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Tuesday, October 28th 2008

6:10 PM

Consumer Reports: 10 Car Shopping Mistakes And How To Avoid Them

Consumer Reports has compiled a list of common car shopping mistakes from their Smart Buyer's Guide to Buying or Leasing a Car, which, of course, you can find in bookstores.

Here's a quick summary of the list:

  1. Falling in love with a model.
    Becoming infatuated with a single model can blind you to alternative vehicles that may be better for your needs or make you skimp on thoroughly researching a vehicle's ratings, reviews, reliability, or safety and pricing information.
  2. Skipping the test drive.
    A lot of vehicles look good on paper—especially in glossy brochure photos—but the test drive is your best chance to see how a vehicle measures up to expectations and how well it "fits" you and your family.
  3. Negotiating down from the sticker price.
    "A salesperson may offer you a deal that's, say, $500 below the sticker price, and many consumers will conclude, often mistakenly, that they're getting a good deal. Unless the vehicle is in big demand and short supply, you can often get an even lower price by negotiating up from what the dealer paid for the vehicle."
  4. Focusing only on the monthly payment when negotiating.
    "Salespeople like to focus on a monthly-payment figure while negotiating a deal. Indeed, "How much were you thinking of paying each month?" might be one of the first questions to greet you when you meet a salesperson. Don't take the bait. It's the first step down a slippery slope of being manipulated with numbers and overpaying for your vehicle."
  5. Buying the "deal" instead of the vehicle.
    "...it's important to remember that any deal is only as good as the car that's attached to it. Just because you can get a good discount doesn't mean you should buy the vehicle."
  6. Waiting until you're in the dealership to think about financing.
    "...it's critical to comparison shop for financing terms at different financial institutions and get prequalified for an auto loan before you go to the dealership to buy the vehicle. Check interest rates at banks, credit unions, or online financial sites to see which offers you the best rate."
  7. Underestimating the value of modern safety features.
    "Today's vehicles offer an array of advanced safety features. But many buyers don't know which are most important or what to look for when comparing vehicles. Antilock brake systems (ABS), electronic stability control (ESC), and head-protecting side air bags, for instance, are effective and well worth the money."
  8. Buying unnecessary extras.
    "Dealerships often try to sell you extras that boost their profit margin but are a waste of you money. They can include rustproofing, fabric protection, paint protectant, or VIN etching, in which the vehicle identification number is etched onto the windows to deter thieves. Don't accept those unnecessary services and fees. If you see those items on the bill of sale and you haven't agreed to them, simply cross them out and refuse to pay for them. "
  9. Not researching the value of your current car.
    "Find out what both the used-car retail and wholesale prices are, so that you'll know what you should be able to get if you trade it in or if you sell it yourself. Typically, you'll get more money by selling it, as long as you're willing to put in the additional effort."
  10. Not having a used car checked by an independent mechanic.
    "Before you buy a used vehicle, have it scrutinized by a repair shop that routinely does diagnostic work. A thorough diagnosis should cost around $100, but confirm the price in advance. "
Meg Marco
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Sunday, August 31st 2008

12:42 AM

Best 10, Worst 10 Cars for Holding Value

If you spend tens of thousands of dollars on a car, you want to get something back for your investment when it's over. Inevitably, the value of your car will depreciate, but you'd like it to have as much trade-in value as possible.

This doesn't just go for buying a car. When you lease a car, the amount it will be worth at the end of the lease is critical in determining your monthly lease payment price. It's called residual value, an important factor to keep in mind if you're shopping for a new car.

In a list compiled by Automotive Lease Guide, or ALG, the 10 cars expected to hold value the most over the next five years are an eclectic group (sedans and small sport utility vehicles, among others). What do these cars have in common?

"You see a much better alignment of production with market demands," says James Clark, editorial director of ALG.

What about cars that will hold the least value after five years?

"You'll see a lot of brands we traditionally have high-depreciation rates for," says Clark.

Some of these vehicles are heavily used as fleet vehicles for rental car companies; some (i.e. Korean brands like Hyundai and its subsidiary, Kia) have perceived quality issues, even though Clark says the Korean brands' "quality has actually gotten a lot better, but their perceived quality is still low."


Best Value Holders:

1. Volkswagen R32

MSRP: $32,990
Style: Performance
5-year residual value: 43 percent or $14,186
Engine: six-cylinder, 3.2-liter, 250 horsepower
Warranty: Basic -- 4 years/50,000 miles, powertrain -- 5 years, 60,000 miles
Special features: SIRIUS satellite radio, power glass sunroof, multi-function trip computer
Reasons it will hold value: It's a reasonably priced, low-volume car. It's a descendant/variant of the Volkswagen GTI, also known for its quality.

2. Jeep Wrangler

MSRP: $19,680
Style: SUV
5-year residual value: 42.9 percent or $8,443
Engine: Six-cylinder, 3.8-liter, 202 horsepower
Warranty: Basic -- 3 years/36,000 miles, powertrain -- lifetime limited warranty, certain restrictions apply
Special features: AM/FM radio with in-dash CD player & MP3 capability, Sentry Key Theft Deterrent System
Reasons it will hold value: It's cornered the niche market for people who like to do a lot of off-roading and has few competitors.

