SMALL WONDERS: Small cars

Which one can you get for 12 grand? The FIAT 500!

Thankfully, it is not a trend anymore. But, it was starting to look like one when MERCEDES introduced the SMART car in 2008. With all due respect, that was a big mistake for BENZ. This little creature was good for nothing.

Environmental friendly? No! The price was too high for its size, mileage was no better than some other cars, it was noisy and extremely small. In my opinion, it is not "SMART FOR TWO." It is stupid for even one.
Even though CostCo membership is out of the question, life insurance is mandatory. Let's be honest, the SMART car is so small that nothing will fit in it, but, you better have life insurance because if you get in an accident, it will be fatal.

However, there is one “hidden” advantage.You can park it in your own living room.
Still wondering? Please, don’t.

The MINI COOPER is a much better choice. Driving this little wonder is a joy all day long.
It’s so cute, I never get sick of looking at it. The MINI has five models already and they are all head-turners.
It has a 48-month warranty, good mileage and excellent resale value, which makes it very appealing.
There is one big unpleasant issue. Even though you are getting a 48-month bumper-to-bumper warranty, you still have to drive it to the dealership very often. It's for much more than just the regular maintenance, if you know what I mean. That’s why most MINI owners never buy one again.

FIAT 500 is just a baby, only 2 years old. Very cute, classy retro, 100% Italian. It’s like a macchiato: small, but, strong and very tasty. It's a pleasure to drive around town and on the highway. Mileage is pretty good, but reliability is unknown for now. It’s too new.

So, attention, single ladies! The design and colors make guys look at it twice. Your chances of getting noticed are dramatically increased if you drive one! Nobody has to know that you got it on sale.

There are very steep discounts in ads. Looks like the basic is available for around 12 grand. The best price for the size, if you like it tiny. For me, it’s too small. I’m waiting for the 4 doors version, which is coming very soon. Then we will talk again.

For now CIAO, BAMBINO.

The SUV Love Affair

(P.S.: Why you can get a $6000 off Deal on Nissan ROGUE 2013 at the Universal City Nissan Dealership)

What else could it be? Love is blind. SUV drivers were paying a high price for sitting in a high chair to see more, but couldn't even see how many nice cars were moving around them. What's more, the mileage is terrible, cargo is mediocre, no extra safety advantages in crashes, rollover is always a hazard and similarly equipped cars cost much less.

As a matter of fact, the domestic auto industry was in luck when SUVs took off. For them, the truck was always the most profitable product. It became even more profitable on SUVs, when the industry built it on the truck platform. The EXPLORER was the biggest success (based on F-150*).

Money was pouring into Ford's pocket like there was no tomorrow. Instead of spending money to improve this success, they went on a shopping spree: JAGUAR, ASTON MARTIN, VOLVO, RANGE ROVER and MAZDA. They were the dumbest investments of the century (They were sold later with huge losses). The EXPLORER is still in the Ford portfolio, but with no success, whatsoever.

The JEEP GRAND CHEROKEE was another huge hit for CHRYSLER. Just wondering - where did all the money go?

When oil prices took off, all the SUVs were looking for the automobile cemetery. The solution came quickly. Instead of the truck platform, the car platform came in. Better mileage, car-like ride, and still sitting high (a must-have option). Now they call it the CROSSOVER. And the Love Affair is back - bigger than ever. The popularity is so high that they are outselling all other segments. So, if You must “crossover”, consider the following trio.

The HONDA CR-V is the leader for now. Quality, mileage, reliability and compatible price makes it irresistible for HONDA lovers. Looks good, too, surprisingly. But, there are no deals, as usual, on HONDAs.

The TOYOTA RAV-4 is so popular that they dropped the third-row seating and the optional V-6 for the redesign of the 2013 model. Smart move! It is very smooth, slick, reliable and well equipped. Easy to buy, also. Discounts are all over town. The interest rate is extremely low: very close to zero. It is a really tempting buy.

The NISSAN ROGUE is aging. Totally redesigned, the 2014 should be on dealer lots in a month or so. Most people are waiting for it. I wouldn't.

The 2013 ROUGE may be an older model, but, it is still very competitive. Obviously, NISSAN is trying to clear its inventory. I would take advantage of it. The price is what matters. Right now, $6000 is the average discount. Universal City Nissan on Cahuenga Blvd has about 150 of 2013 ROGUE (http://www.universalcitynissan.com). Other dealers have about 50-100 cars.

