^
About a month ago, I read about a shortage of late-model, energy-efficient Toyotas, Hondas, Hyundais, Nissans, Mazdas and the like. Among the reasons for this paucity of fuel-sippers: Few people leased cars during the recession, so such cars weren't being turned in now; people kept their cars longer, meaning fewer 2- and 3-year-old autos were being traded in; fewer people bought cars at all in 2008 and 2009, so factories weren't running full-tilt.
Meanwhile, today's buyers still want these late-model, low-mileage cars.
According to the article, this low-supply-high-demand situation means that Corollas, Civics, Elantras, Priuses, Versas, etc., are fetching amazingly high trade-in values at dealerships. Dealers then quickly sell the cars at a nice profit.
There were anecdotes of people buying such cars 6, 7, 8 months ago -- before the demand got sky-high -- and then turning around this summer and selling the cars for a profit.
It's unprecedented, the article said. Even in good times, cars -- unlike houses in good times -- do not gain value. Traditionally, new cars lose 10 to 20 percent of their value the instant they are driven off the lots.
So while I read the story, I was skeptical. Cars don't appreciate.
Then I read a similar article about a week later. And then there was another a few days after that. And then another the following week. These were in trusted publications such as the Wall Street Journal and New York Times.
OK, I figured, let's give it a shot.
Those who know me know I'm a weirdo who actually enjoys the "thrill of the chase" that is car shopping. I am an extremely earnest negotiator who does significant research before I ever step foot in a dealer.
On Tuesday, I decided to see how much I could get for our 2009 Hyundai Elantra SE with 24,000 miles. My goal was to trade it in on a 2012 Hyundai Accent as part of a deal that would be so favorable, we couldn't afford not to do it.
The totally redesigned Accent has been winning rave reviews -- it's nothing like the cruddy tin-box of yore -- and it gets fine gas mileage. Dealerships are having trouble keeping them in stock; even before Accents arrive, the cars are spoken for. I thought it would be a great commuter car for my wife.
As for our Elantra ... including taxes, tags and all fees, we paid $11,650 for the 2-year-old Hyundai on New Year's Day. Now, the N.A.D.A. trade-in value for the car in "average" condition with 24,000 miles is $13,050.
Could we really drive this car for 7 months and then "earn" $1,400 by selling it? It was worth a shot.
First, I negotiated the best deal I could for the Accent, getting it for just a couple hundred bucks over invoice. Then the dealer offered me $11,000 in trade for our Elantra.
Nice try. I said I had to have the $13,050 -- which would mean $4,000 (plus taxes and various profit-guaranteeing fees) out of pocket.
After 5 minutes with his manager, the salesman came back with a $12,000 offer. My answer: Nope. Our Elantra was nice, I didn't need to trade it and, well, there are lots of other dealers in Charlotte.
After 10 minutes, the salesman came back with a "split-the-difference" offer of $12,500. My answer: "I'll take a day or two to think about it, weigh other offers and get back to you. Please bring the keys to my Elantra so I can go." I was polite but firm.
To a dealer, "I'll think about it" almost always means a lost sale. Very few people who drive away from a dealership without a new car ever come back. The salesman left again, presumably to give his manager the bad news and get me the keys to our Elantra.
Ten minutes later, the salesman returned and said: "We'll do it for the $13,050. You are getting a great deal."
Could I have done even better by going to another dealer (or threatening again to do so)? Perhaps, but I thought the transaction was fair.
I was getting a nice, safe, economical commuter car for Roberta. And we basically had been paid $1,400 for using that Elantra for seven months.
Hey, what do you know? The Legend of the Appreciating Car was true!
^
Showing posts with label Toyota Prius. Show all posts
Showing posts with label Toyota Prius. Show all posts
Wednesday, July 6, 2011
Sunday, December 26, 2010
Merry Bleepin' Crash-mas
^
My wife and I spent Christmas Eve in the hospital. And you?
First of all, we're OK. Our bodies were shaken and stirred in a car crash, and our little red Prius needs some major repairs, but we are alive and have no broken bones (that we know of).
We had gone to see Black Swan at a mall theater in northern Charlotte and were then going to dinner at P.F. Chang's. I was driving very slowly, because the mall grounds were crowded with last-minute shoppers. We were less than a football field away from Chang's when Roberta screamed: "Oh my God!" A split-second later, we were nailed on the passenger side by a Chevy pickup.
My wife's side-curtain airbag deployed and the contents of the car were sent flying. But we were wearing our seatbelts ... and we realized we were breathing and weren't bleeding. After shaking off some cobwebs for a few minutes, I opened my door and staggered unsteadily out of the car. As I tried to gather my thoughts, Roberta, who has had some surgeries to her neck and other regions, sat as still as possible.
