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Speaker 1: Ron Anian got to repair as a national trend with

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Speaker 1: regional results, and the culture is regional.

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Speaker 2: The Car doctor birthday.

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Speaker 1: It's probably a charging system issue where the charging system

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Speaker 1: voltage isn't right. So right now you're running off the battery.

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Speaker 1: You're kind of like the Starship Enterprise. When the warp

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Speaker 1: drive goes out, you're now running on impulse power.

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Speaker 2: I checked the engines the warp drive. That's a hopeless

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Speaker 2: pilot junk. Welcome to the radio home of ron Ananian,

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Speaker 2: the Car Doctor. Since nineteen ninety one. This is where

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Speaker 2: car owners the world overturned to for their definitive opinion

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Speaker 2: on automotive repair. If your mechanics giving you a busy signal,

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Speaker 2: pick up the phone and call in. The garage doors.

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Speaker 1: Are open, but I am here to take your call

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Speaker 1: at eight five five five six ninety nine hundred and now.

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Speaker 1: He running the automobile plays such a big part of

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Speaker 1: the economy. I think it teeter totters back and forth

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Speaker 1: between the second and the third most expensive purchase you're

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Speaker 1: going to make in a lifetime and deal with in

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Speaker 1: a lifetime, and it's always fun to talk about. We've

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Speaker 1: had him back now a couple of times. We're always

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Speaker 1: glad to talk to him. He's our guy on the

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Speaker 1: ground in the automobile industry. Cherokee Hart, he's the business

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Speaker 1: manager at Mawall four, obviously in Mahwah, New Jersey. Cherokee,

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Speaker 1: Welcome back to the car Doctor.

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Speaker 3: Thank you very much for having.

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Speaker 1: Me so right off the bat, how's business.

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Speaker 3: Well, hasn't exactly been off the charts, but it's consistent,

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Speaker 3: you know.

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Speaker 1: Right, So, and you know you got to make hay

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Speaker 1: while the sun shines, and you'll have busy weeks and

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Speaker 1: slow weeks. And I think I think this year, you,

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Speaker 1: like a lot of other car dealers, are in that

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Speaker 1: everybody's kind of focusing on high school graduations and college

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Speaker 1: graduations and and that kind of stuff.

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Speaker 3: Right absolutely, And then you know, the thing's going on

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Speaker 3: in the economy as well, right changes the temple of

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Speaker 3: the business.

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Speaker 1: So, and there's a great segue, Thank you so much.

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Speaker 1: Tariffs it's on everybody's mind. I can't tell you how

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Speaker 1: many times at the counter somebody starts, you know, should

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Speaker 1: I buy my battery now or should I buy it

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Speaker 1: in six months? Will the tariffs affect it? Will this

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Speaker 1: affect it? And then tariffs on the automobiles. How has

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Speaker 1: that you know, can you speak to how has that

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Speaker 1: affected the industry and then specifically how has it if

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Speaker 1: it has affected Ford.

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Speaker 3: So it has affected and will continue to affect the

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Speaker 3: industry itself. Starting on May second, of course, the terriffs

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Speaker 3: went into the effect. There are some manufacturers that saying

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Speaker 3: that they're going to be able to absorb the majority

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Speaker 3: of the terrors and not pass it on to their customers.

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Speaker 3: But in some ways, should our form, it will get

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Speaker 3: passed on eventually. There's no way just to you know,

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Speaker 3: eat on the expenses over time. But one of the

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Speaker 3: things that we do know is that with Ford, the Machi,

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Speaker 3: the Maverick, and the Broncos Sport will see a slight

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Speaker 3: increase in pricing, which is up to possibly two thousand

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Speaker 3: dollars to the MSRP. However, Ford is starting to absorb

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Speaker 3: most of the terraffs that are being put on their vehicles,

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Speaker 3: and the.

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Speaker 1: Terrafs are affecting vehicles. It's affecting vehicles made outside of

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Speaker 1: the United States.

