POWER OF TWINS

In this trying, uncertain economy, purchases large and small need to be carefully evaluated and scrutinized. Only the essentials become a buy. This is especially true with a big ticket item like a car or a truck. Ask any auto dealer. Now more than ever, buying a vehicle requires a well thought out process; extensive research, and wise decision making. While now is a good time to buy with some real deals available (see previous blog, LET’S MAKE A DEAL), it is also a time to be smart. No buying of a status symbol to impress the neighbors, no impulse purchases. Thrift and common sense is king. This is the time to take advantage of the dollar cost savings delivered by the POWER OF TWINS.

Twins are vehicles from separate brands that share platforms, engines and major components. Product is shared to keep design and manufacturing costs down, with the goal of increasing profits for each of the companies. Some twins are sold through a different brand within the same manufacturer (Ford & Mercury); others are available through a competitor (Pontiac Vibe & Toyota Matrix). Usually the vehicles’ interior and exterior styling designs differ, while the engine and suspension are nearly the same.

One brand of the twins may include a lot of bells and whistles at a higher price. The other may provide a more expansive option list for the buyer to choose items individually. One may have a longer running, more comprehensive warranty, and may appear to bring a higher resale value with less initial depreciation. The other twin may be able to save you a lot of money now. Generous incentives may apply to one, and not the other. A personal consideration, you may find that you like one twin’s dealer better than the other. These are all factors to consider. At stake, deciding which twin to buy could save you thousands of dollars.

Manufacturers have shared their designs and hardware for years producing twins. Mercury is Ford, but has traditionally included more standard options. A little more flash, for more money. For years, the Ford Thunderbird was essentially the Mercury Cougar. Now, the buyer can choose between the Ford Explorer ($26,495) & Mercury Mountaineer ($26,800), the Ford Escape ($19,140) & Mercury Mariner ($21,540), and the Ford Fusion ($18,135) & Mercury Milan ($19,095)*. Each of them twins. The separate product lines allow for an expanded dealer network, and more profits for the parent company. The downside is in this difficult economy, dealers are competing with each other. For you as the buyer, it gives you more choices, and bargaining power.

The many brands of General Motors have always shared amongst twins, producing essentially the same vehicles under different brands for many different prices. GMC has traditionally been the rougher version of the more domesticated Chevy truck. Buick is perceived as the luxury sibling of Chevrolet, while Pontiac is the sportier treatment. Some twin GM choices include: Chevrolet Trailblazer ($27,745) & GMC Envoy ($27,980); Chevrolet Impala ($21,975) & Pontiac Grand Prix ($22,210) & Buick LaCrosse ($24,250); Saturn Outlook ($28,625) & GMC Acadia ($30,140) & Buick Enclave ($33,220). My personal favorite is the Pontiac Solstice ($22,455) & Saturn Sky ($25,855). All are twins, all are priced quite differently.

Chrysler is considered the luxury, more expensive brand, while Dodge is the performance choice, and depending on options, generally costs less. The Chrysler Town & Country minivan ($23,415) is a plusher version of the Dodge Grand Caravan ($22,520). Compare Dodge Avenger ($19,640) & the Chrysler Sebring ($19,840), along with the Dodge Durango ($27,335) & Chrysler Aspen ($32,905). They are all Chryslers, but with interesting differences in price.

The foreign manufacturers also provide the buyer twin choices, sometimes at considerable dollar savings. Look at the difference between the Honda Pilot ($27,595) & the Acura MDX ($40,195), along with the Nissan 350Z ($28,510) & Infiniti G37 ($34,900). Is the name plate worth the extra dollars? The power of twins even crosses between domestic and foreign lines with the Pontiac Vibe ($16,855) & Toyota Matrix ($15,510); and the Ford Fusion ($18,135) & Mazda 6 ($19,140).