Another person, who had witnessed the entire event, said he was a doctor. He checked on Roberta and helped me find my phone, which I used to call 9-1-1. Amazingly quickly, a police car and an ambulance were on the scene.
While paramedics tended to me -- I was feeling tingling from the left side of my neck down to my fingers -- I overheard the other driver claiming he wasn't going fast. The witness, however, disagreed, telling the driver he was "going like a bat out of hell."
Paramedics immobilized my neck and secured me to a board. Meanwhile, the police were using some kind of tool to pop open the passenger door. Soon enough, they had Roberta out and were strapping her to a board, too. The police asked me a few questions and then Roberta and I were loaded into the ambulance for our his-and-her ride. Shortly thereafter, we were at the hospital and were taken into separate rooms.
I got a CT scan to make sure I had no nerve damage. Roberta, who had pain up and down her right side, had several X-rays taken. Results of all tests, thankfully, were negative. Roberta had bruises, most notably one near her right hip, where the armrest probably made impact.
Less than three hours after we arrived at the hospital, we were cleared to go but we had to wait for a transport service to take us home. We finally made it home around 9:30 and I then called to find out where the car was towed.
It's now 48 hours later. My body is sore but I'll survive. Roberta is more sore, but she'll make it, too. We have hugged and kissed many times, realizing how lucky we were. The fact that we don't celebrate Christmas means that we at least didn't have a holiday to ruin -- yet another benefit of being Jewish!
I'll be spending the next week or more tending to this mess: dealing with insurance companies, police reports, auto-body shops, car rental agencies, etc. Though it will be a big pain in the keister, we know it could have been a lot worse.
By the way, Black Swan is highly recommended.
Oh, and we hear Mrs. Lincoln enjoyed the play, too.
^
My wife and I spent Christmas Eve in the hospital. And you?
First of all, we're OK. Our bodies were shaken and stirred in a car crash, and our little red Prius needs some major repairs, but we are alive and have no broken bones (that we know of).
We had gone to see Black Swan at a mall theater in northern Charlotte and were then going to dinner at P.F. Chang's. I was driving very slowly, because the mall grounds were crowded with last-minute shoppers. We were less than a football field away from Chang's when Roberta screamed: "Oh my God!" A split-second later, we were nailed on the passenger side by a Chevy pickup.
My wife's side-curtain airbag deployed and the contents of the car were sent flying. But we were wearing our seatbelts ... and we realized we were breathing and weren't bleeding. After shaking off some cobwebs for a few minutes, I opened my door and staggered unsteadily out of the car. As I tried to gather my thoughts, Roberta, who has had some surgeries to her neck and other regions, sat as still as possible.
Another person, who had witnessed the entire event, said he was a doctor. He checked on Roberta and helped me find my phone, which I used to call 9-1-1. Amazingly quickly, a police car and an ambulance were on the scene.
While paramedics tended to me -- I was feeling tingling from the left side of my neck down to my fingers -- I overheard the other driver claiming he wasn't going fast. The witness, however, disagreed, telling the driver he was "going like a bat out of hell."
Paramedics immobilized my neck and secured me to a board. Meanwhile, the police were using some kind of tool to pop open the passenger door. Soon enough, they had Roberta out and were strapping her to a board, too. The police asked me a few questions and then Roberta and I were loaded into the ambulance for our his-and-her ride. Shortly thereafter, we were at the hospital and were taken into separate rooms.
I got a CT scan to make sure I had no nerve damage. Roberta, who had pain up and down her right side, had several X-rays taken. Results of all tests, thankfully, were negative. Roberta had bruises, most notably one near her right hip, where the armrest probably made impact.
Less than three hours after we arrived at the hospital, we were cleared to go but we had to wait for a transport service to take us home. We finally made it home around 9:30 and I then called to find out where the car was towed.
It's now 48 hours later. My body is sore but I'll survive. Roberta is more sore, but she'll make it, too. We have hugged and kissed many times, realizing how lucky we were. The fact that we don't celebrate Christmas means that we at least didn't have a holiday to ruin -- yet another benefit of being Jewish!
I'll be spending the next week or more tending to this mess: dealing with insurance companies, police reports, auto-body shops, car rental agencies, etc. Though it will be a big pain in the keister, we know it could have been a lot worse.
By the way, Black Swan is highly recommended.
Oh, and we hear Mrs. Lincoln enjoyed the play, too.
^
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