The Supply Chain Impact on the Auto Industry

• The current supply chain issues are affecting more than just new car inventory and used car prices. It's also impacting the repair industry.
• New car dealerships are seeing empty lots, and the prices of used cars are soaring as people turn to them when new cars are unavailable.

Challenges in the Repair Industry

• Repair facilities, both at dealerships and independent garages, are struggling to get vehicles back on the road due to parts shortages.
• Some parts have months-long backlogs, delaying repairs for extended periods.

Example of Repair Delays

• A driver involved in a minor fender bender had to wait over a month for parts to arrive at the repair shop, which affected the timeline for simple repairs.
• Even mechanical and electronic parts are facing sourcing issues, with some shops stating that they’ve never seen it this bad.

Case Study: A 26-Year Veteran’s Experience

• A repair shop manager mentioned a Ford F-150 that sat for four months due to a part being unavailable.
• With rental cars in short supply, many people are struggling to find alternative transportation while their vehicles are off the road.

The Impact of Minor Collisions

• A minor collision or mechanical issue can render your vehicle undriveable for months if parts are unavailable, adding strain on transportation.

The Rental Car Shortage

• Check out your local Enterprise Rent-A-Car for inventory availability. Many locations are experiencing days with zero vehicles in stock, and when vehicles are available, the rental fees have surged.

The Electric Vehicle Shift and Parts Crisis

• As automakers shift focus to electric vehicles, parts for internal combustion engine (ICE) vehicles are becoming even harder to find.
• Manufacturers are no longer developing new gasoline vehicles and are not producing extra parts, worsening the current shortage.

Long-Term Effects on Legacy Vehicles

• The shift away from ICE vehicles means parts production is declining, which could lead to a lasting parts shortage, particularly for older vehicles.
• This could result in scenarios where cars on the road are no longer fixable due to part unavailability.

What This Means for Car Owners

• If you own a vehicle that’s more than a few years old, you may face difficulties finding parts in the future.
• The situation could resemble the past, like in Cuba, where cars were kept running through part scavenging, but with more complex and specialized parts in modern vehicles, interchanging parts may not be an option.

Your Thoughts on the Parts Crisis?

• What do you think about the potential long-term impact of this parts crisis on vehicle usage? Let us know in the comments!

Overview: If your car lease is about to end, here are three options to consider for disposing of the vehicle. Every lease is different, but these general guidelines can help you decide the best choice.

Option 1: Return the Car to the Dealer

• Drop off the keys and walk away if you're under the maximum mileage and there is no major wear or damage.
• Important: You might be walking away from hundreds or thousands of dollars in equity that you didn't know you had—dealers may not always inform you about this.

Option 2: Trade the Car for a New Vehicle

• Caution: Understand the difference between a trade-in and a turn-in.
• Leases offer a fixed price to buy your car at the end of the term, based on projected depreciation.
• What’s changed: Vehicle prices have surged in recent years, and your car may now be worth more than the original buyout price.
• If your car is worth more than the buyout price (e.g., a $30,000 car that’s worth $20,000), you can:
  • Buy it for the lower price and sell it for a profit.
  • Trade it in, but make sure to get the equity applied towards your new car purchase.
• Important: Ensure the dealer applies any equity from your current car towards your new car, or you may lose out on that value.

Option 3: Buy the Car

• Advantages:
  • You get a used car with a known history—no surprises.
  • If you’re over on mileage or there’s damage, it doesn't matter when you buy the car.
  • Buying the car locks in the price, even if the market value is higher.
• Things to Watch Out For:
  • Some leases require you to buy the car before reselling it.
  • Watch for any disposition fees (e.g., $200-$300) that may be included in the contract.
  • Some dealers may try to mark up prices for certification or repairs—check your contract to ensure these fees are not added later.
  • If you buy the car, make sure the title is transferred from the leasing company to your name.

Additional Tips:

• Start the process early—don’t wait until the last minute.
• Consider financing options carefully—dealers may offer higher rates than your bank or credit union.
• Make sure you get the title transferred immediately to avoid future hassle.
• Have questions about your lease turn-in? Leave us a message in the comments. This could be a great way to score a fantastic deal on your car, especially if you're aware of all the options available!

California's Push to Ban Gas-Powered Cars:

• California is looking to phase out the sale of gasoline-powered vehicles, requiring all new vehicles to be electric (EVs).
• Although this law is specific to California, it holds national significance as California represents 15-18% of the automobile market.
• Other states, such as Washington, are also planning to phase out gas-powered cars by 2030, with several more states expected to follow suit.
• As a result, around one-third of the U.S. population will live in states where gasoline vehicles will no longer be sold, and in some cases, even existing gas-powered cars may not be allowed to be registered.

