From BankRate.com:
By Russ Heaps
Here is a list of the 10 most expensive-to-own new vehicles, according to Edmunds.com. Four are from Mercedes-Benz and all but one are European imports. When you consider that the cars on our least-expensive-to-own list cost $0.39 per mile or less to own, the idea of paying $3 to $4 a mile is staggering.
In addition to the average market transaction price and financing rates, the estimates of what it truly costs to own these cars include factors such as fuel, insurance, repairs, maintenance and depreciation. The end result is a ballpark figure for the total cost over the first five years of ownership, as well as the cost per mile based on driving 15,000 miles per year.
All estimates come courtesy of Edmunds.com which features a "True Cost to Own" calculator.
1. Mercedes-Benz SL65 AMG Black Series
Starting price: $301,750
5-year total: $364,471
Cost per mile: $4.86
What pushes the Black Series up the price ladder from the SL65 AMG is the wide use of carbon-fiber body parts and some under-the-hood enhancements. Its 670-horsepower, 6-liter twin-turbo V-12 slingshots this two-seater to 60 miles per hour in less than four seconds. It's also loaded to the gills with high-tech standard equipment.
2. Mercedes-Benz S65 AMG
Starting price: $202,825
5-year total: $244,363
Cost per mile: $3.26
Capable of reaching 60 miles per hour from a standstill in just over four seconds, the S65 AMG combines opulent interior appointments with outrageously aggressive performance. It uses the same 6-liter twin-turbo V-12 found in other high-end Mercedes models but in this application it develops 604 horsepower.
3. Mercedes-Benz CL65 AMG
Starting price: $205,575
5-year total: $230,771
Cost per mile: $3.08
A strikingly handsome coupe, the CL65 AMG is more than a pretty face. Its 604-horsepower, 6-liter twin-turbo V-12 is capable of going from zero to 60 in just over four seconds. Standard gear includes a rearview camera and nighttime vision assist.
4. Audi R8
Starting price: $126,400
5-year total: $159,753
Cost per mile: $2.13
If your goal is to get noticed, there is no surer way to do it than behind the wheel of Audi's R8. Sleek, fast and decadent, the R8 uses a mid-mounted 420-horsepower 4.2-liter V-8 to turn all four wheels. It can dash from zero to 60 in just over four seconds. Sure it's expensive, but it is arguably the most accessible exotic on the market.
5. Porsche 911 Convertible Turbo
Starting price: $141,650
5-year total: $159,393
Cost per mile: $2.13
With an extra-cost options list as long as your arm, this two-seat drop-top offers an array of customizing choices. A 480-horsepower, 3.6-liter twin-turbo flat six-cylinder engine funnels output to all four wheels through a six-speed manual transmission. It gets to 60 miles per hour in less than four seconds.
6. Audi A8 L W12
Starting price: $122,625
5-year total: $153,588
Cost per mile: $2.05
The "L" in its name refers to this luxury sedan's stretched wheelbase, while the "W12" indicates it packs the potent 450-horsepower, 6-liter, W-12 engine under its hood. Fewer than six ticks of the clock are needed for the A8 L W12 to reach 60 miles per hour. Among its standard features are massaging front seats and four-zone automatic climate control.
7. Chevrolet Corvette ZR1
Starting price: $106,620
5-year total: $146,096
Cost per mile: $1.95
The Zeus of 'Vettes, the ZR1 is a supercar by any measure. Motivating it to a zero to 60 time of just over three seconds is a 638-horsepower supercharged 6.2-liter, V-8. Although it doesn't possess the amount of high-end bric-a-brac many of the other entries on this list do, pound for pound and dollar for dollar it may just be the best sports car in the world.
8. Porsche Cayenne Turbo S
Starting price: $125,775
5-year total: $138,613
Cost per mile: $1.85
The only SUV on this list, the Cayenne Turbo S packs Porsche performance into an off-road-capable all-wheel-drive uber package. Turning all four wheels is a 550-horsepower, 4.8-liter, twin-turbo V-8. Reaching 60 miles per hour from a stop takes a hair less than five seconds. A 14-speaker surround-sound audio system and a hard-drive-based navigation system are standard.
