How Manufacturer’s Get Out Of Covering Recalls

Hey Cool Car Fans,

There are certain manufacturer’s that you want to lease instead of own. That is unless you have no problem writing a check for senseless repairs that are just not normal with other manufacturers. I’ve spent well over $500,000 fixing cars over the years, which is quite a bit compared to most people.

Recently, I purchased a 2012 VW Tiguan for a client with only about 38,500 miles on the vehicle.  You would think that with that few of miles that it would be in fairly good shape mechanically. I took it to the VW dealer to get a tune up prior to delivery and had it checked out. The VW dealership said there were not any serious issues and that there were no recalls for the vehicle.  A few days after I delivered it the vehicle it started to stall out on my client. This was not good and even though I had sold the vehicle “As-Is” without a warranty it just wasn’t cool that this VW was having these problems. She stalled out in the middle of an intersection, which was terrible and dangerous.

2012 VW Tiguan

I got the vehicle back and took it to another repair shop where they looked at it for about a week.  They couldn’t find a solution to the problem she was having after changing out a crank case sensor and some other possible solutions to the problem.  They reproduced the problem and after a week they thought that they had it fixed.

In the meantime, I went back to the NHTSA.gov website where recalls are listed for vehicles.  There were actually three recalls for these 2009 – 2014 vehicles.  You can see the recalls listed here and it’s very interesting how manufacturers play what I call, “the recall game” with the U.S. Government.  I’m surprised a good team of attorney’s hasn’t figured this one out yet, but hopefully they will read my article and see how it works.  Hopefully, we can get the manufacturers to comply and fix the problems they are creating for the consumer. The VW Tiguan that I delivered as a used vehicle with only 38,500 miles was having the exact same problem as 151,389 other VW Tiguan’s, but this particular VIN was excluded.

It was the same vehicle, same engine, same exact issue with the vehicle was stalling while driving, but you will notice that VW’s solution and reason for this was not even close to accurate. It’s a con-job to get out of paying for the real issue with their vehicles and paying more money for a hefty recall on hundreds of thousands of vehicles. Here’s what they state is causing the problem – ” When using winterized fuel, in certain conditions bubbles may form in the fuel system which could result in the vehicle stalling. “

That sounds so simple and friendly doesn’t it? “Why it’s just bubbles in the fuel system from winterized fuel. ” Want to know what the real problem was and the cost of the repair? Let me first tell you that I had to go back to another VW dealer and they wanted $600 to scrape carbon out of the engine from not using the Premium Fuel since it wasn’t covered under the recall. I loved that one. That definitely wasn’t the issue.

In fact, my client took it to a VW dealership in Colorado Springs and they had the vehicle there for two months. That’s right, they had her vehicle for two months to try to diagnose the problem that didn’t match their recall issue, even though the vehicle was “stalling”. They told her that they had to have a VW Engineer fly in from Germany who looked at the vehicle and determined that coolant from the radiator had leaked down the wiring harness that feeds into the ECM unit and corroded it. That’s a far cry from using the wrong fuel.

I went round and round with the technician after they quoted $3,800 to fix it and we got nowhere with VW. We contacted the VW Rep and got nowhere. I decided to go to another European vehicle mechanic I know here in Denver and told him the situation. He said it “was a known problem” with VW and their motors and engineering and that he could get a used ECM, have it reflashed, clean off the wiring harness and have it back up and running for about $1,500. Of course, my client by this time was worn out from the fiasco with VW since they had her vehicle for two months!

I couldn’t blame her and she opted for the $3,800 repair for something that should have been a recall item. I offered to pick up $2,000 of the repair bill for her, which is more than the manufacturer VW offered. I lost money getting her this vehicle, but it was pathetic how VW as a manufacturer handled this situation with their faulty engineering.

It’s pretty pathetic when The Cool Car Guy, who owns a used car dealership did more to stand behind a faulty 2012 VW Tiguan than VW did with their crappy engineering. Let me share this too about why I am calling foul on VW and their “winterized fuel” scenario for their VW Tiguan recall.

