PriceHub

Happy Birthday PriceHub!

noreply@blogger.com (PriceHub.com) — Sat, 27 Jun 2009 09:09:00 +0000

Two years ago, we started PriceHub to bring price transparency of vehicles to the mass consumer. Our goal was to provide a place where people can find the actual selling price of cars and trucks. Two years have passed, and we now have a robust database of selling prices for just about every car, from the everyday Honda Accord to the exotic Ferrari 360. Many users now visit our site before they complete a vehicle purchase or sale transaction. There are also many people who visit the site just to track vehicle prices and to follow market trends. Our goal for this next year is to continue to provide valuable information on pricing for people who want to see actual vehicle prices. We have a few site upgrades in mind, and we'll reveal new features as they are rolled out. Please continue to send us feedback because we like hearing and getting people's opinions about our site. And oh, by the way, Happy Birthday PriceHub!

Carfax reports - a great start, but don't trust them completely

noreply@blogger.com (PriceHub.com) — Thu, 04 Jun 2009 05:32:00 +0000

In the latest print version of Consumer Reports, there is an article that details why it isn't prudent to completely trust Carfax and other used vehicle history reports (AutoCheck & VINCheck included).

While these reports are great at documenting the official history of a car - when it was bought, when it was sold, what the mileage was when it was sold and whether the car was totaled, Consumer Reports found that cars that are involved in serious accidents but are NOT totaled don't necessarily get an entry in its Carfax record. These types of cars can have clean Carfax records even with serious repair and body work. In fact these cars that have clean titles fetch more money at auto auctions since the clean title will allow shady dealers to sell the repaired car as having a clean Carfax record.

As a part of the due diligence of buying a used car, just keep in mind that a clean Carfax or other type vehicle history report shouldn't be the only factor you look at when purchasing a used car. Make sure you inspect the car for any visibly repaired body damage (to name a few):

- misaligned fenders with the body
- different shades of paint on the car
- different textures of paint on the car
- over spray of paint onto surfaces that should have paint on them (like the wheel wells)

All of these things can tell you if a car has been repaired or not. For more minor damage, there is a good chance there is no entry for the incident on these reports either. If you need to, bring along a friend who knows cars or have the car inspected by a professional mechanic.

I personally think Carfax and the other report services are great - these reports provide access to car history information that once was near impossible to get. Just don't forget to use these reports as one of the many factors you should evaluate before buying a used car.

The $40,000 Electric Volt

noreply@blogger.com (PriceHub.com) — Sat, 18 Apr 2009 10:22:00 +0000

General Motors, despite its financial turmoil, is still moving forward with plans to launch the Chevy Volt in the fall of 2010. However, those plans may be derailed if General Motors doesn't get a government bail-out and falls into bankruptcy. General Motors is hoping to launch the Volt with a price tag of about $40,000. However, the company also estimates that it needs another $750 million to complete the development of the Volt. After it's all said & done, that price tag will probably rise to $50,000 and if the Volt makes it to market, it may have a hard time competing with the Toyota Prius and Honda Insight at $25,000 to $30,000.

Flying Car

noreply@blogger.com (PriceHub.com) — Sun, 22 Mar 2009 21:24:00 +0000

Just read about this flying car on the China Daily News. This vehicle will allow you to drive or fly to the grocery store. The flying car was built by a company named Terrafugia, a spinoff from MIT. While this is a novel idea, I'd hate to see what the insurance is on this.

Certified Pre-Owned hybrids from Toyota

noreply@blogger.com (PriceHub.com) — Fri, 13 Mar 2009 20:54:00 +0000

Toyota just announced that they are going to certify pre-owned hybrid vehicles. Obviously, these certified hybrids will command a premium over their non-certified counterparts.

