The Honda Accord

Just in case any of you thought I was full of hot air regarding problems at Honda, here you GO.

Smartphone Apps

Marco Arment is right on with his last post titled Might upgrade to the paid version someday.  If you use a smartphone, I recommend that you read the post.  Here is my favorite part:

It’s a very common user mindset: they tolerate a lot of limitations, ads, and nags to avoid paying. It’s not that they’re cheap, per se: they just really don’t believe that apps are worth paying for, and they feel cheated or defeated if they end up needing to pay for one.²

I have definitely met a lot of people who fall into this category.  I don't think less of them.  It comes back to my philosophy that everyone has their favorite things in life and those tend to be the things that they spend their money on.  Buying a $200 smartphone and then paying somewhere between $70-$110 a month for service but being unwilling to pay for apps is like buying an expensive refrigerator, paying to run it all month long, but being unwilling to buy food to put in it.

I enjoy apps.  I think they add value to both my phone and my life.  Some people feel the same way about gardening, washing their car, buying new clothes, dying their hair, dining out, traveling, donating, etc.  To each their own.

The Death of Satellite Radio

I have to be honest here.  I have not closely followed satellite radio.  I have not studied the financials of Sirius nor do I know how many subscribers they currently have.  I do know that there used to be two head to head competitors in the US market: XM and Sirius.  In 2008, finding that competing wasn't a viable option, they merged.  On January 13th, 2011, XM was dissolved as a separate entity and merged fully into Sirius.  I don't like radio.  I like being in charge of my own music.  I also like listening to music and not annoying local advertisements.  This is also the reason I use Rdio rather than Pandora.  Let me quickly compare the three services.

Sirius Satellite Radio
Annual Cost: $199
Ability to choose your own music: Channel selection only
Ads: Very few
Mobile: Yes

Pandora
Annual Cost: Free or $39
Ability to choose your own music: Channel selection only
Ads: Yes
Mobile: Yes

Rdio
Annual Cost: $120
Ability to choose your own music: Yes
Ads: No
Mobile: Yes

Satellite Radio, as it is currently offered, will not survive.  This is my prediction and hopefully this won't end up being claim chowder.  In a world without smartphones, Satellite Radio makes a lot of sense.  It has a MUCH wider variety of channels than normal radio and it has a lot less ads (hence the annual cost.  Nothing is free.  Everything is either paid for with the user's money or paid for by advertisements.  Or, in the case of Hulu Plus, it is paid for by both.)  However, we DO live in a world of smartphones and internet everywhere.  The rising generation doesn't like to pay for things as it is, let alone for radio.  The music scene has already changed and matured a lot in the past few years and I think it will continue to evolve.  Pandora will survive and hopefully Rdio (and other subscription based services like Mog, Spotify, and Rhapsody) does as well.  Satellite Radio however will not.

Chicago

There is something nostalgic about Chicago. I zoom in and out on Google Maps and for a moment it feels like I am there again. Something emotional about my oldest brother moving away when I still felt so young. He moved to Milwaukee, only a two hour drive away from "The Windy City." Or at least it was supposed to be a two hour drive but I remember the Chicago traffic prolonging travel by at least an hour. Boy do I remember Chicago. If you've ever been to Chicago, you remember it. It is that kind of city. The type of city that evokes a surge of passion through your veins. One that feels larger than life. It resembles New York City but feels much more personal. It's as if you could walk up to any one of the big sky scrapers, press your palm against the brick in a gesture akin to a handshake, and instantly become friends. It's the kind of city where even if you do watch what you eat, you start to believe that Chicago Deep Dish Pizza is good for you. It's where you choose your own identity and then let the world know. That's the Chicago I remember.

That piece was written about two weeks ago. Ladies and Gentlemen, that Chicago I wrote of, will be our new home! After much struggle with what I wanted to do in this life, I have finally decided: Advertising. Specifically, copywriting. Last Friday, the 13th of April, I received my acceptance to Chicago Portfolio School  Wahoo! We will be moving around the end of June in order to be all moved in before classes start on July 9th. We love Utah, our beautiful family, our terrific friends, and the life we have here. However, the call has come and we are ready to leave our mark on the world. First stop: The Windy City!

Photo by Trey Ratcliff 

Honda and Acura Design Woes Continue.

