Shopping for a car is difficult enough without trying to overcome a language barrier. Many dealerships have salespeople who speak Spanish so they can serve the Latino community, but this can create a false sense of security for car buyers.
When a salesperson speaks your language, you tend to let our guard down. Be careful. Just because they can communicate with you doesn't mean that they'll be on your side. Salespeople are there to make the most money they can in order to improve dealership profit and boost their commissions.
Our friends, families and readers ask us what's the "best car" all the time. But the answer's not quite so simple as, "Well, I recommend X car or Y truck." It's better to ask, "What's the right car for my needs?"
You've come to the exactly the right place to find the answer.
Chrysler announced that its "Year-end Wrap-up" will kick off today and run until January 4, 2010. The program will be offered on various Chrysler, Dodge, Ram and Jeep vehicles. The details on the various incentives and freebies (which vary according to model) that buyers may choose from are as follows:
Honda's cars, such as the Fit, have short warranties because they have a reputation for reliability.
The strength of a new car warranty is something most shoppers don't think of until they are signing the sales contract. And they think of it then because the dealership's finance manager tries desperately to ram an extended warranty down their throat.
The time to think about the warranty is before you start car shopping. And the best way to do this is to review our warranty and roadside assistance chart . Take a moment to click the link and scan the chart. Then I have a quiz question for you.
General Motors' bold marketing strategy that allows customers to drive its cars for up to 60 days with a money back guarantee has been extended. The "May the Best Car Win" program, whose advertisements show a given GM model going up against a rival, has gotten folks who may not have considered a GM car into the showrooms, and more importantly, into the cars.
The program has been such a success for the company -- with very few cars returned -- that it has earned an extension. Originally slated to end on November 30th, the program has been extended to January 4th, 2010. All the details on the program are provided on the 60-day Guarantee site, though note that they haven't yet updated the extension date on the bottom of the page.
Drive by new car dealers and used car dealers and it's hard not to notice the difference. The new car dealer typically has a much larger building and lot, as well as nicer furnishings inside and out. The used car dealer, meanwhile, will likely have a smaller facility, a less luxurious showroom and a dearth of manicured real estate. So of course, the new car dealer will have better used cars, right? Don't be so quick to answer that...
Edmunds analysts have reported that three-year-old used cars currently sell for about 16 percent more than they did this time last year. Typically, used car prices rise 4.6 percent from year to year.
"The remarkable price increase is easily attributed to basic economic principles: used car supply is down, and demand is up," said Edmunds.com Analyst Joe Spina, who is responsible for the True Market Value Used Vehicle Appraiser data.
Spina added that, "in recent years, automakers largely withdrew from leasing and now the effects are starting to kick in, so off-lease inventory is starting to dry up. Also, thanks to relative softness in the new car market, there aren't as many used cars being traded in. Meanwhile, demand is up because many traditional new car shoppers are now considering used due to the economy."
Domestic cars are benefitting the most from the price spike. Three-year old domestic cars are selling for about 18 percent more than they did this time last year, while European used car prices fell during the same period.
Sales of the BMW X3 have crumbled, dropping 65.9 percent between 2008 and 2009.
Luxury crossovers are not living up to their promise as the new fad among car buyers, a new report from Edmunds.com revealed. Sales within the crossover segment have dropped nearly 25 percent since 2007, despite the fact that four new crossover vehicles were introduced during this time.
"The luxury crossover segment has taken a beating in sales because most of today's consumers are concentrating on value," says Jessica Caldwell, Senior Industry Analyst at Edmunds.com. "Big profits were anticipated for new models introduced into this segment, and that is just not proving to be the reality for most."
For more information, please visit Edmunds' AutoObserver story "Brands Looking to Expand Luxury Crossover Share Dealing with Ruthless Trends".
Dealers are basically honest and can regulate themselves. True or false?
I'd love to know your opinion on this question and I bring it up for two reasons. This week I read a news item that said the government was considering creating an oversight agency that would, among other things, prevent fraudulent lending practices of dealers. Apparently, this is the number one ranked complaint from consumers, according to an annual survey by the Consumer Federation of America and other consumer groups.
What caught my eye was the list of shenanigans that goes on in the finance and insurance room (F&I). When I got done reading the list I felt sick to my stomach.
While doing research on the Dodge Challenger, I was reminded of yet another reason why Edmunds continues to be the go-to source for used car information. Perhaps you didn't know this, as there is so much on our site, but we have a section on model histories.
We have dozens of these covering many popular models, and they cover a given model from its birth to its latest form. The information provided is exhaustive -- I know because I used to write them! So you found an old but nice, low-mileage 1996 Accord EX in the classifieds and want to know the differences between the LX and the EX? We've got you covered. Got a bet going with your gearhead friends on how much horsepower the '84 Mustang GT had compared to the '87? No problem.
I provided the link (above), but to otherwise access them, here's the drill: From the Edmunds home page, click on "Car Reviews" (on top of the page), scroll down all the way and click on "Model Histories" (on left underneath "Retrospectives").
When buying tires, the salesman may try to upsell you on a brake job or front-end alignment.
"Upselling" involves persuading a customer to buy more product or service than they originally intended. From the innocous "Would you like fries with that?" to "Buy one, get one free," upselling is a standard part of sales training because it brings in extra profit. Many salespeople are even paid commensurate with their ability to upsell successfully. Car buyers and owners need to be particularly wary, because upselling exists at every point in the game: car dealerships, tire stores, repair shops and even car washes.
Our new article, Avoid the Upsell, illustrates the psychology and sales language involved in turning a smaller sale into a larger one. It tells you what tricks to watch for and how to respond to the salesperson. Knowing these tricks can even protect you from outright fraud, which we discovered when a quick oil change shop offered to "fix" things on our car that weren't broken.
I admit to being a willing sucker for the occasional upsell, such as adding an item to my online shopping cart if it puts me over the "free shipping" threshold. What was the last thing you were tempted to buy (or actually bought) due to an upsell, and how did you handle it?
Lexus today announced MSRP for the 2010 LS 460 and LS 460 L sedan, the midsize 2010 GS 350 and 460 sport sedans, and the midsize 2010 GS 450h hybrid. The GS line's price remains unchanged; the LS 460 rises slightly and the 460L drops more than $3,500. Vehicles should arrive at dealerships in the next two weeks. Pricing specifics are after the jump.
I've just spent a week in Montana and I have one word to say about their car buying choice: Subaru. Actually, Subaru, with its affordable all wheel drive, takes a backseat to any kind of pickup truck (preferable with several cracks in the windshield). But in the car market, Subaru is the only game in town.
It got to the point where my wife asked, "Do you think Subaru dealers are really rich up here?" I don't know the answer to that, but I do know that my eyeball survey revealed that every other car on the road is a Subaru. And on my visit to Big Sky Country, I wish I'd had one.
Making good on its promise to bring the production version of the Dog Friendly Honda Element Concept to market, Honda announced today that the Dog Friendly equipment group will be available starting on November 16, 2009.
The Dog Friendly accessory package (MSRP $995) is a dealer-installed options group that can be added to any 2009 or newer Honda Element EX model (the 2010 Element arrives in showrooms later this month). Honda gave us a sneak peek at this fetching 2009 Element EX with Navigation outfitted with the Dog Friendly package this week, so we rounded up all our doggie friends and friends with dogs and let them give it a spin. Three editors and seven dogs of varying sizes spent time with the Dog Friendly Element while it was here. Follow the jump to see what they thought.
The Infiniti FX35 isn't for everybody. Compared to more cookie-cutter crossovers, the FX35 -- with its rakish rear pillar and unorthodox exterior styling -- exudes the attitude that it can take you on a ride that other crossovers can't. Why else would Edmunds' staff of normally circumspect scribes have fallen for the FX35's higher-end sibling, the FX50, as evidenced by the many Long-Term Road Test blog posts.
While the FX35 we tech tested doesn't have the full complement of cool tech that our LT FX50 is laden with, it has plenty of bells and whistles to go along with its exterior bling and performance prowess. But all these extras don't come cheap and are packaged so that you can't cherry-pick what you want. Our test vehicle topped out at $46,955 after starting out at $40,950, with the extra $5k consisting of two pricey but extensive options packages.
The folks at CarMax recently released a checklist to help potential buyers identify flood damaged cars. Either private parties or car dealers could try to sell you one of these vehicles, which may appear to be in good condition, without disclosing the vehicle's history. According to CarMax's Jason Day, "Flood-damaged cars that are not...structurally sound could be repaired, re-titled and sold to unsuspecting buyers."
In addition to checking out our article on flood cars, this handy checklist should be required reading if you want to be as diligent as possible with your used car search.
Follow the jump for 10 tips on how to identify a vehicle that may have flood damage.
It's football season and that means the timeless American tradition of tailgating is in full swing. Here are five vehicles that would be good choices for tailgating. I sampled a wide selection of price ranges and decided that each should either have a tailgate or liftgate. Enjoy.
I was riding with two friends in the 2010 Honda Insight and we were buzzing up a mountain pass in Los Angeles when my friend said, "I'd never buy this car -- I need more power." I answered, "You mean you want more power, you don't need more power."
This triggered a long debate about driving styles, modern traffic patterns and the generally befuddled state of motorists in Los Angeles. But when we all calmed down again, I began thinking how important it is to choose a car with features that we will use about 80 percent of the time. What do I mean?
Most folks probably think of car owners' clubs as something meant only for those who wash their beloved car with baby diapers and who can recite production numbers and engine output figures at will. Though that's certainly true, these clubs are also a great benefit to owners who may just be interested in some advice or who are looking to buy or sell a particular model.
It's time to ponder the eternal question: is this a good time to buy a car? There's no doubt that "Cash for Clunkers" has left us with a hangover. Incentives are down and prices are up. A bad combination. But the good news is that it won't last forever. And there are ways to get a good deal.
For many people, the process of buying a used car ranks right up there with cleaning out the attic, taking the dog to the vet or getting a root canal. However, getting your next set of "pre-loved" wheels needn't be unpleasant and in fact can be somewhat exciting as you look for that just right car. To make this process much easier, we've come up with a list of 10 steps that should help you navigate through this jungle that can be inhabited by exaggerations, misinformation and confusion.
After a weekend of hyping it's new 60-day, money back guarantee, the new GM program officially launches today. The no-questions-asked refund will run through November 30.
The guarantee, which is nearly unprecedented (Oldsmobile and Saturn tried similar return programs) applies to nearly all Chevrolet, Buick, GMC and Cadillac vehicles. Clearly, this is GM's bid to demonstrate confidence in its product and also entice buyers who might be on the fence about making a big purchase in a down economy.
To qualify for the refund, a consumer has to return the car between 30 and 60 days after having driven it for less than 4,000 miles and must be up to date on the payments. Be sure to check the limitations before buying.
Fact #1: In Europe, 60 percent of the passenger cars on the road are diesel. Fact #2: Diesel engines are 30 percent more fuel efficient than gasoline engines. Fact #3: In the U.S., 3 percent of the passenger cars on the road are diesel.
Question: What the heck is wrong with us?
That was just one of the questions I had in mind as I left a Motor Press Guild presentation by two leading diesel experts (and advocates). As Gale Banks, an avowed "torque junkie" and diesel proponent put it: "The engine of the future is 115 years old."
So, should your next car be a diesel? Here are a few bullet points to help you decide.
Compared to new car shoppers, used car shoppers have more people willing to sell them a terrible car at a terrible price, but they get less legal protection if they buy one. So unless you can't get enough of those doughnuts in the repair shop waiting area, used car shopping is not something to be done in a hurry, without first getting some education.
Don't worry; we've got your back. We've updated our very popular article, How To Get a Used Car Bargain, which walks you through step-by-step instructions on how to:
- Decide Your Price Range and Arrange Financing - Identify and Locate Your Target Used Cars - Test-Drive a Used Car - Negotiate - Close the Deal
In an attempt to ignite sales and instill confidence in the post-bankruptcy automaker, GM will begin a 60-day no-questions-asked money-back guarantee offer for all its new 2009 and 2010 vehicles. GM will begin the new program Monday, September 14 and extend it through November 30.
Offering new cars with a no-questions-asked money-back guarantee has not been attempted in the U.S. auto market before, GM said. Guarantees from Oldsmobile and Saturn offered return policies which were not as comprehensive. A similar program offered in the U.K. by GM's Vauxhall resulted in a 2-3% return. GM expects a comparable rate of return here in the U.S.
Every time I purchase an expensive item, I'm reminded of the importance of providing useful and clear research tools for automotive consumers. This weekend I came to the conclusion I needed a new bed and was about to head out to the mattress store when I smacked myself in the head. "You idiot," I said to myself. "You make your living providing information to people so that they don't do what you're about to do -- buy something without doing any research before hand."
So I did research, lot's of it. I found a great article on ConsumerSearch.com and valuable comparative studies at SleepLiketheDead.com, eventually coming to the decision that a memory foam mattress would be the best thing for me. I then went to a mattress store with loads of info in hand, test napped some beds, then decided to order one online.
I walked away with a new appreciation for the sheer wealth of automotive consumer information out there -- there was very little for beds. But I also was reminded of a few things that could help you in your new car search.
And yet, as a professional negotiator, the salesman probably believes the old saying, "The person who speaks first, loses." Making the wrong offer can hamstring your good deal. So how do you know where to start? Too low and they laugh or throw you out. Too high and you leave money on the table.
Recently, with GM selling cars in California through eBay, we advised shoppers to use the "Make an Offer" choice. But apparently the offers were all over the place and didn't result in many sales. So we came up with a solution.
General Motors began experimenting with online sales through eBay on August 11th using California as a test market. This pilot program was set to expire on September 8th, but our associates at Auto Observer report that the program has been extended through September 30th and could possibly be offered nationwide. Buying anything online requires a little research and savvy, and as previously reported here at Edmunds.com, we suggest buyers select the "Make and Offer" rather than the "Buy it Now" option in order to secure the best price. We also urge buyers to make use of our list of Starting Offer Prices in order to place a realistic bid and expedite the process. The list, broken down by make and model, recommends an initial bid that is between 6% and 11% below MSRP depending on the model. Happy Bidding!