However, you are getting this additional warranty:

3-month/3,000-mile comprehensive warranty
7-year/100,000-mile limited powertrain warranty¹
7-year/100,000-mile roadside assistance¹
174-point quality assurance inspection
CARFAX® Vehicle History Report™
8-year/100,000-mile factory hybrid battery warranty¹
Standard new-car financing rates available

For potential used-Prius owners, the 8 yr battery warranty could help alleviate some anxiety. It will be interesting to see how this affects used Prius prices.

Here is the announcement from Toyota.

See the brand new Honda Prius... I mean Toyota...

noreply@blogger.com (PriceHub.com) — Tue, 24 Feb 2009 21:54:00 +0000

Is it me or does the new Honda Insight look just like a Toyota Prius? Motive Magazine has the scoop.

New feature: Comment on Prices

noreply@blogger.com (PriceHub.com) — Fri, 20 Feb 2009 04:53:00 +0000

We just added the ability to comment on the prices for each make and model on our site. We felt that by letting our users comment directly on the prices for a car or truck, we could help consumers get an even better sense of new & used car prices.

Try it out!

Bye Bye Fun Cars

noreply@blogger.com (PriceHub.com) — Fri, 30 Jan 2009 08:22:00 +0000

Due to the slow economy and poor market conditions, car manufacturers are downsizing their product lines and cancelling the production of cars that they consider to be slow sellers, non-practical and/or gas guzzlers. We've got word that cars like the Honda S2000, Dodge Viper, Hummer H3, Lexus SC, Saturn Sky, and Chrysler PT Cruiser are all cancelled for production in 2009 and beyond. This is unfortunate, as many of these are fun, iconic cars that also serve as a technology showcase and halo model for that manufacturer.

Auto Marketing 101 - The Starting Price of a Vehicle

noreply@blogger.com (PriceHub.com) — Mon, 19 Jan 2009 08:45:00 +0000

We've noticed that marketers at car companies have started to change their marketing tactics. They no longer tout performance features like 400 horsepower or luxury features like navigation systems. Nowadays, many of the ads just jump right to the point and highlight the thing that matters the most -- the price, which is usually presented in a "starting at $xx,xxx" format. Here are a few examples from a random sampling of this week's ads:

Chevrolet Aveo - 34 MPG Hwy, starting at $12,120

Hyundai Tucson - Ginormously Small, Starting at $17,420

Mazda6 - 0.0% Financing for 36 months, Starting at $19,220

Volvo S40 - Starting at $28,550

Of course in reality the "starting price" is just the teaser and no one really gets to buy a car at the starting price. I wonder, does the slogan "truth in advertising" apply to the auto industry?

President Obama's Limo

noreply@blogger.com (PriceHub.com) — Wed, 07 Jan 2009 05:17:00 +0000

Here is a spyshot of President-elect Obama's limousine - it's a Cadillac that has 8 inch thick doors. While it doesn't quite resemble any one model, it does have the hand stitched seats and familar Cadillac logo. It hasn't been painted black yet, but it will by 1/20.

Use the Toyota Prius as a life saving generator

noreply@blogger.com (PriceHub.com) — Sun, 28 Dec 2008 04:22:00 +0000

In a recent snowstorm in the Northeast, one Toyota Prius owner used his hybrid to run his refrigerator, TV, freezer and heater during the power outage. For 5 days, his trusty Prius was able to power his home and keep things running.

The Toyota Prius brings new meaning to the word 'utility'. Maybe it should be a called a HUV or hybrid utility vehicle.

C.O.D - Cash On Delivery for Chrysler

noreply@blogger.com (PriceHub.com) — Fri, 12 Dec 2008 20:47:00 +0000

In the latest news from AutoBlog, part suppliers are asking Chrysler for COD terms ontheir merchandise. Cash On Delivery - no more credit.

As suppliers become more and more weary of the Big 3's ability to come out of this mess, they are going to trust the credit of the Big 3 less and less. Stay tuned.

Why Auto Insurance Continues to Rise?

noreply@blogger.com (PriceHub.com) — Fri, 12 Dec 2008 07:28:00 +0000

When gas prices soared earlier this year, people started to drive less. And with less driving, that should mean fewer accidents which should translate into lower auto insurance for consumers.

