The Dangers of Curb-siders

The purchase of a salvaged or antique car can be exciting but the potential for fraudulent selling practices is high. When my Grandfather bought his 1973 Corvette Stingray one of the things he had worried about was VIN switching. Each car has a unique identifier known as a Vehicle Identification Number (VIN), normally located to one side of the dash, underneath the windshield. On some cars it can also be found on the inside of the driver’s side doorjamb.

In the used car markets there is a significant risk of being duped by “curbsiders,” people who sell cars outside of the law. One of the ways they scam people is by stealing a car and then switching its vehicle identification number. If a car is reported stolen then its vehicle history report, which is indexed using the VIN, will have this information on it. A sophisticated thief will thus look to switch the VIN on the car he’s selling with one that doesn’t have a history of theft. Curbsiders have also been known to forge ownership documents as well. So how can you protect yourself against buying a car that is stolen or, worse, unsafe?

The National Insurance Crime Board lists several tips to help prevent this kind of behavior:

  • Look closely at the VIN plate to ensure that it hasn’t been tampered with
  • Verify that the VIN on the car matches the VIN on the pink slip, the registration papers, as well as the one on the driver’s doorjamb.
  • Get the particulars of the person selling you the car. Ask to see identification and write down their name, address, telephone number, etc.
  • Call the numbers associated with the seller – make sure they’re not fake.

According to the Ontario Used Car Dealer’s Association, between 18 and 24% of all personal ads placed in order to sell a used vehicle were posted by curbsiders. In a 1992 study conducted in Barrie, Ontario, the rate of used vehicles being sold illegally was pegged at around 40 percent!

Antique and salvaged cars are more prone to this kind of scam, so it really pays to know what a vehicle title paper looks like, or to see the maintenance records of the car before you spend your hard earned cash. Buying a car without this kind of scrutiny can leave you with an unreliable and unsafe vehicle.

The regulations surrounding car safety, such as the requirement for accidents to be reported, or the existence of a VIN and title paper when registering the car for insurance are only as effective as the owner’s knowledge of them. Bad people will always find ways to get around laws and take advantage of others – especially in the burgeoning used and antique car markets.

It pays to know about the laws surrounding the sale of cars because it can save you money and keep everyone, including you and your family, that much safer on the roads. So before buying or selling a used, salvaged, or antique car make sure you check with your regional authorities. And although some places have more hoops to jump through than others, it’s important to know that it’s all in the name of road safety.

You Are Here The Dangers of Curb-siders

Posted in Salvage Cars

Safety Inspection Tips for Antique Cars

There are many considerations one has to take into account when buying an antique or salvaged car. Finding affordable auto insurance and understanding the actual value of the car are two that come to mind immediately, but the most important factors one must make sure they address when buying an antique car is whether or not the vehicle is safe to drive.

For starters, there is generally very little information about these vehicles in car reporting databases used to produce vehicle history reports. There are many horror stories about the kinds of fraud perpetrated by some antique car dealers in an attempt to cover up a vehicle’s history. So, without a vehicle history report what are some other ways you can make sure that the used, antique, or salvaged car you’re looking to buy has been treated well and had regular maintenance done on it over the years?

We stood on the lawn at my grandfather’s place admiring the beautiful lines of a jet black 1973 Corvette Stingray. Grandpa had been looking for this car for what seemed like forever and he had finally bought it. My Dad, ever cautious, wondered aloud about the car’s history.

“Was the paperwork all in order, Pops?”

Grandpa nodded his head and replied, “Yeah doesn’t she look great?”

Dad and I exchange a momentary look of confusion – Grandpa must’ve turned his hearing aid down right before we revved the engine earlier.

“Dad!” he yelled, jabbing a finger towards the sky and tapping his ear with his free hand, “Turn up your hearing aid!”

After a few moments we managed to get an idea of how Grandpa made sure the car was in a good, safe condition prior to buying it. He explained how, since there was no information on it in the vehicle history databases, he had to get a mechanic to look at it to determine whether it was safe to drive. It’s important to make sure you hire a mechanic that you trust, but if that’s not possible I figure I can impart some of my Grandfather’s wisdom: below is a list of inspection tips for when you go to purchase an antique or salvaged vehicle.