3. Mini-Cooper

MSRP: $18,700
Style: Hatchback
5-year residual value: 42.7 percent or $7,985
Engine: Four-cylinder, 1.6-liter, 118 horsepower
Warranty: 4 years/50,000 miles
Special features: Four years of complimentary roadside assistance, toggle switch controls, fully electronic throttle
Reasons it will hold value: It's sporty, fuel-efficient, reasonably priced and covers a wide spectrum of customers. It also has a good reputation.

4. Scion XB

MSRP: Manual $16,370, automatic $17,320
Style: Compact station wagon
5-year residual value: 39.5 percent or $6,466(manual)/ $6,841 (automatic)
Engine: Four-cylinder, 2.4-liter, 158 horsepower
Warranty: Basic -- 3 years/36,000 miles, powertrain -- 5 years, 60,000 miles
Special features: Tachometer and trip meter, 60/40-split folding rear seat, AM/FM CD and iPod capability
Reasons it will hold value: It's relatively fuel-efficient, reasonably priced and it has more space than compacts with similar prices.

5. Honda CR-V

MSRP: $20,700
Style: SUV
5-year residual value: 39.4 percent or $8,156
Engine: Four-cylinder, 2.4-liter, 166 horsepower
Warranty: Basic -- 3 years/36,000 miles, powertrain -- 5 years/60,000 miles
Special features: XM satellite radio, Honda satellite-linked navigation system, digital audio card reader
Reasons it will hold value: It's fuel-efficient for an SUV, seats five and has plenty of storage room.

6. Toyota RAV4

MSRP: $21,500
Style: SUV
5-year residual value: 38.9 percent or $8,364
Engine: V-6, 3.5-liter, 269 horsepower
Warranty: Basic -- 3 years/36,000 miles, powertrain -- 5 years/60,000 miles
Special features: AM/FM 6-disc CD changer with satellite radio capability and MP3/WMA capability, 10 cup holders
Reasons it will hold value: By SUV standards, it's fuel-efficient. It seats five and has plenty of storage room.

7. Infiniti G35/G37


MSRP: $32,250
Style: Sedan
5-year residual value: 38.9 percent or $12,545
Engine: V-6, 3.5-liter, 306 horsepower
Warranty: Basic -- 4 years, 60,000 miles, powertrain -- 6 years/70,000 miles
Special features: XM satellite radio, tire pressure monitoring system, heated front seats
Reasons it will hold value: It's a great price for the product. The performance is similar to the BMW 335, but is approximately $8,000 cheaper.

8. Dodge Viper

MSRP: $87,460
Style: Sports car
5-year residual value: 38 percent or $33,235
Engine: V-10, 8.4-liter, 600 horsepower
Warranty: powertrain -- 3 years/36,000 miles
Special features: AM/FM stereo with CD player and CD changer, Sentry Key Theft Deterrent System
Reasons it will hold value: It's a low-volume sports car that has an exotic feel and is reasonably price compared to exotic sports cars.

9. BMW 1 Series

MSRP: $28,600
Style: Small luxury/small-family
5-year residual value: 37.8 percent or $10,811
Engine: Six-cylinder, 3.0-liter, 230 horsepower
Warranty: 4 years/50,000 miles
Special features: Two-way power glass moon roof, anti-theft AM/FM audio system with 10 speakers and satellite radio/MP3 capability
Reasons it will hold value: It has a very low volume and is smaller, lighter and cheaper than the BMW 3 series.

10. Nissan Rogue

MSRP: $19,430
Style: SUV
5-year residual value: 37.5 percent or $7,286
Engine: Four-cylinder, 2.5-liter, 170 horsepower
Warranty: Basic -- 3 years/36,000 miles, powertrain -- 5 years/60,000 miles
Special features: Drive computer, XM satellite radio, MP3/WMA capability
Reasons it will hold value: It's a fuel-efficient SUV and good for those wishing to downsize a bit.

Worst Value Holders

10. Hyundai Entourage

MSRP: $23,995
Style: Minivan
5-year residual value: 20 percent or $4,799
Engine: V-6, 3.8-liter, 250 horsepower
Warranty: Limited -- 5 years/60,000 miles, powertrain -- 10 years/100,000 miles
Special features: Projector-type fog lights, dual front automatic temperature control
Reasons it won't hold value: It's a combination of product deficiencies, poor marketing and historical depreciation of Hyundai vehicles.

9. Chevrolet Malibu Classic

MSRP: $20,550
Style: Sedan
5-year residual value: 20 percent or $4,110
Engine: Four-cylinder, 2.4-liter, 169 horsepower
Warranty: Basic -- 3 years/36,000 miles, powertrain -- 5 years/100,000 miles
Special features: OnStar with standard one-year directions and connections plan, three-month trial of XM satellite radio
Reasons it won't hold value: The body style is in its last generation. It is sold to rental fleets. As such, rental companies sell them after a year, leaving a large supply of them and making resale prices low.

8. Kia Optima

MSRP: $17,030
Style: Sedan
5-year residual value: 20 percent or $3,406
Engine: Four-cylinder, 2.4-liter, 162 horsepower
Warranty: Basic -- 5 years/60,000 miles, powertrain -- 10 years/100,000 miles
Special features: AM/FM/CD audio system, optional trip computer, optional MP3-compatible audio system
Reasons it won't hold value: It's primarily a rental fleet car. The Kia brand typically sees high depreciation rates largely because of past quality issues.