9. BMW M6 Convertible
Starting price: $111,725
5-year total: $138,186
Cost per mile: $1.84
The high-performance version of the 6 Series, the M6 is fitted with a 500-horsepower 5-liter, V-10, providing this soft-top with zero to 60 sprints of less than five seconds. A 13-speaker Harman Kardon surround-sound audio system and adaptive xenon headlights are standard.
10. Mercedes-Benz CLS63 AMG
Starting price: $99,775
5-year total: $137,749
Cost per mile: $1.84
No sedan better captures the sleek flow of a coupe's styling than the Mercedes-Benz CLS. In its hopped-up guise as the CLS63 AMG, it complements its drop-dead curb appeal with an asphalt-chomping 507-horsepower, 6.2-liter, V-8 engine. Reaching 60 miles per hour requires just a bit more than four seconds with a top speed of more than 180 miles per hour.
Tuesday, August 25, 2009
10 Cheapest Cars to Own
From BankRate.com:
By Russ Heaps
Tuesday, August 18, 2009
You've read it on Bankrate.com and heard it elsewhere: A well-informed consumer will get a better deal when buying a vehicle.
Research is the key. Every additional piece of information you have increases the likelihood that you will negotiate a fair price, lock in the best financing available and drive away in a car or truck you can afford. The emphasis here is on "afford." Affordability involves much more than down payment and monthly installments. It encompasses other costs such as insurance, fuel, maintenance, repairs and depreciation. You must factor these costs into your annual vehicle-ownership budget as well as into that magical dollar amount you feel you can afford monthly.
All of these factors, of course, may vary depending on the way you use and maintain your car.
Edmunds.com, a leading automotive Web site, features an interactive tool it calls its True Cost to Own calculator, which computes an estimated total five-year cost and the cost per mile based on driving 15,000 miles per year.
Here are the 10 cars that top Edmunds' current list of the most frugal cars to own and operate:
Hyundai Accent GS:
Starting price: $10,690
5-year total cost: $25,958
Cost per mile: 35 cents
As basic transportation, the Accent GS three-door isn't so basic. Its 110-horsepower, 1.6-liter four-cylinder engine delivers decent fuel economy with an EPA estimated 27 mpg in the city and 33 mpg on the highway. The interior is relatively roomy and comes with power accessories and air conditioning.
Nissan Versa Base
Starting price: $10,710
5-year total cost: $27,196
Cost per mile: 36 cents
Nissan Versa: A sedan for the frugal, Versa's stingy fuel consumption earns it an EPA rating of 26 mpg in the city and 34 mpg on the highway. A five-speed manual transmission ushers the 1.6-liter four-cylinder engine's 107 horsepower to the front wheels. Its relatively roomy back seat is a major attraction in this segment; otherwise, its cabin is devoid of frills.
Chevrolet Aveo5 LS
Starting price: $12,685
5-year total cost: $28,360
Cost per mile: 38 cents
Chevrolet Aveo5 LS: Chevy beefed up the Aveo's 1.6-liter four-cylinder for 2009 and it now produces 107 horsepower. EPA estimated fuel economy is a very respectable 25 mpg in the city and 34 mpg on the highway. Among its short list of standard features is a four-speaker audio system with an auxiliary input jack.
Suzuki SX4 Sedan
Starting price: $13,994
5-year total cost: $28,965
Cost per mile: 39 cents
Suzuki SX4 Sedan: A number of trim levels let consumers increase content in smallish dollar increments. In its base form, though, the SX4 offers full-power accessories and a tilt steering wheel. EPA fuel economy estimates are 23 mpg in the city and 31 mpg on the highway earned by a 143-horsepower, 2-liter four-cylinder engine.
Pontiac G3
Starting price: $15,055
5-year total cost: $29,049
Cost per mile: 39 cents
Pontiac G3: Compared to the first four entries on this list, the G3 is positively loaded with standard equipment. Air conditioning, a six-speaker audio system with CD player and auxiliary input jack, and a tilt steering wheel are all standard. A 106-horsepower, 1.6-liter four-cylinder engine mated with a five-speed manual transmission earns it an EPA rating of 27 mpg city/34 mpg highway.