  • Inspection Tip #1 – Inspect the car in daylight. If this isn’t possible, then place it under a yellow streetlamp. Deformities are a good indicator of previous damage but are hard to see if the car isn’t in a well lit area.
  • Inspection Tip #2 – Arrive early. If the seller is doing something fishy like topping up fluids, or moving license plates – you’ll see it if you show up early.
  • Inspection Tip #3 – Be methodical. Check everything inside and out. Use everything that’s useable to make sure it works properly. Look for rust on all the metal (including under the seats), get on your back underneath the car and look for structural damage too. Have a plan of attack, and make a checklist ahead of time.
  • Inspection Tip #4 – Don’t be afraid to ask the hard questions. Too often a pushy car salesman can get the best of us, and not all mechanics are honest and hard-working. You’re about to spend a lot of cash: don’t be intimidated by the others involved in the purchase.

These tips are by no means exhaustive, but can go a long way towards protecting yourself and others in the absence of a vehicle history report.

You Are Here Safety Inspection Tips for Antique Cars

Posted in Salvage Cars

Hang up for Safety

As I’ve mentioned before, the bureaucratic safety net that underlies the automotive industry is, for all intents and purposes, very effective. However, when the laws change or a new law is created it’s a big challenge for the government to communicate it to every single driver out there. It’s up to us to keep ourselves abreast of this information and although we can get it from the normal sources – friends, TV, newspapers, the radio, etc., sometimes drivers slip through the cracks.

Dad had become comfortable with the way I drove his car. Of course, with only my learner’s permit I still had to have him, or another experienced driver, in the car with me at all times. It was a good sign when he stopped correcting every second move I made. I was finally able to enjoy the simple act of driving. Don’t get me wrong – I loved having Dad there. He’s a very knowledgeable guy, at least when it comes to road traffic safety, but as I found out one day, he doesn’t know everything.

We had been driving along when Mom called my cell. I turned down the radio and picked up the phone. She wanted us to pick something up on the way home, but before she could tell me what it was I saw flashing blue and red lights in the rear-view mirror.

My heart immediately leapt out of my chest. I turned to Dad who looked confused and stunned at the same time, his eyes wide, staring into the side view mirror of the car.

“Pull over. Now,” he said.

I hung up on Mom, in the middle of a sentence, and slowly pulled the car onto the shoulder of the road. I was nervous as the cop approached.

“Just let me do the talking,” Dad said.

A few minutes into the conversation with the police officer I had learned the following things:

  • I had not been speeding
  • I had not been driving recklessly
  • Using a cell phone while driving is illegal in some states – if you’re under 18.
  • Dad does not know everything.

As it turns out, driving while using a cell phone can be as unsafe as driving while impaired. There have been several studies done, in several countries, that illustrate the delayed reaction time people exhibit while texting, or talking, and driving at the same time. The general conclusion seems to be that it is dangerous to use a hand-held device while driving. Therefore, many regions have enacted laws that limit the use of these devices while a person is behind the wheel.

I avoided getting a ticket, because it was obvious that I was still learning. Dad also managed to argue that he didn’t know about the law and therefore couldn’t be held responsible for making sure that I knew about it. The police officer was very cordial and let us off with just a friendly warning, but mentioned that the penalty – if I were to be caught again – would be much more severe.

For up to date information on the latest safety regulations and laws you can sign up for email and text alerts from the National Highway Traffic Safety Administration (NHTSA) – click here (http://www.nhtsa.gov/) for more information.

You Are Here Hang up for Safety

Posted in Safety

Website Layout: A Case Study on Auto Bid Master

A website serves different purposes for different companies, services and individuals. In most cases the website is simply a vehicle to legitimize a business, qualify their experience, and provide contact information or a physical address. Yet, more websites are becoming intrinsic to the business, as is the case for Auto Bid Master: Online Auto Auction. The purpose of the site is not only to advertise Auto Bid Master’s service, but ultimately provide it as well. Just like eBay and other online auction sites, autobidmaster.com allows you to bid on cars directly online. Since the website is their business, it is even MORE imperative that the layout and navigation is clear, and the website is clear, user-friendly, and not intimidating.

Web Page Layout Best Practices.

