Archive for the ‘Kelly Blue Book’ Category

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The Ford F-150 Still the Runaway Best Seller

January 14, 2013

 

 13 Ford F-150 Raptor - front profile

 

By Roger Witherspoon

 

            It was dark, the moon was full, and Superstorm Sandy was at its raging height pushing a record 14 foot wall of water along the New York-New Jersey coastlines and up connecting rivers. The wave rolled through New York harbor, surged around the Statue of Liberty and then rolled up the Hudson River.

In better times the Hudson both empties into and is fed by the Atlantic Ocean at the foot of Manhattan. When the ocean tide is high the Atlantic flows into and up the river, creating a 100 mile salt water estuary. At low tide, the 300-mile Hudson brings fresh water from upstate New York down to the wide Atlantic. In midwinter, diners on the river’s edge can watch the ice flow one way as they order appetizers and reverse course as they finish dessert.

That’s also why Rick Nestler’s folk song, “The River That Flows Both Ways,” is the anthem of Clearwater, the environmental group Pete Seeger founded to clean up the historic river. (  http://www.youtube.com/watch?v=N5wnbDcZXUc  )

But the night Sandy rolled up the Hudson was not like old times. The wall of water surged up the river, spreading out to fill in bays and streams, flowing up banks, covering riverside parks, roadways and rail yards. At the end of Peekskill Bay the water began rising over a low-lying causeway carrying the two-lane Bear Mountain Extension, which provided the shortest route to Camp Smith, an Army base, and then zigzagged up the mountainside to the Bear Mountain Bridge, about 10 miles south of West Point.

Normally, that section of the Extension was nearly even with the tufted tops of the wild phragmites grasses that hugged the shoreline. But not this night. The wild grass and the lowest portion of the roadway – a stretch of about 20 yards – were lost under about four feet of the dark rolling waters of the Hudson River. And it was still rising.

It seemed impenetrable. But then an emergency worker in a Ford F-150 Raptor pickup truck gunned his engine and barreled through the water, which was about even with the truck’s hood, using the still visible guard rails to gauge where the actual roadway was. He stopped at the entrance to the causeway and began putting out flares to block the road as water cascaded out of the pickup’s flooded cargo bed.

“How did you get through that?” I asked him.2012 Ford F-150 SVT Raptor

“I don’t know, man. I just gunned it, crossed my fingers, prayed and went. I won’t try it twice. The water is still rising.”

The flares did not deter the drivers of two, huge, military trucks, who were bound for CampSmith, from ignoring the warnings and heading so slowly into the water they barely made a ripple. At the deepest point, as the water lapped their hoods, the trucks stalled. The utility worker called for police support and raced down the roadway. In minutes, dozens of police cars drove onto the causeway, the officers piling out in an effort to help the trapped soldiers. In the end, it took a lot of police and a fleet of kayaks to get them out.

So why did the F-150 make it when the Army trucks didn’t?

A series of Ford spokesmen blanched at the query, since the truck is rated at being able to ford 30 inches of water and the company emphatically does not recommend going through streams higher than the middle of its 17-inch aluminum wheels. As it happens, the emergency worker in the F-150 was lucky. By gunning the truck and barreling through the rising water, he created a bow wave in front of it, leaving just enough room for air to get through the radiator. The slow moving, careful army trucks, on the other hand, essentially drowned.

But even if rolling through the storm of the century was a matter of dumb luck, it was an impressive night for the Ford F-150 Raptor, still the best-selling vehicle of any type in the nation.

“It’s been the number one selling vehicle for 30 to 35 years,” said Kelley Blue Book senior analyst Alec Gutierrez. “Nothing else comes close. They produce diehard loyalists, and someone who buys a Ford pickup tends to stick with a Ford pickup for life.

“They sold about 650,000 in 2012, and outsold the Dodge Ram – which sold just shy of 300,000 – by two to one. The GMC Sierra was close with 575,000 trucks sold. The F-series is a huge seller for small businesses or construction companies, though in terms of towing capacity, it is comparable to the bigger Dodge Ram or GMC Sierra.”

