Latest / WCHS Network Podcasts / Ask the Expert – Larry Dawson: Full Circle in the Car Market and Why Local Still Matters

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Ask the Expert – Larry Dawson: Full Circle in the Car Market and Why Local Still Matters · WCHS Network Podcasts

0:00
Speaker 1: Unlock your dream property with Meeks Realty Group, where Rich
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Speaker 2: The views and opinions expressed on this program do not
0:18
Speaker 2: necessarily reflect the views and opinions of five ad WCCHS
0:21
Speaker 2: it's employees or WVRC Media.
0:43
Speaker 3: It is full circle. Good morning.
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Speaker 4: You're listening to the radio. That's fave DWCCHS, the voice
0:48
Speaker 4: of Charleston in Charleston, West Virginia. Thanks so much for
0:50
Speaker 4: tuning in on this Wednesday morning. I had a little
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Speaker 4: different to outlook for this morning compared to the last
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Speaker 4: couple of mornings. It is quite nice driving in the
0:59
Speaker 4: Charleston very sunny. If you're headed into Charleston from from
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Speaker 4: the west, it's you can you can might want to
1:05
Speaker 4: get your sunglasses out and get ready for that. A
1:06
Speaker 4: little sunny coming in today, know whether to speak of
1:09
Speaker 4: in the Conall Valley right now, clear roads and kind
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Speaker 4: of nice, just nice morning outside. Joining me on this
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Speaker 4: nice morning is Larry Dawson from Larry from Larry Dawson,
1:18
Speaker 4: Larry Awson Auto Broker is what it says on my
1:20
Speaker 4: on my calendar now. For years and years and years
1:22
Speaker 4: talked about Larry Dawson's Auto sales, which of course is
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Speaker 4: now just Larry Dawson. And we talk about Larry Dawson,
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Speaker 4: we by cars. That's right, Larry Dawson buys cars. And
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Speaker 4: that's what we're going to talk about today, the industry
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Speaker 4: in general, the auto mobile industry, about buying cars, about
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Speaker 4: some of the things that goes on in the the
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Speaker 4: remarket or the aftermarket, things like things that Larry might
1:43
Speaker 4: be able to help you with. You're welcome to give
1:45
Speaker 4: us a call. You've been listening to this radio for
1:47
Speaker 4: a long time and Larry's been on the air for
1:48
Speaker 4: a long time, so you know the types of things
1:50
Speaker 4: that Larry likes to talk about and they can help
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Speaker 4: you out with you and give us a call this
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Speaker 4: morning at three zero four three four five fifteen fifty
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Speaker 4: eight three four five fifty eight fifty eight. If you
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Speaker 4: want to text over a question, you're more than welcome
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Speaker 4: to do that. Three zero four none three five zero
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Speaker 4: zero eight threes are four none, three, five, five zero
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Speaker 4: zero eight. Larry Dawson is here this morning with us,
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Speaker 4: and how are things going?
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Speaker 3: Man?
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Speaker 5: Things are doing well. And you were spot orn about
2:10
Speaker 5: the sun. I came out of the west Windfield and
2:13
Speaker 5: as I came up about crossed Slanes is when that
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Speaker 5: bright sun and its full sun with no clouds, you know,
2:20
Speaker 5: the sun visors down and the sunglasses was orn. But
2:22
Speaker 5: it's it's bright out there. It's gonna melt what snow
2:25
Speaker 5: we have on the ground. It's it's a very pretty morning,
2:30
Speaker 5: and I think we're looking at a few pretty days.
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Speaker 5: You back to back when I say pretty for this
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Speaker 5: time in the year where you're not bundled up, and
2:38
Speaker 5: you know, Monday evening that snows. It hit us, and
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Speaker 5: I believe it. It was like a flash freeze. There
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Speaker 5: was areas that was closed up. The bridge that goes
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Speaker 5: from Windfield to eleanor they closed that bridge, and I
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Speaker 5: suspect it just flash froze, and you know, you kind
2:58
Speaker 5: of hit that crast and you come down. You couldn't dop.
3:01
Speaker 5: And so that's what we went through.
3:03
Speaker 4: We got a phone calling, a phone call that has
3:05
Speaker 4: called in this morning. A caller go ahead, you're on
3:06
Speaker 4: the air. What's your first name?
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Speaker 3: Hello, Yes, my name is Greg.
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Speaker 6: I'm on a N plus round with Donald Trump America.
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Speaker 4: Fut Okay, that's not what we're talking about this morning. Thanks, uh,
3:23
Speaker 4: Greg for your for your phone Call'm not sure where
3:25
Speaker 4: that was going one way or the other. Uh, but uh,
3:27
Speaker 4: we don't really get into politics much other show. That's
3:30
Speaker 4: not that's not what we're talking about. I mean, obviously,
3:32
Speaker 4: if you have a question that that is in Larry's wheelhouse,
3:35
Speaker 4: that's something that we'll definitely talk about here. But we're
3:37
Speaker 4: not going to talk about We're not going to talk
3:39
Speaker 4: about politics on this show.
3:40
Speaker 5: Yeah, we don't do that. You know, I've been coming.
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Speaker 5: I think O two was my first year. I don't
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Speaker 5: do polititach politics and religion on the air. You know,
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Speaker 5: everybody has there, everybody needs a car, everybody needs everybody
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Speaker 5: needs a car. But what I was saying is that
3:54
Speaker 5: the sun was out, but we're I was starting to
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Speaker 5: fred out in front before I come on, reading an
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Speaker 5: article or Arctic couls, and I kind of verified always
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Speaker 5: before I come on the shows, make sure that what
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Speaker 5: I've read a week ago that it's still that was valid,
4:11
Speaker 5: that it looks like the transition of this young generation Z.
