Archive for August, 2011

Oil Price Illusion

Monday, August 29th, 2011

The price of finished oil products continues to climb. Our business and others like us are staring down the barrel of our fourth price increase this year of 8%, 8%, 10%, and now 6%. Those increases are just for the base stock. The additive package that goes into that quart of oil that goes into your car has increased in price 3 times so far in 2011 with another round on the way. Even though we are seeing oil getting cheaper on the commodities market, that situation is not passing through to the end users, you and me, and it won’t anytime soon. We are on our way to continuous price increases in motor oil.

Controlling vehicle operating costs is on everyone’s mind, and one of the best ways to do that is to use oil that meets the specifications of the manufacturer of your car, and use the oil change intervals that are recommended. More is not better. Changing oil more frequently than recommended is a waste of money and resources. It increases the volume of waste entering the environment with no positive effect on vehicle performance, longevity or costs. Recommended service intervals include a time and mileage factor, whichever is first, and it is important not to exceed those criteria. These intervals only work with oil that is recommended by the manufacturer. The specifications, which are in your owner’s manual, must also be printed on the oil bottle. If they are not printed on the oil bottle, that oil is not approved for use in your vehicle no matter what the manufacturer of that oil claims. Also, do not use additives. Oil companies pay thousands of dollars to car manufacturers to have their oil approved for just one application and the car maker engages in exhaustive testing to ensure that their engines meet strict emissions and warranty requirements while maximizing longevity. Additives can cause harm to catalytic converters, oxygen sensors, particulate filters, piston rings and camshafts. The same goes for a low quality oil or the wrong oil. It is almost without exception that when we replace a catalytic converter on a VW product, we discover the owner had been using the wrong oil.

Again, more is not better. Frequent changes with a cheap oil will not protect the aforementioned components. In fact using this strategy will do more harm than leaving a high quality oil in too long. Be an informed consumer and save money in the process. Make sure your oil change establishment is using the correct oil in your car. Ask to see the label to make sure, or go online and check the oil company’s website for a list of approvals for that oil. You’ll be rewarded with many thousands of miles of trouble free operation.

Popular Delusions and the Madness of Crowds

Sunday, August 14th, 2011

This is not going to be a treatise on the book written by Charles MacKay, Extraordinary Popular Delusions and the Madness of Crowds about the tulip bulb mania in Holland in the 1600’s, but it does have a parallel in auto repair in that crowd behavior is similar no matter what the topic. What I am referring to is maintenance.

In order for any machine to work well and be reliable, it needs regular maintenance. This is why companies are such sticklers about maintaining their equipment and machinery. A machine that breaks down and stops production costs them big money.  However, the average motorist pays little attention to this cost saving strategy employed by businesses. Many defer maintenance because they “don’t have the money right now”. This is delusional thinking. Money is saved over the long term by putting the car on a regular maintenance plan and taking care of needed repairs before they lead to bigger problems. Believe it or not this concept is kind of abstract.

A car is an integral part of almost everyone’s life because we don’t have very good public transportation in the U.S. Without a car we don’t get to work, or the grocery store, or engage in our favorite forms of entertainment. Yet, for some perverse reason, we believe this complex machine will run forever with no maintenance. Then the day of reckoning arrives and now the car is a “piece of junk and I am getting rid of it” because it needs a couple of thousand dollars in repairs and deferred maintenance. Deferring maintenance and repairs almost always leads to higher cost of operation over the long term. The long term doesn’t just involve the car, but also a number of other factors. What is the cost of being late for work, or worse yet not getting to work, angering your boss and co-workers? What is the cost of being late for your kid’s soccer event or school play or missing them altogether? What is the cost of having the car break down before or on that vacation you have been looking forward to for months?

Our attitude toward maintenance is driven by perceived risk. Some people will not fly in an airplane, which is statistically much safer than driving, but they perceive that the risk is greater in an airplane when reality states otherwise. Humans are not driven by logic. Logic says to maintain the machine, but our hearts want that new iPad. So we rationalize that the machine will just keep running. We perceive its possibility of failure as low. Just as illogically, we decide we aren’t going to put any more money in this “piece of junk”, but will go out and buy another used car, on which the previous owner deferred maintenance. After all, who would meticulously maintain a car and then sell it? That’s lunacy. So we buy somebody else’s problem child, have no idea how the car was used, and spend thousands of dollars fixing it. Is this rational behavior? After we get caught in this trap, we rationalize that we were tired of the old bucket of bolts anyway. As crazy as it sounds, I’ve observed this behavior over and over in my 40 years in the auto repair business. I’ve recommended to folks that they get rid of a car because I know the thing is just going to be a money pit. Some cars are like that. Yet, they will hang on even when I show them the numbers going forward. On the flip side, I have seen really good cars with deferred maintenance issues, but the owner would rather sell it and get something else in the belief that it will be cheaper, only to find himself caught in the same maintenance and repair issues as the old car. Sometimes worse.

Bottom line. Get an honest opinion about the vehicle you now have and make an objective evaluation about the maintenance plan or lack thereof that you have been doing. If your car is going to require a fair amount of money to make it reliable and increase its longevity, compare that to the purchase price of another car plus the unknowns of deferred maintenance or structural issues. If your car is paid off, the cost of maintenance and repairs is like buying a used car, but at a steep discount. You don’t have the problem of unknowns with your own car. Happy Motoring!