7. Suzuki Forenza

MSRP: $13,999
Style: Sedan
5-year residual value: 19.5 percent or $2,730
Engine: Four-cylinder, 2.0-liter, 127 horsepower
Warranty: Basic -- 3 years/36,000 miles, powertrain -- 7 years/100,000 miles
Special features: Eight-speaker AM/FM/CD audio system with MP3/WMA playback, heated outside mirrors
Reasons it won't hold value: It's not really designed for the U.S. market. It's primarily a fleet car. Also, this is the last year this model will be made.

6. Hyundai Accent

MSRP: $10,775
Style: Subcompact
5-year residual value: 19.3 percent or $2,080
Engine: Four-cylinder, 1.6-liter, 110 horsepower
Warranty: Basic -- 5 years/60,000 miles, powertrain -- 10 years, 100,000 miles
Special features: AM/FM/XM/CD/MP3 audio system with auxiliary input jack
Reasons it won't hold value: It's a subcompact that's often used for rental fleets. The brand has a history of high depreciation for perceived quality issues.

5. Kia Rio

MSRP: $11,540
Style: Subcompact
5-year residual value: 19.2 percent or $2,216
Engine: Four-cylinder, 1.6-liter, 110 horsepower
Warranty: Basic -- 5 years/60,000 miles, powertrain -- 10 years/100,000 miles
Special features: Optional AM/FM/CD audio system
Reasons it won't hold value: Similar to the Hyundai Accent's reasons -- it's a subcompact fleet car with past quality issues.

4. Suzuki Reno

MSRP: $13,299
Style: Subcompact
5-year residual value: 19 percent or $2,527
Engine: Four-cylinder, 2.0-liter, 127 horsepower
Warranty: Basic -- 3 years/36,000 miles, powertrain -- 7 years/100,000 miles
Special features: AM/FM/CD/cassette stereo with eight speakers, heated rearview mirrors
Reasons it won't hold value: Although it's priced significantly lower than its direct competitors, such as the Honda Fit, the Reno is known to underperform, get poor fuel efficiency for its class, ride badly and fall short in refinement.

3. Kia Spectra

MSRP: $13,545
Style: Compact
5-year residual value: 18.8 percent or $2,546
Engine: Four-cylinder, 2.0-liter, 138 horsepower
Warranty: Basic -- 5 years/60,000 miles, powertrain -- 10 years/100,000 miles
Special features: AM/FM/CD audio system with audio input jack for MP3 devices
Reasons it won't hold value: For many of the same reasons other Kias won't -- it's a rental fleet car and it has perceived quality issues.

2. Chevrolet Uplander

MSRP: $22,320
Style: Van
5-year residual value: 18.5 percent or $4,129
Engine: V-6, 3.9-liter, 240 horsepower
Warranty: Basic -- 3 years/36,000 miles, powertrain -- 5 years/60,000 miles
Special features: OnStar with one-year Safe and Sound Plan, AM/FM/CD stereo with MP3 playback and auxiliary input jack
Reasons it won't hold value: Its gimmick of taking a minivan and trying to make it look like an SUV didn't work. This model will not be produced after this year.

1. Lincoln Town Car
MSRP: $45,295
Style: Sedan
5-year residual value: 18 percent or $8,153
Engine: V-8, 4.6-liter, 239 horsepower
Warranty: Basic -- 4 years/50,000 miles, powertrain -- 6 years/70,000 miles
Special features: Heated front seats, universal garage door opener.
Reasons it won't hold value: It's a fleet car and it's not fuel efficient (it's only sold as a V- .

Fritz Esker


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Tuesday, July 22nd 2008

5:51 PM

Hybrid Cars Pose Risk to Blind, Visually Impaired

Because they can be nearly silent, hybrid cars pose a serious threat of injury and death to blind and visually impaired people, says the American Council of the Blind, which is pushing the auto industry and government officials to develop ways to reduce this danger.

"Traditionally, people who are blind or visually impaired learn to rely on their hearing and tactile cues to provide them with information about their environment, which they can use to navigate safely across streets and through other vehicular ways, such as parking lots. In so doing, the sound of traffic is their primary focus," Melanie Brunson, council executive director, said in a news release from the council.

"Traffic sounds provide information about such things as the position of vehicles, their direction of travel, their rate of acceleration, and the speed at which they are likely to move. With this information, the pedestrian can make informed decisions about when to cross a street or other vehicular way safely," she said.

Without those sound cues, a blind or visually impaired person is at serious risk.

"Imagine you are a blind person traveling independently with the aid of your cane, something you have done confidently for years," Dr. Ron Millman, chair of the council's public relations committee, said in the news release.

"You are crossing a fairly busy intersection. You listen for sounds of approaching cars. All cars seem stopped. Suddenly, you hear screeching brakes. Too late, you realize a quiet, nearly silent, hybrid car is only a few inches from you. Panic takes over. Every sense of survival says to run, but where? There is not time to escape as you face this horror and possible life-threatening situation."

But this danger isn't limited to blind or visually impaired people, said Dr. Karen Gourgey, a member of the council's environmental access committee.

"Recent studies have shown that even people who are fully sighted use hearing as well as vision to make street crossing decisions, though they may not realize it. And we haven't even mentioned children and older people," Gourgey said in the news release.