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Speaker 5: They're coming back to the malls. And which is a
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Speaker 5: good thing is that, you know, it seems like during
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Speaker 5: COVID and a shut down, all that we were isolated
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Speaker 5: in the house, couldn't go to school, and a lot
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Speaker 5: of shopping experiences was done online. And I think that's
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Speaker 5: where Amazon has gained so much traction. But they say
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Speaker 5: that the young generation is gathering back at the mall,
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Speaker 5: social shopping and gathering, which I find I find that
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Speaker 5: very very good to getting the young generation out and
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Speaker 5: hopefully that will bleed over to the automobile world where
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Speaker 5: you have that floor traffic as we called it, because
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Speaker 5: it is down, you know, it's it's a lot most
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Speaker 5: of it is Internet driven. You know that the and
5:00
Speaker 5: I was experiencing that the last few years when I
5:03
Speaker 5: was in the retail business before the Stevens organization took
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Speaker 5: over my spot there at Nitro, and I still stay
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Speaker 5: in contact. I've got five guys that you know, we
5:14
Speaker 5: talk and I asked him, you know, how's your floor
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Speaker 5: traffic house things doing? Because I'm a car guy, and
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Speaker 5: the trend had went away from that floor shopper to
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Speaker 5: the internet shopper. But what I also have found out,
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Speaker 5: and I was reading an article on Car Car Dealerships Guys,
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Speaker 5: which is a platform that most car guys read or
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Speaker 5: we have the availability to read, and they were talking
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Speaker 5: about the frustration of trying to make service appointments that
5:43
Speaker 5: the call time now is a nine month Yeah, it's
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Speaker 5: a nine minute wait, and it's it that's one minute
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Speaker 5: longer that was last year. And they're talking about the
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Speaker 5: service business is declining. Well, this decline because you're not
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Speaker 5: answering the fund and so if we get people out
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Speaker 5: and to make these appointments and do nothing but do
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Speaker 5: a drive by, stick your head in, you know, as
6:07
Speaker 5: you're out moving around. I believe that we are entering
6:11
Speaker 5: in what I said before we went on the air,
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Speaker 5: everything seems to be full circle in the world. In
6:17
Speaker 5: other words, business what it was maybe two decades ago,
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Speaker 5: it's coming back that way. It might be polished. They're
6:25
Speaker 5: not going to say they're going back, but you brought
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Speaker 5: up a good example that these automobiles are going away
6:31
Speaker 5: from the big screens to the smaller screens now with knobs,
6:35
Speaker 5: because that is a distraction, and distraction in anything is
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Speaker 5: what it is. It's like that phone call we took.
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Speaker 5: It threw me off just a second because it was
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Speaker 5: a distraction. Well, you don't have a second when you're driving.
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Speaker 5: You know, that might be the difference you bumping somebody
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Speaker 5: or not because of a distraction. You can reach over
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Speaker 5: and touch that knob with your eyes closed. You cannot
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Speaker 5: reach over and touch that screen.
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Speaker 4: We've been doing it for generations exactly, you know. I
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Speaker 4: mean a little bit of that built in you needed
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Speaker 4: a change and in the volume controls on the steering one.
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Speaker 4: Stuff that's handy because you can do that by feeling.
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Speaker 4: You don't have to worry about reaching to touch or
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Speaker 4: to change a channel or something like that. But this
7:10
Speaker 4: thing where you have to engage in like a screen
7:13
Speaker 4: and multiple and some of them lock up where they're like,
7:15
Speaker 4: well you can't do this while driving? Well, why can
7:17
Speaker 4: I do the thirty other things that you make me
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Speaker 4: do just to disengage cruise control or whatever?
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Speaker 3: You know, I mean, why are you doing this to me?
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Speaker 5: Well, when you have a distraction or delay, and we
7:27
Speaker 5: are busy people. People are busy today, So when you
7:30
Speaker 5: call that service department and some service department. As a
7:34
Speaker 5: matter of fact, I found out. There's one particular large
7:37
Speaker 5: auto group it's AI. Now you're not really even talking
7:40
Speaker 5: to somebody, and they put you on that I call
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Speaker 5: it eternal hold. You're late, you know, you're sitting there
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Speaker 5: and you're waiting. I said this example, I have a
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Speaker 5: GM car that I took down to the GM garage
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Speaker 5: in Nitro like clockwork every five thousand miles to get
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Speaker 5: my old change and normally tire rotation and a balance.
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Speaker 5: And I got put on an eternal hold for two
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Speaker 5: days in a row. The third day I got through
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Speaker 5: to find out I couldn't get an appointment for you know,
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Speaker 5: for a few days. Well, I'm already two days in.
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Speaker 5: I drove it up, which I think Joey holl And
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Speaker 5: Bred has done a wonderful job in South Charleston building
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Speaker 5: that quick oil change that has my business now that's
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Speaker 5: where I take my vehicles. It was because of the delay,
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Speaker 5: not answering the phone. You've got to answer that phone.
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Speaker 5: And I think hopefully now that we're seeing Generation Z
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Speaker 5: realizing that this isn't always the right way or the
8:36
Speaker 5: best way or the fastest way is to get back
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Speaker 5: out into the public, get back out and take the
8:42
Speaker 5: responsibility up on yourself if you need that dress or
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Speaker 5: shoes or school books. They're gathering at malls. That was
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Speaker 5: an inspiration to me to read that because I have
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Speaker 5: grandchildren and I like to see them out and doing
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Speaker 5: the thing similar to what I did, and that's that
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Speaker 5: full circle. They're not going to be doing what I
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Speaker 5: did many years ago, fifty years ago, but get out
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Speaker 5: of the house.
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Speaker 4: Yeah, it's it's amazing. And I've read a couple of
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Speaker 4: things about this as well as far as what's happening
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Speaker 4: with gen Z and some of the theories that are
9:10
Speaker 4: behind it. And it's kind of interesting because one of
9:13
Speaker 4: the thoughts is that that consecutive of generationally that it's
9:19
Speaker 4: kind of like you know, boiling the frog. The frog
9:21
Speaker 4: in the pot. You don't notice you're being cooked because
9:23
Speaker 4: the temperature is just being turned up a little bit
9:24
Speaker 4: at a time, and before you know it, you're cooked.
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Speaker 3: You know.
