Consider The Mileage

This might go without saying – of course the mileage will affect the car’s value. But in some cases, the mileage can be just a number. For instance, you’ll want to consider how often you intend to drive this car. Lower mileage is always better, but 100K might be more feasible than you’d think if you don’t have a long daily commute.

Next, look into the make and model of the vehicle. Some cars tend to last longer than others, with multiple variables ranging from its engine, to computer systems and many other factors. You’ll never be able to fully anticipate all potential risks, but researching the most common issues for said make and model might narrow down some of your risks.

Review Its Fuel Economy

As with the mileage, the fuel economy will be vastly more important, depending on how often you intend to drive your car. While it might sound extreme at first, the price you’re paying for fuel on a monthly basis can really add up, especially if the car lasts you for 3-5 years. Just think about an extra $20 per month in expenses for 3 years – that’s a whopping $720! Consider whether you’ll be driving more on highways or residential areas, too as this is significant for certain types of cars.

Compare The Engine Type With Your Lifestyle

Naturally, the stronger your engine, the more your car will be able to handle. But as expected, you’ll be paying a premium for better, stronger engines. So just as with the other factors, you’ll have to weigh the cost of the investment vs what you’ll really need. We’re sure you know this, but just in case… if you’re planning on towing anything, don’t skimp on the engine.

Amenities

If you think this is entirely trivial because you just want something that gets you from point a to point b, you can skip this. But having even just a few bells and whistles can really change the experience you have with your car, especially if you drive often.Think to yourself “is this something I will enjoy (or at least appreciate) for up to a few years”?

Review The Car’s History

Even the best looking cars aren’t what they appear to be. Especially if the price seems ‘too good to be true’. So before potentially making a huge money-burning mistake, take a few days and spend $39.99 on a single Carfax report.

Carfax will outline major points in the vehicle’s history, like:

• past accidents
• major mechanical work, like engine and transmission replacements
• amount of past owners
• maintenance dates and records

Consider The Style

Again, if you’re just a “point a to point b” kind of person, this shouldn’t concern you much. But for the rest of us, the kind of car we drive kind of defines us. It’s not that we won’t drive a car that’s not to our liking, but more than we’d rather not if we can spare the extra few dollars. So really think to yourself – is this a car I’ll be somewhat happy and proud to drive for the next 3-5 years?

Weigh Its Safety Features

Safety is important and while some of the highest levels of safety features found on vehicles like Volvo, you might be surprised what more economically-priced cars have to offer beyond seat belts and airbags.

Check The Car’s Insides

Did the past owner(s) upkeep the car’s interior? This is really important, especially if you’re going to be driving this car for a while. Factors like:

• maintaining leather seats
• maintaining leather seats
• maintaining leather seats
• the reception on the radio
• are all things that, at the very least impact the value and potential joy you can get out of your used car

Finally: Weigh The Total Pros and Cons

With all of these factors considered, simply weigh the potential risks and rewards. Keep in mind there’s never a guarantee when buying a used car. It keeps some people up at night, while others find it to be part of the fun!

The post 9 Things to Consider When Buying a Used Car appeared first on Koshka.

Factory Closures and Struggling Small Car Companies

As mentioned earlier, automakers were in a tight spot even before the coronavirus. Many automotive factories already had more capacity than they needed in pre-COVID times. The virus has widened this capacity even further. The silent and stock-still manufacturing spaces with minimal sales have been just a recipe for tremendous outlays faced by automakers.
Even though things are not as bleak as they were in May/June, experts believe that the nasty COVID hit will push many carmakers to shut down their underutilized auto manufacturing factories. Companies that make small cars will have to make this decision more soon because their units boast small profit margins. Companies like Renault, Fiat, SEAT (Volkswagen’s subsidiary) may have to make difficult decisions in this regard. However, there is also a silver lining for small car manufactures amid the dark clouds of financial uncertainty. Pandemic has turned social distancing into a common element of our lifestyle. Many people have well adapted to this need of the time. Since we still don’t know when the vaccine will be ready, these COVID safety protocols will remain here for some time. It is also believed that many will keep those protocols intact even after the pandemic ends. This in-the-making situation will certainly promote individual commute, which could be a game changer for small cars.