THE SAME MOTOR IS IN THEIR OTHER VEHICLES WITH THE SAME PROBLEM

Here’s an article showing that VW recalled 281,000 Passat and CC vehicles that were “stalling” and it wasn’t “winterized fuel”, but a faulty fuel pump – USATODAY.com

I used this 2012 VW Tiguan as an example for this article and obviously I was pretty ticked about how the manufacturer handled this situation with their vehicle. However, the reality is that many car manufacturers play this game with their vehicles to get out of paying for costly repairs. I’ve seen it with just about every manufacturer. It’s a shell game where they know there is a serious issue with a vehicle, but they can issue a recall for something cheaper that won’t cost as much to temporarily fix the problem. They can also exclude certain VIN’s with the real known problem and then make the customer feel like they have a problem and not their vehicle. Sometimes they will do the recall and it won’t fix the problem and the service technician’s response is “Well, the recall has been done, so we know it’s not that.” and the reality is that it never was that to begin with. It’s your word against theirs.

It’s not just recalls either. If you buy a Dodge vehicle that was previously in Canada you will not get the warranty transferred to the United States simply because it was in KM instead of miles. Which is definitely a “buyer beware” issue before you buy a Dodge to make sure it wasn’t in Canada previously.

In closing, I felt it was important to write an article about this issue because nobody is actually talking about recalls. And in fairness, many times manufacturers will actually issue recalls for the right issue as well and fix them. I’ve seen it both ways, so it’s very annoying.
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Auto Consultant – John Boyd: The Cool Car Guy
John is an auto consultant who owns CoolCarGuy.com, a licensed car dealership in Lone Tree, CO. He can help you save time and money on any make or model, new or used, lease or purchase – nationwide. Call or email John about your next vehicle! jboyd@coolcarguy.comor Twitter @coolcarguy

The Electric Vehicle Boom Is Underway

Hey Cool Car Fans,

About seven years ago a client of mine, who has way too much money and lives up in the Mountains of Colorado, told me that I should rebrand my business and just focus on electric and green vehicles. What’s ironic is that he made his millions in the oil and gas industry and actually owned an oil company at the time.

2017 Kia Soul EV

As The Cool Car Guy, I work with every make, model and type of vehicle, including hybrids and EV’s for my clients as well as tracking down a diesel pickup or a classic car. Basically, vehicles from one extreme to the other depending on what someone is looking for and if they want me to assist them in tracking it down for them. I have clients around the country who want very specific vehicles, including a used Tesla or other EV or hybrid vehicle.

Fast forward to 2018 and Tesla and other EV’s are now gaining in popularity, along with hybrid vehicles. Especially in States like California where gas prices can top $4.00 or $4.50 a gallon. This is one of the reasons why the Tesla Model 3 has been on track to be the number best selling passenger vehicle in the State of California in 2018. That just wasn’t happening seven years ago like it is today. Of course, I’m still not going to be changing me business model to exclusively being a green car only dealership.

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2017 Tesla Model S

GM is getting rid of the Chevy Volt hybrid in 2019, but it’s going to stick with the all electric Chevy Volt based on a demand for EV’s being more than the hybrid model. You have Porsche getting into the EV business to take on Tesla with their Porsche Taycan. I have at least one client who has already put money down to reserve his spot for one of these new Porsche’s. Just about every manufacturer is getting in on the EV bandwagon or going “green” with their vehicles to help reduce emissions. The reality is that the carbon footprint of most of these vehicles is not as “clean” as they are touting them to be because of how much it takes to create the batteries to run them.

Nevertheless, I don’t think that it’s the “green” factor that is driving demand for these vehicles as much as the economic factor. I’ve suggested numerous times that people are better off leasing a Tesla than buying one new or they should consider buying one used instead because of the massive depreciation. The economics that is driving the demand though is the simple fact that the cost of a gallon of gas in places like California, plus oil changes, maintenance, etc. is driving up the cost of owning a vehicle in these places. At $4 a gallon with a vehicle that gets 25 mpg it is $2,400 a year to drive 15,000 miles, which is about $200 a month for fuel, plus car payments, oil changes, maintenance, etc. An EV even if more expensive initially doesn’t have the additional costs of fuel and maintenance of a petroleum vehicle.