9:26
Speaker 4: So at fifty one years old, I'm pretty cooked when
9:28
Speaker 4: it comes to this stuff, you know. But with the
9:30
Speaker 4: COVID generation, those those kids that are early teenagers now
9:35
Speaker 4: are getting into that that had this this this happened
9:38
Speaker 4: to them in the middle of that. The idea is
9:40
Speaker 4: that they had a disruption in this boiling. You know,
9:42
Speaker 4: they weren't they weren't being consistently cooked. That the temperature
9:45
Speaker 4: got turned off for a little while, and now you're
9:48
Speaker 4: trying to turn the temperaure back up and bring it
9:49
Speaker 4: up to a boil, and they're like, wait a minute,
9:51
Speaker 4: this isn't right and things are not breaking, but changing
9:55
Speaker 4: a little bit. Because of that, some awareness I think
9:58
Speaker 4: is being filtered in that maybe frankly, people my age
10:00
Speaker 4: or a little bit younger, a little bit older, we
10:02
Speaker 4: missed because we were part of it, you know, And
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Speaker 4: I think that I have a little bit of a
10:07
Speaker 4: disconnection even my own home. I would really rather go
10:10
Speaker 4: out and do physical shopping, you know, grocery shopping. I mean,
10:13
Speaker 4: we use like the clicklists and the things like that.
10:16
Speaker 4: It's convenient, it helps sometimes and it does save some
10:19
Speaker 4: time with a working family, and not always. Do you
10:21
Speaker 4: want to like take your kid to the store and
10:22
Speaker 4: go and do that whole thing. I mean, I get that,
10:24
Speaker 4: but also sometimes you just want to go. You want
10:26
Speaker 4: to check the produce yourself, and you want to see
10:28
Speaker 4: what's new in the store. Maybe you run into a
10:30
Speaker 4: person or two that you know, you know, like I
10:31
Speaker 4: kind of like that, and my wife and I kind
10:33
Speaker 4: of heads on that a little bit because she would
10:35
Speaker 4: just rather get things, you know, delivered into it. And
10:37
Speaker 4: she does a good job budgeting, so that's part of
10:39
Speaker 4: the reason that she does it. But there's something too.
10:41
Speaker 4: It's a little sad. A car dealership is a great example.
10:43
Speaker 4: I think there's something to it. And I'm sure you
10:45
Speaker 4: felt this for a long time. You walk in in
10:47
Speaker 4: the morning, the pot of coffee's on, you have just
10:50
Speaker 4: that morning readiness where everything's been cleaned, everything's ready. You're
10:53
Speaker 4: ready for the day where people are going to come
10:54
Speaker 4: in and talk to you and stuff like that. It's
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Speaker 4: a little sad when nobody comes in to talk to you.
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Speaker 5: You know, well, I'm experiencing being on the outside of
11:04
Speaker 5: the circle now looking in in the conversations I now
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Speaker 5: have with people that I'm acquainted with or close friends
11:13
Speaker 5: or family is now there'll be more relaxed and asking
11:17
Speaker 5: me car questions because I'm not trying to sell them anything.
11:21
Speaker 5: I had a call the other day, gentlemen. I'm very
11:26
Speaker 5: glad he remembered me he had my cell phone number,
11:29
Speaker 5: and I'm probably ended going to end up buying one
11:32
Speaker 5: of his business cars because I used to sell him
11:35
Speaker 5: a lot of cars, and I think he heard me
11:39
Speaker 5: on the radio that I'm letting people know that no,
11:41
Speaker 5: I'm not really in the car selling business. I'm in
11:44
Speaker 5: the car buying business. I think that was probably what
11:47
Speaker 5: I sell at most. And there's a big disconnect in
11:52
Speaker 5: just getting on that telephone and sending a VENT number
11:55
Speaker 5: in and thinking that's the authentic number. Because if you'll
11:59
Speaker 5: go on and read blogs about these national companies that
12:02
Speaker 5: supposedly come in and pays you all this money through
12:04
Speaker 5: the car, you got to think about this that they
12:07
Speaker 5: are also in the selling game. So how can they
12:10
Speaker 5: pay all this money and pay you more than anyone
12:13
Speaker 5: else and then turn around on the other side of
12:15
Speaker 5: the coin and be selling. And if you'll watch the
12:19
Speaker 5: stock you know of some of these national companies, and
12:22
Speaker 5: CarMax is the one that seems like right now they
12:26
Speaker 5: have really taken a hit, but their company has got
12:30
Speaker 5: somewhat stale. They've not really rejuvenized their platform for a
12:36
Speaker 5: decade and a half, if not two decades, because they
12:38
Speaker 5: were the first one in the game. Well, the first
12:41
Speaker 5: in is like sometimes the first out fi FO, first in,
12:45
Speaker 5: first out, so what you think is new and great
12:48
Speaker 5: and grand today, you know tomorrow it may not be.
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Speaker 5: I think we're seeing. And if you talk to people
12:57
Speaker 5: that has bought these electric cars in West Virginia maybe
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Speaker 5: not in other states, they probably are starting to have
13:05
Speaker 5: second thoughts on that because, first of all, the licensing's
13:09
Speaker 5: cost is more. You're going to put tires on that
13:13
Speaker 5: car twice as often as you put tires on other
13:17
Speaker 5: cars because they of the weight, the weight on these cars,
13:22
Speaker 5: and you know the tires that you know, it's based
13:25
Speaker 5: on the weight of the car, and those batteries are
13:28
Speaker 5: very heavy, and what they're experiencing is what they think
13:33
Speaker 5: is abnormal tirewar. Well it's really not abnormal for the
13:37
Speaker 5: weight of the car. But you're used to have a
13:40
Speaker 5: gasoline or patrolum fire car and you go to an
13:42
Speaker 5: all electric car and those batteries are sitting in that
13:45
Speaker 5: chassis up underneath you, and they're finding out these the
13:51
Speaker 5: tire life is not as long as they once expected.
13:55
Speaker 5: Are we going full circle? And this is before your time,
13:59
Speaker 5: really before you start driving. But I remember when General
14:02
Speaker 5: Motors during an oil and bargo in the late seventies
14:05
Speaker 5: experimenting and produced a diesel put in passenger cars, and
14:11
Speaker 5: that was it didn't work well. It did not work
14:14
Speaker 5: well at all. I can remember the old mobiles and
14:17
Speaker 5: the Pontiacs in the Buicks and General motors. They took
14:20
Speaker 5: a three point fifty block and converted to a gas
14:25
Speaker 5: or excuse me, to a diesel fire and they were
14:28
Speaker 5: advertising them you get more fuel, mallage and all the
14:32
Speaker 5: things that they were proposing you as to get. I
14:35
Speaker 5: think that shelf life lasted. Probably it was a bust,
14:40
Speaker 5: maybe five years. It's almost something we set back now
14:44
Speaker 5: us older car guys and kind of laugh about it.
