Edmunds.com consumer advice editor Philip Reed was recently interviewed on "America's Car Show" by host Tom Torbjornsen. He spoke about changes in the new and used car markets as well as his prediction for the future of the American car business. Have a listen.
In related news, columns about auto maintenance will be presented on Edmunds Daily written by radio host Torbjornsen. The articles will cover a wide variety of topics that will certainly help car owners prolong the life of their cars. Tom's columns will begin appearing weekly in March.
Each Thursday I post my deal of the week, a vehicle that represents a great value for the consumer. In order to get my nod as a deal of the week, it must have a great finance or lease rate or perhaps has a large amount of cash incentives. Today, though, I want to make note of a vehicle that is just the opposite.
We've been saying for a long time but it's a great time to buy a car. Apparently people are listening. And they're using our advice to press for smokin' hot deals.
Last week I had to sell our long-term Scion xB and nobody even wanted to come look at it before making an offer. Everyone wanted to negotiate over the phone.
I put it on Craigslist and Autotrader.com for $29,000 voting for quick sale. Before doing that I had taken it to Carmax for a quote. They offered $26,000.
Last night, during dinner, my phone rang and when I picked it up it was a woman interested in buying our Mercedes. She didn't make any preliminary comments or ask if I was flexible on the price or even try to make small talk. Here's what she said:
1. It's not that nice inside. Used to be that the Toyota Corolla was the slam-dunk in this segment if you wanted a reasonably upscale yet economical ride. The economical part is still there, though the new Corolla tops out at 27 mpg city/35 highway (with the automatic), while the previous generation was rated at a marginally better 28 mpg city/37 highway (with the manual). But the upscale part? Not so much. The Corolla's interior is rife with hard plastic, and none of the switchgear feels particularly substantial. It's not bad, but it's certainly no better than, say, the cheaper Hyundai Elantra's cabin.
2. It's not that nice to drive. I know driving enjoyment isn't a priority for many shoppers, but the Corolla's flaccid character still seems a bit much. The steering is completely devoid of feel and feedback, and the body roll is Buick-like. Also, the 1.8-liter engine drones unpleasantly at higher rpm, which is odd -- I remember finding the previous Corolla's 1.8-liter engine note smooth and refined.
1. It's up against some pretty impressive competition. There's the abovementioned Elantra, which is basically a more endearing and content-rich Corolla for less cash. There's the redesigned 2010 Mazda 3, which has both a nicer interior and a much more engaging driving demeanor. The Honda Civic remains a strong if quirkily-cabined entry, and the Mitsubishi Lancer feels both sportier and more substantial. Moreover, Ford's waiting around the corner with the redesigned Euro-spec Focus.
Many Corolla buyers probably didn't bother test-driving anything else. If they had shopped around, I wonder how many of them still would have bought the Toyota. I suspect our 2008 Economy Sedan Consumer Comparison Test contains a few clues.
The name "Frontier" conjures up all sorts of images: prospectors in search of Alaskan black gold, adventurers crossing the Amazon, nomads roaming the sand-swept dunes of the Kalahari -- the types of environs for which an off-road-ready pickup truck like the 2009 Nissan Frontier PRO4X.
Now, we didn't take the Frontier to those places. Our CFO laughed when we suggested it. "Do you know how much it costs to ship a pickup truck to Botswana?" he asked. What a party pooper. But I did take it into the San Bernardino Mountains for a photo shoot and some light off-roading to dip our toes into the Frontier's rugged potential.
Despite that potential, though, the Frontier couldn't overcome my own stupidity. Go ahead and laugh, but I buried the rear tires when I was requested to fling up some snow for a photo. I gunned it in rear-wheel drive and kept gunning it without realizing the Frontier was making like the Titanic. Ten minutes and a lot of shoveling later, I was out. But the ego was bruised and I suspected the truck was making fun of me.
The Saab brand and performance cars were the latest casualty in GM's attempts to move forward as a financially viable company.
In AutoObserver we note that the Swedish manufacturer, owned by GM, is likely to file Chapter 11. Anyone with questions about existing warrantees on their Saab should review our earlier post on warranty questions.
Also on the chopping block was GM's High Performance Vehicle Operations Unit which was in the company's Performance Division. As reported in Straightline, the production of such cars as the Cobalt SS and the HHR SS has been put on hold. This could mean that existing inventories of these cars could be sold at bargain prices. It will also mean that depreciation on these cars will be precipitous.
The fate of the sentimental favorite, Chevrolet's Corvette ZR1, also seems uncertain. But one thing that is definite is that prices are dropping. Though once over-sticker priced performance car will be selling at prices well below MSRP and may soon include incentives. Check out our story in a Straightline for more information.
The Toyota Camry is the bestselling car in the land. Toyota's reputation for reliability and resale value helps move hundreds of thousands of units of the Camry every year. However, there is an updated 2010 Carmy set to go on sale in March and, due in part to the sick economy, Toyota has an oversupply of the 2009 model.
According to Automotive News, Toyota ended January with a 77-day supply of Camrys. Since Toyota would like them to be sold out by the time the 2010 Camry arrives, Toyota has decided to increase incentives on the 2009 model. While incentives for Toyota vary by region, consumers can claim as much as $1500 customer cash or financing as low as 0% for 36 months on the 2009 Camry.
The question is, should you wait for the 2010 Camry or pick up a discounted '09 model? Well, the 2010 Camry will have some styling changes along with some minor equipment and interior enhancements. However, the biggest change will be in the standard 4-cyl engine. A new 2.5-liter four-cylinder engine equipped with variable valve timing with intelligence (VVT-i) will produce 169 hp for Camry, LE and XLE grades. For sporty performance, SE grade get additional tuning and gets 179 horsepower, 21 more horsepower than the previous four-cylinder engine.
So if you like the looks of the current Camry and find the power to be adequate, you might just prefer to save some money and go with my deal-of-the-week, the 2009 Toyota Camry.
Click here for more information on the 2009 Toyota Camry.
Last week we reported that the Senate had hoped to make both the sales tax and the interest on auto loans deductible in the giant economic stimulus package signed yesterday by President Obama. During House/Senate negotiations, the interest deduction was struck down in order to decrease the overall size of the package. But H.R.1, the American Recovery and Reinvestment Act of 2009, still allows sales tax deductions on new vehicle purchases.
What are the specifics for auto shoppers? In sum, state and local motor vehicle sales taxes and motor vehicle excise taxes are all deductible on any new car, light truck, recreational vehicle, or motorcycles purchased between February 17th and December 31, 2009. Individuals with a modified adjusted gross income of less than $125,000 or joint-filers making less than $250,000 a year in 2009 qualify.
With the demise of Saturn nearly certain and the fate of Hummer, Saab and Pontiac hanging in the balance many consumers are wondering what will happen to their warrantees if these brands are sold or go into bankruptcy.
Saturn owners may face the biggest challenge since the Saturn sales and service experience is perhaps more popular than the cars themselves. Still, it is likely Saturn owners will be able to have repairs made under warranty, have routine service performed and continue to buy parts even if the Saturn brand is phased out by 2011 as proposed.
The recently announced plan to restructure GM and Chrysler, described in this Auto Observer article, has raised questions in consumer's minds about the long-term viability of owning one of these domestic cars. However, any plans automakers forge to return to stability (that means business as usual in the service bay) will certainly include plans to continue warranties and service.
If you happen to work for Miami's City National Bancshares -- or have otherwise managed to find a silver lining in the economic downturn -- then you may be interested to hear that Porsche has announced stateside pricing for its new Panamera four-seat performance sedan. The Panamera S, powered by a 400-horsepower, 4.8-liter V8 mated to Porsche's excellent PDK dual-clutch automated manual, will start at $89,800, while the all-wheel-drive Panamera 4S checks in at $93,800 with the same engine and transmission. The top-of-the-line Panamera Turbo sports a 500-horsepower twin-turbocharged version of the 4.8-liter V8, as well as a considerably heftier MSRP of $132,600. The Panamera family will be available at Porsche dealerships starting in October.
"With all the talk of financial bailouts and corporate jets, politicians, news anchors and stock market analysts have suddenly become automotive experts. They all seem to be saying the same thing: American cars are no good. OK, sure -- we'll admit that 20 years ago, American cars like the Pontiac Sunbird and Ford Bronco II weren't even in the same ZIP code as cutting-edge, and quality was often an afterthought. But that's no longer true -- today, there are plenty of American cars that deserve respect."
Wondering which domestic vehicles are worth a look-see? Read the rest of the story here: Top 10 American All-Stars.
This week we got an email from a car sales manager with a list of 25 things he wanted to tell car shoppers. Later in this blog, I'll post some of his items. But first I wanted to revisit an AutoObserver article with comments about car dealers from the head of Hyundai Motor America.
Seems acting Hyundai CEO John Krafcik believes that part of the reason cars aren't selling is because of the way they are sold. He even quoted a study saying people would prefer to visit the dentist rather than go to a car dealer. Do you agree? Dentist? Or car salesman?
The answer obviously lies in the kind of car salesman you're dealing with. And the dental procedure you're having perform (having your teeth cleaned isn't so bad).
So, to spark some discussion, here is a list from an "anonymous sales manager" who writes, among other things, "Sales people have families too and have the right to earn a living just like anyone else." (Hey, we never said they didn't!)
We edited his list down to the points we thought were particularly valid and added a few comments of our own in italics.
There are so many ways that a manufacturer can help a dealer to "move" a car that it's almost impossible to keep track of. But two of the main tools are Dealer Cash and Dealer Holdback.
Dealer Cash is money that the manufacturer offers to the dealer to help sweeten the deal for the consumer. The manufacturer might offer this money when the dealer first buys the car, or later, when the dealer sells the car or reaches certain sales targets. Dealer Cash is listed in our Incentives and Rebates, so you can see exactly what's being offered to the dealer. But here's the catch: Dealers aren't required to pass all that cash through to the customer. They may, or the customer may get some or none of it. It all depends on your negotiation.
Dealer Holdback is a percentage of either the MSRP or invoice price of a new vehicle (depending on the manufacturer) that is repaid to the dealer by the manufacturer. The holdback is designed to supplement the dealer's cash flow and indirectly reduce "variable sales expenses" (code words for sales commissions) by artificially elevating the dealership's paper cost. It is dealer holdback, among other factors, that allow dealers to sell a vehicle at invoice price -- or sometimes even below -- and still make some profit.
Our True Market Value vehicle figures incorporate Dealer Cash as one of several types of incentives that can affect the average transaction price for a car. So when you use TMV as your target, you can rest assured that Dealer Cash has been factored into that price.
Dealer Holdback is a "sacred cow" to dealers and something they generally won't budge on (and if you bring it up, you're likely to be met with some scowls), so it is not figured into TMV. Although there are strategies for when to ask for the holdback, we recommend only bringing it up if a dealer starts whining about "not making any money" on a vehicle. Even if they sell the car for invoice price, they will still make a few hundred dollars on the holdback.
BMW used to be the peddler of simple sedans and coupes. A convertible was thrown in occasionally. Now there are sedans, coupes, convertibles, wagons, roadsters, SUVs, sport utility coupes and now an AMC Eagle.
BMW released the official images of its 5 Series GT Liftback to be unveiled at the 2009 Geneva Auto Show. It is dubbed a concept, but what you see here is incredibly close to the final version. (Read the full story on Inside Line News) It will be priced and sized in between the 5 and 7 Series, "pitched at customers seeking a raised seating position who may be uncomfortable with the idea of image of a conventional crossover SUV." Sounds like a Venza to me.