The efforts of the council and other advocates for the blind are having an effect. Last week, the U.S. Federal Highway Traffic Safety Administration held its first public meeting on the issue. >>>>

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Wednesday, July 9th 2008

11:54 PM

Toyota to equip Prius with solar panels: report

Japan's Toyota Motor Corp. plans to add solar panels to its popular Prius hybrid early next year to power the vehicle's air conditioning, a newspaper report said on Monday.

As part of a complete design makeover, the Prius will be fitted with rooftop solar panels on its high-end models, the Nikkei economic daily said without naming sources.

If it happens, Toyota, in a close race with General Motors for the title of the world's top automaker, would be the first major carmaker to use a solar power generation system on a mass-produced vehicle.

Toyota rolled out the Prius in 1997 as the first mass production petrol-electric hybrid. It was redesigned in 2003 and a third-generation Prius is widely expected to come soon.

Toyota declined to confirm the Nikkei report.

"We cannot comment on our product planning," a company spokesman said.

The Nikkei said the solar panels on the roof would supply part of the power needed for the vehicle's air conditioning.

The carmaker plans to produce some 450,000 Priuses at home in 2009, up 60 percent from 2007, the Nikkei said. >>>>

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Sunday, June 29th 2008

1:16 AM

Hardest-To-Get Cars

Looking for a new car? Maybe you have your heart set on something fuel-efficient because of $4 gas? Or perhaps you had a good year and feel you're ready to move up to something with a touch of style, luxury or class?

 

Get in line. Despite tough times for the auto industry in general, there are some car models--across a broad range of classes and sizes--that are so popular that auto manufacturers are selling them faster than they can build them.

The range of hard-to-get vehicles is as diverse as consumer tastes and budgets in general. Case in point: As expected, the most-wanted vehicle on our list is the fuel-sipping $21,500 Toyota Prius hybrid sedan that gets an Environmental Protection Agency (EPA) combined estimate of 46 mpg. No. 2 on the list? The not-so-expected gas-guzzling $74,700 Lexus LX Series full-size luxury SUV that gets a combined 14 mpg.

 

Behind The Numbers

 

To compile our list of the most-wanted vehicles, we used information provided by Ward's Automotive Group, a publisher of industry trade news and data, as well as automaker-supplied days' supply data as a measure of dealer inventory levels.

 

A low days' supply and low retail turn rate--the amount of time a car spends on a dealer's lot--means some dealerships may have sold out of a vehicle, have only a few on the lot or may not have the style or trim you desire.

 

Vehicles with the lowest days' supply made the initial list (Ward's says the industry average is 60 days), which was pared down using J.D. Power and Associates' retail turn rate to determine how quickly a model sold in the month of May. The average retail turn rate for all vehicles is 61 days; we only considered vehicles with a rate of 40 days or less, well below the industry average.

 

So how did the LX 570, in an age of $4-a-gallon gas, make it to the second spot on the most-wanted list?

 

Even though the premium SUV seems like an anomaly in a time when consumers are snapping up small cars, auto analysts are quick to note that there's still a demand for luxury vehicles and that the SUV market, while struggling, isn't dead. Furthermore, popular vehicles that undergo a redesign, like the Scion xD and the LX 570, often experience an initial surge in sales, says Tom Libby, senior director at J.D. Power and Associates.

 

"In fact, Lexus is still working through a pre-sold list of loyal Lexus owners who wanted to get the premium SUV as soon as it hit the market," says Curt McAllister, a Toyota spokesman. "Its new styling and creature comforts appeal to loyal Lexus and premium SUV shoppers."

 

The LX 570 had an average eight-day supply of vehicles at the end of May and the average turn rate for each model was eight days. It has a more powerful 5.7-liter V8 engine producing 383 horsepower, and leather seats with power extendable front seat cushions for added comfort. It also features new technology, such as wide-view front and side monitors located in the grille and under the passenger side-view mirror to aid drivers with hard-to-view areas.

 

Waiting List For Luxury

 

If a high-end SUV isn't your style, but you do hope to make that first step into the luxury segment with, say, the all-new Audi A5, you're going to have to wait a little while before you drive off the lot. The luxury midsize coupe and the high-performance S5 model are selling faster than Audi can make them.

 

The A5 launched in March of this year (the S5 came out in November 2007) with a base manufacturer's suggested retail price of $41,200, but according to Ward's, at the end of May there was an average eight-day supply of A5s on dealers' lots. Comparatively, the retail turn rate, at 39 days, is higher than that of other cars on the list. But since this is a nationwide average and the days' supply is low, a dealership in one part of the country may have exactly the A5 the customer wants, while a dealer elsewhere has a waiting list.

 

It's a similar situation for the Mercedes-Benz C-Class, the more modestly priced Benz ($33,675), with an average 29 days' supply of cars. While the supply is higher than that of other cars on the list, this model sells very quickly, with a turn rate of only 26 days, meaning that, on average, the C-Class is sold faster than it's produced.

 

Finding A Fuel-Efficient Car

 

Toyota is preparing to launch an updated and improved Prius later this year and therefore won't increase production of the 2008 model. Typically, sales trail off as consumers wait for the new model to launch, but that hasn't happened as gas prices continued to soar beyond $4 a gallon and threaten to reach $5 a gallon this summer.

 

Demand for the Prius has increased, but the "limited supply of Prius in the pipeline is due to a product plan based on our overall production limitations at the Prius factory" in Japan, says Sona Iliffe-Moon, a Toyota spokeswoman. "We are currently running at full capacity and have been for two years. All along we said we would have a supply ceiling."

