Let’s face it. The car tuning scene (or anything automotive) is mainly a male-dominated field. However, that doesn’t mean there are some nice vehicles that are tuned and/or modified by our female automotive fanatics. In particular, there are three main circles of female oriented tuning – Honda Civic/Acura Integra, Nissan Z/Infiniti G, and Scions.

Scions, unlike the other two circles, are semi-actively supported by Scion. They often participate in local car shows, hold annual events, and provide a host of online activities. Also, the Scion crowd are usually inexperienced and/or novices who are just getting into the tuning scene and tend to welcome other newbies with open arms, creating more of a family atmosphere. That in a sense is a huge contrast to the other clubs who make fun of people who are not as knowledgeable – acts that turn off newbies and/or females.

While browsing for a new vehicle, Jamie Stavert too, was initially skeptical of the Box…

“When I first saw the Scion xB, I laughed like most people and did not care for the “toaster” that I saw here and there. It was a good friend of mine, that I used to work with, that opened my eyes to see beyond its square exterior to see how fun the car could actually be.”

As Jamie neared the time to purchase a new vehicle, she kept on coming back to the car she first laughed at…

“I was given a severance package when I was let go from my previous company, and wanted to use it to get a commuter vehicle. I searched online, looking at different vehicles for a few weeks before I came across a vehicle that I kept coming back to. I have been collecting frogs since I was a teenager and the vibrant green in the picture seemed to draw me in. I talked my fiance, Daric, into going to look at the Scion xB Release Series 3.0, he was not impressed by the pictures I had showed him. But when he saw the color in person, he was drawn to it just as I was. “


Scion markets a factory tuned version of each of their models, annually. Called the Release Series, about 2,000 units of the limited edition models are sold...

“We checked out a few other dealerships, and some stock Scions, before I talked Daric into going to Stockton to see one of the three RS 3.0 models that I had found online. We took it for a test drive and I convinced him this was the vehicle I wanted. We bought the Scion that night and brought it home, it was March of 2007.”

After the purchase, Jamie immediately went online looking for some resources for her Frog Box…

“We found Cluxb.com and found out that there was a lot you could do to the car to make it your own, as well as several car clubs. We started hanging out with a club we found locally and joined them. We met a lot of different people from being in the club, but ultimately decided that the club we were in was not the right group of people for us and joined a different club.”


And the modifying began…

“Fellow club members helped us see how easy the Scion was to make our own as there are a lot of parts available to customize the vehicle to your own taste. We reupholstered the door panels inside the vehicle, reupholstered the headliner, added green lighting inside the vehicle, Injen engine cover, Weapon-R short Ram Intake, HID Headlights, MagnaFlow exhaust, Tein S-Tech springs, TYC tail lights, LED door locks, Almani Amp and Exile 15″ sub.”

Then, tragedy hit…

“On September 11th, 2008, I got into an accident in Tracy, CA and took the vehicle to a local bodyshop to get an estimate and try to get it repaired. The vehicle was broken into twice at the body shop, a great deal of damage was caused. The bill came out to just over the $10,000 mark, and that was just the damage from it being broken into. The DVD Deck and TV’s are part of the Special Release 3.0′s features, and they stripped all the items they could from the vehicle. The poor car was broken into twice at the shop before I had it towed to another shop where it was safe. It was number 1,062 out of 2,200 of this model.”


About the slow steps in recovering from the loss…

“I was devastated by it all, this had become my show car and I was quite attached to it. My fiance Daric helped me through it and came across a picture on eBay of a vehicle for sale and recognized the color. We contacted the guy that posted the ad to find that he was trying to sell vehicle 574 out of 2,200.  Lucky for us, he held onto the vehicle until we got the loan together to purchase it from him.”

The rebirth of the Frog Box…

“We bought our second Release 3.0 in the end of October of 2008 and I am proud that this new one has exceeded the mods that I had done on my first one, and that I had the support of my Scion family and friends to help me and motivate me to make the car better than it was before.”

On being one of the few female tuners and a message to other female drivers…

“I am also very proud of the fact that most people don’t realize that the Frog Box is a woman’s vehicle, I appreciate that my man can drive the car around and not be ashamed to be seen in it. The advice that I would give to other female tuners is to build what you have under the hood as well, as the everything else. It isn’t just about how the vehicle looks on the outside. You have to put the work and time into the vehicle to truly appreciate what you have and make sure that it reflects you.”

Jamie’s Frog Box Mod List:

Exterior
- Webasto panoramic sunroof
- bBist silver fiber hood
- Shaved rear bumper
- LED tail lights
- Cleared corners in the headlights
- E-Sam window visors
- Carbon fiber door trim
- Billet lower grills
- Tein bonnet dampeners
- Green LED underglow
- 17″ Race Line wheels

Engine
- Custom engine cover
- Weapon-R Short Ram Intake
- Weapon-R Intake Manifold
- Weapon-R Header
- Weapon-R Oil Catch Can
- bB battery tie down
- Killer Glass radiator hose
- JL HID headlights
- TRD Oil Cap
- GReddy Radiator Cap
- Green LED engine bay lighting
- Custom fender bolts
- MagnaFlow Exhaust System

Suspension
- Easy Street Air Struts
- Slam Specialties RE-5 Rear Bags
- 3 gallon aluminum air tank
- 2 Viair 380 Compressors
- Valve manifold
- TRD Strut Bar
- TRD Rear Sway Bar

Interior
- Custom shifter with 18″ extension
- Color matched interior trim
- Custom pillars and interior parts
- Custom gauge face
- Custom upholstered headliner and door panels
- Weapon-R Roof Brace
- Weapon-R Trunk Cage
- LED door locks
- Custom LED interior lighting
- Carbon fiber gauge pillar with air ride gauges
- JDM door lock covers

ICE (In-Car Electronics)
- Release Series 3.0 Alpine DVD Player Head Unit
- Release Series 3.0 TV’s in headrests with wireless headsets
- Kicker 12″ subwoofer
- Kicker amp

- KF

Photos: Ilya Faynshteyn

forddealershipThe purchase of a new vehicle is often based on emotions rather than on objective decision-making. To ensure that you get the best deal, here are a few simple steps you can follow.