While it is generally true that you get what you pay for, with a little research and soul searching, you may find that you do not need all of those options, as well as paying a premium for just a name. Do you really need a Lexus to impress, or is a Toyota Camry with similar options going to satisfy you? With a little humility and common sense, you could save thousands on the purchase price, not to mention the excise tax and insurance. Those dollars saved can buy a lot of gas. Do your research, and ask yourself honestly, "What do you really need?" Then, use the POWER OF TWINS for a smart purchase.

*All prices listed are for Base 2008 models.

LET’S MAKE A DEAL

A primary principle of investing is, “Buy low, sell high.” It is basic, common sense. With today’s economy, other phrases come to mind: “It’s darkest before the dawn”; “Buying opportunity”; “Buy when it seems the bleakest”. Such advice is hard to follow when the stock market is tumbling, the housing crisis continues to mushroom, layoffs are in the news daily, and everyone talks doom and gloom. With all of this negative karma, it takes a strong individual to be a contrarian; buy for the future, by buying during the worst of times. But history shows that a wise, disciplined investor should do just that, despite the adversity. This also holds true with buying a vehicle.

Now is the best time in years to buy a new ride. Traditionally, this time of year is a good time to buy anyway. As summer fades, so does the current model year. Manufacturers and dealers want the old models off the lots to make room for the new. Also, as winter approaches, buyers are hesitant to subject a new car to ice and snow, often choosing to hold off on a purchase until spring. As a result, aggressive incentives are marketed to overcome reluctance, and move last year’s vehicles.

The escalation of gas prices has helped to make this a perfect time to buy. Overnight, buyers deserted the gas guzzling SUV’s and pickup trucks, replacing them with anything green. It is now difficult to buy a compact car, and nearly impossible to find a Prius or other hybrids, without a long wait and paying a premium. Meanwhile, dealers’ lots are overflowing with fleets of pick-ups, SUV’s, minivans, and some very attractive crossovers. All of these vehicles are now available at bargain basement prices. Check the papers, television ads, or maineautomall.com: a new Mustang for only $14,995; a Ford Edge with an MSRP of 26,035, selling for $19,745; trucks of all shapes and sizes for thousands off of the sticker prices. No matter what type of vehicle you might be interested in, dealers do not want you to leave the showroom empty handed. Auto dealers have never wanted, or needed, your business more than they do now. Now is the perfect time to buy.

The down turn in the economy scared the consumer. Suddenly they stopped spending. Vehicles continued to come off the assembly lines in droves. Manufacturers eventually slowed their production, but not before inventories were at record levels. Meanwhile, the housing crisis worsened. Banks and lending institutions lost millions. Their restructuring has now begun. For them to recover, they want to loan you money. In fact, to survive, they must loan you money. The Fed did their part, and responded to the impending economic doom by lowering interest rates several times. This year, in particular, is the best time to buy. Inventories are high, interest rates are low, and dealers want to deal.

Another reason to buy now is that never before has there been a better selection of well designed, quality choices available to the consumer. Both domestic and foreign manufacturers are now making great vehicles. The Ford Flex, an alternative to an SUV, is just now available, receiving glowing reviews. Ford knows that the buyer will be reluctant to buy a large vehicle, but Ford must succeed with its launch. They will do whatever it takes for it to sell. Deals will be made. Similarly, the “new” Chrysler must succeed with its recent crossover entry, the interesting Dodge Journey. Deals! General Motors’ economic challenges are in the news daily. For GM to recover, they must sell vehicles. The newly revamped Saturn line is ready for delivery at attractive prices. The Japanese auto makers are not immune. Overall, Toyota’s sales are down. Even sales of the seemingly invincible Honda CRV are off. Deals must, and will be made.

For any, or all of these reasons, if you are entertaining even the slightest notion of buying a new vehicle, any vehicle, now is your absolute best time in years to buy. Be a disciplined, wise contrarian, and lead the economic recovery. By the time that your neighbor feels better about his economic future, the deals will be gone and the dealers may not be quite as friendly. Buy now, and invest the savings for your future.

MINIVAN: Dead or Alive?