I recently sold our Long Term 2008 Ford Focus SES Coupe and the next day got a thank you email from the buyer. He said he had driven the car on a short trip and just loved it.
Car enthusiasts reading this are screaming in agony decrying the Focus and saying he should have bought this, that or the other car that was far superior. But this buyer was perfectly happy with the Focus. And why not? For him it was a big step up. It's reliable, fuel efficiency and he likes the color.
I often get calls from people asking what car they should buy. I act a bit like a psychiatrist who never takes a firm position but always asks, "Well, how do you feel about that?" Choosing the right car is both infinitely complicated and absurdly simple. But here are a few things that I do know.
As reported over at our InsideLinesister site, Audi has announced official pricing for the 2010 Audi Q7. The base model has been dropped from the lineup and pricing (including destination) is unchanged on the 3.6 Quattro Premium (at $47,725) and the TDI Quattro Premium (at $51,725) while the top-dog 4.2 Quattro Prestige sees the formally optional S Line package made standard, increasing its price to $61,825.
The Cash For Clunkers government sponsored rebate program ended Monday at 8 p.m. EDT (5 p.m. PDT), but the deadline for dealers to file paperwork associated with the program was extended until noon EDT Tuesday. Though the deadline for completing sales under the Cash For Clunkers program (aka CARS) did not change, due to a glitch in the computer filing system, the government decided to give dealerships some extra time to file paperwork.
According to a statement issued earlier Monday by the Department of Transportation (DOT), "Despite a large increase in the system's capacity, the Web site was down temporarily this afternoon. Because of the temporary shutdown, dealers have been given extra time to file the necessary paperwork."
This extra time to file paperwork does not mean that dealers may continue to accept Clunker trade-ins after the sales cutoff Monday evening. But it may mean that potential deals made late in the day will have time to be submitted.
The DOT says the Web site used by the dealers to submit paperwork was brought down by "overwhelming demand." It's likely that another extension to the filing deadline (but not the sales deadline) may be granted if additional capacity to handle the crush of inbound filings is not successful.
The news stories I've been reading about Cash for Clunkers are all over the place. Some call it a complete failure while others call it a roaring success. As clunkers wraps up today at 8 p.m. EDT, I thought it would be good to look back on this incentive program which has hit its share of potholes but has definitely moved the metal.
We would love to hear from anyone who has cashed in on this program, or tried to participate without success. What did you trade in and what did you buy? For how much? And most importantly, did it go smoothly, or did the dealer play games with you?
The Cash for Clunkers program (aka CARS) ends today at 8 p.m. EST (5 p.m. Pacific time). If you are one of those people that waits until the last possible minute to get things done, today is your LAST DAY to take advantage of the government rebate on your old car. Here's a crash course on Cash for Clunkers:
You have until 8 p.m. EST tonight (5 p.m. PDT) to get the deal completed. There may be of number of people trying to get deals done before the deadline, so we reccomend getting as early a start as possible.
Make sure all your paperwork is in order. Dealers are being strongly advised to submit complete applications. They want to get paid and you want to get your credit, so make sure you bring proof of insurance, registration, and your car's title. If you're not sure what specific items to bring, refer to our FAQ page.
These are the list of eligible trade-in vehicles. Keep in mind that if your vehicle is worth more than $4500, this program does not make financial sense for you. We also have a chart that outlines what the requirements are on the trade-in vehicle.
These are the list of eligible new cars. Just click on the brand you want and you'll see the vehicles that get the required mpg. Not sure what to get? Here are 10 good clunker replacements.
Should you buy your next car online? And by "online," what do we really mean? Can you really click a button and have a car show up in your driveway?
GM has launched a month-long experiment to sell cars through eBayMotors in California. Some early figures are in. And the results are, well, intriguing...
Boy, have you come to the right place to learn about negotiating for cars. Negotiating with auto dealers -- or even with private parties -- can be one of the most intimidating parts of the car-buying experience. Most of us would rather skip the fireworks and just get a great deal.
That angst is what launched the Saturn brand, with its fixed-price policy, and led to the "no haggle pricing" campaigns you sometimes see. But truly, you don't have to have years of negotiating experience to get a spectacular deal. In fact, you may not need to negotiate at all.
The federal Cash For Clunkers program (aka CARS) is scheduled to end today, August 24 at 8 p.m. EDT (5 p.m. Pacific). Department of Transportation (DOT) Secretary Ray LaHood announced last week that the program will end Monday because most of the $3 billion allocated for the program has been spoken for.
"It's been a thrill to be part of the best economic news story in America," LaHood said according to a statement issued last Thursday. "Now we are working toward an orderly wind down of this very popular program."
The Cash For Clunkers program will have run one month since its July 24 kickoff, having burned through its initial funding of $1 billion in less than one week. Refunded with an additional $2 billion, the program's popularity has it ending before its expected run through Labor Day.
According to the DOT, by last week paperwork for 457,000 vehicle sales had already been submitted, accounting for $1.9 billion in funding. Many dealers have been complaining of the large backlog in claims they've submitted, and many have already opted out of the program. The DOT stated that 170,000 applications had been reviewed so far, accounting for $145 million in payouts.
With the suddenly shutdown of the popular Cash for Clunkers program only four days away, we pulled together 7 tips to help last minute shoppers get a good deal on a new, more fuel efficient vehicle.
The surprise announcement from the Department of Transportation Thursday afternoon means that shoppers will have to act fast to take advantage of the $3,500 or $4,500 incentive program. All applications for Cash for Clunkers deals will have to be filed by 8 p.m. Monday, Eastern Daylight Time, Aug. 24.
Here then is our list of 7 essential shopping tips.
Notwithstanding the recent Congressional approval of additional funding, the Cash for Clunkers program looks to be sputtering like one of the countless euthanized engines left in its wake. Edmunds' own AutoObserver is reporting that the initial surge of consumer interest has abated, with "new-vehicle purchase intent" figures down 31% since the program's inception in the last week of July.
A number of factors are at play. The new infusion of government money, for example, has attenuated the initial sense of urgency, which was fueled by fears that funds could run out. And with dealer inventories dwindling in the face of the Clunker-driven spike in demand, prices are rising, making consumers less eager to act.
For more information, take a look at AutoObserver's full story here.
General Motors and Honda are the latest companies to begin boosting their production for vehicles that are selling well under the Cash for Clunkers program (Ford announced the same last week). Automakers, which had originally cut inventory back drastically due to poor sales, are responding to dealers who screaming for more small and fuel-efficient vehicles to sell before the Cash for Clunkers money runs out.
The ramped-up production is good news for some consumers who were having trouble locating the car they wanted. For all the details on the models affected and what it means, see our AutoObserver entry.
Two people can go into the same dealership and buy the same kind of car at prices thousands of dollars apart. Why? The obvious answer is that one person is a better negotiator. The other answer is that one person knows more about car pricing than the other person.
The way cars are priced is complicated. It's nuts. It doesn't make sense. But unfortunately, we're stuck with it. Here's a quick review of a few things that could save you a lot of money.
According to an upcoming release from the National Highway Traffic Safety Administration (NHTSA), consumers who are not finding the car they'd like to buy on dealer lots under the Cash For Clunkers program (aka CARS) will be able to order a qualifying vehicle and still receive the rebate.
As dealer inventories of the most popular cars in the program are depleted (including Ford's Focus and Escape, Dodge Caliber, etc.), NHTSA is stepping in to modify the rules of the Clunkers program. It's hoped the change will help keep the program's momentum going as the selection of new cars has dwindled, making it harder for consumers to find a decent selection of qualifying purchases.
Per the upcoming announcement, if consumers want to order a vehicle under the CARS program, the dealer must obtain the Vehicle Identification Number (VIN) from the manufacturer before submitting the transaction. To obtain a VIN, the vehicle must already be in the production pipeline. All required documentation for the trade-in vehicle must also be in order for the rebate request to be considered.
"The Department of Transportation is trying to make sure that everyone who wants to can participate in this wildly successful program," explained U.S. Transportation Secretary Ray LaHood. "Allowing consumers to order vehicles and qualify for the rebate will expand buyers' choices and keep production lines running."
The latest highlights from Edmunds.com and its blogosphere.
IL News: General Motors Offers Zero-Percent Financing on Top of Cash for Clunkers
The demand for the cash for clunkers
(C4C) program has been outstripping the supply, and now General Motors hopes to stoke the fires even further by offering zero percent financing on eligible C4C models. The special rate runs from now until August 31, 2009. Buyers not interested in the zero percent financing can instead get $1,000 in customer cash.
Auto Observer: California GM Dealers List Cars on eBay General Motors is beginning a trial run of its "virtual showroom" in conjunction with the online auction house eBay. So far, 90 percent of California Dealers have signed on, and are expected to list about 200,000 vehicles. These will be posted as "buy it now" listings, rather than traditional auctions. Buyers can also choose to submit a lower offer than the listed price.
Green Car Advisor: GM Unveils Volt Charging System Since a public infrastructure for charging the upcoming Chevrolet Volt is not yet in place, GM is equipping its plug-in hybrid to be charged at the owner's home. The charging system was debuted at a plug-in conference in Long Beach, Calif. GM is still debating between the 100 or 240-volt setup.
Having a good car-buying experience means choosing the right dealership. But how do you know, at a glance, if a dealership is going to treat you well? We've compiled a list of tip-offs to help you spot the bad dealerships, so you can go elsewhere before you get too deep in the process.
The smashingly successful Cash for Clunkers program -- which panicked Congress into authorizing $2 billion in additional funds -- saw new car sales skyrocket. So how is it possible that sales could drop to their (awful) pre-program levels as soon as nine days from now?
Michelle Krebs reports in AutoObserver that the pool of buyers who have eligible clunkers -- and the wherewithal to finance a new car -- is drying up. Sales are already down 15 percent from last week's peak.
Telematics has been dominated by OnStar since the service first launched over a decade ago. And while other automakers, including BMW and Mercedes, offer their own telematics systems, OnStar has become the Kleenex or Xerox of the field and synonymous with telematics service.
Even if most car buyers have no idea what the term "telematics" means, when they think of features such as automatic crash notification, remote door unlocking and other off-board safety and convenience services, they think of OnStar, thanks to the GM-owned company's massive marketing efforts.
But OnStar is facing increasing competition. Ford launched its 911 Assist service in December 2008 by including it on all new Sync-equipped vehicles, and owners of most '08 and '09 Sync-equipped vehicles can get the service by having a dealer upgrade the system's software for a nominal fee.
Meanwhile, Lexus -- a former customer of OnStar with its Lexus Link telematics service, which will continue in "legacy" mode on models still in service -- recently launched its Enform with Safety Connect system on the new 2010 HS 250h hybrid and, like Ford, plans to eventually include it in all of its cars.
While it isn't feasible for us to test the crash-notification aspects of telematics systems -- at least not with the press cars we drive -- we checked out the latest convenience services offered for Ford's Sync system and Lexus Enform that best compete with OnStar. And we found that while Ford takes a radically different approach, Lexus plays it safe but throws in a few unique features.
In an effort to draw more consumers to Buick, Chevrolet, GMC and Pontiac vehicles, General Motors dealers in California will begin listing cars on eBay starting tomorrow, Tuesday, Aug. 11. It is the first time Ebay has entered into such a specific relationship with an automaker, creating a "virtual showroom online."
The program is designed to allow customers to comfortably shop online and even initiate the purchase process while at the same time including dealers. Thus far 90 percent of California's Buick, Chevy, GMC and Pontiac dealers have agreed to participate, while Cadillac is on a wait-and-see basis awaiting early results of the program.
The latest highlights from Edmunds.com and its blogosphere.
IL News: 2010 Ford Taurus named a Top Safety Pick by IIHS The all-new 2010 Ford Taurus was selected as one of the IIHS' Top Safety Picks. In addition to its ability to keep occupants safe in a variety of collisions, the Taurus gets high marks for its numerous high-tech safety features like cross-traffic alert, blind-spot monitoring, forward collision warning and Ford's programmable MyKey system.
Green Car Advisor: Obama Administration Grants $100 Million for EV Charging Infrastructure Program The Obama administration awarded a nearly $100 million grant to little-known Electric Transportation Engineering Corp. (eTec) in Phoenix, AZ. eTec has been charged with the creation of an electric vehicle charging infrastructure to support the new Nissan Leaf electric vehicle (EV). This pilot program aims to install about 2,500 charging stations each in Tennessee and Oregon, the cities of San Diego and Seattle, and the Phoenix/Tucson area -- the same markets which will receive their share of 5,000 Leaf EVs.
IL News: Ford Mustang and Porsche Panamera Customization Sites Go Live Curious to see what the Mustang of your dreams would look like, or what the worst color combinations are for a Porsche Panamera? Now you can. The new customization sites allow users to see what affect their options and trim levels have on the exterior and interior appearance -- from the sublime to the ridiculous.
Our raw data is generated by a large Edmunds.com team consisting of statisticians, data collection and processing staff, and our pricing analysts. It's complicated stuff. Edmunds has spent many years and millions of dollars gathering and refining our methodology. It just doesn't get any more reliable.
We regularly share some of this data with the media, and you've even see us quoted on the Senate floor if following the C4C debate. You can find a list of the reports we've made public by viewing our Press Releases. Because our information is proprietary, though, we don't offer our data for sale or license. If you don't find what you are seeking through one of the links above, you can try one of the organizations listed here.
Mitsubishi has just released official pricing for its new hatchback variants of the Lancer GTS and Lancer Ralliart. Dubbed "Sportback", these Lancers offer greater cargo capacity (and in the eyes of some, better styling) than the sedans. Specifically, the Sportbacks offer an impressive 52.7 cubic feet of maximum cargo capacity, or about 9 cubes more than their chief Subaru Impreza rivals.