First, you must determine your need for a new vehicle. Would a used vehicle fit your need? Advertising is often intended to entice customers into buying a new car. With the appealing ads, customers often get dreamy visions of owning a new vehicle. Before entering a car dealership, make sure you’re acting on need rather than want.

After you’ve determined that you need a new vehicle, research the vehicle’s cost and determine what price you’re able to pay. It’s important to know the dealer’s invoice cost of the vehicle before speaking with the dealer. Information on vehicle pricing can be readily found in many printed pricing guides and web sites including, www.consumerreports.org and www.kelleybluebook.com. You also might want to try KarFarm’s new application www.karfarm.com/adspace.php to search or browse your local dealers new car specials.

Now, you’re ready to speak with the dealer. While negotiating the purchase price, it is important to keep your focus on the dealer’s invoice cost and how much you’re willing to pay. Dealers talk about the Manufacturer’s Suggested Retail Price (MSRP), or sticker price; however, to avoid overpaying, know the dealer’s invoice cost for the vehicle and negotiate up from there, allowing a fair profit for the dealer. Avoid beginning to bargain at the sticker price and negotiating down.

Only after you and the dealer have settled on a purchase price is it time to begin shopping around for the best financing deal – should you finance or pay cash; should you go for the rebate, special dealer financing or finance the purchase through a bank; should you use a home equity loan for financing? When it’s time for you to make a vehicle purchase, a variety of loan payment calculators are available on statefarm.com® to help you make educated financial decisions.

Comparing Financing OptionsDealer FinancingBank Financing
APR3.9%7.0%
Purchase Price$16,000$16,000
Down Payment$1,600$1,600
Dealer Rebate$0$1,000
Amount Financed$14,400$13,400
Monthly Payments (48 months)$324.49$320.88

The above comparison assumes monthly payments on a 48-month term, $16,000 vehicle loan with a down payment of $1,600. One loan is 3.9% APR with no manufacturer’s rebate, and the other loan is 7% with manufacturer’s rebate of $1,000. Rates may not reflect current interest rates. Example is for illustration purposes only.

-KF

Road MapIt’s getting to be about that time of the year. You pack your stuff and go on a road trip. The fact is that Americans love going on road trips between June and August. According to AAA, the average trip this year will be about 620 miles and we will spend about $1,052 on this year’s road trip. They also predict that lodging and rental cars will be lower this year than years past.

For us, being in Northern California, our favorite road trips are to Lake Tahoe, San Luis Obispo, Yosemite Park, and Santa Cruz. We’ve also driven to Salt Lake City, Portland (OR), Las Vegas, San Diego, etc…

So, we ask:

What are some of your favorite road destinations?

Do you have a favorite food joint?

Tell us about your favorite road trip of the past and the best story within two months will win a prize of unspeakable value…  :)

-KF

The world of Automobiles is a male-dominated place. Automobile racing? Now there’s a place where estrogen is only found with Mr. Spock’s triquarter. Unless the ladies are in skimpy bikinis, or even nude, women are considered to be no more than decorations to the automobiles. Not only do these ladies  compete with and against men, but sometimes they outright dominate. Whatever inspired these ladies, on this page, they are driven to kick some man-ass!

Danica Patrick (IRL)
Danica started off like many, taking up Karting at age 10. After working through the feeder series like Formula Ford, Barber Dodge and Toyota Atlantic, she burst into IRL in 2005. Arguably the only reason why the IRL league is still alive, the petite racer is a lightning rod for controversy. Some say she’s selling too much sex, some still say that she needs to prove her worth. As a spokesperson, she is the face of GoDaddy.com and Peak Anti-freeze.

2005-07 IndyCar Rookie of the Year
IndyCar’s Most Popular Driver
1 Career Race Win
Numerous podiums
Placed 3rd in the Indy 500 this year
2 Sports Illustrated Spreads
Appeared in FHM

Lisa Kubo (Drag)
She dominated Import Drag Racing scene from the late 90′s to mid 2000′s. Piloting the FWD Honda Civic Hatchback and a modified Saturn Ion into history, she took down names and kicked ass year after year. The more impressive fact is that she is the very first female to earn a NHRA license. She was also the ‘racer of the year’ in 2000, 2001, and 2002. Lisa also is recognized as the first driver to make a 7-sec pass in a FWD car.

2000 Turbo Magazine’s Drag Racer of the Year
2001 National Import Racing Association Driver of the Year
2001 NHRA Import Drag Racing Series Driver of the Year Runner-up
2002 NOPI Drag Racing Association Driver of the Year

Ashley Force Hood (Drag)
Making her living a 1/4 mile at a time, this 2007 Funny Car Rookie of the Year has made quite an impression on the drag racing world. Whether it’s competing against her own father with a winning 4.779 ET, or being the first woman to ever lead the NHRA point standing, she is a driver to be reckoned with.

2007 Funny Car Rookie of the Year
First female to compete in a Funny Car Final Round
Star of A&E’s show Driving Force.

Verena Mei (Drift)
Clutch kicking her way into success, this actress/driver is known both on the track and the silver screen. Verena started out as an ‘Import Model’, now she can be found competing in D1 events, Redline Time Attack Series, or teaching at corporate driving events.

Cameo as one of the hotties in a Skyline in Fast and Furious: Tokyo Drift.
First place in D1 License Qualifier
3rd in Hankook Drift Nationals
Numerous podium finishes at Redline Time Attack

Milka Duno (IRL)
Getting off to a late start in racing at the age of 24, this highly educated former model from Venezuela has been racing her heart out in IRL since 2007. Moving up through the feeder series since 1998, she’s landed a good spot, and works hard to defend it.