But Jiminy, look at the thing -- especially from the rear three-quarter view. That does not look pretty. Sure, you could say it looks like a BMW Prius (or maybe a huge Saab 9000) but I'm going with an AMC Eagle in overall concept. The Eagle and 5 Series GT are both taller than conventional wagons, shorter than SUVs, have all-wheel drive and sport a sloping rear roofline. Heck, look at the BMW's interior trappings, they look time warped from the '70s. (Pictures After the Jump)
We here at Edmunds are quite fond of the Cadillac CTS. While our long-term CTS has certainly received its share of complaints, most editors agree that it is not just leaps and bounds better than most Cadillacs in recent memory, but that it also more than holds its own when compared with other vehicles in its class, whether they are from Germany or Japan. But just being a great vehicle does not make for a "deal of the week." Read on to see what does.
In our recent article, How To Get an Auto Loan During the Credit Crunch, we said that consumers could expect that higher interest rates and bigger down payments would be required to buy a new car. A new report from Comerica Bank illustrates what that really means to Joe Consumer: The total cost of buying an average-priced vehicle rose from $27,160 in the third quarter of 2008 to $27,700 in the fourth. That's a $540 difference, which isn't exactly chump change.
When it comes to vehicle reliability, the two brands that probably pop into most consumers' heads are Honda and Toyota. However, the facts illustrate how sometimes perception lags reality. The domestic automakers have been claiming that their reliability is at least on par with their Asian rivals. Ford now has some facts to help back up this claim. Over the last two years, Ford has reduced its warranty repairs costs by $1.2 billion. In addition, their warranty repair rates are 50% lower than they were just five years ago.
We're already been pretty clear about our positive reaction to GM's "Lambda" crossovers, the GMC Acadia, Buick Enclave and Saturn Outlook. However, while these triplets have sold well, the fact remains that the real GM bread winners inevitably wear a Chevrolet bow tie. There's certainly something to be said for the fact that there's a Chevy dealership in just about every town in America -- not so much Saturn and GMC.
That makes the 2009 Chevrolet Traverse the most important Lambda of them all. Not only is it the least expensive, but it's also likely to be the best seller. Is it the best version, though? Or is it worth the extra effort to find a Buick-GMC store?
There are plenty of fees associated with buying a new or used car -- enough to make you think you should have bought a less expensive vehicle. Which of these fees are mandatory and which can you haggle over? Let's break it down:
Vehicle Registration fee: This one's a no-brainer. Every vehicle must be registered by the state. It covers registration, license plate fees, and title assignment.
Sales Tax: Same as it ever was. At 8%, tax on a $20K car can cost $1,600!
Documentation fee: If the doc fee is regulated in your state, pay it. But in most states it's not, and the dealer could really overcharge you. Try to keep your doc fee at or below $100.
Dealer fee: Often labeled 'dealer prep' or 'shipping' or any of a number of made-up names, this is where you need to be careful.
Advertising fee: If it's listed in the car's invoice, pay it. If not, but the dealer tries to write it into your contract, fight it.
Taxes on Trade-Ins and Rebates: This is a complicated subject and, as usual, it depends on your state law. But a state-by-state breakdown of these taxes, along with more details on all the fees listed above, is in our article, What Fees Should You Pay? Here, as with the price you pay for the metal you'll be driving home, it really pays to do your homework before going to the dealer.
As Edmunds Green Car Advisor reported yesterday, the sales of hybrid cars and SUVs are circling the same drain as regular gasoline-powered vehicles. The horrible economy isn't helping things, nor is the knowledge that the all-new Insight and 2010 Prius are just around the corner. General Motors' hybrids took the biggest hit recently, but they're sold in such ridiculously small numbers, it's hard to imagine it really matters much to GM's quivering bottom line. Just look at the disparagies and specifically how the Prius outsells all other hybrids combined by 977 units.
Toyota Prius: 8,121 Lexus RX 400h: 1,556 Toyota Camry Hybrid: 1,141 Honda Civic Hybrid: 1,076 Toyota Highlander: 984 Ford Escape Hybrid: 753 Nissan Altima Hybrid: 644 Chevrolet Tahoe Hybrid: 299 (981 sold in December) GMC Yukon Hybrid: 168 Saturn Vue Greenline: 153 Chevy Malibu Hybrid: 145 Cadillac Escalade Hybrid: 132 Lexus GS 450h: 41 Lexus LS 600h: 33 Saturn Aura Greenline: 19 (not a typo)
As Green Car Advisor reported yesterday, BMW has qualified for federal clean-diesel tax credits for its 335d and X5 xDrive35d models. Both are powered by a 3.0-liter twin-turbo straight-6 that produces 265 horsepower and a whopping 425 pound-feet of torque. Those who pony up the $44,725 for a 335d (our recent test car hit rang in at 50 large) will receive a $900 tax credit, while the $52,025 diesel X5 gets a $1,800 credit.
At those prices, these rather small credits could seem like getting a free iced tea with the purchase of a six-courser at Le Bernadin. However, BMW is hoping the credits wipe out the price premium attached to diesel fuel and the car's diesel engine (if that luscious torque didn't already do the trick). To find out if it does, let's do some math.
The 2010 Mercedes-Benz GLK350 is about to make a big splash. Get it? It's funny because it's making a big splash in the photo.
Puns aside, we didn't have high hopes for this all-new luxury compact crossover. The three-pointed Mercedes star is usually enough for people to buy whatever old thing it's glued to, regardless of whether it truly lives up to the brand's historic pedigree. The dumpy C-Class hatchback or Europe's A-Class come to mind. To be honest, the 2010 GLK350 seemed like nothing more than one of these cash-grab products preying on customer vanity (it was featured in Sex and the City after all) and the popularity of compact SUVs. We were wrong ...
With gas and oil prices significantly lower than they were six months ago, buyers have begun to shift their buying priorities away from fuel economy and more towards other factors. One vehicle segment that has benefited from this shift is the full-size pickup market. These vehicles have fans in both the work and recreation markets, with their ability to haul large loads, tow and in general just being big and comfortable. While models from Dodge, Ford, GM and Toyota get all the press and accolades, the Nissan Titan tends to be forgotten by many buyers.
While it may not win comparison tests, it is still a capable hauler. For 2008 Nissan updated the Titan with many changes and improvements. Most significant was the new long-wheelbase model. A 20-inch-longer wheelbase is available on both extended-cab and crew-cab trucks. Truck buyers who were previously put off by the Titan, such as contractors or those who do a lot of hauling, no doubt appreciated the new cargo bed lengths. Long-wheelbase versions of the crew cab and extended cab have 7-foot and 8-foot beds, respectively. The exterior was updated with revised front-end styling, while the interior features new designs for the seats, center stack and gauge cluster. Feature-wise, the 2008 Nissan Titan could be had with Bluetooth connectivity and factory-installed satellite radio, and the optional rear-seat entertainment screen is a little bigger than before. Nissan has also introduced a new trim level, the Pro-4X, but it's pretty much just a new name for the equipment offered in the 2007 optional off-road package.
But what makes the Titan a "Deal of the Week?" Through March 2nd, Nissan is offering $5,500 customer cash on the 2008 models and $5,000 on the 2009 models. Zero-percent financing for up to 60 months is available on the 2008 models (in lieu of the cash). With Titan sales down more than 60% last month, dealers want to move their bloated inventory, so you should be able to swing quite the deal on either an '08 or '09 model.
Click here to search for Nissan Titian inventory in your area.
When you buy a car the sales tax and the interest on the loan may soon be deductible, the U.S. Senate decided yesterday.
Is this the catalyst that will open the floodgate for shoppers to return to the car lot? It's debatable. While a deduction of any kind is welcome, and might spur to action shoppers who are currently on the fence, it remains to be seen how much money this will actually save consumers.
When Maryland Democratic Senator Barbara Mikulski proposed the measure, as part of an auto industry stimulus plan, she said it would save a family $1,553 on a $25,000 car. But that projection might be a little too optimistic. For more information, and some sample savings calculations, see our news item in Straightline.
Meanwhile, car buyers can get unprecedented deals using Edmunds calculators which pull in all the numbers you need to negotiate a great deal. It's also important to review the car's True Market Value price and pay particular attention to incentives and rebates. Finally, a visit to the "Predicted Price Trends" for TMV will show if the car's price is forecast to go up or down.
We don't want to hear anything about black smoke, stinky hands or Grandpa's Oldsmobile breaking down on the side of the Jersey Turnpike. That was diesel 25 years ago. Not considering diesel-powered cars like the sensational 2009 BMW 335d because of the above reasons would be like passing on a Tom Hanks movie because you associate him with Bosom Buddies.
This latest edition of BMW's venerable, top-selling luxury sedan is both civilized and thrilling; explosively powerful and frugally efficient. Provided you don't blanch at a starting price of almost $45,000, the BMW 335d is bound to win you over.
We've been hearing that dealers are trying all kinds of different sales tactics to stay afloat and that this has created wild price swings for car buyers. Earlier this week I told the story of a Denver-area man who drove 2,000 miles to a dealer in Wisconsin and saved $12,000 on a new hybrid SUV.
Now we have the data to back up this anecdotal evidence of price variations. According to the Edmunds.com data department, the difference in pricing on new cars varied by as much as 62 percent from July to December. But that's not all. For 2009 cars the prices varied as much as 34 percent in December and for 2008 models it was an amazing 119 percent.
That means that some buyers paid way too much while others got screamin' deals.
Want a $3,400 tax credit on the 2010 Ford Fusion/Mercury Milan Hybrid that is getting great reviews? Looks like you're going to have to get in line with the early adopters. Green Car Advisor reports that the tax credit will drop to $1,700 on April 1. No, this isn't an April Fool's joke that Ford is playing on the public.
Ford has reached its sales threshold of 60,000 hybrids, and must begin the phase out period for the tax credits. Under the guidelines stated in the Energy Policy Act of 2005 , the allowable tax credit must be reduced by 50 percent for two calendar quarters. After about six months, that credit will reduce by 25 percent, and by next year it will be completely phased out.
You might be thinking: "No big deal, I have about two months to go get one." It's not that simple. The problem is, the cars will not be available until sometime in the spring. "That could be early March, but it could be later," said a Ford spokeswoman quoted in the article.
It's not an impossible situation and there are steps you can take to ensure you are eligible for the full credit. Check out the Green Car Advisor Blog to get the full story.
(The 2009 Chrysler Aspen HEV was only produced for about three months and are now sold at deep discounts.)
We've been saying that you can get great deals on new cars. One Denver area car buyer took our advice to the extreme, saving $12,000 on a "new" $50,000 hybrid.
The father of one of our editors drove his son's 2009 Chrysler Aspen Hybrid at Christmas and decided he'd like one for himself. He started surfing the internet on Autotrader for the best deals and soon found one for sale in a small town in Wisconsin. Over the phone, he made a deal to buy the hybrid for $36,980 including receiving a $4,000 trade-in credit for his 2003 Mercury Sable wagon.
But something struck him as odd. Even though the Aspen had been driven only 20 miles, it was being sold as a certified used car with a slightly reduced warranty. A Carfax report revealed that the hybrids had been purchased by the dealer at an auction rather than ordered from Chrysler for their new car inventory.
Our Editor's father felt confident about proceeding with this deal after talking with the Wisconsin dealer a number of times on the phone. So, he set out in sub-zero weather driving his Mercury. He arrived the next day and the deal went down just as agreed to.
Feeling pleased with himself, he set out to visit another son in Oklahoma. He stopped in a rest area and returned to find that the car wouldn't start. His heart sank. However, after frantic calls to service and roadside assistance, he discovered that, since it was a hybrid, the engine wasn't supposed to fire up. In other words, the car really was "running." Feeling a little foolish, he set off again.
Several hundred miles later, the "Check Engine Light" came on. He scrambled to find service in Des Moines, Iowa, and learned that the problem was minor and it was okay to keep driving it. For the rest of the trip to Oklahoma and back to Denver there were no other issues. However, when he came out the next morning, he found drops of transmission fluid under his Aspen.