The Challenges of Owning Gas-Powered Cars Post-Legislation:

• If these laws pass, it may become difficult to purchase or maintain gasoline-powered cars due to a lack of available parts and discontinued production.
• Manufacturers may stop producing parts for gas cars as the market shifts towards EVs, and maintaining older gas-powered cars could become challenging.

Rising Electric Vehicle Prices:

• Alongside these laws, EV prices are on the rise. For example, Ford has announced price increases of $6,000-$8,000 for certain EV models due to production cost hikes.

Implications for Consumers and the Industry:

• What does it mean for consumers if electric vehicles become a requirement and gasoline vehicles are phased out?
• Are you ready for an all-electric future? Do you have the capability to charge an EV and the infrastructure to support long-distance driving?

Impact on the Automotive Repair Industry:

• How prepared are automotive repair shops for the transition to EVs? Will traditional repair shops be able to handle the electronic-based repair needs of EVs, or will repairs become restricted to authorized dealers?
• Will third-party repair shops fade away as everything becomes more electronic?

Collision Repair and Dealers:

• Collision repairs for EVs may be more complex, especially when it comes to damage to the battery and floor pan.
• What does the future hold for car dealerships and used car lots? Will used EVs still be practical to buy and sell, especially when the battery warranty expires?

What Are Your Thoughts?

• Share your feedback on the transition to electric vehicles and the new laws changing the automotive industry. What do you think about living with electric-only vehicles, and how do you see the repair and retail sectors evolving?

Common Issue: Many vehicle owners face problems with liens remaining on their titles despite loans being fully paid. This issue occurs frequently, with hundreds of similar cases reported daily.

Real-Life Example:

• A North Carolina resident faced difficulties registering her vehicle due to an unresolved lien. The car's title bounced between California and North Carolina DMVs, highlighting inefficiencies in inter-state coordination.

How It Happens:

• When a loan is paid off, the lender typically stamps the title as "paid" and sends it to the owner.
• Lenders often fail to notify the DMV to update the title record, as this requires additional effort, forms, and fees.
• Owners assume their title is clear, but the DMV’s records still show an active lien.

Challenges with Lost Titles:

• If the stamped title is lost or never received, the owner cannot prove the loan was paid off.
• DMV laws prevent removing liens without official documentation from the lender.

Why Lenders Don’t Update Titles:

• Banks lack dedicated staff to handle lien releases.
• They often rely on vehicle owners to manage this process themselves.

Steps to Resolve:

• Once you receive the lien release or stamped title, immediately take it to your DMV to update the records.
• If the title is lost or incomplete, contact the lienholder to request replacement documents.
• Complete the necessary DMV forms yourself and send them to the lender for verification. Use certified or registered mail for tracking.
• Be prepared for potential delays, especially if the vehicle was purchased in another state.

Why It’s Important:

• A clear title ensures you can sell, transfer, or register your vehicle without complications.
• Unresolved liens can lead to legal disputes or court orders to correct the title.

Key Takeaway:

• Lien releases are not automatic. Owners must proactively update title records to avoid future problems.

Additional Resources:

• Watch our instructional videos for detailed steps on clearing liens and resolving title issues.

If you’re facing this problem, you’re not alone! Learn why it happens and what you can do to fix it.

Discover why leasing a car in the past few years might have been one of the smartest financial decisions you made. In this episode, we dive into:

• The Basics of Leasing:
  • How lease agreements let you walk away after 2-4 years without additional payments.
  • Options available at the end of a lease: walk away, buy the car, or trade it in.
• Lease Buyout Explained:
  • Your lease includes a pre-determined buyout price, typically around 50% of the car's original value.
  • This fixed price can be advantageous when used car values increase.
• Residual Value vs. Market Value:
  • Historically, lease buyout prices matched market value, but recent trends show a gap.
  • Cars with a buyout price of $25,000 might now be worth $30,000 or more.
• Smart Financial Strategies:
  • Purchase your leased vehicle at the buyout price and resell it for profit.
  • Use the lease’s equity as a trade-in towards your next car.
• Key Insights for Current and Future Leasing:
  • Current market trends make lease buyouts attractive for vehicles leased between 2018 and 2020.
  • Understand the differences between lease turn-ins and lease trade-ins to maximize value.
  • Be cautious about leasing new cars today, as market conditions may not be as favorable in 2-3 years.
• Practical Tips for Lease Buyouts:
  • Ensure proper paperwork for the lease buyout process, as it differs from a typical lien payoff.
  • Buying out your lease could add equity to your next purchase or put extra cash in your pocket.

Take advantage of the current sweet spot for lease buyouts and maximize your financial benefits!

In This Episode:

• Explore the differences between a mechanics lien and a civil lien for obtaining a title for a vehicle.
• Learn how to address situations where a vehicle is missing a title, abandoned, or left on a property.
• Understand the options available if:
  • You’ve repaired a vehicle, and the owner hasn’t paid.
  • You’ve towed or stored a vehicle, and the owner is unresponsive.