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Speaker 3: Correct, Yes, Basically, you have kind of a system where

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Speaker 3: vehicles come into the US to get certain parts and

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Speaker 3: things assembled. Then they may go up to Canada or

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Speaker 3: to Mexico to get other parts assembled there and they

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Speaker 3: come back into the US because the US do not

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Speaker 3: produce every single part of a vehicle. You have some

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Speaker 3: parts that come from China, you have some parts that

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Speaker 3: come from Korea, Canada, Mexico. As we know, so the

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Speaker 3: parts of the vehicles are coming from so many different places.

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Speaker 3: There are thousands of parts that go into building one vehicle,

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Speaker 3: right sure, Therefore they're coming from so many different places.

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Speaker 1: How has I don't know if you'll if you'll know

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Speaker 1: this answer, but you know, just mawaf Ford alone, as

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Speaker 1: big as they are, they've been there forever, very well known,

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Speaker 1: you know, family dealership in North Jersey. Yeah, how has

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Speaker 1: the terriffs affected ability to get parts? In general? Are

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Speaker 1: they do? You know if the parts department is struggling.

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Speaker 3: The parts department has not seen the full effect just

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Speaker 3: yet of the terriffs, but they most definitely are bracing forward.

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Speaker 3: So of course we order as many parts as we

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Speaker 3: could that are regular parts that we would have shipped

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Speaker 3: from outside the country. So you get as many parts

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Speaker 3: as you know that ship from outside the country here

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Speaker 3: and you just hope and pray that you know, the

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Speaker 3: business doesn't slow down too much. But we've not been

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Speaker 3: affected too heavily just yet because it just kind of

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Speaker 3: started at the beginning of the month.

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Speaker 1: Do you think that the tariffs have slowed down parts

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Speaker 1: deliveries are? Do you think that some of the vendors

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Speaker 1: are playing the game of well, if I wait a

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Speaker 1: little bit longer, I may be able to charge more

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Speaker 1: for this part. Do you think that's come into it yet.

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Speaker 3: Well, I think that always plays into the parts manager's

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Speaker 3: hands because they have to keep pricing consistent, right, So

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Speaker 3: if they're going to get here with tariffs as soon

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Speaker 3: as it starts, I'm quite sure the majority of the

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Speaker 3: folks in the industry are going to go ahead and

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Speaker 3: set the parts for the future, not just for now,

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Speaker 3: but also for the future. That way, it stays pretty

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Speaker 3: consistent across the boards. But parts business is doing pretty

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Speaker 3: well considering the things that are going on.

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Speaker 1: And I've got to say it affects you know, it's

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Speaker 1: affecting everybody, you know, the independent shops, myself, a lot

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Speaker 1: of the guys around me as we talk. You know

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Speaker 1: that oil filter that you bought on Monday, By Tuesday,

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Speaker 1: they have gone up three percent by Wednesday, five percent,

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Speaker 1: and by Thursday, you're going, holy cow, it costs me

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Speaker 1: double what it cost me on Monday. And it's happened

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Speaker 1: a few times, and it's a it's a tough option

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Speaker 1: to deal with. You're always looking at pricing, I will

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Speaker 1: say that, so you know that that becomes a big issue.

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Speaker 1: Let's talk about if we can. Let's talk about I'm

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Speaker 1: out here, I want to buy a new car or

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Speaker 1: a used car, and I'm going to come in and

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Speaker 1: I want to get I don't know if my credit's

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Speaker 1: any good. What has the credit process changed? You know,

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Speaker 1: the industry is so upside down right now. Has the

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Speaker 1: credit gotten more stringent? We're the interest rates right now,

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Speaker 1: Let's start the conversation there. If I'm coming in to

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Speaker 1: buy a new car, finance it through Ford, what's the

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Speaker 1: interest rate?

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Speaker 3: Interest rates right now are depending on certain models. Certain

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Speaker 3: models forward to have an interest rate for short term

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Speaker 3: financing as well as one point nine, which is something

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Speaker 3: we have not seen for long, and it's been a while.

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Speaker 3: The banking industry is starting to bounce backwards, starting to

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Speaker 3: see rates in the five percent and every blue moon,

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Speaker 3: you have a certain you know, credit union or something

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Speaker 3: for for municipal employees that maybe in the fource that's ridiculous.

