Welcome to 2020! It’s a new year. While not everyone agrees, it’s a new decade. Change surrounds us more than ever before. Personal life, professional life, is anything out of its reach?
In this episode we’re talking about change. Steve Rozansky about how car makers aren’t making cars anymore and where cars are headed in general (pun intended) Felecia Rozansky and Ryan Steckelberg about the hot AZ housing market ~ prices up, inventory down.
Episode Recap
Friendly Takeaways:
- Cars are going out of style. It’s all SUVs, CUVs, and Trucks in the next decade.
- Maintain your engine, and you won’t have to replace it so soon. But if it’s too late, replace your engine, not your car, and save money.
- You live in Phoenix, make sure your tires are rated for the heat.
- Know your neighborhood — check the zoning laws.
The New Decade in Cars — No More Cars!
Today is all about the new year and new decade. A lot of new changes coming to the automotive industry. A lot of car manufacturers will stop making cars! GM will discontinue the Volt, the Impala and a couple of Cadillac models. Cars don’t sell as well anymore. Even the police are moving towards SUVs. Crossover Utility Vehicles (CUVs) are also getting more popular. The Suburban started gaining popularity in the 70s. They were huge, boxy vehicles. Now, they are luxury cars. Even minivans are going out of style. Big changes coming to what we knew as “cars.” The only cars Ford will make are the Mustang and their electric Focus. Chrysler will focus more on Jeeps. SUVs and CUVs are just more useful and versatile.
This means mechanics are going to have to keep up with these changes — SUVs, Trucks, Electric Vehicles, etc. There’s already a shortage of technicians in the industry — not at Friendly, we have great techs! But industry-wide, there’s a shortage. This is going to make it tougher. So, what’s the lesson? Kids, go to trade school and learn to be a mechanic. There will always be a good living to be made. Once guys like Steve are gone, we’ll all be stuck going to the dealers, or as Felecia called it, “Getting Amazoned!”
Get A-Rated Temperature Tires in Phoenix
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They talked tires again. The heat rating of a tire. Consumer Reports looks at so many factors of a good tire, but they don’t look at heat! If you live in Arizona, you need to take the heat into account. With a Michelin tire, the treads are great, but the walls, the carcass of the tire, is weaker in the heat. Those tires with a poor heat rating are the ones that fail, the ones whose treads you see on the Arizona highways. Whatever brand you buy, you want a A temperature rating. You’ll be surprised to find that most tires sold here are B rated. Friendly won’t even sell B tires.
Coming in the decade are electric vehicles, hybrid vehicles. Charging stations are popping up everywhere. Right now, electric cars are limited in distance. They don’t go very far. The problem is, there aren’t enough charging stations along the hills and highways, so you have to plan accordingly. Google is even starting to show stations on Maps. Solar may become an option. More aerodynamics will help.
Ironically, cars are getting bigger, not smaller. A lot of these larger cars and trucks will probably not go electric. There’s even an electric Mustang! There’s even a “station wagon” Mustang that’s electric.
Ride sharing seems to be the future. Ryan does all ride-sharing. He gets work done on the way to the show!
Replace the Engine, not the Car
Let’s talk trends. Friendly had a customer whose engine went bad, and it was a $15,000 fix. Why spend that money? To replace the same quality vehicle is $45K+. More and more people are fixing what they have. If your car needs major work and has a body that’s in good shape, doing the major work can pay off. New engines and transmissions have warranties. This decision can save you tens of thousands of dollars.
What if somebody doesn’t have $5000-15000 to spend on that? Quality shops like Friendly will offer financing. But here’s the thing! Most of these repairs can be avoided through good maintenance. Forget that owners manual that says oil changes every 10,000 miles! Keep that oil changed and change the fluids. Dealers are in business to do repairs and replace vehicles, not keep them running. Change your oil three times a year. Then, your engine will survive, and you’ll avoid this whole conversation.
Friendly Auto just got approved as a “Preferred Service Shop”, meaning they get great prices and have certified mechanics. The warranty is good anywhere!
Refinancing, Zoning, Public Hearings and Your Real Estate Decision
When does it make sense to refinance from a 30-year mortgage to a 15- or 20-year term? The key is payment. If you can afford the slightly higher payment, you’ll save a ton of money. Review it with your lender (Ryan!) and see what can be done.
In Real Estate, is there a bubble that’s going to burst? No! This is not 2010. Phoenix is one of the top fastest growing areas. Phoenix grew by over 70,000 people just last year. So, where should you live? New builds are popping up everywhere. Check zoning, because zoning is constantly changing. Look for those public hearing signs to know what’s going on in the neighborhood you’re looking to move into. Talk to a full-time professional Realtor (like Felecia!) to get the information you need to make an informed decision. Know the zoning! Lots of new builds are going up right across from giant industrial zoned land.
Casa Grande, Prescott, Maricopa, Buckeye, and San Tan Valley have the “affordable” homes — under $300,000. In other words, these are on the outskirts, and many of them are condos and townhomes. These can be great homes in great neighborhoods. Just know what you’re getting into. Again, talk to a professional Realtor.
Wrap Up
Until next week, Drive Friendly Arizona!