There are a couple of other supporting factor which in theory should drive down auto insurance rates. The battered economy and looming recession has brought car prices down, especially used cars in the luxury or gas guzzlers variety. As a result of lower car values, auto insurance rates should decrease because insurance payouts for totaled, stolen, or salvage cars should be lower. Also, modern cars are superior with advance technology in safety to reduce injuries in the event of an accident. For the 2009 models, it's not uncommon for a car to have 6, 8 or more airbags.

Despite all this, why is it that auto insurance continues to rise?

Facebook Valuation is like a Zillow Zestimate

noreply@blogger.com (PriceHub.com) — Tue, 25 Nov 2008 02:57:00 +0000

The latest word on the street is that Facebook initiated discussions with Twitter for the purposes of buying the micro-blogging service. However, according to TechCrunch, the talks broke down partially because Facebook wanted to make the purchase with mostly stock (at a $15B valuation). The sticking point was that Twitter executives and investors didn't think that Facebook was actually worth $15B and decided against a deal. Even if Microsoft did just invest $240M into the company at that stratospheric valuation, other people were apparently not believers.

This same phenomenon is happening with Zillow Zestimates, at least here in the SF Bay Area. Zillow uses a proprietary algorithm along with historical home sales, local trends and lots of other 'black box' stuff to come up with a Zestimate (what your house is worth today) for your home. The problem is that this Zestimate is often times $50K-$200K higher than what you can actually sell it for (at least in the areas that I've looked). It obviously depends on each house, but most Zestimate values need to be discounted by a healthy percentage to get to a home's true value today.

While these two examples do not seemingly have any tie to actual car prices, they do underscore the need that all consumers have to know the actual price paid for something that has an opaque value (a house, a stock, or a car). In fact, the best way to know what something is truly worth is to know what someone else is willing to pay for it. With Facebook, Microsoft may have overvalued the company just for the opportunity to participate. With Zillow, since each house is different, each person's value will be different. With cars, which are commodities for the most part (with mileage, condition & location as the biggest variables), value can be derived directly from what other people paid for the same car.

With over 17,000 actual sales price data points for new & used cars, we're hoping that the actual values you see in our data will represent the true value of the car, not an inflated value that you don't completely trust.

Mitt Romney on the Auto Bailout

noreply@blogger.com (PriceHub.com) — Mon, 24 Nov 2008 00:34:00 +0000

The big news of the week has been the proposed big 3 US automaker bailout by the government. Should the government save GM, Ford and Chrysler from bankruptcy? Should they let the companies suffer the consequences of decades of poor decision making and mis-management?

Here is a great editorial on the situation from Mitt Romney - a former Republican presidential candidate from this year's election. Romney has a unique perspective on the situation since his dad used to run American Motors (produces of the wonderful AMC Pacer and Gremlin).

Romney's position on the matter is pretty obvious, given the title of his op-ed: Let Detroit Go Bankrupt in the NY Times.

A few facts about the US auto industry compared to foreign companies who have manufacturing plants here in the US:

- US autoworker: $71 per hour (including benefits)
- Foreign autoworker (at a US plant): $47 per hour (including benefits)
- $2000 - the additional cost per car that US automakers must shoulder due to the massive union contracts and benefits they must pay out. With margins already so slim on new cars, it's pretty easy to see why the big 3 are having problems making money.

A must "see" for all of you Rubber Neckers!

noreply@blogger.com (PriceHub.com) — Wed, 12 Nov 2008 03:39:00 +0000

Why is it that every time there is a car accident on the freeway, people insist on slowing down to rubberneck? When there are wrecked cars blocking the roadway, I can understand. Otherwise, I think people just can't help themselves to see how bad the wreckage is.