Mazda3 iSport
Starting price: $15,360
5-year total cost: $29,271
Cost per mile: 39 cents
Mazda3 iSport: Six airbags, anti-lock brakes and a four-speaker audio system with CD player and auxiliary audio jack are all standard in this sedan. A 148-horsepower, 2-liter four-cylinder engine collaborates with a five-speed manual transmission to earn EPA estimates of 22 mpg city and 30 mpg highway.
Honda Fit
Starting price: $15,460
5-year total cost: $29,420
Cost per mile: 39 cents
Honda Fit: Nicely appointed, even the base Fit has air conditioning, full-power accessories and a four-speaker audio system with CD player and auxiliary input jack. Its performance is on par with this group and is provided by a 117-horsepower, 1.5-liter four-cylinder engine. Its fuel economy is among the best with EPA estimates of 27 mpg city/33 mpg highway.
Pontiac Vibe
Starting price: $16,735
5-year total cost: $29,512
Cost per mile: 39 cents
Pontiac Vibe: Fraternal twin to the Toyota Matrix, the Vibe in its base form is fairly Spartan. It does come with a four-speaker audio system with CD player and auxiliary input jack, and a tilt/telescoping steering wheel. Power arrives via a 132-horsepower, 1.8-liter four-cylinder engine. Fuel economy is acceptable, with an EPA rating of 26 mpg city and 28 mpg highway.
Toyota Yaris
Starting price: $12,955
5-year total cost: $29,595
Cost per mile: 39 cents
Toyota Yaris: You have to step up a trim level to get an audio system, but the base Yaris three-door hatchback does have air conditioning and a tilt steering column. Its power comes from a 106-horsepower, 1.5-liter four-cylinder engine. With an EPA rating of 29 mpg city and 36 mpg highway, its outstanding fuel economy earned it a spot on our list of top 10 fuel misers.
Nissan Sentra
Starting price: $16,070
5-year total cost: $29,623
Cost per mile: 39 cents
Nissan Sentra: With the most standard equipment of any entry on this list, the Sentra sedan comes with air conditioning, a four-speaker audio system with CD player and auxiliary input jack, and power windows and locks. Its 2-liter four-cylinder engine generates 140 horsepower. Its EPA rating is 25 mpg city and 33 mpg highway.
By Russ Heaps
Tuesday, August 18, 2009
You've read it on Bankrate.com and heard it elsewhere: A well-informed consumer will get a better deal when buying a vehicle.
Research is the key. Every additional piece of information you have increases the likelihood that you will negotiate a fair price, lock in the best financing available and drive away in a car or truck you can afford. The emphasis here is on "afford." Affordability involves much more than down payment and monthly installments. It encompasses other costs such as insurance, fuel, maintenance, repairs and depreciation. You must factor these costs into your annual vehicle-ownership budget as well as into that magical dollar amount you feel you can afford monthly.
All of these factors, of course, may vary depending on the way you use and maintain your car.
Edmunds.com, a leading automotive Web site, features an interactive tool it calls its True Cost to Own calculator, which computes an estimated total five-year cost and the cost per mile based on driving 15,000 miles per year.
Here are the 10 cars that top Edmunds' current list of the most frugal cars to own and operate:
Hyundai Accent GS:
Starting price: $10,690
5-year total cost: $25,958
Cost per mile: 35 cents
As basic transportation, the Accent GS three-door isn't so basic. Its 110-horsepower, 1.6-liter four-cylinder engine delivers decent fuel economy with an EPA estimated 27 mpg in the city and 33 mpg on the highway. The interior is relatively roomy and comes with power accessories and air conditioning.
Nissan Versa Base
Starting price: $10,710
5-year total cost: $27,196
Cost per mile: 36 cents
Nissan Versa: A sedan for the frugal, Versa's stingy fuel consumption earns it an EPA rating of 26 mpg in the city and 34 mpg on the highway. A five-speed manual transmission ushers the 1.6-liter four-cylinder engine's 107 horsepower to the front wheels. Its relatively roomy back seat is a major attraction in this segment; otherwise, its cabin is devoid of frills.
