Category Archives: Brands

Cool Cars, Honda

The Honda S2000 Will Probably Become A Future Classic

Leave a comment

Hey Cool Car Fans,

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

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

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

WHAT ABOUT REPAIRS ON AN OLDER VEHICLE LIKE THIS ONE?

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

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

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

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

Finally, if you want to read another perspective on why it’s a great time to look at this vehicle as a potential buyer be sure and check out the article over at TheDrive.com called Why Now Is The Time To Buy A Honda S2000.  If you decide this is a vehicle you want to own just get back with me and I’ll track it down.
_________________________________________________________________________

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

Loading

Cool Cars, Mercedes-Benz

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

Leave a comment

Hey Cool Car Fans,

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

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


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

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

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

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

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

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

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

 

 

 

 

 

_________________________________________________________________________

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

Loading

Cool Cars, Tesla, Volkswagen

The Fascination With The Disposable Electric Car

1 Comment

Hey Cool Car Fans,

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

WHY ARE ELECTRIC VEHICLES “DISPOSABLE”

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

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

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

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

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

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

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

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

I like vehicles that you can recycle and that are not expensive disposable products. The sucker who buys that 2008 Tesla Roadster for the last time before the batteries die is like the same guy at the bottom of a pyramid scheme.  Eventually, he’s going to lose all of his money and have a nice lawn ornament or they will put it at the entrance to a junk yard as a novelty item from years gone by.
_________________________________________________________________________

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

Loading

BMW, Cool Cars, Toyota

The Incredible Depreciating Luxury Car Market

Leave a comment

Hey Cool Car Fans,

I really enjoy driving European and other luxury brand vehicles, such as Audi, BMW, Mercedes Benz and other high-end cars. Who doesn’t? They often have great technology, handle extremely well on the road and have fantastic performance. However, everyone knows that there is a cost involved in driving these vehicles and so once they are out of warranty they tend to depreciate like a rock.

THE TOYOTA RAV4 VS THE BMW X5

The other day I had a client call me about consigning his 2011 Toyota RAV4 LE, so a base model vehicle with a sunroof, and it had out 60,000 miles on it. I looked up what the trade value would be on his vehicle if we didn’t consign it and I just sent it to the dealer auction. It was $10,000 based on what they have been selling for at auction.

As the conversation progressed, he said that he was thinking that he might want to also get out of his 2010 BMW X5 with the 4.8l motor that was pretty hard loaded. It had more miles than the Toyota RAV4 with around 94,000 miles on the odometer. I looked that one up for him as well and to his shock and amazement it was selling at auction for the same price as the 2011 Toyota RAV4, which was about $10,000 for a trade-in value.

That’s pretty unreal considering the 350hp 2010 BMW X5 4.8l had an MSRP of $56,300 before adding in all the options for the vehicle. It’s more like $60,000 to $65,000 by the time you start adding options on a vehicle like that one. And that’s compared to a 179hp 4 cylinder 2011 Toyota RAV4 LE with an MSRP of about $25,575. So, you have a high-performance german luxury brand that is over twice the amount of money new selling 7 to 8 years later for the same amount of money at auction and at retail as a basic Japanese SUV. Which means that if you’re into European vehicles be prepared to lose money or you can buy them at a substantial discount.

WHY DO MORE EXPENSIVE CARS LOSE THEIR VALUE SO MUCH

It seems pretty amazing that a more expensive vehicle would depreciate more than a less expensive vehicle, but part of the problem is the cost of parts and overall repair costs. Many times people who own a less expensive vehicle will work on vehicles themselves rather than taking it to the dealership for repairs. These people don’t count the time that they are spending fixing brakes or doing oil changes or other repairs into their overall cost of ownership. Most people who own more expensive vehicles don’t tend to work on their own vehicles, so they take it to the dealer at $150 to $200 an hour. They don’t always think about the fact that they could be going to a less expensive repair shop, with a lower hourly rate, for some of their more basic repairs.

For example, I had to replace a radiator overflow in a 2011 BMW 3 Series and the local BMW dealer wanted $500 to do it. I found the part on Amazon for $80 and had a local repair shop install it for me for a half hour of bill time for $50 and a $500 repair turned into a $130 repair. You can’t find after-market parts for most high-line vehicles for the first few years of production, so you have to wait a few years before you can find other options for parts than the dealership. The parts can be very expensive, which is one of the reasons why these vehicles do not hold their value the way the Toyota or Honda vehicles do. It’s a supply and demand issue because people want to have lower repair costs.

Basically, you can thank the dealers and the mechanics for depreciating your Euro luxury vehicles. If you know what you’re doing you can get a great deal on a luxury performance vehicle a few years old. Which is the case for The Cool Car Guy because I like driving vehicles that sold for $65,000 new for $10,000 to $20,000.