Now, nearly three weeks later, all repair issues have been resolved under warranty and our friend loves the car. However, "That first night in a hotel room, when it didn't even have 1,000 miles on it -- talk about buyer's remourse! I thought, 'What have I done?'"
So what's the bottom line on savings? Well, our friend was able to get the whole story once he found the new car invoice for the vehicle he purchased. The MSRP on that hybrid was $48,830, nearly $12,000 higher than what he paid. That saved him a bundle on registration fees too since he only paid tax on $32,000 which was the difference between his new car and his trade-in.
The deal our friend's father got has been the talk of Edmunds. One editor commented, "That's a sweet deal. Once these teething isues have been resolved, the car will probably be bulletproof for years."
We were impressed with the savvy shopping techniques of our editor's father. We asked if his father had always been like that? After a long pause, our editor wryly answered: "My father always has had a knack for going outside the traditional car buying methods."
As the recession deepens, we'll probably be seeing more situations like this. Shoppers wading into these uncertain waters will need a combination of skills to put together the right deal with the right protection. Remember that there are many tools available on Edmunds.com -- and on the web -- to help you get the right car at an awesome price.
In these economically tough times, consumers are looking closely at every cent they spend. So it may seem counter-intuitive to think that you can actually save money by spending it.
But that's the premise behind a recent Edmunds feature story that examines whether car owners can shave a few dollars off of their yearly driving costs by subscribing to a telematics system such as OnStar.
We keep hearing that there is a pent-up demand for cars out there. After all, in recent years, 16 million vehicles were sold, but last year car makers only sold 12 million units in the U.S. That potentially leaves 4 million people out there who have decided to stick with old faithful (or old good-enough-until-we-feel-a-little-more-secure) for now. I know I fall into that category since my husband and I postponed our intention to buy a car last fall.
But what about you? Did you put buying a new car on the back burner in 2008? Are you planning to buy a car --whether new or used -- this year? If so, are you paying cash or looking for financing?
News of the potential Fiat-Chrysler Alliance has set the automotive world aflutter. On the one hand, it must be taken with great apprehension -- there's still much to be done with many questions. But the basic idea of this alliance is certainly solid. Chrysler gains access to Fiat's extensive range of small car platforms, while the Italian automaker gets access to Chrysler's American factories and dealer network -- two pieces that could allow it to get back into the world's most lucrative market.
We're not entirely sure yet which models would be transformed into Chrysler-Dodge products, nor do we know if they would be straight badge-engineering jobs or a more complete working of a platform. We also don't know which Fiat and Alfa Romeo vehicles could make it over here. Again, there are plenty of issues. But here are some possibilities and what each could mean to American car buyers.
(License plate on the '48 Caddy in the Edmunds.com offices in Santa Monica, California.)
The "Strategies for Smart Car Buyer's" blog has been renamed "Edmunds Daily" to reflect a shift in the content we'll be presenting. Don't worry, you'll still get the great blog posts, car shopping advice, road tests and comparison tests. We just wanted to give the blog a name that better reflected what it's become: an assembly of the thoughts and opinions of some of the editors.
"Strategies for Smart Car Buyers" was started as a spinoff of the book by the same name which was a hands-on guide to navigating the car lot. At first, it was just me and "bloggin'" Lee Scott with occasional guest writers. But sometime last year we began assigning more writers to specific days and topics. We also folded in the blog "The Driving Woman" and convinced their best writers to join forces with us.
The resulting blog needed a new name. After a lot of head scratching and brainstorming we came up with the elegantly simple "Edmunds Daily." We've added a tag line that says it all: "News and Advice for Car Shoppers and Owners." Covers just about everything, don't you think?
Soon, I'll be writing again to give you the line-up of who is blogging when and on what subject. We're still kind of moving things around. But you can expect some catchy titles 'n' topics. As always, we welcome your suggestions and feedback.
So look for the new title and header and stay tuned for more improvements to follow.
Philip Reed, Edmunds.com Senior Consumer Advice Editor
Anyone with a platelet's worth of enthusiast blood running through their veins knows what a Mitsubishi Lancer Evolution is. Sporting blistered fenders, hyperactive turbocharged engine and all-wheel drive, the "Evo" has fans as rabid as those of the Jonas Brothers. It's certainly a cool car and a stout rival to Subaru's equally popular STI.
But not everyone can afford the $35,000-plus needed to purchase a street-tamed rally car. For them, Subaru's WRX has been the lone budget buy. Not any longer. The 2009 Mitsubishi Lancer Ralliart makes this a tight, two-horse race -- one so close it arguably comes down to tire selection.
You only have to look at an example like the AMC Gremlin (better make it a quick look, lest you nuke your retinas) to know that hatchbacks have come a long way. Back in the day, "cheap hatchback" was just a gentle euphemism for "blighted, God-forsaken deathtrap," but my, how things have changed. If you were to round up today's most affordable hatches, you'd find a few bona fide stars that offer more than just soup-kitchen prices.
One such star is the Honda Fit, which holds the distinction of being a budget-priced car that's genuinely fun to drive. Then there's the Scion xB, which shines as a supremely practical choice, thanks to its incredibly roomy interior.
You can check out the rest of this year's most attractively priced offerings in our Top 10 Least Expensive Hatchbacks and Wagons for 2009. Of course, the list also includes a few forgettables. (The less said about the Chevy Aveo 5/Pontiac G3 twins, for example, the better.) Get the scoop on each of these cars by researching them via our model reviews.
What's your favorite budget-priced hatchback? Warren Clarke, Automotive Content Editor
The National Automotive Dealer Association's chief economist is predicting 12.7 million new vehicles will be sold in 2009, along with the assumption that the economy will begin to recover in the second half of the year. I am not sure if this is a case of a delusional self-fulfilling prophecy or if NADA is trying to give its dealers some (false) hope, but I don't quite buy the prediction.
For the last three months of 2008, the Seasonally Adjusted Annualized Sales Rate (SAAR) was under 11 million vehicles. Predictions for January's SAAR are also below 11 million vehicles. As I have stated before, until people are not afraid of losing their jobs and/or their homes, car sales will continue to suffer.
Everything I have read seems to indicate that it will take the better part of the rest of the year for jobs and housing to stabilize, even with an effective economic stimulus package from the governement. One economic study group, the Conference Board, sees the US in an "Intense Recession" through at least the spring and unemployment reaching close to 10%. "As we move into the New Year, the big question is whether conditions will worsen further," said the research group's economist Ken Goldstein in a statement on Monday. "The Conference Board's indicators suggest we'll still be in an intense recession through the spring."
If that is the case, we could see the SAAR remain below 11 million vehicles for the first half of this year. Even after we see a recovery, this recession will likely leave emotional scars on the public, and it may be some time before consumer confidence returns to some semblance of normalcy.
Having said that, if you feel comfortable with your own personal finances and job situation, now really is a great time to be buying just about anything, from clothes to cars. While irresponsible consumer spending helped to contribute to the mess that is currently impacting the lives of so many Americans, some responsible spending might be just the spark that will help light our path to the end of this dark economic tunnel.
(With dealerships closing, this electronic billboard has slides not being used to advertise to freeway drivers in Southern California.)
I hope you'd never do this.
A dealer last week told me that consumers are smelling blood and demanding ridiculously low prices for the cars they want to buy.
"They come in and say, 'Look, I know you dealers are hurting,'" one internet salewoman told me. "So they expect you to take a $5,000 loser on this car." She looked at me, her expression seeming to say, "Can you believe it?" She continued, "I mean, that's not right. Product is still product and it has value, even in a bad economy."
I heard of a similar thing happening at Circuit City stores. When it was announced the chain was closing, consumers flocked to the bargains like vultures, rudely demanding that the salespeople give them even deeper discounts. I don't know about you, but that doesn't seem right to me.
Yes, car dealers are a favorite target for angry consumers. And, yes, there are deals to be had in this marketplace. But remember to get your deal the right way. Stick to the facts by consulting True Market Value (and while you're there, check out our new TMV tutorial). It's essential that you also review the incentives page which is updated frequently to reflect changes in the market. For an overview of recent incentives see this recent blog post. And finally, make sure you use our new "Search New Car Listings" feature which is on the home page just below the new car box.
It's a great feeling to get a good deal on a car. But I feel that it's also important to feel good about the way you do business. Let your research get you your best deal, not a predatory attitude.
Evaluated on its own merits, the Australian-made 2009 Pontiac G8 GXP is a dream come true for driving enthusiasts who need four doors. Rear-wheel drive? Check. Corvette-derived LS3 V8 power and a sport-tuned suspension? Oh, you betcha. Snick-snick manual transmission? Check the $695 option box, and it's yours. As for the rest of the family, the G8 GXP has one of the most accommodating backseats this side of a Maybach -- and at around $40,000, it's far easier on the wallet than many of its performance peers. Trouble is ...
Incentives on new vehicles -- even ones that used to command sticker price and above -- are getting to crazy levels. Why? Dealer lots are still full of new 2008 vehicles that aren't moving (not that the '09s are moving so well, either). In fact, on average, 39% of the cars in lots in December 2008 were that year's models, compared with only 19% for 2007.
The average "days to turn (DTT)" -- the number of days from when a dealer receives a car to when it drives off the lot -- is at a record 86 days for the industry overall. Here's the December DTT for the Big 6. (All names include their subsidiaries except for Ford's Mazda.)
Chrysler Group 124 GM 99 Ford 88 Nissan 83 Honda 59 Toyota 58
Of the above, GM, Nissan, Honda and Toyota are at all-time highs. Toyotas that used to be sold before they even came into the showroom are now sitting on the lot for two months!
What this means to consumers is deals galore. In an unusual reversal of the general rule, it may even be a better deal to get a new car (with incentives on it) than a late-model used car. But the deals aren't limited to '08s; there are some great deals on '09s as well.
With most of the country experiencing some of the worst weather that winter has to offer, it is not surprising that Mazda has put some incentives on the MX-5 (nee Miata). Snow and ice does not make for convertible weather! So to help melt your heart, through February 2nd, you can get $2000 customer cash on both the soft-top and power retractable hard top 2008 MX-5. Â That, plus some healthy discounts (at least on the soft-top) should make the idea of driving a convertible in January a bit more palatable.
The used market is also a great place to pick up a deal on a Miata this time of year. Â You often find late model Miata's for sale, often with low miles, as owners discover they are not quite as versatile as they had hoped. The cold and snow make owners that much more anxious to sell.
I used to own a '99 10th Anniversary Edition Miata, and it was the most fun car to drive that I have ever owned. It even eclipsed the fun I had in my old 12-second '84 Camaro Z/28. However, it didn't make for a very good commuter car, especially having to drive with the top up in 90+ degree Florida summers.
And anyone who says the Miata, I mean MX-5 (it will always be a Miata to me), is a chick car has clearly never driven one. If I had the money and space for a third, fun-car, the Miata would be at the top of the list. For the latest incentives and rebates, click here. You can also click here to see more monthly deals.
(Corona Nissan Internet Director Linda Webber listens as new carbuying tool is presented.)
When I first heard about Edmunds' new car inventory tool I was so blown away I asked to be involved as it was rolled out into the marketplace. For years I've been shopping for hard-to-find cars for our long term testing fleet by calling one dealership after the next, all the time thinking, "If there was just some way to search the entire inventory of the local car lots." Well, that time has arrived.
Little did I know that Edmunds executives would take me up on my offer to help introduce what we call our New Car Inventory tool (NCI, for short). Recently, I spent an eye-opening two days in car dealerships in the Riverside-Corona area talking to dealership owners about our new tool, the state of the economy and the fine art of selling cars in tough times.
Day 1: Sales Training
It's 8 a.m. and I'm in a downtown Los Angeles hotel surrounded by several dozen Autotrader.com (www.autotrader.com) sales representatives.
