are certain memories that stick with you. You are not sure why, but then later in life it comes full circle. For me … 18 years later it has come full circle.

It might have been eighteen years ago, but I remember it like it was yesterday. I was at my Grandfather’s house in Hawaii for Christmas Break. I had just played golf and was hungry. I opened up the refrigerator and was trying to figure out what I wanted to eat. I kind of stood there and was trying to make a decision … probably between a sandwich or a quick snack.

“Courtney, shut the refrigerator door.” “I’m just getting something to eat.” “Decide what you want to eat BEFORE you open the refrigerator door.” “How can I make that decision when I don’t know what’s in the refrigerator?” “You have to plan ahead or you will waste electricity.”

That was my exchange with my Grandfather and I thought it was ludicrous. I remember tellling my Mother I thought the discussion was a bit extreme. She told me it is part of what happens when you grow up in a Depression.

I also remember when I received my Driver’s Permit and my Grandmother told me I could drive her around. I was so excited (even though it was a HUGE Chevy Caprice Classic). She told me I could take her to the grocery. We would be going to 3 different groceries because that is where her coupons could be applied. I remember thinking … they live in this huge house … why is SHE cutting coupons??? Once again, my Mom explained it was part of growing up in the Depression.

Fast forward to about 5 years ago. Life was good … we were selling a ton of cars and my Dad decided to give me this “lecture”. “You have NEVER been through a BAD time in the car business. You don’t know what it’s like. You have no idea what bad times are like.” He used to tell me that sometimes when you build a relationship with a bank, it’s not all about rate. Sometimes you will take a higher rate in return for availability of funds. Let’s just say this makes a whole lot more sense now than it did five years ago!

Guess what? We can now check bad times off the “bucket list”!! My generation has arrived and now we are getting first hand experience! Yes, we have our story. I wonder what my Grandfather would think today. When he was a Dealer, GM had over 50% of the market share. Do you think it ever occurred to him that they might go bankrupt? In today’s thinking, I suppose it would be like thinking that Google would go bankrupt? Maybe it is a hard comparison because right now, it does feel like ANYTHING can happen.

So as I reflect on the refrigerator door incident, cutting coupons, and the availability of funds, what have I learned? What will I tell my kids and Grandkids?

* Accountability during the good times is a necessity because the bad times will expose the sins of the good times.

* Pay down debt. If everything is paid for, you can survive all kinds of situations.•We all have relationships with the factory, but we need to learn to operate our stores independent of the factory because you never know what could happen.

* Constant learning and training is a necessity. If you are willing to change, you will be fine. The people that do NOT embrace change are getting ready to close their doors.

* Keep your priorities in order. There will be a ton of stress over the years but if you have Faith, Family, and then work … you will have the ability to keep everything in perspective. This will probably add years to your life.

The good news is that my Grandfather served in WWII and the store was basically “closed” for 3 years. When they returned, he told me they made more money than they ever imagined. When the smoke clears, there will be some big wins to offset these days.

There are many more items and I would love to hear what everyone is learning from these times. With that said, what is YOUR STORY?

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Courtney Cox Cole, Hare Chevy

This is a guest post by Courtney Cox Cole, owner of Hare Chevrolet in Indiana. She has worked for 13 years in the automotive industry and she and her sister Monica recently purchased the business from their Father. Hare Chevrolet is the largest GM retailer in the State of Indiana and has been for 4 years. Hare has the distinction of being the oldest transportation business (since 1847) in the Nation … Courtney is 6th generation. There is an article in the February 2009 edition of Car and Driver Magazine that gives an excellent history of their business.

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As Spring begins to become the determining season buyers are trending towards thinking about Summer travel plans. As usual this affects the car market because buyers are thinking about how their car purchase can increase their summertime pleasure. This year, like a butterfly flapping its wings in the hemisphere of our own backyards, the Spring car season is also being affected by the economy and another interesting trend: minivans are coming back in favor.

“People have come to realize the modern minivan is a tremendous buy for the money,” said Jeff Gann, owner of Lakeshore Motors in E. Lake Weir, Florida to Used Car News this week.

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Fluctuating gas prices has led many buyers to consider minivan over their typically gas guzzling cousins, the SUVs. Also, their lack of popularity in recent years combined with rental fleets of minivans being liquidated mean that minivans are showing up in the used marketplace for a lot less than SUVs. When rental fleets show up at auction and dealers can buy blocks of minivans for low prices the savings can then be translated to the spending conscious buyer who wants to spend around $200 a month on car payments.

“Buying a block from a rental company was a good opportunity”, said Tom Stehouwer, owner of Tom Stehouwer Auto Sales in Grand Rapids, Michigan who recently bought a block of a rental fleet for his inventory.

Consumers like Robert Gonzalez, father of 5 and car savvy commentator said to me, “I have seen a moderate push toward them [minivans]…as several family members, friends and neighbors have picked up a minivan within the last year.”

Gonzalez also adds, “I know there is a downward trend in production of medium to large size SUVs. I would guess though that Toyota and Honda more than likely own the minivan “quality” category while domestic manufacturers like Chevrolet, Ford and Chrysler probably own the “value” category. Of course this is entirely speculation on my part.”

And his speculation is right! A used Honda Odyssey (2005-2008) averages about $12,000.00 in Carsala’s database of used inventory of what is currently available on the dealer lots. 2008 Odysseys are currently $20,000.00 to $32,000, according to Edmunds while Chrysler Town & Country (2005-2008) averages about $7000.00.

In any case, both are examples of how accessible late model minivans can be for buyers. Just don’t forget your Hot Rod Minivan Accessories!