That’s a big opportunity for those of us who are looking for a real bargain. And I always am.

* - F-150 Pickup Truck

Medium class for the Middle class
A 3-5k discount on the Camry...It's possible.

The middle class in the US is shrinking. That’s a sad fact. But, let’s talk about the middle class sedans, which are expanding enormously.

Not so long ago, it was quite simple to make a decision. If you looked to the right, there was the Camry, and if you looked to the left you saw an Accord.

The popularity of these two cars were so high, that the high quantity started to negatively impact the quality and updates, especially on the Camry. The first slap came from Nissan.

When the Nissan Altima was introduced as a totally redesign mid-class sedan, everything changed. It was beautiful, modern and fun to drive. Consumers were happy. Even Consumer Reports in 2010 named Altima the Best Car.

Toyota And Honda had to do something- and they did. The Camry was vastly improved, as well as, the Accord, which was redesigned to the max. But, competition never sleeps.

Suddenly, the new Hyundai Sonata hit the market. And then the Ford Fusion, Kia Optima and 2014 Mazda 6. I will not mention others for obvious reasons. Nobody wants to be singled out from the crowd, pay more and get less. So, how do you choose?

You can't go wrong with any of these mid class sedans, but, there are some differences.

Here is the short take.
ACCORD is the most luxurious and expensive in this segment. Everything makes sense on this vehicle, except the experience at the dealership. It is a very unfriendly environment. Test drive for an Accord? No more than 5 minutes. Discount on an Accord? What do you mean? It’s a Honda! No discount. Never, ever. Take it or leave it. It’s up to you, but, I will leave it.

CAMRY is the best selling car in the US. They really “make it easy on you”. The Camry is comfy for the whole family; good on mileage and very reliable. Also, the dealers are dealing. On any given Sunday or Saturday, there are at least 5 Camrys on sale. And usually, a 3-5k discount. Not bad at all.

Medium class for the Middle class (continued)

(Last entry, I was talking about medium class sedans...)

The ALTIMA is my favorite, so far. It has a bit of a sporty feel on top of everything needed in a family sedan. It’s quiet, has a punch in the city, effortless on freeways and always looks good in any color. The SL package is beautiful, but don't expect a deal on it. The regular model is a different story. It's easy to find one under 20 grand. I would go for it.

The SONATA and the OPTIMA are sisters. They have the same parents: from Korea. The new Sonata was born first. It was a huge success. The exterior design was so modern: sleek and futuristic, people couldn't resist it. And with a 5-year warranty offered by Hyundai, it was a deal buyers could not resist. But, suddenly, breaking news came in: Hyundai was lying about MPG. Yep! So, the Consumers turned around and left.

The OPTIMA has a similar story, but no breaking news, yet.

The FUSION is the most beautiful car in the Ford lineup for a very long time. Even James Bond would like it for a second (maybe), since it has an Aston Martin front grill. But, the excitement ends right there.

One thing we all have to admit, Ford is trying really hard. And hopefully, with the new CEO due to start in 2014, it will succeed.

The MAZDA 6 was never a bad car. But the unsuccessful marriage to Ford was ruining its quality and its sex appeal. Thank God they divorced.

Mazda returned to Japan and finally a new child was born: 2014 Mazda 6. It’s rich and beautiful.

What a combination! Can't wait to put my hands on it. From what I'm hearing, it is awesome. I have a feeling it will be my new favorite.

The Hybrid Invasion

Like it or not, it’s here.

The revolutionary change since the automobile was invented... Almost every car maker has it. But, the pioneer was Toyota, who still dominates the market with its legendary Prius. Compared to the Prius, every other hybrid car looks pretty much the same as its gas-guzzling counterpart. You have to look really closely to tell if it’s a hybrid or not. That is precisely why the design of the Prius was revolutionary. If you want to make a statement, there is only one choice- the classic Toyota Prius. 

There was a time when dealers had three to five thousand-dollar mark-ups on this miracle baby. Success was so big, that Mr.Toyota started making Priuses like Mr.Bernanke was printing Benjamin Franklins on $100 bills. 

Times have changed. When inventory swells, prices shrink. There are no dealer mark-ups, no waiting periods. What’s more, you can buy a Prius with a substantial discount. Now the Prius has a smaller and a bigger version. The small one looks like a Yaris, and the big one is one ugly station wagon. It's no wonder why you will see very few of either of these two versions on the streets of LA. 