Key Highlights:

• Mechanics Lien
  • Requires an automotive license (e.g., repair shop, towing company).
  • Can clear existing bank liens on the vehicle title.
  • Must follow strict state-specific rules and timeframes.
  • Requires:
    • A signed repair order from the owner.
    • Proper notices to the owner and lienholder.
    • A public auction of the vehicle.
  • Limitations include caps on storage fees and the risk of rejection if procedures aren’t followed.
• Civil Lien
  • Available to non-licensed businesses and individuals (e.g., landlords, property managers).
  • Bypasses DMV-specific requirements and document formalities.
  • Filed in local courts with no strict deadlines or prerequisites.
  • Potential drawbacks:
    • May require in-person court appearances.
    • Slower process depending on court schedules.
    • No pre-formatted forms; requires creating a petition from scratch.

Steps to File a Civil Lien:

1. Draft and file a petition with the county clerk.
2. Provide supporting documents, such as an affidavit of facts.
3. Submit required DMV paperwork and respond to court notices.
4. Obtain a Judgment of Ownership from the court.
5. Use the judgment to secure the vehicle’s title from the DMV.

FAQ:

• Costs: Expect court filing fees, title fees, and potential inspection or insurance costs.
• Title Type: This process does not create restrictions like salvage or bonded titles.
• Insurance: It's recommended to insure the vehicle before starting the process.

Disclaimer:
We’re not attorneys, and this is not legal advice. Consult with a professional for case-specific guidance.

Tune in to learn:
How these methods can help you navigate complex title situations and overcome DMV challenges to gain legal ownership of a vehicle.

Explore the critical question of whether your next vehicle will mark the end of an era—whether it’s the last gas-powered car or the first of many electric ones. In this episode, we dive deep into the electric vehicle (EV) revolution and its potential impact on the future of transportation.

Key Discussion Points:

The Shift to Electric Vehicles (EVs):

• Government mandates and auto manufacturers' push for EV adoption.
• The growing restrictions on gasoline vehicles and the potential future ban by 2030 or later.

Challenges Facing EVs:

• Limited charging infrastructure and its impact on long-distance travel.
• The business model for EVs: is it sustainable?
• Ford and Buick’s strict requirements for dealerships to sell EVs or face buyouts.
• Expansion of electrification beyond cars—electric airplanes are in development.

What the Future Holds:

• Will EV adoption succeed, or could the industry revert to gasoline-powered cars?
• How soon gasoline vehicles might become rare or less desirable?

Planning for Change:

• The impact of EV charging times on daily life and travel habits.
• Preparing your home for EVs: the importance of installing a 240V circuit for at-home charging.
• Rising costs of retrofitting for EVs in the future and why early investment might pay off.

Time Perspective:

• The rapid approach of 2030: How quickly time flies, comparing it to events from 2016.
• Could your next car truly be your last gas-powered vehicle?

Community Engagement:

• Share your thoughts: Will EV adoption stick, or will we revert to gasoline?
• Leave your comments and join the conversation about the future of transportation.

Listen now and discover how these changes could reshape your driving experience and lifestyle in the years to come!

Evolution of Automotive Technology

• Cars have increasingly integrated advanced technology since the 1980s, with features like voice alerts for open doors or low batteries.
• Modern vehicles now utilize computers, chips, and sensors to diagnose issues without a mechanic’s intervention.

Advanced Repair Technologies

• Diagnostics have moved beyond basic diagnostic ports to advanced systems that allow for software-based repairs, upgrades, and programming.
• Electric vehicles (EVs) rely more on software and less on traditional mechanical components, reducing the need for frequent mechanical repairs.

Differences Between Internal Combustion Engines and EVs

• Internal combustion engines face wear and tear from mechanical components like valve trains, rods, and transmissions.
• Electric motors in EVs are more reliable, with fewer moving parts and smoother operation compared to the violent internal combustion process.

Impact on Auto Mechanics

• The role of mechanics may change dramatically, with fewer maintenance requirements and a shift toward software expertise.
• Availability of replacement parts may decrease due to the reduced need for mechanical components in EVs.

Repair Challenges for Electric Vehicles

• Collision repairs may face new hurdles; EV batteries integrated into the chassis may render damaged vehicles unsafe for repair.
• Damaged batteries pose safety risks, such as fire hazards, making some vehicles unrepairable.

Economic Shift in Repairs

• Electronics and sensors in vehicles may surpass the value of the vehicle’s body, influencing decisions to total vehicles rather than repair them.
• Insurance companies might opt to salvage valuable electronics and motors instead of repairing heavily damaged vehicles.

Future of Automotive Repairs

• The shift to EVs and advanced technology could revolutionize both mechanical and collision repair industries.
• Will cars become as disposable as smartphones when repairs are no longer feasible?

Let us know your thoughts on the future of automotive repairs. If you’re in the industry, share your experiences with fixing newer vehicles!