We car guys love 0-60 times. We can tell you a BMW 335i does it in 5 seconds or a Nissan GT-R in 3.3 seconds (with launch control and roll-out). When a car comes back from our test track, the first question you'll hear is "what was its 0-60?" I don't recall anyone saying, "hey Mike, what was the Mustang's braking distance?" But you know, maybe we should.
If you're buying a new car, you've probably invested lots of time and effort trying to make sure you get the best deal possible. You've compared TMV numbers. You've ferreted out the latest incentives and rebates.
We hate to hit you with yet another item to ponder, but how much thought have you given to car insurance? Taking the time to consider potential insurance costs before you buy can help you choose a vehicle that truly fits your budget.
Car shoppers aren't the only ones who can benefit from taking another look at their insurance -- there are things you can do to lighten the insurance bill on vehicles you already own. For example, if you own a ride that's a bit long in the tooth, you may be better off relinquishing collision and/or comprehensive coverage.
Is there a chance that Fiat cars, long absent from the American market, could soon be back in our dealerships? Well, they moved one step closer to that when Fiat agreed to join forces with ailing Chrysler (and its majority owner Cerberus) to help it find a new way to move forward.
No, it's not a buyout and Fiat will not be giving Chrysler any money. Instead, it's what's being called a "global strategic alliance." This means that that Fiat will take an initial 35 percent equity interest in Chrysler in exchange for providing competitive, fuel-efficient vehicle platforms, powertrains and components to be produced at Chrysler manufacturing sites.
There's no question that this could breathe new life into the struggling U.S. automaker, especially when gas prices shoot back up again. But it also provides a dealership structure for Fiat to introduce its cars into America.
For more details about this historic announcement, please read our more comprehensive article by Michelle Krebs in Auto Observer. For some thoughts on how this will help Chrysler build fuel efficient cars or even diesels, read John O'Dell's story in Green Car Advisor.
Thanks to a loan from the government, to the tune of $1.5 Billion, Chrysler Financial is now offering 0% financing (for up to 60 months) on 11 Chrysler, Dodge and Jeep vehicles. Included in the program are Chrysler Town & Country, 300 and 300C, Jeep Grand Cherokee, Commander, Wrangler, Dodge Grand Caravan, Charger, Magnum, Challenger, Ram Pickup and Ram Heavy Duty. Customers need not have perfect credit to get the 0% rate either, with the minimum credit score being 620, instead of the 700+ that had been the requirement.
Of course, 0% financing does nothing to help consumers who are still afraid of losing their jobs, homes or both. Even with Toyota's [annoying] "Saved By Zero" campaign, sales still dropped nearly 37% in December. So it is clear that cheap financing alone will not be enough to save Chrysler.
That uncertainty in the future of the weakest of the domestic auto manufacturers has resulted in my advising, anyone who asks me, to avoid Chrysler products. I just can't see recommending their vehicles when there is no guarantee that the company will still be around by the time the loan is paid off. This is especially true when there are so many other more competitive products out there from other manufacturers. Sure, if Chrysler is sold off or liquidated, Jeep will likely survive in some form, but Dodge and Chrysler products are a big question mark. Yes, that is just my opinion.
For the latest incentives and rebates, click here.
Welcome to FAQ Fridays, a new weekly blog feature that answers some of the most frequently asked questions Edmunds readers send in.
First up: Folks want to know why the prices, specs or options on Edmunds might be different from what they see on other automotive sites. Good question! There are several reasons why this might happen, and we'll outline them here. Destination Charges and Other Fees: On our site, we always make it clear when destination charges or other fees are included in a vehicle's price, but to determine this elsewhere you may need to examine the pricing details or window sticker closely.
Vehicle Styles: Most vehicles are available in many different styles, and sometimes this leads to confusion when making comparisons. Styles listed on our site include the vehicle's trim, number of doors, body type, drive type, engine and transmission. For example, here's a style currently available for the 2009 Honda Pilot: EX-L 4dr SUV AWD (3.5L 6cyl 5A).
Sometimes a style contains a Special Identifier (SI) when a manufacturer wants to specify a unique feature. For example, rear entertainment is the SI on the following style of the 2009 Honda Pilot: EX-L 4dr SUV w/Rear Entertainment AWD (3.5L 6cyl 5A).
The 2009 Mercedes-Benz SLK55 AMG is a car I really didn't expect to like. Honestly, I'm still not completely sold on it, for one reason -- it's saddled with a conventional automatic that's simply not up to the task, serving up lame throttle-blip-less downshifts and generally sluggish responses to driver commands. But otherwise, whoo, pig sooey! This car turned out to be a total hoot. Here's three reasons why.
Last summer, gas prices shot to record levels at a rapid rate. Buyer's panicked and snapped up every fuel efficient vehicle they could find. Fuel sipping hybrids were more in demand than front row seats to the Presidential Inaugural. Consumers were happily paying thousands of dollars over MSRP for any hybrid car or small hybrid CUV. Fast forward to the here and now. Gas prices have dropped by more than half, people are buying trucks again and the once high-flying hybrid sales have crashed. Not only can you deal on them, but now you can get a deal.
There's a lot of rhetoric going around these days about why the Big 3 find themselves in their current quagmire. The conventional (lack-of) wisdom seems to be that they failed to make fuel efficient vehicles, which is often synonymously dubbed "vehicles people want to buy." At the same time, every manufacturer is touting how green and fuel efficient its vehicles are, most often citing the misleading highway EPA number as fuel efficiency gospel. The result is an atmosphere of half-truths, falacies and misrepresentation -- which is no surprise given that Madison Avenue and the United States Congress are involved.
Part of the problem is the source: manufacturers spinning facts to sell cars. We all expect that. But another issue is people who don't know what the hell they are talking about being thrust into the automotive world all of a sudden: the United States Congress and general interest TV anchors/reporters who wouldn't know a Chevelle from a Chevette. These are the folks who often take manufacturer spin and puke it back out without looking closely at the fine print. Spin like this.
Last week, Honda rolled out their incentive and rebate programs for January. Curiously absent were any special finance programs. Instead, Honda seems to be promoting leases with lease and dealer cash on most models. I am not sure why they have taken this route at the same time most other brands are offering subvented finance rates as low as 0%. However, Honda has always been a brand that "does it their way," and I am sure they have their reasons.
Consumers looking to buy a Honda this month should be aware of this and should not expect any fantastic financing offers like they might be seeing at Toyota, Ford or other manufacturers. For a list of all current incentives and rebates, click here.
The 2009 International Car of the Year Awards (ICOTY) were announced last night at the 13th annual black-tie ceremony held at the MGM Grand Detroit. The event was attended by more than 600 industry leaders and media members on the eve of press week for the North American Auto Show.
Hosted by Edmunds.com Editorial Director Kevin Smith, and Road & Travel Magazine Editor-in-Chief Courtney Caldwell, ICOTY presented the International Car of the Year and International Truck of the Year awards. The ICOTY jury, made up of 16 nationally-renowned automotive journalists, selected the 2009 vehicles as the best for the new model year with final ballots tabulated by J.D. Power and Associates to ensure accuracy and credibility.
The ICOTY Awards honor new model vehicles that reflect lifestyle compatibility and how well automakers achieve that goal through the design and marketing of the vehicle.
And now, this year's winners. For International Car of the Year, the award goes to the Nissan GT-R. The award for International Truck of the Year goes to the Dodge Ram 1500. For more information about the event, and additional awards, please follow this link.
We can guess what some of you are thinking: "Look at that! Honda went and built a Prius!"
Not necessarily. Honda's Insight hybrid actually came to these shores before the Toyota Prius. It even had the high rear hatch with the vertical peek-a-boo glass panel between the taillights from Day One. That no one remembers this is due to the fact that the original Insight was a weird-looking 2-seater that was impractical for the masses. Honda sold only 18,000 of them worldwide over a 6-year run.
Understandably, Honda wanted its new Insight to have broad-based appeal. They wanted to build a hybrid that didn't harbor any eccentricities. And they wanted to sell some 90,000 of them per year. To do this they had to morph the Insight into a 4-door, 5-passenger machine. The 2010 Honda Insight you see above is the result. But comparisons to the Toyota Prius are inevitable. How would this new Insight measure-up to the current king-of-the-hill? We recently pitted the two against each other to find out.
Final pricing for the 2010 Honda Insight won't be released until we get closer to the April 22, 2009 on-sale date, but an Insight is expected to go for several thousand less than a comparably-equipped 2009 Toyota Prius. In this case, the desire to compare on an equivalent equipment basis means we've matched the top-level 2010 Honda Insight EX Navi against a 2009 Toyota Prius with package #5 -- loaded, but without leather seats.
We put these cars head-to-head at our test track, compared them back-to-back on the road and ran them nose-to-tail through the same 197-mile fuel economy test loop. Then we poked, prodded and evaluated them side-by-side using our 27-point evaluation sheet. And yes, we also factored-in the expected price difference. After crunching all of that data, which of these dedicated hybrids do you suppose came out on top?
The 2009 Infiniti G37 Journey sedan features a pumped-up 328-horsepower V6 and Infiniti's new seven-speed automatic transmission. Our test car had the Sport Package, which adds the G37 coupe's quicker steering ratio and other performance-minded mods. Curiosity piqued? Check out our comprehensive Edmunds Test Drive of the new G37, and then come back and tell us what you think.
3. Sounds like a Scion. No, really, it does. The 2.0T starts around $33 grand, and it drones like an econobox under hard acceleration (here's our man Kavanagh on why the VW GTI's similar engine sounds much better). There's some steering-wheel vibration at full throttle, too. This is the engine that Audi's sending up against the likes of the BMW 328i's velvety inline-6 and the Mercedes-Benz C300's confident V6?
2. Transmission trickery. Our test car was a 2009 Audi 2.0T Quattro. It weighed in at 3,770 pounds. It generates 211 hp and 258 lb-ft of torque. It did zero to 60 mph in 6.5 seconds. Yes, the 2.0T is signficantly torquier this year, but something's fishy here. The 230-hp, 3,424-lb BMW 328i did the same feat in 6.4 seconds; shoot, so did the 265-hp, 3,835-lb Audi A5, which shares the A4's platform. And no, our 2.0T wasn't a ringer -- our long-term A4 Avant weighs even more and did the deed a tenth of a second quicker.
Here's part of what's going on: Audi has slipped a drag-strip mode into the transmission that activates only when you turn stability control off and brake-torque the A4 off the line (as far as I can tell; the owner's manual doesn't mention it). What does it do? It changes the upshift point from about 6,300 rpm to 5,800 rpm, presumably to keep the turbo spooled up, and the upshifts get really fast and really harsh. Result? We automotive journalists get better numbers -- belief-beggaring numbers, really, given the power-to-weight ratio -- and you owners won't be able to tax your drivetrain under ordinary circumstances with this high-stress procedure.
That's a little too sneaky for my taste. If there's a high-performance shift program, I want to be able to access it anytime. Audi should give owners a button so they can activate that mode at will; otherwise, it just produces eye-catching but somewhat misleading acceleration numbers for automotive publications. Which I hope wasn't the intent.
1. Not enough juice -- 2.0T or 3.2. This is arguably the A4's Achilles' heel: The 2.0T obviously doesn't have the oats to go toe-to-toe with the 335i/d, G37, C350, IS350 or CTS DI, and the uplevel A4 3.2, which competes with these models on price, is actually slower than the 2.0T at legal speeds. Audi makes a wonderful V8 (see S5, RS4, R8), and maybe the new supercharged six will be cool, but the two currently-available A4 engines are behind the curve. I told Santa I wanted no part of that.
This is the first installation of my weekly highlighting of deals and offers that I see as beneficial to you, the consumer. If I see a particularly large amount of cash incentives, a super low lease or finance rate or an incentives trend, I will make note of it here. Today I would like to highlight a deal on a crossover utility vehicle (CUV).
