I briefly drove the redesigned-for-'90 Honda Fit last night, a Sport version with the five-speed manual. First I subjected it to my six-mile, 0-to-20-to-0 (repeat countless times) commute and then got to stretch its legs when I went over my girlfriend's house (about 10 miles away) later on. So though I didn't get into any twisty roads, I was still able to form some impressions. It's the old good news / bad news. But it's mostly very good news and only a little semi-bad news...
Traditionally, the 2010 model year won't begin until October 2009. In reality, the 2010 model year is right around the corner. Legally, they can be sold on January 1, 2009, and you can be sure that at least one manufacturer will trot out a 2010 on that day. The question will be, "What shall we call them?" It is common to abbreviate the model year of a vehicle. Most will call a 2009 model an "oh nine," as with the '08's before them. But what about the 2010 models?
Should we call them a "two thousand ten?" A "20-10?" A "ten?" A "one oh?" This was a situation similar to what we saw for the 2000 model year, where most people ended up just calling vehicles a "two thousand." I'm sort of partial to "one oh." What about you?
Also, the 2010 model year* has some highly anticipated vehicles coming out: Chevrolet will offer up the Camaro and perhaps the Volt; Cadillac will have CTS Coupe and Wagon and SRX CUV. Honda and Toyota will both have all-new hybrids. Porshe will introduce the four-place Panamera; Acura will try to spice up its range with the NSX; Ford will begin its Euro-car onslaught with the Fiesta and Nissan may give us Super-Godzilla in the form of the GT-R Spec V. But which MY10 vehicle are you most looking forward to? My vote goes to the Cadillac CTS wagon and SRX, only because they are on my short list of vehicles to buy next year when I replace my Nissan Murano.
*Final model year designation is subject to change.
Earlier this week I asked you what you thought of as getting "good" fuel economy. I got a lot of interesting opinions about what good fuel economy is and whether or not it matters. Many people said it depended on the vehicle class. Good fuel economy for a truck would be terrible for a small car.
I bring this up because here at Edmunds we are wrestling with how best to educate consumers about fuel economy so they can make good car buying decisions. One reader wrote that 30 mpg was "the magic number." I had always thought of 30 mpg as an important benchmark of good fuel economy too. But recently I've realized that 25 mpg (combined city/highway) is pretty darned good.
The Edmunds data team took all the cars on the market, crunched the numbers and found the average was 21.7 mpg. They then created categories corresponding to that midpoint. It was decided that from 22 to 27 mpg would be labeled "good" fuel economy (combined hwy/city mpg). From 27 to 31 mpg would be "excellent." Above 31 mpg would be "best." That makes from 18 to 22 mpg "average" and 18 to 14 "below average." Last, and very much least, below 14 mpg is "poor."
By now you're saying, "Interesting... But why should I care?" Well, first of all, it's nice to know where you stand so you can feel smug or pleased, apathetic or flat out bummed. Secondly, when car shopping, it's nice to know, at a glance how a car stacks up to the competition. Sometimes, name calling does make it easier to see the truth.
So how does your car compare? And does this categorization seem like a lot of hot air? Or is it need to know information?
There's something convincing about hard copies. When something is printed out, it lends substantially more validity to a subject than just the spoken word. Nowhere is this more true than when you're in the heat of battle. That is, when you're at the dealership negotiating the price for your new set of wheels.
I thought I would take some time today to update you on some stories I have previously blogged about.
Back in March I blogged about Honda clamping down on internet warranty sales, due to the fact that online retailers were discounting the warranties and taking business away from less tech-savy dealers. I updated the story in April, Saccucci Honda, which has been doing quite the business selling extended warranties on their website, decided to single-handedly fight back by challenging Honda in court. You can follow the story in our forums. The outcome of this court case may determine whether the public will have to start over-paying for extended warranty coverage, or if the free market will prevail.
