Monday, January 24, 2011

Differential JTEKT Cobalts Taxes Bday

Now this is a terribly confusing and rambling post... However it does contain a few interesting points. Have Fun !!!

Differential
As some of you know, I have a 2002 Maroon Suburban that I truly love. It is a great vehicle that has taken us on many really memorable adventures. Unfortunately it recently started making a slight rumbling noise when I put it into Auto 4WD or 4WD. After a bunch of research and draining some metal filings laden fluid, I have determined that a bearing(s) has failed in the front differential. (bummer) And they want ~$1500+ to put in a rebuilt unit. (double bummer) Finally, it is likely mostly my fault that the unit failed at ~95,000 miles, because I had been told there was a slow leak, and had not fixed it or kept it full. (triple bummer)

So I crawl under and say to myself... "I think I can pull it out and reinstall it. No problem..." And they only want $700 for a rebuilt unit !!! (much better) But "What will I drive for the week while it is being rebuilt???" Well, "maybe we should buy that third family car a couple of months early..." (good idea)

JTEKT and Cobalts
So I start looking into small, inexpensive, safe, reliable and efficient cars that would make a good third car, and not terribly offend the sensibilities of a teenage daughter. (well not too much at least) I look at many and narrow my list down to the Ford Focus and the Chevy Cobalt. (put money where mouth is... MIA the Myth) The research indicates that the Focus may be the better choice, however I thought the Cobalt provided better visibility. (ie smaller blind spots)

Thus I start digging deeper into the Cobalt's reliability and recalls, and I find one that concerns me. (GM Steering Recall) It seems that many new cars of most brands have ditched the traditional belt driven power steering pump in the search for better gas mileage.(ie belt driven use power when going straight) They now are using an electrically powered system and GM has got 1.2 million that are not working correctly. (ie electric only uses power when turning, and it is from the battery... evens loading... ) So I go on my next test drive and raise the topic with the Chevy salesman, he responds in a slightly frustrated manner that the irony is that it is a Toyota part that is failing....

I am curious and do a little digging. It turns out that he is partially correct. Toyota does own 1/4 of JTEKT, the company that makes these steering devices. I do not know if it was bad parts or a wrong application of a good part... But I make sure the Cobalt I buy has had the unit replaced...
JTEKT History
JTEKT Answers
JTEKT and Timken
Who's Afraid of Electric Power Steering?

Taxes
Now I find a good deal on a very clean used 2009 Cobalt with new tires at Main Motors in Anoka. The negotiated price is just about the "Clean Trade in" book value and I am very happy. (ie job well done) Then they roll up all the registration fees and taxes, and they total 10% of the purchase price !!!

Now I know this should not have been a surprise, and it was not. However I was reminded of the many additional taxes we continue to pay that make little sense. Also, I learned in that moment that Jessie Ventura's $99 registration fee cap was apparently rescinded sometime in the past few years. So the question remains... WHY DO WE PAY SALES TAXES WHEN BUYING USED VEHICLES? Talking about a regressive tax... (ie many poor folk buy used cars) The tax has been paid when the product was NEW !!! (ie many well to do people buy new cars)

Bday
Now to finish my drawn out tale... I put the Suburban up on jack stands and run it... Of course the noise is gone to my dismay... However I was reassured by a friend that it is only because the load has been removed. (ie tires off ground) So I prepare to pull it apart when an epiphany hits me... THE FRIDAY BDAY PARTY!!! (where we have to transport kids) How many??? Oh NO!!!

Since the Cobalt isn't much of a people hauler... I guess I'll be lowering the Suburban again and delaying the dismantling til next week.. Good thing I hadn't pulled the differential earlier.

If you made it to here. Thanks for reading this whole thing. Now for the questions:
  • Are you ready for electric power steering?
  • Thoughts on JTEKT buying part of Timken's business? (ie intellectual property/wealth transfer)
  • What are your thoughts on sales tax on used cars?
  • When did you last top off the fluid in your differential or transaxle?
  • Know any good and cheap differential rebuilders?(best price so far = $695)

3 comments:

R-Five said...

The used tax is partially a sop to the dealers, where you pay only on the difference over your (Minnesota registered) trade. Even then, you're still paying because dealers can set their net price a little higher vs private, fully taxed transactions.

I would prefer $25/year per car period, no sales tax. Roll it all into the gas tax assuming that money goes exclusively for roads, not general fund, not even public transit. But we got con'd into that dedicated sales tax amendment, so forget that.

John said...

The Auto Dealers definitely had some excellent lobbyists. Just think, a tax policy that almost ensures everyone trades in their car... If you doubt this.

Let's say you have a car that is worth $10,000, and you are ready to buy that new shiny $30,000 car.

If you buy the shiny new car w/o trading in, you will pay taxes on the whole $30,000. If you trade your car, you only have to pay tax on $20,000... Therefore you need to get an extra ~$700 while selling it yourself just to break even.

And if you do decide to sell it yourself, the gov't apparently gets to tax the $10,000 amount twice. You pay the ~$700 on your new car, and the buyer of your car pays the ~$700 on their purchase.

On top of this, the tax was already paid on the $10,000 value when the car was initially purchased...

By the way, on our $9,500 used car purchase... Plates/Registration: $187, Title/Transfer Fees:$30, Transit Tax: $20, Sales Tax: $617, Lien Recording Fee: $2 (and I paid cash...) So $856 dollars to the government for a used car... I am happy my household budget can easily swallow this, but this would be a killer for some family that is just getting by and needs a car to get to work.

By the way, I was able to get the rebuilt differential early, and I put it in last night. Proven Force I got a reminder of why mechanics deserve to be well paid and why they often curse engineers... Getting that unit to drop out was like trying to thread a needle with a 75 Lb thread while laying on your back. Tonight I add fluid and see if I replaced the right part... (fingers are crossed)

John said...

It worked !!!! Yippeee !!!!