It may have trouble keeping that edge. GM is redesigning its truck lineup and will unveil the rejuvenated fleet in a few months, said Gutierrez. Ford, however, is planning to redesign the F-150 for the 2015 model year, which will begin to arrive at dealers in mid-2014 – giving GM a year-long head start. Still, the allure of the F-150 is so strong that in 2012 the truck outsold the entire car and truck fleets of Volkswagen, Volvo, Mercedes-Benz, BMW, Mazda, Mitsubishi, Kia, or Subaru. That is quite a cushion for GM to overcome. (  http://ford.wieck.com/videos/ford-f-150-raptor-svt?query=raptor   )

The F-150 Raptor is a work truck that looks good and can go anywhere and do just about anything one might want a vehicle to do. In Texas – where 20% of the nation’s pickup trucks are sold – it is common to see a line of highly polished and simonized F-150s lined up outside the venue of every high school prom.  During the day, that same truck will carry a half ton of material and tow another three tons of cargo up, down and over any construction site. It comes close to being as capable as a Hummer, Toyota FJ Cruiser, or Jeep Wrangler Rubicon going up, down, or across steep slopes, fording streams, slogging through mud or crawling over tree limbs and rocks.

13 Ford F-150 Raptor - downhill

            Under that relatively water tight hood is a 6.2 liter V-8 engine cranking out 411 horsepower and 434 pound-feet of torque. It is mated to a six speed, overdrive, automatic transmission, and there are separate hill climb and descent gears. There are four additional power switches in the center console for use with after-market items such as floodlights or tow winches. The truck’s stability control system allows power to be transferred from a wheel which is suspended in the air to an opposing wheel. As a result the F-150 can continue in a relatively straight line regardless of what the trail does.

Inside, the F-150 is more like a large SUV. It features two screens: an eight-inch color, touch screen in the center of the dash and a 4.2-inch information screen directly in front of the steering wheel next to the speedometer.  This small screen shows the trip computer, fuel gauge, and the front mounted camera, which is used to let the driver see rocks and other off-road impediments. The main screen is used for everything else – the navigation system, entertainment, Bluetooth, and the backup camera. For amusement, the truck comes with a CD and DVD player, MP3, iPod and USB ports, satellite radio, and Bluetooth.

13 Ford F-150 Raptor - interior   The leather steering wheel is adjustable –as are the pedals – and contains fingertip cruise and audio controls. The four, 15-volt power outlets are to be expected. But since this is a work truck, Ford added a 115-volt power outlet so you can plug in a computer or other item needing serious power.

The test vehicle had the standard Supercab, with two full doors and half doors for the rear. But even with its slanted roofline, there is leg and head room in the rear for three adults in full-sized, leather seats. A larger, four-door, crew cab is available, adding about 200 pounds to the truck’s three-ton curb weight.  Either way, it’s a comfortable ride since the front seats are adjustable and can be heated or air cooled.

GM’s trucks have been steadily gaining ground on Ford, and Dodge Ram definitely has the edgiest commercials.  But for the time being, the F-150 is still the one to beat.

           13 Ford F-150 Raptor - side

 

2013 ford F-150 SVT Raptor

 

MSRP:                                                                        $50,760

EPA Mileage:                        11 MPG City                          16 MPG Highway

Towing Capacity:                                                      6,000 Pounds

 

Performance / Safety:

 

6.2-Liter, SOHC, iron block, V-8 engine producing 411 horsepower and 434 pound-feet of torque; 6-speed automatic overdrive transmission with tow mode; 4-wheel drive; hydraulic rack and pinion steering; coil-on-shock, double wishbone, independent front suspension; Hotchkiss-type, non-independent rear suspension; 4-wheel vented disc brakes; roll and stability control; 17-inch cast aluminum wheels; hill descent and off-road mode; skid plates; trailer tow; front seat, mounted side impact airbags; canopy airbags.

 

Interior / Comfort:

 

AM/FM/XM satellite radio;  CD and DVD player; iPod, MP3 and USB ports; satellite navigation  with 8-inch touch screen; SYNC connectivity and voice activation; 4.2-inch information screen; front and rear cameras; 4 15-volt outlets; one 115-volt outlet; leather, adjustable, heated and air-cooled front seats; tilt and telescoping, leather wrapped steering wheel with fingertip audio and cruise controls;

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The Toyota Camry: Still the one to Beat

August 19, 2012

By Roger Witherspoon

 

The Toyota executive was beaming.