To make a statement, the classic Prius is a “must have” choice. But, is it really a good choice? 

Well, if you are a taxi driver, a pizza delivery guy, or drive only the city streets 99% of the time, it makes sense to save some money on gas. Technically, the Prius still delivers the best MPG (miles per gallon) on the market. But, lately, some other small cars are coming dangerously close to the Prius in its high MPG. They are much cheaper and more fun to drive with the latest driving technology. 

Actually, here is my “little secret”- most hybrids are better than the coveted Prius. Surprised? Don’t be. They hold the beauty of the traditional driving experience, but when you need it, they use the Prius technology. Now you have a  little bit of dilemma, don’t you?

New Car: Buying vs Leasing: Who Is Really Getting Ripped Off?

It's your choice.

But, why would you choose the more expensive option?

Leasing is for wealthy people. They like to drive a new car every 2-3 years. Who can blame them? It is fun. Those beautiful driving machines are not cheap. Well, let's just say it: they are very expensive. The person driving one of those cars probably wouldn't admit it. They will tell you, “Oh, I didn’t buy it, I’m just leasing it for $900 a month.” Psychologically, I guess it feels good to drive a $75,000 car for “just” $900 a month.

Of course, dealers just love these customers. You want to know what the leasing requirements are?
High credit score, full insurance coverage, low mileage at the time of return and a hefty down payment... And they come back every 3 years.

Did I mention the clause about the condition of the vehicle? Leasing agreements clearly state that the vehicle has to be in same condition at the end of lease as in the beginning. The same! It sounds ridiculous, but it’s true. Can you do it? I can’t. There is no way a regular driver could avoid "wear-and-tear" scratches on the vehicle. So, every scratch becomes a penalty. More money for the dealers!

Finally, do not forget over-mileage penalties! Usually, 10,000 miles a year is offered for free. However, every mile over the limit is extra from your own pocket. Wow!

Can you see how this all starts to add up? "Not cheap" is an understatement.

Amazingly, the dealers are getting back the cars with no scratches, low mileage and in perfect condition to sell them again!

TV commercial advertisements are mostly for leases. AMAZING DEAL: ONLY $199 A MONTH.
But, is it really an AMAZING DEAL?
It never is. You don’t have to have an accounting degree to figure it out.

There is one very important number you have to pay close attention to.
By law, a leasing company has to figure out the “RESALE VALUE” of the vehicle for when the lease expires. And it has to be clearly printed in the leasing agreement. No wonder they know exactly how much it will sell for.

This is the only number that’s negotiable when leasing.
So, let’s try to lease a regular HONDA CIVIC. We will round the numbers for ease of calculation.


MSRP: $20,000 (sticker price)

36 months x $200 = $7,200 (Monthly payment)
Down Payment: $2,000
Resale value: $15,000 (Determined by the dealer)

This is how much you are paying when you lease it.
$15,000 + $7,200 + $2,000 = $24,200

Again: MSRP: $20,000

An extra $4,200! AMAZING DEAL or AMAZING RIP OFF?
Once again, it's your choice.

Toyota Corolla 2013 - Last Chance for a Great Deal

The Toyota Corolla has been around forever. Conservative, predictable, solid, quiet and very reliable. Everybody knows and respects her. But CHANGE is inevitable. The Toyota Empire has no choice, but to change the COROLLA for the modern world.

The 2014 model will be here this summer. Korean design of small cars had a strong influence on Toyota.(Think South Korean Hyundai with lots of cool technology and gadgets, not North Korea with tanks and missiles) So, the NEW COROLLA will be no exception.

2013 Toyota Corolla

But let's talk about 2013. This is your last chance to get a Corolla for an exceptional price. There are LE and S models. S stands for Sport, but it only means an added body kit for about an extra 3k and is rarely on sale. On the other hand, LE has everything you need and nothing you don’t.

MSRP (window sticker price) is about $19,000. And here is the best part: $5,000 off!

So, for around $14,000 you can drive a totally trouble-free car for a very long time. No warranty extension, please.

Also, every TOYOTA dealer still has plenty of these cars. And Toyota Empire is giving strong financial support to the dealers to say "Good-bye" to the QUEEN.

So, while you're sipping your favorite latte on Saturday morning at Starbucks, be sure to look at the Los Angeles Times marketplace ads. Right on the front page you will see TOYOTA COROLLA LE on sale. First, grab the ad, and then grab the QUEEN. You will be glad you did.