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Five Minute Coffee Break
Young (non) drivers
Much has been written lately about how today's teenagers and twenty-somethings are more intrigued by brand name consumer goods, clothing, and electronic devices than cars. Countless surveys show that young people today are saving more of their money for an iPad, gaming console, computer, and the latest smartphone than a new or used car. They just don't place a premium on cars - or driving. And frankly, it's scaring the heck out of the new car manufacturers. As Baby Boomers retire, they are wondering who's going to buy their cars in the coming years.
I hear it all the time from clients who need help buying that first used car for their now 18 or 19-year old kid, rather than the one just turning 16. We always laugh about how, back in the day, we were first in line at DMV on our 16th birthdays, giddy for that little temporary license to freedom. Now, many parents are dragging their kids to DMV years later just so they can get them out of the house and off to college.
An iPad and an XBox over a car? Personally, I gauge life's bigger acquisitions in terms of what kind of cool used car that same money could buy. When someone recently mentioned spending thousands of dollars on one of those fancypedic beds, I thought to myself, "yeah, but you could have bought a nice older Miata or a cool Jeep CJ5 for that!" But that's me.
Speaking of first cars, during one of those client conversations lamenting about "kids today", I was a little embar rassed to admit that my first car was an orange(ish), very used 1972 Vega. I bought it at age 15 from a friend of a friend who was leaving the country. It cost me $200 and didn't run. I fixed it up and sold it for $1100. And look where I am now.
What was your first car?
email me
Jeff Barron
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"We want American vehicles"
One of the questions we ask new corporate clients is if they require, or prefer, "American" vehicles in their fleet. If the answer is yes, then we have to dig deeper and find out what they mean by that because "buying American" means different things to different people.
1) "We want an American company" - Buying a Ford or GM product fits most people's definition because it's an American brand and the money stays here. Jeep is possibly the most iconic American brand but the majority of Chrysler Group LLC (Dodge/Chrysler/Jeep) shares are owned by Fiat, in Italy.
2) "We want cars built by American workers" - Sure, but many "American" branded cars and trucks are built in Canada and Mexico, whereas many "import" cars are built in the US.
3) "We want vehicles with the most American content (parts)" - No problem, but according to a recent study, 4 of the top 5 vehicles with the most domestic parts are either Toyotas or Hondas.
I am reminded of an example of this dilemma from the early 1980s. A local municipality wanted compact pickups for its park & rec operations. The stipulation was that they had to be built in the U.S. Well, Ford Couriers were built by Mazda in Japan. Chevy LUVs were built by Isuzu in Japan. Dodge Ram 50s were built by Mitsubishi in Japan. So they went with the only truck built in America: Volkswagen Rabbit pickups, built in Pennsylvania.
Remember these?
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VEHICLE SPOTLIGHT
It was recently announced that Toyota's Prius was the #1 selling car in California. The statement is a little misleading because Toyota actually sells four different cars under the Prius nameplate, but it shows that Californians have nonetheless fully embraced hybrid technology.
Many automakers offer hybrid vehicles but what makes the Prius cars unique is that they are, well, unique. There's no straight gas version of a Prius, so if you see one you know it's a hybrid, and for many corporate buyers/lessees, that's an important statement. Ford has been offering hybrid powertrains on existing models for many years but this new C-Max is its first stand-alone hybrid that isn't offered with a traditional powertrain (at least not in the U.S.) The C-Max has been offered in Europe with gas and diesel engines, but in America it will be their flagship ("look-at-me") hybrid-only product.
The C-Max competes most closely with the Prius V (the biggest one) and shares Ford's new global platform with the new Focus and Escape. This is a good thing because it drives and handles like a sporty European car. I spent almost a week in a C-Max and actually enjoyed driving it very much. While the Prius cars are very well engineered, thrifty and extremely reliable, I've never considered them particularly fun to drive. What struck me most about the C-Max is that it rarely felt like I was driving a hybrid; it just felt like a quality engineered car. You really had to listen and feel for the gas engine to shut off and restart, and the brakes felt almost normal compared with most regenerative braking systems found in other hybrids. The fit & finish of the car was excellent and there was very little wind or road noise on the highway. I averaged 38-40 mpg for the five days I had the car, not the 47 that the EPA lists on the window sticker. I read some online C-Max forums and it seems that is normal when the cars are new but improves as the new-generation lithium-ion batteries "break in" after a few thousand miles. Hopefully, that's true. I'm sure I could have also eked out a few more miles per gallon if I hypermiled like many hybrid drivers do.
