The Warren Buffet Way To Buy And Sell Cars

The august founder of TTAC, Robert Farago, asked me to shop around for a Lexus IS F nearly seven years ago.

Those were bad old days. The “Fall of 2008” was a brutal, hopeless, and downright dire time in the American retail car market. Nobody was buying $50,000+ sports cars like this Lexus, and the few that could afford to were too busy watching their stock values sink like stones and their home values dive straight into the ass end of a 20 year time warp.

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Hammer Time: The $700 Repo

My brother-in-law’s 1997 Honda Civic took a vacation recently, and it only cost me about $700.

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Hammer Time: Trading Cards, Tradin' Cars

Rookies. All-stars. Hall of Famers.

Those were the only three types of baseball cards that I thought were worth the trade when I was a kid. I was eight years old, but that didn’t stop me from becoming diligently schooled by my three older brothers who knew the ropes of other similar hobbies such as comics, coins, and stamps.

The drill was simple. Every time someone wanted to trade cards with me, I would ask them one simple question.

“What’s your favorite team?” From there, I would bring out an album loaded with baseball cards. Every one in mint condition and encased in plastic sheets. “Pick your favorites!” They would gather their own, and I would go through their collection, find the fresher cards in mint condition, and gather mine.

Over 30 years later I do the exact same thing with cars. I sell based on interest and buy based on condition and long-term reliability. I’m still not loyal to any brand or model these days. For me, even after all these years, the opportunity to buy and sell any car comes down to three simple concepts I learned in my youth.

Condition, presentation, and price.

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Hammer Time: Morning Calls

Morning phone rings at the car lot…

Me: Hello?

Random Stranger: Hi there, like, I have this friend you know and he told me that you finance vehicles, and his name is Emmanuel and aahhh, like I was wondering, well, uh, do you have any Toyotas and like, do you, ummm… finance vehicles you know?

Me: I’m sorry. Who is this?

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  • Plaincraig 1975 Mercury Cougar with the 460 four barrel. My dad bought it new and removed all the pollution control stuff and did a lot of upgrades to the engine (450hp). I got to use it from 1986 to 1991 when I got my Eclipse GSX. The payments and insurance for a 3000GT were going to be too much. No tickets no accidents so far in my many years and miles.My sister learned on a 76 LTD with the 350 two barrel then a Ford Escort but she has tickets (speeding but she has contacts so they get dismissed or fine and no points) and accidents (none her fault)
  • Namesakeone If I were the parent of a teenage daughter, I would want her in an H1 Hummer. It would be big enough to protect her in a crash, too big for her to afford the fuel (and thus keep her home), big enough to intimidate her in a parallel-parking situation (and thus keep her home), and the transmission tunnel would prevent backseat sex.If I were the parent of a teenage son, I would want him to have, for his first wheeled transportation...a ride-on lawnmower. For obvious reasons.
  • ToolGuy If I were a teen under the tutelage of one of the B&B, I think it would make perfect sense to jump straight into one of those "forever cars"... see then I could drive it forever and not have to worry about ever replacing it. This plan seems flawless, doesn't it?
  • Rover Sig A short cab pickup truck, F150 or C/K-1500 or Ram, preferably a 6 cyl. These have no room for more than one or two passengers (USAA stats show biggest factor in teenage accidents is a vehicle full of kids) and no back seat (common sense tells you what back seats are used for). In a full-size pickup truck, the inevitable teenage accident is more survivable. Second choice would be an old full-size car, but these have all but disappeared from the used car lots. The "cute small car" is a death trap.
  • W Conrad Sure every technology has some environmental impact, but those stuck in fossil fuel land are just not seeing the future of EV's makes sense. Rather than making EV's even better, these automakers are sticking with what they know. It will mean their end.