Web design layout can be divided into six major categories:

  • Containing Block
  • Logo & Identity Block
  • Navigation
  • Widgets & Blog Navigation
  • Content
  • Footer
  • Whitespace
  • Phone Number

Refer to the image below for a visual reference on each of these elements:

In this case study we will focus on the homepage since this is the first thing a visitor sees. If the visitor is somehow thrown off or confused by the homepage, then they will leave the site and never see another page. Therefore, the homepage is a gateway of sorts that can either make or break traffic retention, and in turn sales. For every site there are volumes that can be said in every category mentioned above. However, for this post the analysis will be simplified and focus on the layout element implemented best and implemented worst on the website.

Below is a screenshot of Auto Bid Master’s homepage:

Auto Bid Master Implements ‘WHITESPACE’ Best

The best part of Bid Master’s web design is what you DON’T see. The site is packed with dynamic content, categories of vehicles, and information.  However the most important features are user accounts and sales. Auto Bid Master wouldn’t have a successful business if visitors simply looked at car facts and images but never created an account or bid on a car.  Therefore the site must emphasize “How to Buy” which you clearly see twice on the website above the fold (once in the main navigation and again on the image banner right below it). Emphasizing that the process is easy, and then further simplifying it into four steps is key to driving visitors to sign up and bid on cars. Notice the space around the banner for “How to Buy @Auction”. The background of the banner is white with a light gradient. This matches the white background of the website, adding an optical illusion of even more space.  Many designers think a big, loud, bright box is what a website needs to emphasize a particular image or heading. This is NOT the case. Emphasis should be subtle enough that the viewer is unaware that his eyes are being intentionally drawn to that element. Big, bright blocks of info can be so obtrusive that a visitor may ignore it, thinking it’s an ad or sales pitch. The best way to emphasize an image or text is to give it the most space. Don’t allow other objects to crowd around, ultimately providing a display that is easy on the eyes.

Auto Bid Master Implements ‘CONTENT’ Worst

There is a lot going on behind the scenes for this website. That is because the website is not just informational, but the business itself therefore has many functions. These functions include a store, constant updating, and a lot of user interaction. Auto Bid Master has done a good job of consolidating this info and presenting in a clear and functional way.  The weakest element of the content is the slider (above the fold) that features the latest auctioned cars. Not to be misunderstood, the slider is definitely an advantage on this site. The blown up images and most recent auctions are definitely a bonus. The slider simplifies what would normally be a large list.  You can also control the scroller if you saw something you like. However, at some point the end user will want to stop the scroller, either because they’ve seen all the slides or simply they’re tired of seeing the animation. There is not an obvious function for this and there should be.

Conclusion

Overall Auto Bid Master’s site is well laid out, and easy to understand, navigate, and function. It consists of a lot of complicated functions and information. However, by organizing the process into four steps, allowing for plenty of space between objects and only focusing on the most important elements for the homepage (above the fold), Auto Bid Master has ultimately conquered their largest hurdle.

Posted in Layout

Requirements for Punitive Damages

Since punitive damages are meant to be used as punishment and to create deterrence among manufacturers, this is one matter that should be decided by every state based on its common-law practices. The reasoning behind this is simple: punitive damages under products liability are part of public choices that differs among states. These differences depend on the values and principles of the particular area to determine the importance of the damage generated by improper conduct and the value placed on the injustice.

Consider California, for example. In order to award punitive damages, a jury needs to value three alternatives: malice, oppression or fraud. Without one of these elements present in the case, no punitive damages can be awarded.

What can we understand about the concept of malice? The subject that acts with malice has the intent to cause the injury, and in this action, he or she acts willful and knowingly disregards the rights and safety of another. Moreover, the actor understands the risks, yet knowingly disregards them. This is not a case of negligence, in which the actor did not intend to harm another. In malice, the wrongful party knew that there was a negative possibility and did not take appropriate measures to prevent that risk, avoiding the foreseeable consequences of one’s action. For example, a pharmaceutical company is aware that the use of a certain flu medication it is likely to cause pregnant women to miscarry, and the company fails to warn the public of this possibility.

What is oppression? The principle behind this concept is even more serious since a person or company acts oppressively when the conduct is proved to be highly inappropriate and considered wrong by reasonable people. Here, one acts in a cruel and unjust manner, causing hardship and knowingly disregarding the rights of others. For example, a pharmaceutical company does not test a new drug in order to review the secondary side effects that it may have on pregnant women, even though a layperson believes that this should be a normal procedure for drug testing.