For all of you rubberneckers out there (myself included), I came across this site that you'll love. WreckedExotics.com is site that has pictures of expensive, wrecked cars. Since the Porsche 911 is one of the more popular cars on PriceHub, I'll use this as an example:

The site has tons of pictures that chronicle the destruction of European and American aluminum, steel and glass. There is enough carnage here to satisfy even the most curious rubbernecker.

Don't miss these wrecked police cars either.

GM or Ford to buy Chrysler?

noreply@blogger.com (PriceHub.com) — Sat, 01 Nov 2008 01:57:00 +0000

The big 3 U.S. automakers are in trouble, especially GM and Ford. Word on the street is that both are looking to acquire Chrysler to consolidate operations, cut costs, and take the #1 position as the global auto sales leader from Toyota. However, such an acquisition would require a large amount of cash that neither company has. GM is burning more than $1 billion in cash each month, and Ford is burning more than $2 billion a month. Therefore, to pursue Chrysler, GM or Ford would have to raise cash, which is going to be near impossible with the current financial markets. And at the current burn rates, there's a possibility that GM or Ford might even run out of cash in late '09 or '10. Will the U.S. government have to step in and bail out the U.S. auto industry like they did with the financial industry?

Is the economy driving car prices lower?

noreply@blogger.com (PriceHub.com) — Wed, 01 Oct 2008 04:54:00 +0000

The recent financial crisis and economic turmoil appears to have an effect on car prices. This is not surprising given that people generally become more conservative in poor economic climates and hold off on making big purchases.

In the automotive marketplace, new car dealers are going to see fewer buyers which will pull actual selling prices down. But for used car transactions, whether it's at a retail used dealer or private party transactions, we could see either stable/slightly increasing prices OR falling prices. Which way the prices will head towards will be determined by the vehicle make/model.

For example, the used market for luxury, SUV, and other gas guzzling vehicles are likely to deteriorate while the used market for hybrids, compact/economy, and gas efficient cars will thrive. With the economy headed for an apparent recession and gas prices still near record highs, people are dumping luxury cars, SUVS, and gas guzzler vehicles. The Ford Expedition or the BMW 530i that used to sell for $30k just a couple of years ago has no takers unless the prices drop below $10k.

In a quick scan of the online classifieds, dealers and private individuals are still using KBB or Edmunds to list their luxury, SUV, and gas guzzler vehicles at above market prices. However, after the negotiations are over and when the car or SUV is sold, the real selling price is often much lower than the listing price and the published KBB or Edmunds price.

Let's take a look at the KBB private party transaction value for a 2003 Ford Excursion V8 4WD:

KBB Good Condition: $10,255

However, a quick scan of the PriceHub database shows just one of three 2003 Ford Excursions as having sold for more than $10,000 in the last 3 months.

http://www.pricehub.com/price/Ford/Excursion

For the hybrids, compact/economy, and fuel efficient cars, the real selling price will likely be closer to the listing price if derived from published KBB or Edmunds price.

What does this all mean? This means that the changing economy is affecting real market pricing for cars & SUVs, and the best way to get a good sense of the real selling price is to look at actual transaction data instead of the so-called published KBB or Edmunds price.

Buy a 1999 car at 2004 price, or vice versa

noreply@blogger.com (PriceHub.com) — Fri, 12 Sep 2008 07:18:00 +0000

Most auto manufacturers produce a particular vehicle for 4-6 years before overhauling it and releasing a newer generation (new styling, new chassis, new engine, etc). Sometimes, car dealers will take advantage of the similar looks of a vehicle throughout a particular vehicle generation. For example, a '99 Porsche 911 looks very similar to a '04 Porsche 911.

'99 Porsche 911 (top) vs '04 Porsche 911 (bottom)

Both are from the same generation (by Porsche's internal identification, the "996"), but the more recent model usually command a higher price than the older model. You'll see ads for a '99 vehicle that read "Looks like a '04 model", and you can bet that some dealers will price that '99 vehicle at the '04 price range to take advantage of unsuspecting buyers.