More Acquisitions and Mergers Are On the Cards

Automotive stocks have been underperforming for the last couple of years. The pandemic has pushed them to the rock bottom. The valuations across the board have been dipping, making the industry tempting for all those investors who don’t mind investing in low-valuation ventures with high-risk and nominal profits. Let’s take the example of Renault. It has experienced a more than 70% reduction in its share price in the last two years. Today, it is valued at around $6 billion, which is even lesser than the individual worth of many billionaires. Chinese investors are supposed to be more interested in buying those struggling European and American carmakers. However, the acquisitions won’t be easy due to political and diplomatic strife between countries. For instance, France has passed legislation that will make it harder to process foreign acquisitions. Germany is also expected to pass similar legislation. The trade tension between the USA and China might also fend off investors from getting into foreign car company buyouts. Nonetheless, the pandemic-driven economic turmoil may push countries not to resist foreign investment and acquisitions for job preservation and growth.
Besides buyouts and acquisitions, the abysmal balance sheet can also push struggling carmakers to do mergers. Like Volkswagen and Ford, we can see more partnerships coming along in the next few years. Car manufacturers will try to consolidate their unique strengths under one banner to turn around their financial woes.

The Future with Electric Cars

Car dealerships witnessed an interesting phenomenon at the beginning of the lockdowns. During March, when the entire European gasoline and diesel-powered car market was struggling due to plummeting sales (almost in half), the registration of electric cars spiked by over 20%. The complete lockdowns eventually hit the electric car sales too. They fell by 31% in April against the whopping 80% drop in traditional car sales. We still don’t know what instigates the hike in battery-powered cars sales and why their market didn’t get as severely affected as gas cars. However, it has become evident that the electric future is not far away. We are already closing in on 2021, and many countries have pledged to cut down their greenhouse emissions in the next few years. Therefore, governments will surely facilitate carmakers in producing more battery-powered cars. The mass production of electric vehicles perhaps also slashes their existing expensive price points. Besides environmental regulations and goals to meet, another interesting element can rev up electric car sales, i.e., changing consumer preference. This lockdown has made many people realize how tailpipe emissions contribute to environmental pollution. Social media was filled with pictures showing how lockdown has helped improve the visibility index and air quality in bustling downtowns worldwide. This real-life demonstration of a world without carbon emissions may convince more people to invest in electric cars. The rising popularity of electric cars may also encourage more auto startups to enter the market and challenge the well-established big gasoline players in the industry. The above discussion suggests that the automotive industry will continue its bumpy ride for the next few years. However, the electric turnaround changing the gasoline-driven status quo is one thing to look forward to. It may give rebirth to the automotive industry and make battery-powered vehicles a standard means of road transportation.

The post An Outlook of the Automotive Industry in the COVID and Post-COVID Era appeared first on Koshka.

Honda

Favorite Model: Honda CRV
Safety: 8
Power: 7
Efficiency: 7
Style: 8
Luxury: 6
Overall Ranking:7.2

We’re pretty big fans of Honda. They have a great lineup of practical vehicles with many great features standard. They might be a little pricier than other brands, but you’re getting more value, so give them a shot.

Hyundai

Favorite Model: Hyundai Sonata
Safety: 7
Power: 7
Efficiency: 7
Style: 7
Luxury: 6
Overall Ranking:6.8

Hyundai is another brand that provides solid value. The creator of the 10-year, 100,000 warranty builds their name for a reason and it’s because they make quality and affordable products. The one potential issue? Many of the features are no longer standard, so the price doesn’t always fit the end-line.

Kia

Favorite Model: Kia Optima
Safety: 7
Power: 6
Efficiency: 7
Style: 7
Luxury: 5
Overall Ranking:6.4

From the same makers of Hyundai, Kia offers a similar product. There are ups and downs, relative to their manufacturing counterpart and overall we agree that they’re worth looking into. They’re starting to get more into electric cars, so check that out for an affordable alternative to other brands.

Nissan

Favorite Model: Nissan Maxima
Safety: 6
Power: 6
Efficiency: 7
Style: 6
Luxury: 7
Overall Ranking:6.4

For a solid balance of nice features and good mileage, Nissan might be the best choice for you. We see Nissan as hit or miss, depending on which sales are going on, for whatever reason, it seems like they have some of the best promotions that go on.

