A Cadillac I was driving had a warning light on the dash that said check water level. The water reservoir was full. We ran a computer scan and found out that the sensor in the bottom of the water reservoir was bad. The problem is that you cannot buy the sensor as a separate part, it comes with the reservoir. I have purchased similar sensors for $10-$20, the cost of the reservoir was almost $100.
It seems the manufacturers take a relatively inexpensive part that will fail often and combine it with a part that is expensive but rarely fails. This way they can sell more of the expensive parts.
November 18, 2009
October 27, 2009
Sales Tax on Private Party Car Sales
This idea is being promoted as a way to help catch and help put unlicensed used car dealers or "curbstoners" out of business. The cars they sell are usually titled in the name of someone else other than the seller and have been signed off and the buyers name left blank so it can be filled in later. If asked who the car belonged to they will say it belonged to a relative who wasn't able to sell it on their own.
These people survive because they do not collect sales tax. The sales tax at a dealership is 8.3% in Phoenix. If you don't have to pay the tax that saves you $830 on a $10,000 car. The worst thing about these private party transactions is that ther is absolutely no recourse if something goes wrong with the car or title. In some cases I have seen, once the transaction is done, you can't get hold of this seller again, if there is a mechanical problem, you are out of luck.
A dealer stands behind the product he sells and will help if these problems occur. Right now Arizona has a huge sales tax shortfall. It has been estimated that the dollar amount of private party sales of automobiles is about the same as the dollar volume of new car sales every year.
If the "curbstoners" are put out of business, mor people will patronize legitimate car dealerships. These people would then have the security of knowing exactly who sold them the car and where to go if a problem does occur. Most people keep a car 2, 3 or more years so the tax isn't that great a burden.
There are many arguments about exemptions and ways to collect the tax. Many states use this method and I fullly support enacting this sales tax.
These people survive because they do not collect sales tax. The sales tax at a dealership is 8.3% in Phoenix. If you don't have to pay the tax that saves you $830 on a $10,000 car. The worst thing about these private party transactions is that ther is absolutely no recourse if something goes wrong with the car or title. In some cases I have seen, once the transaction is done, you can't get hold of this seller again, if there is a mechanical problem, you are out of luck.
A dealer stands behind the product he sells and will help if these problems occur. Right now Arizona has a huge sales tax shortfall. It has been estimated that the dollar amount of private party sales of automobiles is about the same as the dollar volume of new car sales every year.
If the "curbstoners" are put out of business, mor people will patronize legitimate car dealerships. These people would then have the security of knowing exactly who sold them the car and where to go if a problem does occur. Most people keep a car 2, 3 or more years so the tax isn't that great a burden.
There are many arguments about exemptions and ways to collect the tax. Many states use this method and I fullly support enacting this sales tax.
May 7, 2009
Referral Winners
We also were having a contest to see who could send the most referral customers in during April. The prize was to be 50, 25 and 10 Powerball tickets. Quite a few customers sent customers who purchased a car, nobody referred more than 1 customer. We drew names out of a hat. 1st prize of 50 powerball tickets goes to Evelyn Brown. She referred LaNique Watley. Robert Baquero gets 2nd priz, 25 Powerball tickets. He referred Jessie Baquero, and Humberto Rivera is the 3rd place winner of 10 powerball tickets. He referred Adrian Bravo. Congratulations to our winners. Winners can pick up their tickets Monday May 4th.
We appreciate all 15 people who referred customers last month.
Don't forget about the customer appreciation day on May 23rd. I would like to display some older cars, cars that we could have been selling 50 years ago. If you have a classic car and would like to show it off, let me know. We have room to show them.
We appreciate all 15 people who referred customers last month.
Don't forget about the customer appreciation day on May 23rd. I would like to display some older cars, cars that we could have been selling 50 years ago. If you have a classic car and would like to show it off, let me know. We have room to show them.
April 23, 2009
Lenders, they see black and white, no shades of gray!
I have seen several customers this week who had paid on a car loan for 2 or 3 years without a problem, maybe one late payment in that time. Now they are in my store looking for a car and they made a payment on this car in February. I ask what happened to the car they had been paying on.