Started off in Barber Dodge, and in four years advanced to ALMS.
2nd place finish at the 2007 24 Hours of Daytona, becoming the highest placed female in the history of the race.

Sarah Fisher (IRL)
Starting off racing at a young age, Sarah was off to a running start winning numerous Championships. Having grown into IndyCar and Nascar West, she currently drives for her own team, Sarah Fisher Racing. Subject of many Most Popular Driver awards, she was the media sensation in racing before Danica Patrick came along.

1991, 1993 & 1994 World Karting Association Grand National Championships.
1995 Dirt Track Rookie of the Year.
Youngest woman to compete in the Indianapolis 500 in 2000 at age 19.
Tested a McLaren F1 car at the 2002 US Grand Prix.
Appeared on many TV shows, and in magazines due to her accomplishments at a young age.

Corentine Quiniou (Rally)
At the age of 14, Corentine charged into a racing career in endurance Karting, competing in various Championships. Moving from Karts and into the dirt, this star has a very exciting career, and should be watched.

Finished 3rd in the 2004 Rallye des Princesses
Finished 1st in the 2005 Rallye des Princesses
Finished 1st in the 2006, 2007 and 2009 Rallye Aicha des Gazelles

-KF

(photo: flickr and lisa kubo)

hyundaiassuranceHyundai started it all. The Hyundai Assurance was the genesis (no pun intended) of the ‘payment protection plans.’ Now Ford has one called Advantage Plan and GM named theirs Total Confidence.

The TV ads seem so sympathetic towards the consumers and are well produced. They all look genuine, but they don’t tell you what the really important details are.

So which one is the best? Not withstanding the vehicles, of course, we will detail out the three plans, and we think you should be able to figure out which one is the best for you.

Hyundai – Assurance
-Hyundai will give you $500/month for 6 months
- Must have made at least 2 payments and is current on payments
- Can be financed with any bank or financial institutions
- 12 month coverage
- Anyone is eligible including the self-employed (only if bankruptcy was filed)
- Covers up to $7,500 negative equity

Ford – Advantage Plan
- Must be combined with Ford Motor Credit’s 0% financing program
- Ford Motor Company pays Ford Motor Credit directly up to $700 per month for up to 12 months
- Must be a full-time paid employee on the job for more than 90 days; part-time or self-employed not eligible

GM – Total Confidence
- GM pays the bank or financial institution up to $500 per month for up to 9 months
- Leases are covered for the payment protection but not the vehicle value protection
- Must be a full-time paid employee on the job for more than 12 consecutive weeks prior and 90 days after purchase; part-time or self-employed not eligible
- Vehicle Value Protection covers only if you trade it in for another GM vehicle and they will cover up to $5,000 negative equity if traded-in to a GM dealer, or $2,500 for private party sale
- Will not cover all the negative equity if you have financed more than 110% of the MSRP

A few things to note. Hyundai’s plan seem to have the least amount of restrictions. If you have lost your job, you sell the car back to Hyundai and walk away. Then, Hyundai will cover up to $7,500 of negative equity. You pay the rest if the negative equity is more than $7,500. Also, if you are self-employed, obviously the best bet is Hyundai.

Ford’s plan has a big catch. You must be able to qualify for and take advantage of their 0% financing program. If you don’t qualify and decide to use another bank, credit union, or home equity loan, then tough luck for you. Furthermore, let’s say that  you cannot find a job for more than 12 months, you’re stuck with the car and the payments.

Lastly, GM’s plan has the most particulars and the least coverage. After 9 months, you might be stuck with the car and the coverage… that’s if you have met all their guidelines.

-KF

Fender BenderPicture this scenario: A woman leaves her car securely locked and safely parked on a quiet side street. But the unexpected happens. When she returns, her car is severely damaged.

This scenario has a happy ending. After the initial shock, she calls her insurance agent. The agent guides the woman through the claim process and explains that her car policy’s collision coverage will pay the cost, after the deductible is met, to repair her car.

Why should you have auto insurance?
State laws require owners and drivers of motor vehicles to be financially responsible for damages they cause in a car accident. Insurance satisfies this requirement. In addition, optional coverages are available that can further reduce your risk of significant financial loss from a car crash, even if it is not your fault.

Types of coverage available to drivers:
There are various types of coverage available when purchasing an Auto insurance policy.

  • Liability: Pays damages for bodily injury to others and damage to property that result from a wreck that is caused by an insured under your policy. Also pays for other costs including legal defense and court fees in the event an insured is sued because of a car wreck.
  • Collision: Pays for damage, after a deductible is met, to your insured car when it strikes, or is struck by, another vehicle or object.
  • Comprehensive: Pays for damage to your insured car that was not caused by a collision. Some examples include damage caused fire, wind, hail, flood, vandalism, theft, or impact with an animal. There may or may not be a deductible for this coverage.
  • Medical Payments Coverage: Pays the reasonable and necessary medical expenses for an insured that is injured in a car crash, regardless of who is at fault for the wreck.
  • Uninsured Motorist Coverage: Pays damages to an insured that is injured in a car crash caused by a driver who does not have liability insurance.
  • Underinsured Motorist Coverage: Pays damages to an insured that is injured in a car crash when the person(s) responsible for the wreck accident has insufficient liability insurance to fully compensate the insured for the injury.
  • Car Rental Expense: Pays eligible rental car expenses if your car is not drivable because of a loss which would be payable under Collision Coverage or Comprehensive Coverage.
  • Emergency Road Service: Pays for items such as towing expenses, the cost to deliver gasoline, and specified labor charges to unlock your car if the key is locked inside the car.