The New York Auto Show is in full swing and there are some awesome new models that have been

introduced. I look forward to discussing a number of those new models here on The Juicebox.  However, I couldn't resist that my first post be about Honda and Acura.  Honda introduced the "Crosstour Concept" which is basically a refresh to the current Crosstour.  It may be a refresh but only a trained eye is going to see the changes.  The problem is, even if you do notice the changes, they aren't any good.  The vehicle is still incredibly ugly.  This is an opinion coming from a guy who really likes wagons.  Now, on to Acura.  Acrua introduced the RLX Concept.  THIS car my friends is supposed to be the company's flagship sedan.  This car is more boring than a white wall.  The best thing about this car would be to drive next to one on a road trip and watch it cause all your passengers to fall asleep.  I honestly don't see how Acura can put this thing on the show floor and feel good about it while Audi and Mercedes are selling legitimate beauty pageant contenders.  Again, I'm not going to argue that this car is going to be a bad car mechanically or not a quiet, comfortable ride.  I am fairly confident it will meet those criteria.  This is about design and the design scheme is seriously flawed, from top to bottom at Honda.    

Note: While I think the Crosstour is downright ugly, I just think the Acura is boring.  The Acura would look fine in a retirement home parking lot.  

Deseret News Hybrid Article

A week after I posted my article discussing the potential saving possibilities of driving a hybrid vehicle, the Deseret News wrote a similar article.  Their results are different than mine based on different calculations but I felt the article may be of interest to you.  Click HERE to read the article.

Going Broke in Order to Have the INTERNET.

I had a conversation the other day with a couple about the iPad.  We discussed the Wi-Fi model vs the LTE 4G model.  So, which model is better they asked?  The answer: This isn't even a competition.  The 4G model is hands down the better model.  The thing is capable of blazing internet speeds on one of the most amazing devices on the market.  So why is every iPad sold not a 4G iPad?  I like to call it the Pay for Internet Connectivity Individually on Every Device Everywhere and Go Broke Problem.  Let me explain.

Meet Jack and Jill Goodfolk.  Jack and Jill have been happily married for 20 years.  We can accurately categorize the family as middle class.  They have 3 kids: Adam, Jane, and Ashley, ages 11, 13, and 15 respectively.  They also love technology and enjoy staying connected.  Here is their current set up and what they are paying.

Verizon family plan.
5 lines on the 1,400 minute plan with unlimited text messaging.  The minutes and texts plus additional lines per month cost $150.  We, however, aren't going to focus on the cost of minutes and texts.  We want to focus on data.

Jack, iPhone 4S, $30 for 2GB of data.
Jill, Galaxy Nexus, $30 for 2GB of data.
Adam, iPhone 4, $30 for 2GB of data.
Jane, Samsung Galaxy II, $30 for 2GB of data.
Ashley, iPhone 3GS, $30 for 2GB of data.

Total cost for data connectivity for the family's smartphones: $150.

There is more.

Jack has the new iPad with Verizon LTE, $30 for 2GB of data.

Jill was jealous so she went out and bought herself a new iPad.  She wanted to break the Verizon way of doing things and got the AT&T model and is paying $30 for 3GB of data.

The family also has Comcast XFINITY internet at home and they pay $45 a month for it.

Jack also purchased a small condo in sunny St. George 5 years ago and pays $40 a month for internet (part of his HOA fee that was added two years ago).

So how much are the Goodfolk's paying each month JUST IN INTERNET COSTS?

The answer: $295.

I hope this number bothers you.  It bothers me.  I also don't believe that this number is exaggerated.  I think the current model is very pro-Telecom and ISP and very anti-consumer.  I think the model is outrageously expensive.  Sure you can argue that no one needs internet on all of their devices. I argue this same point, more or less, in a previous post.  But we want internet on all of our devices.  Our devices are made to use the internet.  New infotainment systems in cars are designed to connect to the internet.  TVs are now "Smart TVs", designed to connect to the internet.  I even saw a Kickstarter project the other day for an internet connected Toothbrush.  If you don't think that in the near future that almost everything we use will be connected in some way, you are short-sighted and need to wake up to the Age of Technology.  The current model is not conducive to a normal family on a normal budget.  Your definition of normal may differ from mine, but most people would agree that paying nearly $300 for internet a month is steep, regardless of income.  This is especially true when streaming a HD movie over LTE can eat up your 2GB data allotment in just ONE hour.  So not only are you paying a fortune but you are also limited in how you can use your data.  The solution is a shared data package that can be used on any device you own at any time in any location.  I understand that there may still be a need for data limits until additional spectrum is freed up and infrastructure is built out to support the increasing loads.  These limits need to be short term.  Shared plans need to be implemented and prices need to be realistic for the consumer.  Obama was happy to implement Cash for Clunkers.  How about Cash for Connectivity?

