Saturday 31 December 2011

Do I really need all wheel drive or 4 wheel drive?

Four Wheel Drive, I just have to have it or do I?. Of course we all want to have it because its safe right? or do we have images of creeping along a rocky ridge in the middle of nowhere, breaking new ground and reaching destinations previously uncharted, only possible with a 4x4?.  Whats the weather like in your area in the winter? Rainy...me too with the chance of  a couple days of the white stuff here and there. So what are the benefits and what are the negatives.
Pros:
- added traction by sheer number of wheels being driven
-more even tire wear than a front or rear wheel bias system
- better resale when compared to 2 wheel drive models of the same vehicle
Cons:
-added weight effectively decreasing fuel economy
-added complexity with a lot more expensive moving parts to potentially repair or replace
-more expensive when compared to similar models in 2 wheel drive

The reality is that if you live in greater Vancouver or anywhere in southern BC where the winter does not normally require putting a lot of hours on a snowblower, you will be just fine with 2 wheel drive. Thanks to modern electronics and powerful computer programs, front or rear wheel drive cars make out just fine in the slippery and snowy conditions these days. Programs that come standard on most cars nowadays such as stability control and traction control are so good that most drivers would have a hard time outperforming what the car can do for itself. If you have an all wheel drive car or a 4x4 or just a two wheel drive vehicle there is still another factor affecting your vehicles performance...the tires. Not many folks stop to think of the quality of the rubber that is transmitting their car's power to the ground. In the winter, a 2WD vehicle with great winter tires on it will do as well as a 4WD vehicle with all season tires on it. The other big factor for me is that, while all wheel drive may help you get rolling, it does nothing to help you stop. A small but important detail which seems to escape most discussions.

Tuesday 20 December 2011

Less inventory, smaller margins, higher prices

You may noticed that there is an unusual trend afoot here and everywhere in North America. The price of used cars has actually risen in the past year. Yes, thats right, the car you bought a year ago is probably worth more today. Seems unusual, but the industry is facing a supply shortage. Right after the economy took a major dip in mid to late 2008, barely anyone bought new cars. Production numbers on certain models went from 400000 in a year to less than 100000. All these vehicles usually come back to the market as lease returns, rental fleets and company cars. This stream of lightly(and sometimes heavily) used vehicles is what is normally used to populate dealer lots. Well the stream is at a low water mark now. The lack of sales and leases in 2008 and 2009 has resulted in a lack of 2-4 year old used cars right now. All of this has effectively driven the prices up on existing inventory. The automotive industry, as with any other consumer driven entity faces cyclic periods. The problem, however, is to determine when the bubble will burst and when the price of used inventory will fall.  When this adjustment happens, used vehicles will depreciate at above normal rates and there will be many deals to be had.