Toyota

Favorite Model: Toyota Rav4
Safety: 7
Power: 7
Efficiency: 6
Style: 5
Luxury: 6
Overall Ranking:6.2

We believe the strength of Toyota is in their crossovers and SUVs. While their sedans are solid, we don’t think they match up to the others, so if you find a good deal, great, but otherwise suggest going with the larger models. Maybe stay away from the trucks.

Mazda

Favorite Model: Mazda6
Safety: 6
Power: 7
Efficiency: 6
Style: 8
Luxury: 7
Overall Ranking:6.8

For a few more bucks, you can size up to a more sporty look in a Mazda. They’re not as strong in varying conditions but can be great for warmer climates and have some fun features that might pique your interest. Interiors might take the cake on this list, if not, top 3.

Subaru

Favorite Model: Subaru Impreza
Safety: 8
Power: 7
Efficiency: 7
Style: 8
Luxury: 8
Overall Ranking:7.6

Subaru is a little pricier, but worth it in our opinion. You get great packages with award-winning safety features, plus the cars are known to last a long time, relative to its competition. Some of their crossovers can do pretty well offroading, just don’t get too ahead of yourself.

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Ford Motor Company

Favorite Model: Mustang
Safety: 6
Power: 8
Efficiency: 7
Style: 6
Luxury: 6
Overall Ranking: 6.6

For over 115 years, Ford has represented American-made in the factories and on the road. Their cars have evolved as much as any, ranging from heavy-duty trucks to hybrid sedans and high-end sports cars. While they may have improved over the years, Ford vehicles are known to break down more than others, though their trucks are very respected. With that said, your choice in brand should depend on what you need in your car.

Chevrolet

Favorite Model: Corvette
Safety: 6
Power: 7
Efficiency: 7
Style: 6
Luxury: 7
Overall Ranking: 6.6

When we think of Chevy, we think of variety. They have a range of muscle cars, trucks, smart cars, SUVs and sports vehicles large enough to pique someone’s interest. The main perk would be having a strong, sustainable engine, however, most models don’t come with a competitive amount of features standard.

Chrysler

Favorite Model: Chrysler 300
Safety: 7
Power: 7
Efficiency: 6
Style: 7
Luxury: 7
Overall Ranking: 6.8

We’re a fan of Chrysler in the sense that it offers a good level of luxury at a relatively reasonable price. The power is a nice touch, but efficiency in certain areas is touchy. Other than the 300 model, we would recommend the vans, like Town and Country, otherwise might suggest something else.

Dodge

Favorite Model: Dodge Durango
Safety: 5
Power: 9
Efficiency: 5
Style: 6
Luxury: 6
Overall Ranking: 6.2

You can get a lot of power with just about all Dodge vehicles, but they tend to lack in other areas. Off-roading isn’t exactly their strong suit and additional features can lead to an expensive car or truck. Most people get Dodge for the name.

Cadillac

Favorite Model: Cadillac CTS
Safety: 7
Power: 7
Efficiency: 8
Style: 9
Luxury: 9
Overall Ranking: 8.0

We see Cadillac as the king of American luxury and for good reason. They offer stunning features and provide a strong balance of drivability and style. They’re more money than most brands on this list, but for good reason.

Tesla

Favorite Model: Model S
Safety: 8
Power: 8
Efficiency: 10
Style: 8
Luxury: 8
Overall Ranking: 8.4

Teslas have become a driving force in electric vehicles and have taken the tech world by storm. With their full touch screen dashboards and top-of-class acceleration, it’s no mystery as to why they’ve become so popular. However, much of that depends on how accessible charging stations are in your area, so do your research on those first.

Lincoln

Favorite Model: Lincoln Navigator
Safety: 8
Power: 7
Efficiency: 6
Style: 8
Luxury: 8
Overall Ranking: 7.4

Lincolns are nice vehicles that are great for long trips. With steady power and nice interiors around the board, they certainly have their perks, but tend to lack efficiency and can get a little pricey for what you’re getting.

https://www.jeep.com/

Favorite Model: Jeep Cherokee
Safety: 8
Power: 8
Efficiency: 6
Style: 7
Luxury: 7
Overall Ranking: 7.2

Most people know what they’re getting with a Jeep. Nice features and excellent off-roading vehicles (great for the summer), but are notorious for getting sub-par gas mileage. We’re also not huge on the design of them, but overall very nice cars.