Last month I posted my prediction that we would all be paying more for cars in the future, due to ever-increasing raw material costs. Since then, several automakers have announced price increases, including Nissan and Toyota. The latest is BMW. As the global demand for raw materials continues to increase, it is likely that we will be paying more for everything, not just cars.
In an effort to display my prowess in business, I posted my thoughts on what I thought Cerberus was going to ultimately do with Chrysler, with respect to their decision to drop leasing. Most did not agree with my ultimate conclusion, and rightfully so. Recently I spoke with Mike Jackson, the CEO of AutoNation, the nation's largest auto group. I asked him what he thought of Chrysler's move to no longer lease vehicles. He told me that it was a move that was necessary for them to assure that they could continue to secure funding for maintained operations and future product development. By divesting their portfolio of leases, investors would be more willing to purchase securities backed by Chrysler and Cerberus. Ultimately, this is a move that will help assure the long-term viability of Chrysler as an automaker. Although Chrysler does have many challenges to yet overcome.
Finally, I blogged about MyGallons.com, which was supposed to offer consumers a way to hedge against rising gas prices by letting them buy gas credits at current prices and them redeem them in the future, when gas prices presumably go higher. Shortly after my post, the Better Business Bureau gave MyGallons an "F," when it was discovered that they did not have a contract in place with a vendor who could process transactions with gas stations across the country. MyGallons stopped accepting paid memberships and offered a refund of all existing membership dues. As of this date, MyGallons is still not accepting new memberships and appears to still not have a vendor in place. Of course, it probably doesn't help that gas prices have gone down, and not up, since the site was launched in July.
"Studies conducted by J.D. Power show that the typical hybrid purchaser is better educated and wealthier than the average car buyer. Furthering the exclusivity is the fact that available hybrids are hard to find... Toss in the tax breaks and access to highway HOV lanes that hybrid drivers get in many locales, and it's no wonder old-school drivers can get irritated."
To which the non-profit 40mpg.org, which encourages hybrid ownership says, "Enough already!" with all the hybrid owner bashing.
But is there some truth to the idea that Prius owners are eco-snobs?
While on a recent family vacation, it seemed like half my family was looking to buy a new car (a more economically viable prospect in Canada). Five kin, plus one friend were looking to buy something new. All were looking at fuel efficient choices and all had a good idea of what they wanted to get -- three Civics, a CR-V and a Malibu. All choices I could get behind. But one wasn't sure what she should get, so let me pretend for a moment that I'm my aunt, what should "I" buy?
I presently drive a 2005 Volkswagen Touareg V6 with minimal options that my spouse bought for me. I like it a lot, but it's time for something new. I'm very environmentally conscious and want something more eco friendly than a gas-guzzling and heavy SUV. I have two boys, ages 5 and 8, one of which plays hockey in the winter so I do need trunk space. I also live with snowy weather, so all-wheel-drive could be nice.
The Insurance Institute for Highway Safety (IIHS) recently conducted crash tests on eight small SUV's. Four scored the best, earning a "Top Safety Pick" award. These were the VW Tiguan, Ford Escape (along with the Mercury Mariner and Mazda Tribute platform mates), Mitsubishi Outlander and Nissan Rogue.
The VW Tiguan was noted as the top performer of the group. "In the latest tests, the Tiguan's performance is a standout," says Institute president Adrian Lund. "It sailed through the front and side crash tests without a single downgrade for structure or measures of injury likelihood recorded on the dummy. This is 1 of 4 models in this group that afford superior crash protection in their class. This is a huge change from just 5 years ago when most small SUVs were rated either marginal or poor in our side test, and standard side airbags and electronic stability control were rare."
To help car buyers, the data department at Edmunds.com decided to classify all the vehicles on the market according to their fuel economy rating. Some would be below average. Some would be poor and some would be excellent. And, naturally, some would be classified as getting "good fuel economy."
It would be useful to have a universal definition of good fuel economy. Then, if you were car shopping, you could simply ask, "Does it get good gas mileage?" No car salesman could then use a fancy sales pitch to turn bad into good.