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Speaker 3: But it's great to see that the financial industry is

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Speaker 3: starting to bounce back with interest rates a lot stronger

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Speaker 3: than what it has been over the last several years,

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Speaker 3: even though for the most part it's not been very

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Speaker 3: much movement and the interest rate reductions what with the

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Speaker 3: you know government, right, So.

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Speaker 1: Do you see you know, what's the approval rate right now?

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Speaker 3: You know? Are you know?

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Speaker 1: Is it is it? Are we seeing seventy percent get approved,

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Speaker 1: eighty percent can approve, fifty percent get approved?

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Speaker 3: You know?

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Speaker 1: Is the And that's always a sign of the economy, right,

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Speaker 1: How good is everybody's credit? If you were to guess

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Speaker 1: and put a number on it, what's the percentage.

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Speaker 3: Majority of the folks that come into buy a car

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Speaker 3: are going to get approved as long as you have

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Speaker 3: a decent down payment credit history. I've seen credit scores

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Speaker 3: as low as a five point fifty five forty h

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Speaker 3: be you know, approved with a car because they have

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Speaker 3: a right cash down and they have a decent job history.

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Speaker 3: People go through struggles. Banks understand that, and we have

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Speaker 3: select banks that specialize with you know, bad credit or

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Speaker 3: or I say challenged credit, and they just continue to

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Speaker 3: build the person's profile based off of their down payment,

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Speaker 3: their job history, how long they've been able to hold,

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Speaker 3: you know, a credit card for so long in decent

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Speaker 3: you know, payment history, even though they have late payments

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Speaker 3: over the last year, have they been consistent and the little.

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Speaker 1: They look at that. So, if I'm thinking of buying

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Speaker 1: a car in six months, am I better off buying

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Speaker 1: that car now?

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Speaker 3: I would say most definitely. Now, if you're buying a

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Speaker 3: new car, it's the best time to buy it right now.

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Speaker 3: Why Well, majority of the cars that in inventory right now,

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Speaker 3: that are in the inventory right now, they have not

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Speaker 3: had the terrors applied to them. So if you're looking

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Speaker 3: for that Machi, the Maverick, the Broncos Sport, those are

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Speaker 3: the three cars for Ford that are going to be

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Speaker 3: going up for sure. However, all across the boards, majority

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Speaker 3: of the inventory that are in the dealer's inventories right

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Speaker 3: now are not you slap with tariffs. So therefore, now

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Speaker 3: is a good time to purchase a vehicle. And I

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Speaker 3: would most definitely say instead of sitting on it, if

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Speaker 3: you have the ability to do it, go ahead and

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Speaker 3: buy now.

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Speaker 1: If I'm leasing the car. I'll tell you what. Let's

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Speaker 1: blow over, take a pause. When we come back, I

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Speaker 1: want to talk about if I'm leasing a car and

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Speaker 1: I've got six months to go before my lease expires,

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Speaker 1: I want to talk about, is is it worthwhile for

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Speaker 1: me to have that conversation with my dealer because will

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Speaker 1: they get me out of the lease early? Don't don't

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Speaker 1: give us the answer yet. Let's come back to it.

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Speaker 1: I'm Ron an Aye and the car Doctor. I'm here

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Speaker 1: with Cherokee. Hardy's the business manager over at Mawa Ford

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Speaker 1: in New Jersey, and we're talking about tariffs, cars and

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Speaker 1: everything in between. We'll both return right after this. Don't

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Speaker 1: go away.

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Speaker 2: When you get keep Ron's number Handy eight five five

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Speaker 2: five six zero nine nine zero zero for when you

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Speaker 2: really need advice on your car.

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Speaker 1: Here's Rober. So you're thinking of getting out of your

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Speaker 1: lease early? Hi, Ron and nadying of the car doctor. Yep,

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Speaker 1: I'm still here and I'm here with Cherokee Heart of

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Speaker 1: mawaw Ford. We're talking about cars and tariffs and all

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Speaker 1: comments and points in between. When we left and pulled

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Speaker 1: over and took the pause, we were talking about leasing

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Speaker 1: and when you lease a vehicle, your your lease comes

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Speaker 1: to an end, you lease for two and a half

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Speaker 1: years or three years or whatever the leaf cycle is.