 

But times were different then.

 

"We saw a major shift in May to small and compact conventional cars," says Libby. "Automakers started May with lean inventory. But the percent of compact cars sold in May was 20.3%, up over 15.8% in May last year. They will have to increase production of small cars."

 

Diane Elnick, industry analyst at Ward's Automotive Group, says that "if demand continues at the high pace it did in May for these vehicles, automakers will have a hard time providing them."

 

A model that may be facing this problem is the Honda Civic and its hybrid version, which are among the most-wanted vehicles. The gas-powered Civic gets a respectable EPA combined estimated 29 mpg; the hybrid version, 42 mpg. Tim Bothell, new car director at Showcase Honda in Phoenix, Ariz., says 75% of his Civic sales are hybrids. And with Toyota capping production on the Prius, demand for the Civic could increase even more.

 

"We are not quite at a waiting-list point yet, but we are approaching that level," says Bothell. Ward's says there was a nationwide average 21-day supply of all Civics at the end of May; according to J.D. Power, Civics turn quickly, at an average of only 25 days.

 

Whether you have a taste for a luxury model or a simple fuel-efficient one, the good news is that you have plenty of options. The bad news: You might have to be willing to wait for the one you really want.

Jacqueline Mitchell

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Sunday, June 29th 2008

1:13 AM

Highest-Quality Luxury Cars

Mercedes-Benz E Class buyers enjoy a burl walnut interior trim, dual-zone automatic climate control, 10-way power-adjustable front seats and rain-sensing intermittent windshield wipers.

 

They also get the satisfaction of knowing they are behind the wheel of one of the industry's highest-quality cars.

 

That's because the E-Class is among the 15 luxury cars named to J.D. Power's annual Initial Quality Study. The Infiniti M-Series, Audi A6, Lexus ES350 and Porsche Cayman also make the list.

In the study, released last week, J.D. Power and Associates, a global marketing information company headquartered in Westlake Village, Calif., surveyed 81,500 purchasers and lessees of new 2008 model-year cars and trucks, after 90 days of ownership, between February 2008 and April 2008. Vehicles with less than 100 respondents were not ranked.

 

The largest reported problems were design-related. Though luxury cars boast some of the industry's most technologically advanced innovations, including wireless communication devices, and navigation and audio systems, this roster of gizmos has resulted in design flaws automakers are working to address.

 

"Minimizing design problems remains a major challenge for the industry," says David Sargent vice president of automotive research at J.D. Power and Associates, "particularly since new technology, such as navigation and entertainment devices, is becoming increasingly common in today’s new vehicles."

 

What's more, "issues with difficult-to-use audio and entertainment controls and voice command recognition failure are among the top ten problems most frequently reported by customers," says Sargent of the trade-off that manufacturer’s face of introducing new technology and maintaining quality.

 

The silver lining, however, is that luxury automakers are heeding the call. The study found that overall quality improvements in the luxury car segment have remained in-line with long-term trends, increasing by 6 % this year over the year prior.

 

 

It's no surprise then that luxury brands top J.D. Power’s list of cars with the fewest problems per 100 vehicles. Customer qualms may range from paint chips to inadequate lighting of the dashboard in daylight. Porsche is ranked highest for the third consecutive year averaging 87 (the industry average is 118.) Infiniti occupies second with 98; its EX-Series is the No. 1 entry premium vehicle in the J.D. Power study. This is no mean feat according to Sargent, as in past years "automakers have frequently struggled to achieve very high initial quality with new models."

·                         In Pics: Highest-Quality Luxury Cars

·                         In Pics: Highest-Quality Small Cars

·                         In Pics: Best Small Cars For The Buck

·                         In Pics: Top 13 Most Fuel-Efficient Cars

·                         In Pics: Most Improved Cars For 2009

 

Infiniti also takes second place in the entry premium vehicle category with its G-Series. The Acura TSX and the Volvo S40 tie in third and fourth to complete the group.

 

In the compact premium sporty car category the Mercedes-Benz CLK-Class tops the list, while the Porsche Cayman takes second and the Volvo C70 third.

 

Infiniti claims its second award with its M-Series tying with the Mercedes-Benz E-Class for the highest-ranked midsize premium car. The Audi A6 and the Lexus ES 350 rounded out the group.

 

The Lexus LS tops the large premium car segment followed by the Mercedes-Benz S-Class and the Cadillac DTS. The Mercury Sable and the Mercury Grand Marquis complete the large car segment led by the Pontiac Grand Prix Sedan.

 

Increased quality, says Sargent, will lead to greater owner loyalty, a long-term benefit as new users are more likely to criticize than loyal customers.

 

And given the ubiquity of high technology in vehicles today, he continues, luxury cars can no longer use this to differentiate themselves and instead use pricing and brand image to maintain their premium status.

Benjamin Willson

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Sunday, June 29th 2008

1:12 AM

Top 10 vehicles for family travel

Consumer Reports recommendations for safe, comfortable, and reliable road-trip cars

Consumer Reports auto experts compiled a list of 10 suggestions for families. It includes models that have done well in safety tests, in our reliability ratings, and that we've found to be comfortable, quiet, and spacious during our testing, yet attain reasonable fuel economy. Seats that are comfortable and provide enough support for a long drive were a prerequisite to make our list. Enough room to keep Mom, Dad, and the kids in the traveling spirit was also required, especially since vacation travel can often include a traffic jam.

