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?"
