By John Chauvin Ok, maybe not “overload” but hey, we need something to brag about! Here at Don Hewlett Chevrolet Buick, we are having similar new vehicle microchip shortage issues with inventory as everyone. The difference is, we have vehicles to sell, lots of them! While the industry works its way through this microchip shortage, we still have brand new Chevrolet and Buick automobiles coming in almost daily. Yes, it’s not as many as we’d like nor are they coming in as fast as we’d like but hey, they’re still coming. What we can brag about is that we’ve stepped up our pre-owned inventory drastically. Here’s the “overload” part: Our team is working daily to acquire as many preowned vehicles as possible to provide you with a HUGE selection of vehicles. Many are 2021 models with very few miles. Sometimes we’ve acquired as many as 20 per day to keep the selection large. Of course, many of the General Motors products are GM Certified. A GM Certified vehicle comes with many perks including, extensive reconditioning, attractive financing packages, Roadside Assistance, and a longer warranty. And on certain year models, the GM Certified vehicle warranty is longer than the factory warranty. While GM products are a large portion of what we’re acquiring, we also acquired many “other brand” vehicles. Cars, Trucks and SUV’s - we have them all in stock and our very own “Hewlett Certified” vehicles give you piece of mind when purchasing a preowned vehicle from Don Hewlett Chevrolet Buick. Financing has never been easier with our one stop shop program. Regardless of credit, our finance team will work diligently to get you the best finance package for whatever vehicle you choose. We understand your time is valuable and we take great pride in getting you everything you need to finalize a great deal for you. All at the same time, getting you in and out as fast as possible. Although inventory changes daily (sometimes hourly), you can still check out our GREAT selection of preowned vehicles at Don Hewlett Chevrolet Buick. Visit us online or stop by and see us. Hope to see you soon, John Chauvin | General Manager Don Hewlett Chevrolet Buick Inc.
LEASING MADE SIMPLE
By John ChauvinWhen most people are in the market to buy a new car, the words “car buying is fun” rarely rolls off their lips, (at least at the beginning). Several will say “that was easy and fun” when the process is over but what I’ve found, is that those words are typically spoken when you (the customer), have a well-informed, helpful salesperson that is able to simply and clearly explain all of your options allowing you to make an informed decision. The most uncommon and misunderstood way (in Texas anyway) to pay for a car is leasing. Leasing sometimes has a negative stigma attached to it for various reasons, some are valid and many are not. The most common, even for those who have never leased, is that they “heard” from someone who had a bad experience that this was a “bad idea”. Unfortunately, we almost never hear both sides of the story. For the sake of simplicity, I’m going to use round numbers and very close estimates. Let’s say the vehicle you want to purchase is $30,000. If you finance $30,000 +TT&L (tax, title & license) at a normal interest rate and a normal term (60 months), your payment is somewhere around the $550-$600 per month range. If you were presented a lease payment of $400 per month on that same $30,000 car, your first question to yourself or your salesperson might be “what’s the catch”? Leasing is based off of what’s called a RESIDUAL VALUE. That is, the guaranteed amount your finance company will pay at the end of your lease term and it’s always based off a percent of MSRP. So, if your car is $30,000 and the residual is 50% for 48 months – you are now essentially paying for half the car in four years rather than all the car in five years (as I mentioned in the first regular finance example). RESIDUAL VALUES differ from vehicle to vehicle. Lenders who finance leases know some cars have higher resale values than others and they base their RESIDUAL VALUE on that future (albeit guessed) value. Sometimes they win, other times they don’t, but it’s their gamble, not yours. Obviously they also differ when it comes to length of term. A 24 month lease residual will be higher than a 36 or 48 month term. Of course, most figure their published residual based on the driver driving 15,000 miles per year. If you want fewer miles (say, 10,000) they’ll allow you to add 2% to that published residual. In my previous lease example, you would now make payments on 48% of the vehicle rather than the 50% making your payments even less. If you wanted more miles, (20,000 per year or even more) you deduct percentages depending on the amount of miles you wanted to contract for making your payments a little higher. All this means is that a car with 40,000 miles four years later is worth more than a car with 80,000 miles so they adjust their guaranteed value or RESIDUAL VALUE based on the miles you selected. Interest rates are converted to what’s called a “money factor”. Most managers at any dealership can convert the money factor to an interest rate for you, but all lenders will classify a customer’s money factor based on a tier system that is “risk based” just