The GTS (which has the 2.4-liter, 168-hp inline four) with a 5-speed manual starts at $19,190 (not including destination). Fitted with the CVT (Continuously Variable Transmission), it's $1,000 more. The Ralliart version boasts a 237-hp, 2.0-liter, turbocharged four that sends the power to the ground via a six-speed automated dual-clutch manual gearbox and all-wheel drive. The price for all that performance along with room for your Ikea spoils? $27,590.
When classic and collectable cars skyrocketed in value for the better part of this decade, it was a great time for some, a bad time for others. Genuine car enthusiasts who weren't blessed with great wealth were cut out of the market, replaced by "investors" who, feeling they had jumped aboard a gravy train, gleefully drove the prices up at the big classic car auction houses.
Recently, thanks to the crummy economy, values have "corrected" themselves and there are some great deals out there. Still think you have to spend $35,000 to $50,000 for a nice Chevelle SS, Pontiac GTO or Mustang Mach 1? Think again...
Cash For Clunkers has received another boost. The U.S. Senate ground past 8 p.m. tonight to pass an un-amended version of a funding bill that sailed through the U.S. House last week. The bill provides an extra $2 billion for the wildly popular Cash For Clunkers program (aka CARS), and is expected to fund the program through Labor Day.
Though originally conceived with a $4 billion budget, Cash For Clunkers launched July 27 with only $1 billion in funding, which was depleted far faster than anyone had anticipated. This additional funding boost will bring the total Cash For Clunkers budget to $3 billion, and is expected to stimulate an additional 500,000 new car sales. Though the bill for extra Clunkers cash sailed through the House last week with wide bipartisan support, the Senate narrowly passed the bill along party lines: 60-37.
Now that new funding has become available, be sure to check out our Cash For Clunkers page for details on how to qualify for the program, see our lists of eligible trade-ins and purchases, and take a look at our Tips and Advice section to help you get the best deal on a new car.
An agreement has been reached in the Senate to move forward with another $2 billion in funding for the Cash for Clunkers auto incentive program. A vote is being called for today after Republicans have said they will drop their opposition to the program.
Despite a week of frantic activity, which saw dealerships packed with car shoppers for the first time in a year, critics have emerged saying the bill should be changed or killed. Though many detractors are quite vocal, there has been enough enthusiasm to add funds to the initial $1 billion allotted to clunkers. Despite initial concerns, there is still money remaining from the first installment so there has been no break in granting the $3,500 or $4,500 to car shoppers.
For all the latest details, including an analysis of the success of the program so far, please see our Auto Observer article.
If you have a federally recognized "clunker" on your hands and happen to be jonesing for a new Audi, this is your lucky month. Audi has waded into the fray by announcing an additional $1,000 consumer incentive on Cash-for-Clunkers transactions from today through August 31.
The incentive is valid for most 2009 Audis with the 2.0T power plant and some leftover 2008 models as well. Notable exceptions include the Q7 SUV and A5/S5 performance coupe -- and a notable inclusion is the V6-powered 2009 Q5 crossover. For more information and a complete list of eligible Audis, check out Audi's official press release.
U.S. Transportation Secretary Ray LaHood predicted today that the U.S. Senate will replenish the popular cash-for-clunkers program with an additional $2-billion. Senate Majority Leader Harry Reid echoed his statement, declaring today that the Senate will vote to extend the popular "cash-for-clunkers" program before going home on Friday. In the meantime, LaHood wants people to feel confident trading in their old gas guzzlers.
"We have enough money to continue," he said. "We encourage people to go into dealerships." LaHood said the administration had processed 157,000 claims, totaling $664 million of the original $950 million allocation. It's estimated that the balance in the fund will cover another 67,600 vouchers, enough to cover the program until the Senate vote.
There had been serious concerns that the program would be victim of its own success, and there wouldn't be enough money left to continue taking old guzzlers off the road.
In a related development, sales of used are experiencing an unexpected bump from the C4C program, even though they aren't eligible. Consumers who drive their old cars into dealerships -- only to discover that their clunkers don't qualify -- decide to trade their wheels in on a later-model used vehicle.
Add in new car production cuts, and you've got an effective recipe for rapidly rising used car prices. Prices are expected to continue to climb through August.
So whether you're looking for a new car in an ever-dwindling supply, or looking to buy used before prices shoot higher, the phrase, "He who hesitates is lost" rings true.
The latest highlights from Edmunds.com and its blogosphere. Green Car Advisor: Nissan Turns New Leaf with "Affordable" EV The Nissan "Leaf" is the company's newest entry into the electric vehicle market. This five seat hatchback is expected to have a range of 100 miles per charge, and a top speed of 90 mph. The Leaf will be available for purchase in select U.S cities by the end of 2010, with an estimated price range of $28,000-$35,000.
Inside Line: 2010 Subaru Outback First Drive The redesigned Subaru Outback is larger and better equipped than the outgoing model. The 2010 Outback's increased size has changed its prospective competitors. It will now face off against the Toyota Venza and the Hyundai Santa Fe, rather than the Audi A4 Avant and the Volkswagen Passat 4Motion.
AutoObserver: Feds: Cash For Clunkers Saving Gas The success of the Car Allowance Rebate System (aka Cash for Clunkers) has succeeded in getting gas guzzlers off the road and into more fuel efficient vehicles. According to the Obama Administration, 83 percent of the trade-in vehicles have been trucks. Additionally, the program has improved fuel economy by an average of 61 percent per vehicle.
The auto sales gusher could be turned off Tuesday if the U.S. Senate fails to approve an additional $2 billion in funding for the Cash for Clunkers program.
The surprisingly successful program exhausted the first $1 billion in about a week and the House quickly approved additional funds to keep clunkers running. Now the fate of the program rests with the Senate where two senators dropped their opposition Monday saying the program is having the desired environmental effect.
Also on Monday, Cash for Clunkers was credited with driving a healthy sales spike which gave Ford their first positive sales month in two years.
But all that momentum could be reigned in if the program is halted by lack of funds. While the measure was debated yesterday a vote is expected sometime today.
While clunkers was being praised by many, it was clear that the program was not exactly user friendly. Shoppers reported that the paperwork required took hours to complete. Dealers were confused about how to dispose of the trade-ins. Furthermore, while the cash behind the program was dwindling, the number of replacement cars on the lot was also diminishing.
The U.S. Senate was scheduled to debate the future of the Cash for Clunkers Monday as two chief opponents indicated they would drop opposition to the popular incentive program.
Sens. Dianne Feinstein and Susan Collins said in a TV interview that she considered the mileage improvements in the bill to be acceptable. Earlier, the senators had threatened to use the debate to improve mileage requirements.
Now the only resistance may come from the Republicans who have portrayed Cash for Clunkers as unnecessary government intervention. The early success of the clunkers program was portrayed by the GOP as due to a recovery that was already in progress.
Now, it looks likely that the additional funds may be voted on by the Senate later today. Without a quick approval in the Senate, the program is likely to be terminated. For more information see our story on AutoObserver.
After a weekend in which a White House spokesman told the American public "go buy a car," many shoppers might be left wondering if they still have a green light under the cash for clunkers program.
Friday was a roller coaster day for dealers with the White House guaranteeing deals through the weekend and the House of Representatives approving an additional $2 billion to subsidize the trade-in of old cars for more fuel efficient vehicles.
A $2 billion extension for the Cash For Clunkers program has passed a U.S. House vote, and will now head to the Senate next week where it is expected to face stiffer opposition. The rapid proposal and vote was in response to the wildly popular incentive program being in danger of over-stripping its funding only a few days after its official launch.
Part of the opposition is expected via senators from Maine and California, who expressed that their initial support for the CARS program was with the caveat that any additional funding for the program would address their concerns for more stringent fuel economy requirements for new vehicles purchased through the program.
The White House has insisted that the program will continue to run through the weekend, though any real delay in the Senate next week could easily suspend or derail the program. "The administration is comfortable and confident that the money," explained White House Press Secretary Robert Gibbs, "...the previous money that was allocated through the supplemental appropriations is enough to cover those transactions and to continue operating the program."
Everyone wants to "time the market" with a new car purchase if they can, just like they try to do with stock prices or mortgage interest rates. That's why there are so many theories as to the best time to buy a car. Many of those theories aren't very reliable. What is true is that we are at moment in history where the factors influencing car deals have converged to make this an incredible time for bargain hunters.
One of the important things to remember, though, is that there is a lot of pent-up demand for new cars. Manufacturers have also cut back drastically on production. In the not-so-distant future, those factors will combine to drive the prices back up.
Where does this leave consumers who are trying to figure out when to make the jump?
Cash for Clunkers (aka CARS) trade-ins will be accepted through the weekend, a government spokesman announced Friday morning as Congressional lawmakers planned to vote Friday on another $2 billion in potential funding for the popular program. The rapid action is due to "Cash For Clunkers Suspended" rumors flying around the Web.
This means that car buyers hoping to visit the car lot this weekend to trade-in their old car for a $4,500 or $3,500 Clunkers credit should be able to participate in the program.
Thursday afternoon the government announced that the program was being suspended at midnight because most of the $1 billion allocated was in danger of being used up. The fear was that dealers taking clunker trades wouldn't be reimbursed.
But Friday morning lawmakers scrambled to keep the wildly successful program alive. Many dealers had invested in clunkers advertising and it was feared that a hiatus would kill the momentum. Stay tuned, as Edmunds Daily and AutoObserver will continue to bring updates on the program.
As reports swirl that the U.S. government is suspending the wildly popular Cash For Clunkers program (aka CARS) at midnight on Thursday -- under fears the $1 billion in funding may not be enough to cover the backlog of sales already completed under the program -- White House officials claim they are seeking ways to keep the program running.
According to representatives from the National Automobile Dealers Association (NADA), they have been contacted by Department of Transportation (DOT) administrators to alert them that sales not completed by midnight Thursday may not be honored under the program. According to the Associated Press, White House officials had released a statement saying that "consumers should have confidence that transactions under the program that have already taken place would be honored."
Complicating the funding issues is the scheduled Congressional summer break, as the U.S. House was set to adjourn on Friday for its annual month-long summer recess. Edmunds Daily and our industry news experts at AutoObserver will continue to track the progress of the program, posting more details as they become available.
Edmunds AutoObserver is reporting that the Department of Transportation is expected to make an announcement as soon as this evening regarding the status of the so-called Cash for Clunkers program, and how close the program is to running out of its $1 billion allocation -- if it hasn't already, as dealers and dealer organizations believe it has.
The DOT could announce the program has run out of money completely or could suspend it temporarily while deals in the pipeline are completed and an assessment is made of how much has been spent, Washington sources told Edmunds' AutoObserver.com.
A DOT spokesman said no announcement is yet scheduled, but if an announcement is made, it would be posted on the website for the Car Allowance Rebate System (CARS). From the start, the program called for a Nov. 1 expiration or the depletion of the $1 billion in funding. It is clear the program will run out long before Nov. 1 and could run out in a matter of days.
The U.S. Department of Transportation (DOT) has decided to honor any Cash For Clunkers (aka CARS) deals made prior to July 24 that included any vehicles that qualified before the EPA modified its combined mpg numbers.
The EPA published new combined mpg numbers on July 24, knocking 78 vehicles out of contention for the CARS program while making 86 new models eligible. The DOT has stated that it will not honor any Cash For Clunkers deals completed after July 24 that include those 78 vehicles, but all of the 86 new models added will continue to qualify. Check out AutoObserver for the latest comments from the DOT.
Cash for Clunkers was supposed to be a "win-win" situation for dealers and for car buyers. But it looks like some dealers have decided they will be the only ones winning.
Dealers were supposed to apply a $4,500 or $3,500 trade-in credit to the lowest negotiated price of a new car. But now that the program has rolled out we are getting reports that some dealers believe they are entitled to raise prices to adjust for this new government incentive.
Regardless of these problems, Cash for Clunkers is definitely moving metal. In the first days of the program over 4,000 clunkers have been traded in on new cars. There's still lots of money left though -- the Cars.gov site reports that over $875 million is remaining.
Still, reports of dealer high jinks are troubling. Here are a few things we've heard from the car lot.
The latest highlights from Edmunds.com and its blogosphere.
IL News: Details of 2010 Acura RDX Revealed The Acura RDX has been redesigned for 2010. The most prominent cosmetic change is the addition of the Acura's corporate grill and new alloy wheels. Pricing starts at $32,520 for the new front wheel drive model. Follow the link for more photos and details.
AutoObserver: The Inconvenient Truth About "Cash for Clunkers" There is still a fair amount of debate on whether or not Cash for Clunkers is the shot in arm that the auto industry needs to get back on its feet. There are great deals out there for consumers who qualify. But how much does this cost us as taxpayers? Are we funding something that people would ordinarily do? Follow the link for the answer.
The Car Allowance Rebate System (aka Cash for Clunkers) stumbled out of the starting gate yesterday, due to a last minute refresh of the eligible mpg ratings. When we broke the story yesterday, the EPA had not commented on how many vehicles were affected.
This morning the EPA put out a press release stating that "In support of the new CARS program, the government conducted a month-long quality assurance and quality control effort regarding fuel economy calculations on more than 30,000 vehicle model types spanning the past 25 years."
According to the EPA, there were roughly an equal number of vehicles that became eligible as those that were no longer eligible. Of the 30,000 vehicles they looked into, the eligibility for about 100 vehicles was affected. We don't fault the EPA for wanting to have the most accurate records possible, but it would have been extremely helpful to give consumers a heads up that the data was changing -- before the program kicked off. See the text of the release after the jump.
We're still working to clarify the details, but it appears that the EPA has "refreshed" its combined MPG ratings of some older cars, meaning that vehicles that appeared to qualify last week for the federal Cash For Clunkers program (aka CARS) no longer qualify.
Edmunds learned of these changes over the weekend from consumers who had checked last Thursday that the vehicle they planned to trade in under the Cash For Clunkers program met the minimum mileage rating (an EPA combined rating of 18 mpg or less). When shopping for a new vehicle over the weekend, they learned they no longer qualified.
