The Wheels Show

V Shaped Recession?

2009-04-14T14:17:00.003-05:00

According to a small but growing number of economists, the economic situation could turn around much quicker than previously imagined. It may be wishful thinking, but in the current environment, I'll take a little wishful thinking when I can get it!

US Economy Could Recover Much Sooner Than Expected. You've heard all the gloom and doom. Now here's some good news: the economic recovery could happen much sooner-and be much stronger-than anyone thought possible.

Read the full article.

Preparing for a dealership visit.

2009-03-25T12:07:00.001-05:00

The key to a pleasant and successful dealership experience is preparation and making sure all of your questions are answered. To avoid dealership anxiety, come prepared with questions in mind and goals for making your visit to the dealer an enjoyable experience.

Prepare Yourself

Before visiting a dealership, schedule an appointment for immediate service.
Request that your sales consultant have several vehicles that fit your needs pulled up waiting for your arrival.
If you want to trade-in a car, bring the current loan, lease or title papers.
Dress comfortably, as you would for any shopping trip.
Be sure you've done your research: sales consultants can answer questions, but it helps if you know what to ask.

In the Showroom

Thoroughly examine the vehicle's exterior and interior in daylight or in a well-lit area. Be sure to ask yourself the following questions:

Does it fit my lifestyle?
Does the car fit me, or is it too big or small?
Is it easy to enter and exit?
Do the front and back seats feel comfortable?
Does it offer enough cargo and passenger space?
Do the interior features "feel right"; are controls where I need them?

Test Driving

We recommend you test drive a vehicle before buying no matter how others may praise it. A few notes:

Schedule a test-drive appointment.
Preferably on a Tuesday, Wednesday or Thursday when things are slow, so you get personalized attention.
Before you embark, the dealership may ask to hold or photocopy your driver's license. Some may also request other insurance or other background information.
Most dealerships require a sales consultant to accompany you. Consider this an advantage: the consultant can answer questions and demonstrate features while you drive.
Drive carefully but, where possible, tackle hills, rough surfaces, parallel parking and tight turns. Put the acceleration and brakes to the test. If possible, test drive the vehicle at highway speeds.
Use the stereo, turn on the air conditioning, and generally determine how easy it is to adjust controls while you drive. Also, check for visibility or noise issues.

By taking these factors into consideration, you'll be better prepared and more likely to have an enjoyable experience while looking for your new vehicle.

What is gap insurance?

2009-03-25T12:04:00.001-05:00

This is a question I get asked regularly, hopefully this blog will better explain the answer to this question. Gap insurance covers the difference in what your car is worth and what you may owe to a bank or lender. The best way to explain the coverage is with a real life example.

If you owe $20,000 on an existing vehicle loan, and have your car stolen or totaled, your current insurance policy may only be willing to pay $17,000 to replace it. There is a difference of $3,000 between the cars value and what your insurance company will pay. Insurance companies will look at the book value of your car, which is often much less than the loan that exists on the car. The day you drive off of the car lot with a new car, you are probably upside down on your loan (you owe more than the vehicle is worth).

In this example, if you had a loss that exceeded the cars value, you would have to either come up with the money out of pocket, or have gap insurance to cover the difference. I hope this helped answer any questions you might have. If you'd like more detail, I found this blog which shares some great information: http://www.thetaoofmakingmoney.com/2007/08/03/457.html

Senate Adds NADA-Backed Auto Incentive Amendment to Stimulus Package

2009-02-05T02:01:00.000-06:00

WASHINGTON -- NADA's grassroots lobbying campaign in support of the auto incentive amendment paid off today when the Senate, by a vote of 71-26, agreed to add the measure to the broader economic stimulus package. The amendment, offered by Sen. Barbara Mikulski (D-Md.), would make interest and sales taxes deductible for new-vehicle purchases until the end of this year.

"The dealers' voice was heard," said John McEleney, NADA chairman. "Because of dealer efforts, senators overwhelmingly voted in favor of the auto incentive amendment, which would help jump-start auto sales," added McEleney.

NADA issued a legislative call-to-action yesterday urging dealers to call their senators in support of the Mikulski amendment.

The economic stimulus package is expected to pass the Senate this week. Differences in the House and Senate versions will be worked out in a joint conference committee.

"This is a huge step in the right direction," said David Regan, NADA vice president of legislative affairs. "It's important for dealers to thank their senators for their vote on this critical amendment.

"Our next challenge will be to preserve this provision as it moves through conference negotiations," added Regan.

Source: NADA Newswire

NADA Report

2009-01-28T12:19:00.003-06:00

The National Automobile Dealers Association convention is the biggest automotive industry event of the year. It occurred this past weekend in New Orleans and was extremely interesting. According to a vendor, attendance registration has decreased from around 10,000, two years ago, to 3,500 this year. With attendance down, the overall atmosphere was completely different. The manufacturer booths were significantly smaller than in previous years. Everyone was trying to maintain cheer amidst all the bad news and it seemed like there was much focus on surviving. I managed to snag some shots of different vehicles, but there wasn't much new product on display.