MORE CHOICES FOR THE ELECTRIC VEHICLE TODAY AND MORE TO COME

The electric vehicle is probably here to stay, which was a question less than a decade ago, based on the fact that so many manufacturers are now committed to building EV’s. A quick search through used vehicles available through the Manheim Dealer Auctions and there are about 219 currently available from a variety of car companies. These include the following for sale at this one dealer auction with more choices that are sure to be added each year:

  •  BMW (10)
  •  Chevrolet (18)
  •  Fiat (30)
  •  Ford (6)
  •  Hyundai (1)
  •  Kia (15)
  •  Mercedes-Benz (10)
  •  Mitsubishi (3)
  •  Nissan (68)
  •  Smart (11)
  •  Tesla (32)
  •  Toyota (6)
  •  Volkswagen (5)

We can expect more choices in the future as car companies continue to pursue offering EV’s as part of their product offering going forward. EV’s along with hybrid vehicles are going to become much more competitive and more people will be purchasing them as a cost savings alternative to petroleum based vehicles.
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Auto Consultant – John Boyd: The Cool Car Guy
John is an auto consultant who owns CoolCarGuy.com, a licensed car dealership in Lone Tree, CO. He can help you save time and money on any make or model, new or used, lease or purchase – nationwide. Call or email John about your next vehicle! jboyd@coolcarguy.comor Twitter @coolcarguy

The Honda S2000 Will Probably Become A Future Classic

Hey Cool Car Fans,

The other day someone asked me what I thought would be a good vehicle to buy today that will probably be worth more in the future as a classic car.  It had to be cool and really fun to drive and there were quite a few of them that came to mind right away.  One vehicle that I have noticed has been going up in price recently compared to what they sold for new is the iconic Honda S2000 roadster.  It was Honda’s last true sports car and a really cool one for sure.

The Honda S2000 was manufactured by Honda from 1999 to 2009 and sold worldwide.  It’s a super cool car that was one of Road & Track‘s Best All-Around Sports Cars,  I would have to agree with that assessment.  Honda created a great vehicle for the money and they ended up selling 66,547 in the United States over the decade that it was available.  That may seem like a ton of cars, but it’s really not since in 2009 there were fewer than 1,000 sold.  In 1999 there were only 3,400, so they are getting more difficult to find, especially with lower miles and in great condition.

I spotted a 2000 Honda S2000 with about 195,000 miles running through the dealer auction and it would still retail for close to $9,000 to $10,000, which seems a bit crazy.  Granted it was in excellent condition, but the original MSRP of this vehicle back in 2000 was $32,000.  The reality is that vehicles are getting more expensive on an annual basis and many people are turning to older cool cars that have already depreciated enough that they are affordable to drive.

WHAT ABOUT REPAIRS ON AN OLDER VEHICLE LIKE THIS ONE?

As The Cool Car Guy, I find cars like this for people who are into cars all the time.  It can take some time to find the right one that isn’t trashed or hasn’t been driven hard to the point that you’re going to spend a fortune in repairs.  It’s true that there are maintenance costs for some of these vehicles, but if you do the major issues such as a timing belt, water pump, brakes, tires, alignment, change the oil, etc. these vehicles can last a very long time.  As long as parts are readily available, you can usually go to an local shop and get repairs done for less.

This is another strategy to own an affordable cool car for the masses that many people often overlook. Certain vehicles hold their value much better than other vehicles.  Some vehicles you can actually drive for nearly free because of how they hold their value and appreciate after a certain time period based on supply and demand.  Of course, I can’t tell you that’s going to happen for sure, but I can tell you that I’ve done it many times.  The Honda S2000 is one of those vehicles that is unique, fun, engineered extremely well and popular enough that you can buy one at a good price and drive it for a few years and not lose a ton of money in depreciation.  The biggest challenge is just finding another buyer, but they are out there because more care enthusiasts are discovering how fun they are to own and drive.

This is a different strategy than one of my other ones where you can be driving a near new vehicle every three years and have most of the warranty in place during the time you’re driving it.  That strategy is really cool as well and it’s a great alternative to leasing.  I also have my unique CoolCarsForLife.com strategy where you can buy a vehicle like this one by borrowing against your cash value life insurance policy and paying it back on your own terms with no credit check or having the loan even hit your credit report.  If you know what you’re doing, you can do this at nearly zero net interest as a great way to fund a vehicle like this one as your daily driver or to own a fantastic future classic for Summer or warm weather driving.

Another great feature of the Honda S2000 is that after-market and OEM parts are readily available and you can still order parts from the Honda dealership as well.  There are also plenty of online forums and car clubs available for this vehicle because it’s a vehicle with a bit of a “cult” following.  Why wouldn’t it be since it’s such a cool looking car and it’s now affordable for the masses.  If you want me to track you down one like the photos in this article that I pulled out of the dealer auction website, just reach out to me through the contact form at CoolCarGuy.com.