Edmunds is currently reviewing the more than 32,000 vehicles affected to determine the extent of the changes. Two examples are below, and we'll be providing updates on this seemingly ill-timed "refresh" as more details become available.
1993 Camry Wagon V6 original EPA combined rating: 18 MPG / "Refreshed" rating: 19 MPG 1992 SAAB 900S Auto original EPA combined rating: 18 MPG / "Refreshed" rating: 19 MPG
Friday was the start of the government program (or one of the "starts") designed to stimulate car sales and take gas guzzling polluters off the road. But Friday saw dealers scratching their heads in confusion, reading the mammoth rules document and trying in frustration to register online.
Furthermore, NTSHA (National Highway Traffic Safety Administration), the administrating agency, said money won't be available for dealers until Monday.
Still, Cash for Clunkers (or C4C) seems popular with consumers and interest is building on many other fronts. Here are a few late breaking developments.
With car shoppers expected to flock to dealership lots to claim the government's "Cash for Clunkers" credit, BMW has created an incentive of its own -- a $4,500 "Eco Credit" for its two new diesels, the 2009 335d and the X5 xDrive 35d.
BMW's Eco Credit is in addition to the "Cash for Clunkers" credit so a car shopper could be looking at the 335d would get a price reduction of $9,000. (Since the X5 has a base MSRP of over $45,000, it doesn't qualify for the Cash for Clunkers credit.)
Additionally, the 335d qualifies for a $900 alternative fuels tax credit and the X5 XDrive35d qualifies for a $1,800 credit. Finally, the sales tax on both cars is also tax deductible.
With Cash for Clunkers rolling out today, many manufacturers are viewing this as a chance to boost lagging sales. Some carmakers, such as BMW, are doubling the government's credit.
This morning the National Highway Traffic Safety Administration (NHTSA) has released the rules surrounding the much anticipated Cash for Clunkers program, what NHTSA has labeled the Car Allowance Rebate System (CARS). The program will officially kick off on Monday, July 27 with a shindig at NHTSA's headquarters, featuring Transportation Secretary Ray LaHood and a gaggle of fuel efficient vehicles from a number of manufacturers.
The CARS rules document is 136 pages long so it'll take us and most dealers a little time to get through all the details, but we'll be bringing you a summation of the salient points as soon as possible. All the major requirements spelled out on our Cash for Clunkers page seem intact, with the majority of the details going to describe the submission process for dealers and what happens to your old car after you trade it in. There's been a number of matching incentive programs from manufacturers, including promotions from Chrysler and BMW.
Check back in soon for an in-depth analysis of the final CARS rules.
As state tax offices, automakers and dealers wait for details to arrive on the federal government's Cash for Clunkers plan tomorrow, there's tremendous confusion on the issue of sales tax: Should dealers charge customers sales tax on the price of their new vehicle before the federal tax credit is applied, or after?
The answer -- at least for today -- is that it depends.
Who would've thought that the day would come when people would buy cars without actually "kicking the tires", you know, seeing the car in person? Now, with eBay (and other sites such as AutoTrader), not only has this happened, but it's proven wildly successful. Thanks to high-resolution photos and the option of having a mechanic check out your internet find, this method of buying used and classic cars is no longer considered strange or foolish.
But once you find that cherry '89 Firebird Formula 5.7 with only 12,000 one-meticulous-owner miles, you've got to get that baby home. If it's far away, you may want to fly out and make a road trip of it, but most buyers elect to have the car shipped. To get the skinny on how to go about this, check out this Edmunds article on How to Ship a Car You Bought Online.
Combine a $4,500 Cash For Clunkers (C4C) rebate with the applicable federal hybrid tax credit ($1,700) and you can get yourself behind the wheel of a 2010 Fusion Hybrid for only $21,795.
So you've got a clunker that qualifies for the $4,500 rebate, and now you're wracking your brain for options for a replacement car. We're thinking along the same lines even though we aren't likely to cash in -- at Edmunds, we go fantasy car shopping all the time. So we put together a short list of vehicles, their combined fuel efficiency ratings, and figured out what the net cost would be after the government's C.A.R.S. (aka Cash For Clunkers) incentive.
We're not saying these are the only choices out there. We're not saying these are the greatest cars ever built. We're just saying these are 10 great cars you should take a look at if turning in a clunker. And we tried to put together a variety of makes and body types to jog your thinking. For a complete list of eligible trades and replacements, see our Cash For Clunkers page.
Keep in mind that final details of the program are not expected until July 24, and that all the vehicles listed here are the base model with an automatic transmission. We also assumed for the purposes of this exercise that these replacements would get the maximum credit amount of $4,500. Take a look after the jump.
The latest highlights from Edmunds.com and its blogosphere. Straightline: 2010 Audi A5 2.0T Starts at Under $40,000
It is now slightly less expensive to get into an Audi A5
. Buyers, who opt for the four-cylinder engine and a manual transmission, can get the stylish coupe for $36,825 including the destination fee. Follow the link for more details on the available packages.
Auto Observer: 100,000 Plus Car Shoppers Waiting to Buy, Edmunds.com Calculates Edmunds.com analysts have been noticing a surge of people whose research hasn't yet translated into vehicle sales. Their data points to a correlation between the unemployment rate and the average trade in mileage. Will the upcoming cash for clunkers program, be the spark that gets these buyers off the fence?
Green Car Observer: Pricing Announced for the 2010 Lexus HS 250h Lexus' first dedicated hybrid will go on sale this August. Pricing begins at $35,075. This is a $7,055 premium over the top of the line Toyota Prius. Follow the link for more details on the available packages. Auto Observer: Pontiac G8: The World's Best Car Nobody Was Buying The Pontiac G8: a car that was simultaneously the high and low point of Pontiac's tumultuous history. Auto Observer's Bill Visnic best summed up the G8's quandary: "Problem was, all the love from this horde of enthusiasts, supporters, cult appreciators and basement bloggers never extended to hitting the showroom and actually buying one."
You don't need a decoder ring to figure out what all those numbers mean. Honest.
A Vehicle Identification Number, or "VIN," is the 17-digit string of numbers assigned to an individual vehicle by its manufacturer. The VIN can reveal a lot about a car, including ownership, accident and repair history. Typically, the VIN is stamped into a plate and mounted on the dashboard near the windshield or on the driver's side door jamb.
Decoding a VIN Certain digits in the VIN identify a vehicle's attributes, including its final point of assembly, its model year, the manufacturer and, usually, the model of the vehicle. For a really thorough description of how to read a vehicle's VIN, please see our article Making Sense of Your VIN or the CarSpace Guide, How to Decode VINs. But you can get the basics by using the Pronto VIN Decoder. We put one of our personal cars into the decoder, and here's what we got back:
Though we've provided an impressive research page on the CARS Program (aka Cash for Clunkers), which includes lists of eligible trades and qualifying purchases, the Clunkers frenzy has prompted many automakers to set up some slick pages on their own web sites in an effort to capitalize on the buzz. Some dealerships have even jumped the gun, and began offering to honor the program before its official start day of July 24, 2009.
Though it may seem tempting to get ahead of the curve, we recommend waiting until the 24th. Take this time to research and truly find the right car for you.
After the jump, we've gathered a list of automaker sites featuring CARS information pages. For instance, if you're interested in a Honda, click on their link, and you'll see which of their models are eligible. Some automakers like Ford and GM, let you input your current vehicle's information to see if it will qualify for the program.
The latest highlights from Edmunds.com and its blogosphere.
Inside Line News: 2010 Nissan 370Z Roadster Pricing Announced Nissan's newest convertible will retail for $100 more than the outgoing 350Z. The 370Z Roaster will be offered in four trim levels, and can reach upwards of $42,500 for the Touring model with the seven-speed automatic transmission.
Green Car Advisor: Honda CR-Z Hybrid Should Reach U.S. Shores Next Year Honda's newest hybrids will be making their way to Japanese showrooms in February 2010. In the U.S. however, only the sporty, three-door CR-Z hybrid will be sold later that year. Honda currently has no plans to bring a hybrid Fit to the U.S.
Auto Observer: GM's Lutz Already Making 'Em Nuts Bob Lutz's recent comments on the future of the Pontiac G8 have caused quite a stir at General Motors. But this comment may have deeper implications in terms of which direction the new GM is headed.
As it emerged from bankruptcy GM announced it is considering selling new cars on eBay.
Car dealers have always had a love hate relationship with the internet. Mostly hate.
In 2000 when the internet was first sending ripples of terror through the car business, dealers fought to beat back the transparency that the internet brings to the buying process. A few years later, at a NADA conference, dealers talked smack, bragging how they had repelled the attack and how "all roads still lead to the dealership."
But now a humbled GM, reemerging from a speedy bankruptcy last week, announced it's working on a deal with eBay Motors to sell its new cars on the internet. The cars would still be delivered by local dealers.
Is this a path to profitability for General Motors? Or just lipservice to a generation of young buyers who currently get their books, music and movies with just a coupla clicks.
The latest highlights from Edmunds.com and its blogosphere.
Inside Line News: Kia Forte Koup Koming in August The 2010 Kia Forte Koup, the company's first coupe, will be available for sale in the U.S. later this summer, a bit earlier than expected. A competitor to the Honda Civic and Scion tC, the Koup will come in base EX and sportier SX trims; the SX is expected to come in at just under $20,000.
Green Car Advisor: The Climate Bill and the Cars We'll Drive The climate bill, which will have a big impact on the cars of the future, has passed the House of Representatives and will go to the Senate this fall. The bill covers incentives, EV charging, flex fuel and emissions. Senate Majority Leader Harry Reid has set a December deadline for the bill to go in front of President Obama, but it's unsure whether the bill can get the votes it needs to pass in the Senate.
Karl on Cars: A New York State of Mind Editor-in-Chief Karl Brauer asks, how much of a car town is New York City? Not much at all, he says. "And you know what? That's why I love it!"
Summer usually mean more money spent on gas. So vehicle manufacturers, already offering record-level incentives, are adding "price protection" for fuel costs as a way to get you to buy a car this summer.
For example, Hyundai recently offered a Gas Lock program, part of the Hyundai Assurance program, in which new-car buyers will get 12,000 miles of gas at $1.49/gallon, slightly higher for midgrade and premium. Suzuki also announced Free Gas for Summer for purchasers of the Suzuki SX4, with gas cards worth $270 or $290, depending on the model you choose.
Some of these programs are worth it; other times they come with strings attached that make it difficult to determine their value.
Recently, we were invited to attend the premier of "Born in Baja," a documentary that tells the story of a group of Ford Engineers, designers, and race program directors who took the Ford F-150 SVT Raptor truck from concept to reality. They decided to test the vehicle at the Baja 1000, one of the toughest off-road races in the world.
At first glance, the film may come across as a long commercial for the SVT Raptor, but once underway, the trials and tribulations of this truck and its crew compel you to keep watching. At its core, the "Born in Baja" documentary displays many of the classic conflicts: man versus man (competition between the other racers), man versus machine (the struggles with mechanical repairs), and man versus nature (dealing with the elements of the desert terrain).
The Hyundai Elantra is a good replacement vehicle for someone turning in a clunker.
Hyundai is rolling out a new program that allows car buyers to use the "Cash for Clunkers" program before the bill even goes into effect.
The Korean manufacturer has tried to separate itself from the competition by offering creative incentives for car buyers such as the "buyback program" for people afraid of losing their jobs and defaulting on their car payments.
A Hyundai spokesman said that buyers can now bring in a clunker (any car getting less than 18 mpg combined EPA mileage and newer than 1984) and take advantage of the $4,500 or $3,500 government incentive. The bill goes into effect July 24 at which time it was assumed that the trade-in process would begin.
It appears that Hyundai is putting itself at risk of having the government decide that some of the clunkers taken on trade do not qualify for the program even though they have already given the credit to a new car buyer.
With a few key strokes, a car salesman can turn the cash for clunkers into gold -- for them.
Now that the Cash for Clunkers bill (aka CARS) has been signed, and will go into effect July 23, it's time to think about how to actually apply the cash credit.
Some readers have suggested that dealers will perform their usual sleight of hand with the government credit of $3,500 or $4,500.
What could go wrong? A lot. Let's take a closer look.
Independence Day weekend means dealers are trying to move older vehicle inventory off their lots to make room for new models. This year, dealers are doubly pressed to move inventory because of months of sluggish car sales. So this 4th of July is a great time to bargain hunt.
Expect to find specials everywhere you look, but here are three of note:
Hyundai has a new Gas Lock program on most models bought or leased through August 31st. It guaranties $1.49/gallon regular fuel for your next 12,000 miles.
Not to be outdone, Suzuki is offering Free Gas for Summer on the Suzuki SX4 sedan or crossover. Manual transmission customers get an extra $2,000.
GM's 72-hour sale is underway, with 0% for 72 months finanancing on many of their 2009 models and 60-month 0% financing on the rest. Must take delivery by July 6th.
Make sure to check our Incentives and Rebates page to find out all the incentives you qualify for. Often, you'll have to choose between the lowest financing, cash back, and/or the gas programs. Do the math to figure out what's best for you.
The thought of owning an AMG version of a given Mercedes-Benz would appear to be senseless fantasy for most car nuts. But if you don't mind the boutique roadster (or "secretary's car" as some colleagues are fond of saying) reputation of the first-generation SLK, there's some serious performance to be had for less than new Miata money...
With the CARS (aka Cash for Clunkers) program expected to go into effect July 23, Edmunds.com has released a handy list of vehicles that are eligible as trade-ins. You can review this list to see if that old car in your driveway qualifies as a trade-in vehicle (clunker), and note that the list shows in what category the trade-in belongs.
We've also got a complete list of new cars that meet the Clunkers mpg requirements, these are the vehicles which you can apply your clunkers trade-in amount towards. Again, the category is called out so you can see how best to maximize the program.
Edmunds.com is working to make the Cash for Clunkers bill as understandable -- and more importantly useable -- as possible. For more information, and to see a table that describes the fuel economy requirements see our Cash for Clunkers page. Check back often for updates and additional resources.
