New car loan st augustine

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A Slippery Situation

I am a service manager for a General Motors dealership and a longtime reader of your magazine. I am thrilled to have it available on the Internet. I would, however, like to clarify one point you made in the November OE Scheduled Maintenance article.

Regarding differential fluids, it is crucial that on a GM pickup with an option code G80 (locking differential), no friction modifier be used. These differentials apply pressure to the plates as they start to slip. If friction modifier is added, it will continue to add pressure and put enough force on the carrier to fracture it. I have seen this in the past and it's not a pretty picture.

Dave Fredrickson

Enumclaw, WA

We stand corrected. GM Technical Service Bulletin No. 86-42-04, released in November 1998, says, in part: "On light duty truck models equipped with locking differentials, do NOT use a limited slip additive. It is not recommended and should not be used." Thanks, Dave!-Ed.

Retail Revelations

I am a regular reader of MoR and enjoy the entire magazine. I was especially interested in your November 1998 Editor's Report, in which you mentioned your recent experiences while shopping for a new car. Perhaps I can shed some light on the new/used car industry to help put your experience into perspective.

In the past, new-car dealers concentrated mainly on their "new-car inventory." Back then, a dealer's used-car inventory was a small subsidy to the whole operation. But since the information explosion, car shopping has changed considerably.

The new-car cost pricing guides available on the Internet and through the library are accurate to within $10 of actual dealer invoice. In addition, these guides will reveal any incentives, ineluding any "hold-back" monies the dealers are entitled to at the end of the year to further reduce their cost.

Armed with this information, consumers are able to calculate actual dealer cost on a specific model they're interested in purchasing. Quite often they'll come into a dealership offering to pay $100 or $200 over the dealer's cost.

The consumer is actually misled into thinking the amount printed in the guide is the dealer's "true" cost. In actuality, it is the cost of the car, but it's not the dealer's "actual weighted cost." You haven't yet added in the necessary markup to the price in order to pay the sales staff, building mortgage and maintenance, auto inventory loan interest, utilities, etc.

Where does everyone think the money comes from to pay those items? Don't say from the dealership's service or body shop departments, which operate with their own separate products and expenses. Each division has to make or break on its own. These are real costs that have to be totaled up by the dealer and divided among the expected number of cars to be sold that year.

Let's say those expenses come out to an increase of $1000 per car. Now, you could add this to the dealer invoice and come out with a car's "actual weighted cost." However, now you're only at a break-even point. Don't forget, we must also add in a factor for profit.

In most other industries, the cost of a product is undisclosed. For instance, you don't know the furniture store's cost when you bought your dining room set. You don't know the jewelry store's cost when you purchased your wife's diamond engagement ring And I don't know that you should.

This is the prime reason more and more new-car dealers are concentrating on their used-car inventory. Let's say you're a dealer who purchases a used 1996 Ford Explorer XLT, hunter green, with 32,000 miles. In what guide can a consumer look up exactly what you paid for this vehicle? In addition, who knows the additional cost of the service that was needed (tires, brakes, etc.) to bring the car up to snuff and ready for sale? Now that sounds more like the furniture, jewelry and most other industries, doesn't it?

Another advantage the used-car industry enjoys is the inventory itself. If a consumer is interested in this particular vehicle, where can he go to find another 1996 Ford Explorer XLT with 32,000 miles in hunter green? A person shopping for a specific new car need only go to the next closest dealership.

I don't know whether these factors had anything to do with the lack of interest the dealers had with you when you were new-car shopping, but I hope the information helps. Keep up the great work!

Mark Giammalvo

AF-SAE, ASE Master Automotive

Technician

New Bedford, MA

We took delivery of Lynn's new minivan in early December. Despite the gold wheels, it's been a pleasant addition to the family so far.-Ed.

Fan Mail for Bob C.

I am writing just to say thank you to Bob Cerullo. I employ two mechanics and, while I no longer turn wrenches myself, I religiously read Bob's column.

Bob tells life truths that reach beyond the job and apply to almost all situations. Thanks, Bob, and please keep up the good work!

Bruce Dufrene

St. Augustine, FL

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