14:47
Speaker 4: Didn't I don't know if they still do. But at
14:50
Speaker 4: least maybe twenty years ago or so, didn't Volkswagen have
14:52
Speaker 4: a line of didn't they do their jettos and pissats
14:54
Speaker 4: and stuff like that with diesel engines in it.
14:56
Speaker 3: They probably don't do that anymore. I'm atine.
14:58
Speaker 5: I think there still is. But the diesel today weren't
15:01
Speaker 5: gasoline blocks converted to diesel. See gentle motors that basically
15:05
Speaker 5: took that diesel or that gasoline block and converted to
15:10
Speaker 5: diesel through where you working the heads in the fuel
15:14
Speaker 5: system and all. But you know, diesel. The first of all,
15:18
Speaker 5: the starting mechanism of diesel is completely different from starting
15:21
Speaker 5: mechanism of gasoline fired engine. Your compression and you get
15:26
Speaker 5: the cold weather and the heads were not working well
15:31
Speaker 5: because with you have much higher compression, because you don't
15:34
Speaker 5: have a spark. You're you're you're combusting that that diesel
15:39
Speaker 5: with compression. So you must you must have much much
15:42
Speaker 5: higher compression because you don't have that spark plug. In
15:45
Speaker 5: other words, when that piston comes up, there's not a
15:47
Speaker 5: spark igniting, it's it's the compression that ignites it. And
15:52
Speaker 5: starting a diesel during cold temperatures, especially one it's not
15:57
Speaker 5: designed to be a true diesel, you some problems there,
16:01
Speaker 5: and they during the oil and brock bargo, there was
16:04
Speaker 5: so many things tried and fell, so many things. Now
16:07
Speaker 5: one thing that was tried in over about two decades
16:10
Speaker 5: it succeeded. Now it's in the norm. This front wheel
16:12
Speaker 5: drive transverse motor. You know you're used to you if
16:16
Speaker 5: you're in seventies, you raised it up and you had
16:17
Speaker 5: the north south motor in other words, went from the
16:20
Speaker 5: front of the car to the back guard and cylinder
16:21
Speaker 5: heads on both sides. Well, then all of a sudden
16:23
Speaker 5: went left right. You go in the transactional sitting there
16:27
Speaker 5: and you had axles coming up to your front tires. Well,
16:30
Speaker 5: you know, for the older individual, they didn't really understand
16:34
Speaker 5: what that was all about. They understood the concept, but
16:37
Speaker 5: you know they would say, I can't work on that
16:39
Speaker 5: because they basically they were old school mechanics. Now that's
16:43
Speaker 5: stuck with a lot of failures, with a lot of failures,
16:47
Speaker 5: but you know, it's the norm. Now, Diesel wasn't the norm.
16:50
Speaker 5: The cars that's out here now there it's diesel are
16:53
Speaker 5: true diesel engines, and Volkswagen always had that true diesel engine.
16:57
Speaker 5: It's not a bad it's it is not a bad
17:02
Speaker 5: motor for that car because it's a genuine diesel motorable
17:05
Speaker 5: and you take a gasoline motor and you convert it
17:08
Speaker 5: within a matter of months. Because of the on bargo,
17:12
Speaker 5: it was a failure. Well, I've seen a lot of
17:15
Speaker 5: failures in my time, not only in marketing but in
17:20
Speaker 5: manufacturing inn the automobile world. And once again I'm not
17:23
Speaker 5: here bashing electric cars and that there's going to be
17:26
Speaker 5: a place for I mean, Tesla's proven that wrong. I mean,
17:29
Speaker 5: you know, are proven me wrong. I think by farther
17:32
Speaker 5: the superior electric car. I mean they start out being
17:36
Speaker 5: electric and they're still electric. They did not start out
17:38
Speaker 5: electric and go to a petroleum They continued with their
17:42
Speaker 5: game perfecting it. When you boss from a gasoline or
17:45
Speaker 5: a diesel fire over to electric, it takes decades to
17:49
Speaker 5: perfect that. I mean, it might be good out of
17:51
Speaker 5: the shoot, but that's when you find out the real
17:55
Speaker 5: test as you're out driving those cars. And I've think
18:00
Speaker 5: we're going that full circle once again. We have gasling cars.
18:03
Speaker 5: It's getting thirty and forty and fifty miles to gallon.
18:07
Speaker 5: So really, why I convert the innerstructure also for electric?
18:13
Speaker 5: You know when West Virginia we have some charging stations,
18:18
Speaker 5: but think about this, you make the same travel from
18:21
Speaker 5: Canal City here. How many new big Bucky sites, Bucky
18:26
Speaker 5: sized sites have you seen being built for electric?
18:29
Speaker 4: Yeah, not a lot, not a lot yet. And part
18:32
Speaker 4: of whatever your thought one way or the other is
18:35
Speaker 4: the absolute truth is there's also political wins that keeps
18:39
Speaker 4: it from taking hold in West Virginia. That's just the reality.
18:41
Speaker 4: So I mean, live within the reality that you're in.
18:43
Speaker 4: I mean, you might wish that these things are something
18:45
Speaker 4: that you could adapt now, but you can't. You just
18:47
Speaker 4: simply can't because there's not enough people, either from a
18:51
Speaker 4: consumer standpoint or from a political standpoint, that want it.
18:53
Speaker 4: So you just have to live within the means that
18:55
Speaker 4: are available to you. I think it's going to be
18:57
Speaker 4: a regional Yeah, oh sure, right.
18:58
Speaker 5: And when I say regional's take to the United States.
19:01
Speaker 5: There's gonna be regions for sure, and that's where it's
19:04
Speaker 5: going to excel, just.
19:04
Speaker 4: Like there's parts of the United States where where alternative
19:07
Speaker 4: energies make a lot of sense exactly, and you can't
19:10
Speaker 4: argue it. You might want to, but you can't argue it.
19:12
Speaker 4: But they don't make a lot of sense here in
19:14
Speaker 4: a lot of cases. That's great, and again you can't
19:16
Speaker 4: argue it. You might want to, you can't really argue.
19:18
Speaker 4: I think we have a phone call. Let's give it
19:19
Speaker 4: another trick caller. We have to do an autoque here.
19:22
Speaker 4: So what's your first name?
19:23
Speaker 6: Hey Jerry here?
19:24
Speaker 3: Hey Jerry, how you doing? What's your question for? Jerry?