When shopping for insurance, it’s important to look at more than the total cost. Become familiar with the amount and type of coverage that is being offered. Also, note what isn’t being covered, who is covered while driving your vehicle and the quality of customer service in the event of an accident. And always remember to make sure the company you’re insured by is financially strong.

The bottom line is that you should understand your policy and buy the amount of insurance you think you need.

If you have any questions about Insurance, Laura can be reached at Laura@KarFarm.com

-KF

    Getting ready for the braking exercise.

Getting ready for the braking exercise.

In Part 1, you learned about the problem with teen driving and what you can do about it. Here’s a look at what you’ll be getting into if you decide to enroll in a high performance driving event. I recently had the opportunity to participate in Bridgestone’s Drivers Edge program (www.driversedge.com). It is specifically geared towards teens and is free (yes, I said free). Their motto is “Know yourself and know your limits.” Believe me, by the end of the day that could not ring so true. The leading cause of death for teenagers is car crashes. One day at the track thrashing a car around might not make you a master in car control, but a least you will able to know a little bit about yourself and the road.

It’s only one day long and is like drinking from a fire hose, but it serves as a good eye-opener. The day starts off with a quiz (that’s where I got those questions from Part 1). Most teens and parents do poorly; surprise, surprise. It’s not your or your kids’ fault because no one is taught properly. Imagine that your child has a Biology test and the teacher didn’t cover the material on the test. As a parent, you would be furious if you found out, especially if your child attends an expensive private school. Before I even attended this particular event, I had already attended two other high performance driving schools and still, there were questions I really had to think about.

There were also some interesting statistical questions such as, “rate yourself as a driver on a scale of 1-10 then rate your friends on a scale of 1-10.” Guys, of course, would think they are heaven’s gift to driving and the rest of the world is filled with mere followers. The girls were much more modest, rating themselves average or poor while thinking very highly of their friends. It’s really just a way of showing that no one has a real way of judging good driving because no one was shown what good driving really is. Following the quiz and subsequent lectures, students were brought out to the cars. The instructors stressed the fact that the students did not own the cars and therefore treat them accordingly. We all know what that means…

Don't worry, it's not your car...

Don't worry, it's not your car...

The first exercise was designed to dispel a couple of myths about ABS. There are two common misconception that ABS will stop a vehicle faster or keep it under control. In the exercise, the driver must accelerate in a straight line and apply maximum braking force to stop the car within a box. Then the driver must perform the same maneuver, but must brake and swerve around some simulated pedestrians/cars/objects (road cones) and stop. Sounds simple right? People quickly learned that the solve-it-all ABS is not all it’s cracked up to be. Several students went careening into the cones during the braking and turning task even though the car was equipped with ABS. ABS allows you to brake and steer, nothing more. The car has a limited amount of grip and will not respond to abrupt inputs. The driver must smoothly apply a surprisingly small amount of steering to successfully stop inside the target area. For all the Harry ham hands behind the wheel, this was a bit of a challenge. Enter the teenage random excuse generator: “My car’s brakes didn’t work! The cones are set unfairly!” After few minutes of reflection, the students really begin to see the light and actually become more motivated to learn more.

The second exercise is in car control or more specifically, skidding. The DMV’s driving handbook says that you should steer into the skid… what does that mean and what do you do after that? The answer is not in that handbook. In this exercise, the driver must accelerate to about 50mph and make a turn while the instructor pulls the hand brake causing the car to spin. The driver must then try to stop the spin. This was the most fun to watch both from inside the car and outside. The small circuit the instructors had coned off  was soon destroyed by spinning BMWs.

So if you’ve never experienced something like this allow me to enlighten you. You get behind the wheel of a brand new (brand new in age not in condition) BMW with the instructor at your side. You pull up to the starting line and are instructed to put the gas pedal to the floor. The car starts hurling down the course where at the end is a curve you have to negotiate. As you turn the wheel you hear a very soothing chime telling you that the hand brake is up. Before your brain can even process the sound, the scenery in front of the car no longer is coming toward you but strangely going from left to right. A light bulb goes off in your head as you suddenly recall what you had been taught in the classroom earlier. At this point the car has already come to a stop now facing the direction from where you came.

The onlooking parents laugh at their children’s lack of experience, but when mommy and daddy are placed behind the wheel, the result is the same: endless pirouettes and a cacophony of tire noise. Enter the parental random excuse generator: “I’m not used to this car! This exercise is not realistic! The instructor made it hard on purpose!” The majority of the students and their parents in their three attempts could not regain control of the car, but everyone began to realize how important all the day’s shenanigans are.

Collecting cones in the braking exercise.

Collecting cones in the braking exercise.

Obviously three attempts at each task is hardly enough to become proficient. Bridgestone’s aim is to increase awareness instead of instantly improving teen driving in all the areas they visit. It’s also a way to motivate teens and parents to invest in better driving education. After all the day’s dancing lessons, everyone is brought back into the classroom where there is no student who isn’t grinning from ear to ear. The hope is that they will go home and tell their friends who tell their friends and so on.

Now, most parents will say “I don’t want my kid driving like a race car driver!” Let me be the first to tell you a little secret. They are going to drive like racing drivers whether they know what they’re doing or not. Imagine a race track with a long straightaway followed by a sharp blind corner. The lead driver comes barreling down the straight and brakes as hard and as late as possible to enter the turn at the car’s highest potential while carefully balancing it to maximize his lap time. Now imagine a long freeway or highway where debris suddenly falls from a car ahead. A driver following notices the debris and must brake and swerve to avoid a collision with the debris and other cars. The same driver must brake as hard as possible and carefully balance the car while maximizing its turning potential. It’s more about what happens in certain situations and why they happen rather then about going fast. Performance driving schools are not only about senseless tire carnage and conical destruction. One particular school offers a two day driving class that goes over proper passing on narrow two way roads and the proper way to set your mirrors as well as the in-car fun.

e46-sliding

Learning to slide a Bimmer

In my teenage years, I’ve spun my fair share of cars.  Fortunately I was at a driving school rather than on some twisty mountain road or a busy city street. So for your children’s sake, make sure they have their mishaps on a closed course with a professional instructor in a car you don’t own. Go to the Driver’s Edge website for more information on event dates, locations and registration. If you’re still wondering what the answers to the questions in part one are, the suspense is over.