Finally, if you want to read another perspective on why it’s a great time to look at this vehicle as a potential buyer be sure and check out the article over at TheDrive.com called Why Now Is The Time To Buy A Honda S2000.  If you decide this is a vehicle you want to own just get back with me and I’ll track it down.
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Auto Consultant – John Boyd: The Cool Car Guy
John is an auto consultant who owns CoolCarGuy.com, a licensed car dealership in Lone Tree, CO. He can help you save time and money on any make or model, new or used, lease or purchase – nationwide! Call or email John about your next vehicle! jboyd@coolcarguy.com or Twitter @coolcarguy

Richard Gere In A 1980 450SL In The Movie American Gigolo

Hey Cool Car Fans,

The other day I was cruising through Amazon television and I spot this movie American Gigolo with Richard Gere that came out back in 1980.  I remember this film because I was about 13 years old when it came out and living in Florida at the time.  Everyone was talking about this movie and what a big deal it was at the time, but I was just a kid, so what did I know.  I remembered though that the song Call Me, by the singer Blondie, came out and it was featured in the film.

I decided to watch the movie for free on Amazon and I didn’t make it very far into the film because it was really boring, but the opening scene featuring a 1980 Mercedes Benz 450 SL being driven by Richard Gere was really cool.  I’m including it in a Youtube video that I found in the post below and you can check it out for yourself and see what I mean.  You can even rent the movie on Youtube now, which you certainly couldn’t do in 1980.  If an ad pops up in the video be sure and close the ad.


This cool car back in 1980 was the bomb.  Today a new 2018 Mercedes Benz 450SL nicely equipped sells for over $100,000.  They start at an MSRP of around $88,200.

The 350SL and 450SL though from 1972 to 1980 had a unique look and body style with a 4.5l V8 engine under that hood that by 1980 with all the emissions regulations produced 160hp.  It was under powered for such a big motor and heavy car compared to one today.  It had such a cool iconic look that it was featured in this 1980 movie with Richard Gere being the American Gigolo.  I wonder if he owns one of these vehicles today?

What’s pretty amazing though is the NADA retail value on these 1980 vehicles today.  Mercedes Benz only produced about 6,000 of them a year, so it’s not like there are hundreds of thousands of these vehicles still around today.  The original MSRP was $35,839, which back in 1980 was a lot of money for a car.  Today, the retail on a 1980 Mercedes Benz 450SL ranges from $14,200 low retail to $42,200 high retail according to NADA.com.  Haggerty is not quite as aggressive and definitely more conservative, going as high as $32,100 and as low as $5,700 (good luck finding one that cheap that still runs or doesn’t need $10,000 in work).

DRIVE A CLASSIC ICONIC CAR AND DON’T WORRY ABOUT DEPRECIATION LIKE YOU HAVE IN A NEW ONE

As The Cool Car Guy, I find cars like this for people who are into cars all the time.  What’s really cool about this vehicle is that you can have me find you a 1980 Mercedes-Benz 450SL, depending on your budget, in a variety of conditions.  If you only have $10,000 to $20,000 to invest in a cool classic car consider having me track down one of these for you.   It might take some time to find the right car, but it’s worth it when you can get a vehicle that you know isn’t going to be losing money the minute you drive it off the lot.

I have written other articles talking about the benefits of going after vehicles that everyone else isn’t trying to buy.  They are harder to find sometimes.  How cool is it that a 1980 Mercedes Benz 450SL that sold new for around $35,000 is still worth more than a 2011 Toyota RAV4 that millions of people are trying to buy?

Which is one of the many reasons why I like really cool cars!

 

 

 

 

 

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Auto Consultant – John Boyd: The Cool Car Guy
John is an auto consultant who owns CoolCarGuy.com, a licensed car dealership in Lone Tree, CO. He can help you save time and money on any make or model, new or used, lease or purchase – nationwide! Call or email John about your next vehicle! jboyd@coolcarguy.com or Twitter @coolcarguy

The Fascination With The Disposable Electric Car

Hey Cool Car Fans,

It’s almost impossible to turn on the television or radio these days and not hear about Tesla and their electric vehicles or what I like to refer to as “the disposable car”. I have had so many debates with people about Tesla and my take on the electric car market that I figured I should write an article about why I feel the way that I do about the electric car market. Of course, people who like Tesla and electric vehicles are like people who were in love with Apple years ago. They had so much emotional passion that they refused to have any common sense that you could do the same thing with a Windows based machine that you could do with an Apple. It’s a similar “cult” following when it comes to Tesla.