The answer is something happened that caused a financial strain, an accident or illness. The company wanted $1000 today, the customer had $800 and would have the other $200 in 3 days. They kept the car and the customer would have to pay it off if he wanted to keep it. Black and white says the company is right, gray says the customer has paid at least 24 payments of $400 per month, if he gets past this rough patch, he will most likely make the next 24 or 30 payments on time. Which is better?
The answer is something happened that caused a financial strain, an accident or illness. The company wanted $1000 today, the customer had $800 and would have the other $200 in 3 days. They kept the car and the customer would have to pay it off if he wanted to keep it. Black and white says the company is right, gray says the customer has paid at least 24 payments of $400 per month, if he gets past this rough patch, he will most likely make the next 24 or 30 payments on time. Which is better?
April 18, 2009
I can't believe they would charge that much
One of my customers called me yesterday and was almost in tears. She had taken her to a shop to repair a non start problem. She was told the ignition switch had to be replaced, new keys and labor. Total cost $430. Mind you this is a 97 Chevy Lumina sedan with 160,000 miles. The car would only start every 10 to 15 tries. Other times nothing happened. I told her tow the car here and she did. The locksmith I deal with came by, replaced a broken wire and was paid $40 for the work. GM ignition systems of this vintage use an electronic security system to allow the car to start. The key in the switch can turn without starting the car if the security system isn't working right. Broken wires are a problem. I would hate to think how many people have been charged $400 for what really amounts to about 30-45 minutes labor if you repair the problem. 2-3 hours if you replace all the parts to new car standards, plus the cost of parts.
Which would you rather have done to your car. Our customer was ecstatic. The $400 extra was money she didn't have to spend.
Which would you rather have done to your car. Our customer was ecstatic. The $400 extra was money she didn't have to spend.
April 17, 2009
Darn Good Deals
Several weeks ago I went to a meeting of Local First Arizona . This is a group of locally owned and operated businesses that are working to promote local businesses over the big box stores. Do you like a restaurant that is the same in Phoenix as in 100 other cities across the USA? Would you rather dine at a restaurant that has good food, a unique menu and an chef/owner who cares if you like the food or not. I like to find that unusual place and rarely go to a big chain restaurant.
At this meeting I met Lee who has created a business called Darn Good Deals . She looks for unique businesses that offer good value and service and promotes them through her web site and other types of advertising.
She said that there were no car dealerships on her site. Several dealerships had wanted to be represented there, but did not live up to the standards she sets for her advertisers. The first thing she checks when looking at a business is the Better Business Bureau record. If there are too many complaints she just doesn't list the business. She was impressed when she found that we have no complaints in the last 36 months.
If you are looking for a new business to deal with, take a look at these web sites.
At this meeting I met Lee who has created a business called Darn Good Deals . She looks for unique businesses that offer good value and service and promotes them through her web site and other types of advertising.
She said that there were no car dealerships on her site. Several dealerships had wanted to be represented there, but did not live up to the standards she sets for her advertisers. The first thing she checks when looking at a business is the Better Business Bureau record. If there are too many complaints she just doesn't list the business. She was impressed when she found that we have no complaints in the last 36 months.
If you are looking for a new business to deal with, take a look at these web sites.
April 10, 2009
Contest - most referrals in April
A lot of our customers are either repeat customers or are referred by a friend or relative. Last week I spoke with a customer who has dealt with us for over 30 years. The customers doing the referring are satisfied with the product and service we have given them. In some cases they say their experience with us has been 180 degrees with the things that have happened to them at other dealerships. I have heard stories of problems that customers have had with cars purchased other places that make my hair stand on end.
The contest I spoke of is the number of referrals during the month of April. The customer who refers the most new customers will receive 50 powerball tickets. 2nd place will receive 25 tickets, 3rd place will receive 10 tickets.
One customer who had referred 3 new customers in the month of March was surprised and he now wished that he had waited for this month to send them in. I hope a deserving person wins the top prize and I also hope one of the winners does win a really big prize.