Chevrolet Aveo5 LS
Starting price: $12,685
5-year total cost: $28,360
Cost per mile: 38 cents
Chevrolet Aveo5 LS: Chevy beefed up the Aveo's 1.6-liter four-cylinder for 2009 and it now produces 107 horsepower. EPA estimated fuel economy is a very respectable 25 mpg in the city and 34 mpg on the highway. Among its short list of standard features is a four-speaker audio system with an auxiliary input jack.
Suzuki SX4 Sedan
Starting price: $13,994
5-year total cost: $28,965
Cost per mile: 39 cents
Suzuki SX4 Sedan: A number of trim levels let consumers increase content in smallish dollar increments. In its base form, though, the SX4 offers full-power accessories and a tilt steering wheel. EPA fuel economy estimates are 23 mpg in the city and 31 mpg on the highway earned by a 143-horsepower, 2-liter four-cylinder engine.
Pontiac G3
Starting price: $15,055
5-year total cost: $29,049
Cost per mile: 39 cents
Pontiac G3: Compared to the first four entries on this list, the G3 is positively loaded with standard equipment. Air conditioning, a six-speaker audio system with CD player and auxiliary input jack, and a tilt steering wheel are all standard. A 106-horsepower, 1.6-liter four-cylinder engine mated with a five-speed manual transmission earns it an EPA rating of 27 mpg city/34 mpg highway.
Mazda3 iSport
Starting price: $15,360
5-year total cost: $29,271
Cost per mile: 39 cents
Mazda3 iSport: Six airbags, anti-lock brakes and a four-speaker audio system with CD player and auxiliary audio jack are all standard in this sedan. A 148-horsepower, 2-liter four-cylinder engine collaborates with a five-speed manual transmission to earn EPA estimates of 22 mpg city and 30 mpg highway.
Honda Fit
Starting price: $15,460
5-year total cost: $29,420
Cost per mile: 39 cents
Honda Fit: Nicely appointed, even the base Fit has air conditioning, full-power accessories and a four-speaker audio system with CD player and auxiliary input jack. Its performance is on par with this group and is provided by a 117-horsepower, 1.5-liter four-cylinder engine. Its fuel economy is among the best with EPA estimates of 27 mpg city/33 mpg highway.
Pontiac Vibe
Starting price: $16,735
5-year total cost: $29,512
Cost per mile: 39 cents
Pontiac Vibe: Fraternal twin to the Toyota Matrix, the Vibe in its base form is fairly Spartan. It does come with a four-speaker audio system with CD player and auxiliary input jack, and a tilt/telescoping steering wheel. Power arrives via a 132-horsepower, 1.8-liter four-cylinder engine. Fuel economy is acceptable, with an EPA rating of 26 mpg city and 28 mpg highway.
Toyota Yaris
Starting price: $12,955
5-year total cost: $29,595
Cost per mile: 39 cents
Toyota Yaris: You have to step up a trim level to get an audio system, but the base Yaris three-door hatchback does have air conditioning and a tilt steering column. Its power comes from a 106-horsepower, 1.5-liter four-cylinder engine. With an EPA rating of 29 mpg city and 36 mpg highway, its outstanding fuel economy earned it a spot on our list of top 10 fuel misers.
Nissan Sentra
Starting price: $16,070
5-year total cost: $29,623
Cost per mile: 39 cents
Nissan Sentra: With the most standard equipment of any entry on this list, the Sentra sedan comes with air conditioning, a four-speaker audio system with CD player and auxiliary input jack, and power windows and locks. Its 2-liter four-cylinder engine generates 140 horsepower. Its EPA rating is 25 mpg city and 33 mpg highway.
Saturday, August 8, 2009
Best Car Deals: August 2009
From U.S. News and World Report
By Sean Tucker
The U.S. government has poured a shot of rocket fuel into a depressed car industry. With the help of the federal Cash for Clunkers rebate program, Americans have begun buying cars again, at a pace not seen since late 2007.
The Car Allowance Rebate System, the impulse behind the surge, offers buyers a credit of up to $4,500 toward the purchase of a new, more fuel-efficient car when they turn in an older gas-guzzler.
Automakers have tailored their incentives around the CARS program this month. Most are offering additional rebates on top of the government's contribution, making for nearly unprecedented low prices on some models.