The post Which American Car Brand Is Best? appeared first on Koshka.

It is not the first time a major corporation has been closely associated with one person. There have been many precedents. A decade ago, Howard Schultz returned to Starbucks (the company he had led to major achievement) when his successor took the multinational brand to the brink of extinction. Policies Schultz presumably cast in stone had been discarded as executives eager to create their legacy overextended the brand’s reach. Starbucks exponential growth spawned the observation/joke that there was a Starbucks on every corner. Despite a dismal ROI, Starbucks stores proliferated like bunnies until the economic downturn of 2008 all but shuttered the chain. On the brink of bankruptcy, Starbuck’s board returned to the past to find its future and reinstated Howard Schultz as CEO.

Schultz returned to perform necessary housekeeping. He closed thousands of stores, and reined in the product lines which now included a line of less than popular ice creams (but they were delicious). Schultz refocused the business away from self gain to selflessness. The customer and the grower/suppliers were to be treated like gold, because they were the heart and soul of the Starbucks enterprise. A less dilute product line starring, would you believe, coffee was instituted. In addition, Starbucks initiated the paradigm shift towards providing superior customer service. Slowly, then in legions, customers came back.

Reboot What Worked

Customers returned to environments that were spotless, and ideal for socializing. The stores were now gathering places where everyone would be welcomed and treated as individuals with each and every beverage hand crafted one at a time. And what beverages they were! Exotic coffees were sourced across the globe and their growers were paid fairly. The massive, espresso machines with their precise, chrome-plated gauges cost if not a king’s ransom, then more than anyone’s first car. Attention was paid to the last little detail, and every customer complaint was addressed immediately. Within a year Starbucks stock had recovered, realizing gains of 143% YoY in 2009.

Schultz stayed on through 2017, but shortly after he passed the baton yet again, a racial bias incident once more caused consumers to question the brand’s sincerity. Following the public’s outcry, it was Schultz, not CEO Kevin Johnson, who appeared at a press conference to both apologize and set out steps to remediate bias across the chain. Schultz mandated that all the stores be closed for a day and the staffers ‘retrained’ to become aware of and sensitive to ‘unconscious bias’. He may not punch a clock, but to many Starbucks loyalists, Howard Schultz is Starbucks.

Did you think we were straying off point? The point is that Elon Musk is Tesla, Tesla is Elon Musk. This past week Musk agreed to step down as Tesla’s Chairman, yet is allowed to remain as the Company’s CEO. For those readers who are unaware, Musk was fined $40 million by the Securities and Exchange Commission (SEC) for a Tweet (yes, you heard right) that stated he was taking the company private and had the funding to buy out stockholders at $420 a share. When in fact, there were no plans in place, no investors, and no funding to buy out anybody. Both sides reached an agreement for Tesla/Musk to pay the fine but not admit wrong doing. This move ensured that Tesla stock, which dropped a significant 14% after the announcement, would eventually rally, and in effect, “the farm would be saved”.
Maybe Not Such a Bad Move…

As with Starbucks, Tesla Motors has had to step back from the way it performs daily operations, take a deep breath, and regroup- for now. Also as in the Starbucks scenario, Tesla had been teetering on the edge of the precipice for some time. The firm has not made a dime in 15 years, despite Musk’s repeated insistence that it is on the verge of doing so. This could actually be true in the near future. Across the globe there is keen interest in Musk’s Tesla Model 3 sedan, an electric car for the masses. Unlike Starbucks, however, where Schultz is the mastermind who guides and directs his former enterprise to greater success, Musk’s genius needs to be reined in at times. He is idea, not process-driven, and employs any means to achieve his intended end. Some of his upstart ideas, such as announcing what was essentially a hoax buyout, will not fly with the U.S. government not the SEC. And, for the public to buy the Model 3, first there must be a Model 3 in production. In short, the fines were seen as essentially a move to harness Elon Musk and to save him from himself. Don Quixote-like, the man does appear to tilt at windmills.