Obviously, everyone is going to have a different definition of what is good fuel economy. But there has to be an overlap somewhere in the middle. Once the "good" range is established we can figure out what is above and below that. Shoppers can tell at a glance if a car is worth considering. Vehicles can quickly be ruled out or considered only for low mileage situations.
This being an election year, I thought you might be in a voting mood. So this is your chance to make your opinion heard. What do you consider "good fuel economy?" And do you think that knowing what "good" is will help you make a car buying decision? Or is it just more election year rhetoric?
For many car shoppers, it's common sense -- if a stereo has a premium label on it, it must produce premium sound. You want the truth? Can you handle the truth? Read on for the Weekly Top 3.
GM has rolled out yet another Employee Discount Program which offers invoice and below deals on virtually all its 2008 vehicles.
Earlier this year GM offered many incentives but many vehicles were excluded. Now, nearly all 2008 and select 2009 vehicles are being discounted.
There are two notable aspects of the current offer: several fuel efficient 2009 models are being offered including the Chevrolet Cobalt and the Pontiac Vibe. Also, the program will feature window stickers that show the bottom-line price buyers will pay which will include all incentives and rebates. This is a real benefit for consumers who are often confused by multiple numbers and how the incentives are applied.
The event begins Aug. 20 and is currently scheduled to run through Sept. 2. GM's 100th Anniversary is Sept. 16th. Is this program a good way to celebrate?
I'm up in Canada this week, and while driving through Toronto I happened to notice a new Mercedes-Benz C230. In the States, we only get the C300, C350 and C63, but Canada gets those plus the C230, featuring a 201-horsepower 2.5-liter V6 that gets a tiny bit better gas mileage than the 228-hp C300 (20.45 mpg versus 20.10 in Canadian testing). Of course, given that cars cost more in Canada, it's highly likely that Canadians are just more inclined to pay less for a less powerful Mercedes-Benz. But given the economy, wouldn't an increasing number of Americans be willing to do so now?
In addition to the C230, there's the 228-hp E300 4Matic (all non-AMG E-Class are all-wheel drive in Canada), the 335-hp S450 4Matic, and the B200 and B200 Turbo. I'd say the last two are the most intriguing, as the B-Class is a funky-looking hatch that gets 25 mpg city in its 134-hp four-cylinder form. For those looking for a premium, fuel efficient car, the B-Class could find some takers -- although it's certainly expensive. I've seen a couple around Toronto, but not enough to lead me to believe it would be a hit in the United States.
What do you think? Are smaller, slightly more fuel efficient engines installed in subsequently cheaper cars a smart move for premium car makers like Mercedes-Benz? And does the B-Class have a shot?
While the aftermarket car audio industry is singing the blues, it's never been a better time to get great music in your ride -- without visiting a car stereo shop. Wired's Autopia points to Bentley's alliance with fellow Brits at the high-end home audio company Naim Audio as yet another example of the automaker/audio brand mash-up, but Naim's Paul Stephenson makes it sound like you have to spend tons of money on a car and a premium audio system to get better than "quick and dirty low-cost" audio add-ons.
Although hardcore audiophiles can and will beg to differ (because that's just what they like to do), there are several examples of premium audio systems below $1,000 that offer better sound dollar for dollar than aftermarket options. Several Boston Acoustics systems available in Dodge, Chrysler and Jeep vehicles range from $495 to $995, and while these systems are far from the last word in superior car sound, try getting similar quality from the aftermarket for the same amount of coin.
THX is another premium audio supplier that offers excellent value. I've often pointed to the $995 THX Certified Premium Sound System in the Lincoln Zephyr as an example of excellent bang for the car audio buck, and the company's stereo system in the '09 Lincoln MKS runs $645, while the 5.1 Surround version is bundled with the vehicle's Navigation Package option that includes voice-activated nav, a hard disc Jukebox and Sirius Travel Link for $2,995.