What is a “contact patch,” and how many does your car have?
It is the portion of the tire that is in physical contact with the driving surface and its size is directly related to the amount of grip it produces. Your car has four (unless you are doing something epically wrong).

What is “oversteer,” and “understeer?”
Oversteer occurs when the rear tires have low grip or the front tires have too much grip causing the rear of the car to rotate or slide around the front.

Understeer is the opposite. It occurs when the front tires lack grip or the rear tires produce too much grip causing the car to move towards the ouside of the turn.

How do you correct for excessive amounts of oversteer and understeer?
Remember the acronym CPR for oversteer: Correct Pause Recover.
Correct the slide by steering into or in the opposite direction of the rotation. If you were turning left and the tail starts to slide, steer to the right. This is known as countersteer.
Pause when the rotation stops. Hold the wheel where it is. The car may still be sliding sideways but the rotation has stopped.
Recover when the car begins to rotate in the opposite direction. In other words, remove your countersteer and center the wheel.

Understeer is a little simpler. When your turn the wheel and the car appears to continue straight ahead, do not turn the wheel more because the front tires have run out of grip. Instead leave the wheel where it is and slowly lift off of the gas pedal and slow the car down. Avoid the brake pedal as braking with a steering input will unbalance the car and will lead to more understeer or even oversteer.

By arming your kid with the skills they need, you increase their chance for survival on the road. Not only can it help lesson their chances for tickets and accidents, but if you attend the event, you might learn something yourself.

-KF

teen-in-carSo, your 16 year old kid just passed their driving test.  Elated, they grab the keys to your [insert yuppy luxo car here] ready for an adventure. The doubt you are feeling about their safety isn’t just normal parental concern, but rather you know that they are under-prepared and under-trained. The news that drivers’ training in the US is sub-par… well, it isn’t really news at all. It’s more like common knowledge, and frankly, it’s embarrassing. So, to keep them safe, you’re going to personally help them build confidence behind the wheel and make them aware of the law. But aren’t you a product of the same flawed system?  But no I hear you say! I’ve been driving for 20 years with barely any accidents. Plus they were his fault! I’m the perfect parent to show my kid the responsibility of driving. Sure, you do indeed have real world experience, but all you’ve done is manage to drive around the chaos instead of improve it.

The truth is most Americans are severely lacking in everyday skills needed for the road, so it comes as no surprise that the road is a dangerous place. Everyone has that one friend that can’t seem to get down the road without making their passengers’ heart skip several beats. The worst part is the fact that most don’t even realize how bad their driving is. Educating the next generation of drivers from their first day behind the wheel would make roads a lot safer not to mention put your mind at ease. Thankfully, there are education courses available to your teen, that involve car control in a safe setting with a professional driving instructor.

There have been numerous published statistics showing the increased accident rate for teen drivers. Most of these accidents could have been avoided with a simple understanding of vehicle dynamics.  We don’t have to be race car drivers or engineers to understand some basic principles. I’m certainly not a professional driving instructor but I am a flight instructor. For student pilots, being taught how to take the aircraft to the limit of its capabilities is a required part of training as well as practicing emergency situations.

There’s really no reason why driving shouldn’t be the same way. Basic driving physics and theory isn’t rocket science and should really be taught to all drivers. Just as professional pilots learn control through theory, a properly trained professional driving instructors can coach your children through the basics. Here are some questions every driver should be able to answer:

What is a “contact patch,” and how many does your car have?
What is “oversteer,” and “understeer?”
How do you correct for excessive amounts of oversteer and understeer?

If you cannot answer these questions with absolute conviction, then you might want think very hard about the following. Old Man Winter teaching driver’s ed’ to your kid’s highschool definitely does not have the answers, unless he’s Jackie Stuart. How can you solve this problem? Unfortunately, it requires money, over $2000 in some cases. However, and I stress, it is worth every penny. The good news is that you can probably find one near your home. You may clutch your heart at the mere thought of that figure, but you really can’t put a price on your kids’ safety.

jaws-of-life-demo

It's not all about abusing cars. Firefighters demonstrate the Jaws of Life at Bridgestone's Driver's Edge

A quick look at other countries (Japan, Norway, and Finland to name a few) will show that these courses are required even to get a basic driving license and are not free in all countries. The driving record in those countries are much improved for the the US’s as a result of better training early on. It works abroad, so it can work here. The knowledge and experience gained can help save your kids’ lives and yours too if you decide to attend.

So you can scoff at the statistics and take matters into your own hands, or let the pro’s take care of it. All you have to do is spend a litte time on a web search engine and you’ll find something that you and your wallet can live with. Who know’s, maybe you’ll find a free one (yes they do exist). Here are some schools some of which I have personally attended: Skip Barber Racing School, Russel Racing School, Bondurant School of High Performance Driving, Bridgestone’s Driver’s Edge, Derek Daly Performance Academy.  Stay tuned for Part 2 for an in-depth look at one of the schools’ programs.

-KF

When you finance a vehicle, you finance the vehicle, sales tax, licensing, and documentation fees. That adds up to about 110% of the selling price. With an average down payment of 20%, you are barely covering more than the sales tax and other applicable fees.