When it comes to naming the founding fathers of the automobile industry, one might think of Henry Ford, Karl Benz and Enzo Ferrari, but then the more contemporary names of Carroll Shelby, John DeLorean and Lee Iacocca come to mind. Iacocca is known for changing the industry forever with his creation of the Ford Mustang, as well as rescuing Chrysler from near extinction in the late 1970’s. He continued to revitalize Chrysler through the 1980’s by bringing to market the K-Cars, the Dodge Omni/Plymouth Horizon, acquiring AMC with its valuable Jeep brand, and most importantly, introducing the world to the minivan.

The minivan was a stroke of genius, a pioneering replacement to the frumpy family station wagon. Here was a vehicle that could comfortably seat 7 people, had the valuable traction of front wheel drive, and plenty of room for “stuff” that could be easily loaded in through its large sliding side door. Born during the energy crisis, it was even somewhat fuel efficient compared to other vehicles of the time. America’s car buyers responded with record sales, as did all of the other domestic and foreign manufacturers. Every brand designed their own version of the minivan…and the soccer mom was born.

Trends in the auto industry ebb and flow as the buyers’ tastes change. Suddenly, despite it functionality, the minivan was not cool anymore. Auto buyers found that it was necessary to address traffic in an assault vehicle with four wheel drive, essential to survival in the urban jungles. The SUV was quickly in vogue. As tastes change, so does the economy. The SUV is now nearly dead due to gas prices. Even its replacement, the crossover (CUV), is less attractive in favor of other, more fuel efficient choices.

But is the minivan dead? On the surface it might seem so. GM and Ford have given up their minivans completely. Even Chrysler, the vehicle’s creator, is scaling back its minivan production. Sales this year of the Chrysler Town & Country is down 13%, while its Dodge Grand Caravan is down a whopping 35%. Whether it is due to high gas prices, stiff competition, or the change in buyers’ tastes (all of the above?), the lack of sales is forcing Chrysler to shut down one of its key minivan assembly plants.

Regardless, all of the reasons for Lee Iacocca’s original design and subsequent success are still valid today. Families still need to shuttle kids, groceries and soccer balls. It still snows in Maine, so the traction and simplicity of front wheel drive still makes sense. Weekend warriors still need to remove seats to make room for a visit to Home Depot. Drivers still like the added visibility of elevated seating. These are the reasons why the minivan was, and still is, a great design.

My family recently made the trek from Maine to Brooklyn, New York to embark on a 9 day Caribbean cruise. Staying with relatives on Long Island, my brother-in-law graciously agreed to drive us in our Ford Windstar minivan to the cruise ship terminal. Packed to the gills with 4 people, 13 pieces of luggage and our guest driver, the van navigated effortlessly the chaos of New York City traffic, pot holes and all. Then, the value of the minivan truly shined as we faced the challenge of frantically unloading at the ship. Amongst the maze of limousines, taxis and shouting porters, the tailgate opened, the sliding doors slid, and in a flash, all of the gear and passengers were out in a matter of moments. Let’s see an SUV/CUV do that without bumped foreheads and a few expletives from aggravated New York cab drivers.

Frumpy image or not, the original design concept of the minivan still makes sense. Its versatility continues to prove itself repeatedly to this driver. That day in Brooklyn reminded me of just how much it really can deliver. The minivan: not quite dead in my book.

ON THE ROAD: Malibu & Silverado

I was lucky enough during a recent television commercial shoot to be able to check out two Chevrolet products for 2008 first hand, the new Malibu and the Extended Cab Silverado*. I was pleasantly surprised by the build quality and feel of both. The days of rattles, moans and groans from a GM product are now in the past.

MALIBU LS

The moment I entered the Chevy Malibu LS, I was impressed how quiet the cabin was while the engine was running. With acceleration, there was a pleasing swish of air and engine with very little rumble of last winter’s pot holes and jagged railroad tracks making it to the cabin. The more I drove over a variety of surfaces and conditions, the more the Malibu’s solid construction and integrity became evident. Smooth handling and a great suspension for most conditions. No wonder this redesigned Malibu is in such high demand. The 2.4 liter, 4 cylinder, engine seemed to be willing to do what I asked it to, without any protest or hesitation. Of course, as with any car, a 6 cylinder would have been even more fun.