Audi A6

This upscale family car is a good choice, with a comfortable, well-appointed, quiet cabin and excellent seats. The all-wheel drive version we tested has a controlled, steady ride and relatively good fuel economy while sedan models have a big trunk for hauling suitcases, and a wagon is available for bulkier vacation gear.

BMW 5 Series

Agile handling and a comfortable ride, excellent seats, and a quiet, well-crafted interior make the BMW 5 Series a good choice for long-distance travel. The smooth, powerful, yet fuel efficient six-cylinders are more than sufficient and there is no real reason to choose the V8. The 5 Series is available as a sedan or wagon, and with rear- or all-wheel drive.

Cadillac STS

The Caddy STS strikes a good balance between sporty and comfortable. Like the Audi and BMW, the STS has good handling and a comfortable, quiet interior with supportive front seats. The smooth V6 engine is plenty powerful.

One of our top-rated family sedans, the Accord is roomy and comfortable, with ample storage, logical controls and excellent driving position. Agile handling and a compliant ride are pluses. The Accord also gets points for its smooth four- and six- cylinder engines, excellent reliability, and impressive crash-test results.

Honda Odyssey EX

For families who need more room, the Odyssey offers three rows of seats for up to eight passengers. The rear seat folds into the floor for more cargo room. Our high-rated minivan also earns points for reliability, high levels of fit and finish, and surprising agility for its size.

Infiniti M

Our top pick among luxury sedans, the M is roomy and comfortable with a well-appointed interior and logical controls. At home cruising on the highway, the M is also quite capable on twisty roads. Reliability is above average, and all-wheel drive is available.

Lexus LS460

This car is the ultimate for a long cruise. The slick powertrain provides effortless acceleration. The interior is extremely quiet and the ride is comfortable and pampering. Interior quality is impressive and the cabin is large with comfortable seats and easy to use controls. It even gets good fuel economy for its size and power.

Lexus RX

With a spacious and quiet interior as plush as those found in some luxury cars, this well-rounded SUV is very refined and comfortable. The V6 engine is smooth, powerful and gets relatively good fuel economy, the Hybrid even more so. All-wheel drive combined with standard electronic stability control make it a good choice for winter driving. Reliability is very good.

Toyota Avalon

Quality materials, lots of interior room, and even a reclining backseat (in some trim levels) make for a limo-like interior. Very quiet and comfortable, and with a smooth and quick V6 engine, Toyota's biggest sedan is a good value with excellent reliability and crash-test results.

Toyota Sienna XLE

Toyota's minivan offers seating for up to eight, and like the Odyssey, it has a third seat that folds into the floor. While not as agile as the Odyssey, it is quieter, with a comfortable ride and impressive crash-test and reliability ratings. All-wheel drive is available, which you can't get with the Honda. >>>>

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Sunday, June 29th 2008

1:10 AM

Ferrari California: North American Photo Exclusive!

Ferrari says the California "is aimed at owners who desire a car which embodies everything the Prancing Horse represents in terms of sporty design and innovation, but also seek a car with greater versatility than ever." This newest prancing horse is not the "baby Ferrari." It is, in fact, a brand-new model complementing and similar in size to the racier F430 with more flexibility in packaging. In addition to having a retractable hardtop, the car can be ordered in a 2+2 configuration - children seating only, please!, or more storage space for weekend outings. There is even a trunk pass-through for skis for those who want to hit the slopes in the winter.

 

And despite a raft of new technologies, the California doesn't forget Ferrari's past. The car's styling uses several nostalgic elements from the Ferrari 250 GT California Spyder from the late 1950s and early 1960s. Those elements include the large air intake on the hood, the side gills just aft of the front wheels, near identical grillework and similarly swoopy rear fenders. And although the photos Ferrari released to the world's press don't do the car justice, Editor-in-Chief Thos L. Bryant — who recently got a sneak peek at the car at the Ferrari factory — says the California "looks absolutely stunning in person."

Unlike the Ferrari Superamerica from a few years back, which featured a roof that simply flipped backward, the California will come only as a true retractable hardtop; meaning, when the top is down, the rear deck is completely flat — just like the Mercedes-Benz SL, for example. Editor Bryant was also fortunate to see the top in action, and he said it was "quite slick in its operation." The factory claims it takes 14 seconds to go from open top to fully-closed position.

 

As with any Ferrari, the engine is the star of the show. In this case it's a 4.3-liter direct-injected flat-crank V-8 that produces 460 bhp. Even more important is the car's use of Ferrari's first dual-clutch gearbox with not six speeds, as on every other recent Ferrari, but seven forward gears. Ferrari claims the California will be able to hit 100 km/h (62 mph) in less than 4 seconds.

 

In another dramatic move, Ferrari has swapped out its traditional double-wishbone suspension at the rear for a multilink setup on the California. And those amazing (and incredibly expensive, lightweight and fade-resistant) Brembo carbon-ceramic brake discs seen on so many Ferraris these days? Standard issue on the California.