For the ease of math, let’s go ahead and use this example:
Selling price $22,000
Sales tax and other fees $2,200
Subtotal $24,200
Down payment $4,000
Total financed $20,200

The interest in automotive loans are front-loaded. Finance companies want their interest first, since that’s the part that makes them money. Essentially, the monthly payments for the first year or two are mostly interest. Compound that with depreciation during that period, you might be looking at a perfect storm. After 2 years of ownership with a typical monthly payment of $400 (for 60 months), and 40% depreciation from the above example vehicle, you have the following:

Payoff amount $16,500
Market value $13,200
Net difference $3,300

In any case that  your vehicle is declared a total loss by your insurance company, they will give you the market value. Whether it’d be a stolen vehicle, natural disaster, or an accident, there will be a point where the damage to your vehicle will be more than the cost of the repair. If so, you might be responsible for the net difference between the payoff amount and what the insurance company gives you. Actually, you’re responsible for that difference plus your insurance deductible.

The scenario becomes worse if your finance terms are longer than 60 months, your down payment is less than the example 20%, ownership of the vehicle is less than the example 2 years, depreciation is more than the stated 40%, or you are carrying negative equity from your trade-in.

Get the gap insurance if you:
- carry negative equity from trade-in
- have less than 40% down payment
- plan to finance longer than 48 months
- are purchasing high depreciation vehicle (high-end luxury models, domestic makes, third-tier imports, etc…)
- live in high crime rate and/or natural disaster area
- are purchasing for your teenage drivers

Of course, there are always rip-off’s. If the dealership charges you more than $600-700 for this service, then pass on it. You can get it with your own insurance carrier, but the only catch with that is you still have to pay your insurance deductible.

-KF

dealerfinanceYou ask your friends for opinions on the possible cars you might purchase, and most of them will recommend you something that they believe are reliable. The car companies and salesman will have you believe that today’s cars are more reliable than ever before. Therefore you can skip the extended warranty, right?

You’ve done all the research and due diligence. The car you are about to sign for, in the finance office, carries a very high reliability score on many surveys, magazines, and websites. But, the finance manager makes a convincing case on why you need the extended warranty. You never buy extended warranties for anything you purchase, so why should you purchase extended warranty on a car?

Ask yourself these simple questions.

How long are you going to keep your car?
That is the first and the most important question you should answer. Most manufacturer’s basic warranties (bumper-to-bumper) are 3 years or 36,000 miles and 5 years or 60,000 miles on the powertrain/drivetrain (engine and transmission). If you are going to keep your car for more than 4 or 5 years and/or 50,000 miles, you should lean towards getting the extended warranty.

The reasons for the extended warranty will vary between the make and model you’re considering, but most new vehicles since 2005 will carry at least 8 computers (electronic control modules) and over 200 sensors onboard. Some makes protect these electronics better than others, and some cut cost by using inferior pieces. Another big factor is that most people think that drivetrain warranty is enough. Remember, your car is more than just engine and transmission. You have suspension, steering, braking systems, cooling systems, interior and exterior trim pieces, and other electronics.

Most manufacturers realize that the average vehicle ownership in the U.S. is only 2.8 years (until 2007 and in 2008 it rose to 3.7 years), and major automotive ownership surveys talley scores for the first 3 years of ownership. The most famous industry survey, the J.D. Power and Associates’ Initial Quality Score is only for the first 90 days of the ownership.

What are you buying?
If you are buying a Japanese brand such as Honda or Toyota, you probably will shun away from purchasing extended warranties. On their bread-and-butter vehicles like Civics, Camrys (4 cyl), Corollas, Accords (4 cyl), Tacomas (4 cyl), you will probably be okay foregoing the extended warranty. The general rule of thumb is that no matter what you’re purchasing the more power, moving parts (4 wheel drive), and/or electronics and gadgets the car has the more you’re in need of extended warranties.

Because of the abuse these vehicles take from their owners, sports cars, and 4-wheel drive (and AWD) vehicles are often in need of repairs. Vehicles that have reliable reputation are also excellent candidates of extended warranties. The Honda/Acura V6 equipped vehicles are notorious for transmission failure at around 75,000 miles, the Toyota Camry V6′s are known for having sticky valves right under 100k miles, most German cars have annoying electronic gremlins that pop up at any mileage, and domestic vehicles traditionally have issues with parts quality/longevity.

If your last vehicle purchase was pre-2002 and had absolutely great reliability and think that you don’t need extended warranty on the new one you’re purchasing – think again. Due to globalized economics, no matter what brand of vehicle you are purchasing, the parts suppliers are shared by most manufacturers (Toyota and GM share more than 300 suppliers).

They are charging too much money for the warranty, how much should I pay?
Do not skimp out on the coverage, be sure to get the top coverage and $0 deductible. Make sure that you are getting the manufacturer backed warranty. There maybe too many annoying issues with the aftermarket warranty. The catch is that some F&I Managers (finance managers) are greedy and try to overcharge you for these protections.

Visit the manufacturer’s website before you go into the finance office. They actually have Manufacturer’s Suggested Retail Prices for their own extended warranties. If the finance manager asks more than what the website says, then reject the whole purchase of the vehicle. That will force the finance manager to drop the price to MSRP, but you should question his/her ethics and turn that offer down. He/she will be pressured into discount even further. However, if they offer it at MSRP or below it from the start, then you should feel comfortable with the purchase.

Some dealers actually have a money-back guarantee service. If you really are unsure about the extended warranty, ask for it. If the dealer you are dealing with does not carry the reimbursement guarantee, then shop around for it from other dealers. You do not have to purchase extended warranty from the dealer you bought your car from.

-KF

The sales department is often called the ‘front end’ of the business. It is the face of the dealership. Once this part of the dealership was overrun with dishonest people who were in it for the quick money. Not unlike the mortgage brokers of today.

Back about one or two generations ago (15-40 years), the sales department made a ton of money for the dealerships. There were no regulations on financial services or products, Monroney Stickers (MSRP), standardized VIN#’s, or business ethics laws to protect the consumers. You may thank your politicians for some good they have done over the years.

