Thanks to The Zebra for sponsoring today’s video. See how much time and money you could save today by comparing car insurance rates with a quick visit to http://thezebra.com/bumper The Chang Li ZYX is an electric vehicle that you can buy online today that costs less than a pair of Jordan 1 breds . Between engineering, development, manufacturing, shipping and a ton of other factors, how can a company make a profit on a sub $1000 car? Today we are gonna dive into the world of cheap cars, and see where companies cut costs in order to make more franklins.
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Content
1.406 -> (upbeat music)
6.38 -> - Do you love driving, but
are so sick to your tummy
8.452 -> because you gotta spend all
your greenbacks on a brand new
10.93 -> four wheel go-go machine.
12.707 -> Do you hate going to a
dealership just to have
14.75 -> to look a floor salesmen
in the eye and say,
16.5 -> I don't have any money.
18 -> I'm wasting your time.
19.2 -> Are you sick and tired of being treated
22.23 -> like an adult baby or a boy or girl.
24.48 -> Do I have a car for you.
26.2 -> Come on down to Jerry's used car auto mat.
28.32 -> Were I'm going to put you in
a brand new 2020 Changli ZYX
31.87 -> for $930. Hold on what?
34.452 -> Stop for a second.
36.38 -> Frankie boy, is that
the total car price or
38.05 -> the monthly price?
39.47 -> The total price.
40.303 -> (screaming)
41.6 -> - The ZYX is an electric vehicle
43.54 -> that you can buy online today
45.461 -> that costs less than a
pair of Jordan One Breds.
48.137 -> A car that can not only haul
you and your friends around,
51.06 -> but also has a center driver's seat.
52.88 -> It's basically a McLaren F1.
54.745 -> While it might not look
all that great. It's cheap,
57.56 -> it works and it got me thinking,
59.74 -> how can you make a car so inexpensive?
62.66 -> Between the engineering, the development,
64.45 -> the manufacturing, shipping
and a ton of other factors.
67.66 -> If the goal is to turn a profit,
69.497 -> how can a company do
that on a sub $1,000 car?
73.56 -> So today we're going to dive
into the world of cheap cars
76.74 -> and see where companies cut
costs in order to make more
80.14 -> Franklins.
80.973 -> I might just buy one of
these to give it away on the
83.66 -> doughnut underground. We'll see.
90.024 -> (soft music)
94.069 -> - Thank you to the zebra for
sponsoring today's video.
96.29 -> Oh, hey, did you know the Zebra
98.1 -> is the nation's leading car
insurance comparison site?
100.88 -> They make it possible to compare
quotes from over a hundred
103.45 -> plus insurance companies
in under five minutes.
106.22 -> The Zebra is about
convenience, expertise, savings
109.05 -> and of course transparency.
111.13 -> Unlike other car insurance company sites,
112.87 -> Zebra doesn't need your
phone number and they're not
115.13 -> interested in selling your data.
116.7 -> The zebra just wants to help
you save money and find your
119.26 -> perfect policy no matter who
you are or what you drive,
122.59 -> it's that simple.
123.423 -> Drivers who use the zebra have saved
125 -> an average of $440 a year
on their car insurance.
128.24 -> So head on over to the
zebra.com/bumper to compare quotes
131.88 -> for free today, let's
get back to the show.
135.07 -> Oh shoot. Think I missed
my exit. No problem.
140.49 -> The Chang-Li ZYX is a Chinese
made rear wheel drive electric
144.74 -> lukewarm rod of a vehicle
that you can buy without ever
147.78 -> leaving your house.
148.82 -> Surf on over to Ali-Baba.com
and within a few clicks,
152.44 -> you'll have one of
these bad boys delivered
154.23 -> in a box to your driveway.
156.1 -> With three power level options.
158.28 -> The ZYX has a maximum
speed around 25 miles per,
162.29 -> with a 40 mile range.
163.73 -> It's got independent suspension
and it has the luxury
166.25 -> features like a full-sized
spare tire, backup camera and
169.99 -> a digital dashboard.
171.11 -> When I bought my F-150,
172.75 -> the dash alone costs more
than this entire car,
175.54 -> but the cost of a car is more than just
178.1 -> a running list of parts.
179.67 -> Manufacturers have to design,
research and develop that car
182.78 -> into its shiny new perfection
184.49 -> before it reaches any lot
185.94 -> and that's an expensive endeavor.
188.12 -> When it comes down to it,
the research and development,
190.52 -> marketing costs and
engineering costs of a new car,
192.91 -> outweigh the cost of parts alone.
195.05 -> But that paradigm is for
big name manufacturers,
197.815 -> Changli, they cut costs
by focusing on the parts.
202.01 -> And when talking EVs,
203.12 -> most of the costs comes
from the batteries.