Holidays mean specials on new cars. And what could be more patriotic during Independence Day weekend than buying an American car? From today through July 6, GM is offering 0 percent financing for up to 72 months for qualified buyers on select 2009 and 2010 vehicles in dealer stock, including Chevrolet Silverado and GMC Sierra pickups; Chevrolet Suburban and GMC Yukon XL; Chevrolet Impala; and the Pontiac models: Vibe, G3, G5, G6 and G8, Solstice and more.
Most other vehicles, such as the Chevy Malibu Hybrid, will have reduced rate financing of 0 percent for up to 60 months, instead. Note that you have to take delivery by July 6 according to the current offer. For details on all GM offers and models, see here.
The National Highway Traffic Administration (NHTSA) has announced that July 23, 2009 is the day for its final ruling on the Car Allowance Rebate System (CARS; aka Cash for Clunkers). NHTSA was given 30 days from when President Obama signed the bill into law, to hammer out all the details of the program.
Although the CARS bill initially stated that vehicle purchases made after July 1 would be eligible for a credit, NHTSA is recommending that both dealers and consumers wait until the July 23 rollout date, when all the CARS resources have been put in place.
In the meantime, you can brush up on the details of the CARS program on their official website, or better yet, follow the link to our Cash for Clunkers page. There you'll be able to see a list of eligible vehicles, and see a list of frequently asked- and updated- questions.
Hyundai is adding a new perk to its Hyundai Assurance program: Gas for up to 12,000 miles at $1.49 per gallon for regular fuel, slightly higher for midgrade and premium. Called Hyundai Assurance Gas Lock, the program covers most models leased or purchased between July 1 and Aug. 31.
There are several reasons why specs or pricing might be a little different on Edmunds than elsewhere, so when making comparisons, keep the following in mind:
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 Make sure you're comparing the same vehicle style. Sounds simple, but most vehicles are available in many different styles, and sometimes this leads to confusion. 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 2010 Honda Pilot: EX-L 4dr SUV AWD (3.5L 6cyl 5A).
That's what NHTSA told us when they called us. They want to warn consumers not to fall for the scammers taking advantage of the new Car Allowance Rebate System (CARS, also known as the Consumer Assistance to Recycle and Save, or in the vernacular, Cash for Clunkers or C4C).
President Obama hasn't even signed the bill yet, but already there are Web sites that promise to shepherd you through the system. They ask for personal information, including your email address and sometimes require you to fill out a credit application!
My 2000 Mitsubishi Galant has a trade-in value of $2,437 but it isn't technically a "Clunker."
Many folk have been asking about Cash for Clunkers, how it will apply to their specific situation and details of how the program will work. I have a clunker. It's a 2000 Mitsubishi Galant. I'd love to turn it in for a $4,500 voucher but I can't. The mileage is too high -- 21 mpg combined. Not only that, but I'm not looking to get into a car payment right now.
But based on the email we're getting about this bill that was passed last Thursday, a lot of you are sharpening your pencils and staying up late at night looking for loopholes in this government program.
"Hey, what if I trade in TWO clunkers? Can I get $9,000?" Or, "Can I tow in a rusting piece of junk and get my voucher?" And even, "Can I put an ad in the paper, find someone with a clunker, trade it in and buy a car for me? Then I'll give the guy $500."
Calm down everyone. You're making this WAY too complicated. Here's how to think this through.
The latest highlights from Edmunds.com and its blogosphere.
Inside Line News: Glassroof 'Stang is Back for 2010 C'mon, we can't just talk about all doom and gloom in the auto industry these days. Brighten up your summer a bit and go check out the glass roof option on the new 2010 Mustang. As close as you can get to the joy of open-air motoring without a convertible top, the UV resistant glass roof is available across the Mustang lineup.
Auto Observer: GM on the Fritz General Motors CEO Fritz Henderson dishes about all things GM in this wide ranging web-chat that covers everything from the latest bankruptcy news to executive pay, clunkers, and Saab's next chapter.
Inside Line: Subaru's Electric Stella Whether we'll be ready or not, electric cars are coming. IL's man in Japan Peter Lyon takes a drive in Subaru's upcoming domestic-market Stella, and chats about the issues that will dominate electric car adoption: cost, cruising range, and top speed.
Though heavily watered down from its original concept as a way to get less fuel-efficient cars off the road, the Cash for Clunkers program made its way out of Congress yesterday attached to a war funding bill, and is expected to be signed shortly by President Obama. The program was created to provide vouchers worth up to $4,500 towards the purchase of a new car, if the car being traded in gets less than 18 mpg and has little or no trade-in value. The cars traded in for vouchers on the Cash for Clunkers program will be crushed.
Final details will be sorted out in the next month, but the program is expected to be up and running by early August and run through October. There are less stringent mpg requirements for SUVs, minivans and pickup trucks, and for more details on the program, check out our Cash for Clunkers FAQ, which is being updated throughout today as details on the Cash for Clunkers program emerge. We've got a quick synopsis here after the jump.
Okay, so I didn't have a chance to do that. But I did get to know the 2009 Volkswagen Touareg 2 TDI pretty well when I drove one to the Bay Area and back last weekend. "TDI" is VW-speak for "turbodiesel," and the '09 Touareg 2's got a great one. It's the latest lesson the Germans have given us anti-diesel Americans on why diesel's dope.
But the diesel thing isn't the only reason why I think the Touareg 2 TDI is almost the perfect SUV. In point of fact, it's just one of three.
Avoid the long wait to pick up your new car at the dealership -- ask to have it delivered.
One of the great secrets of car buying is that most dealerships are willing to "deliver" the new car you want to buy. It's best to push for the delivery just before you agree to the deal. Say something like, "Well, I think the price is reasonable but I can't get down there to pick it up until the weekend. Could you deliver it to my office over the lunch hour?"
In some cases the answer might be, "Yes, but it will cost you." But the vast majority of the times, they will jump at the chance to ink a new deal and say yes. Basically, they send the car, along with a salesman or porter, to your home or office with all the documents. A "chase car" follows to take the salesman back to the dealership. They are in and out in 15 minutes.
There are many advantages to having your car delivered, not the least of which is your time and aggravation. But the biggest advantage isn't immediately obvious. Here's what it is.
Earlier this year, the U.S. Treasury Department passed the American Recovery and Reinvestment Act of 2009, which included a provision allowing taxpayers who buy a new vehicle to deduct state or local sales (or excise) taxes paid on the purchase. Yesterday, it announced that new vehicle purchases made in states without a sales or excise tax - such as Alaska, Delaware, Hawaii, Montana, New Hampshire and Oregon - will also qualify for the deduction. Taxpayers in these states can deduct other fees or taxes imposed by the state or local government that are based on the vehicle's sales price or as a per-unit fee.
Many consumers focus on the purchase price of a car, forgetting that tax on a such a large purchase amounts to a large chunk of change. So this latest tax development is good news for vehicle buyers in those states who were sitting on the sidelines. Uncle Sam is happy to put some cash back in the taxpayer's pocket (what the heck, they're putting money into everyone else's, too), but the primarily purpose of the ruling is to benefit the auto industry, which needs all the help it can get to boost new car sales.
Invoice price (a.ka. "dealer cost") is the amount the dealer pays to the manufacturer for a car from the factory. This, of course, is less than the MSRP -- the sticker price. But the invoice price is almost always higher than the amount the dealer actually ends up paying to the manufacturer, because the manufacturer offers extra discounts to the dealer. The two most common discounts are "dealer holdback" and "dealer cash," and there are often others based on sales volume.
A few things to remember about invoice price. It doesn't include tax, title, license or registration fees, nor does it include any manufacturer-to-consumer rebates. Sometimes the amount quoted as the invoice price includes the destination charge and sometimes it doesn't, so look closely. (On Edmunds.com, we always make that clear.)
[Note: Because of regional pricing differences, the invoice price you see on Edmunds may occasionally vary a bit from your local dealer's invoice. Why? Regional pricing differences. For example, in the South and Southeast, large independent distributors control the pricing of Toyota vehicles, and they may set prices at different levels than those established by Toyota for the rest of the country. Same with Subaru in the Northeast.]
All this makes determining the dealer's actual net cost difficult even for seasoned automotive insiders. That's why we developed the True Market Value pricing system, which accounts for the effect of all of the manufacturer's extra charges as well as the dealer's hidden subsidies.
So, can you buy a vehicle for less than its invoice price?
Chances are, if you're shopping for a used midsize family sedan then you're well aware of the Toyota Camry's strong record for being recommended. And yes, we agree. But what about other used vehicle segments, such as compact crossover or wagon, where top picks may not be as well known? No worries, we're here to help with our Used Car Best Bets, where, every year, we select our top choices in each segment based on their functionality, performance, safety, reliability record and value.
A version of the Cash for Clunkers bill passed the U.S. House on Tuesday by a wide bi-partisan majority (298-119). The bill will now make its way through the Senate, where an alternate version is still making the rounds.
As it currently stands, the House version of the Cash for Clunkers bill will offer up to $4,500 to consumers who trade in an older vehicle that gets 18 mpg or less combined, for a new vehicle that gets at least 22 mpg combined. The bill's requirements are a less rigid as it pertains to SUV and truck owners, since the new vehicle only needs to improve by 2-4 mpg.
The Senate version of the bill differs in its slightly more stringent mpg requirements, potentially narrowing the pool of vehicles that will qualify. There is also some debate on where the funding for the program will come from.
The Cash for Clunkers bill has strayed slightly from its environmental goals, but it now apppears that the emphasis is on stimulating sluggish new car and truck sales.
We will be updating our Cash for Clunkers FAQ, as soon as more information is available.
Buyers know a test drive is crucial in ascertaining the value of a used car, but few know how to conduct this endeavor in a truly productive way. Instead, most used-car shoppers just motor around a bit and listen to the sound system.
These 10 tips will help you make the most of your test drive, so that you can competently separate the keepers from the clunkers.
While the Supreme Court Monday temporarily hit the pause button on Chrysler's Chapter 11 bankruptcy proceedings, today is the final official day of business for 789 Chrysler dealerships. June 9, 2009 is the last day closing Chrysler dealerships will legally be able to sell Chryslers, Jeeps or Dodges as new cars with factory-backed incentives and warranty support.
Many of these closing dealerships will morph into used car lots or auto repair facilities to take advantage of what is hoped to be a loyal customer base.
Car shoppers have flocked to closing lots to buy Chrysler vehicles at record low prices. If you are one of these shoppers, make sure your deal is inked and recorded before the doors close Tuesday. After that, warranties sold at these closing dealerships will not be valid through Chrysler.
With the Supreme Court surprisingly stepping in yesterday, the future of the remaining Chrysler dealerships is more up in the air than ever. Though part of the agreement to sell Chrysler's remaining assets to Fiat has a clause allowing the Italian automaker to abandon the deal after June 15, Fiat's chairman says he will "never" walk away from the proposed deal with Chrysler.
It's easy to be skeptical about cars from a rental fleet because you don't know how much abuse they've suffered under their multiple drivers. And they often come without of a lot of desirable options. When money's tight, though (and when isn't it?), these vehicles can be real bargains.
In a series of press conferences today, President Obama and GM's CEO Fritz Henderson released details on GM's earlier filing for Chapter 11
bankruptcy protection.
Saying, "give us another chance," Henderson promised that the bankruptcy filing would be "the start of a new and better GM." He predicted that the restructuring process would take from 60 to 90 days. GM has launched its own site to help keep the public informed of its latest efforts and promotions.
Henderson was preceded by President Barack Obama who essentially said that Chrysler's apparent reemergence from bankruptcy bodes well for GM's long term success. He noted that after entering Chapter 11, Chrysler sold more cars in May than in April. However, he didn't mention that most of those sales were at fire sale prices.
General Motors followed Chrysler into Chapter 11 bankruptcy protection this morning in an effort to restructure and reinvent itself as a profitable company.
Since there is a lot of noise coming from the media and Washington, it creates the feeling that the product itself -- the car you are driving or are thinking of buying -- has somehow changed. It hasn't. Many GM cars are dependable, practical, even exciting vehicles that will provide years of service.
So we come back to the two most persistent questions: Should I consider buying a GM now that the shadow of bankruptcy has fallen on this company? Has anything changed for me, the GM owner?
Chrysler announced yesterday that half of the inventory it's trying to liquidate from closing dealerships (over 44,000 mostly 2008 models) has already been sold.
You've heard there are great deals at Chrysler and GM dealerships that are closing due to recent or impending bankruptcies. Still, did you know that you shouldn't pay asking price for a car, no matter how low that is? So how do you find your best deal?
Negotiate.
Are the rules different now that Chrysler has until June 9 to sell its inventory? The answer is yes. Here's what we suggest.
You will be hearing a lot of rumors this week that General Motors is expected to declare bankruptcy soon even though the exact timing of it is still a matter of speculation. GM's bankruptcy has become increasingly likely as poor sales continue and debts mount. Declaring Chapter 11 will allow GM to keep most of its dealerships open (some closings have been announced that will take place in a year) and allow sales on remaining inventories.
Over the weekend, President Barack Obama commented that GM and Chrysler, which is already in bankruptcy, will have to emerge as "leaner, meaner" companies from their restructuring. If they do, he added, a substantial market will await them.
When bankruptcy arrives for GM it is expected to be one of the most complex legal restructurings of our time. Because of the vast reach of GM, and its multinational status, the situation is expected to require the work of legions of attorneys.
As bankruptcy looms, the deal making continues on GM car lots with high incentives and deep discounts. Meanwhile, consumers who own GM vehicles, who are worried about what this will mean for them, can read "What if My Carmaker, Dealer or Warranty Company Goes Under?"
Older car buyers are a diverse bunch. Still, there are certain themes that reveal themselves when analyzing their needs. These themes tend to be dictated by the physical challenges that many face in their golden years.
The choices listed in our top 10 vehicles for seniors stand out for the skill with which they address these themes.
Our mix of vehicles covers all the bases. There's a minivan for seniors who need extra passenger capacity, and there are compact cars for those who appreciate the parking convenience that smaller vehicles provide. Our list also includes technology-laden luxury cars, a couple of spacious full-size sedans and an innovative SUV.
