Need to Know - By Mike Cotsworth
Vote to save Teen Lives…!
by Mike Cotsworth
As a carguy, and a parent, I appreciate how critical is the issue of teenage driving safety. We all hear the statistics of how many young people are killed and injured in automobile accidents. Any effort that can help protect our kids from becoming part of those statistics is worth our attention.
On September 2nd, the Town of Parker is a having a special election. The first of the two item on the ballot asks for citizen approval to allow the Parker Fire Protection District and the Miller Lifesafety Education Center to construct, operate and maintain a defensive driving training facility on approximately 2.87 acres of Town-owned land just west of Dransfelt Road. This is a no-brainer, folks. The Miller Teen safety program that will utilize that proposed facility will train and equip our kids to be safer drivers.
Driving a vehicle is a big part of most of our lives; and getting that driver’s license is a really big deal for most teenagers. Having that license is a privilege (not a right !), and with it comes tremendous responsibility. Responsibility to be a safe and sane driver certainly, but beyond that, a responsibility to be a skillful driver. Skillful not only in parking between cones and using the blinker before turning, but skillful in car control, accident avoidance, and pro-active defensive driving. Fine, you say, but just where can the new driver acquire these skills?
This is where Miller Teen Safety Program comes in. Light years beyond the typical driver education program, Miller Teen Safety Program is a comprehensive teen driver training program that gives the young teen driver the psychomotor skills and mental programming to become a more competent, skillful, responsible driver. An understanding of vehicle dynamics and experiential learning (in a controlled environment) is essential to developing real driving skills. Existing “drivers ed” programs simply don’t provide what’s needed. The Miller Teen Safety program gives teens that experience, and helps them to develop those skills.
During the “Skills Clinic” portion of the Miller Teen Safety Program, the kids perform real-life type exercises which translate immediately to situations they may well encounter on the street. This includes an accident avoidance simulator, and time on a skid pad. An integral component of the Miller Teen Safety Program philosophy is that skills are learned through repeated experience. Therefore, the driver who has “practiced” skid control on the skid pad is equipped to respond quickly, knowledgeably, and skillfully when they hit that patch of ice on I-25 !!
Most importantly, this training really works ! Both my daughters went through the training that has been integrated into the Miller Teen Safety program , and they have told me on several occasions that the skills they learned there have saved their butts out on the road. Having your child say that “the training saved my life” is a very powerful endorsement indeed !
So, return your ballot for the Parker Special Election on September 2nd, and Vote YES on Measure #1 that gives the Miller Teen Safety Program a dedicated, permanent facility, and help save teen lives
The Wonders of 0% Financing continue – is it for real…?
by Mike Cotsworth
Last Autumn, in response to the horrific events of September 11th, and the ensuing concerns about curtailed consumer spending and economic slowdown, American automakers unveiled an unprecedented program to stimulate the sales of new autos: 0% financing. The program was a terrific success, buyers responded by snapping up new vehicles at a record rate. So successful were the 0% programs that many economists credit strong automobile sales as the one factor, which propped up the entire economy in the forth quarter of 2001.
This extraordinary incentive was only suppose to last a few months, then things were to return to normal. Well, with the roller coaster ride the economy has been experiencing, carmakers have been unable to discontinue the low interest rates. In fact, the CEO of General Motors has been quoted as saying that “0% financing has saved GM from disaster”.
So, it is still blazoned across every ad, and broadcast in every commercial. “Buy a new Auto and pay 0% financing!”. Sounds good, in fact it sounds real good. Yet, coming from an industry that has made a science of misleading advertising, can it be believed…? The answer is mostly “YES”, with some caveats, and some exceptions (so, what else is new…?).
Yea, it’s for real. Yes, you can buy a new car, truck, van, or SUV for 0%. No, they haven’t increased prices to compensate for lost interest (remember, this really is unprecedented). Yes, you do need to qualify with good credit, but you don’t need super extraordinary credit (most “normal” good credit, a score of 650 or higher, will qualify). Yes, some rebates are being offered (although usually you can have either the cash rebate or the financing).
However, there are restrictions and exceptions (there’s always that fine print or rapidly spoken disclaimer at the end). The longest term of 0% being offered (60 months-5 years) is, in most cases, only available on 2002 models. This means stock on hand – no orders. Many 2003
model- year vehicles do offer 0%, but only for shorter loan terms. Some models are not eligible (usually those with special option package pricing already). The good news is that most manufactures (both Domestic and Import) offer very low rate financing (like 2.9% to 4.9%) when the 0% does not apply – these are still very good rates.