205.55 -> The four wheel electric
environmental protection car,
208.81 -> small electric car, as
it's called on Alibaba,
211.598 -> is powered by five 12
volt lead acid batteries
214.7 -> producing 60 volts of juice.
216.84 -> Now 60 volts. Those are rookie numbers.
218.7 -> You've got to pump those suckers up,
220.12 -> especially when you compare it
to model three's, 400 volts.
223.88 -> But voltage aside, the
real thing to focus on is
226.63 -> the type of battery.
227.758 -> All the major manufacturers
in the EV market
230.3 -> use some sort of lithium ion technology.
232.58 -> Whether the chemistry is lithium
nickel, cobalt, aluminum,
235.54 -> or if it's lithium
nickel, manganese cobalt,
237.94 -> they're using lithium batteries.
239.387 -> And the reason is pretty simple.
241.38 -> They have more capacity, they
have a higher energy density,
244.28 -> they're more efficient, they
have a longer lifespan and
246.27 -> they have a larger depth of discharge.
247.95 -> While it's normal to use
85% or more of a lithium
250.82 -> ion batteries, total
capacity in a single charge.
253.119 -> It's damaging to discharge a
lead acid battery past 50%.
257.68 -> After that you start to
shorten its lifespan.
260.15 -> But if lithium ion is the
answer, what's the catch?
262.927 -> The catch is costs. You got to mine them.
265.78 -> And then you've got a process
and convert them into high
267.97 -> purity versions that may
quality long lasting batteries.
271.245 -> Lead acid. On the other hand, it's cheap.
273.96 -> Led is cheap. Acid is cheap.
275.81 -> Not only are the actual batteries
cheap, so is the housing
279.08 -> you put them in.
280 -> The batteries are covered with
a low cost cardboard sheet,
283.57 -> right beneath the driver's seat,
284.96 -> as opposed to nestled into
some custom engineered casing
288.14 -> that for example, you see
it in a Lucid or Tesla.
290.87 -> I mentioned a second ago, energy density,
293.41 -> and the better that metric
is the longer range you have.
296.397 -> The lead acid batteries in the ZYX
298.48 -> gets you an average of 40 miles.
300.335 -> Now the median EPA estimated
range for an average EV vehicle
304.17 -> in 2020, was 250 miles and it also
307.02 -> takes about six to eight hours to charge
308.81 -> those lead acid batteries.
309.95 -> Another downside of using them.
311.58 -> And once you spend all
that time charging them
313.3 -> we're at full capacity and
you stomp on the electricity,
316.84 -> you'll notice a lack of power.
319.07 -> That's because the ZYX has
only a single 1200 watt,
322.74 -> 1.6 horsepower DC motor.
325.48 -> The same type of motor
in your washing machine.
328.16 -> Yep, it's just a washing
machine on wheels.
331.06 -> And not all, but most EVs use motors
333.53 -> that run on alternating current,
335.5 -> but their batteries output direct current.
337.82 -> So how do you go from DC from
the battery to turn it into AC
341.14 -> for the motors? Well, AC it's
wiggling, DC it's straight.
345.38 -> So in order to get the
straight to turn wiggly,
347.39 -> you need some electronics to do that.
349.35 -> Specifically, you need an inverter and
351.25 -> an inverter takes direct
current from the battery,
353.27 -> switches it on and off so
fast that it turns it into
356 -> alternating current,
357.11 -> the type of current needed by the motors.
359.33 -> Those inverters are
extremely sophisticated.
362.25 -> When I met with the CEO of Lucid,
363.868 -> Peter Rawlinson about the lucid air,
366.16 -> we nerded out for 30
minutes, just on inverters.
369.11 -> With that sophisticated piece
of equipment, comes cost.
372.053 -> But if you use the same type
of current coming off the
374.76 -> batteries to power your motor,
376.44 -> you don't need a fancy inverter,
got DC from the batteries,
379.08 -> DC to the motors.
380.34 -> You can get your Samsung washer
on wheels and call it a day.
383.465 -> Changli manufacturers
did find a way to save
386.52 -> some bucks in the break department,
388.14 -> by well not including
them on the front wheels
391.482 -> They cut the cost of break
installation in half,
394.36 -> right there. Now most
cars rely pretty heavily
396.9 -> on front disc brakes for
anywhere from 60 to 90%
399.716 -> of their stopping power,
401.146 -> but big cars are heavy and
they need those breaks.
403.82 -> The ZYX weighs in at 323kgs.
That's just over 700 pounds,
408.89 -> or... (drum roll)
411.38 -> - I'm not going to say
it guys. I've matured.
413.123 -> I'm a better person now.
And I just won't do it.
416.07 -> Your mom.
417.26 -> But in the rear you
have the cheapest breaks
419.25 -> outside of Flintstone feet.
421.12 -> The mechanical drum brake.
422.775 -> When you press the pedal,
424.18 -> the pedal pivots activating
a bell crank style linkage
427.07 -> that engages a series of
lever arms, and a splined rod,
430.01 -> which pushes the brake shoes
against a rotating cylinder.