I got this picture of a race inspired Toyota mobility van. It was a really cool ride. It had all the features necessary for accessible transportation, combined with great custom race inspired design.

And this Ford F-150 SVT Raptor. It'll be interesting to see what people think about this new design concept Ford is going with. You never know what people are going to love, or what's going to flop.

Hotdogs and the "Credit Crunch"

2009-01-28T12:13:00.003-06:00

A friend of mine that is a world renowned sales trainer sent me a video about selling hotdogs during a "credit crunch." The story is told by an Australian trainer, and though it's simple, it's advice all of us in the car business should be considering.

Happiness and the Infamous "Good Deal"

2009-01-18T22:15:00.004-06:00

The following is an extremely interesting video of Dan Gilbert, Harvard psychologist and author of Stumbling on Happiness. He gives great insight into the economics of a good deal and the psychology of what makes a good deal a "good deal." His auto purchase example is a great one. If you are looking for ways to become a more savvy shopper, this is as cutting edge as it gets. If it feels like he's talking about you, it's okay, you're not alone. In fact, he's definitely talking about me!

Enjoy,

Joe

Dan Gilbert Video: The Frontiers of Happiness

Oklahoma Tax Credits

2009-01-06T12:06:00.000-06:00

At The Wheels Show, we've been receiving an influx of questions regarding the Oklahoma tax breaks for alternative fuel vehicles and hybrids. Any time you're dealing with taxes, the legalese can get so thick, it's almost impossible to sort it out. So, we've decided to explain the rules in simple terms. Now, we're not attorneys or CPAs, so before making any tax decisions, consult a professional. This advice is for educational and entertainment purposes only.

Short answer, if you have invested to convert a vehicle to a fuel other than E-85 or Gasoline, you get a credit up to 50% of the cost of conversion. If you invested in a hybrid, you essentially get up to a $1500 credit.

Here's the rules as best we can decipher. On your Oklahoma tax return, there's a form to claim "other credits." It's technically known as the 511CR form. Line three of this form, entitled "Credit for Conversion of Motor Vehicles to Clean Burning Fuel or Investments in Qualified Electric Motor Vehicle Property," is where you would claim your credit. Now, the real question is, what qualifies for this credit?

Further into the form, on page 3, you will find a description of the criteria needed to qualify for the credit. It states that there is a "one-time credit allowed for the conversion of a vehicle which is propelled by gasoline or diesel to be propelled by compressed natural gas, liquefied natural gas, liquefied petroleum gas, methanol or M-85, and for investment in qualified electric property." Ethanol and E-85, the most commonly available "flexfuels" are explicitly excluded.

Now, how available and practical are these alternative fuels? There are some that are fairly available, one being compressed natural gas. We have many stations in Oklahoma, the majority of which are operated privately. There are also three public CNG fueling stations in Tulsa. The availability of factory CNG vehicles is very limited, but conversion kits are fairly available.

Liquefied petroleum, commonly know in the US as propane or LPG, has been in use in vehicles since the seventies. Internationally, it's known as Autogas. Some manufacturers build vehicles that run on autogas or a blend, but they are primarily unavailable in the US. There is a company in Oklahoma that does alternative fuel vehicle conversions. If you have one of these vehicles or would like to convert, U-Haul stores are one of the most common places to fill up on LPG. M-85 is a methanol blend that is extremely difficult to access. To convert a vehicle like these has extremely high costs, ranging thousands of dollars. These conversions typically void all manufacturer warranties.

One of the most common vehicles that qualify for the credit are hybrid vehicles. The term hybrid is a bit of a misnomer. Any vehicle that uses more than one form of propulsion is a hybrid vehicle. So, a bicycle with a sail would technically be a hybrid.

Do hybrids fall into the "qualified electric property" category? Yes, but this is where things get a bit tricky. According to Oklahoma Statutes Section 68-2357.22, qualified electric motor vehicle property applies "only to the extent of the portion of the basis of such motor vehicle which is attributable to the propulsion of the vehicle by electricity." This sounds complicated, but further down the statute it explains that in cases of "qualified electric motor vehicle property installed by the manufacturer of such motor vehicle and the taxpayer is unable or elects not to determine the exact basis which is attributable to such property, the taxpayer may claim a credit in the amount not exceeding the lesser of ten percent (10%) of the cost of the motor vehicle or One Thousand Five Hundred Dollars ($1,500)." For most consumers, this simply means an extra $1,500 from the state towards the purchase of a hybrid. Or, the state'll cover half if you convert your ole bucket to an alternative fuel, as long as the fuel's not E-85.

I hope this is helpful. I'm sure I've missed things, or if anybody has extra input, please leave a comment. Thanks for listening, and thanks for reading.