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Speaker 1: And if your lease ends early, is there a way

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Speaker 1: to get at or if you want it to end early? Cherokee.

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Speaker 1: If I'm leasing a car and it's a three year

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Speaker 1: cycle or two and a half year cycle, is there

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Speaker 1: a bigger advantage now than previously or is it the same?

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Speaker 1: Are there still obstacles in place? If I want to

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Speaker 1: get out of that lease early? Can I does it

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Speaker 1: pay for me to go talk to my dealer.

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Speaker 3: If you're several months within the time of your lease

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Speaker 3: being up, I must definitely say that it's a good

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Speaker 3: time to go in and inquire. Ford has summer aggressive

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Speaker 3: rebents out there to retain customers, especially for like the

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Speaker 3: Ford Escape. If you're already leasing a Ford Escape, or

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Speaker 3: even for the F one City, they have aggressive rebase

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Speaker 3: retaining customers bringing them back in that starts anywhere from

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Speaker 3: three to six months out ahead of the lease being due.

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Speaker 3: Almost definitely, I do say that see the dealer and

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Speaker 3: leasing right now is for Ford it has probably been

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Speaker 3: most aggressive as it's been in the last two or

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Speaker 3: three years.

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Speaker 1: Give me, give me it. Give us a number I

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Speaker 1: want to come in and buy. I want to commit

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Speaker 1: and buy a new Mustang, a basic Mustang, nothing too crazy,

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Speaker 1: a V six automatic transportation. You know, is there is

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Speaker 1: there a least number you can give us? What's the rate?

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Speaker 3: Well, I would tell you this on a Mustang, they're

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Speaker 3: not the best vehicles to please. Okay, I would most

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Speaker 3: definitely say finance that instead. However, if you were to

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Speaker 3: take a look at.

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Speaker 1: Now, that's its way back up a second. Why do

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Speaker 1: you say that?

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Speaker 3: Well, believe it or not, the Mustang's residuals are a

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Speaker 3: little bit lower than the regular vehicles because that's a

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Speaker 3: sporty ride, right right, it's a performance car. So the

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Speaker 3: leasing on those you typically don't have as strong as

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Speaker 3: an incentive to lease a Mustang. Whenever people do lease

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Speaker 3: those cars, and this is a rule of thumb, they

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Speaker 3: use and abuse those cars for three years and then

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Speaker 3: hand forward to back of keys and say whatever I've

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Speaker 3: left you with, I've left you with, and the vehicle

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Speaker 3: may not have been taken good care of. So the

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Speaker 3: leases on a Mustang are typically very few and far between.

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Speaker 1: Interesting. So you're saying, if I was going to commit

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Speaker 1: and I'm looking for transportation. You know, I'm a family

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Speaker 1: of three or four and I need a small family

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Speaker 1: vehicle and I need to lease. What am I going

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Speaker 1: to lease?

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Speaker 3: I'm going to bring you right over to a Foard Escape.

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Speaker 1: Okay.

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Speaker 3: It's great for a family, you have a family of

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Speaker 3: three or four. You can fit a car seat in

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Speaker 3: it pretty well, is very gas efficient, and the payments

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Speaker 3: on them are pretty good as well, average payments these days.

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Speaker 3: Whenever you put down your taxes first payment and a

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Speaker 3: few thousand dollars down, you can get a decent payment

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Speaker 3: between four to five hundred dollars with the Fordeskid.

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Speaker 1: So will the tariffs as they pile on? Will the

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Speaker 1: tariffs effect lease rates as well as the overall purchase

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Speaker 1: price of the car?

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Speaker 3: Yeah? So, whenever you're leasing the vehicle, depending on the

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Speaker 3: money factor. For the most part, whenever you lease a vehicle,

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Speaker 3: every thousand is different than purchase of a vehicle, which

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Speaker 3: on average would say seventeen to twenty dollars. Well, on

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Speaker 3: a lease every thousand is closer to twenty seven to

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Speaker 3: thirty two dollars per thousand. That spread per thousand is

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Speaker 3: going to bump up your payments roughly thirty dollars a month.

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Speaker 1: Has how has leasing change off the top of your

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Speaker 1: head in the last three years. Is it more expensive

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Speaker 1: now than it was three years ago?