While it may not be at the top of anyone's shopping list, the Subaru Tribeca is certainly worth a second look. The Tribeca offers some unique styling, good road manners, lots of features and amenities, better than average reliability and resale value and a flexible seating arrangement. In addition, and why it makes my list this week, is the fact that there is as much as $4000 dealer cash on MY08 models and $1000 on MY09 vehicles, along with a TMV price that is at or below invoice price. MY08 models also have 0% financing for as long as 63 months. I like the Tribeca, and these offers make it that much more attractive.
One thing to keep in mind that the cash available on the Tribeca is dealer cash, and not customer cash. This means that the dealer can use the cash in any manner they see fit, passing it along to the consumer at their discretion. However, my experience has been that most dealers will indeed pass the cash along to the customer as a way to lower the final selling price.
While most agree that you should buy the vehicle, and not the deal, sometimes the deal can make the vehicle that much more appealing. Tune in next Thursday for another highlighted deal of the week.
I recently spoke with some friends who are about to have their third child. They're shopping for a new car that can accommodate the seating requirements of a newborn, a 2-year-old and a 6-year-old to prepare for the new arrival and asked me what I'd recommend. I was all ready to start singing my Honda Odyssey/Toyota Sienna/Hyundai Entourage love song, when the wife blurted out, "No minivans." Seems that, as the youngest of seven children, my friend had her fill of boxy peoplemovers as a passenger and a teen driver in the 1980s and had made a solemn vow to herself never again with the minivan. OK, so no minivans. After I stifled my sob and put aside my own minivan-fan feelings (though I don't share her aversion, I can respect it), I suggested the Chevrolet Traverse (pictured above, courtesy of General Motors) or one of its corporate siblings, all excellent and relatively affordable large crossovers. I also recommended the Hyundai Veracruz, a stylish but reasonably priced three-row crossover with a luxury-quality interior.
The jury's still out on what they're going to buy, but if you're considering buying a new car in the short term (and there are lots of great reasons to buy now, if the time is right for you) and you're not sure what vehicles to look at, check out our Buying Guides for a list of recommended models in the segment you're interested in, and then read a great overview of each vehicle on our newly redesigned model reviews page. I won't even mind if you totally ignore the minivan recommendations. Really, I'm fine with it.
"Critics of the 2009 Acura TL and its, um, interesting styling should recall 1889. That's the year Parisians and artistic experts were aghast at a hideous mass of steel and rivets rising over their city of lights -- a "black blot" it was called. They took solace in the fact that after 20 years, it lease would end and it would be dismantled. Well, the Eiffel Tower still stands 119 years later and most consider it rightly beautiful ..."
(Find the small link reading "View Inventory" and click on it for car buying satisfaction.)
When I was a car salesman, I was instructed to always "sell from stock." This meant that if someone came onto the car lot looking for a black pickup truck, and all we had was a white minivan, I was to use my sales skills to convince them that they really didn't want a black truck but would be more happy, attractive and successful in white minivan.
Now that I'm not a car salesman anymore, I can level with you. Finding the car you want -- the right color, configuration and trim level -- is now easier than it's ever been before. It's available on Edmunds.com. And it's free.
You will be hearing more about this later, but for now, trust me -- this is a revolutionary step forward for car buyers.
Here's how you used to have to search for the car you want: call each dealership in your area and wade through countless conversations with eager salesmen who keep assuring you that, yes, yes, yes, that the very car you want is "on our lot right now!" When you arrive you are told it was just sold or is out on a very long test drive.
Here's what you do now: put in your zip code and click on "View Inventory." When you do that, this is what you see:
One obvious reason for slow car sales is that consumers are afraid they will lose their job and default on their auto loan. Hyundai wants you to know they understand that and they're cool with it.
Under the "Hyundai Assurance Program" you can turn your car back in and walk away from your loan if... Well, it's a pretty big "IF" and there is a lot of small print. But the new program is probably going to spawn a host of imitators as automakers struggle to overcome the objections of on-the-fence car buyers in a slow economy.
The Assurance Program is offered free with every new vehicle sold by Hyundai and it lasts for the first year of ownership, either for sales or for leases.
Hyundai achieved a higher level of acceptance once it offered it's 10-year, 100,000 mile warranty some ten years ago. Now it hopes to overcome the fears of consumers in an economy that is fraught with job insecurity.
These are hard times for America's auto dealers. Last year saw the double hit of high gas prices followed by the credit crunch. But at the end of the year was a ray of hope: the long-awaited bailout in the form of bridge loans to GM and Chrysler.
At Edmunds we are often asked for our opinion about the auto industry and, naturally, we were asked whether we thought the bailout was a good thing and if it would work. We thought this historic event deserved a careful response. The editors discussed the issue and drafted the following statement. Please read it and share with us any thoughts you have on this subject.
Drive America Forward
Edmunds.com would generally not be in favor of government intervention in the free market, but our economy is in a precarious position. Because of the financial industry collapse, car sales were down more than 30 percent in the last four months of 2008. Car sales contribute critical tax dollars to the economy, and experts say that for every automotive job in the country, between five and ten other jobs (at restaurants, office supply shops and other related businesses) are affected.
The current climate is such that no carmaker, foreign or domestic, can thrive. Car companies known for their recent success are also reeling from the crisis: BMW sales dropped over 25 percent in November, Toyota announced that it will not be profitable in 2008, and in a move to shore up its core business, Honda has withdrawn from Formula One racing. Although this government funding in the form of bridge loans is not ideal, we believe it is a necessary first step out of the current situation and essential for the health of the national and global economy.
The government loans are only part of a solution to a problem that is not entirely financial, as consumer confidence must also be addressed. For a meaningful and long term rebuilding of the car industry to take place, these loans need to be paired with a stimulus package that will convince Americans to begin buying cars at a sustainable level. Without this second step - in the form of federal tax credits or other incentives - the bridge loans by themselves will not address a major aspect of the crisis.
Another front that must be addressed is the availability of credit. While lenders assert that money is currently available to car buyers, only those with the most exceptional credit ratings are finding easy financing deals. Restrictive credit requirements continue to shut-out many consumers, and the current credit process needs to be restructured so that Americans with good credit can more easily obtain car loans.
Fluctuating fuel prices wreak havoc on manufacturer's product planning since consumer preferences change drastically with the cost of fuel, despite talk of environmental responsibility and interest in alternative fuel technology. We believe that the new administration in Washington should move quickly to set a clear energy policy that stabilizes gas prices at a level which encourages the purchase of fuel efficient cars.
Ideally, this increased consumer cost would be offset by a decrease in a different tax, so that out-of-pocket spending remains constant, even as behaviors change. Also, legislation should be modified to stop penalizing diesel fuel vehicles, which in their latest iterations, are both exceptionally clean and fuel efficient.
Automotive consumers need a stable environment that allows them to make savvy long-term buying decisions with readily available financing options. Only with a sensible stimulus package can the auto industry recover and drive America forward.
As part of its drive to improve fuel efficiency, Hyundai has developed its own 6-speed automatic transmission for use in its lineup of cars and SUVs.
The upcoming 6-speed transmission is 25 pounds lighter than the 5-speed that's currently used. It's expected that the transmission's extra gear range will enable engines to run in the most efficent mode more often, ultimately serving to improve fuel economy by up to 12 percent. With the new transmission, Hyundai joins Toyota, General Motors and Ford as the only carmakers to have proprietary 6-speeds for front-wheel drive vehicles.
Hyundai's new transmission will eventually be featured in 16 models, including the redesigned 2010 Santa Fe, which will debut in showrooms toward the end of the year. We've long been impressed with the carmaker's adeptness at providing sterling value-oriented choices (check out our model reviews of current Hyundai vehicles here). This latest development will only make its lineup more appealing.
This, friends, is the 335d, BMW's new diesel-fueled 3 Series sedan. It starts at $43,900, which is about $2,500 more than a comparably equipped 335i. Pound for pound and dollar for dollar, the petrol-powered 335i is one of the finest automobiles on the planet. But the 335d is even better, and here's why.
(Classic Motors' car lot in Richfield, Utah, lies under a blanket of snow at year's end.)
I was passing through Richfield, Utah, last week and we stayed in a motel across the street from a dealership selling Chrysler, Jeep, Dodge and Chevrolet. Initially, I noticed the interesting mural on the wall alongside the car lot, but as I gazed at the rows of cars I began to think of the people who worked there, the owner and then the state of the business in general.
It was a bitter cold night and my mind was filled with gloomy thoughts about the collapse of the car industry, financial problems and plummeting sales. But when I woke up the next morning I decided it was unfair of me to put my own negative judgment on this dealership. Perhaps they were coping better than I knew.
After an excellent breakfast in the Little Wonder Cafe on Richfield's Main Street, where many of the locals hang out, I asked my waitress who was the owner of Classic Motors. She told me it was Joe Betar. I emailed him through the dealership's website and waited for a response.
Thanks to a recent infusion of funds from the TARP and the Fed, GM today announced new reduced financing with rates as low as 0% APR for up to 60 months on select new cars and trucks. The reduced rate financing is available to qualified buyers today through January 5, 2009 on many 2008 and some 2009 vehicles (see list below). In addition, many of the vehicles listed below have stackable bonus cash and/or dealer cash ranging from $500 to $4,250. This means that the financing can be used along with bonus cash.
Just as important, GMAC has lowered the credit score requirement for buyers to qualify for these reduced rates. A credit score of 700 had previously been required for a buyer to qualify with GMAC. Now, that threshold has been lowered to 621, allowing an estimated 75% of additional buyers to qualify for the loans.
"We're very excited to offer this reduced rate financing through GMAC to encourage our customers to get back into the game," said Mark LaNeve, vice president, GM North America Vehicle Sales, Service and Marketing. "This enables even more qualified customers to finance through GMAC at their local GM dealership, and provides additional financing capacity with conventional and reduced rate APRs for our dealers to make sales. With GM's Financing That Fits, and the Red Tag Sale now underway that offers supplier pricing, customers have an opportunity to get a variety of extremely attractive offers through the end of the year."
2008 Model Year Vehicles:
0% APR for up to 60 months on '08 Chevrolet TrailBlazer; GMC Envoy; and Saab 9-3, 9-5, 9-7X
0.9% APR for up to 60 months on '08 Buick Lucerne
1.9% APR for up to 60 months on '08 GMC Yukon and Yukon XL; Chevrolet Tahoe, Suburban and Avalanche; Cadillac CTS, SRX, Escalade, DTS, STS and XLR 2.9% APR for up to 60 months on '08 Buick Lacrosse; HUMMER H2 and H3
3.9% APR for up to 60 months on '08 Chevrolet Equinox, Colorado Ext and Crew cab and Light Duty Silverado; Pontiac Torrent; GMC Canyon Ext and Crew cab, and Light Duty Sierra
4.9% APR for up to 60 months on '08 Saturn Astra and Sky; Pontiac Solstice; Chevrolet Corvette and Heavy Duty Silverado; and Heavy Duty GMC Sierra
2009 Model Year Vehicles:
3.9% APR for up to 60 months on '09 Chevrolet Cobalt; Pontiac G5; and Cadillac CTS
4.9% APR for up to 60 months on '09 Pontiac G6; Chevrolet Malibu, Light Duty Silverado and HHR; Saturn Aura; and Light Duty GMC Sierra
5.9% APR for up to 60 months on '09 Chevrolet Avalanche and Heavy Duty Silverado; and Heavy Duty GMC Sierra
Check out the current incentives and rebates available on GM, and all other vehicles here.
Ford recently announced that they would offer a backup camera on 75% of their vehicles by the end of 2009. I am a big fan of rear view cameras, and I consider them a must-have safety feature.
Until recently, most consumers could only get them as part of a pricey navigation system, with the camera using the screen of the navigation system to display the rear camera's image. That is now changing as we are seeing more vehicles with integrated information screens in the dash and the expanded availability of screens built into the rear view mirror, like what Ford is offering. These types of installations, which don't require expensive optional navigations systems, reduce the cost of this invaluable safety feature down to as little as a few hundred dollars.