It's working. It may even be working too well. Some dealerships are running low on popular cars.
Chrysler, for instance, offered to match the government's rebate on almost every model it makes with its "Double Ca$h For Your Old Car" promotion when the program started, but had to restrict that offer to just a few models after one week because its supply of the most fuel-efficient models dwindled quickly once CARS launched. Volkswagen has nearly run out of its most fuel-efficient car, the diesel-powered Jetta TDI. Some Toyota dealers are having trouble locating another Prius to sell.
Still, great deals are available. And, with or without promotions, the fundamentals of car shopping still apply this month. Take good care of your credit rating, negotiate respectfully with a dealer who is trying to survive a troubled market, and apply any cash-back rebates to the down payment to knock down what you owe before you even drive away. If you keep those principles in mind, you'll be able to negotiate a good deal even if you can't take advantage of government funds.
...
The Best Deals we found this month are listed below:
2009 Hyundai Elantra
Up to $2,000 cash back plus $1.49/gallon gas for a year
Our 2009 Best Small Car for the Money isn't really a small car. The Elantra is so roomy that the EPA classifies it as midsize. Yet it's sold for a small car price, and gets small car gas mileage, with an EPA combined fuel economy rating of 27 mpg. This month, it's available with a $2,000 rebate ($1,500 for the Elantra Touring wagon edition), plus Hyundai's unique pricelock program, which caps the price of gas at $1.49 per gallon for the first year you own the car - refunding you the difference if you pay more. It's no wonder the Elantra has been one of the 10 fastest-selling vehicles under the Cash for Clunkers rebate program.
Note: The Elantra's combined EPA-estimated gas mileage is greater than 22 mpg, so it is eligible for the Cash for Clunkers rebate.
MSRP: $14,120 - $17,820
Invoice: $13,735 - $17,090
MPG: 24 City / 33 Hwy
2009 BMW 335D
$4,500 "eco credit" plus up to $5,400 in government rebates
The BMW 3-Series is widely considered the benchmark sport sedan. Other cars are judged on how close they come to matching this car. Because of that reputation, the German automaker generally doesn't discount the 3-Series much. However, a diesel-powered option introduced for 2009 hasn't been selling well. There's no good reason for that - the 335D offers more off-the-line torque than any other 3- Series model, and is the most fuel-efficient. Perhaps Americans simply aren't sold on the benefits of diesel. So the company has tacked a rare incentive onto the diesel 3 -- a $4,500 "eco credit." The car also qualifies for a $900 tax incentive for fuel-efficient diesel-powered cars. That's $5,400 off the price of the best Upscale Midsize Sedan on the market. If you have clunker that qualifies for the full $4,500 voucher, the discount climbs to nearly $10,000 - an unprecedented markdown.
Note: The 335D's combined EPA-estimated gas mileage is greater than 22 mpg, so it is eligible for the Cash for Clunkers rebate.
MSRP: $33,600 - $50,700
Invoice:$30,910 - $46,645
MPG: 23 City / 36 Hwy
2009 Ford Taurus
0% APR financing for 60 months or up to $3,500 cash back
The arrival of the exciting 2010 Ford Taurus has left thousands of 2009 Taurus models sitting on dealership lots gathering dust. On the outside, the '09 Taurus is certainly not the equal of the muscular new bull...but look deeper, and you'll quickly see that it's a solid and affordable choice for those who need a full-size car. One of the most fuel-efficient large cars, the Taurus is also a "Top Safety Pick" from the Insurance Institute for Highway Safety. This is a great month to buy one. It's available at a significant discount before you even start negotiating, and dealers are anxious to negotiate...they want to move this Taurus off the lot so they can replace it with the 2010 model that is earning all the good press.
Note: The Taurus' combined EPA-estimated gas mileage of front-wheel-drive Tauruses is greater than 22 mpg, so those cars are eligible for the Cash for Clunkers rebate. All-wheel-drive models are not.