What happens next at Tesla Motors? Still in the picture at Tesla (he is the majority stockholder), but moved to the background, Musk is free to settle any stockholder lawsuits resulting from his Tweet. If this allows him any free time, he can continue to commandeer his vast technological empire, dividing his time between Tesla and SpaceX, his San Francisco Bay area enterprise which designs, produces, and launches rockets and spacecraft. Its goal? To enable people to ultimately reach and live on other planets. Clearly, Mr. Musk is not the entrepreneur next door. Back at Tesla, the goal for all concerned is for the Model 3s to roll off the assembly lines sometime in 2019. For a few years now,there have been charging stations at Interstate rest stops bearing the name ‘Tesla”. However this author has not yet observed a line of cars waiting for their turn to recharge.

Tesla always seems to be a company poised on the brink. From electric vehicles, and driverless cars, to SpaceX’s rockets to Mars, Elon Musk’s mind appears so diversified, that his two enterprises suffer. We propose that he continues as the resident genius at both or either, and allows new management to direct ONE project to completion. This way the enterprises associated with Elon Musk would leave the world of Buck Rogers and enter the stratosphere that the rest of us occupy daily: reality. If it takes a staggeringly high fine to mandate him to put on the brakes, then so be it. As for moi, I’m living for the day I can pull off I-95 and recharge my Model 3 -at a Tesla station of course!

The post Will Tesla Survive Elon Musk’s ‘Departure’? appeared first on Koshka.

Whereas up until 2007 (the year before the economic crisis), a number of high-powered sports models made the top sellers list, this year, to date, the entries are serviceable vehicles. These range from true economy models, (the Honda Civic), to the Ram, F-Series, and Silverado trucks the currently favored commercial vehicles. Not a single electric car, nor a luxury model has made the top 15 of 2018 to date. Without further fanfare, at mid-year, here are the top selling cars of 2018, and the numbers sold to date:

1. Toyota Tacoma: 53,779
2. Jeep Wrangler: 55,504
3. Nissan Sentra: 60,002
4. Honda Accord: 61,601
5. Ford Explorer: 52,804
6. Nissan Altima: 63,406
7. Ford Escape: 67,350
8. Honda CRV: 82,046
9. Honda Civic: 82,149
10. Honda Civic: 82,398
11. Honda Civic: 90,767
12. Ram Truck: 103,964
13. Nissan Rogue: 116,454
14. Chevy Silverado: 135,545
15. Ford F-Series: 214,191

Some of the innovations that are prompting buyers to fork over their hard-earned dollars include, back-up cameras, superior sound systems by Bose and other top audio manufacturers, and luxurious interiors including leather seating, even in popular-priced models. Over the past twenty years all our lives have been influenced by the internet. Automakers have embraced connectivity as a means to keep our online-directed lives on track, even when we commute. This functionality can be carried to extremes, however, evidenced by Land Rover’s app which enables users to raise and lower all but the driver’s seat via cell phone. Still other amenities which close the sale for many buyers are once-high end only options, such as all-wheel drive, now standard on many entry-level and mid-range lines.
More Buying Options Than Ever Before

Another reason for buyer confusion is the more expansive array of models, let alone buying options they face when considering a new ride. A decade ago one could purchase a new or used vehicle from a dealership, run the VIN and see if a vehicle had been in any accidents. Today, prospects know to ask the dealer for individual vehicle history reports like CarFax, or Car Guru, producing these documents has become requisite at most resellers. Another option for locating a reliable used car had been to peruse the classified ads in community or local newspapers hoping for a bargain. These ads are fewer and far between now as many older vehicles remain in the family, handed down to college-age children, or become commuter cars.

Car owners looking to upgrade or downsize today are face with choices that did not exist in their price range when they went car shopping previously. Since that time, reliable electric, hybrid, and crossover vehicles have entered the mass marketplace. Luxury marques such as BMW and Mercedes Benz, even Tesla now produce entry-level vehicles with an under $40K base sticker. Another consideration for today’s car buyers is the multiple driver car. At first they may be the sole driver, but during the course of ownership, the new vehicle will become the car that their children drive/own for the remainder of its service life.

In the end, every car-buying decision comes down to receiving the biggest bang for the buck, whatever the budget. Will the sluggish 2018 car sales metric recover? Possibly. The current model year vehicles are offered at reduced prices beginning in mid-May to make room for the following year models, which debut in September. Only a few years ago, these reductions began in July, and dealer lots were empty by late August. The strength of automakers’ marketing and promotions will determine the 2018 sales outcome for the remaining months. One such option is to extend the sales season, offering the best prices up front, not when only the less desirable models are left. Also to utilize online marketing strategies such as website-based promotions, email marketing, and social media campaigns that target specific demographics using peer recommendations to drive last-minute sales.