Suddenly there are a number of leases for under $200 a month, such as for the 2010 MAZDA3 i Sport.
The first sign of automotive economic trouble last summer was the collapse of leasing as a way to finance new cars. Leasing didn't completely disappear, but the enticing payments of the past disappeared for domestics and lost their luster among imports. Since then, we haven't seen a lot of lease deals that we find tempting. Until now.
Our data department pulled a list of current national lease deals and found there are at least 20 different cars that can be leased for under $200 a month. And the list includes some very cool cars. So, what's the "gotcha" in all this?
Whenever we discuss whether there's a "best" time to buy a car, a lively debate ensues. End of the month, in the rain, end of the year -- there are lots of possibilities for saving money. Taking a lesson from Wall Street, though, we tend to believe that trying to "time the market" is fraught with peril. But one thing is generally true, and that's that holidays bring out special incentives on new vehicles.
It's not enough, though, to just run into the car dealership and get a new car to try to take advantage of, say, $500 cash back being offered for Memorial Day weekend. Why? Because that time pressure (buy it before the incentive disappears) can cause you to grab a "deal" that isn't really the best one for you.
You need a real plan to save real money. Our article, Your Three-Day Shopping Plan for Holiday Weekends, covers all the bases. The most important step, of course, is figuring out how much car you can really afford, made easy with our new Affordability Calculator. The hardest part? Sticking to that budget! Seriously, though, if you follow the plan, you'll be sure to finish the holiday weekend with confidence that you've got the best possible deal on your new wheels. I did this during Memorial Weekend last year, and walked away with a great deal on a Nissan Altima Hybrid with all the trimmings. I never had to wonder if I could have done better, and that's a great feeling to have on such a major purchase.
Among other things, the long Memorial Day weekend means that automotive hacks like us get an extra day with our temporary rides. Mine will be a Mini Cooper S Convertible, if you're wondering, which I'm not completely enthused about. Ah, I suppose there are worse fates than rolling in a lime-banana-colored Mini ragtop for three days. But I do wish I were signed up for our current 2009 Chevrolet Corvette loaner instead.
And no, that's not just because the Mini lacks gravitas. I dig the base Corvette, I really do. It doesn't get a lot of love in these parts -- "It has leaf springs?!", "Why can I pull the interior apart by hand?", "Why can I press the rear fascia six inches inward with my pinky?", and so on -- but I don't think its somewhat seedy reputation is deserved.
Hyundai recently announced a new incentive program that gives customers the option to receive their cash back through a VISA debit card. This program began on May 15, and is good until June 30, 2009.
Earlier this year, Hyundai introduced their Assurance program to protect car buyers who might lose their jobs in a troubled economy. The incentives package proved very successful and was later imitated by other automakers. It will be interesting to see if they are breaking new ground with this innovative debit card plan.
The customer cash will be deposited monthly on a debit card and works just like a VISA gift card.
This program can be helpful to consumers who already have a sizeable down payment. They can use the extra cash to pay for gas or help with their monthly payment. However, we expect that most consumers will prefer to have the customer cash included at the time of the purchase. It is important to have as much equity in the vehicle to offset its depreciation and keep you from being "upside down." In this way, if you need to trade it in, or sell it for cash, you will have more freedom for your next vehicle choice.
Here is a list of eligible models, and the amount of cash back you would receive:
Further proving that there's never been a better time to buy a new vehicle from recession-battered domestic automakers, Chrysler has announced zero-interest financing for 72 months on certain 2008 Chrysler
, Dodge
and Jeep
vehicles through Chrysler Financial
. This is on top of factory-to-consumer cash incentives
that the bankrupt automaker is already dangling to lure buyers into its showrooms.
The financing option is available through June 1, before Chrysler Financial is taken over by GMAC, and comes as Chrysler seeks to sell 2008 models before being merged with Italian automaker Fiat SpA.
The latest highlights from Edmunds.com and its blogosphere.
Auto Observer: Parents Magazine, Edmunds.com Announce Best Family Cars What makes a good family car? According to a recent survey by Parents magazine and Edmunds.com, the key features are safety, fuel efficiency, price, and easy car seat installation. Which models fit that description? Follow the link to see our picks for the 15 best family cars.
Inside Line: Ford Announces Pricing on 2010 Lincoln MKS With EcoBoost Ford's new EcoBoost technology promises to deliver high horsepower without impacting fuel efficiency, but if the premium on the 2010 MKS is any indication, it won't come cheap. Consumers interested in the top of the line MKS, will have to shell out an additional $6,890 for the trim level that includes the EcoBoost engine. Follow the link to see what this brings the final price tag to. If you're curious as to how this engine performs, Inside Line drove the upcoming Lincoln MKT with the EcoBoost V6.
Green Car Advisor: Daimler and Tesla Announce Partnership to Make Electric Cars Daimler AG, parent company of Mercedes-Benz, is looking to expand into the electric car market and it's turned to Tesla to help to speed up the process. In this partnership, Daimler will have a 10 percent equity stake and a seat on Tesla's board of directors. Tesla will receive a substantial boost in cash, access to Daimler's parts bin and their expertise on mass producing a vehicle.
You may need the utility offered by a pickup, but that doesn't mean you have to completely forsake fuel-efficiency. These days, there are more compact and hybrid trucks available than ever before -- a development that spells good things for those seeking trucks that will help them mind their finances at the pump.
These 10 choices are the most fuel-efficient pickups on the market.
Let's think about this "Cash for Clunkers" Bill
for just a second. I mean, who's going to take the chance to dump the old gas guzzler and move up to sleek new gas sipper?
Most of the clunkers I've seen are driven by guys named Earl who hang one arm out the window as they drive around way too slow with a back seat that looks like a recycling station. Earl might like to trade in the clunker for a $4,500 voucher to buy a sleek new Honda Insight. But how's he going to qualify for a loan to pay the remaining balance on the Insight?
While the clunker aspect of the bill has gotten most attention, it's the truck angle that might be its real intention.
With Chrysler's recent announcement that it will close nearly a quarter of its dealerships, consumers might be wondering how this will affect their purchasing decisions if a Chrysler, Dodge or Jeep product is on their short list. As the saying goes, I've got good news and bad news (and some sad news). Which do you want first? I'll give it all to you after the jump.
Inside Line: Nissan Hikes Price on 2010 Infiniti QX56 As sales plummet for Nissan's brick-like QX56, there seems to be no price break in sight. Nissan announced that the price of admission has jumped an additional $1,000 -- now a hefty $56,915 for the base model. Savvy shoppers will note however, that haggling for the best price is always recommended.
Green Car Advisor: Future EV Stations Could Make Battery Swaps Faster than Pumping Gas Silicon Valley-based company Better Place (really, that's their name?), demonstrated a prototype of a filling station worthy of the 21st century. This station will remove a depleted battery from an electric vehicle and replace it with a fully charged unit quicker than it takes to pump 10 gallons of gas -- and it's completely automated. If the company prevails, and EV manufacturers are on board (with Nissan being a prime candidate), gas stations will go the way of your childhood pet -- that is, they'll be in a better place...
Straightline: Edmunds.com Dishes on the Best Values to CNBC Edmunds New York-based director of strategic marketing, John Giamalvo, announced on CNBC that now is still a great time to buy a car. He also revealed the best values in cars today, after factoring in insurance, maintenance, depreciation and financing.
Day two of the downsizing of the American auto industry brought GM's announcement that it would "wind down" its dealership group over the next year by eliminating 1,100 outlets.
Mark LaNeve, GM's vice president of vehicle sales, speaking from his car via OnStar, said that dealers would be receiving letters today notifying them that they would not have their contracts renewed next year. This will allow these dealers to make an "orderly transition" to another business or close their doors permanently.
The long time frame will also allow dealers to sell off their remaining inventory. LaNeve said that if the dealerships were simply to close, GM would have to take control of their unsold cars.
The dealerships receiving letters today were selected due to low sales levels or poor CSI (Customer Service Index) levels. These dealers only constituted about seven percent of the total sales for GM.
Most vehicles seem to be priced about right these days, but this week I've got three that are priced really, really wrong. Let's get straight to it, shall we?
Oren Weintraub, president of Authority Car Buying, enjoyings the negotiating that is essential to his job.
All day every day, Oren Weintraub works car deals. And he loves his job. That's because he's saving money for his clients.
Now here's the surprise: there isn't a lot of yelling and screaming. Weintraub makes people feel good about giving him what's best for his clients.
Weintraub was reluctant to allow me into the inner sanctum of Authority Auto, in Sherman Oaks, Calif. because he was worried I would give away all his negotiating secrets. After seeing him work, I'd have to say he's in no danger. He can give all the advice in the world, but he still a master at the moment to moment improvising his job requires.
Sitting with him Weintraub for a morning, and hearing him work deals, was eye opening. But it also confirmed some basic principles I've always thought about negotiating. Here's a few things I learned.
Dream Car Corner is a new feature that we will have from time to time. The purpose of DCC is to allow us to cruise the online car ads on company time, umm, we mean highlight potential good deals on dream cars of all types, ranging from old muscle cars to newer exotics. We dream about a lot of cars -- one week we might feature a late '90s Aston Martin DB7, another week might highlight a mid-70s Cadillac Seville.
Dream Car:1968-1970 AMC AMX
Brief History: Introduced as a late 1968 and running through 1970, the two-seater AMX is not nearly as common as an old Camaro, Mustang or Barracuda. Essentially a shortened Javelin -- which was AMC's answer to the aforementioned pony cars -- the two-seater AMX boasted show car styling and agile (for the day) handling.
A 290 ci (225 hp) V8 was standard, with a 343 ci (280 hp) and 390 ci (315 hp) V8s optional. A four-speed manual was standard, a three-speed automatic optional. An AMX with the 390 and 4-speed could sprint to 60 mph in about 7 seconds flat and run down the quarter mile in the low- to mid-15 second range.
Dealerships could see up to a million new shoppers this year thanks to the "Cash for Clunkers" bill.
A measure to offer vouchers of up to $4,500 to take polluting gas guzzlers off the road and replace them with new cars is picking up speed. President Obama and House Democrats have settled on a version of the bill and revealed more details about how it would work. It still must pass the full Congress before going into effect.
Since we last saw the plan, it has been reworked and some of the earlier objectionable elements have been scrapped. It now appears that it will not call for the crushing of used cars and is completely optional. It also has been tweaked to lessen the impact on low income families and will not cut into the classic car market.
Still, some groups say the measure will not significantly improve fuel economy of many vehicles on the road. The government is expecting that the program may stimulate 500,000 to 1 million sales, but based on Edmunds' users we could see up to 3 million additional new car sales created by the program.
For more details on this issue please see our detailed breakdown of the proposed program here as well as an environmental analysis on Green Car Advisor.
In an effort to stimulate sluggish sales and shrug off some of its bankruptcy publicity, Chrysler has announced that it is offering up to $6,000 worth of incentives for the purchase of a new vehicle. The incentives are in effect as of today (May 6), and will continue through June 1.
The incentives break down as follows: $4,000 in customer cash, a $1,000 loyalty bonus for current Chrysler owners, and bonus cash of up to $1,000 if you finance through a participating credit union. It is important to note that these incentives supersede Chrysler employee pricing plus rebates and zero percent financing. Chrysler says that more than 1,500 credit unions in all 50 states are participating in their program, and they assure consumers that thousands of their dealers are open for business and have a wide inventory to choose from.
See Chrysler's release on the new incentive program after the jump. For more info on incentives from all manufacturers, check out our Deals of the Month and Edmunds incentives page.
Hyundai cars, such as the Genesis pictured above, outsold Nissan during April while Ford outsold Honda. Go figure.
When oh when will the "pent-up demand" for cars kick in and flood the lots with qualified and, yes, confident buyers?
That happy day is bound to come eventually since four million Americans postponed car buying last year. And as April sales indicated, we are on track to see only about 9.3 million Americans buy a new car.
But will the bubble burst in time to save Chrysler/Fiat? And what about GM?
More important for you, if you are part of that pent-up demand, is this the time to pull the trigger on that new car?
Looking for the classic car of your dreams has never been easier. Though you may take this as a shameless plug for AutoTrader, given their partnering with Edmunds, well, you'd only be partly right. With their slick new site, AutoTrader Classics, they've upped their game, making it more enjoyable to see what's out there. There are now larger pictures (a previous pet peeve I had was the smallish photos), a slide show function and a more user-friendly search tool. The latter keeps your search info on the left-hand side when it displays the search results, allowing you to modify the search without having to "page back" or some such nonsense.
You can also opt to see only ads with prices and/or photos. I don't know about you, but when I see an ad with no price or photo, it raises a red flag. In the first case, it usually means the seller is looking for stupid money. In the second, he's too embarrassed or lazy to include some clear, useful photos of the car.
In the past few years, BMW's have been known for their excellent free vehicle maintenance program. BMW announced earlier this month, that all models are now eligible for a two year extension to their Ultimate Service program.
If the vehicle is within four years or 50,000 miles, owners can pay between $1,400-$3,000 (depending on the model) to extend the free maintenance for up to 6 years or 100,000 miles- whichever comes first.
But what if your free vehicle maintenance plan just ended? For an additional $200, the enrollment period can be extended to five years and 60,000 miles.
Some people may view this as a pre-paid maintenance plan that isn't much of a deal. But we would argue that a car is in greater need of expensive repairs past the four year mark, and that's when this new maintenance plan kicks in. Let's look at a few common repairs to see if the coverage is worth it.
All of the textiles in Volvo interiors -- including this V70 -- are so clean, they're certified according to the Oeko-Tex Standard. The leather is even tanned using a special process that's chromium-free.
What we drive, how we drive and how we maintain out vehicles can all make a difference for the environment. If you want to make more eco-friendly choices, check out our 10 tips for green car shopping before you buy your next car or truck. Tapping into even a few of these suggestions before your next purchase can lower your environmental impact.