like they do a regular interest rate qualification. Translation: A customer with great credit, long time job history, stable residence, good income, etc. will have a better “money factor” than someone with a few hiccups on their credit and is not as established. Common leasing objections: • “I don’t own it” , while that may be true, if you are trading a three- or four-year-old car that has a payoff, you don’t own that one either. • “I drive too many miles”, then you need to lease the most! I know that goes against anything you’ve ever been told but it’s true. If you do a conventional loan and drive 20,000 miles per year and want to trade in three years, you now have a 60,000-mile trade-in that’s only three years old. Chances are you’ll be $7,000 or more upside down. If you factored in 20k miles per year on your lease, your payment may be $100 per month higher but my guess is $100 per month will not change your lifestyle as much as writing a check for $7,000 when you sell. • “What if I wreck it”, nothing different than if you bought it any other way. Call your insurance company and get it fixed. Leasing companies do not deduct for proper repairs. Earlier I said that “the most uncommon way (in Texas anyway) to pay for a car is leasing”, what I meant by that was, the states with the highest leasing penetrations are usually on the East or West coasts. With more and more people moving to Texas from those states, our leasing numbers are increasing. In summary, there is no exact way to pay for a car that works for everyone. My suggestion is to ask your salesperson to explain all the possibilities to you. Once you are armed with this information, you’ll be better equipped to make an informed decision. Leasing may not be for you, but please don’t pass up on a different way to pay for a car simply because you “heard” it wasn’t a good idea. Ask questions, get all the information, and make the best decision for you and your family and have fun doing it. Happy Motoring John Chauvin
Daytrippin to Seguin
by Chet Garner, the DaytripperJust east of San Antonio sits one of Texas’s oldest towns named after one of Texas’s original heroes - Juan Seguin. He was one of the Tejano leaders in the Texas Revolution who fought in the Battle of San Jacinto. He’s now buried under a grove of majestic oak trees in a town that does an amazing job carrying on his legacy, even if it is a little “nutty.” 1. World’s Largest Pecans - It’s a feat to have one of the “world’s largest” anything, but Seguin proudly claims three of the World’s Largest Pecans. The story begins in 1962 when a group of locals wanted to honor the town’s pecan history and industry. So, they built a 5-foot-long concrete pecan that still sits in front of the Guadalupe County Courthouse. Forty years later, local pecan grower John Pape decided to build an even bigger pecan measuring 11 feet long, only to find out that a town in Missouri had already built an even larger one. Finally in 2010, Seguin reclaimed the record with a monstrous 16-ft. long pecan statue that now sits outside the Texas Agricultural Education & Heritage Center. So all trippers, myself included, can proudly selfie with the 1st, 3rd, and 4th largest pecans in the world. 2. Powerplant Texas Grill - Right through the middle of Seguin flows the beautiful Guadalupe River that used to electrify the town via a stunning brick powerplant. It was decommissioned decades ago and is now a Texified (and electrified) restaurant. Hungry folks will find steaks, burgers, and fried pickles aplenty. But there’s nothing quite like diving into a huge chicken-fried steak smothered in queso, while overlooking the dam below. 3. Son’s Island - Follow the river upstream and you’ll arrive at an unexpectedly exotic getaway on an actual island in the Guadalupe Riverbed. Trade in your boots for flip flops and your car for a cabana as you spend the afternoon on “island time” wasting away in a hammock or renting a kayak. I had to paddle around the entire island before I believed it was real. It may be nowhere near the ocean, but it's got all the sand, sun and water a Texas tripper needs. 4. Guero’s Backyard - There ain’t no party like a taco party at Guero’s. In the backyard of this historic (and pink) home, a local couple is whipping up some of the best fusion street tacos on earth. Wrapped inside a thick, homemade tortilla, you’ll find concoctions like the “Marissa” with seared ahi tuna, seaweed salad, and gorgonzola cheese. Or the “Soul Train” with shredded beef short ribs and collard greens. Tacos will never be the same. 5. Haunted Magnolia Hotel - A town as old as Seguin is bound to have a few spooky skeletons still in the closet. For those who want an eerie encounter with history and maybe even a ghost, take a tour of this historic hotel that was built in 1840 by one of the original Texas rangers. Famous lawman Jack Coffee Hays was even married in front of the fireplace. Armed with ghost gadgets and photos, the owners will take you on a hair-raising tour and share the stories of the thirteen spirits who checked into the hotel, but never really checked out. So, whether you follow my footsteps or forge your own path, I hope to see you on the road in a Chevrolet from my friends at Don Hewlett Chevrolet in Georgetown.