AD #2323 – Will Trump’s Tax Cut Help or Hurt Sales?, NTSB Angry at Tesla, GM Korea Struggles Continue

April 2nd, 2018 at 11:23am

Runtime: 6:33

0:31 Tesla Acting Like Old School Car Company
1:01 NTSB Angry at Tesla
1:24 Tesla Crash Details
2:27 Lincoln Tests Used Car Subscription Service
3:19 Car Sales Plunge in China
3:52 BMW Offering 3D Printers for Motorcycles
4:53 GM Korea Struggles Continue
5:29 Will Trump’s Tax Cut Help or Hurt Sales?

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27 Comments to “AD #2323 – Will Trump’s Tax Cut Help or Hurt Sales?, NTSB Angry at Tesla, GM Korea Struggles Continue”

  1. Barry T Says:

    Are we sure the sales trend is because of the Trump tax cut? What about the move to SUVs? It’s pretty hard to find a decent SUV for anything under $40,000, and there certainly are none under $20,000. With the way prices have gone up of late it’s hard to go to $40,000 threshold is being luxury… I would add that I would imagine the so-called rich in the tax brackets would be buying cars well over $40,000.

  2. Frederick Schmidt Says:

    It seems that the Tesla/Av system can lead to distracted driving accidents. We will probably never know what the driver killed in the recent accident was doing when the Tesla system was alerting the driver to take back control. But we do know in some way the driver was either asleep or distracted enough to ignore the warning. So we have a car that allows the driver to shift their attention away from driving to allowing the driver to be distracted enough to miss the alerts or fall asleep. Do we have a circular firing squad mentality at work here? Why didn’t the system just panic stop the car instead of driving right into the barrier? Yes that could have resulted in another accident from behind but would it be a fatal accident? Something is crazy with this Tesla/Av mentality. I would rather stick to driving my own car for the near future and be on the look out for hazards.

  3. Lex Says:

    How negotiable will the prices be on an off-lease vehicle? I leased a vehicle for my daughter while she was attending Law School. She has only put 10K miles in the past 2.5 years. She loves the vehicle and it has not given her any trouble. Does it make sense to buy it at the end of the leasing period or just return it? We are concerned about warranties and financing rates. We have until August 2018 to decide whether to buy it, or lease or buy something else. I keep hearing about this upcoming glut of off-lease vehicles and wonder if I can take advantage of it?

  4. Chuck Grenci Says:

    Lex, your off-lease buyout price was fixed when you signed the lease; you just have to decide if you like the vehicle (enough) and the price is agreeable. If you don’t like the deal (or are not in love with the vehicle) there are so many options out there, it shouldn’t be a problem to pick up something else. It continues to be a buyers market (especially cars, but even utilities and trucks).

  5. Kit Gerhart Says:

    I’ve heard that off-lease buyout prices are sometimes negotiable, even though they don’t tell you that at the start of the lease, so you might check on that, if she really likes the vehicle. This is “second hand” info, though, so I could be wrong.

  6. Frederick Schmidt Says:

    3,Lex. Your decision coming up has many facets to consider. Its seems the auto companies would love people to get used to alotting x number of dollars per month for a car/truck for the rest of their driving life. If your a person who wants the newest car/technology every few years, than this leasing/subscription thinking is for your daughter. If that is not the concern, buying the car and keeping it for a long time saves alot of money. Todays cars can go 100,000 to 200,000 miles with proper care. I kept my 2000 Lexus RX for 17 years and only replaced it for reasons that had nothing to do with repairs or wear. And todays cars are way better than that 2000 RX. When and if interest rates go back up, keeping a car long term will make more sense.

  7. Bradley Anderson Says:

    BMW is strapping a printer to a motorcycle under the rare occurrence a brake lever breaks. At which point the printer and raw material is going to still be in working order after bumping around for X-amount of miles. Then the bike will need to supply enough electricity to the printer…I guess this will all occur in the parking lot of a Starbucks, where the rider has something to do while the brake lever is being made.