Consumer Reports did a very revealing study showing that even a typical car (never mind an SUV or pickup truck) has a sizeable rear blind spot, which only a camera can eliminate. I am glad to see the more car buyers will be able to benefit from this safety feature.
Even with uncertain economic times and crazily fluctuating gas prices, we're going to bet that the crossover SUV is here to stay. They now come in all shapes and sizes, while seating between five and eight passengers. This test concerns the five-passenger midsize group, the one that effectively replaces those truck-based models from the 1990s that launched the SUV craze. These are the bread-and-butter crossovers, but amongst 2009 Nissan Murano, 2009 Toyota Venza V6 and 2009 Ford Edge which one excels in the most areas?
Each vehicle was similarly priced and equipped. The Murano was all-wheel-drive, while the other two were front drivers. We ran each crossover through our usual gamut of testing and utilized the same comparison scoring system as Inside Line, with the exception of final score weighting, which we adjusted to reflect a more consumer-oriented perspective.
Ford's 2010 Fusion Hybrid was heavily spotlighted by the manufacturer at the recent Los Angeles Auto Show, and with good reason: The frugal hybrid offers the sort of fuel economy that's likely to command the attention of buyers hoping to save at the pump.
The official EPA ratings are now in, and they cast this Fusion in a very favorable light. The car has ratings of 41 miles per gallon in the city and 36 mpg on the highway. This makes it the most fuel-efficient midsize car available in the U.S. market -- a title previously held by the Toyota Camry Hybrid.
According to Ford, the Fusion Hybrid can travel for more than 700 miles on a single tank of gas. Official pricing is not yet available, but it's expected that the car will cost about $25,000 once the applicable federal tax credit has been factored in.
Imagine that you have a rich car fanatic relative, someone like Jay Leno, who says he'll get you six cars of your choice for Christmas. The stipulations are that three must be new and that of the six, three are domestic and three are foreign.
Of course, my list will probably change right after I post this blog..."Shoot, I forgot about the ____". But nonetheless, these would be (for the moment) my six picks...
David Kiley, of BusinessWeek'sAuto Beat, has written a fantastic article that helps to push back many of the mistaken notions, ideas and generalizations much of the buying public has regarding the domestic auto makers. I have paraphrased the ten things the taxpayer should know about the U.S. auto industry, read them after the jump.
You hear a lot about the struggling U.S. auto companies. But what about the poor guys selling cars? What kind of a Christmas are they looking forward to?
Well, obviously, they aren't too busy right now. So I imagined it was a car salesman who took the time to adapt the classic, "Night Before Christmas" and post it in our forums.
Here's a taste of it... And then you can follow the link to read the whole thing.
The salesmen were nestled all snug in their sheds While visions of customers danced in their heads. And dealer in his plaid jacket and I in my cap, Had just settled down for a long winter's chat.
When out on the lot there arose such a clatter, I sprang from my chair to see what was the matter. Away to the glass doors I flew like a flash, Peered outside and hoped for some cash.
In the past seven-plus years in California, I've probably activated windshield wipers about 12 times. In the past two days, I've twenty-tupled that.
See, I'm driving a 2009 Ford Escape XLT 2.5 4WD up in Toronto this week where it dumped a whole heap of snow on Friday with sporadic flurries ever since. Thankfully, the Greater Toronto Area is superb at clearing streets by salting the living crap out of them, but that also means your car is constantly hit with a fine mist of salty gunk.
I've rediscovered this makes your windshield wipers, the windshield washers and the stalk that operates them both a pretty clutch automotive feature. Sadly, I've been unimpressed with the Escape. Like every recent Ford I've driven, the windshield wipers are operated via the turn signal stalk. Turn the end for the various speeds, turn an inner ring for the rear wiper and push the end for spray. It would be much better for the stalk to be on the right like so many automakers utilize. In those other vehicles, you can usually push up or down on the stalk for a single wipe (something I've needed quite frequently). If you do that in the Escape, you signal that you're turning. Instead, you must turn the stalk on then off.
However, the Escape's real problem is the washer pattern. It wipes immediately three times, which successfully does the job. Then three seconds later, it randomly wipes again, smearing the windshield and the first blast of salty gunk that's sprayed up from the road. I then have to wash it again to get rid of the smear. Fail.
This certainly showed me an area where we California-based Edmunds editors leave our readers out in the cold. Perhaps we need to set-up up a salty gunk wet skidpad at our test track. I'll stick that in the suggestion box.
It was bound to happen; Subaru could only have a lock on the affordable repli-Rally car segment for so long. We're talking about the Impreza WRX. Sure, Mitsubishi offers the Lancer Evolution, but that's more a rival to Suby's pumped-up WRX, the STI. An STI or Evo is great if you've got $35- to $40 thousand to spend, but until now, those enthusiasts looking for turbocharged, all-wheel-drive kicks for $25- to $30 grand were limited to but one choice, the WRX. But now there's also the Mitsubishi Lancer Ralliart.
Last year, Subaru redesigned, and sadly, dumbed-down the WRX. The gripes came fast and furious. Our staff vocalized its share on the tepid styling -- "The WRX has lost its personality", as well as the softened suspension -- "Is this a standard Impreza or a WRX?". Subaru listened, so for 2009 the WRX comes with firmer suspension calibrations and more power (always nice). The styling still doesn't do it for us. The Ralliart, like the WRX has all-wheel drive and a turbo engine, but where the WRX comes only with a five-speed manual transmission, the Ralliart is equipped with a six-speed automated (dual) clutch manual.
So we (Associate Editor Mark Takahashi and I) commuted with them, took turns thrashing 'em back-to-back on our test loop (which includes twisty canyon roads as well as a freeway cruise), took notes and came to a unanimous decision (okay, so there was just two of us...) about which one we'd take.
Toyota plans to move in an even more environmentally conscious direction in the years ahead by increasing the use of plant-based "green" plastics in its vehicle interiors. The advantage offered by these materials is that they emit less global-warming carbon dioxide than traditional petroleum-based plastics during a product's life cycle. They also serve to reduce petroleum use.
Look for the redesigned 2010 Toyota Prius to feature a generous serving of these environmentally friendly bioplastics.
Ray LaHood, a recently retired Congressman from Illinois, has been tapped by President Elect Obama to be the new transportation secretary and will oversee a wide range of issues from fuel economy matters to auto safety to the national highway system.
While the speedy appointment of LaHood shows the decisiveness of the new administration, John O'Dell, editor of our Green Car Advisor, calls LaHood a "cipher" on these key transporation issues. The appointment might have been an attempt by Obama to make good on promises to reach across the aisle by appointing LaHood a Republican.
O'Dell writes: "LaHood, 63 (left), has little transportation record beyond his support for Amtrak, the national passenger train program, and his apparently friendly relationship with the Teamsters Union and other transportation unions, which endorsed and financially supported him during his congressional career. The national Teamseters Union also has endorsed his nomination as Transportation Secretary."
Check out our coverage of LaHood's appointment by reading the whole story in Edmunds' Green Advisor.
Americans have stopped buying cars and who can blame them?
With the stock market crashing and dire predictions of Detroit's bankruptcy, people are just not in the mood. But in all the thunderclouds of verbiage coming out of Washington along with the recently announced bailout, there's one word I'm not hearing: "stimulus package."
What's it going to take to get people buying again? Because, buy they must. No car company -- not even the mighty Toyota or Honda -- can't survive at the current sales numbers. So, what we are really talking about is a bailout of the car industry, not just Detroit.
Consider this: in a "normal" year, about 16 million people buy cars. This year, only about 12.7 million people have gotten new wheels. That means about 3.3 million Americans have postponed a needed trip to the car lot.
What will get those 3.3 million people off the dime? When will they say, "It's safe to go back to the car lot?" That's the part of the bailout that's being ignored. It doesn't make sense to carbuyers yet.
Look, it's one thing for a bunch of politicians and auto execs to reach an agreement. But that's not what it's about. It's all about boots on the ground. Or more to the point, customers on the car lot.
We have already seen a massive bailout of the banking industry where the government merely threw money at failing companies to keep them afloat. Notice how the real estate industry is going gang busters now? Maybe that should tell you something.
The stimulus part of the bailout is not an important part of the concept -- it's the most important part of any plan. If we give the car makers a loan, it won't do much more than put the auto industry on life support for another few months. But if the bailout can include a way to get car buyers on the lot, then the tide will turn.
So what's it going to be? For those of you who are reading this, who have put off getting a new car, what would it take to get you in that new car today? For starters, we have to offer loans that people can qualify for. But what about tax credits? Interest-free loans? How about a government guarantee to honor extended warranties and supply parts and service? Or, this is really wild, how about an amnesty program to forgive the negative equity many consumers are now carrying?
Ever notice how the best advertisement for a restaurant is a line of people waiting for a table? Get the stimulus package in order and 3.3 million people will flood car lots and pump cash back into our economy. Just think how that will look on the 5 o'clock news.
As the Edmunds Oracle Weekly Top 3 guy predicted early this morning, an initial bailout has been provided to save GM and Chrysler from a catastrophic demise. The White House today announced a $17.4 billion rescue package to help the two ailing giants survive into the Obama era. A TARP-funded $13.4 billion will be released over the next few weeks, and an additional $4 billion is on tap for February, pending the approval of Congress and then-President Obama.
We welcome this news, but we think consumers need a shot in the arm as well. No amount of government assistance will make a significant difference if consumers stay on the sidelines, and right now the economic downturn is forcing them to do just that. Consumers need financial incentives to purchase cars -- e.g., tax rebates or deductible interest -- in order for the bailout to be a resounding success. Here's hoping that this crucial next step will be taken in the weeks to come.
Don't let the ominous skies above dissuade you -- right now is undoubtedly the best time in recent memory to buy a new car. Here are three reasons why, as well as a couple tips to help you find a screaming deal as the year draws to a close.
3. An initial Big 3 bailout, probably on the order of $10-15bn and sourced from the TARP, looks to be just around the corner. The incoming Obama administration has repeatedly expressed its intention to help the auto industry get back on its feet. The long-term future of the industry looks bright, believe it or not, so consumers should feel increasingly confident about taking advantages of hot deals in the here and now.
2. Lagging demandis a good thing for car shoppers, as you may recall from Economics 101. Over the past few months, demand has slackened to historically low levels, which is largely why there are so many bargains to be found right now. It's not just American cars that are going for cut-rate prices -- Audi/Volkswagen, Hyundai/Kia, Nissan/Infiniti and Toyota/Lexus are all offering cash rebates on new car purchases. How do we know? We checked the Edmunds.com Incentives & Rebates page, which gives you a rundown on current cash-back offers, as well as exclusive insider information on how much money dealers have to play with on particular models.
1. You have the upper hand. Why? Because you're armed with the Edmunds TMV price for every model you're looking at. For example, suppose I go check out a stripper '09 Audi A6 3.2 Quattro sedan. The MSRP is $46,875, and the Invoice is $43,648. The salesman says he'll cut me a sweet deal: "$42 grand out the door...that's almost two thousand bucks below invoice!" But I've checked my TMV, so I know that, thanks to current incentives, the True Market Value is actually $39,314. The salesman was trying to pull a fast one, and it probably would have worked if I hadn't been prepared. So do your TMV research before you shop -- it'll get you a great holiday deal instead of a good one.
If you thought you were the only one hurting (or at least feeling scared) during this historic economic downturn, here is proof that even the very wealthy are being forced to take a haircut. In a normal month, Ferrari sells about 600 cars worldwide. However, in November, Ferrari's worldwide sales tallied a paltry 92 units.
One can only imagine what Ferrari's sales with be in December. The economic news has only gotten worse since last month, and now many of Ferrari's well-to-do clientele are no doubt looking for a defibrillator in light of the Madoff ponzi scheme coming to light.