In a sign of how bad things have become in the light truck market, Honda recently put a $2000 dealer incentive on their all-new just released Pilot. Even though gas prices have retreated, the 4WD Pilot's 16 city and 22 highway fuel economy is certainly not a selling point. This is especially true when Honda likes to tout the fuel economy of the rest of the vehicles it sells.
If Honda, who is generally reticent to put cash incentives on their vehicles, is using cash incentives, you can be sure that most other manufacturers will continue to pile on the incentives on their less-than-fuel efficient models. Stay abreast of all the latest incentives here.
In an article in Automotive News it was reported that three dealerships in Arizona are being investigated for abuses committed against servicemen at nearby military bases.
Servicemen from Fort Huachuca, many of whom are sent to Afghanistan or Iraq, were warned by their superiors to steer clear of Wildcat Mitsubishi in Tucson and Ideal Automotive (Mitsubishi and Suzuki stores) in Sierra Vista. The State of Arizona is investiging the dealerships' practices after the local Better Business Bureau received 30 complaints about the businesses over the last three years.
The dealerships are owned and operated by Rick Johnston and his sons Heath and Beau.
It made me angry to hear about the alleged abuses but it didn't surprise me. Car salesmen love young customers with cash who aren't particularly well informed. Furthermore, military men are taught to respect anyone with an air of authority.
It reminded me of what Nick James told me while I was writing "Confessions of an Auto Finance Manager." He said that the Finance Manager always looked for customers that where uninformed. In particularly he looked for customers who had good credit but thought their credit was bad.
"If I sensed that they (the customers) were uninformed about their credit score I knew I could offer them say two points over (the prime rate) and they would agree to it. I could tell them, 'We ran your credit report and, well, we both know you've had a few problems. But you're nice people so I'm going to help you out.'"
It's bad enough ripping off trusting people. It somehow seems even worse taking advantage of the people who are serving their country.
Suppose you've got about $70 grand to play with, and your heart's set on a sports car. I don't, for the record, and you probably don't either -- but nevermind about that. Say you've got the $70k, and you won't be satisfied until you've nabbed the keys to the best all-around sports car you can buy for the money. You've narrowed it down to three choices: the Chevrolet Corvette Z06, the Nissan GT-R and the Porsche 911 Carrera. How do you think they'll rank in this week's Olympic-themed Top 3?
I can hear the grumbling already. "This is the Strategies blog," you'll carp. "It's supposed to be about real advice for real people!" Well, last time I checked, Donald Sutherland and Andrew Bynum were real people -- and every real person could use some buying advice. Having driven the Chevrolet Corvette Z06, Nissan GT-R and Porsche 911 Carrera in recent weeks (and pretending, for the sake of argument, that the GT-R isn't selling for $30k over sticker), this week's Top 3 will tackle a question that's on everyone's mind these days:
Which sports car is most deserving of your hard-earned 70 large?
After seeing our latest leasing and incentive information, I was struck by the fact that Chrysler has left the leasing game. As far as I know, this is the first time a major carmaker has done that.
Boiled down to its essence, leasing could be thought of as another way of saying long-term rental -- typically anywhere from two to four years. You essentially are paying for the use of the vehicle, its depreciation in value over the term of the lease. You are not paying for the entire value of the vehicle; at the end of the lease the vehicle is worth a certain amount.
If the vehicle's value when new is say $30,000 and at the end of the lease it's worth $15,000, then you've used up $15,000 of that vehicle's value, and your monthly payments are essentially based on that. Great, you get to drive a $30,000 car while making payments that are based on $15,000. Of course, the trade-off is that you don't own the vehicle at the end of the lease. Now you know why you see so many new BMW 328s driven by new college grads.
You're looking at a graph that shows how many people searched for information on hybrid cars as gas prices rose in the spring and then began to fall in the summer.