MSRP:$25,170 - $32,520
Invoice:$23,103 - $29,718
MPG:18 City / 28 Hwy
2009 Ford Escape
0% financing for 60 months or up to $2,500 cash back
Americans have figured out that the 2009 Ford Escape is a great deal. It's been one of the ten fastest-selling vehicles under the Cash for Clunkers rebate program. The reasons are easy to see. An Insurance Institute for Highway Safety "Top Safety Pick," the Escape is a smooth driver and one of the more fuel-efficient SUVs. It's also high-tech, available with Ford's unique SYNC infotainment system, which allows drivers to control Bluetooth devices inside the car with voice commands. This month, it's available with no interest for five years, or $2,500 cash back.
Note: The Escape's combined EPA-estimated gas mileage is greater than 18 mpg, so it is eligible for the Cash for Clunkers rebate.
MSRP:$20,435 - $27,670
Invoice:$19,245 - $25,625
MPG:20 City / 28 Hwy
2009 Volkswagen Touareg TDI
0% APR financing for 60 months
The Volkswagen Touareg is one of the sharpest-looking SUVS on the road, and boasts an upscale cabin that wouldn't be out of place in a Mercedes-Benz or a Lexus. Its roomy interior includes a long list of standard features, including one of the more impressive stereos in the class. And unlike most sporty- looking SUVs, this one holds its own off-road. The diesel-powered TDI edition even meets Cash for Clunkers requirements. This month, it's available interest-free for five years, keeping payments reasonable.
Note: The Touareg TDI's combined EPA-estimated gas mileage is greater than 18 mpg, so it is eligible for the Cash for Clunkers rebate. Other Touareg models do not qualify.
MSRP: $39,300 - $48,900
Invoice: $36,203 - $44,997
MPG: 14 City / 20 Hwy
2009 Mazda CX-9
0% APR financing for 36 months plus $1,500 cash back
The Mazda CX-9 has many of the virtues of a large SUV, but few of the vices. As buyers of big sport ‘utes expect, the CX-9 can comfortably seat seven and haul a lot of cargo. But, somewhat unexpectedly, it's easy to drive - even a bit sporty. It's also among the most fuel-efficient large SUVs, and, in most configurations, carries an MSRP low enough to qualify for the Cash for Clunkers rebate program.
Note: The combined EPA-estimated gas mileage of two-wheel-drive CX-9s is greater than 18 mpg, so they are eligible for the Cash for Clunkers rebate, though four-wheel-drive versions do not qualify.
MSRP: $29,820 - $35,205
Invoice: $27,600 - $32,567
MPG: 16 City / 22 Hwy
2009 Dodge Ram
Up to $5,500 cash back or 0% APR financing for 60 months plus $2,000 cash back
The 2009 Dodge Ram is one of the smoothest-driving trucks ever built. Dodge designed the Ram with a unique coil-over suspension, giving it the sharpest handling on any full-size pickup. It also offers comfortable seating, a high-tech cabin, and innovative Rambox storage containers over the fenders, which can even be plugged and used as coolers - making you, hands down, the hero of the tailgate party. This month, it's available with up to $5,500 in rebates, or a combined rebate and interest-free financing offer.
Note: The Ram is available in many configurations, but most have a combined fuel economy greater than 15 mpg, so many are eligible for the Cash for Clunkers rebate.
MSRP: $21,520 - $43,490
Invoice: $19,390 - $38,769
MPG: 14 City / 19 Hwy
2009 Porsche 911
1.9% APR financing for 36 months
Porsche is in trouble, for reasons that have nothing to do with its extraordinary cars. The company overreached last year in a failed attempt to buy Volkswagen, and now faces a mountain of debt. Industry analysts widely expect Porsche to sell itself to VW in order to save its hide. But Porsche's moment of crisis is a moment of opportunity for car buyers. After all, the crisis was caused by overreaching management - the cars are still the stuff of legend. Porsche vehicles are almost never discounted. There is no need to mark them down because there is never a shortage of people dreaming of a Porsche. But this month, the company has tendered a rare financing offer on virtually all of its vehicles. While 1.9% APR is nothing revolutionary, it's unheard of from Porsche...and here it is, offered on the iconic 911, with its four-second zero-to-sixty time and legendary razor-sharp handling. The offer lasts until the end of September.
Note: The Cash for Clunkers rebate does not apply to cars in this price range.