So just what does 0% mean, in terms of dollars and cents? Let’s take the “average” new vehicle sold today, at approximately $28,000 (wow – remember when the average house sold for that much…?). Assuming no money down (yes, you can do that – with good credit), and disregarding sales tax (no, you won’t be able to do that), a market-rate bank loan at 8% for 5 years would yield a monthly payment of $564, and you’d pay $5,839 of interest over the term of the loan. If you bought that same vehicle at 0%, your payments would be $467 per month for 60 months – or $97 less per month
What about leasing? These 0% programs don’t affect lease rates, but they do make financed payments competitive with lease payments. In this example, a 3-year lease based on 12,000 miles per year of use would have a payment around $450 to $480. Keeping in mind the residual value of some $15,400 that you’ll have to deal with at the end of the lease if you want to keep the vehicle, 0% financing is, once again, a really good deal!
Blizzard busting vehicles…
by Mike Cotsworth
Most of us can agree that a snowstorm, even one labeled as a blizzard, is a spectacular natural display. All that pristine whiteness is beautiful to behold – as long as you are inside, warm and cozy by the fireside with no place you have to go.
Sooner or later, you will have to venture out. Then all those tranquil musing about a winter wonderland turn to aggravation, frustration, and perhaps even sheer terror, as you have to navigate your automobile around in all that white slippery stuff. Some vehicles certainly do handle all that snow and ice better than others. Thanks to the extreme weather we’ve experienced around Colorado the past several weeks, the vehicles that have come my way have had plenty of opportunity to show off their snow skills.
Porsche Carrera Cabriolet. What did I do wrong in a previous life to get this $95,000 thoroughbred Sports GT car, with a convertible top no less, the week of a December blizzard ? Thank Heaven for good snow tires, as the Porsche really handled the snowy conditions pretty well. Yes, it’s a rear wheel drive car with 325 Horsepower, but the tiptronic automanual transmission gives you control of the legendary howling motor behind your head, the firm and responsive suspension tells the seat of your pants exactly what the car is doing, and the seat heaters in the all leather interior do their job quite nicely. The cloth top deploys quickly and easily-but not for long in 20 degree weather. The occasional patch of clear roadway confirmed that the Carrera is one very quick car ! Not the ideal winter ride, but certainly capable of handling the conditions.
Lincoln MKZ AWD. No one is quite sure what the new Lincoln model designation means, but names aside, this All Wheel Drive Lincoln is a first rate mid-sized sedan. Powered by a 263 HP Duratec V6, coupled to a 6-speed automatic transmission with traction control, the MKZ has plenty of get up and go. The AWD system delivered good traction in deep snow as the MKZ never faltered. Comfy leather seats are heated and cooled, although the cooling feature was not vigorously tested. Tasteful wood accents, a THX Audiophile stereo, and a full-feature navigation system create the luxurious environment one expects in a Lincoln. With highway mileage of 26 mpg, and a sticker of $35,640 well equipped, the MKZ offers a lot of value in what is truly a car for all seasons.
European sports cars and AWD American sedans may get you through the snow to Grandma’s house, but for confidence inspiring go-anywhere performance, the Toyota Tacoma TRD Double Cab 4x4 is hard to beat. Perhaps the Long Bed filled with snow helped the truck’s stability, but the Tacoma never exhibited any bad manners as it plowed happily ahead in the heaviest of blizzard winds and deep drifting snow. The 236 HP V6 has plenty of torque as well as highway cruising speed. For calling up the on-demand 4WD system, the electronically controlled 2 speed transfer case is a delight. Just switch to 4H as you turn into the unplowed driveway or parking lot , then switch seamlessly back to 2H as you break through onto the dry pavement – assuming you can find any. Toyota build quality and thoughtful engineering are evident throughout the Tacoma. Priced at $32,000 including the TRD Sports Package, side curtain and seat side airbags, JBL 6-CD in-dash changer with subwoofer, and the 6500 lb towing package, the 4-door Tacoma Double Cab is a comfortable, versatile and highly competent vehicle.
The Denver Auto Show – an Automotive Fashion Show…
by Mike Cotsworth
Let’s pretend it’s Spring. Despite the grey skies and fresh snow on the ground, Spring really is just around the corner. We’ve already been tempted by several of those 60 degree sunny days, those days that induce a serious case of Spring Fever. In fact, by the time you read this, Spring will have officially sprung.