I recently received an email from someone who had put a deposit down on a vehicle and had decided to back out, and they were having problems getting the dealership to refund the deposit. They had paid the deposit with a check, and while the check had not been cashed, getting it back was proving difficult, with the dealership threatening to keep the deposit if they didn't go through with the deal. Most dealerships are more respectable than this, but there are still those bad apples out there. While consumer protection laws vary from state to state, the vast majority prevent a dealership from keeping a deposit in the event the consumer does not purchase a vehicle. Learn how to protect yourself from those dealerships that still think they are doing business in the 20th century, after the jump.
GM announced today that it will phase out Pontiac by the end of 2010, leaving countless current owners and prospective buyers wondering what this means for them. For more information about the details announced today, check out our Straightline article.
Current owners will have several concerns such as fears that their warranty won't be honored and questions about the availability of parts and service. GM has promised all along that warranties will be honored at dealerships selling sister brands. A similar situation occurred when Oldsmobile was phased out and repair and service work was picked up by other GM dealerships.
If GM itself goes bankrupt, the U.S. Government has already created a fund to back warranties through a third party agency. The announcement about Pontiac will no doubt create a lot of bargain hunters from shoppers seeking the remaining cars at bargain prices. Depreciation will be steep for these vehicles, however.
It's easy to get caught up in the moment when you're looking at a used car. You've been scouring the classifieds for weeks, and you finally found what you were looking for, and now you're test-driving the car and marveling at what a gem it is and hoping that the seller accepts your offer before someone else offers more...
This is precisely when you need to take a step back and think about whether you've gathered enough information to make an informed decision. I had not, but I went ahead and bought my 2001 Honda Prelude anyway. Turns out I got a pretty good one, it seems, but here are three things you should do before buying that I didn't.
Car leasing is tougher than it used to be, but lenders are definitely still writing lease contracts. If your primary concern is your pocketbook, then buying a car usually makes more sense than leasing. But there are different factors to consider. The lists below summarize the pros and cons of leasing, then of buying:
Advantages of Leasing
* Lower monthly payments * Lower down payment * You can drive a better car for less money each month * Lower repair costs (with a three-year lease, the factory warranty covers most repairs) * You can drive a new car every two or three years * No trade-in hassles at the end of the lease * You pay sales tax only on the portion of the car you finance
Disadvantages of Leasing
* You don't own the car at the end of the lease * Your mileage is limited to a set amount, typically 10,000 to15,000 a year * Lease contracts are confusing, so it makes it difficult to ensure you're getting a fair deal * Leasing is more expensive in the long run * Wear-and-tear charges can add up * It's hard to terminate a lease early if your driving needs change
It's always bugged me that the current-generation Mazda MX-5 Miata hasn't been available in turbocharged Mazdaspeed trim. But the weekend I spent recently in the revamped 2009 MX-5 Miata Grand Touring was a lot more fun than I'd anticipated. Here's three random observations, because that's how I do.
Last summer, when gas was over $4 a gallon, hybrids, the Prius in particular, were selling faster than U2 tickets. In fact, used Prii were commanding especially strong money -- more than what they stickered for new in many cases.
What a difference 7 months makes. Now that gas prices are back to the $2/gallon range, Americans have cooled their heels (big surprise) towards hybrids and compacts. What this means is that there are now some good deals to be had on the still-desirable Prius -- I've always been impressed by it's combination of comfort, generous passenger/cargo room, decent performance and of course real-world achievable 45-mpg fuel efficiency.
The latest highlights from Edmunds.com and its blogosphere. Green Car Advisor American Honda Motor Says It Still Hopes To Close FuelMaker Deal FuelMaker Corp., the company that manufactures the Phill home refueling station for the Honda Civic GX, is facing a potential bankruptcy. This technology is important to the future of the GX, the only natural gas vehicle being sold in the U.S., and as such Honda is trying to facilitate the sale of FuelMaker to a company that has similar interests. Despite this potential setback, Honda remains committed to the GX, and will continue to promote the vehicle.
Edmunds Daily GM Recalls Mid-Size Cars Made Between '97 and '03 Chrysler Recalls 2009 Jeep Grand Cherokee, Commander, Wrangler The last thing these companies need is more bad publicity, but with these recent recalls, General Motors and Chrysler hope to get ahead of a few critical safety issues. GM is recalling over 1.4 million vehicles equipped with its 3.8 liter V6. Chrysler is recalling 4,336 of its 2009 Jeep Cherokee, Wrangler, and Commander models. Follow the links to get all the details and the list of models affected.
Inside Line 2010 Cadillac SRX First Drive The redesigned 2010 Cadillac SRX is facing an uphill battle as it tries to compete with the class leader Lexus RX. Cadillac engineers say that the SRX has a different balance than the RX, and that it is more fun to drive. Inside Line's Daniel Pund drove the SRX at a press event and gave us his early impressions. Pricing for the Cadillac SRX has not been announced, but is estimated be in line with the RX's price- around $36,000 to start. The car is expected to hit showrooms sometime this summer.
Look up the word "dowdy" in the dictionary, and you'll probably see a picture of a Honda Odyssey (or any one of its segment-mates). Happily, minivans aren't the only choice these days for drivers seeking safe family transportation that seats up to eight.
Tax day is roaring up on us April 15 and if you're a car guy, you're probably using TurboTax to file your return. Sorry, but I couldn't resist that obvious joke.
Seriously, there's been so much news flying around about car buying stimulus measures -- which are often tax related, that I thought a short wrap up would be in order.
Here are a few things to help you get ready for tax day ... and adjust to a changing marketplace.
As you avid readers out there may recall, I've been looking for an Integra replacement, having parted ways recently with my perhaps uniquely unmolested '95 GSR hatchback. I think I found a suitable candidate last night (stay tuned for a more detailed post on the purchasing process), which is a relief, because I was starting to dream in Craigslist classifieds. Speaking of which, there are a few things that I never ever EVER want to see again in ANY automotive classified ad. Three of 'em, to be precise.
3) "$X,995." I know Walmart and dollar stores have a lot of luck with this tactic, but seriously, what screams "sleazy used car dealer/private party" louder than a price that ends in 995? Round up. Please. It's a car, not a box of plastic forks.
2) "Babied." This almost certainly means the seller drove the snot out of it, especially if it's a performance/modified car. Did you really baby your '99 Civic Si with the grapefruit-sized tailpipe and Lambo doors and "JDM swap" that's been lowered to the bumpstops? Let's dispense with the hyperbole, shall we, and keep to useful information like "all scheduled maintenance performed" -- a claim you don't often hear from those who supposedly "babied" their cars.
1) "Highway miles." Do you EVER see a low-mileage car described as having "highway miles"? No. Of course not. "Highway miles" is a transparent euphemism for "Oh, Schmidt! My car has a bajillion miles on it! How am I ever going to get rid of this steaming pile?!" No, the fact that your '93 Camry has 274,000 highway miles does not make me feel the slightest bit better about the fact that it has 274,000 freaking miles! If you tracked the car or drove it primarily on a winding road above 5,000 rpm with the tires squealing, yes, I would like to know that. Otherwise, just the miles will do, and please don't make me email you because you didn't list 'em. Thanks.
Thanks to lower gas prices, fuel economy isn't the be-all and end-all that it once was with car shoppers. Still, those with any kind of foresight know that change is the only constant. Fuel prices might be agreeable enough today, but historically, they've shown themselves to be as unpredictable as hormonal teens.
Shoppers taking a longer-term view when it comes to gas prices will want to check out our list of the 10 most fuel-efficient sedans.
(Will the government's pledge to back warranties on domestics help salesmen like Lucas Crabtree at Glenn Thomas Dodge in Long Beach, California?)
"If I was a car buyer right now my head would be spinning!" a friend said to me this week.
There was a one-two-three-punch this week with the ouster of GM's Rick Wagoner, the government's annoucement of warranty protection (plus the cash for clunkers proposal) and the new array of incentives offered by Ford and GM.
One day after Chairman and CEO Rick Wagoner was forced out of his job as the U.S. Government restructured domestic automakers, a new round of comprehensive incentives were announced by Ford and GM.
The incentives mark a new approach to motivating buyer behavior. Both incentive packages have at their core a buyer protection plan to take over payments in the event of unexpected jobless. This approach was pioneered by Hyundai last year and proved very successful.
GM was set to launch its incentives, called "GM Total Confidence" to much fanfare when Ford unexpected announced its own incentives package and buyer protection program called "Ford Advantage Plan."
The elements of GM Total Confidence, which are in addition to zero- or low-interest financing incentives, cash rebates and customer loyalty promotions, include:
- Payment protection for the first 24 months of ownership so that if the buyer suffers job loss, GM makes nine payments of up to $500 per month;
- A protection plan that ensures the value of a buyer's trade-in;
- OnStar's safety and security plan for a year as standard fare;
- Fully backed, 5 year/100,000 mile limited powertrain warranty with roadside assistance and courtesy transportation.
(The salesman assured me this car was a trade in -- Carfax showed it had been a rental.)
Last week the FBI announced they had broken up a huge "vechicle cloning" ring which affected thousands of consumers. New identities were created for hot cars using stolen vehicle identification number tags and then sold to unsuspecting buyers. This news comes as Americans are shifting toward buying used cars because of the poor economy.
How can you protect yourself against this sort of crime? And what's the best way to learn about a used car's checkered past before you buy it?
When the half-baked first generation of Cadillac's CTS luxury sedan gave way to the crisp, mature, refined second-generation model in 2008, we breathed a patriotic sigh of relief. Here, finally, was a no-apologies high-end American car that could go toe to toe with the world's best. The styling was on point inside and out, the cabin materials were up to snuff, and lo and behold, the performance was there, too, thanks to countless chassis-tuning laps on the famed Nurburgring and a sophisticated available 3.6-liter direct-injected V6. We added one to our long-term fleet in March of 2008, and the experience has mostly left us marveling at how good the folks at GM can be when they put their minds (and money) to it.
But that was then, and this is the year of the Genesis. That's what Hyundai calls its new segment-busting premium four-door, and as the name implies, it constitutes an assault of biblical proportions on the luxury sedan status quo. With a base price of $32,250, the V6-powered Genesis 3.8 undercuts the base price of a 2009 CTS DI V6 by more than $6,000 while matching its acceleration numbers. "Too good to be true," the naysayers will cry -- but certainly not too good to join our long-term ranks, and that's precisely what a silver 2009 Genesis 3.8 did earlier this month.
With the long-rumored cagematch between the Smart and Mr. Romans' tricycle on indefinite hold, we agreed that no other pair of wheeled conveyances in our possession was more deserving of a comparison test than this one. Accordingly, your intrepid narrator rounded up three of the usual suspects -- Automotive Editors John DiPietro and James Riswick, and Associate Editor Mark Takahashi -- and we headed for the hills and highways, notepads and stereo-testing CDs in hand. Neither car disappointed, but one consistently outshined the other. Identities revealed below.
Experienced Edmunds users do their pricing homework before they hit the dealership lot, and with our new New Car Inventory tool, can often see which specific car is available on which lot. But let's say you go to a dealership without having done all that, or you see a different car (new or used) on the lot that piques your interest. How do you know the salesperson is offering you a fair price right then and there? Or what you can really afford to pay for it?
The answer is simple: Look it up on your mobile phone or PDA. Edmunds.com Mobile offers users of mobile phones, PDAs and other mobile devices a selection of the same information found on our standard site, including vehicle pricing, specifications and reviews, and our Auto Loan Calculator. And if you don't think you're getting a good price (or good treatment) at the lot you're visiting, you can find another one nearby by using our Car Dealer Directory.
You don't need to download anything to access the site. Just type m.edmunds.com into your mobile device's browser. It's free to use, although your service provider may charge you for time spent on the Internet, of course.
Many of the worst car-buying decisions happen because customers are on the lot and don't have all the information at their fingertips. With Edmunds Mobile, that doesn't have to be you.
Last summer, with gas prices at $4/gallon, the Honda Fit was going at sticker and above. They barely touched down on the lot and they were sold.
Now, as reported in this Wall Street Journal article, Americans have lost their taste for small cars. Inventories are backed up, prices are down.
How far down? We looked at three popular small cars. The 2009 Honda Fit Sport is selling at $224 under MSRP. The 2009 Toyota Yaris S, which never had the allure of the Fit, is at $485 below sticker with a $750 rebate on its hood. The 2009 Nissan Versa S is in similar low demand with a $344 discount off sticker price and $750 cash rebate available.
As soon as gas prices go back up again, these cars will start selling. Plan ahead and be ready. There is big car utility in these "small" packages.
There's as much advice about when to buy a car from a dealer as there are days in a year. Some say that Mondays are good because business is slower on Monday than on the weekend. Others advise to go when it's raining or snowing, because who wants to look at a car and get wet? Still others say that the end of the month is the best time, because the dealership needs to make its quota and will be more willing to cut a deal. And finally, others advise not to buy a car until the end of the model year, or in slow months like August or December when people are busy thinking about going back to school or shopping for Christmas gifts.
While there is some truth to all these theories, our advice is that you should not buy a car until you're ready. By then you have saved enough for a good down payment, researched the lowest interest rate, and you know all the current incentives and rebates. And by the way, you'll never get a good deal when a new hot model has just been introduced. Those vehicles are in demand and go for over sticker price. Let the excitement die down if you want to get a discount.
While new cars sales are down big time -- despite massive incentives that include zero percent or nearly as low interest rates -- used cars have been selling comparatively well. Because of this buying climate, a new version of a given model may prove cheaper to purchase than a used example, due to the aforementioned incentives and the fact that used car loans typically have much higher interest rates compared to new car loans.
In an attempt to bolster sales, AutoNation
, with 232 dealerships nationwide, has announced a new program where it will cover monthly car payments for up to six months if a car buyer loses his or her job. The "AutoNation Payment Protection" program will last 12 months, and follows in the footsteps of Hyundai's Assurance Program. Hyundai's program has been a big hit and sales have risen by 25 percent since it debuted in January.