Of course, I shouldn’t be telling people this because the more people who figure this out the more expensive these vehicles are going to be and they won’t depreciate as much based on supply and demand. The reality though is as long as the majority of people keep wanting to drive a 7 or 8 year old Japanese vehicle for 50% off, I’ll keep telling my clients that they can be driving the equivalent year high-performance vehicle for 70% to 85% off and laugh all the way to the bank.
_________________________________________________________________________

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

Loading

Mercedes-Benz, Tesla

Mercedes Benz Billion Dollar Electric Vehicle Investment

Leave a comment

Hey Cool Car Fans,

It started with Tesla getting millions of people fired up about electric vehicles over the last decade and now Volvo is planning to go all electric in the future with their cars.  Mercedes Benz has announced that they are going to be spending a $1 billion investment into their manufacturing hub in Alabama…

“The investment will go both to an expansion of the German luxury brand’s existing plant near Tuscaloosa and to build a new 1 million-square-foot battery factory.

While electric vehicle sales have been tepid overall, Mercedes has watched as Tesla jumped out has become a formidable player in the super-premium segment with its electric Model S sedan and Model X crossover. Now Tesla is threatening the lower, entry-level part of the luxury market with its lower-priced Model 3 sedan. 

The company is pursuing an “anything Tesla can do, we can do better” strategy,” – USAToday reported.

This is for the production of its all-electric EQ SUV.  Which is going to be the first all-electric SUV from Mercedes Benz and it’s going to be a big deal as more car companies are getting into the electric automobile market.

ARE ELECTRIC VEHICLES REALLY THE FUTURE

The consumer is driving the move toward electric vehicles with the success of Tesla in the marketplace and as people want a choice beyond the combustible engine.  What most people fail to realize is that the electric vehicle is the ultimate in planned obsolescence.  Car companies were accused of this tactic for years back in the 1970’s and 1980’s when vehicles would have parts that would break or wear out and have to be replaced.

A petroleum based engine is designed to run on gasoline or diesel fuel and it can be rebuilt.  When batteries wear out they are finished and have to be replaced and it can be extremely expensive.  Some people argue that this is no different than rebuilding an engine that can also be expensive.

THE COMPUTER AND CELL PHONE LESSONS

The problem is that the batteries that work today probably won’t drive the vehicles of tomorrow.  Car manufacturers are in the business of selling new vehicles and not updating used vehicles to the newest technology.  Nowhere is this more true than in the cell phone and computer market.  Is Apple offering an “upgrade” path for your original iPhone?  What about your 386SX computer from the 1980’s?  They are dead.  If you want to upgrade an old cell phone with the latest technology you have to buy a new cell phone.  It’s not any different with the future of the electric vehicle.  The cost to replace batteries are not going to be less, but they are going to be more.

You can see this with the Toyota Prius, but the difference is that your Prius can also run on gasoline, so it just becomes a heavy Corolla if you don’t replace the batteries.  This is a photo of a 2001 Toyota Prius with about 266,000 miles on it.  The cost for a replacement battery after 16 years is more than you would pay for the entire vehicle.  If you do some research you can pick up a used battery pack for about $1,600.  Proving the reality that EV batteries are not a sustainable long term technology nor will they be supported at a reasonable price.

The challenge for electric vehicles is not the new car market for consumers, but it’s actually the used car market.  Most people are afraid of buying electric vehicles that are five years old and having to replace the batteries in the future.  The lifespan of batteries in electric vehicles today is about ten years, like in a Toyota Prius.  It’s pretty difficult to convince someone to pay top dollar for a used electric vehicle when they are concerned about the battery life and the cost to replace the batteries.  In 2015, Autoblog.com had an article titled “Tesla Roadster battery pack replacement will cost $29,000”.  That’s crazy expensive for another 10 years of battery life in an older vehicle.  You don’t hear too much talk about this though from the media and Wall Street darling do you?

Which brings me back to the fact that Mercedes Benz is  making a billion dollar investment into electric vehicles.  Why wouldn’t they?  The consumer is failing to realize that they are helping to sell the car manufacturers on turning their vehicles into a very expensive appliance, like their cell phones and computers.

In the meantime, for all of those petroleum haters out there, this is a 1970 Nova SS Tribute that I spotted on the Manheim Dealer Auction for around $25,000 plus shipping and dealer profit.  You could get this super cool vehicle that is still worth almost as much as those expensive Tesla batteries after 47 years of driving.  And for only about $10.00 in gasoline drive it down the road without having to update anything.  Best of all, this vehicle should be worth about the same or more in another 47 years where that electric vehicle is destined for the crusher.  Which is why classic petroleum based vehicles are the ultimate in recycling!

_________________________________________________________________________

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

Loading