What does this mean for the average Joe and Jane? Perhaps you can score a deal on used Ferrari from Palm Beach? However, this one is all mine, so stay away!
Acura has dropped touch screens in favor of its Interface Dial on all 2009 models. But most manufacturers are going the opposite direction by increasingly adding touch-screen interfaces to control audio, navigation, communication and even climate control functions.
And it's not just in the U.S. that touch screens are proliferating. TRG reports that Mazda and Porsche added the technology for the first time in MY '09 European vehicles, while VW expanded it to 10 of its cars over there. Overall, Germany saw a slight increase in vehicles available with touch screens: 23.6 percent in MY '09 vehicles vs. 20.6 in MY '08.
As a fan of touch screens, I'm glad to hear that Acura, which is normally on the cutting edge of car tech, is in the minority and is leading a lone retreat away from touch screens.
Last month, Toyota sold 8,660 Prius hybrids. That is just about half of the 16,737 they sold in November of 2007. Average gas price in November of 2007? About $1.30/gallon more than it was in November of this year. After the spike in gas prices over the summer, Toyota reacted to consumer demand by increasing production of the Prius and even developed plans to produce the Prius in the US, which it has shelved. Now that Prius demand has fizzled, Toyota is reacting by offering cut rate finance and lease deals in many parts of the country in an effort to move all those extra hybrids that nobody seems to want now. Clearly consumers are reacting to the rise and fall of gas prices and Toyota, and other manufacturers, are reacting to consumers' fickle nature.
It is safe to assume that once the current world-wide economic recession abates, in a year or two, and oil and gas prices spike back up, consumers will once again demand hybrids and other fuel efficient vehicles. This is why I suggest buyers think long and hard about their priorities when they look to buy a vehicle in the near future.
Buying a vehicle represents a commitment that is usually measured in years and not months. So when you are thinking about the color, options and body style, give long thought to what if. What if gas prices go back to $4/gallon, can you comfortably afford it? Don't just assume that gas will stay under $2/gallon indefinitely. Wall Street seems to have forgotten the lessons of history. Don't let the same thing happen to you. Don't just look down at the nice straight-a-way in front of you, lest you fail to notice the sudden curve until it is way too late.
The all-new 2010 Fusion line clearly has two targets it's going after- the Honda Accord and Toyota Camry. With all three priced competitively in the midsize sedan market, the decision comes down to which one has the all-around edge in features, performance and quality.
Three weeks ago, Ford unveiled the 2010 Fusion at the Los Angeles Auto Show. This week Edmunds.com was invited to get behind the wheel of this second generation in our very own backyard. During two days in and around Los Angeles, we tested the entire Fusion line, which includes the 2.5-liter inline-four version, the 3.0-liter V6, the 3.5-liter Fusion Sport, all-wheel-drive versions and first ever Fusion Hybrid.
There were a number of exciting entrants in this year's car color sweepstakes. Which one proved most popular among North American car buyers?
Uhhh...white.
According to the 2008 DuPont Automotive Color Popularity Report, one out of every five new cars sold this year was painted white. Black was second with 17%, while perennial leader silver dropped to a second-place tie with black.
The report also contains the following nugget of wisdom from Leatrice Eiseman, executive director of something called the Pantone Color Institute. "Blue [13%] is being utilized as the 'new green,'" Eiseman asserts, "because it is well-understood by people all over the world that blue can also represent the preservaton of nature."
With the recent announcement that GM is trimming nameplates, it would seem to make sense that extraneous "twinned" (or more) versions of vehicles within GM would be among those sent to the gallows. Though we think highly of the Lambda platform (Buick Enclave, Chevy Traverse, GMC Acadia, Saturn Outlook) aren't four versions of the same vehicle a bit ridiculous? Really, two would be enough -- one lower-priced (Traverse) and one premium (Enclave) brand. You'll see why I've pictured a Pontiac Vibe above after the jump...
The House has passed the bill that will get GM and Chrysler the loans that will carry them over until the Obama Administration and the new Congress can work out a larger and more long-term assistance package for the domestic manufacturers. As of this writing, we are still waiting to see if the Senate will pass the same bill, which they likely will. However, the economy as a whole is still going to suffer and car sales will likely remain low for at least the next year.
By their own estimates, the Detroit 3 are predicting annual sales for CY09 of around 11M units. This number is not financially sustainable for the industry, partially due to under-utilization of factories. As the November industry sales indicated, the outlook looks to be even more bleak going into 2009.
However, one way the government could help the domestic industry, and spur the greater economy as a whole, is to encourage the purchase of domestic vehicles through an income tax credit (which comes right off the top of what you might owe, unlike a deduction). This tax credit could be part of the estimated $1 Trillion stimulus package that is expected to be sought by the incoming Obama administration as a way to jump-start the recession-ravaged economy.
If the government offered such a credit for the purchase of domestic brand vehicles only (Ford, GM, Chrysler), it would certainly be seen as unfair to the transplants. However, many foreign governments (including Japan, China, South Korea, Australia and Germany) have been injecting cash and offering other financial incentives to their respective domestic auto industries in an effort to help them out during this world-wide recession.
Do you think this would be a good way to spend government money as a way to stimulate the economy and help the domestic auto industry, would such a plan motivate you to purchase a domestic vehicle and how much of a tax credit would you need to get you to "pull the trigger?"
In addition to great tools like our gas guzzler trade-in calculator, our data wizards at Edmunds.com also compile a regular, internal analysis of the cost-benefit of buying a hybrid vehicle versus a traditional gas-powered one. It calculates how many years of ownership it would take to make up for the price difference between a hybrid and an equal non-hybrid vehicle. This time, the news is worse than usual for hybrid hopefuls -- a lot worse. In some cases, the time frame required to break even has doubled, or even tripled.
Why? Due to the significantly lower oil prices compared to several months ago, the overall cost of ownership for cars that run on gas alone is also down (makes sense, right?). That means hybrids, with their higher asking price, are even less of a value right now. So if you're looking to buy a hybrid in order to save money, you're out of luck. At least for the time being.
Here's how many years it would take to break even on a hybrid model compared to the non-hybrid version now, compared to August of this year:
Cadillac Escalade Dec. 2008: 10.3 years Aug. 2008: 5.2 years
Chevy Malibu Dec. 2008: 29.1 years Aug. 2008: 11.2 years
Ford Escape Dec. 2008: 12.4 years Aug. 2008:7.8 years
Honda Civic Dec. 2008: 23.8 years Aug. 2008:10.1 years
Mazda Tribute Dec. 2008: 26.8 years Aug. 2008: 9.7 years
Toyota Camry Dec. 2008: 13.2 years Aug. 2008: 4.0 years
Toyota Camry (gas) vs. Toyota Prius Dec. 2008: 8.4 years Aug. 2008: 3.9 years
Saturn Aura Dec. 2008: 52.1 years Aug. 2008: 19.6 years
As you can see, saving money shouldn't be a motivating factor for buying a hybrid vehicle. Unless, of course, you plan to keep your Saturn Aura more than 52 years.
Dealing with an automaker's finance arm shouldn't be a harrowing experience, but it sometimes is. Recently, J.D. Power came out with their 2008 Consumer Financing Satisfaction Survey, which measures customer satisfaction with new vehicle finance services according to four criteria: application approval process; customer contact; payment/billing process; and provider offering.
The rankings are divided into categories: Luxury loan, luxury lease, non-luxury loan, and non-luxury lease. BMW took both luxury categories, while Hyundai took the non-luxury loan and Ford the non-luxury lease. Interestingly, Honda ranked third (which is still quite good) in three of the four categories.
I noticed that Toyota and Nissan, which I personally found to be a pain to deal with on my own vehicles, were nowhere to be found. Just goes to show you; 27,964 surveyed consumers can't be wrong.
So for now, forget about the dealership experience. What's your experience been with the finance companies? Good, bad or otherwise?
There's a fight going on at the bottom of the marketplace right now. Who sells the lowest priced car? Well, it's not always that easy to answer that question.
Though the base price of the 2009 Hyundai Accent and the 2009 Nissan Versa are just 20 bucks apart ($9,900 vs $9,970), when they are priced them out with A/C and an automatic transmission, suddenly the Accent was almost $1,500 more than the Versa. I don't think anybody has figured that out yet.
As readers of our Long-Term Blog will have noted, I didn't particularly enjoy the Subaru Impreza WRX STI's company while driving to Oregon and back last week. Which got me to thinking: Exactly what is it that makes a car a good road-trip companion? If you ask me, the following three features are necessary conditions for Roadtrip-Rated status. Check 'em out, and then tell me what YOU think a Roadtrip-Rated ride's gotta have -- and which models deserve this status, past or present.
Cars are a big expense and commitment, no question. Making the decision to buy one should not be arrived at on a whim. Edmunds.com is a fantastic resource for analytical information such as pricing and specifications, along with the valuable insight and opinions of the editors' reviews. But as thorough and professional as those reviews are, their exposure to the various vehicles represent just a snap shot of what an owner will experience over the months and years of ownership. Owners can often point out both positive and negative aspects of a vehicle that can only be realized during the day-in and day-out experience of ownership. The best place to tap into those aspects is vehicle specific forums.
It probably won't surprise you to hear that car sales are still way down as of November. Our sister blog, Auto Observer has the whole story.
But that means you can probably get a really great deal on a new car right now, particularly on 2008 model. And to help you make the most of this opportunity, check out our Car Buying Tips for a Slow Economy article.
Confused about how to evaluate a used car? Check out our top 10 on the subject
Top 10 funniest commercials, top 10 pop albums, top 10 Chicago bartenders, and my personal favorite, Lifehacker's top 20 top 10s. As December 31 quickly approaches, seems like everyone's got a top 10 list or two of the best, worst, weirdest and other sundry ways to categorize the year that preceded.
But rather than wait for the rush of the holidays and the end-of-year crush, Edmunds.com publishes Top 10 lists frequently throughout the year. You can check out all of our Top 10s on your own, but some of my favorites are Top 10 Deals of the Month - Cars (perfect for shoppers who are ready to buy now), Top 10 Tips on How to Test-Drive a Used Car (used cars can be a great way to get more for your money) and Top 10 Cool Features on Cheap Cars (you don't have to spend a ton to get the latest gadgets and conveniences).
There are all kinds of topics, some funny, some serious and dozens of Top 10s to choose from. So check 'em out! And remember to come back throughout 2009 to see what's at the top of our list all year long.
The Edmunds editors pump out so much information every week that it's sometimes hard to keep up with what's new -- even for us. So here are a few highlights that you might find interesting:
Feature Articles:Frugal Family Challenge, Part II -- two families go head-to-head to see who can save the most gas. Our own Phil Reed crowns the winner on Good Morning America.
Feature Articles: How To Negotiate An Extended Warranty; and the latest in our "Confessions" series, "Confessions of a Car Thief."
Speaking of features, I'd like to know about the kind of Consumer Advice stories you'd like to see more of. What questions -- about new or used cars, financing, safety, fuel economy, etc. -- would you really like to see answered? Where do you think you could use the most help in the car selection/buying/ownership/selling process? If I've got an answer for you within an existing article, I'll let you know, and if it's a topic we haven't covered yet that we think would have broad appeal, we'll get on it!
I've been an XM fan since I first got it in my car back in May 2006. Aside from the fact that its baseball channels allow me to listen to Toronto Blue Jays games 2,500 miles from Toronto, I enjoyed its commercial-free alternative rock channels and the ability to listen to it everywhere (XM's signal strength has always been better).
With the Sirius-XM merger, more than just the companies have merged. Both channel line-ups have now been dramatically alterred as well. Channels have been dropped, several have been added and a huge number have been renamed to match equivelent channels. For instance, XM's Ethel now adopts Sirius' Alt Nation label, while Sirius Gold adopts XM's 50s on 5. (The neat XM channel graphics that used to pop up on my portable XM player have also been replaced by simple font and colors. Boo.)