19:26
Speaker 6: I don't I have a question, but I'd like to
19:28
Speaker 6: tell you a quick little story if you have the time. Yes, sir,
19:32
Speaker 6: I used to go to the country of Estonia every year,
19:36
Speaker 6: and every year I would rent a subcompact car, which
19:41
Speaker 6: was an Opal. It was a gasoline car. So about
19:45
Speaker 6: three years in a row I rented the same type
19:48
Speaker 6: of car from the same company. On the fourth year,
19:52
Speaker 6: I took a friend with me, so we needed two cars.
19:56
Speaker 6: So we got two Opals. They were exactly the same,
20:01
Speaker 6: same color, same everything. We drove around for a couple
20:04
Speaker 6: of weeks. She went one way, I went the other.
20:07
Speaker 6: We met up, so at the end of our trip
20:10
Speaker 6: we filled the Opals full of gas. It turned out
20:15
Speaker 6: that her Opal was actually a diesel, and now this
20:21
Speaker 6: diesel is full of gas. That Now here's the interesting thing.
20:27
Speaker 6: We had no clue that that little subcompact had a
20:31
Speaker 6: diesel engine. It sounded like a gasoline engine, it drove
20:37
Speaker 6: like a gasoline engine, and it to us was a
20:41
Speaker 6: gasoline engine. There was no indication that it was a diesel,
20:45
Speaker 6: which amazed me in a car that's small. So she
20:50
Speaker 6: had to pay three hundred dollars to get the gasoline
20:54
Speaker 6: pumped out of the tank and so forth. But the
20:58
Speaker 6: point of the story is these Theese l engends. Today,
21:02
Speaker 6: of course, we don't see them here in America. Like
21:05
Speaker 6: they have in Europe. Are just especially for a subcompact,
21:09
Speaker 6: are absolutely amazing. You can't tell them from a gasoline engine.
21:15
Speaker 6: It's great, that's all I have thinks.
21:18
Speaker 5: You know, actually Buick, it was Buick Opel. There was
21:22
Speaker 5: Opel franchises in the United States. There is no longer.
21:25
Speaker 5: But that was a German car. Good car. And he's right,
21:29
Speaker 5: you know, over in Europe, it's different over there as
21:34
Speaker 5: far as how what is allowed over there that's not
21:38
Speaker 5: allowed in the United States because the EPA or the
21:40
Speaker 5: crash test. I mean, there's a lot of vehicles like Poujo,
21:43
Speaker 5: you know, Poojo or Citron Fiat exited the United States
21:47
Speaker 5: and came back in the United States under the Chrysler badge. Suzuok,
21:53
Speaker 5: he was in the United States. They laughed and went over,
21:56
Speaker 5: but they're still being produced. There's a lot of cars
21:58
Speaker 5: that just cannot make it into the United States because
22:01
Speaker 5: of our regular I guess, like regulatory Commission of crash
22:06
Speaker 5: and EPA. But Jerry's right, there's a lot of things
22:09
Speaker 5: that you can go over south of border, of the
22:12
Speaker 5: north of border, or overseas that we just don't know.
22:15
Speaker 5: And it works. And he's right. Diesel engines work if
22:19
Speaker 5: that's what they are built for and not converted, and
22:22
Speaker 5: you can have two cars back to back. These diesels
22:25
Speaker 5: today that I have experienced, if you didn't know they
22:29
Speaker 5: were diesel, they're so quiet, and boy, you know we
22:32
Speaker 5: go back twenty years ago. You could really tell my brother,
22:36
Speaker 5: My younger brother has a early model I think they
22:40
Speaker 5: called a generation one Ram diesel. It's like an one
22:44
Speaker 5: to O two. He lives at Red House. If he
22:47
Speaker 5: started right now, I think we could hear it.
22:52
Speaker 4: It is amazing though, when you think about and I've
22:54
Speaker 4: traveled internationally a little bit as well, and it's definitely
22:57
Speaker 4: a lot different when you see and whatever you think
22:59
Speaker 4: about the relations that you can call things an overburdened
23:02
Speaker 4: regulatory state. You can also think maybe there's business interests
23:05
Speaker 4: that they get regulations out there so foreign interest can't
23:08
Speaker 4: come in and compete with it. So there's different ways
23:11
Speaker 4: that you can look at it for that. But it
23:12
Speaker 4: is amazing when you go and you see these little
23:15
Speaker 4: machines that people travel around in Like an equod war,
23:17
Speaker 4: people would travel around on all sorts of things without
23:20
Speaker 4: licenses and all these different machines and stuff. But I
23:22
Speaker 4: mean it were, and people got around and I know
23:25
Speaker 4: in China they're building this truck and some I think
23:27
Speaker 4: there's some people that import this thing over. But I
23:29
Speaker 4: think it's a diesel truck with no bells and whistles.
23:31
Speaker 4: It's basically a combustion engine with windows that roll down
23:35
Speaker 4: that will toe some stuff for you. But it costs
23:37
Speaker 4: like twelve thousand American dollars and it's apparently super robust
23:41
Speaker 4: and heavy duty. It just doesn't have any real technology
23:43
Speaker 4: in it. I mean there's a place for things like that.
23:46
Speaker 5: Well that's how all the automobile manufacturers started. I mean
23:50
Speaker 5: you I can remember when Hyundai came in this country,
23:53
Speaker 5: when Mitsubishi and Kia they were a box. I mean
23:58
Speaker 5: that Yugo did not make it. I think Hugo didn't
24:00
Speaker 5: make it because they had a war over in Romania.
24:03
Speaker 5: I think that's what was the failure. You go, I'm
24:06
Speaker 5: not so sure you go was the failure. But it
24:08
Speaker 5: was a price point card with no frills. I mean,
24:11
Speaker 5: you basically got a box that would take you to
24:13
Speaker 5: point A to point B and there is several over there.
24:17
Speaker 5: And you're right, China is way ahead of us or
24:20
Speaker 5: in that price point of vehicles, but they cannot be
24:24
Speaker 5: brought into the United States. If and when that ever happens,
24:28
Speaker 5: that's going to be the game changer in the automobile
24:30
Speaker 5: world is when they can bring in the entry level
24:34
Speaker 5: affordable vehicle that you do not have to go out
24:37
Speaker 5: on eighty four months for the young generation to be
24:39
Speaker 5: all to buy. And what also I see happening four months?