What constitutes fraud for this analysis? The concept of fraud is concealing the fact behind a product and intentionally trying to cause harm to others. It is very rare that one can apply this standard to products liability because one needs to prove that the manufacturer wanted to harm its consumers or intentionally lied in order to disguise the truth about the dangers of continuously using a product, like medicine.

Under a malice case, the manufacturer is aware of the harmful consequences of the use of the product and actively tried to conceal this fact.

For example, a pharmaceutical company developed a medicine that is likely to cause women to miscarry. However, the company could spend 50 cents more, changing one of the main ingredients of the medication and negating the serious side effect. The side effect can be avoided, but the manufacturer decides not to assume the extra costs of this modification.

In the case of Grimshaw v. Ford, the company was forced to pay punitive damages based on the fact that it did not modify the design of its Pinto model, putting the gas tank behind the axle in order to save the costs of a shield. According to the court, the cost of this shield was negligible compared with the potential harms that the absence of it could cause.

Posted in Legal

The Exceptional Act of Automobiles

When compared to the European Union, the United States lacks regulations to protect the rights of agents and representatives.  The European Union, however, protects agents from abusive payment clauses or termination without just cause.

One of the few exceptions in the United States legal system is the Automobile Dealers Act of 1956, 15 U.S.C.A.  In Chapter 27, the act regulates a privilege statute for agents. [See Reference 1.]

This act is applicable to any persons or business conducting transactions and maintaining residency in the United States, including Washington, DC.  The businesses must operate a franchise (or a written contract with an automobile manufacturer aiming to amend the commerce rights and liabilities of this agreement), sell, or distribute passenger cars, trucks, or station wagons.  The statute is not limited to the transactions within the United States, but also applies to transactions approved by automobile dealers abroad.

The act guarantees contracting freedom, allowing the agent to conduct business and enter contracts without coercion, intimidation, or threats by the manufacturers.

According to the statute, an automobile dealer can sue the manufacturer to recover any damages suffered from a direct and lost legal battle.  The lost suit must be a direct result of failed products produced by the manufacturer.  The act is consistent with the general torts legislation, where an agent could be reimbursed for any damages paid for product failure by the party responsible for the damages, who in this case is the manufacturer.

The act also authorizes the dealer to sue the manufacturer for terminating, cancelling, or not renewing the franchise.  This act is particularly interesting because of the protection it offers the automobile market when compared to other businesses that lack such a statute.

The same act helps prevent potential claims because the statute includes an arbitral clause on franchise agreements.  To use arbitration, the parties must consent after the controversy arises, prohibiting the parties from choosing an arbitral judgment in advance.

The automobile industry has specialized regulations on both a federal and state level.  In any market, it is important to be fully and properly informed about the legal activity regulations in the state where a company will operate.  For instance, some states require companies to fulfill specific requirements.  If a company wanted to operate a car dealership in Florida, the agent should be knowledgeable and assist the manufacturer and importer in obtaining an operating license. [See Reference 2.]

Fernanda Juppet, Corporate Attorney and MBA
References:
[1.] See http://uscode.house.gov/download/pls/15C27.txt.
[2.] See http://www.law.fsu.edu/journals/lawreview/downloads/293/Forehand.pdf.

Posted in Automobiles

Salvage Car Marketing: Direct Consumer Contact Strategy

The challenge of connecting the salvage car dealer with the salvage car consumer at first glance seems elementary. In the broadest sense, from a dealer standpoint, your customer base is people who profit from purchasing salvage cars and people who save money by buying salvage cars. Within these two categories are several market segments such as used car dealerships, mechanics that repair and rebuild cars, car enthusiasts, eco friendly people and people looking to economize. Each of these markets can be driven to your business through a variety of techniques; however, each market requires a unique approach to effectively capture that specific market.

You can’t market French fries to people who are on a Weight Watchers program effectively, but you can market fat free skinny fries to them. The key to driving business to your door is to understand who your customer is and what motivates them to purchase a salvage car. From there, you need to determine the most effective avenue to spread the word to those specific markets in such a way that reveals you are the best in the business. Understanding the motivation behind your customer is the key to determining how to market to them.