433.15 -> The more costly and more
common breaking systems are
436.03 -> hydraulic disk brakes.
437.43 -> The benefit of disc brakes
over drum brakes is in the heat
440.61 -> dissipation department.
442.11 -> That's what they call me
when I'm around the pool
444.37 -> in a Speedo.
446.623 -> (laughing)
447.64 -> - Drum brakes allow heat
to build up inside the
450.58 -> drum when braking,.
451.83 -> But with disk brakes, the rotor
is free flowing in the wind.
454.8 -> That flow of air around the rotor cools
456.71 -> the entire braking system,
457.85 -> preventing that hydraulic
fluid from boiling and
460.14 -> causing brake fade.
461.47 -> The Changli ZYX or as it's also called on
464.34 -> Ali-Baba, elderly leisure
commuting to pick up children car,
468.357 -> cut costs, not only in the
battery and motor department,
471.8 -> but also in the steering system as well.
473.76 -> It uses a rack and pinion
setup that was first seen
476.59 -> in the American automotive
manufacturing way back in 1974
480.18 -> in the Mustang Two and Pinto.
481.88 -> The rack and pinion
steering is not only a more
484.14 -> straightforward and
simplistic design than the
486.42 -> recirculating ball steering
system previously used,
488.99 -> it's also more cost-effective to build
491.24 -> due to its simplicity.
492.41 -> It's also cheaper than
hydraulic power steering,
494.69 -> electric power hydraulic steering
496.57 -> and fully electric power steering.
498.48 -> Because of the low costs,
along with the fact
500.49 -> that it's pretty easy to figure out when
501.99 -> something goes wrong with it,
503.53 -> the Changli kept it simple
and used rack and pinion.
506.05 -> When we look in this
suspension department,
507.81 -> there's a fun mashup of
modern and relatively ancient
511.1 -> history happening near the steering shaft.
513.09 -> The front suspension is made
up of a dead axle and kingpins
516.04 -> to let the steering knuckles rotate,
517.733 -> never heard of a kingpin?
519.24 -> Well, maybe that's because
they were more commonly
520.94 -> spotted on the Model T.
523.28 -> The axle fits in between two
collars on the spindle and
526.19 -> rests on a roller bearing and
a king pin slides through the
529.12 -> spindle and the axle where
an alignment pin locks
531.5 -> everything in place.
532.75 -> In terms of suspension setup,
534.49 -> this is super simple and super cheap.
537.625 -> And in the rear, surprisingly,
you have coral springs.
540.736 -> And those core lowers might
not be the cheaper option for
543.69 -> most manufacturers because
they would need to buy those
546.21 -> parts from other factories.
547.68 -> But for Changli the parts
are made by the same company,
550.74 -> manufacturing the cars themselves.
553.01 -> So that keeps costs lower by
consolidating production of
555.68 -> parts and cars, into one single factory.
557.89 -> And they make them in bulk.
559.29 -> And when you buy in bulk, the price drops,
561.029 -> have you ever shopped at Sam's
or Costco or Jerry's discount
564.05 -> motorcycle shop?
565.25 -> Because I got a bunch of motorcycles.
566.84 -> I'm selling them for cheap.
568.778 -> I'd never sell my motorcycles ever.
571.34 -> if you buy one of my
motorcycles, it's cause I'm dead.
574.44 -> My girlfriends like, "Sell
some of your motorcycles",
576.55 -> and I'm like, "never, ever,
579.346 -> and I'm not willing them to you either,
581.88 -> I'm going to will them to a
museum and you'll never be able
584.915 -> to touch them".
586.247 -> "You're going to be begging
the museum curator like, Hey,
588.52 -> can I scrape some of the
seat dander off of it and
592.371 -> smell them? And I'm going to be like, no".
595.09 -> I'll will it to a member of
the doughnut underground.
597.29 -> It's actually, if you want to
see more motorcycle content,
599.86 -> go on the doughnut underground.
600.92 -> We're going to do a video on
my whole motorcycle collection,
603.87 -> check it out.
604.703 -> Also click the like and subscribe button,
606.6 -> because that really helps me out,
607.78 -> lets us know that we're doing a good job.
610.065 -> This same paradigm applies to the frame.
612.95 -> The same frame where you see
on the ZYX is stamped out in
616.1 -> mass for all kinds of other
low speed delivery vehicles and
619.13 -> tricycles across Asia and Europe.
621.2 -> And it's not just the frame.
It's the body, the lights,
623.99 -> the heater, the backup camera,
625.5 -> the windows and the
trim and the regulators.
627.68 -> The truth is the Changli functions,
629.36 -> as basic as a car can be.
631.15 -> It does its job of going from A to B,
633.96 -> using old school engineering.
635.83 -> Instead of spending big
bucks on development and