Knowing this information, smart buyers can also take advantage by buying a vehicle that's produced earlier in that generation for less money than a vehicle that was produced later that generation. This of course, assumes that factors like mileage, options, engine upgrades, etc. are similar and not too different. So, if you are looking at a '03 BMW 5-series, you may also want to consider a '00 model because both are from the same BMW 5-series generation (the "E39" generation) and both look the same, but the '00 model has a lower value than the '03 model, and the '00 model could represent a bargain for the savvy buyer.

Land Rover - Buy 1 and Get 1 Free

noreply@blogger.com (PriceHub.com) — Fri, 05 Sep 2008 19:06:00 +0000

We're hearing that Land Rover of Ahaheim Hills, CA is offering current Land Rover owners a crazy promotion - Buy 1, Get 1 Free. That's right, buy or lease a 2008 Land Rover and get a 2006 Land Rover LR3 for "free". Technically, it's just a free 2-year lease on the LR3, but still I don't know of anyone that would balk at getting a fairly new Land Rover to drive around for free for a couple of years.

The reason for this promotion is likely the continued weakness in the luxury vehicle market & the economy, along with people continuing to opt for fuel efficient vehicles instead of gas guzzling SUVs. Sales of large trucks and SUVs have plummeted and it's not surprising that this particular Land Rover dealer is trying to be creative in getting people to buy.

The interesting scenario is that most large trucks & SUVs have experienced accelerated depreciation in the last 6-12 months due to high gas prices, and many of the current Land Rover owners are upside down if they financed their Land Rover purchases. So, it's hard for current Land Rover owners to take advantage of this offer without suffering a financial loss. The gentleman that forwarded us the promotion details stated "I still owe $34k on the 2003 Range Rover that I bought, and the trade-in value has now dropped to $20k. As much as I would like to upgrade to a 2008 Range Rover and get a free LR3 for my wife, it just doesn't make sense for me to cough up another $14k for the priviledge of getting another large SUV that is going to depreciate rapidly."

As you can see by the pricing charts on PriceHub, the Land Rovers are historically notorious for high depreciation rates (even before factoring in the effects from recent high gas prices). For prospective buyers that are thinking about the "Buy 1 Get 1 Free" offer, it might be good to take a look at the Land Rover charts on PriceHub to help you in your decision making process.

HOA from hell - The Lincoln Mark LT vs. the Ford F150

noreply@blogger.com (PriceHub.com) — Wed, 27 Aug 2008 03:22:00 +0000

A HOA (home owners association) in Texas recently told one of its residents that he wasn't allowed to park his new Ford F-150 pickup truck in his driveway. Apparently, the HOA doesn't allow pickup trucks to be parked in owners' driveways. However, Escalades, Ridgelines and even Hummers have been exceptions to the rule. When the owner asked why a Lincoln Mark LT was allowed under the HOA rules and his Ford F150 was not, this was the response from the HOA:

"It's our belief that Lincoln markets to a different class of people."

This story has been well documented AutoBlog.

I wanted to quickly compare the actual sales prices for the Lincoln Mark LT and the Ford F150. While we don't have a huge amount of data for the Lincoln Mark LT, a 2007 model with 11K miles sold for about $34K. The average actual selling price for a Ford F150 was about $22.5K.
I guess $11K and a Lincoln badge are all you need to live like 'the other half'...

Resale value: Jeep Grand Cherokee vs. Porsche 911

noreply@blogger.com (PriceHub.com) — Thu, 07 Aug 2008 04:22:00 +0000

With all of the data the PriceHub community has been contributing to the site, I wanted to use this data to showcase some of the differences between the resale values of a notoriously bad resale car (Jeep Grand Cherokee) and a historically good resale car (Porsche 911).

Instead of putting numbers and calculations here, I have pasted graphs of the average, actual sales prices for each car for the past several years. Here is the graph for the Jeep Grand Cherokee - note the steep decline from 2008. The average selling price drops quite significantly as the car gets older. According to the graph, if you buy a Jeep Grand Cherokee and sell it after a year or two, you can expect to recoup a fraction of what you paid for it.