When gas prices shoot up people panic and begin thinking about dumping their SUV for a hybrid. But when gas prices begin to level off and then drop (now the national average is $3.88 a gallon) people lose interest in smaller cars and again search for information about larger vehicles, trucks and SUVs.
"It's human nature," said Jeremy Anwyl, CEO of Edmunds.com. "There's been a rush to small cars, but that doesn't mean it's permanent. And in fact, our data shows that the recent sensitivity consumers have toward gas prices still goes both ways."
This is an interesting snapshot of consumer behavior. But I'm left wondering how far back we will swing toward larger trucks and SUV? Or are we headed toward becoming a nation of small, fuel efficient car drivers like in Europe and Asia?
Let's say I'm a person who loves little German cars (not really a stretch). Sadly, a 1 Series, C-Class and even A3 is out of my price range. Also, I'm looking for something vastly more fuel efficient than my last little German car: a 2000 Jetta VR6 (17 city, 24 highway). I also like the idea of a hatchback.
Therefore, I've narrowed down the choices to the Volkswagen Rabbit and the secretly German Saturn Astra. Which should "I" buy? And should "I" get the two door or four door? The Astra two-door certainly looks better than its four-door version and the Rabbit is the opposite situation. "I'm" shooting to spend about $19,000 so that "I" can get some goodies on the car.
Sometimes life on L.A.'s Westside can be a little too idyllic. Seriously, how many consecutive days of sunny skies and 75-80 degree temperatures with a cool ocean breeze could you handle? That's why I hightailed it to the Dearborn Inn in Dearborn, Michigan, earlier this week -- I had a hankering for a hot and humid slap in the face. Conveniently enough, Ford happened to be introducing its 2009 model lineup right across the street at its Dearborn testing facility.
So what's Ford got in store for car shoppers this year? Well, it's not all roses, but I did leave Dearborn with the distinct impression that this is a company committed to rectifying past wrongs and reestablishing itself as an industry leader. Some of that committment is already evident in 2009 models, while in other respects there's still a ways to go. This week I'll give you the Top 3 reasons why you should be excited about the 2009 Fords -- and the Top 3 reasons why you shouldn't.
On vacation here in New England, I've had the use of a Suzuki SX4 sedan for the past week. I have to say, for 15 grand (with the manual 5-speed gearbox) , this is a nice little car. For the short money of a Fit or Yaris, you get a roomy cabin, a peppy 143-hp engine, 17-inch alloys, power everything, a CD player, steering wheel-mounted audio controls, a trip computer and even automatic climate control. It also sports a 15 cubic foot trunk, cavernous for this class, though it lacks a fold-down rear seat.
But it's not just a healthy standard features list that makes the SX4 likeable.
(The 2008 Buick Enclave gets surprisingly good fuel economy. But jump on the gas and it doesn't want to downshift.)
As the old saying goes, "There's no replacement for displacement."
Or is there? Can you have both good fuel efficiency and good performance.
Carmakers will tell you that yes, you can have it all. But as the Enclave demonstrates, there's usually a trade-off of some kind, somewhere in the performance. With the Enclave, it didn't want to downshift. Then, when it did, it went from sixth to fourth.
In our article we take a look at what Ford and GM are doing to keep drivers high on the emotion meter which dialing in good fuel economy in "Where's My MPG?"
The Insurance Institute For Highway Safety (IIHS) recently conducted side-impact crash tests on a group of compact pickup trucks. Tested were the Chevrolet Colorado, Dodge Dakota, Ford Ranger, Nissan Frontier and Toyota Tacoma. The results were less than reassuring with only the Tacoma scoring a "Good" rating. The others were...not so good.
The Dakota, Ranger and Frontier earned a "marginal" rating while the Colorado scored a "poor." As drivers move away from large pickups and perhaps into smaller ones, the relative safety of these vehicles becomes even more important.