 

In yet another new move, Ferrari has been unveiling the California bit by bit online on a special website — www.ferrarigtcountdown.com. The first piece released was the sound of the car's V-8, followed days later by three photographs. More photos and information about the car will continue to be posted in the coming weeks (Ferrari calls it a "virtual voyage of discovery"), right up until the California's official worldwide reveal at the Paris auto show on October 1. Ferrari says the California will start production in late summer in a brand-new building in Maranello. Fans should see them on sale in Europe by the end of the year, with U.S. sales following later, probably as a Slideshow: Ferrari California

Mike Monticello

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Wednesday, June 25th 2008

7:45 PM

Car Makers Lavish Incentives on SUV and Truck Buyers

Soccer moms and cargo haulers rejoice. Buying a new gas guzzler while the price for regular unleaded creeps above $4 a gallon may not be the crazy, cash-wasting move it seems.

Skyrocketing gas prices scared off many would-be buyers of SUVs, trucks, minivans and other large vehicles over the past year. Now auto makers are trying to lure them back onto car dealers' lots by offering head-turning cash incentives — some as high as $8,000 — on these now-notorious gas guzzlers.

Call it an act of desperation. Sales of SUVs and light trucks fell 24% since last May, while heavy truck sales are down 30%, according to Autodata Corp., a New Jersey-based market researcher. (The situation is so dire that both Ford and General Motors are temporarily shuttering some plants that make SUVs and trucks.) During the same time, manufacturer incentives were up 5% year over year, according to Edmunds.com. Today, average incentives for large trucks total $4,667; for large SUVs, $4,603.

"Dealerships have a lot of money tied up in these vehicles," says Jack Nerad, executive editorial director for Kelley Blue Book. "They don't want them sitting on the lot."

Cash isn't the only lure they're using, however. Auto makers are also throwing in generous financing offers with low rates and extended repayment periods, says Jessica Caldwell, an industry analyst for Edmunds.com. One catch: You need stellar credit to qualify for, say, the 0% financing over 36 months that Volvo's offering on its XC90 (see chart below for more current offers). Since most of these financing promotions can't be combined with cash incentive offers, make sure to crunch the numbers to see which deal is best.

Should you bite? Yes, but only if the vehicle makes a better fit for your driving needs than a more compact, fuel-efficient model, says Nerad. "Someone shopping for these kinds of cars has serious carrying need in people or cargo, so a Toyota Prius just isn't going to cut it," he says, "and a $5,000 cash incentive buys a whole lot of gas."

Other factors to consider: how much you drive each month and whether you still owe money on your existing car.

Here are some of the biggest incentives currently on the market:

Current Auto Incentives on 2008 Models

Brand/Model

Total Incentives

Details

Chrysler Aspen

$4,900

$4,500 customer cash*, plus $400 dealer cash**, which cannot be combined with promotional financing or the auto maker's "Let's Refuel America" gas promotion. Good through June 30.

Chevrolet Silverado

$6,500

$5,000 dealer cash, plus $1,500 customer cash, which cannot be combined with promotional financing. Good through June 30.

Dodge Durango

$4,900

$4,500 customer cash, plus $400 dealer cash, which cannot be combined with promotional financing or "Let's Refuel America" promotion. Good through June 30.

Dodge Ram Pickup 1500

$7,900

$5,000 customer cash, plus $2,500 regional customer cash and $400 dealer cash, none of which can be combined with promotional financing or "Let's Refuel America.". Good through June 30.

Ford F-450

$5,500

$5,000 customer cash plus $500 dealer cash, which cannot be combined with promotional financing. Good through June 30.

GMC Sierra

$6,500

$5,000 dealer cash, plus $1,500 customer cash, which cannot be combined with promotional financing. Good through June 30.

Hummer H3

$5,000

$5,000 customer cash, which cannot be combined with promotional financing. Good through June 30.

Honda Ridgeline

$4,500

$4,500 dealer cash, which cannot be combined with promotional financing. Good through June 30.

Infiniti FX45

$6,000

$5,000 dealer cash. Current Infiniti owners are eligible for an extra $1,000 in loyalty cash***. Good through June 30.

Jeep Commander

$5,900

$5,500 customer cash and $400 dealer cash, which cannot be combined with promotional financing or "Let's Refuel America" promotion. Good through June 30.

Lincoln Mark LT

$8,000

$7,000 customer cash, which cannot be combined with promotional financing. Current Lincoln Town Car owners are eligible for an extra $1,000 in loyalty cash. Good through June 30. Financing 0% for up to 60 months or 1.9% for 72. Good through June 30.

Lincoln Navigator

$6,000

$5,000 customer cash, which cannot be combined with promotional financing offer of 0% for up to 60 months or 1.9% for 72. Current Lincoln Town Car owners are also eligible for an extra $1,000 in loyalty cash. Good through June 30. All offers good through June 30.

Mercury Mountaineer

$6,000

$4,000 customer cash, which cannot be combined with promotional financing. Current Mercury Mountaineer owners are eligible for an extra $2,000 in loyalty cash. Good through June 30.

Mitsubishi Endeavor

$5,500

$4,000 customer cash plus $1,500 dealer cash, which cannot be combined with promotional financing. Current Mitsubishi owners are eligible for an extra $500 in loyalty cash. Good through June 30.

Nissan Armada

$4,500

$4,500 customer cash, which cannot be combined with promotional financing offer of 0.9% for up to 60 months or 2.9% for 72. Both offers good through June 30.