Prius C Update #2

$6,995 mark up on a Prius C?  What a joke.  That's increasing the price of the car by an extra 33%.  Sure this dealer is crazy but it also shows how popular this little car already is.  Take a look HERE.

Also to note, Toyota is already working on plans to increase production.

Prius C Update

I have a confession to make:  I went and test drove the Prius C.  The guilt that I was feeling for writing a blog post about the vehicle without ever driving one was too much to handle.  Let me be clear: I really hate the styling of the 3rd Gen Prius as well as the Prius V.  However, the Prius C is really not bad.  It's no looker but it probably won't get you scoffed at.  In fact, many less-informed drivers may very well mistake your Prius C as a Toyota Yaris.*

I drove the Prius C for about 5 minutes.  Part city, part freeway.  The thing is quiet on the city roads, especially on start up.  This is, of course, due to the battery technology being utilized under the hood.  I didn't feel like the vehicle was uncomfortable on the freeway but it was a far cry from the comfy cruiser that my 13 year old Lexus is.  Two years ago I drove my Lexus across the country and was very comfortable.  I'm not sure how confident I am that the Prius C could provide a similar comfortable experience.  But let's not get sidetracked here; you wouldn't be buying a Prius C for freeway comfort, you'd be buying it to save a load of greenbacks at the pump.

To write a more in depth review, I definitely need more time behind the wheel.  I also need to not have a 200 pound sales rep in the passenger seat with me.  The Prius was the definition of slow and uninspiring to drive but shedding that extra passenger weight could potentially increase the fun factor by a hair.  

I may not end up buying a Prius C but it looks like Toyota is finding plenty of shoppers who will.  Click HERE to see how fast these things are selling.


*This is not a confusion you should hope for.  The Yaris is the bottom of the totem pole in the Toyota camp.

Fuel Economy: Is a Toyota Prius C worth it?

Gas prices are going up again and the end is not in sight.  Gas prices are a mystery, differing from state to state and fluctuating week to week.  As one who commutes 50 miles a day, this tends to be something I think about often.  I decided to do a little number crunching to see what the cost difference would be between driving my 1999 Lexus GS 300 vs buying a brand new 2012 Toyota Prius C.  See the comparison of the two below, compliments of www.fueleconomy.gov.

2012 Toyota Prius C

So here are the numbers I calculated.
The MSRP of a new Prius C Two is $20,000 (including a $660 haggling discount).  This is a payment of roughly $400 a month.
Over 5 years that is $24,000.
Fuel for 1 year is $1,150 and 5 years is $5,750.
If the resell value of the vehicle mimics a 5 year old Toyota Prius today, it would sell for somewhere between $12,000-$15,000.  Let's go with $14,000.
So, the cost to drive a Prius C for 5 years is $24,000+$5,750-$14,000 = $15,750.
Per year, that is a cost of $3,150.
Per month, that is a cost of $262.50.

1999 Lexus GS 300

Now here is the cost of driving my 1999 Lexus GS 300.  My car is paid for so the purchase price is $0.
Fuel for 1 year is $3,050 and 5 years is $15,250.
If the resell value of my vehicle mimics current 18 year old Lexus vehicles, it would be somewhere between $1,000-$2,500.  We'll say $1,750.
Now, since the car is coming up on 200,000 miles, we need to factor in repair costs.  Over 5 years, I'm estimating $1,300 in repair costs.
So, the cost to drive the Lexus GS 300 for 5 years is $15,250 +$1,300-$1,750=$14,800.
Per year, that is a cost of $2,960.
Per month, that is a cost of $246.66.

The additional cost per month to drive the Prius would be $15.84.  I'm surprised at how little of a difference there is between the two choices.  $15 is marginal, money spent in a heartbeat at lunch out at Cafe Rio.  Now I understand that these numbers are not cold, hard facts.  Some of them may be wrong.  I didn't do a full, lengthy analysis on this, so I may be missing some other essential elements.  I didn't take into account other maintenance costs.  Also, if my Lexus were to blow a head gasket, have the transmission go out, or die altogether, then this numbers would also need to be adjusted.

So the question is, do I want to drive a Prius or my Lexus?  It should be noted that I have hated the Toyota Prius with so much zeal that it is amazing I actually 1)wrote this post and 2)am even considering the Prius as a car worthy of buying.
If you see errors with my calculations, please let me know in the comments section.  Remember, it was my brother who received the Math Sterling Scholar award in high school, not me.