The contest I spoke of is the number of referrals during the month of April. The customer who refers the most new customers will receive 50 powerball tickets. 2nd place will receive 25 tickets, 3rd place will receive 10 tickets.
One customer who had referred 3 new customers in the month of March was surprised and he now wished that he had waited for this month to send them in. I hope a deserving person wins the top prize and I also hope one of the winners does win a really big prize.
Van Buren, is it really a bad area?
When our business was founded,Van Buren was that main highway through town. It was lit up brighter than Camelback or Bell roads are today. With the hotels, motels, restaurants and their flashing neon signs it was a great place to be. The new car dealers were centered around Central and Van Buren, so we were really in the new and used car row back then.
The neighorhood is nicer than it was a few years ago. We very rarely have any problems with vandalism or theft.
I was talking with another car dealer down the street from me. He told that potential customers would call about a car, ask some questions and sound very positive about coming to look at it. When he gave the customer the address, the customer made a remark about not wanting to come to Van Buren for a car.
I have had a few calls like that, but most of my ads list our address and many people are aware of who we are and what we do. The fact that we have had no complaints to the Better Business Bureau in their three year reporting period speaks volumes about us. The cars we sell are mostly middle of the road cars that are affordable, with a payment under $300 per month and a loan term of 24-30 months. In todays economy most people don't want to enter a contract for 6 or 7 years for a car.
Come in and take a look. I am sure you will find something that you like.
The neighorhood is nicer than it was a few years ago. We very rarely have any problems with vandalism or theft.
I was talking with another car dealer down the street from me. He told that potential customers would call about a car, ask some questions and sound very positive about coming to look at it. When he gave the customer the address, the customer made a remark about not wanting to come to Van Buren for a car.
I have had a few calls like that, but most of my ads list our address and many people are aware of who we are and what we do. The fact that we have had no complaints to the Better Business Bureau in their three year reporting period speaks volumes about us. The cars we sell are mostly middle of the road cars that are affordable, with a payment under $300 per month and a loan term of 24-30 months. In todays economy most people don't want to enter a contract for 6 or 7 years for a car.
Come in and take a look. I am sure you will find something that you like.
April 9, 2009
Customer Appreciation Day
We are preparing for our customer appreciation day which will be May 23rd this year. This is when we like to see all our friends and customers. We have food, drink, music and prizes. We also give a scholarship to a graduating high school senior who is going on to college. This student will be a relative of one of our customers. Could be son or daughter, niece or nephew or grandchild. The customer could have purchased a car to 0r more years ago and still be eligible. We have the application available at our website. Download it, fill it out and mail it or fax it to us. The deadline is April 30.
We will be giving a $100 prizt to the person who purchased a car furthest back. Several years ago we spoke with someone who bought a car in the mid 40's. The scary part was that he still was using his original drivers license that was issued back then. On the license was written good until revoked. So it didn't have an expiration date. We will look forward to seeing all of our old customers on that Saturday.
We are also working on getting a car show of sorts together. We would like to be able to display some of the cars that would have been sold here when my father started. If you drive by, you will see my 40 Studebaker President out on the front line. I have always enjoyed the older cars and feel that younger people should know a little about how cars have evolved through the years.
We will be giving a $100 prizt to the person who purchased a car furthest back. Several years ago we spoke with someone who bought a car in the mid 40's. The scary part was that he still was using his original drivers license that was issued back then. On the license was written good until revoked. So it didn't have an expiration date. We will look forward to seeing all of our old customers on that Saturday.
We are also working on getting a car show of sorts together. We would like to be able to display some of the cars that would have been sold here when my father started. If you drive by, you will see my 40 Studebaker President out on the front line. I have always enjoyed the older cars and feel that younger people should know a little about how cars have evolved through the years.
compliment
I was at auto auction earlier this week. If you have never been to one of these it is an experience that you will not believe. You are in a large barn like structure. There are lanes for the cars to go through in front of auction blocks where the auctioneer and clerks work. There is a car that is being sold in front of the auction block and up to 10 cars in line behind that car. Average time to sell a car is about 60-90 seconds.
