Blog

Short blog posts, journal entries, and random thoughts. Topics include a mix of personal and the world at large. 

New flex in town

For the rich one percent, the vehicle to buy right now is no longer the most expensive Tesla Model S or X. No, it’s a high-priced product from another electric-vehicle maker: Rivian. Those things are absolutely everywhere. I literally see at least one Rivian R1T or R1S (all-electric truck and SUV, respectively) every day driving through the neighborhood. Rivian is the new symbol of cool car flex. Teslas are too common, so is the Mercedes-Benz G-Wagon (the unofficial rich-person vehicle of Southern California).

Granted, I live in arguably the center of EV adoption in America: San Francisco Bay Area. So it’s not really surprising to see this many Rivian trucks rolling around. It’s so easy to buy one, too (provided you have the money). Like Tesla, Rivian sells directly to the customer. A few clicks on the website and it’s done. No haggling, no need to visit a dingy dealership with douchebag sales and finance persons. Sure, you’ll have to wait a few months for the thing to arrive, but at least you can get on a list. And you can be sure there won’t be additional shenanigans upon delivery.

Meanwhile, I can’t even get on a list for a Honda Civic Type R without agreeing to pay a hefty sum over MSRP. And the finance manager is going to insist I get financing with Honda, because they get a kickback. Paying cash? The price just went up.

As the automotive industry transition to electric, traditional automakers really need to figure out a way to efficiently sell online. Millennials and younger don’t want to visit a dealership and talk to a guy. We want a set price and simple buying. Do the entire transaction over smartphone, and just let us know when the car is ready for pick up. The additional friction of having to work with a dealership is going to drive people to the likes of Tesla and Rivian.

Only the most compelling of products can make people willingly go the dealership route. Like the aforementioned Civic Type R…

There’s one right there!

Why are you still talking to me?

Readers of the this blog may know I’m on a hunt to buy the new Honda Civic Type R. Production on this hottest Civic model is extremely scarce: as of this writing, only 826 cars have made it to the United States market since the end of October last year. You know what that means! Hefty dealership markups if you want to take one of these home.

While I don’t particularly enjoy paying over MSRP for anything, I understand the basics of supply and demand. When even ordinary cars have markups in this market, low-volume enthusiast cars will be doubly so. There’s zero incentive for a dealership to sell at MSRP, unless they either really like you, or you’ve already given them enough business previously to justify them doing you a solid. A middle-of-nowhere small town dealership will probably have less markup, but in populous California, I’m fighting with lots of willing buyers.

I have one advantage, however: time. There’s no urgency at all for me to buy right now. If it’s not this year, next year is just fine. The plan was always to wait out the initial rush of buyers and let them pay the meatier markups. I can swoop in later when the tacked-on money isn’t so insane ($60,000 for any Civic is kind of ridiculous).

However, I have been sending out some feelers to dealers that have a Civic Type R in the color I want: Championship White. It’s funny some of the replies I’ve been getting. I made a competitive offer on one car, and the dealer said their salespeople are currently working with buyers that offered $2,000 higher me - would I be able to match? I’m thinking, “Then take those offers! Why are you still talking to me?!”

It’s a negotiating tactic, of course. If the dealer truly had higher offers than mine, they wouldn’t be still texting me. Car buying is so much calmer and fun when I don’t really need to buy the car.

Sprouts.

Additional dealer markup

During Thanksgiving I met up with my cousin who I’ve not seen for a quite some time. Turns out he recently traded in his long-serving 2006 Toyota Corolla for a brand-new Toyota Sienna. The move makes perfect sense: he’s got a young kid now, and loading-unloading the car seat is just that much more convenient in a van than a tiny sedan. Besides, the improvement in vehicle safety has been magnitudes over the decade plus. I too would want the best and safest for my baby nephew.

Being that we are still amidst the great supply chain shortage in terms of new cars, I naturally asked my cousin if he paid over MSRP for the Sienna. Turns out he paid about $3,000 in ADM, plus the color blue he bought was not really his first option. I guess you absolutely cannot be picky in this market, especially the sought-after Toyota hybrid products (gas is still super expensive, after all). You agree with the dealer on the price, and then you wait until it’s your turn to get the latest shipment off the boat. For a particular color the wait can be months.