Sales Representatives
These people are the grunt workers. Some will learn bad habits of old sales reps and/or managers, some aspiring sales guys will have enough brains to develop their own way of talking to customers, and the rest are just hopeless.

Despite the notion that these people are brainless drones, that don’t know anything but how to make a quick buck, they are still people and often are paid very low. The average commission and bonus for a sales rep adds up to only about $230 per car sold, and average monthly sales are about 10-12 units.

It maybe frustrating to talk to these guys, but try to get to know your sales reps, and be their friend… they will surprise you once they open up. Just imagine yourself in their shoes, these people get treated like they are worthless by customers and sales managers all day.

The sales reps just do not have much control over your deal. Their jobs are to set you up for the sales managers. Don’t shoot the messenger, and you may go hard balling with the sales managers directly – if you wish to do so.

Assistant Sales Managers
They are the senior sales reps. These guys are not quite sales managers, but team leaders and are called ‘the Closers’. Yes, the sales reps show you the car and prepare you for the closers to come in and close your deal. The assistant sales managers do not make decisions on pricing, they are also messengers. Same as above, you may skip this step and ask for the sales manager, if the store is not overly busy.

Sales Managers
People you want to talk to are sales managers, or often called ‘desk managers’. Most who occupy these positions earn six-figure income, so they have some egos. Without being abrasive, just ask for a fair deal and they will provide you with a competitive figure.

One catch, they are playing games with you if they state that they have to get a clearance from the owner or the general manager. Then just walk away from the desk and leave, it should clean up their act. If not, you haven’t lost anything – just go to the next dealership.

General Sales Manager
From this position and on are mainly for your complaints, questions, and/or concerns about the sales process and the staff. The general sales manager (GSM) is the top sales manager. One step below general manager, and the general sales manager is the general manager depending on the ownership structure of the company. If you have any complaints about the sales reps and/or assistant managers, GSM will handle that. But if you have a problem with the sales manager, GSM and even the general manager (GM) might protect the sales manager. Go straight to the manufacturer for these cases. Most owners will stay out of daily operations.

General Manager
This position actually runs the store. They coordinate duties of all departments, make the advertisement decisions, do budget reports, sales reports, and meets up with the manufacturer’s representatives on a regular basis. Some GMs will take consumers’ complaints, and some will let the GSMs take care of them. The GM position can be viewed as a problem solver of the store. Remember, the GMs will almost never interact directly with consumers.

-KF

dealerinvoice1“Why is the dealer’s invoice different than the amounts I see online?”

“The dealers show you the fake invoice; don’t fall for it. According to this website, the car’s invoice is this…”

“Dealers only pay half of the car, you can get a better deal.”

The above are some of the things you often hear from your smart friends.

KarFarm wants to teach you the basics of pricing structure, so you can save time by effectively negotiating with the dealership. If you hear anything other than what you read below, then they are blowing smoke up some body part you don’t want smoke in.

The website says the invoice is this…
Yes, the websites are correct. Some are more accurate than others. So why such discrepancies?

Most of the websites (such as KBB.com, Edmunds.com, etc…) have the base price right, and even the correct dealer’s cost on optional equipment. But there are some hidden fees that are charged to the dealers, which are not disclosed to the public. See below for some of them.

Dealer’s cost is 50% of MSRP, and the invoice they show you is not the true invoice.
That statement is the most common myth I hear all the time. With the advent of the internet, this myth almost becomes a battlecry to many car shoppers. The cold-hard truth is that dealer’s profit margin on an average vehicle is about 8-13% of MSRP. Since dealer cost is tiered, some people perceive this as being ‘not the true invoice’.

Here are the facts about Dealer’s Cost.

1. The margin from Dealer’s Invoice to MSRP is about 7-11%. Oddly enough, the cheaper the vehicle, the less profit margin – even in percentage. Some vehicles are only marked up by a few hundred dollars, usually the entry level car of a particular make.

2. There is Holdback. This is basically a rebate to the dealer after the sale, to help out with the incurring finance charge on the inventory and other operating costs. The Holdback is usually about 2~3% of MSRP.

3. The Delivery Allowance. It means exactly what you think it means. After every month of business, the manufacturers will give the dealers a bonus of about 0.5~1.5% of MSRP.

4. The Advertising Fee Reimbursement Program. This varies between manufacturers, but it’s usually less than 1% of the car. Also this is paid much like the Delivery Allowance, on a monthly interval.

5. Dealer Incentive. The Dealer Incentive is not Dealer Cash. Dealer cash is much like an instant rebate for the dealer, which is not disclosed to the public, although you can easily find it on the Web. But, Dealer Incentive is extra money for the dealer from the manufacturers for moving slow selling vehicles. This money is not on every vehicle, only on few certain vehicles that manufacturers choose for that selling period.

Now even with all that, and if the dealer sold you the car for MSRP, the dealers make about 11-15% of MSRP.

Then, what’s the true cost for dealerships?
When the dealer sells the vehicle at the invoice amount, they still profit between 3-6% of the MSRP. But when you factor in the cost of operating the dealership and payroll, the net profit margin is not what most people think it ought to be. The major profit generating departments in a dealership are the used vehicle and service departments.

How much over, or under, invoice should you offer?
That largely depends on the vehicle purchasing. What I would advise would be to check your newspapers, or KarFarm’s AdSpace, for the weekly specials. Often, they are far below dealer’s true cost (yes, they will actually lose quite bit of money on these units). These are called ‘loss-leaders,’ they are to entice you come into their respective showrooms. So, when you are ready to purchase and start negotiating, give them a figure between the loss-leader price and dealer’s invoice. If you are purchasing a vehicle that is not a loss-leader car, then offer them a few hundred dollars over invoice and slowly increase your offer.

