This logo works for me for several different reasons. First of all the treatment of the letterforms is fun and young looking which sends what I think would be the intended message that would invite the target audience. It is not overly complex or flashy so I feel that the place looks like a discount store without looking "Cheap".
Neither "Teen" nor "Discount" are overly prominent in the design, I think this is one of the elements that make it look Affordable but not Cheap. I like that the almost hand drawn "TDZ" is used in the design so that after the company has gained enough exposure, just this part of the logo could be used to cause a recall of this message in the audience.
This logo looks confusing and the illustration looks like it was forced into the design. It's readability is questionable at best, due to the cliche (and poorly illustrated) steering wheel that is used as the O in motor sport and put in a black box. On first glance I see MOTORSP Auto. This problem is created by the black box that is behind the steering wheel-O. The alignments of the letters make the design seem even more confusing. Or should I say the lack of alignment. The message I receive from this logo could have been sent more professionally and understandably by using just the word and an old fashion type writer. There is no cohesive flow through the design which might say "We sell vehicles that might not run to smoothly".