With high inflation, high interest rates, and a seemingly looming recession (tech companies have announced significant layoffs in droves), the current feeling is that the new vehicle shortage vis a vis demand will come back down to earth sometime next year. I hope the prognosticators are correct because the timing would be perfect for me. As I’ve written before, I am looking to buy the latest Honda Civic Type R. The car has just been released to the public earlier this month, so I’m waiting out the initial rush of folks who are willing to fork over the $10,000 or so dealer markups.

I’m looking to make the move sometime in the spring of next year. The hope is that serendipitously the market conditions would become favorable enough that I can buy a Type R with minimum to zero markups. In the meantime I’ll be scouring the forums for all the information pertaining to the FL5.

Big wave, don’t avoid it.

An idiot and his money

So my brother bought another car. He’s already got a Mazda Miata roadster, and now has a Toyota Mirai to go along with it. Not sure where exactly where he’s getting the money from. The reason for the second car is to save mileage on the Miata. I find that absurd because cars are meant to be driven! Brother claims the long commute with a manual transmission is wrecking havoc on his left knee. I contend he instead needs to exercise and lose some weight.

The uniquely hydrogen-powered Toyota Mirai does come with a $15,000 fuel card, which is definitely substantial in this era of super high gas prices. However, you can’t discount the fact my brother has already spent $25,000 to buy the car in the first place! I call this spending money to save money. The price of the Mirai can buy an enormous amount of gas for the Miata.

The move just doesn’t make sense to me, and I’m all for spending frivolously on cars! This is both of our primary hobby, after all. My brother’s Miata recently got some spendy upgrades to its suspension and exhaust. New wheels are coming soon as well. And he wants to drive this car less in favor of a second car? Then there’s the secondary ownership costs: licensing, insurance, and maintenance. He’s now paying that for two cars.

Perhaps I will be shown a hypocrite in the future when I do buy a Honda Civic Type R to supplement my BMW M2. I would say at least I’m buying something interesting that’s worth keeping long term. A hydrogen car in the world of rapid EV adoption? The Toyota Mirai is definitely not a long term play. Alas, what’s a guy in his mid 20s to do but spend non-disposable income, disposably?

There’s also parking to worry about for the second car.

Type R or bust!

Two days later, I am still buzzing over the newly-announced Honda Civic Type R.

The hottest version of the 11th-generation Honda Civic looks absolutely fantastic. It resolves everything that was wrong with the previous generation Type R. The gaudy body cladding and fake vents are gone. The new Type R is way more subtle, with just hints of aggression. The wheels are 19-inch items now, instead of overly large 20-inch units on the last car. Even the prerequisite “big wing” at the back is now colored in black, blending in nicely with the rear windscreen. It's as if legendary Honda tuner Spoon did the styling on the new car. If you know, you know.

Fitting, then, that the new Civic Type R will be made in Japan. The Swindon plant in the UK - production home of the previous Type R - is no more. As illogical as it may be, a Japanese-made Civic Type R is immediately more attractive than one made elsewhere. Just as I would be less inclined to buy a BMW that isn't manufactured in Germany. I'm sure the forthcoming BMW M2 is completely fine being hecho en Mexico. But I'm extra glad my own BMW M2 was built in the fatherland.

Back to the new Civic Type R: I desperately want one. With the era of internal-combustion engines seemingly at the end of life, the performance cars of today are likely to be the last of its breed. This is the time to buy what you can and keep it forever. As an enthusiast that grew up on Japanese cars, I've had thoughts about getting back into a proper J-VIN vehicle. The Toyota GR86 has been so resoundingly well-received that the soft goal is to buy one to keep - soon as I finish paying off the M2. It seems the Civic Type R has entered the chat. And it's talking a very loud game.

It'll be a tough decision. Logic would follow the front-wheel-drive Type R, since the M2 is rear-wheel drive. However, the GR86 might be the last pure, affordable real-wheel-drive sports car, and there's something to be said about that. Bottom line is: I am not selling the BMW - the Japanese car will be an addition. I consider my F87-generation M2 Competition to also be the last of its kind. The upcoming M2 is heavier, uglier, and uninteresting.

Photo credit: Honda