24:43
Speaker 3: Holy go, it's a.
24:44
Speaker 5: Long jop So I got fifty year mortgage.
24:46
Speaker 4: See I can't stay away. Oh my goodness, you know
24:49
Speaker 4: how much for a pan bike?
24:50
Speaker 5: Well, what we're seeing And if you listen to Jerome
24:53
Speaker 5: Power when he lowered the rates and I was listening
24:57
Speaker 5: to the radio before I walked in here. Subprime lending
25:02
Speaker 5: is a big source of the lending because unfortunately, there's
25:06
Speaker 5: been some credit challenges created over the last few years.
25:11
Speaker 5: I think one of the biggest things was the promise
25:13
Speaker 5: of educational loans going away, and they didn't and people
25:19
Speaker 5: bought and now they have two payments. They have a
25:21
Speaker 5: student loan and have a car payment. It's almost seven
25:25
Speaker 5: percent delinquency on subprime lending. Well, therefore the lenders are
25:30
Speaker 5: pulling their horns in and that was the Avenue where
25:34
Speaker 5: a lot of young young people obtained their loans first
25:37
Speaker 5: time buyer. I'm sure you've heard of that. It was
25:40
Speaker 5: a subprime company. They charged you more interest rate because
25:43
Speaker 5: they've taken more of a gamble. Well, I don't think
25:46
Speaker 5: that BET's playing off for them. In other words, they
25:50
Speaker 5: are struggling, and some of them they're not going to
25:53
Speaker 5: see the finish line. They're not going to be able
25:55
Speaker 5: to take well, anything over two percent. The alarm starts
25:59
Speaker 5: raining now.
26:00
Speaker 4: Bankruptcy's and late payments are the highest the eveens in
26:02
Speaker 4: two thousand and seven. So if that's an indication that's
26:05
Speaker 4: a problem.
26:05
Speaker 5: And that you know, probably I'm going to safely say,
26:09
Speaker 5: and I might be proven wrong. And if I am,
26:11
Speaker 5: I am, it's probably thirty year and younger individuals that
26:17
Speaker 5: probably overbought, made it too easy, maybe didn't slow down
26:21
Speaker 5: and think, maybe got on that phone and there it
26:24
Speaker 5: was right in their lap. We're going back to what
26:26
Speaker 5: I was talking about. If you get out and just
26:28
Speaker 5: look around and shop a little bit like these kids
26:31
Speaker 5: are in these malls, and maybe look for something and
26:33
Speaker 5: not be so spontaneous. You know, that phone can bring
26:37
Speaker 5: you instant gratification. It doesn't mean it's going to give
26:40
Speaker 5: you good gratification. It's instant.
26:44
Speaker 4: We'll take a break in a second. The last bit
26:45
Speaker 4: of Galaxy bring that I'll get out because this is
26:48
Speaker 4: kind of the thing I think about all the time too.
26:50
Speaker 4: What happens again, this is sort of like the boiling
26:52
Speaker 4: the frog thing is there was probably a point in
26:55
Speaker 4: time using Amazon for example, who will take a step
26:57
Speaker 4: away from cars, so we don't talk about anyone here,
26:59
Speaker 4: but where there is probably a value in time where
27:02
Speaker 4: either being a Prime subscriber or just using Amazon in general,
27:05
Speaker 4: and because of the amount of stuff that you can
27:08
Speaker 4: look at and get, you probably could or you probably
27:10
Speaker 4: weren't doing value shopping at Amazon, you actually were saving
27:12
Speaker 4: money and you were probably saving time, and that became
27:15
Speaker 4: very convenient. And what's happened now, of course, over the
27:17
Speaker 4: course of years and years and years and years, that
27:20
Speaker 4: frog has boiled to where actually you're paying a premium
27:23
Speaker 4: for all of these things in the past that were
27:25
Speaker 4: cheaper and more convenient. They're less convenient than they used
27:28
Speaker 4: to be. Like Amazon shipping used to be automatic two
27:30
Speaker 4: days when I first did it. I've been an Amazon
27:32
Speaker 4: Prime customer for decades because I used to use their
27:35
Speaker 4: storefront when I was self employed and used it as
27:37
Speaker 4: a store front. I've been in a prime customer for years.
27:39
Speaker 4: Two days used to be guarantee shipping every single It
27:41
Speaker 4: is not like that anymore. It's two days from the
27:42
Speaker 4: moment that they process your order and it could be
27:44
Speaker 4: a week later before that goes through. It didn't used
27:47
Speaker 4: to be like that. So now we're paying more prices
27:50
Speaker 4: for less service, and suddenly we forgot how to shop
27:52
Speaker 4: locally to get the better deals from the things that
27:55
Speaker 4: we have. I think you're right. I think people are
27:56
Speaker 4: starting to in every industry I think runs across this.
27:59
Speaker 4: Even when we go back to like the car Vons
28:01
Speaker 4: and the car Maxes and stuff like that. Whatever place
28:03
Speaker 4: that there was twenty years ago where there might have
28:05
Speaker 4: been value in that service, it's been drained out because
28:09
Speaker 4: people have to make money, you know, either if it's
28:11
Speaker 4: a public company, their shareholders, you have to open to
28:13
Speaker 4: You have to always have a profit driven motive behind that,
28:16
Speaker 4: and sometimes that means you reduce services and charge more.
28:20
Speaker 4: Just means you're not going to get the value you
28:21
Speaker 4: once did. Locals where it's at. That's the people you
28:23
Speaker 4: can talk to that there's less middleman between you and
28:26
Speaker 4: what's going on, and you don't have to worry about
28:28
Speaker 4: all this stuff on your phone and the data that's
28:30
Speaker 4: leaking and people that are that are inauthentic. Just talk
28:33
Speaker 4: to somebody, man, Just talk to someone. You are correct,
28:36
Speaker 4: Let's talk to someone. Let's take a break. Okay, We'll
28:38
Speaker 4: take a break and be back after this. If you
28:39
Speaker 4: want to weigh in, you can talk to Larry at
28:42
Speaker 4: three zero four three four five fifty eight fifty eight
28:44
Speaker 4: three or A four three four five fifty eight fifty
28:45
Speaker 4: eight text three zero four non three five five zeros
28:48
Speaker 4: R eight. You're listening to Ask the Expert with Larry
28:50
Speaker 4: Dawson this morning on five eight wc HS, The Voice
28:53
Speaker 4: of Charleston.
