Dealing with depreciation

The depressing thing about buying a new car is depreciation. We all know that the moment a new car is driven out of a dealer’s yard it begins to drop in value.

Unless you somehow pick a future classic, the chances are that your car will keep depreciating until it is worth next to nothing. Although cars depreciate at different rates, the general rule-of-thumb is that in the first 3 years your car will depreciate around 13-15%.  After that time the depreciation slows to around 6-9%.

But there are a few simple ways to reduce your depreciation costs right from the word go.

The most obvious is to buy a second hand car, since it will lose value at a slower rate than a new car. Look for a second hand car with its warranty still valid and you'll be off to a good start.

Buying older or run-out models, demo models or leftover stock at end of year sales can get you a nice discount - even though it won't stop the depreciation, it will bring the starting value down so that the depreciation cost is not as high.

It's definitely worth remembering that some cars hold their value better than others. Look for a quality model from a respected brand - cars with good reputations have generally earned them. Cars that are known for being reliable and well-manufactured tend to depreciate at a lower rate.

Don't discount the effects of depreciation - it's your hard earned money, so spend it wisely!

Do Australian Governments prefer imported vehicles?

Last week it was reported that Australian federal, state and local governments are choosing imported automobiles for their fleets rather than Australian-made Holden, Ford or Toyota cars.

According to reports, only around 16% of local council vehicles were manufactured domestically. It was also mentioned that only one in five cars in the Tasmanian government's fleet is Australian-made.

In the Herald Sun today, Paul Bastian of the Australian Manufacturing Workers Union wrote that it was wrong to blame the high Australian dollar for the recent troubles in the Australian car manufacturing industry.

He said the industry could be helped enormously if the government simply bought Australian made cars.

“If governments show leadership and buy Australian-made vehicles for their fleets, they can encourage private fleets to purchase Australian,” Bastian said.

“If all levels of government and private fleets purchased Australian-made cars, sales would increase by around 450,000 per year.”

Maybe the answer to saving the Australian car manufacturing industry is to simply encourage governments to buy their fleets from local Holden, Ford or Toyota.

Let's hope that the report is a bit of a wake up call to both local and federal governments and that they begin to show some pride in our great Aussie cars!

Great Wall and Chery cars recalled due to asbestos!

Ateco Automotive have recalled almost 25,000 Australian-delivered Great Wall and Chery vehicles, after the discovery of the deadly substance asbestos in the engine and exhaust systems.
Ateco today claimed that handling or removing the asbestos affected components "constitutes a very low health risk". They admit that asbestos was used in the production of models from both brands.

Owners will rightly be wondering how such a situation could have arisen, and how the use of components that contain even the smallest traces of asbestos has slipped through to the Australian market.

The asbestos was discovered during routine spare parts tests by Customs and Border Protection officers a few months ago.

The ACCC is monitoring the recall, which will remove the asbestos components from affected models.

The affected Great Wall models include 21,500 utes and SUVs. The affected Chery models include 1700 J11 SUVs and 550 J3 light cars.

Great Wall X240

Recently delivered cars and the existing Chery J1 are free of asbestos and not included in the recall, according to the ACCC.

"We'll be writing to all owners very soon to explain the situation for their specific vehicle," said Ateco Automotive's Daniel Cotterill. "Included in that information will be a risk assessment done by an independent occupational health and safety consultant that outlines the risk to drivers and passengers from the asbestos in these gaskets as being negligible."

The report also notes that the danger to mechanics removing and replacing the components is minimal “even if [the work is] carried out in an uncontrolled way".

This is a terrible situation for the owners of these cars and the mechanics who have worked on them and it raises a lot of questions - particularly about the conditions of the factories where the cars were built and the health of the factory workers who handled these components.

Owners of affected Great Wall and Chery vehicles will be asked to return the vehicle to their dealership via a letter that they should receive this week.

Free driving lessons for L-Platers

Tasmanian learner drivers are being encouraged to take part in the federally funded keys2drive program, a national driver safety campaign aimed at reducing the number of car accidents involving young drivers.

Road safety is such an important issue here in Tassie. If you're a parent of a learner driver you should really get involved with the program and get your kids off to the right start.

The program offers learner drivers a free lesson with a specially accredited instructor.

Soon there will be over 60 driving instructors in Tasmania who  have completed an accreditation course for the program. The program was trialled in Tasmania before being rolled out nationally in late 2008.

"Research has shown that learner drivers are some of the safest drivers on the road while they've got their L plates up," RACT accredited driver trainer Trevor Lewis said. "But the moment they've got their Ps, their risk of serious injury and death jumps dramatically. We're trying to teach them to think about being P-plate drivers while they're on their L plates."

At around $55 an hour, driving lessons are not cheap and so the free lessons have proven very popular. More than 107,000 learner drivers around Australia taking part in the program so far.