He stood in the cavernous entrance hall at the New York Mets’ Citifield last August, in front of a glistening, redesigned, stylish Camry, the flagship of the company’s fleet and the nation’s best-selling mid-sized sedan. It had been a rough two years for Toyota and its personnel: lurid stories of runaway cars and stuck accelerators had eroded confidence in the company’s quality controls and the March 11, 2011 earthquake and tsunami had caused thousands of deaths and seriously eroded the company’s manufacturing pipeline. Both events contributed to Toyota losing its hard fought status as the world’s biggest car company to a resurgent General Motors.

But the unveiling of the 2012 Camry was supposed to change that, to herald the start of a new, resurgent time for the Japanese car maker. With a flourish, the cover was whisked off the prototype model to appreciative nods from the automotive press.

And then, the Earth moved. Literally. And the walls shook. And the floor moved. And a panicky voice on the loudspeaker shouted: “This is an earthquake. Evacuate the building immediately!”

Toyota’s pre-launch media hoopla may have been lost in the aftermath of the major east coast earthquake which caused minor damage to buildings and major worries about the safety of American nuclear power plants. It was not the most auspicious introduction to the car that Toyota hoped would restore its luster as the one to beat in a field with strong competition from a resurgent Detroit and an upstart Korea. But as the car made its way to showrooms this year, it has proved to be as special as the company hoped it would.

“Toyota has done extraordinarily well,” said Alec Gutierrez, manager of vehicle valuation for Kelly Blue Book. “For the first seven months of this year compact car sales were flat compared to last year with an increase of just 1.4%. But mid-sized cars accounted for 18.6% market share in June, a 44% increase year over year. The surge in mid-sized car sales can largely be attributed to the strength of the redesigned Toyota Camry, which posted more than 32,000 sales in June alone.

“The mid-sized segment traditionally has been dominated by Camry and the Honda Accord. When they are redesigned there are so many people out there who will only buy from Toyota or Honda. The Camry until now was conservative in terms of styling. For 2012, they didn’t stray too far in terms of design, but it was upgraded in terms of fuel economy and is competitive with compact cars. They didn’t increase the price much and there is the Toyota brand loyalty. Anyone considering a mid-sized car is going to consider Camry. It’s the long standing reputation they built in terms of Camry’s reliability and long term desirability that keeps it in the top position.”

According to a national survey by KBB, the 10 best-selling mid-sized cars from January through July of this year are:

 

Camry – Sales 243,800. Up 40% over 2011

Honda accord – 183,800. Up 18%

Nissan Altima, 183,700. Up 20%

Ford Fusion – 160,200. Up 6%

Chevy Malibu – 153,800. Up 8%

Hondai Sonata – 138,400. Up 2%

Kia Optima – 86,500. Up 99%

Chrysler 200 – 78,400. Up 105%

VW Passat – 64,100. Was not available

Subaru Outback – 63,300. Up 6%

 

Gutierrez added that “Toyota has played a large role in the nation’s auto market in general, and account for 18.5% of all car sales this year, compared to only 16% last year.” The company is still in third place, however, behind General Motors and Ford, who’s revamped Fusion may threaten Nissan and Honda for the Number 2 spot on the mid-sized list.

But for the foreseeable future, the Toyota Camry is still the one to beat.

            To start understanding the allure of the 2012 Camry, take a look at the outside styling. It is still a family sedan, but now has an aggressive-looking, low-scooped, front grill similar to that of its sporty, costlier Lexis IS 350. It is a distinct departure from the sedate, conservative appearance of previous generations of Camry, with a face that is more grimace than smile.

At a glance of its side profile, the Camry’s styling is not as eye-popping as that of the drawn-in-America Hyundai Sonata. But Toyota has definitely dropped the laid-back look and opted for a more flowing, artistic design which draws the eye approvingly from that charging face, over the wide wheel rims to a flare at the rear. It is not a car that is sitting on its laurels.