Now take a look at the average, actual sale prices for the Porsche 911. While the average selling price does drop initially, you can see that the 911 has a floor price somewhere around $22K, regardless of year. For the Grand Cherokee, the actual values continue to drop with no end in sight.

While my analysis isn't scientific by any stretch, it is interesting to compare the average actual price charts for different cars. I'll admit that it may not be completely fair for me to compare an iconic sports car to a poorly made American SUV.

I doubt that this data will stop you from buying a poor resale car - but it may help to set your expectations properly when you goto sell your car in the future.

What Happens After a Car is Traded-In?

noreply@blogger.com (PriceHub.com) — Fri, 27 Jun 2008 05:14:00 +0000

Have you ever wondered what happens after a car is traded in? Let's say you buy a new 2008 Honda Accord and trade in your 2003 Toyota Camry. What happens to your old Camry after you drive off the lot with that new Accord?

In most cases, the dealer is going to extract the monetary value out of that trade-in as soon as possible. If the trade-in is a low mileage, good condition example of a popular make/model, the dealer may put it on its used lot and hope for a quick sale. If the car has minor issues that can be fixed relatively quickly & cheap (i.e., bald tires, interior carpet stains), the dealer may fix it up quickly and try to get a quick sale. However, there's no guarantee that the dealer will put the car on its used lot just because the car is low mileage, in good condition, and popular. If you trade-in a Honda Civic at a Porsche dealership, chances are the dealer will not put a used Civic next to its fleet of used BMWs, Porsches, and Mercedes. Dealers typically attract a certain profile of customers for their particular make, and they try to carry inventory, new & used, that is consistent with their customers' profile.

If the dealer thinks the trade-in doesn't fit with his used inventory, the dealer will just wholesale the car and send it to an auction. If that Camry or Civic trade-in is in good condition, chances are it'll get snapped up at the auction by another used dealer who will then put it on its lot forsale. The lot could be affiliated with a new dealership or one that just focuses on used cars.

If the trade-in has high mileage, is in need of repairs, or is an unpopular make/model (i.e., Pontiac Aztec), the car will fetch a much lower price at auction and the used dealer that purchases the car will spend as little money as possible to get the car up to pass-able condition for sale. This is why many auction cars are considered "undesirable".

What's Better Than a Hybrid or Electric Car?

noreply@blogger.com (PriceHub.com) — Tue, 24 Jun 2008 06:35:00 +0000

How about a useable solar powered car? Check out this Mazda Miata that a few scientists in Japan converted into a 100% solar powered car. It has a range of about 18 miles and a top speed of 60 miles per hour. The conversion cost $21k USD but the fuel cost is a big fat zero.

Gas prices across the US and hybrid sales

noreply@blogger.com (PriceHub.com) — Wed, 11 Jun 2008 04:34:00 +0000

An informative (and shocking) website called GasBuddy has published a heat map that shows the gas prices across the country. While the entire country is experiencing super high gas prices, California seems to be hit especially hard. According to GasBuddy, California has the highest gas prices at $4.36 per gallon or greater. Parts of Wyoming, Oklahoma and Missouri appear to have some of the lowest gas prices at $3.70-$3.79 per gallon.

It's no wonder that California leads the US in new hybrid registrations, with 26.1% of all new hybrids purchased (according to MSNBC). Here are the runner-up 'green' states:

1. California, 26.1 percent
2. Florida, 5.5
3. New York, 5.0
4. Texas, 4.9
5. Washington, 3.7
6. Illinois, 3.7
7. Virginia, 3.4
8. Pennsylvania, 3.2
9. Massachusetts, 2.8
10. New Jersey, 2.8

NewYork, coming in as the third 'greenest' state, seems to also have higher gas prices than the rest of the nation (though not as extreme as those of California).

Of course, the leading hybrid is still the Toyota Prius.