28:54
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30:04
Speaker 4: Good morning, missus del Cooper. With another check of traffic.
30:06
Speaker 4: We do have some busy traffic in downtown Charleston. All
30:08
Speaker 4: the downtown exchanges reporting busy right now. As you're coming
30:11
Speaker 4: in to work in the capital city, you can expect
30:13
Speaker 4: some delays. We also have delay on US twenty five
30:16
Speaker 4: and Institute right at the intersection with New Golf Mountain Road.
30:20
Speaker 3: We have a multiple vehicle accidents.
30:21
Speaker 4: That's causing delays there in both directions, slowing traffic down
30:25
Speaker 4: one West reaching A twenty five at Institute and New
30:28
Speaker 4: Golf Mountain Road. Otherwise, things are moving pretty well in
30:31
Speaker 4: and around the capital city. Be careful heading wherever you're going,
30:47
Speaker 4: non medice until the top of the hour, you're listening
30:49
Speaker 4: to ask the expert with Larry Dawson from Larry Dawson,
30:51
Speaker 4: from Larry Dawson Cars. I know we got cars from
30:55
Speaker 4: Larry Dawson. We appreciate Larry coming in and sharing his knowledge.
30:57
Speaker 4: We always have a great conversation on the air about
30:59
Speaker 4: all things to do with the car industry, about nitro
31:01
Speaker 4: and things along those lines. Here in the state of
31:03
Speaker 4: West Virginia. Had a caller off air when we went
31:06
Speaker 4: to the break that wanted you to comment on the
31:08
Speaker 4: current status of leasing vehicles, not for any particular thing,
31:12
Speaker 4: not for fleet or anything like that, but just you're
31:14
Speaker 4: regular person with a job that drives around, maybe commutes
31:17
Speaker 4: a little bit, and stuff like that. How do you
31:19
Speaker 4: feel about leasing today as opposed to purchasing.
31:22
Speaker 5: Leasing is not a bad option, especially if you are
31:26
Speaker 5: not driving where you have to buy those moles when
31:29
Speaker 5: I say buy the moles. Most leasing is based upon
31:32
Speaker 5: twelve thousand miles a year, and most people drives more
31:36
Speaker 5: than twelve thousand miles a year. But if you are
31:38
Speaker 5: one that lives in a city, works in a city,
31:41
Speaker 5: and really doesn't go outside that parameter, and even if
31:45
Speaker 5: you think you might is buy those moles up front,
31:49
Speaker 5: move it to fifteen thousand miles, build yourself a safe platform.
31:53
Speaker 5: They're half as much. And when I say buy the miles,
31:55
Speaker 5: if you go and compute a lease at fifteen thousand
31:59
Speaker 5: miles and figure it at the beginning of the lease,
32:01
Speaker 5: so they can figure the residual at the end or
32:04
Speaker 5: what they're speculating the resale is going to be because
32:07
Speaker 5: you're paying for the portion of the car you're using. Basically,
32:11
Speaker 5: that is leasing. They have an analog that they will
32:16
Speaker 5: go or excuse me, an algorithm that will go in
32:18
Speaker 5: and bet on the future of the valuation of that car. Now,
32:23
Speaker 5: during COVID, it was crazy because the valuation was much
32:27
Speaker 5: higher because there was a lack of cars well that leasing.
32:31
Speaker 5: Now those prices are going up because the valuation that
32:34
Speaker 5: car is lower. There's a lot of cars out there.
32:37
Speaker 5: But I do tell people if you're going to do it,
32:40
Speaker 5: do it and figure your mouths up front, because if
32:44
Speaker 5: you turn that car in and you're over, you have
32:46
Speaker 5: to pay for those mouths.
32:48
Speaker 4: I'm mean never leased before, so our mouse cumulatives. So
32:50
Speaker 4: if you have fifteen thousand a year and you have
32:51
Speaker 4: a three year leases at forty five thousand total mouths,
32:53
Speaker 4: so you don't have to keep on nunder fifteen each year,
32:55
Speaker 4: that is correct. Okay, So if you have it one year,
32:57
Speaker 4: you're going to travel a little more and maybe in
32:58
Speaker 4: the next year or not. I don't even out hopefully right.
33:00
Speaker 5: The other thing that I think leasing's good for is
33:03
Speaker 5: a single parent. Lots of times the mother raising the
33:07
Speaker 5: children needs a warranty with her vehicle can do a
33:10
Speaker 5: drop off a pickup in leasing. It's their car, but
33:15
Speaker 5: they normally put in there a protection service or a
33:19
Speaker 5: maintenance service that you can wrap around in that payment.
33:23
Speaker 5: In other words, that's going to be your total outgo
33:26
Speaker 5: that month. And if you're near a dealership, I would
33:31
Speaker 5: advise you to lease from that dealership. I'm a big
33:34
Speaker 5: believer if you're near a dealership, unless you just had
33:37
Speaker 5: a really bad experience, stay within that circle that you're
33:41
Speaker 5: in it's much easier to catch a ride to the
33:44
Speaker 5: dealership to get your car that you're close by in
33:48
Speaker 5: the one way three four counties away or three four states.
33:52
Speaker 4: Putting yourself behind the eight ball there if you're wanting
33:54
Speaker 4: some service or something from when you.
33:56
Speaker 5: Have a contact. I'm a big believer in an I've
34:00
Speaker 5: said this many times when the show, and I think
34:02
Speaker 5: that's why I do well buying cars off the street
34:05
Speaker 5: because if there is a hiccup, I'm readily available. The
34:10
Speaker 5: illustration I gave you on a break. You go to
34:12
Speaker 5: one of these national companies and they're figuring your car
34:17
Speaker 5: at a payoff based upon your payoff in ten days.
34:22
Speaker 5: You add an interest per day, and if they miss
34:25
Speaker 5: that because the mailing or their way of doing business,
34:29
Speaker 5: it's not going to happen like it does with me.