    In a world where 3D printers are strapped to motorcycles. Drone delivery of parts just became so much more practical.

  8. Kit Gerhart Says:

    1 You can get a highly “decent” SUV for well under $0K, if you include non-huge CUV’s. My sister recently bought a pretty well equipped Subaru Forester, with leather, sunroof, and the usual stuff, for around $30K. As you say, though, there isn’t much out there for under $20K. Even a Kia Rio is near $20K, if “loaded.”

  9. Kit Gerhart Says:

    #3, Lex, if your daughter fits the stereotype of a recent law school grad, she will probably want some sort of Benz or BMW, so she might be better off to get a low mile lease, and have an expensive-to-maintain vehicle that is always on warranty. Maybe she doesn’t fit that stereotype at all, in which case different buy/lease decisions might apply.

  10. Kit Gerhart Says:

    8 That’s well under $40K, not well under $0K.

  11. Lisk Says:

    3) Lex, there are many lease buyouts that are available to you, but often not disclosed. You can work with your local dealer and have them buy the car from the leasing co. They would rather sell it to a dealer at a discounted price (from your residual) than wait until the lease is up and go through the remarketing fees associated in lessors selling cars. I saved one of my customers $5,000 doing it this way. The other is approach the lessor yourself and find out what you can buy the car for, Naturally they want you to buy it at lease end, but you don’t want to do that. With her only having 10k miles, they might charge a premium, but they will be less greedy now than later. If you let the contract go full term, they have to charge the agreed price from when you signed the contract.

  12. Bradley Says: the BMW and 3D printer thing a late April Fools joke?

  13. RickW Says:

    @12, Bradley, I was thinking the same thing

  14. Kit Gerhart Says:

    12, 13 no doubt. It was a good one, though.

  15. Bob Wilson Says:

    Since when has revealing evidence from an accident ever changed the results of the analysis? Are the NHTSA and NTSB such delicate flowers that they can not tolerate the rest of us getting a ‘heads up?’

    Their deliberations need to be held in confidence with the freedom to investigate any hypothesis. Then look for facts and data to test these hypothesis. It has already paid dividends with dynamic cruise control in our BMW i3-REx and Prius Prime.

    What I’ve confirmed is the short range, the distance our cars can detect the leading car. Once beyond that range, our cars can not detect relative speed. A stopped car that comes into range can suddenly appear to the speed controller and the controller does not apply the brake soon enough. So when I see this happening, I brake early and it is a non-event.

    The rule of thumb is the dynamic cruise control set speed needs to be higher than the local traffic so our cars can always (as much as possible) measures range and relative speed. Do this and our cars will come to a complete stop behind the leading car even at a traffic light. Early information, especially the video/dash cams, from these Tesla and Uber accidents gave us the clues to understand this subtle condition.

  16. RickW Says:

    @15, Bob, What vehicle are you referring to in your third paragraph. “So when I see this happening, I brake early and it’s a non-event.
    Just curious.

  17. Len Simpson Says:

    Auto pilot should not operate in congested areas but collision avoidance should

  18. Richard A Arnold Says:

    BMW announced the 3D printer for motorcycles on April 1. BMW long has been known to release obviously bogus stories on April Fools Day. For example, in 2012, BMW announced the amphibious MINI Cooper Yachtsman. BMW described it as “a corner-carving crustacean that promises go-kart-like handling & a sensational combination of amphibious & landphibious performance both on & off the water. . . . . With room to sleep 2 people, the cabin features waterproof rip-stop upholstery, seat cushions which double as flotation devices, & a Marine Chronometer for celestial navigation in the event of a sat-nav glitch. For junior ‘sailors’, the glove box holds MINI-branded water wings, a pirate flag, & eye patch. . . . A ‘get-you-home’ 20-ft white sail (in case of emergency) can be deployed for zero-emissions sailing. . . . It is priced at $236,000 & comes with a fully incomprehensible warranty that includes 3-year no-cost moorage, annual dry-docking & free barnacle removal, for the original captain.” See it by pasting this URL into your browser:

  19. Richard A Arnold Says:

    On April Fools day 2017, BMW announced “From April 2017 the MINI Convertible can be fitted with the new John Cooker Works package and turned into a mobile street vendor. The MINI Convertible receives a solid-oak food sales and preparation surface. This features an induction cooker with integrated fume hood. The vehicle’s generously proportioned 160 – 215 litre luggage compartment of the MINI Convertible stores the required cooling technology, whilst a high-voltage Natural Food Nanotechnology® battery ensures power supply and is charged by the standard brake energy regeneration system while driving. Food waste is further utilised by the NFN® battery system to sustainably power the unique vehicle.