One last fact – when the dealer shows you their invoice, make sure to spot any evidence of forgery on it. If you don’t find any white-out, mismatching font type, or extra delays on producing the invoice then you can be assured that they are showing you the copy of the original invoice (most dealers will have a small stamp with their accounting numbers on them). It is illegal for the dealers to change or fix the stated invoice amount. So if they show you the invoice, thank them and believe that it is, in fact, the amount they are paying the manufacturer.

-KF

The Myth:
It’s better to buy a one or two year old car than a brand new one.

The Truth:
It depends! If you’re looking to buy a domestic vehicle or a second/third tier import, you are often better off purchasing used.  But if you’re looking to purchase a top tier import such as a Corolla, Camry, Accord, Civic, or Altima, you should be better off buying a new one.

Here’s the math. Top tier imports lose about 15-20% of their value in the first year. We’ll take an average MSRP of Camry, Accord, and Altima at $21,000.

$21,000 – 20% = $16,800

A dealer would purchase the used vehicle for around $16,500-$17,000.  They then incur expenses for reconditioning, smog & safety checks, transportation, and the factory used car certification process. This will add a minimum $500 to the cost of the car  — bringing up the true cost to about $17,000-$17,500.  In order to make a profit, the dealer will generally post a retail price of about $19,995.

Now… nobody pays asking price, right?

The deal will almost always be closed at about $17,500-$18,500, netting a profit of about $500-$1,000 for the dealer; which is fair and reasonable.

The trouble is most one to two year old cars on the market were previously owned by car rental agencies, as fleet vehicles, or service loaners. Although some may have been well taken care of, you just don’t know who drove it or how well it was maintained.

Many used cars often come with a factory used car certification and a longer warranty. This requires that the dealer check the car out thoroughly; therefore we would never discourage you from purchasing a used car. However, if you add $500 or even a $1,000 on to the price of a 1 year old car, you can buy a brand new one!

No matter how high the resale value is on the type of car you’re shopping for, the vehicle should have lost at least 35-40% of its original retail price before purchasing a used car begins to make financial sense.

The sweet spot for a used car of any type is at the age of 3.

-KF

“Should I lease or purchase?”

This is one of the questions I get asked all the time.

If you tend to keep your cars less than 4 years and drive less than 20,000 miles per year, then you could be a perfect candidate for leasing!

Most people don’t understand leases and upon hearing nightmarish stories about them, many shy away. What makes it worse is that most salespeople don’t understand them either, or if they do, they can’t explain them. If more people understood how leasing works, more people would lease.

The national average of new car ownership in the U.S. is 3.7 years. When you purchase a car you also pay sales tax on the full purchase amount, plus registration and misc fees. This totals out to about 10% more than the selling price of the vehicle (those lucky states who don’t have state sales tax do not apply). People who finance often wrap these additional expenses into their loan, thus incurring finance charges on both the purchase price of the car and on the  fees.

When you lease, you only pay sales tax on the monthly payments. You will still pay registration, plus a lease acquisition fee, but it is often quite a bit less than sales tax. When leasing though, you are required to pay the first month’s payment, the lease acquisition fee, and registration charges up front – in the form of ‘Initial Payment’ or ‘Due at Signing’. When negotiating the cost of a lease, you could ask your dealer to make the Initial Payment for you – at a higher monthly lease payment.

To determine if leasing is right for you, ask yourself these questions, in this order:

How often do I change cars?
If you tend to keep your cars for more than 3-4 years, you are probably not a good candidate for leasing. But please read on, because the purpose of your car might be the reason why you should lease.

What is purpose of my car?
With the exception of a very few vehicles, automobiles depreciate in value over time. Leasing allows you to finance the car’s depreciation. If you are a business owner or a commission-based worker (who files a Schedule C at tax time), you may write off up to 100% of your lease payments (please consult your tax accountant to make sure this is valid for you). Additionally, you can lease a car, then sell the car to someone else when the lease is over.

How many miles do I drive per year?
Notice that the mileage discussion comes last. Miles are not the first question to ask when it comes to leasing, but they can have a negative connotation.  If you drive less than 20,000 miles per year, you’re a perfect candidate for leasing.

A standard lease agreement is set at 15,000 miles per year, plus a penalty of 15 cents per mile for every mile driven over 15,000.  A pre-purchase option is often available for an additional amount that allows you to pre-purchase penalty miles at 10 cents per mile. If you lease a car and drive over 25,000 miles per year, leasing may still be cheaper than buying so long as you have stellar lease rates.

If you go over your mileage, you may decide to sell or trade-in your leased vehicle rather than turn it back in.  You can sell the leased car just like a regular financed vehicle. Thus, the mileage is not as important if you have a popular car.

How much is the ‘money factor’?
As you review your lease versus buy options you should shop what’s called your ‘money factor’. This is your lease rate which is similar to interest rate. Be careful though, a money factor of 2.5 is not equal to 2.5% interest rate, so do your homework to ensure you are getting the lowest rate possible.

One last perk!
Another benefit of leasing versus buying? Depending on the miles you drive, your car will always be under warranty! Most leases are structured to keep the owner under warranty for the term of the lease, meaning no unexpected repair costs.

-KF

Gary Numan's 1980 Classic Track 'Cars'.

Gary Numan's 1980 Classic Track 'Cars'.

“Here in my car… I feel safest of all… I can lock all my doors… It’s the only way to live… In cars…”

Maybe, Gary Numan’s new-wave synth pop doesn’t make your drive anymore inspiring… how about some Def Leppard? Van Halen?

So what song makes you feel good when you’re driving or make you want to go out and drive?

Imagine yourself on the favorite stretch of highway, with the windows rolled down or top down. As you reach for the audio control buttons, which songs get your heart pumping or soothe your soul for maximum driving experience?

In the comment section, post your favorite 5 songs for your driving pleasure.

-KF