The one complaint I had has nothing to do with the C-Max per se but with Ford's new MyFord Touch infotainment system. This combination audio/navigation/Bluetooth/climate control system is in many new Fords and is garnering complaints from the media and consumers alike. It's a little too busy and complicated for what it needs to be, and substitutes real knobs and buttons with touch-screen replicas that are hard to find and use while driving. You can use voice commands for most features but for many it may take awhile for that to become second nature. The C-Max actually has real climate control knobs, but to control the HVAC system in the 2013 Taurus I'm currently driving your choices are verbal commands, the main touch screen, or flush, soft-touch buttons like on your microwave oven. MyFord Touch wouldn't prevent me from buying a Ford but apparently it's creating PR issues for Ford Motor Company.
Out soon is the C-Max Energi, which is the plug-in version. This means you can drive up to about 20 miles on the batteries alone before the gas engine has to start up. And it qualifies for the carpool lane!
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Helpful Gizmo Slick Bluetooth for cars that don't have it  The Parrot company of France engineers some of the best Bluetooth products on the market. If your car doesn't have integrated Bluetooth handsfree calling, consider any of the Parrot products but their newest Minikit Neo is getting strong reviews for its innovative features, attractive appearance, first rate quality, and affordable price (under $100.)  It doesn't have to be installed, it just clips to your visor. The features I like most are its ability to power down when not in use and then automatically power up again when it senses you entering the car and closing the door. It also has its own internal voice recognition system that allows you to voice dial from your phone's address book even if your phone doesn't have that ability already. And you can answer and initiate calls without having to press a button, you just say "Minikit" and it will ask who you want to call. For technophobes, if your phone has the new NFC (near field communication) feature, it automatically pairs the first time by just tapping the two together, no programming needed. You can also download an app to your cellphone that works in conjunction with the Parrot to locate your car (say, in a large parking lot), auto-reply to incoming SMS texts, and even remind you if your parking meter is running low. See a full CNET review, and where to buy, by clicking here.
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Used Vehicle Leasing While most of you are operating new vehicles leased from us, many are driving pre-owned vehicles. It's not something we mention very often but it has played an increasing role in our business, especially during the recession. While it's a great way to pick up a nice personal car for yourself or a family member, it's also something to consider for your business vehicles - especially late-model trucks and vans - as a way to lower operating costs. We also can find nice management- and executive-level vehicles too.
The only problem with used-vehicle leasing is that there is no "used-car factory" we can call to order a perfect, low-mileage creampuff with your exact color and option specifications. When switching to used vehicles, you have to be flexible and patient because it can take awhile to find the right vehicle. We generally look for vehicles that are still under some portion of the original factory warranty and have a clean Carfax or Autocheck. Then we have them inspected thoroughly and perform any needed repairs and maintenance.
Finally, we encourage clients to add either a factory or aftermarket extended-warranty in case something breaks down the road.
And, with us, it will be the same professional, courteous transaction as with all new vehicles and equipment. No suede-shoe used-car shenanigans.
Call us at 415-474-1100 with questions or to have us start shopping.
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Used Car Corner
We have a gorgeous 2009 Audi A4 2.0 Turbo, Prestige package, All-Wheel-Drive, Harmon-Kardon audio system, Navigation, Bluetooth, and only about 24k miles. Call or email us for lease information.
You can also peruse Ellis Brooks Auto Center's inventory here for other pre-owned vehicles. We can help with the purchase or lease of most of their cars too.
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About Ellis Brooks Leasing, Inc.
Since 1964, we have been providing fleet management and leasing services to businesses in California and the West. Whether you have a fleet of 1 or 100, we can help you select the right vehicles and lease plans to fit your needs.
- High-mileage leases are our specialty (even 100k/year)
- Fuel and Maintenance Card programs
- Fleet pricing
- Local and out-of-state deliveries
- All makes of cars, trucks, vans and SUVs
- Upfitted work trucks and vans
- Pre-owned vehicles
- Professional, personal, no-pressure environment
Call us at (415) 474-1100 and see how easy it is to get started.
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Thank you for reading our newsletter. We don't do much advertising so please pass this along if you know of a company that uses vehicles in their daily operation.If you're an existing client, we really appreciate personal referrals. Jeff Barron
Ellis Brooks Leasing, Inc.
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