"More people may be looking at small pickups because of rising gas prices," says Institute president Adrian Lund. "Unfortunately, they won't find many that afford state-of-the-art crash protection. Most earn dismal ratings for protecting people in side crashes, and all but the Tacoma and Frontier lack electronic stability control, which is a key feature in preventing crashes. Until they improve, most small pickups aren't good choices for people looking for safe transportation."
Click here to see a video of the crash tests and here to read the complete results.
Some years ago we hired an investigative journalist to be an undercover car salesman. He got a job in a Los Angeles-area dealership and learned all the insider tricks of the trade. The result was "Confessions of a Car Salesman" one of the most widely read articles on our site.
Now, get ready for more confessing. On Tuesday, "Confessions of an Auto Finance Manager" will be added to the promotional box on the lower right hand corner of our site.
This time around Nick James, a six-year veteran auto finance manager, has decided to clear his conscience. For the past year I've been interviewing him, taping our conversations and learning the kinds of magic the pros work on a car contract.
As noted in my teaser post, automakers currently find themselves in an awkward transitional period. Consumers suddenly want maximal fuel-efficiency, yet most manufacturers are saddled with gas-guzzling fleets that offer only a few efficient alternatives. So what are they doing about it? Calling Madison Avenue, of course. This week we'll highlight three ways in which marketing mavens are trying to pull the wool over your eyes with misleading MPG claims.
With the sudden increase in gas prices, automakers are scrambling for ways to pitch old products with timely new claims about fuel-efficiency. Are they being honest about it? Are you kidding?! They're doing what companies do -- trying to make their wares look as attractive as possible for the buying public, reality notwithstanding. Tune in later today for our Weekly Top 3, in which we'll highlight three sneaky tactics designed to impress consumers with MPGs while keeping some uncomfortable facts under wraps.
The IRS recently announced that 2009 VW Jetta Sedan and Sportwagen models equipped with TDI engines would be eligible for an Advanced Lean Burn Technology Motor Vehicle income tax credit in the amount of $1300.
This tax credit is similar to what buyers of hybrid vehicles receive, and it speaks volumes as to the relative "greenness" of the new clean diesel technology.
Critics have expressed disappointment with the official EPA 31/41 MPG fuel economy rating, especially after VW hyped the potential for 50 MPG highway economy. As a result of this, VW commissioned a third-party certifier, AMCI, to test the Jetta TDI. AMCI found it performed 24 percent better in real world conditions, achieving 38 MPG in the city and 44 MPG on the highway. Still not 50 MPG, but noticeably better than what the EPA results showed.
Such discrepancies are not unusual for diesels, or even hybrids. The EPA test cycle is optimized for testing conventional gas engines, which clearly have different characteristics than hybrids or diesels. As a consequence, the tests often report inaccurate results that are not indicative of what drivers can expect in the real world.
For the consumer, the $1300 tax credit helps to off-set the price premium of the TDI engine and diesel fuel, further reinforcing the shorter payback period of diesel technology over a hybrid. Not to mention the fun of having 236 lb.-ft. of torque at your beck and call and the rush of power that Prius owners can only dream of.
Before an all-new vehicle arrives in dealer showrooms near you, before pre-production models are driven by drooling and/or jaded automotive journalists at "first drive events," before the cars we buy ever make it to a single auto show, they have to be test-driven, a lot.
Much of this testing can be completed at private, secluded "proving grounds" -- testing facilities with various road surfaces and track types that can simulate many different driving conditions and scenarios. But there are times when real-world on-road testing is neces
GM has rolled out yet another Employee Discount Program which offers invoice and below deals on virtually all its 2008 vehicles. 
"More people may be looking at small pickups because of rising gas prices," says Institute president Adrian Lund. "Unfortunately, they won't find many that afford state-of-the-art crash protection. Most earn dismal ratings for protecting people in side crashes, and all but the Tacoma and Frontier lack electronic stability control, which is a key feature in preventing crashes. Until they improve, most small pickups aren't good choices for people looking for safe transportation."