In 2018, the need for a new/used car will be supported by how affordable dealers and automakers make their varied options, as well as how each is presented to the buying public. This year, and going forward, driving (pun intended) home the concept of value to cash-strapped consumers via social media and other online outlets they have come to trust, will most likely seal the deal and influence more sales than TV and print ads alone. We’ll recap first quarter 2019 and see!

The post Mid-Year 2018: What Cars are Hot, What Cars are Not, and Why appeared first on Koshka.

Named for the elusive, eccentric Serbian inventor, Nikola Tesla, readers may be surprised to learn that the company was not founded by its current, high-profile CEO, Elon Musk. Instead, the organization was originally founded in 2003 and financed by Martin Eberhard and Marc Tarpenning. These men saw an opportunity to launch a successful electric car company after GM recalled its entire unsold electric car output and destroyed them. Musk took over in 2008 with the goal to create affordable mass-market electric vehicles. His strategy to infiltrate the consumer market was to first produce commercial electric vehicles, then high-end sports cars, finally rolling out affordable sedans and compacts to appeal to the mass market.

Musk has flourished in his role as Tesla Motor’s guide overseeing Operations on a day-to-day basis. The firm’s first public stock offering, brought out in 2010 was for $17 per share. At today’s closing, Tesla Motors stock sold for $355 per share. Another first, most automotive manufacturers gladly accepted the U.S. Government’s bailout funding as part of 2009’s economic stimulus package. However, only Tesla Motors fully repaid the loan in May, 2013. Throughout the years, the automaker has repeatedly drawn fire for its maverick ways of raising funding to finance production and to pay off existing loans. Which brings us to the present.

Employee Sabotage Halts Production

In that weekend late-night email, Musk stated that in response to not receiving a wanted promotion, an Operations-based staffer confessed to having “sabotaged” the output at the company’s Freemont California plant. Specifically the employee altered the computer code that governed the company’s manufacturing operating system. This system was then hacked, and that several gigabytes of company-private data were (presumably) exported to unknown third parties not in Musk’s employ. The scheme was carefully devised so that the hacking software was operating on three separate computer systems assigned to other individuals at Tesla. This action would serve two purposes: to ensure that data would continue to be exported even after the hacker left the company, and to erroneously implicate those individuals. In addition, Musk stated that ‘false claims were made to the media.’

Musk’s email read in part, “There are a long list of organizations that want Tesla to die,” Musk wrote. “These include Wall Street short-sellers, who have already lost billions of dollars and stand to lose a lot more. Then there are the oil and gas companies, the wealthiest industries in the world — they don’t love the idea of Tesla advancing the progress of solar power and electric cars. Don’t want to blow your mind, but rumor has it that those companies are sometimes not super nice. Then there are the multitude of big gas/diesel car company competitors. If they’re willing to cheat so much about emissions, maybe they’re willing to cheat in other ways?”

In addition on Sunday night production of Model 3s was halted by a small fire, whose cause has not been determined. Asked if the fire and computer sabotage were related, Musk quoted Intel’s former CEO by stating, “Only the Paranoid survive.” He then asked his staffers to be vigilant about any activities that “…are not in the best interests of our company.”

Please note that the need to for Tesla Motors to produce 5,000 units a week is not entirely in response to the public’s demand for the Tesla Model 3. Rather, producing and selling 5K units a week is said to keep Musk’s automotive division from going under. Also note that Musk’s varied enterprises each have a history of teetering on the brink of failure, and Musk’s strategies including investing his own money to purchase his companies’ stock have been implemented with success.

Another view of the latest Model 3 production delay is that Musk’s enterprises thrive on media attention. After all, everyone roots for the underdog. Therefore the public will likely rush to support Musk in his endeavour to produce an affordable electric car, no matter how long the delay. So, despite detractors in the form of internal hackers, possible arsonists, stockbrokers, yellow journalists, et.al., the Model 3 seems to be on track to defy the odds yet again, and to make Musk’s automotive empire profitable- someday. As a man who earned and lost fortunes, as well as weathered many affronts from competitors and the media, Nikola Tesla would be justly proud.

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