Under the hood, the Camry has a 3.5-liter, V-6 engine producing 268 horsepower and 248 pound-feet of torque, which is more than enough to let the Camry run with the best of the highway pack. The engine drinks regular unleaded gasoline, but is thirstier than one might expect from a Toyota. The Camry’s EPA rating is just 21 miles per gallon in city driving and 30 MPG on the highway. And if you opt for the less expensive, 178-horsepower, four-cylinder engine the Camry has an EPA rating of 25 miles per gallon in city driving and 35 MPG on the highway – which is about what you would get from a compact car like the Honda Civic.

If one is really looking to cut down on trips to the gas station, Camry has a hybrid edition carrying an EPA rating of 40 miles per gallon in the stop and go city traffic, and 38 MPG on the highway. The Camry hybrid has a 2.5-liter gasoline engine producing just 156 horsepower and 156 pound-feet of torque. But it is mated to a 105 kilowatt electric engine that gives the Hybrid power plant a combined rating of 200 horsepower.  The electric motor’s 199 pound-feet of torque added to that of the gas engine makes the Hybrid significantly more responsive and quick – in taking off or passing – than the standard Camry with the big gas engine.

There are, of course, tradeoffs when one buys a hybrid. The combined power plant adds about $2,000 or more to the price of the car, which can be partially offset by cutting back on the options. In addition, the hybrid’s regenerative braking system uses the heat generated by the brake pads to make more electricity. As a result, Toyota Hybrid owners avoid having a large brake repair job five or six years down the road. So it may be more productive to consider a full hybrid system such as this one as a performance enhancement with a higher upfront cost but reduced carrying costs and less stress on the average budget.

           

            Aside from the gas mileage the differences between the standard and the hybrid models are slight. The rear seats in the standard Camry can fold down, thus enlarging an already ample storage area. In the hybrid version, that middle area between the rear seat and the trunk, however, is occupied by the battery, so the trunk is a bit smaller and the seats do not fold down.

Inside, the Camry offers the type of real wood trim on the doors, center console and dash that is usually reserved for more upscale, full sized sedans. The seats are leather, power adjusted and can be heated in the regular Camry. And though one may opt for cloth covered seats in the hybrid for economic reasons, these, too, can be heated, which is a boon in cold weather climes or if you’re just plain tired.

For entertainment, the Camrys are now part of the Toyota/Lexus Entune system, which lets you set up your musical tastes and folders on your computer at home and these are instantly available in the vehicle.  They come with AM/FM and Sirius satellite HD radio for standard enjoyment over 10 JBL speakers. In addition, there is Bluetooth connectivity both for phone use and playing music. The system also has connections for iPods, MP3 players and USB drives. There is also a CD changer.

The system can be controlled via fingertip controls on the leather steering wheel or through the seven-inch, color, touch screen, which also provides navigation and a crystal clear backup camera.

The fully loaded Camry will tap your wallet for $32,500, which is packing an awful lot into a well-designed package. It is not surprising that the Camry still sets the standard for all the rest.

 

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Road Running Investments: 4 Cars Worth More Used Than New

May 31, 2011


By Roger Witherspoon

 

            People contemplating potential financial investments are not likely to put a car on the short list of places to park their money for a year. Indeed, the standard mantra – though exaggerated – is that a new car loses half its value the moment it leaves the dealership.

But if you had bought a 2010 Toyota Prius Hatchback, a 2011 Hyundai Sonata SE, a muscular, 2011 Chevy Camaro SS, or the iconic 2011 Kia Soul, you could have made money putting it on the market after driving it around for a year. And that’s with serious driving.

The EPA considers 15,000 miles to be the average an American motorist drives the family car in the course of a year. According to Kelley Blue Book ( www.KBB.com  ), which tracks private party and Internet sales through sites such as www.Autotrader.com ,  a Prius (  http://bit.ly/lynbyq ) with 22,500 miles and an original MSRP of $22,150 is now selling on the private market for $24,705 – an increase of $2,555 over the purchase price. That’s a return of 11.5 percent, which is higher than the return Bernie Madoff gave his favored investors during the heyday of his Ponzi years.