Keys2drive is the largest national learner-driver safety program ever undertaken in Australia and it's great to see that young drivers are taking part and improving their driving skills right at the outset.

For more details visit the website www.keys2drive.com.au

Is your diesel engine losing power?

Is your diesel engine losing power and getting more difficult to start? Have you noticed that it isn't idling as consistently as it should? Are you using more diesel than you once did to cover the same distance? Are you getting an EGR system failure warning?


The problem might be carbon build up in the engine air intake system.

Carbon build up is one of the most common complaints in modern diesel vehicles. It can be blamed on the inconsistent quality of diesel fuel in Australia, but it's compounded by the way most of us drive these days: short journeys with constant stopping and starting.

It's a fact that regular short journey driving causes inefficient engine combustion, and this produces excess unburnt carbon particles that are returned to the air intake manifold via the Exhaust Gas Recirculation (EGR) valve. The particles build-up in the intake manifold and on the EGR valve, severely restricting the air flow and causing incorrect air fuel ratios.


But there's no need to watch your dollars disappear at the the diesel pump - there is a solution!


Wynn's have developed an aerosol application, Exhaust Gas Recirculation 4, to remove unburnt carbon from metal surfaces and provide an instant & noticeable performance improvement in diesel engines. EGR4 cleans the intake air manifold, inlet valves and EGR valve, and is recommended to be used at each service interval. It cleans the "dry part" of the diesel fuel system without dismantling, but it can also be used to thoroughly clean dismantled parts such as the EGR valve and turbo-charger. It's compatible with plastic/rubber seals and electronic components and is sensor & diesel particulate filter safe.

Next time you're getting your diesel vehicle serviced, ask us how we can improve your engine performance and save you money at the diesel pump!

Is a Quick Lube Service Worth It?

Ok – I’ll be the first to admit it - I’m spoiled. I’ve been in this business since I was a kid with my dad so I've never had to worry when it comes to getting my car serviced or repaired. But the other day I talked to a lady who took her husband's car to a quick lube place for an oil change.

I must admit it, she did say that the job was done very quickly; she asked for the basic service and it was immediately brought to her attention that for an extra few dollars they would check her fluids and top them up if needed. Oh, and by the way her husband's car needed the high mileage oil at an extra charge. She declined both but was told her air filter was dirty and her coolant needed to be replaced. It was a constant stream of employees coming up to her and telling her she needed this or that.

She declined any additional services at that time. One thing she noticed was that the tyre pressure was not checked (a big thing in my book since I know that proper tyre pressure helps my fuel economy and tyre wear). Of course nothing else was really checked on the car, no brake check, no belt and hose check, no suspension check, etc. You get what you pay for and it was obvious that the staff was not at the top end of the trade as far as skill level. They handed her a service sticker for the window that indicated her next oil service was in 1,000 kilometres. She asked them about that, they got confused but eventually gave her a new sticker with the correct distance. Good thing she looked.

They finished the service within about 15 to 20 minutes and off she went. When she read over her paperwork it indicated services done that she knew were not performed and claimed condition of fluids and other items that we were verbally told something different. So what would she tell her husband once she got home?

One of the first things she noticed was that her husband's car did not go up the big hill near their house as quietly. It is an older Subaru that has a tendency for lifter noise if the oil level and consistency is not right – that noise was very evident. The next morning for the first time ever there were oil spots in the driveway. Further inspection revealed that the drain plug and oil filter were leaking. The lifter noise got worse and the leaks larger. I had to change the oil and filter again after a week to stop the leaks and the engine noise.

I can see the advantages to a quick service on her car, but she is glad she didn’t rely on this type of service. Good quality service obviously counts!

What Does Your Car Taste Like?

The five human senses are; sight, smell, taste, touch and hearing. How can you use these to keep your car running longer and your repair costs down? We'll go over the five different senses and see what your car might be trying to tell you. This is not intended to diagnose any problems, but instead help you be "aware" of what's going on when you operate your vehicle and how you might be able to prevent more costly repairs.

Smell and Taste

Most people might instantly think of gas. Yes, any fuel smell should be promptly checked out by a professional. I think this goes without saying..... But what are some other smells that you might encounter that can also be a safety concern? Coolant is one. Sometimes when a heater core starts to leak, the coolant will be evaporated and blown through the vents before it starts dripping inside and becomes an obvious problem. When this happens, you can "smell" the coolant and even "taste" a sweet taste in your mouth for no apparent reason. This is not safe and you need to have your car checked out promptly as coolant is poisonous.

As your engine warms up, any leaks on or around your engine these can also be noticed with your sense of smell. More noticeably if it happens to be leaking directly onto hot exhaust components. This can be a fire hazard.

On the other hand - Carbon Monoxide has NO smell, so any exhaust leaks need to be sealed up as soon as possible!