However, all was not perfect with the Malibu. My first impression of the quality of the dash plastic was that it did not dazzle me, but this seemed less noticeable as time passed. A source of discomfort for me was the odd placement of certain interior controls. Maybe it was because I was new to Chevrolet, but some of them did not make sense. The remote for the powered side mirrors is mounted higher up on the “A” pillar than other cars; too high for easy access while driving which could become a distraction. Also, the climate and the radio controls took me awhile to decipher. No longer new to Chevrolet, now I know.

After several pleasant hours working with the Malibu, it is easy to see why Chevrolet has nearly sold out of this year’s inventory. Who would have thought that the makers of the Vega and Citation would create such a gem? We all learn from our mistakes.

STATS: Malibu LS

4 Cylinder, 2.4 Liter, 169 hp, FWD

Seats: 5

Luggage Capacity: 15.1 cu. ft.

Fuel Tank: 16 gal.

EPA Mileage City/Highway: 22 mpg/30 mpg

Range City/Highway: 352 miles, 480 miles

SILVERADO 1500 (Extended Cab)

I am not a truck guy. I am much more comfortable in a tight performance car, zipping around a corner, testing g-forces and the laws of physics. The floating, rolling feel of a behemoth such as this, is not my idea of driving fun. But, after overcoming the initial shock of parking, this Silverado turned out to be a rather nice place to spend a day.

The first noticeable impression of this Extended Cab Silverado was the nice throaty exhaust note upon start-up. Its pitch changed nicely with acceleration, and varied its note throughout its moves. I found the Silverado to have a great suspension whether on the interstate highway, or lumbering over hilly, off-road terrain overlooking the rocky coast of Maine. The cab was quiet and comfortable, especially for a truck. With clear visibility on all sides, navigating the Silverado was surprisingly easy; although I did appreciate a spotter as we positioned the truck on the edge of a wharf in Freeport, then next to a 10 foot plunge into the ocean in Cape Elizabeth. As with any large vehicle, it is difficult to judge clearance as the driver maneuvers around low obstacles. This one is better than some that I have driven.

Thanks to my time in the Malibu, I was more comfortable with the Chevrolet controls and their placement, even though some of them still did not make sense. By the end of our day, I even had the XM radio mastered, a nice luxury for a truck or a car. The Silverado has plenty of room in the second row for kids and/or cargo, genuinely turning a utility vehicle into a family source of transportation. This truck certainly has adapted well to family life. Too bad its mileage figures will continue to stunt its growth.

STATS: Silverado 1500, 4 Door Extended Cab

V8, 4.8 Liter, 295 hp, 4WD

Seats: 6

Towing Capacity: 8500 lbs.

Fuel Tank: 26 gal.

EPA Mileage City/Highway: 14 mpg/18 mpg

Range City/Highway: 364 miles, 468 miles

CONCLUSION

Chevrolet has raised the competitive bar with two very nice designs in both the new Malibu and the Silverado. With various strikes and contract negotiations behind them, it should be full steam ahead for these two Chevys. Now that we are in the Chevy mood, maybe a test drive in the new Corvette Z6 is a good idea. Now that’s a Chevrolet!

*Thanks to Quirk Chevrolet and Pape Chevrolet for their assistance.

LOVE AT FIRST SIGHT

I fell in love the other day.

A friend of mine came in and told me about her, “Go look!”

She belonged to someone else, but she was beautiful.

She had sleek, flowing lines.

Some say that she is fast, other’s say she is a little slow.

I don’t care what they say.

She is compact, perfectly formed, and looks good wearing her top either way.

I have seen her sister many times, but this was my first time with her.

It was well worth the wait.

But it was destined to be love from afar. She drove off without me.

She left without even a flash.

Another love lost.

Now just a fond memory, but I finally got to see, close-up, the Saturn Sky.