34:32
Speaker 5: I'll pull the check book out and right in front
34:34
Speaker 5: of you address the envelope. If you want to go
34:37
Speaker 5: down to the bank, we'll go down the bank. I
34:38
Speaker 5: don't care. I'm not floating on anybody's money. But I'm
34:41
Speaker 5: buying one car here in one car there. But if
34:44
Speaker 5: you miss that payoff by a penny and he gets
34:47
Speaker 5: sent to San Francisco to ABC lending institution and it
34:51
Speaker 5: came out main and it did not hit the ten
34:54
Speaker 5: day payoff. You're going to get a late notice. That's
34:58
Speaker 5: I mean, that's just the truth of the matter. You're
35:00
Speaker 5: going to get a late note and try to call
35:02
Speaker 5: and correct that with that person that's five states away
35:06
Speaker 5: that you did business online. Try to get into telephone
35:09
Speaker 5: number and get that. I'm dealing right now. I least
35:14
Speaker 5: I've leased commercial property and I had to leased out
35:17
Speaker 5: to a national company. One of them for whatever reason,
35:21
Speaker 5: their lease check was late. Not only late, I still
35:25
Speaker 5: haven't received it. I have been on the phone multiple
35:29
Speaker 5: multiple times with this company that's in all fifty states.
35:33
Speaker 5: They're a big company. What is they the twelve thirteen
35:36
Speaker 5: something like that. Yeah, okay, they're twelve days behind on
35:41
Speaker 5: sending me money. And I can show you at least
35:45
Speaker 5: ten texts and still haven't got to mind. They've got
35:48
Speaker 5: to check in with the payable department that only cuts
35:52
Speaker 5: checks on Wednesdays. And then you know we've talked about overnighting.
35:59
Speaker 5: Oh we can't do that, so you know, and this
36:02
Speaker 5: is a national company. This is a healthcare company that
36:05
Speaker 5: does medical billing that I lease a property to and
36:09
Speaker 5: I mean I could, I could tell you stories about
36:12
Speaker 5: delay payments, not local, not with Larry Dawson, not with
36:16
Speaker 5: a local company, with nationlle try to go back and
36:20
Speaker 5: talk to someone. I have yet to talk to someone.
36:22
Speaker 5: It's all been email.
36:24
Speaker 4: I'm convinced that the barriers now in your case you're
36:26
Speaker 4: waiting for payment to get to you from that that
36:29
Speaker 4: in this case you're the person that is required to
36:31
Speaker 4: be paid out of this and in the same way
36:34
Speaker 4: where companies end up owning you money or rebates or refunds,
36:37
Speaker 4: whatever it might be. Or it just seems like there's
36:40
Speaker 4: all these artificial barriers that put are into place that
36:42
Speaker 4: we blame it on. We call it red tape. You know, Oh,
36:45
Speaker 4: it's just because of the red tape man. Some of
36:47
Speaker 4: that stuff is on purpose. You you it's heat death.
36:51
Speaker 5: You know.
36:51
Speaker 4: You try to create so much barriers to get your
36:55
Speaker 4: refunder or or whatever it might be the rest of
36:58
Speaker 4: your money or something that you just give up you expect,
37:00
Speaker 4: all right, well it's just eighteen dollars, I'm not going
37:02
Speaker 4: to worry about it this time, or whatever it might be.
37:04
Speaker 4: And that's how they sort of recapture funds.
37:07
Speaker 5: Well, they are in the leasing business. This facility is
37:12
Speaker 5: imagine I would went down and leased product from them,
37:17
Speaker 5: and I was just slow paying, and I went back
37:20
Speaker 5: to release. You think they're going to extend me the
37:24
Speaker 5: courtesy of releasing or releasing to me. Well, oh, they're
37:28
Speaker 5: not going to. But they're a national company driven by
37:32
Speaker 5: probably a private equity group, driven by the CEO looking
37:37
Speaker 5: at the bottom line, and you know, as long as
37:40
Speaker 5: that bottom line looks good, maybe like a car mix,
37:43
Speaker 5: maybe likely carbon. Forget about the social aspect of dealing
37:49
Speaker 5: with people. It's all about revenue. And when you go
37:52
Speaker 5: about revenue, you can forget to one on one. So
37:56
Speaker 5: there's where I come in. I buy cars. We buy cars.
37:59
Speaker 5: The nice thing about me, I'll come to your house.
38:02
Speaker 5: I go to a lot of houses or businesses, and
38:05
Speaker 5: we sit there and make the final transaction. I'll do
38:08
Speaker 5: it in front of you. I'll write the checks in
38:10
Speaker 5: front of you. I'll hand it to you and let
38:11
Speaker 5: you mail if you want to. If it gets lost,
38:14
Speaker 5: you know you can deal with it. But there's the
38:17
Speaker 5: difference in the big company in the small.
38:20
Speaker 3: Well.
38:21
Speaker 5: I'm a solo practitioner now entrepreneur. So I'm doing the
38:25
Speaker 5: same thing I did for years. I'm pretty darn good
38:28
Speaker 5: at it. I understand all the ins and outs. I'm
38:31
Speaker 5: just not bogged down with all as you call it
38:33
Speaker 5: red tape. There's only me that's responsible.
38:36
Speaker 3: And that's the way.
38:37
Speaker 4: And in years that we've had you on here, even
38:39
Speaker 4: when you had your business, we've known that that was
38:41
Speaker 4: the case. Always the right type of advice given. And
38:44
Speaker 4: the bottom line is you got to just you gotta
38:46
Speaker 4: be careful. You got to be careful out there. When
38:48
Speaker 4: you could go local, you go local. If you want
38:50
Speaker 4: to call Aarry, you can do that. A's threes are
38:51
Speaker 4: a four five four five zero two eleven. That's threes
38:54
Speaker 4: are of four five four five zero two one one.
38:55
Speaker 4: You could get ahold of Larry Dawston. He buys cars.
38:58
Speaker 4: Larry boys car still to this day. Give them the
39:00
Speaker 4: right situation. Larry, thank you so much for your time
39:02
Speaker 4: on expertise. Once again, thank you for having me. See
39:04
Speaker 4: you back here next month. That's Larry Dawson. Thanks so
39:06
Speaker 4: much for tuning in. Dave Allen's up next one five
39:07
Speaker 4: D Live. I'll be back this afternoon at three oh
39:09
Speaker 4: six with Dave Weekly on hotline have a great day.
39:12
Speaker 4: Everyone listening to five ad w c HS. We are
39:14
Speaker 4: the voice of Charleston.
39:20
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