However, it's not just names that have changed, so has programming. While Sirius' Alt Nation and XM's Ethel offered basically the same alternative rock hits, I'm disappointed that XM's Lucy has been replaced by Sirius Lithium. Both were always supposed to feature alternative rock from the 1990s, and yet whenever I listen to Lithium, I never seem to recognize the song -- and I was there in the '90s. I'll be interested to see what Karl Brauer, our resident 80s satellite radio channel expert, has to say about Sirius Big 80s becoming 80s on 8 -- he enjoyed the former, hated the latter.
Another thing to consider is that unique Sirius channels like Howard Stern, NASCAR, NFL play-by-play, Martha Stewart and her exact opposite channel, Playboy, will now cost extra on XM. At the same time, Oprah & Friends, NBA and NHL play-by-play, PGA putt-by-putt, college sports and IndyCar will be available on Sirius. Both amount to a $4 per month increase, although there are currently special offers. I don't really get this. If I don't pay for NBA with XM, why must I pay for it with Sirius?
This brings me back to the beginning: MLB stations. They aren't on that list of XM channels being available on Sirius. I don't need Oprah & Friends, I need Cito & Friends. From what I can tell, Sirius-XM does not yet have an agreement with MLB but is working on it. Double your efforts and give me back Lucy while you're at it.
In a clear response to a country that is neck-deep in economic doom and gloom, Nissan and Hyundai are now offering their respective dealers the ability to advertise a new car for under $10,000*.
At Edmunds we don't usually discuss individual dealership promotions, but this one caught my eye. Bettenhausen Dodge, a "one price" dealer in the Chicago area, has a pretty unusual deal. If you buy one of their new 2008 Dodge vehicles at MSRP, you get another used 2008 for only $1.
Before you get too skeptical, know that they've shared their numbers with me, including what would happen if you applied all the rebates instead of paying MSRP, and the bottom-line savings are substantial -- between $$4,181 and $6,324. Though it's not the first time anyone's offered a "Buy One, Get One for a Dollar" sale, the dealership makes a point of saying that all vehicles can be financed and all of them are 2008 model year, not earlier. The only catch (and this is important) is that you don't get to choose which combination of vehicles you want. They've chosen five combos to offer:
New Charger RT or Durango SLT paired with a used Avenger
Grand Caravan SXT or Dakota Crew Cab paired with a used Caliber
Ram Quad Cab paired with a used Caravan
I don't know many people who need to buy two cars at once, but it does happen. And if you don't live nearby but want to take advantage of the deal, you can always have the cars shipped.
A sign of the times? Definitely. But a slightly used car for a buck beats the 99 Cent store any day.
A full road test (including video) of Nissan's highly anticipated 2009 370Z is now available on Edmunds Inside Line. The sixth generation of Nissan's most famous sportscar recently made its debut at the Los Angeles Auto Show. A host of lucky enthusiasts got an even earlier look at the car after an Inside Line sponsored preview of the car at Nissan's L.A.-based ad agency.
The 2009 Nissan 370Z is motivated by the latest evolution of Nissan's venerable V6, a 332-horsepower 3.7-liter mill designated the VQ37VHR (Very High Revving). The new mill redlines at 7,500 rpm, and is coupled to a heavily stiffened chassis and more supple suspension. The result? Check out the full test for Michael Jordan's insightful take, but know that he's convinced "Z-car people will be pleased."
The Insurance Institute for Highway Safety (IIHS) reported today that a record 72 vehicles for the 2009 model year received top ratings for protecting occupants in a crash -- more than double the number named "top safety picks" for the 2008 model year. A similar report included only 13 top-rated vehicles for the 2007 model year.
With an exponential number of vehicles getting passing grades, the IIHS is considering ways to make its tests more difficult. But even if more cars lose in the coming years as the tests grow more stringent, drivers and occupants will win since cars across the board become safer.
There was lots to see at the 2008 Los Angeles Auto Show, but here are the Top 10 Must See Things.
1. The Mustang Garage: Along with the revised 2010 Ford Mustang, the Mustang Garage is a whole corner of the huge Ford stand that includes a wall of wheels, parts displays, a Mustang on its side and live modification demonstrations. Sadly, the 15 or so Mustangs on display during press days have mostly been returned to their stable.
2. The Porsche Room:While all the other manufacturers share space with others, Porsche gets its very own room to celebrate both new and old models from the beloved sports car brand. It's located just to the right of the West Hall entrance -- it's easy to miss.
3. 2011 Chevrolet Volt: This could be the future of transportation and the savior of GM, or the future and savior that never arrived because of Chapter 7. Either way, the Volt concept is an absolute must-see in Los Angeles.
4. 2011 Honda Insight and Honda FC Sport: One is a real, forthcoming fuel miser that will give the Prius a run for its money. The second is a fanciful design concept of what a fuel cell sports car from Honda could be like. They're both something to behold -- for completely different reasons.
5. 2010 Nissan Cube: Not since the Borg, has there been this much interest over a Cube (yes, I'm a nerd, live with it). This weirdo, assymetrical box should capture some first-gen xB buyers jilted by the current edition.
6. The Exotic Rooms: Aston Martin, Ferrari, Lamborghini, Bentley, Rolls-Royce, Lotus. Do you require more description?
7. 2010 Kia Soul: Not a sexy choice, but this is a radical new direction for Kia, plus if they have even half the number of Souls they had during press days, it should be neat to see all the different Soul variations.
8. Old Cars Amongst the New: Sure you go to a car show to see the bright, shiney and brand-spanking new cars, but some of the older models on display are real special.
9. Modified Specials: We're not exactly a Pimp My Ride crowd around here, but some of the modified/customized versions of production vehicles on display are pretty darn cool. Make sure to check out the Scions, the Ford Flexes and Mercedes GLKs.
10. The Emphasis on Green Vehicles: Case in point at the GM stand. The 2010 Camaro and Corvette ZR1 are tucked way back into a corner, while a Malibu Hybrid, Aveo and Volt are prominently shown.
So you've got about $40 grand to play with, and...wait a minute. Actually, these days you probably don't. For that matter, neither do I or my cohorts in this comparative venture, Automotive Editor John DiPietro and Associate Editor Mark Takahashi. Nonetheless, what would you do if a 2009 Acura TL SH-AWD, a 2009 Infiniti G37 Journey and a 2009 Volkswagen CC VR6 4Motion magically appeared in your garage?
You'd grab the keys and head for the hills, that's what. And that's exactly what the three of us did. We mapped out a 22-mile driving loop through the Santa Monica mountains and hot-lapped it three times, switching cars after each circuit. Then we sat down with our ratings sheets, ordered up some bloody burgers and debated the virtues and vices of each ride.
Truth be told, there wasn't much disagreement. In fact, the final rankings were unanimous. Read on to find out how these midsize sport sedans stack up -- and don't be afraid to tell us what you think.
While credit may still be tight for many buyers, and cut-rate financing may not be as prevalent on some popular models it used to be, there are still sources for lower than average finance rates available to car buyers. One of the best places to look to for lower than average finance rates are credit unions. What most people don't know is that they are easier to join than you think.
Most typical new car test drives generally amount to little more than a drive around the block. Often times, this is by design as the salesperson would prefer to give you just enough of a taste to whet your appetite and get you excited, without giving you too much time to form any negative opinions. However, as I learned over the last 24 hours, taking an extended test drive can help bring out the little things that can both annoy and delight you. Things you won't have realized during just that short drive around the block.
Edmunds Says: A compressed natural gas (CNG) hybrid version of Toyota's best-selling sedan would be good for the environment -- and we won't run out of natural gas before we run out of petroleum. But Toyota's last attempt at a CNG Camry in 1999 was discontinued after one year due to lack of interest and a dearth of refueling stations.
Edmunds Says: A Fuel Cell Electric Vehicle (FCEV) version of the Borrego would get 54 combined mpg and a trio of 202-liter hydrogen tanks located underneath the vehicle would yield a 426-mile range. But like Kia's entrance into the big SUV market, it could be too late to make a difference.
Edmunds Says: Infiniti designers set out to create a drop-top that looks as good with the top up as it does with it down, and they've succeeded. Aside from the three-piece retractable hardtop, two colors and an available Bose system with headrest speakersare unique to the convertible. Both the base and Sport 6MT models get the coupe's 325-horsepower 3.7-liter V6; the base comes with a seven-speed automatic transmission and the Sport with a six-speed manual.
Edmunds Says: Hyundai's first hybrid will be the next generation Sonata, using the company's "Blue Drive" parallel system and the advanced lithium-polymer battery pack. A 30 kilowatt electric motor will work with a 2.4 liter engine to deliver fuel economy in the mid 30s. Hyundai's steadily improving design sense and build quality bode well for their entry into the hybrid market.
Vehicle: 2010 Lexus RX 350 When Available: February 2009 Price: Not Yet Available Edmunds Says: Lexus reveals the newly redesigned RX 350 which returns with a slight bump in size and horsepower, a six-speed automatic transmission with sequential shift and an innovative "Remote Touch" controller. Given the past success of the RX, this luxury SUV should be on your "must-see" list.
Vehicle: 2010 Lexus RX 450h When Available: Spring 2009 Price: Not Yet Available Edmunds Says: Redesigned along with its conventionally powered sibling, the hybrid RX 450h offers the same level of luxury and performance but with an environmentally conscious drivetrain. The RX 450h distinguishes itself from the RX 350 with exterior touches and a blue-trimmed Lexus logo, exclusive to the hybrid model.
Edmunds Says: Two new six-cylinder Boxer engines -- a 2.9-liter and a direct-injected 3.4-liter -- combined with the availability of a new dual-clutch transmission (PDK) means more power, truly decent fuel economy and easier commutes for this most practical two-trunk convertible. This roadster's nearly unrivaled mid-engined handling should remain intact, though the very subtle styling changes will likely go unnoticed.
Edmunds Says: The Cayman and Cayman S get the same new engines as their Boxster platform mates, but with just a little more urge (10 extra horsepower). Just like its sibling, the Cayman gets the PDK dual-clutch gearbox option, unique yet still subtle styling tweaks, and the availability of swank new heated and ventilated seats. With the impressive PDK tranny, this mid-engined track-day maven has become even more capable.
Edmunds Says: Ford goes aggressively after the Honda Accord and Toyota Camry with the 2010 Ford Fusion and Fusion Hybrid. It offers a giant, shiny new grill, improved fuel economy over what's currently available in the Fusion (and in the Accord or Camry), standard six-speed transmissions (both manual and automatic) and a new hybrid drivetrain that reportedly can go 700 city miles on one tank of gas and up to 47 mph on battery power alone. The new Fusion and its hybrid version could be a great option for shoppers looking for an American midsize sedan or hybrid sedan as an alternative to what's already available from Japan.
Edmunds Says: As a corporate twin, the 2010 Mercury Milan benefits from all the same changes the Ford Fusion does, and thus gains its own hybrid version that is expected to return 39 mpg. If you're not keen on the bold, chrome three-bar grille -- or any of the other new styling cues on the Ford -- opting for the Milan will garner Mercury-themed tweaks, like the waterfall grille and the two-tone cabin design theme.
We keep hearing that there is a pent-up demand for cars out there. After all, in recent years, 16 million vehicles were sold, but last year car makers only sold 12 million units in the U.S. That potentially leaves 4 million people out there who have decided to stick with old faithful (or old good-enough-until-we-feel-a-little-more-secure) for now. I know I fall into that category since my husband and I postponed our intention to buy a car last fall. 
announced last night at the 13th annual black-tie ceremony held at the MGM Grand Detroit. The event was attended by more than 600 industry leaders and media members on the eve of press week for the North American Auto Show. 
Vehicle: 