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Speaker 3: Oh well, it's changed by almost two to three hundred

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Speaker 3: dollars on a car now is three years ago?

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Speaker 1: Is that economy related, tariff related, general cost of doing

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Speaker 1: business related? If you're gonna put your finger on it,

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Speaker 1: what would you say?

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Speaker 3: It was all of the above. When COVID hit, it

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Speaker 3: put the automotive market in a buying and from that

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Speaker 3: point forward it put the economy in a buying, which

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Speaker 3: put production in the cost of vehicles at an all

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Speaker 3: time high. And if you go back and look at

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Speaker 3: the history from twenty nineteen orhould I say, from twenty

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Speaker 3: twenty to twenty twenty four, there's roughly about a thirty

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Speaker 3: three percent increase in automobiles from that time. And that's

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Speaker 3: something that we haven't seen. It's been pretty steady across

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Speaker 3: the years, but then all of a sudden twenty twenty

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Speaker 3: twenty one, twenty two, twenty twenty three, twenty twenty four.

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Speaker 3: Through that time is a thirty three percent increase in

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Speaker 3: cost of the vehicles.

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Speaker 1: So how critical is the automobile industry to the American economy.

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Speaker 1: If you were going to put a percentage on it,

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Speaker 1: where where where do we say? Are we second or

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Speaker 1: third biggest expense?

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Speaker 3: Is that?

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Speaker 1: Is that a safe Is that a safe statement?

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Speaker 3: I would say that's about the second biggest expense. Think

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Speaker 3: about this. There's profinitely about seventy six billion cars that

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Speaker 3: were transported between Canada and Mexico. All right, seventy six

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Speaker 3: billion dollars worth of cars that's just between Canada and Mexico,

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Speaker 3: not including here in the US. And then about one

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Speaker 3: hundred and two billion dollars in auto parts that was,

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Speaker 3: you know, ship between those two countries to the US.

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Speaker 3: So I would pretty much say that the automotive industry

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Speaker 3: overall is probably one of the most important sectors sectors

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Speaker 3: to the American economy. Wow, you know, And most definitely

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Speaker 3: it is the second most largest expense that most people

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Speaker 3: are going to have in our lives, second to their home.

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Speaker 1: Well, hey, listen real quick. In the last minute and

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Speaker 1: a half, roughly, I've got twenty grand in my pocket.

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Speaker 1: I want to come in and buy a used car.

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Speaker 1: Is that a good number to start with?

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Speaker 3: Twenty grand is pretty good number. To start with, you're

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Speaker 3: probably looking at somewhere between a four to five year

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Speaker 3: old vehicle, and you can find them pretty good miles

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Speaker 3: under fifty thousand miles. And you can also venture out

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Speaker 3: to add a mechanical plan to protect the vehicle as well,

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Speaker 3: so that you're not having to come out of pocket

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Speaker 3: unexpected expenses.

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Speaker 1: So I've got I've got a ten twelve year old car.

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Speaker 1: It needs six thousand dollars in repair, eight thousand dollars

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Speaker 1: in repair. But and I've got the eight thousand dollars.

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Speaker 1: Am I better off buying that buying a used car

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Speaker 1: for twenty put the eight thousand down in finance? Twelve?

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Speaker 1: Rough numbers?

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Speaker 3: Absolutely, because nine times out of ten, if a car

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Speaker 3: is that old, it may not be worth the money

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Speaker 3: that you're going to be putting in it.

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Speaker 1: Right, and then there's always that that part's issue. So

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Speaker 1: and that that kind of leads us back to where

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Speaker 1: we started this conversation. So, Cherokee, if the listeners want

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Speaker 1: more information, give us the website.

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Speaker 3: Mawatford dot com. Cool I have a say email, we'll be.

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Speaker 1: Having toil and if they want to come in and

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Speaker 1: see you in person, I know they'll see you. You're

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Speaker 1: the guy with the beard. Yeah, all right, hey listen,

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Speaker 1: say hi to everybody for me, and thanks for being

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Speaker 1: part of the show today. I'm ronning any and the

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Speaker 1: Car Doctor. We're back right after this