To borrow from an old adage, in Spring a young man’s fancy turns to thoughts of… a new car ! So does the fancy of young women, and even those of us who aren’t so young anymore. Given these Spring-induced fancies turning to thoughts on new things automotive, what better place to see all the new offerings than at the Denver Auto Show !
Next week, starting Wednesday the 26th and running through Sunday the 30th, the Colorado Convention Center will be brimming with shinny new cars, trucks, SUVs, and vans. In addition to brand new models, like the long-awaited Dodge Challenger , Nissan GTR, and Corvette ZR-1, there will be pre-production models and factory concept cars giving us a glimpse into our automotive future. Chevrolet will tease us with the Camero Bumble Bee and the plug-in electric Volt. Ford and Dodge will roll out their 2009 pick-up trucks, and VW will wow us with their Jetta Turbo Diesel Sport Wagon.
The Denver Auto Show is a showcase for the members of the Colorado Automobile Dealers Association to strut their stuff and tempt us with all those beautiful new vehicles. The hope, of course, is to lure us into their showrooms after seeing that stunning new X-mobile that we just have to add to our personal fleet.
For the automotive consumer, whether they actually are in the market for a new vehicle, or just fantasizing, the Auto Show is an opportunity to see a myriad of vehicles all in one place. The Horsewoman who needs a new tow vehicle can wander from the Ford display to the Chevy area, and then over to Dodge to compare the newest pick-ups. Mom can check out the Import minivans versus Domestic models, while Dad lusts after Jaguar, Aston Martin, and Lamborghini. Then again, maybe it will be the other way around…
Awards are always a part of Auto Shows, and this year will be no exception. The Rocky Mountain Automotive Press, an association of working media in the Denver region, has selected their winners for Most Outstanding Vehicles for 2008 in several categories. The Award Trophies and a list of the recipients will be on display at the entrance to the Show. Check it out, and see if you agree with the winners the media-types selected.
For those of us who can't forget the Vintage cars from the last Golden Era , there will be a Classic Car exhibition featuring examples of Bentley, Mercedes-Benz, Jaguar, Corvette, and Shelby Mustang from yesteryear.
With 38 Auto Manufactures represented, and more than 500 vehicles on the floor, there will be automotive eye candy for everyone. Think of the Denver Auto Show as a Spring Fashion Show for automobiles. Bright colors, bright lights, the newest fashions, and plenty of gorgeous models…
Winter really is coming – will you keep rolling…?
by Mike Cotsworth
Global warming notwithstanding, nasty old Winter with slick and messy driving conditions is bound to show up one of these days. Are you prepared, and more appropriate to this space, is your car prepared? Besides the obvious winter automotive preparations (sufficient engine antifreeze, lots of windshield washer fluid, strong healthy battery, snow removal brush/ice scraper, flares or reflective warning triangle, extra gloves, warm blankie and survival snacks…), the single most important component on your vehicle when it comes to confidently facing Old Man Winter is TIRES. Tire technology has made tremendous advances over the past several years, and we all benefit as the results. Today you basically have three alternatives when it comes to outfitting your vehicle for winter driving conditions.
- Snow Tires – these are the old stand-by knobby-treaded monstrosities (with or without metal studs) that your Dad use to haul out and mount every Fall. They still offer excellent traction (and that’s what it’s all about), but can be noisy, hard riding on dry pavement, and definitely do not provide any kind of performance characteristics. Cost is moderate ($50 to $100), and they should last several winters. The biggest hassle is changing over every fall and spring. These tires can be mounted on just the rear of a rear-wheel drive vehicle, but should be on all four corners if your vehicle is Front Wheel Drive, 4x4, or All Wheel Drive.
- Winter Tires – These are a relatively new option, and they work great! Made with new rubber compounds, and featuring computer designed tread patterns with lots of tiny cuts (called sipes) that act like tiny suction cups, these babies are quiet, offer good performance, and are excellent in snow and ice. You want them on all four wheels with any kind of vehicle. The traction and stopping grip (especially on ice) they deliver is really amazing. Most manufactures now offer a Winter Tire, but many are a bit pricey ($80 to $150+). They can last for two to three seasons on a light vehicle, less on a heavier sedan or SUV. The good news is that after the special winter tread wears off, many become pretty decent “all season” tires.
- All Season Tires - Also known as “M&S” (no, that’s Mud & Snow, not something kinky…). These are standard issue on many new cars . They work well all year, in the wet, on dirt, and in the snow. By definition, they are a compromise. Nowadays, these tires are really pretty darn good. They offer a smooth, quiet ride, handle well, last for 30,000 to 50,000 miles, and handle most road conditions. They’ll range from $35 to $150. Best of all, you don’t need to change them every time the calendar turns over.