The stylish Sonata sedan ( http://bit.ly/mtnAO4 ) with 13,500 miles on it, sells for $24,170, an increase of $855 over its purchase price of $23,315 for a respectable 3.7 percent return. The Kia Soul ( http://bit.ly/lGLbXz ) , which uses hip hop hamsters to hype its appeal to youthful buyers, held pretty steady with a resale price of $14,055 after 13,500 miles. That’s just $60 over the purchase price of $13,995, but its more than the Federal Reserve was paying on treasury notes during last year’s financial crisis.

And near the top of the investment list is an entry from Detroit, the 2011 Chevrolet Camaro SS Coupe, which left the showroom with a sticker at $$31,000 and after 8,000 miles on the road can now be sold for $34,000 – an investment return of 9.6 percent (http://bit.ly/mdRgHg ).

“In most cases a car is not an investment,” said Alec Gutierrez, manager of vehicle evaluations for Kelley Blue Book. “Over the last several years, however, used car values have been on the rise.  Part of that is a lack of vehicles available due to the economy and a reduction in new vehicle sales.

“Cars fit the classic definition of a depreciating asset. But with supply decreasing and fuel assets increasing, their value has been really strong.”

The domestic car market, Gutierrez explained, dropped from 17 million cars per year in 2005 and 2006 to a low of 10.5 million in 2009, a decline of nearly 40 percent. So there are far fewer cars on the used car lots. “The increases depend on the segment, however,” he added. “Overall, used car values are up between 5 percent and 6 percent. But the value of fuel efficient vehicles can but up anywhere between 15 percent and 20 percent, and we attribute that to the rapid rise in gasoline prices.

“The resale value of the Prius is definitely tied to gas prices. It has always been in demand, and even prior to the earthquake in Japan Toyota had only a 10-day supply in the showrooms. But it is one of the vehicles that consumers flock to immediately as gas prices rise.  We have seen demand for the Prius shoot through the roof, with some Prius values increasing between $3,000 and $4,000. And that goes for two, three, and even four-year-old Prius.”

The Sonata’s appeal, he said, has come from he termed its “phenomenal” new design (http://bit.ly/mzwk2z ).  “Even as it becomes used,” he said, “There is a lot of interest and it stays close to the MSRP. We see that from time to time when the design is great. The new Camaro has done well because of the redesign.

”The standard 2011 Camaro is selling $200 to $500 above sticker price and the convertible is really hot.”

            Hyundai spokesman James Trainer said that in addition to the design, the Sonata is offered as a standard sedan, or a hybrid or a turbo, and the hybrid gets 40 miles per gallon and the standard and turbo get 35 MPG. The Sonata is the only car in the mid-sized sedan segment that does not offer a V-6 engine.

“The competition – Camry and Honda Accord – have to be engineered to carry the weight of that bigger engine.  But our turbo-charged four cylinder engine, with 274 horsepower, gets better horsepower than any of the 6’s do.”

The resale value is also helped by Hyundai’s 100,000 mile warranty.

The Kia Soul, said Gutierrez, has benefitted from rising gas prices “and it’s a fun design. Nissan has tried to jump into that market with its Cube. That car is performing well, but the 2010 model is just about $1,000 below its MSRP. The Kia Soul is just more in demand.”

The reception of the boxy Soul comes as something of a surprise, particularly with its pants-sagging, hoody-wearing, hip hop hamsters comparing this odd-shaped Kial to standard boxes and toasters (  http://bit.ly/mCKQx3 ). “The car was targeted equally at male and female Gen Y consumers in their mid-20s who are looking for their first car,” said Michael Sprague, Kia’s vice president of marketing.

“We positioned the Soul to break out from the ordinary and offer a new way to roll.  Our creative agency, David and Goliath, came up with the concept of hamsters who were on the wheel and broke out of that cycle. We thought it was great imagery to convey that you don’t have to buy the traditional little compact car out there. You can have this really cool car instead of one of the other boxy cars.

“A lot of parents are putting the money down and buying it for their children, with the children making the ongoing installment payments.”

Kia has also found that a large portion of their sales are to senior citizens, who are still active and like its price, interior spaciousness and the fact that it is easy to get into and out of.

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