Nissan Titan

$5,000

$5,000 customer cash, which cannot be combined with promotional financing offer of 0.9% for up to 60 months or 2.9% for 72. Both offers good through June 30.

Toyota Sequoia

$6,000

$4,000 customer cash, which cannot be combined with promotional financing offer of 0% for up to 60 months. Good through June 30. Current Toyota owners are eligible for an extra $2,000 in loyalty cash. All offers good through June 30.

Volvo XC90

$4,250

$4,250 dealer cash, which cannot be combined with promotional financing offer of 0% for 36 months, 0.9% for 48, 1.9% for 60 or 2.9% for 72. Both offers good through July 7.

Data courtesy of Edmunds.com.
* Customer cash is given directly to the buyer from the manufacturer at the time of sale.
** Dealer cash, or marketing support, is typically an unadvertised manufacturer-to-dealer incentive. Dealers may choose to pass on some or all of the incentive in order to sweeten deals and spur sales. (They can also opt to not pass it on at all.)
*** Loyalty cash rewards consumers who already own or lease a vehicle by the same manufacturer.

Kelli B. Grant

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Wednesday, June 18th 2008

5:58 PM

Honda rolls out new zero-emission car

Honda's new zero-emission, hydrogen fuel cell car rolled off a Japanese production line Monday and is headed to Southern California, where Hollywood is already abuzz over the latest splash in green motoring.

The FCX Clarity, which runs on hydrogen and electricity, emits only water and none of the noxious fumes believed to induce global warming. It is also two times more energy efficient than a gas-electric hybrid and three times that of a standard gasoline-powered car, the company says.

Japan's third biggest automaker expects to lease out a "few dozen" units this year and about 200 units within three years. In California, a three-year lease will run $600 a month, which includes maintenance and collision coverage.

Among the first customers are actress Jamie Lee Curtis and filmmaker husband Christopher Guest, actress Laura Harris, film producer Ron Yerxa, as well as businessmen Jon Spallino and Jim Salomon.

"It's so smooth," said Harris, who played villainness Marie Warner on the hit TV show "24" and was flown over by Honda for the ceremony. "It's like a future machine, but it's not."

The FCX Clarity is an improvement of its previous-generation fuel cell vehicle, the FCX, introduced in 2005.

A breakthrough in the design of the fuel cell stack, which is the unit that powers the car's motor, allowed engineers to lighten the body, expand the interior and increase efficiency, Honda said.

The fuel cell draws on energy synthesized through a chemical reaction between hydrogen gas and oxygen in the air, and a lithium-ion battery pack provides supplemental power. The FCX Clarity has a range of about 270-miles per tank with hydrogen consumption equivalent to 74 miles per gallon, according to the carmaker.

The 3,600-pound vehicle can reach speeds up to 100 miles per hour.

John Mendel, executive vice president of America Honda Motor Co., said at a morning ceremony it was "an especially significant day for American Honda as we plant firm footsteps toward the mainstreaming of fuel cell cars."

The biggest obstacles standing in the way of wider adoption of fuel cell vehicles are cost and the dearth of hydrogen fuel stations. For the Clarity's release in California, Honda said it received 50,000 applications through its website but could only consider those living near stations in Torrance, Santa Monica and Irvine.

Initially, however, the Clarity will go only to a chosen few starting July and then launch in Japan this fall.

California Gov. Arnold Schwarzenegger has called for a statewide network of hydrogen stations, but progress has been slow.

The state has also recently relaxed a mandate for the number of zero-emission cars it aims to have on roads. By 2014, automakers must now sell 7,500 electric and hydrogen fuel cell vehicles, a reduction of 70 percent.

Spallino, who currently drives Honda's older FCX and was also flown in for the ceremony, said he will use the Clarity to drive to and from work and for destinations within the Los Angeles area. The small number of hydrogen fuel stations is the "single limiting factor" for fuel cell vehicles, he said.

"It's more comfortable, and it handles well," said Spallino of Redondo Beach. "It's got everything. You're not sacrificing anything except range."

The world's major automakers have been making heavy investments in fuel cells and other alternative fuel vehicles amid climbing oil prices and concerns about climate change.

Although Honda Motor Co. was the first Japanese automaker to launch a gas-electric hybrid vehicle in the U.S. in 1999, it has been outpaced by the dominance of Toyota's popular Prius.

Toyota announced in May that it has sold more than 1 million Prius hybrids, while both the Honda Insight and the hybrid Accord have been discontinued due to poor sales.

Honda also plans to launch a gas-electric hybrid-only model, as well as hybrid versions of the Civic, the sporty CR-Z and Fit subcompact.

Toyota has announced that it would launch a plug-in hybrid with next-generation lithium-ion batteries by 2010 and a hydrogen fuel cell vehicle later in Japan later this year.

U.S. carmaker General Motors Corp. plans to introduce a Chevrolet Volt plug-in electric vehicle in 2010. It also introduced a test-fleet of hydrogen fuel cell Equinox SUVs.

Honda has no plans for a plug-in electric vehicle. President Takeo Fukui said he does not believe current battery technology is good enough to develop a feasible car.

The company has not revealed how much each car costs to make, and it is unclear when, or if, the car will be available for mass-market sales. Takeo has set a target for 2018, but meeting that goal will depend on whether Honda can significantly lower development and assembly costs as well as market reaction to fuel cells.

TOMOKO A. HOSAKA

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