WHY ARE ELECTRIC VEHICLES “DISPOSABLE”

First of all, it’s not just Tesla that makes electric cars. They are just the media darling and what people are most familiar with when it comes to electric vehicles. Here’s a picture of a 2015 VW E-Golf that is going for sale at auction that I pulled off the dealer auction website. The majority of people probably have no idea this car even exists or that it’s a fraction of the cost of a Tesla. It has a range of about 83 miles, so you can’t get very far on a battery charge with the VW, but other major brands have electric cars, including BMW, Nissan, Mitsubishi, Mercedes-Benz, Chevrolet, Toyota, FIAT and others.

There are plenty of options when it comes to getting an electric car, but the reason why I call them “disposable” is the same reason that Henry Ford created the Model T and won the automotive industry back in 1908. That’s 110 years ago by the way and you can go to just about any car show or parade in the United States and see a Model T that is still running down the road. It’s been “recycled” and is not disposable because it runs on gasoline and not electricity. Contrast that with the photo of this electric car pictured with Thomas Edison that you can read about at the PBS website, Timeline: History of the Electric Car.

Electric cars are super cool when they are new and shiny and the batteries are working great, but what happens when they get older and the batteries are not charging any longer? I know that people love to get lost in the ether of their imagination on what car companies will do for them down the road, but let me bring some reality to the situation. Car manufacturers are in the business of selling and leasing new cars. They are not in the business of creating batteries for your ten year old electric vehicle as much as you want them to be it’s not going to happen.  If you go to the support page of Tesla click here and see how much a replacement set of batteries are for any of their vehicles. At the time of this post, there wasn’t a link saying, “Battery Replacement” on their site. If you do a search online you will get all kinds of information from $12,000 to $28,000 to $40,000 to replace the batteries down the road.

Which is why if you’re going to get an EV you should lease it for sure because you don’t want to be the proud owner of one of these where the batteries are depleting continually.  It’s also why I call them a “disposable car”. Let’s just look at the Tesla Roadster for example that came out in 2008, so ten years ago now. It’s hard to believe it was that long ago, so Tesla has done extremely well lasting for a decade now as an electric car company.  However, eventually the batteries wear out and just like an iPhone or iPad you have to either update the batteries or sell the car for parts. It’s inevitable. It’s not like a 1908 Model T that you can get parts for and put gas in and head down the road.

WHY ARE PEOPLE FAILING TO REALIZE THE EV BUSINESS MODEL IS THE SAME AS APPLE

The Electric Vehicle business model came right out of Silicon Valley. You know, the guys who tell you that your first iPhone doesn’t work anymore or your iPhone 5c for that matter no longer accepts the latest software update, so you need an iPhone X.

That business model is the exact same as the EV business model. What’s your 10 year old computer worth? How about your 10 year old iPhone? The answer is not much or nothing at all. They are disposable products. In the meantime, you could buy a 1958 Porsche 550A Spyder for a cool $4.5 to $5 million at Gooding and Company or the Mecum or Barrett Jackson auction since they only built 39 of them and it will actually run with a tank of gas and some spark plugs. That’s not going to happen with a Tesla or any other electric vehicle ever. They are destined for the scrap heap because they are disposable cars, just like your disposable mobile phone and computer.

Which is why I’m not a fan of electric vehicles, like so many others in this industry seem to be. I like the fact that you can buy like a sweet 1958 Chevy Impala for example and drive it down the road on a tank of gas without hoping that some company from 60 years ago is still around to offer a battery upgrade to make the car actually work.

I like vehicles that you can recycle and that are not expensive disposable products. The sucker who buys that 2008 Tesla Roadster for the last time before the batteries die is like the same guy at the bottom of a pyramid scheme.  Eventually, he’s going to lose all of his money and have a nice lawn ornament or they will put it at the entrance to a junk yard as a novelty item from years gone by.
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Auto Consultant – John Boyd: The Cool Car Guy
John is an auto consultant who owns CoolCarGuy.com, a licensed car dealership in Lone Tree, CO. He can help you save time and money on any make or model, new or used, lease or purchase – nationwide! Call or email John about your next vehicle! jboyd@coolcarguy.com or Twitter @coolcarguy

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