The AutoNation Payment Protection program is being offered at no charge with purchases of new and used vehicles and is also available on leased vehicles. To qualify, a person must have made at least three monthly payments, lost their job involuntarily, and applied for state unemployment. If a person still cannot make the payments after the six month grace period, the dealer will buy the car back at its market value. The customer would be responsible for any negative equity.
In this unpredictable economy, a program like this might instill some confidence in the buying public. And the great part about the AutoNation program is that you're not limited to just the Hyundai brand. AutoNation owns a dealership of just about every major brand.
Follow the link to get the full story from Auto Observer.
Must be nice to be a Mini salesman. The customer starts to negotiate and you can just say, "Ah, sorry, that doesn't work here. See, we're selling Minis."
Both the Mini and the Mini Clubman are selling at full MSRP, even in this economy, according to Edmunds' TMV. But now comes proof that hard times have even reached Mini. Mini is now offering low interest financing on all their models.
This surprising news comes only a few months after Mini announced that they had sold out their entire production run and had no cars left for buyers. It's amazing what a few months of economic meltdown will do to a company's attitude.
Basically, the deal is 2.9% on all 2009 and 2008 new MINI vehicles (with some restrictions) for up to 60 months. Mini also, claims the deal applies to all credit tiers, but must be on approved credit with MINI Financial Services. The offer excludes new 2009 Convertibles and expires at the end of this month.
Nowadays, any segment of the automotive industry that isn't in decline is considered a success story. And so it is with certified pre-owned (CPO) vehicles. According to Edmunds data, while new car sales dropped 20.1% and used cars dropped 8.1% as a percentage of franchised dealership sales in the last 12 months (Feb. '08 - Jan. '09), CPO vehicles have risen 6% during the same time. (In fact, a month ago, Edmunds reported that approximately half a million car shoppers that would have bought new cars in the previous three months had opted for used cars, including CPO vehicles, instead.) This trend continues despite the record-setting rebates available on many new cars, whereas CPO vehicles only qualify for special APR financing.
Automakers, in response, are pumping up their CPO programs. Last month, Toyota extended its certified used program to its Prius, Camry and Highlander SUV hybrids, making it the first dedicated certified pre-owned program for hybrid vehicles. As more of the popular hybrids come off lease, the new Toyota Certified Hybrid program will allow more people to get into these fuel-efficient vehicles at a price they can afford.
BMW, which leases a huge percentage of its new cars, is pushing its CPO program as well. They're offering 0.9% financing on MY 2006 vehicles through April 30th. That will allow many consumers who coveted the BMW name, but couldn't afford one, to finally get in the driver's seat. Although it wasn't true a few years ago, today every mainstream brand offers a CPO program. You can get details on all the individual CPO programs here.
Currently, CPO vehicle prices average $1,284 more overall than non-certified vehicles, but they come with the peace of mind that only a comprehensive inspection and a factory-backed extended warranty can provide. And because they don't take the depreciation "hit" that new cars do, you're typically getting a better bang for your buck. It's no wonder, then, that buyers are opting for CPO over new or plain old "used" vehicles.
Despite lackluster car sales, incentives and rebates on new cars have remained relatively stable over the past few months. The exception to this would be Honda and Acura, which offered more incentives six months ago than they do today. But there are still some amazing deals out there.
Here are a few noteworthy deals for this month that our data team has compiled:
The economic downturn is even affecting current year model vehicles. The 2010 Hyundai Genesis Coupe and the Mazda 3 have recently added special low and no-interest financing and lease offers. This month the 2010 Kia Soul has also added special financing offers.It is also unusual to see incentives on this year's models so soon after their release.
Saab has the most discounts for this month, and has increased its incentives from February 2009.
2009 Saab Models:
9-7X went from $1,000 customer cash to $3,000 dealer cash
9-5 went from $1,500 customer cash to $5,000 dealer cash
9-3 kept the same $1,500 customer cash but added $1,000 in bonus cash
2008 Saab models:
9-7X went from $8,500 to $10,000 customer cash
9-5 went from $4,500 plus $1,000 bonus cash to $8,500 customer cash
9-3 went from $4,000 plus $1,000 bonus cash to $6,500-8,500 customer cash (depending on the model)
(Car buyers often buy the warranty under pressure. Photo by Andrew Reed.)
A friend of mine said she just got a screamin' deal on a 2009 Chrysler Town and Country Limited but she was concerned because she bought the extended warranty and didn't know if she needed it. She knew that there was a lifetime power train warranty but she was wondering if it applied to the transmission.
In evaluating cars, Edmunds editors use the track test numbers generated by our super-exacting testing team. A complete description of what goes into those numbers is here.
But a car is more than its numbers. When writing a test drive, Edmunds editors add real-world driving and usability tests to see how a car might suit the average buyer for that type of car. We determine how difficult it is to install child safety seats, and we see how the trunk or hatch cargo space accommodates a piece of rolling luggage or a set of golf clubs.
Additionally, the manufacturer's listing of "cubic feet of cargo space" doesn't tell you how wide or high the space is, or if there are wheel wells that intrude into the space. So sometimes we stack up storage boxes in a test car's cargo space to determine how much of that space is really usable. (I call it the "Costco test.")
What if we haven't recently tested the vehicle you'd like to see? Then you're likely to find our impressions by reading our Model Reviews. The reviews touch on topics such as safety, powertrains/performance and driving impressions. They'll give you a good idea of how we think the vehicle fits in with its competitors, its pros and cons, and whether it's worth your consideration.
Last month I named the Toyota Camry a deal-of-the-week. Now it is the Lexus ES350's
turn. The very attributes that makes the Camry a top-selling vehicle also apply to the ES350: roomy, reliable, smooth and innocuous. But it adds the features that the majority of upscale buyers want: luxury features and materials, longer warranties and a dealer experience designed to cater to the customer's needs. This combination is so successful that the ES350 is routinely Lexus' top-selling car. However, last month, sales were down more than 46% and Lexus dealers still need to move 2008 models. Learn what Lexus is doing to try to get you to put an ES350 in your driveway.
Honda has released pricing on the 2010 Insight hybrid and it's coming in about $800 higher than anticipated. But it's still considerably less than the Prius.
At $20,470 (including destination), the Insight LX stickers $2,250 less than the present -- 2009 model year -- Toyota Prius. The 2010 Prius doesn't go on sale until June and hasn't been priced yet.
For more details on the new Insight's pricing, check out this piece on Green Car Advisor.
For details on how the Insight compares against the popular Prius, check out our comparison test.
(A customer "in the box" at a dealership negotiates with a salesman. Photo by Andrew Reed.)
This week we stumbled across the account of a car shopper who made every mistake in the book. Unfortunately, he ran straight into two dealerships which were trying to make up for a bad economy by running the old shell game on any unsuspecting customer who ventured onto their car lot.
While the shopper was thinking he was boosting the economy by purchasing an American car, the dealer thought it was payday. Uninformed consumer + hungry car dealer = disaster.
This story illustrates how there is blame on both sides. And it also shows that the car buying system (at least the traditional feet-on-the-ground method) is an outdated business model.
The economy is on everyone's mind. But if fuel economy is part of that picture (we argue that fuel economy should be a "must have" when car shopping), Edmunds has several different methods to find the perfect gas-sipper. .
* Use Advanced Search (in the "Specifications" section, select the MPG range from the drop-down menu under "Fuel Efficiency") * Check out our Fuel Economy Center * Check out the Green Car Guide * Review some of our Top Ten Lists on fuel-efficient vehicles
* From the New Cars area of the home page, you can also select "Hybrids," "Diesels"
What if you just want to see vehicles that get a certain MPG? Do this...
(Sales Manager John Davis, Glenn E. Thomas Dodge in Signal Hill, CA, with our new Challenger.)
Car buyers are told that they can get screaming deals these days. But when I went shopping for our long-term 2009 Dodge Challenger R/T I found that when car salesmen have a hot product they still try to hold the line on price. You can't blame them since if they're giving away most other cars they have to make their money somewhere.
We decided to get our Challenger with the six-speed manual transmission and the 27J Package which includes the smaller wheels. And don't forget about the the 5.7-Liter V8 Hemi. We also wanted it in either black or white, not some crazy retro color like orange. By selecting these colors and specific features we substantially reduced the pool of vehicles we could buy from.
To search for the Challenger, we used our Edmunds.com New Vehicle Inventory tool. After locating a prospective vehicle, we then went go to the Dodge website to view the window sticker to verify exactly what equipment was on it.
We then had to consider at what price we could purchase this Dodge. It appeared that the Challenger could be purchased under Chrysler's Employee's Pricing Plus plan which brought the price down to below invoice.
At this point I made a classic car buying mistake.
The 2009 Toyota Prius (I haven't driven the new 2010 model yet) rides like a four-wheeled pillow. It's one of the few pleasant aspects of its generally forgettable driving demeanor. The 2010 Honda Insight, on the other hand, has Honda's trademark firm-to-stiff ride. Pavement imperfections that the Prius serenely shrugs off will make their presence felt in the Insight. At least the Insight didn't evince the typical Honda road noise on my brief drive today.
2. Cheaper than Prius for a reason.
Make that reasons, plural. The Insight lacks a center armrest, just like my old '93 Honda Prelude. I used to employ my CD wallet as a makeshift armrest, but the Insight's center console is about two feet lower than the 'Lude's relative to the driving position, so you'll need a considerably taller object. The door armrests have zero padding, so if your elbows are bony like mine, prepare for discomfort on long trips. The hybrid powerplant provides adequate acceleration, but it makes an unpleasant racket when you goose it. I'm not saying the '09 Prius is a luxury car, but it admits none of these foibles. To the Insight's credit, though, its front seats are vastly superior.
1. Cramped backseat.
This could be a dealbreaker for green-leaning families. When I got out of the Insight's driver seat and tried to sit behind my 6'1" self, I almost couldn't. There literally was not enough room for my size-12 sneakers to fit between the rear seat structure and the front seatback -- I had to turn my feet sideways and awkwardly slide them underneath the front seat, where there's thankfully some foot space. No headroom either; my head was crammed against the ceiling. One of the Prius's most alluring charms is its midsize interior dimensions, including its commodious backseat. If you need that kind of space back there, the Insight isn't for you.
Everyone knows that the sale of new cars is way down. But what's happening in the collector car market?
That was the subject of a discussion hosted by Meguiar's car care products Wednesday featuring a host of speakers who have their finger on the pulse of the market.
Barry Meguiar, president and CEO of Meguiar Inc. said, "We need some good news these days and the good news is that attendance is up (at car shows). We can grow in bad times." He added that while the sponsorship money has dwindled, the attendance has not.
This growing audience is largely unrecognized by the mainstream and exists, "under the radar," according to Meguiar. Some five years ago the collector car market was estimated to be as large as 3 million people. Other estimates have said that 11 percent of all drivers feel passionately about their cars.
The fact that you're a car shopper on a very tight budget doesn't mean that economy hatchbacks are your only options. Midsize sedans are available that will set you back less than 20 large.
How does a Mazda 6 sound? Or a Hyundai Sonata? Or a Toyota Camry? Click here for the full lineup.
Hoping for a quick sale, I listed our 2008 Mercedes-Benz C300
on Craigslist.com and Autotrader.com for our TMV (True Market Value) price of $29,000. Over the weekend I only got three inquiries about the Benz, two e-mails and one phone call. As I described in an earlier blog
, a young woman offered to pay $27,000 for the car if I got no better offers.
What I'm about to say is going to evoke a chorus of "I told you so" comments. Many of you felt that accepting an offer to buy a car sight-unseen should never be entertained under any circumstances. The buyer hasn't had a chance to inspect the car so adjustments cannot be made for its condition level.
Well, that's exactly what happened to me, when the buyer came for an inspection.
Even those considering a used Porsche 911 can appreciate a bargain, especially in these economically depressing times. If we told you that you could buy a nice, low-mileage (25k to 35k miles) Porsche 911 for $25 to $30 grand, you might wonder if we've been spending too much time inhaling fuel fumes and burning rubber at the test track.
Each Wednesday in the Idle Chat Lounge (read: a musty sectional in Karl Brauer's garage), Brent Romans and Bryn MacKinnon, two editors at Edmunds.com, pontificate on a topic that's kinda about cars.
Today's Idle Chat Topic: What is the deal with those stickers and fake emblems dealers slap on the cars they sell?
Ms. MacKinnon: Here in Southern California (home of our editorial offices), dealers mostly stick to (easily removable and totally unnecessary) license plate frames and fake license plates for advertising that you just bought your new ride at Honest Tony's Autoporium-o-rama. But there are plenty of out-of-state cars cruising our mean streets so that I am quite familiar with this (IMO) strange and annoying practice of dealer branding, whether it's a blocky sticker crudely stuck on the rear decklid (see above) or an almost believable metal trim piece spelling out the dealer's name and placed next to the car's factory badging. Sure, dealers should be allowed to advertise to the public. But the nerve of using adhesive on my precious new set of wheels to do so! Shocking.
Mr. Romans: Yep, they're tacky. But what can we really expect out of the country that invented Las Vegas, truck antlers and the 1974 Ford Mustang II? Really, we only have ourselves to blame. It seems plenty of people don't mind (or are otherwise oblivious to) rolling in decade-old cars with original dealer stickers and plate frames still attached. Even here, though, I would argue that it's not all that bad, as the alternative is even worse. When these people remove their car's dealer kitsch, they replace it with items like "I'd Rather Be Crocheting" license plate frames and "My Chihuahua Is Smarter Than Your Honor Student" bumper stickers. I think we're facing an unsolvable problem, here, Bryn. (Although, I must say, our long-term BMW X5 test car would look pretty snazzy with a set of truck antlers.)
Want to get rid of an unwanted or unsightly dealer sticker or emblem on your own car? Just remember that the longer it sits, the harder it'll be to remove. We've also heard of shoppers refusing to take delivery of a car with a dealer sticker on it, so keep that in your back pocket when you buy your next car, if you're not into being a rolling billboard.
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?
(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.
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.
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