Let’s look at the professionals in the business first. Mechanics, used car dealers and even car enthusiasts have a specific passion for the business that motivates them. They are in this business because they like it. But what is it that they specifically like about the business? Do they have a passion for a specific make of car?  Obviously, you are not going to be able to launch a separate marketing plan for each individual sect within the market segments, but you can find common ground that will appeal to the broadest group of people within each submarket at one time.

In looking at the group comprised of nonprofessionals, it is clear that finding common ground for an approach that can effectively capture the interest of the majority of individuals should not be that difficult a task. There is a lot of crossover interest potential as this group encompasses individuals belonging to the general public. What might eco-friendly buyers have in common with buyers trying to save money? One common thread is that there is a tone of reluctance in each group. They are not buying a salvage car because they are motivated by passion or the desire to acquire something that makes them happy, they are motivated by an outside source which is to either save money or save the planet. This group is less informed about the process of buying a salvage car and may even require assurance that they are not going to be taken advantage of during this endeavor. These individuals require guidance and you need to gain their trust. The most effective way to earn their trust and to guide them is to educate them about the process in which they are about to undergo.

What you can do:

Teach your customers how to protect themselves, get a good deal, get the most from the salvage car buying experience, and how to deal with the legalities and the DMV requirements involved. By showing your prospect the ins and outs of the business in a way that benefits them the most, you gain a customer as well as potential repeat business.

Dana Martin
Marketing Professional

Posted in Marketing

Current Car Manufacturer Developments

Despite the looming supply issues caused by the dwindling reserves of vital raw materials, the philosophy of the major car manufacturers seems to be one of cashing in on the rising demand for the product now and worrying about the consequences later. The manufacturing of hybrids is no longer exclusively for the few, but has become commonplace throughout the industry. This is reflected in the wave of new models that have been introduced into the marketplace since 2009.

Hyundai has galvanized its domestic South Korean market with the launch of its own hybrid, the Elantra LPI. This is the first hybrid to be powered by an internal combustion engine running on liquefied petroleum gas (LPG) as a fuel. It also has adopted advanced lithium polymer batteries in response to concerns over standard nickel batteries.

Interestingly, more luxury manufacturers are adopting hybrids, with Mercedes Benz launching its S400 Blue Hybrid and BMW with its Active Hybrid 7, both in 2009. These manufacturers now realize that they can better their brand by adopting new types of hybrid technology. So in addition to new models being developed, their existing popular models are able to be fitted with hybrid engines.

A prime example of this is the launch of the Porsche Cayenne Hybrid in late 2010. As far as an effective counter-attack by car manufacturers against the environmental protection lobby, this is hard to beat. Suddenly, one of the high profile symbols of environmental damage, the 4×4, doesn’t seem so nasty after all with a new seriously fuel efficient engine. Maybe this was what Ferdinand Porsche had in mind all along back in 1900. Porsche are playing it very safe initially though, as they have only launched it in the United States. Not to be outdone, Volkswagen announced at the 2010 Geneva Motor Show, the launch in 2012 of the Touareg.

Toyota is showing no signs of resting on its laurels and despite worldwide recalls of some of its more popular non-hybrids, after launching the Auris Hybrid in May 2010. This incidentally, was the first mass-produced hybrid vehicle to be built in Europe and is also significant in that the starting price is some $800 dollars cheaper than the pin-up boy of hybrid cars, the Toyota Prius. Clearly, the race to develop hybrids has driven down the cost of these technologies. Peugeot also, has now joined in by developing the first production diesel-electric hybrid, the 3008Hybrid4. As it delivers an impressive 62 miles to the US gallon it illustrates how the technology is continuing to be improved.

One of the ways fuel consumption has been reduced since 2007 is through the application of regenerative braking technology. This enables energy that otherwise would have been lost during breaking to be captured and stored to power electrical accessories such as air conditioning. Usually the energy used in the braking of a vehicle is wasted in the form of heat energy, but regenerative braking converts the vehicle’s kinetic energy into battery-replenishing energy. There is also scope to increase the efficiency of hybrids through the use of their internal combustion engine to generate electricity by spinning an electrical generator to either recharge batteries or to directly power the electric drive motors.

Manufacturers are also actively featuring in their marketing campaigns the facility in hybrids that allows the engine to be shut down while idling when cars are stationary in traffic, and restarting when needed. As the perceived advantage of hybrids has mainly been focused on urban driving settings, this is a real bonus not only for the petrol paying motorist, but also for cyclists and pedestrians who benefit through the availability of cleaner air.