So, what does this all mean for you…? If you drive mostly on paved roads in the metro area, All Season tires will probably be fine for you. Upgrade to Winter tires for added security if you can afford to, and don’t mind the annual change-over. If you live or drive primarily in the mountains or in “the country”, throw on four studded snows and know you’re prepared for the worst…
Making some sense of 0% Financing – is it for real…?
by Mike Cotsworth
It’s blazoned across every ad, and broadcast in every commercial. “Buy a new Auto and pay 0% financing!”. Sounds good, in fact it sounds real good. Yet, coming from an industry that has made a science of misleading advertising, can it be believed…? The answer is mostly “YES”, with some caveats, and some exceptions (so, what else is new…?).
In response to the horrific events of September 11th, and the ensuing concerns about curtailed consumer spending and economic slowdown, American automakers unveiled an unprecedented program to stimulate the sales of new autos. Clearly some insightful marketing analyst took to heart the old adage that “desperate times need desperate measures”, and came up with a truly innovative incentive program – 0% financing !! Think about it – when is the last time you borrowed $20,000. $30,000, or even $40,000 - and paid NO INTEREST !?! What a concept. Imagine the Boardroom battles over this one between the marketing guys and the bean counters !
Yea, it’s for real. Yes, you can buy a new car, truck, van, or SUV for 0%. No, they haven’t increased prices to compensate for lost interest (remember, this really is unprecedented). No, you don’t need super extraordinary credit (most “normal” good credit will qualify). Yes, some rebates are being offered (although usually you can have the cash rebate or the financing).
However, there are restrictions and exceptions (there’s always that fine print or rapidly spoken disclaimer at the end). The longest term of 0% being offered (60 months-5 years) is, in most cases, only available on 2001 models. This means stock on hand – no orders. Many 2002
model- year vehicles do offer 0%, but only for 36 months (three years). Some models, both 2001 or 2002, are not eligible (usually those with special option package pricing already). The good news is that most manufactures (both Domestic and Import) offer very low rate financing (like .9% to 4.9%) when the 0% does not apply – these are still very good rates.
So just what does 0% mean, in terms of dollars and cents ? Let’s take the “average” new vehicle sold today, at approximately $28,000 (wow – remember when the average house sold for that much…?). Assuming no money down (yes, you can do that – with good credit), and disregarding sales tax (no, you won’t be able to do that), a market-rate bank loan at 8% for 5 years would yield a monthly payment of $564, and you’d pay $5,839 of interest over the term of the loan. If you bought that same vehicle at 0%, your payments would be $467 per month for 60 months – or $97 less per month (remember, it’s got to be a 2001). If it were a 2002 model, and you opted for 36 months of 0%, your payment would be $778 (ouch!). For comparison, buy that 2002 with “special” financing of 3.9% for 5 years, and your payment is $513.
What about leasing? These 0% programs don’t affect lease rates, but they do make financed payments competitive with lease payments. In this example, a 3 year lease based on 12,000 miles per year of use would have a payment around $450 to $480. Keeping in mind the residual value of some $15,400 that you’ll have to deal with at the end of the lease if you want to keep the vehicle, 0% financing is, once again, a really good deal!
Remember, the goal of all this was to drive buyers to showrooms, and keep vehicles moving off the lots. Well, it’s worked! Most dealerships report tremendous sales volume, and there are very few 2001 models left. That’s the bad news - if you want to take advantage of 5 year, 0% financing, and haven’t yet, you won’t have much selection. Time is also running out, these programs all end October 31st. What will happen next month? Moreover, how many potential buyers for new 2002’s opted instead to buy 2001’s because the financing savings? Time will tell, but for now, the allure of 0% financing has been a tremendously successful stimulant for buyers and carmakers alike.
Would you like Mike to help
you find your next vehicle? Through
his industry contacts and extensive resources, Mike can save you hundreds to thousands of dollars, hours of your time and make the experience fun and hassle-free. New or used, any make or model anywhere in the world. Let Mike work for you!
Interested in becoming an
automotive consultant? Mike has helped hundreds of entrepreneures around the country establish their own Automotive Consulting company. If you would like to enjoy the financial freedom, tax benefits, and satisfaction of owning your own Automotive business, contact Mike
The Rocky Mountain Automotive
Press (RMAP) is a non-profit organization for automotive journalists and other automotive industry professionals based in the Rocky Mountain region.
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