  20. Richard A Arnold Says:

    If only BMW’s 2011 April Fools Day joke were real: “Following the BMW M3 Coupé, BMW M3 Convertible and BMW M3 Sedan, a fourth body variant of this globally successful high-performance sports car is about to cause a stir. Under the strictest secrecy, the world’s first high-performance pickup has been created at the BMW M GmbH development centre. The sportiest example by far in this vehicle category, the BMW M3 Pickup will fire the imaginations of all motorists with a deep appreciation of top performance matched by a keen practical bent. 309 kW/420 hp under the bonnet and a rear-axle load capacity of up to 450 kilos take the hallmark BMW M relationship between race-oriented driving pleasure and everyday utility to an entirely new level. This unique vehicle has already completed extensive test and set-up drives on the Nürburgring’s Nordschleife in advance of its global unveiling on 1 April 2011.” [Note: If you have trouble opening this web site, paste the URL into your browser & hit ENTER or RETURN.]

  21. Richard A Arnold Says:

    On April Fools Day 2010, BMW announced, “MINI, a leader in the manufacturing of customized vehicles in volume, is set to take automobile personalization to a whole new level with a revolutionary paint system that will allow owners to change the exterior color of their vehicle as often as they change their mood. The ground-breaking MINIMagic paint system, exclusively available on MINI Clubman, will give MINI owners the chance to completely change their MINI’s exterior color in only a few minutes and with just the effort required to apply a single coat of wax – a world first for an automotive manufacturer.”

  22. Richard A Arnold Says:

    For its 2009 April Fools Day joke, BMW introduced a “‘PERPETUAL MOTION”‘ MAGNETIC PROPULSION SYSTEM.” “MINI USA looks set to take a world lead in fuel efficiency with the announcement today (April 1) of a revolutionary magnetic propulsion system that will extend the range of its MINI E to several hundred, possibly even thousands of miles, on a single overnight charge of electricity.”

  23. Richard A Arnold Says:

    Another odd April 1, 2018, announcement from BMW was the “Digital Camo” wrapping for the BMW X2. Strangely, “The limited BMW X2 sneakers developed in collaboration with the shoe manufacturer VOR already provided an opportunity to display individual style.” I make no claim to know whether or not this is another BMW April Fools joke.

  24. Lambo2015 Says:

    I agree with Barry in that the increase of over 40k sales and drop of under the 20k seems to coordinate well with the trends of truck and SUV sales increasing and passenger cars dropping. Doubt it has much if anything to do with tax cuts.
    15 bob. Totally agree with your comment too. An investigation should not be affected by anything published in the news or released by tesla. Facts are facts and have nothing to do with public opinion or speculation. To me it’s no different than defense attorney saying his client is 100% innocent. Doesn’t change what the jury finds and that’s what matters.

  25. Chuck Grenci Says:

    I’m remember John or Sean reported average new car prices somewhere in the $34k range, so an increase in over 40k really isn’t that far off (though I suppose this number represents the over and above 40k purchases). Tax cuts and auto sales collaboration seems a little weak in my opinion.

  26. Lambo2015 Says:

    Yea not much out there under 20k. I bet there is a huge drop in sales of vehicles under 15k. A better indicator may be has the down payment increased because if people are using tax refunds to buy cars they would likely put that tax return down to afford the more expensive vehicle with similar payments as the less expensive vehicle.

  27. Frederick Schmidt Says:

    Interesting reading on AV’s