There are from 4 to 16 lanes depending on the auction you attend. At a large auction the consignment on a given day can be 3,000 or more cars. I have gotten bidder numbers over 1800 at times. This is how many people who are there trying to buy cars. Some cars can have a huge crowd, others might only have one or two bidders.
I always talk to my friends and associates to try to gain knowledge about what is going on in their business, if it is good or bad, up or down etc. I was talking about inventory and how difficult it is to buy the nicer cars, because that is what everybody wants. This individual made an interesting comment. He said we both buy and a sell a lot of cars. You tend to buy a little bit nicer car than I do. You look a little closer at them and try to be more careful about what you buy than we do.
I thanked him for giving me a compliment. I know that when the car comes to the dealership, the fewer problems we have to correct before sale the better off we are. I would rather spend a few more dollars and buy a nicer car, rather than buy one that needs a lot of reconditioning. Sometimes when you really look at a car, once you have started fixing it, it is hard to find a place where you can say everything is fixed and the car is in good running order.
There are from 4 to 16 lanes depending on the auction you attend. At a large auction the consignment on a given day can be 3,000 or more cars. I have gotten bidder numbers over 1800 at times. This is how many people who are there trying to buy cars. Some cars can have a huge crowd, others might only have one or two bidders.
I always talk to my friends and associates to try to gain knowledge about what is going on in their business, if it is good or bad, up or down etc. I was talking about inventory and how difficult it is to buy the nicer cars, because that is what everybody wants. This individual made an interesting comment. He said we both buy and a sell a lot of cars. You tend to buy a little bit nicer car than I do. You look a little closer at them and try to be more careful about what you buy than we do.
I thanked him for giving me a compliment. I know that when the car comes to the dealership, the fewer problems we have to correct before sale the better off we are. I would rather spend a few more dollars and buy a nicer car, rather than buy one that needs a lot of reconditioning. Sometimes when you really look at a car, once you have started fixing it, it is hard to find a place where you can say everything is fixed and the car is in good running order.
Radio Show
My radio show has been off the air for several weeks. "Frank Auto Advice" is no more. The station that aired it had financial difficulties and had to go off the air. I do get calls form people who had listened to the show. They would say that they appreciated the information I gave and enjoyed listing.
Many of them have said, I am not in the market for a car right now, but when I am, I will come see you. The show was there to give information, to help the consumer and if possible help me sell a few more cars. I think it did all of those things. I will try to use this space to carry on and still give good information and try to help you the consumer.
Many of them have said, I am not in the market for a car right now, but when I am, I will come see you. The show was there to give information, to help the consumer and if possible help me sell a few more cars. I think it did all of those things. I will try to use this space to carry on and still give good information and try to help you the consumer.
Our Inventory
I was at the Auto Auction earlier this week trying to buy cars for our lot. I am befuddled by the prices the cars are bringing. It is a combination of a lot of things in the economy. New cars aren't selling well, therefore there are fewer used cars being traded in. The new car dealers are selling as many or more used cars than new cars meaning that fewer of those go to wholesalers and auctions to get to the used car dealerships.
I was talking from an out of state dealer. He was trying to buy a truckload of cars to take home with him. That's 8-10 cars that are leaving our area going somewhere else with one dealer. There are also a lot of Mexican dealers there who buy cars for export.
One of the laws of economics is supply and demand. If demand is high and supply is low, the prices increase. Right now there is a lot of competition to buy the nicer lower mileage cars that I try to stock, so I am forced to pay a higher price to have them available for sale. We will continue to give the best value possible for our customers.
I was talking from an out of state dealer. He was trying to buy a truckload of cars to take home with him. That's 8-10 cars that are leaving our area going somewhere else with one dealer. There are also a lot of Mexican dealers there who buy cars for export.
One of the laws of economics is supply and demand. If demand is high and supply is low, the prices increase. Right now there is a lot of competition to buy the nicer lower mileage cars that I try to stock, so I am forced to pay a higher price to have them available for sale. We will continue to give the best value possible for our customers.
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