Friday, July 25, 2008

Great Deal on a lightly used Chrysler 300C

From Mark Hebert at WHAS, and the Courier-Journal:

First Mark:
The Draudmobile On eBay

Kentucky Public Radio reporter Tony McVeigh is reporting that Education Commissioner Jon Draud plans to auction off his controversial state car on eBay.

Kentucky Education Commissioner Jon Draud's expensive new state car will be sold at auction on eBay.

The move is intended to lay to rest a controversy over the purchase of the $31,000 Chrysler 300. The price included about $13,000 worth of upgrades, including a more powerful engine, a hands-free phone system and a global positioning system.

Draud drew criticism by opting for the upgrades at a time when the state is facing a $900 million revenue shortfall. The projected shortfall has triggered widespread cuts to government services.

The education commissioner told Kentucky Public Radio that he plans to enter a $31,000 bid for the car himself to ensure that the state recoups the full price. But he said he will be pleased if someone makes a higher bid.

C-J adds:

Education Commissioner John Draud's car listed on eBay.
Commissioner to bid full price to repay state
..."I'll tell you what, I hope I don't get it," he said of the car, which had 4,851 miles on it as he was driving and answering a reporter's questions last night. "I really don't want the car, not at all."

Draud, a former state legislator who started the commissioner's job in December, ordered the car at a time when the state was facing a $900 million revenue shortfall and education funding at all levels was being slashed. He requested the car after the lease expired on the Ford Crown Victoria he had been driving.

He said most of the additional cost for the upgrades was for a larger engine, which was required to get the GPS and hands-free phone. He said he needed the add-ons because his job requires a lot of travel.

The move provoked a hail of complaints from taxpayers and educators. Draud acknowledged last month that he "used some bad judgment," given the budget situation.

If he wins the eBay auction, Draud said he doesn't know what he'll do with the car, as he prefers his Cadillac. "I guess I'll keep it, maybe give my car to my son."

After the car is sold, Draud said he'll drive whatever car is assigned to him by the state. "It's in my contract; I get a car," he said. "I'll drive whatever they give me."

Lisa Gross, a spokeswoman for the state Department of Education, said the state's Finance & Administration Cabinet decided to sell the car on eBay because state laws require that surplus property be sold at auction.

"He just couldn't write a check," she said.

Instead, Draud told Kentucky Public Radio yesterday that he plans to bid $31,000 for the car to ensure taxpayers get back what they paid for it.

"If the process goes as planned, this should put an end to this," Gross said of the controversy surrounding the car.

Online auctions aren't new to government. The city of Louisville has been selling surplus property on an Internet site for several years.
A commenter on Hebert's blog asked,
"...what is the legality of Draud bidding and perhaps purchasing a vehicle that the state bought on price contract, especially if the $31k is less than what a regular consumer would pay for the same vehicle with the same options and features?"
I don't know. But it's a good question. It does seem odd to have a "surplus" government vehicle with less than 5000 miles on it.

Maybe the state could solve its budget crunch by buying up cars on price contract - then selling them back to the general public at a profit.

When the story first broke I called Paul Cleaver at Freedom Chrysler.... to ask about the car. Cleaver said...
This is a top of the line automobile with a luxury package, leather seats and different sized wheels. This has a hemi...V-8... and a completely different power train [than the regular 300]. The one I'm driving lists at $41,000. It sounds to me like the state got a heck of a deal at $30,000. That's $11,000 cheaper than what I'm driving.
Sweet deal. ...except for the fact that it's a ...well...you know...big toothy-looking Chrysler.

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