The Sky is a great design achievement for GM. It shows well from every angle, and in my opinion, is much better looking that its sister, the Pontiac Solstice. I spoke with the owner of this Sky, and she could not be happier. She has owned it for 9,000 joy filled miles, just now starting her third summer. I did not have the courage to ask for a ride, but she says that it is great around town, and at speed on the highway. In fact, she drives it regularly to and from Connecticut in total comfort. I congratulated her on her good fortune, and let her know of my envy.

The Saturn Sky, well worth a look, even if it is love from afar. Love the Sky!

H2, Oh: The Future

I had a chance to look into the future of the automobile, or at least one possibility. Recently, our friends at Quirk Chevrolet here in Portland hosted a visit from GM’s state-of-the-art Equinox Fuel Cell Vehicle. This is GM’s test project for hydrogen powered cars: zero gasoline, zero emissions, all placed neatly in a stock Chevy Equinox SUV.

The Equinox Fuel Cell Vehicle is a real car, not a crazy science project; clean and functional both inside and out. From the street, you can not tell that it is special, aside from its distinctive logo markings on the body and the whine that it makes as it drives. The Hydrogen Equinox still starts with a key, but there is no sound of an engine turning over. There is no firing, just the whirling sound of its compressor ramping up, along with a cooling system for the battery.

The H2 Equinox still seats four, with stock trunk space pretty much left intact. Only a small portion is taken up by one of the three hydrogen fuel tanks protectively hidden under the vehicle. This Equinox is heavier than stock with an additional 700 pounds from its fuel cell system, batteries and adjustments made for the hydrogen tanks. Instead of an exhaust pipe, there are four ports cut into the rear bumper to vent water vapor, not noxious fumes. There is no exhaust buffeting, just drops of water.

While I did not get a test drive, friends of mine did get to cruise around the parking lot. They both agreed, “Smooooth!” It should be, it is essentially an electric car that runs on hydrogen. Hidden inside is a processor, three hydrogen tanks, batteries and an electric motor. The electro-chemical processor takes the hydrogen gas, strips electrons from its molecule which becomes electric current to drive the motor. The hydrogen is then combined with oxygen producing water which is vented from the rear bumper. Cold weather starts? Not a problem, the car is good to -13 degrees.

Details include:

- instant torque from a single speed 126 hp electric motor

- no transmission, one speed to 100 mph

- 0-60 mph in 12 seconds

- 236 lbs. ft. of torque

- range of 150-200 miles

- regenerative braking that charges the battery when braking.

Despite the Hindenburg jokes, designers argue that hydrogen is a safer fuel than gasoline. GM is serious about this vehicle and hopes to have it available for purchase within three years. As a result, they are now testing 100 of them in Los Angeles, New York and Washington, DC where there is access to hydrogen refueling stations. Refueling is simple, just connect a tube from the feed tank to the connector behind the Equinox’ fuel door, and presto, as easy as filling the tires with air, that is if you can find a fueling station.

Refueling the hydrogen is only one of many challenges facing this SUV’s future. GM’s Hydrogen Fuel Cell car may prove to be just plain too expensive. No one will quote a market price for the car, but as a limited production vehicle, it may cost thousands more than a sane individual would be willing to pay. GM may need to market it with a subsidized lease. Another challenge is the question of the affordability of hydrogen. While hydrogen is plentiful as an element, its extraction from hydrocarbons such as natural gas or coal is still reliant on fossil fuels, not to mention the development of a whole new infrastructure of refueling stations, all expenses that would be passed on to the consumer. There is also direct competition from other choices including new hybrid designs and pioneering electric vehicles. Finally, the consumer may not want to settle for this vehicle’s limited range of only 150-200 miles, especially considering its potentially steep purchase price.

GM is looking to the future with its fuel efficient choices. They now offer 30 different more traditional models that deliver 30 mpg or better. In addition to the Fuel Cell Equinox, GM is also aggressively pursuing viable alternatives with its flex fuel vehicles, its hybrids and its exciting, upcoming Volt electric car. The future is now!

Check back here soon. I was able to drive two GM products recently, the new Chevy Malibu and the Extended Cab Silverado pick-up. I will share my impressions with you.

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