Wednesday, December 10, 2008

Proud to be an American?

I used to be proud to be an American. I even made a conscientious effort to buy an American car the last time around. In fact, my husband and I have bought four Fords in the last five years -- three of them brand new cars. They have been great cars, so I have to disagree with the ad shown at left in one respect. I would change the headline to "You wouldn't buy our overpriced cars."

Now I bought American after years of driving expensive imports, including Saabs and Beemers. In all honesty, our decision to switch to American cars had less to do with the fact that they were American than with the fact that we live in the boonies and have a nice Ford dealership here. I used to drive a BMW sedan, but every time something went wrong -- and it was frequently -- I had to drive it to Dallas for servicing or sit and listen to some grease monkey tell me why I should buy a Ford. With my BMW, every time something went wrong it was $1500 -- minimum. So we bought Fords.

First my husband bought a small commuter car - a ZX2. It was "cute." I think I told him it was cute one time too many, so he traded it for a Mustang. The Mustang still gets good mileage, but it looks a little less "cute" and a little more "cool." It's not fancy, but it's paid for. Out of necessity for hauling kids and sports gear, I bought an SUV. Initially I bought a Ford Escape. It was brand new, and it was pretty, but it was pricey, and there was something not quite right with the size. The engine was way too fast for the size of the car, and I never felt safe in it. When I'd step on the gas, that thing would go, with the rear end fishtailing onto the highway. Within a few months I was back at the dealership asking to trade. I traded "up" to a Explorer. It has an even bigger engine, but it's a much heavier car, and I have really liked this car. It holds seven people comfortably, has a rack on the top for our luggage, the two boys can spread out on road trips, and it is hefty enough to pull our boat. It's been a great car -- for more than 180,000 miles.

I understand why American car manufacturers are in trouble though. It's not so much about the cars they make, at least not the American cars I have experience with. It's about the way you are treated at car dealerships. Through the years, and before we moved to this small town where there is a really good dealership, I had learned to avoid that car buying experience like the plague.

If you go in to trade a car, they rip you off and give you far less than the car is worth. When you're caught up in the car buying experience, you don't really notice, but most people have buyer's remorse the day after they've made the trade.

If you trade in a car that you still owe money on, they are happy to roll the balance into your new car loan. That way you start out with a new car that you owe more on than it's worth, not to mention the fact that the second you drive it off the lot, it becomes a used car and is worth far less than you paid for it.

My most recent dealings with car dealerships have come while shopping for a car for my teenage son. I'm no fool. I know that no teenager needs a new car, so I've done some shopping around. I have shopped online, on ebay, and I've shopped in person at dealerships. I am not going to make payments on a car for a kid, but no matter what you go in for, the guys on the car lot always want to sell you something else. If you want to find something for $5000, they show you something for $15000. If you decide you're willing to pay $10,000, they want you to buy a new car for $23,000.

This process has been so frustrating that I finally gave up. In fact I won't go near a car dealership, except for service. Service at a dealership is great. But apparently fewer people are having their cars serviced regularly, so those of us who do go in are footing the bill. We get upsold all sorts of things that we probably need but didn't go in for in the first place.

I've gone in for a simple oil change ($30) and spent $500 on all sorts of maintenance they said I needed. I've gone in for a tire rotation and been scared silly by mechanics who tell me I'm just miles away from a major blow out that could result in the end of my life, so I've bought new tires. I've also gone in for a simple servicing and spent WAY TOO LONG in the waiting room. The last time I went to my local dealership, I was there three hours. THREE HOURS! As much as I love those guys, there were people coming and going while I sat and sat, probably while they looked for something else to fix on my car. After the second hour, that got old.

So if people don't want to buy cars from car dealers, and they don't want to get their cars serviced at the dealers, the dealers are going to hurt. If the dealers hurt, the manufacturers hurt. If the manufacturers hurt, the auto workers hurt, and if the auto workers hurt, we're told, everyone suffers and the economy goes into a tailspin.

I don't necessarily buy it. I think if the car dealers were honest, and the service people were efficient, the general public wouldn't avoid buying cars or having them serviced.

I think the biggest problem is the price, which is caused by the unions. The union guys make $60- $80 an hour, and a lot of them don't do anything physically demanding or that requires a brain. Yet because it's the UAW, they have power. They are the cause of the high prices on American cars and the lack of competiveness for U.S. auto makers. They are the cause of making cars cost so much that the average citizen has had to go far into debt beyond what he or she could afford to buy a car to get him or her to that job where he or she doesn't make enough money to make the payment.

When combined with the unscrupulous banks that have let those people buy those expensive cars (and homes) in the first place, it's just one big circular mess. Is it an easy fix? No! Is it because American cars aren't made well? No.

I think it boils down to greed. Greed at the top of the auto companies and absolutely at the banks, greed at the union level, greed at the dealership level, and even greed at the consumer level.

Proud to be an American? Not really. But if I can ever afford to buy an American car again, I will. I have had good experience with the quality. It's the price and now the financing I have a problem with.

I do not want our government giving the auto makers federal money -- our money. They have received enough of it, and they have frittered it away. Let the auto workers lose their jobs. Let the execs at those companies lose their jobs and their golden parachutes. Let the bank executives lose their jobs. Then maybe they'll have to work for a living like the rest of us.

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