The fact remains however, that most hybrids use gasoline engines alongside their electric components, and this is expected to be the case for the foreseeable future. For the green credentials of the hybrid car industry to really stand up to scrutiny, surely the next challenge is to develop hybrids that don’t rely on fossil fuels as their main power source, but use alternatives such as bio-fuels or hydrogen or even go entirely electric.

You Are Here Current Car Manufacturer Developments

Written by Mark Evans
Edited by Stanley Butler
Illustrations by Julianne Harnish
Video Engineering by Aaron Peters
Video Production by IMEX Marketing

Executive Producers
International Tuition Services Ltd
Spheri Dot CA Incorporated

Posted in Car Manufacturers

Barriers to Greater Hybrid Uptake

It’s easy to assume that the on-going development of hybrid cars is going to be relatively trouble free, and the early assertions that they would only form a small proportion of the overall share of the car market is already proving to be a very flimsy premise. However, there are still some potentially significant challenges ahead that need to be addressed.

Ironically, most of these barriers are environmentally related. For all the positive figures on the falling carbon emissions and fuel economies being made with this new technology, there is a mounting concern about the environmental impact the type of batteries being used in hybrid cars are causing. These batteries are of two types, nickel metal hydride and lithium ion batteries, and both types do present problems. While batteries found in hybrids are far less toxic than standard car batteries, nickel based batteries contain carcinogenic substances. There is growing movement in the industry to minimize the risks posed by these batteries. Hitachi, for example, is attempting to develop more efficient lithium-ion batteries which should take the more hazardous nickel-based batteries out of the equation altogether.

Of greater long-term concern is the shortage of raw materials that is already starting to have an impact on the development of alternative batteries and many other key components in hybrid cars. The availability of, and the subsequent pricing of the little known rare earth element, dysprosium, has significant implications for the future of the hybrid industry. Dysprosium is required in the electric motors and battery systems of hybrid cars. Neodymium, another rare earth substance, which is crucial in fabricating the high-strength magnets that are found in permanent magnet electric motors, is also of concern.

Ironically, nearly all the rare earth elements in the world come from China. Just as the United Kingdom was able to exploit its coal reserves to great economic advantage at the start of the industrial revolution when it not only had the reserves of coal, but also the technology and know-how of how to mine, process and ship it, China finds itself in a similar position today. China is the chief supplier of these rare earth substances to the world and possesses an enormous amount of these hugely valuable natural resources.

Therefore, in industry circles, there is a feeling that this supply issue is something of a ticking time-bomb for the further development of hybrid cars. It seems that China is not over keen to open up its supply of rare earth elements to overseas interests as is shown by its placing an export quota on these vital materials. Moreover, it is believed that an overall increase in general Chinese electronic manufacturing could well consume their entire total supply within the next few years.

Aside from the political and economic wrangling that is going as a result from this, there is also a serious environmental impact that is already being felt. There are areas of northern China that resemble some kind of industrial apocalyptic battlefield as increasingly damaging methods of extraction and processing are being employed to get to these rare earths. It is hard to accept the imagery employed in the slick marketing of hybrids while one is aware of the fact that so much environmental degradation is going on in the process to extract these substances.

Nevertheless, it is unlikely that the shift to hybrid cars is going to stall as a result of this as the major manufacturers have now invested heavily into this area. There is now something of a race to find non-Chinese sources of rare earth substances, as seen in the case of the Hoidas Lake project in northern Canada and Mount Weld in Australia which is presently being developed.

The fact remains, however, that there is massive capital outlay and investment required to find these alternative sources and with an increasingly stringent environmental standards that need to be adhered to, the barriers for new players to enter this field are very high indeed. The end result of this may mean a decrease in competition to develop these fields which could be bad news for consumers of these products. Where there is a lack of competition, it generally follows that prices are higher for products which can and does have a considerable flow-on effect.

You Are Here Barriers to Greater Hybrid Uptake

Written by Mark Evans
Edited by Stanley Butler
Illustrations by Julianne Harnish
Video Engineering by Aaron Peters
Video Production by IMEX Marketing

Executive Producers
International Tuition Services Ltd
Spheri Dot CA Incorporated

Posted in Hybrid