MSRP: $76,300 - $103,900
Invoice: $68,490 - $93,330
MPG: 18 City / 26 Hwy
By Sean Tucker
The U.S. government has poured a shot of rocket fuel into a depressed car industry. With the help of the federal Cash for Clunkers rebate program, Americans have begun buying cars again, at a pace not seen since late 2007.
The Car Allowance Rebate System, the impulse behind the surge, offers buyers a credit of up to $4,500 toward the purchase of a new, more fuel-efficient car when they turn in an older gas-guzzler.
Automakers have tailored their incentives around the CARS program this month. Most are offering additional rebates on top of the government's contribution, making for nearly unprecedented low prices on some models.
It's working. It may even be working too well. Some dealerships are running low on popular cars.
Chrysler, for instance, offered to match the government's rebate on almost every model it makes with its "Double Ca$h For Your Old Car" promotion when the program started, but had to restrict that offer to just a few models after one week because its supply of the most fuel-efficient models dwindled quickly once CARS launched. Volkswagen has nearly run out of its most fuel-efficient car, the diesel-powered Jetta TDI. Some Toyota dealers are having trouble locating another Prius to sell.
Still, great deals are available. And, with or without promotions, the fundamentals of car shopping still apply this month. Take good care of your credit rating, negotiate respectfully with a dealer who is trying to survive a troubled market, and apply any cash-back rebates to the down payment to knock down what you owe before you even drive away. If you keep those principles in mind, you'll be able to negotiate a good deal even if you can't take advantage of government funds.
...
The Best Deals we found this month are listed below:
2009 Hyundai Elantra
Up to $2,000 cash back plus $1.49/gallon gas for a year
Our 2009 Best Small Car for the Money isn't really a small car. The Elantra is so roomy that the EPA classifies it as midsize. Yet it's sold for a small car price, and gets small car gas mileage, with an EPA combined fuel economy rating of 27 mpg. This month, it's available with a $2,000 rebate ($1,500 for the Elantra Touring wagon edition), plus Hyundai's unique pricelock program, which caps the price of gas at $1.49 per gallon for the first year you own the car - refunding you the difference if you pay more. It's no wonder the Elantra has been one of the 10 fastest-selling vehicles under the Cash for Clunkers rebate program.
Note: The Elantra's combined EPA-estimated gas mileage is greater than 22 mpg, so it is eligible for the Cash for Clunkers rebate.
MSRP: $14,120 - $17,820
Invoice: $13,735 - $17,090
MPG: 24 City / 33 Hwy
2009 BMW 335D
$4,500 "eco credit" plus up to $5,400 in government rebates
The BMW 3-Series is widely considered the benchmark sport sedan. Other cars are judged on how close they come to matching this car. Because of that reputation, the German automaker generally doesn't discount the 3-Series much. However, a diesel-powered option introduced for 2009 hasn't been selling well. There's no good reason for that - the 335D offers more off-the-line torque than any other 3- Series model, and is the most fuel-efficient. Perhaps Americans simply aren't sold on the benefits of diesel. So the company has tacked a rare incentive onto the diesel 3 -- a $4,500 "eco credit." The car also qualifies for a $900 tax incentive for fuel-efficient diesel-powered cars. That's $5,400 off the price of the best Upscale Midsize Sedan on the market. If you have clunker that qualifies for the full $4,500 voucher, the discount climbs to nearly $10,000 - an unprecedented markdown.
Note: The 335D's combined EPA-estimated gas mileage is greater than 22 mpg, so it is eligible for the Cash for Clunkers rebate.
MSRP: $33,600 - $50,700
Invoice:$30,910 - $46,645
MPG: 23 City / 36 Hwy
2009 Ford Taurus
0% APR financing for 60 months or up to $3,500 cash back
The arrival of the exciting 2010 Ford Taurus has left thousands of 2009 Taurus models sitting on dealership lots gathering dust. On the outside, the '09 Taurus is certainly not the equal of the muscular new bull...but look deeper, and you'll quickly see that it's a solid and affordable choice for those who need a full-size car. One of the most fuel-efficient large cars, the Taurus is also a "Top Safety Pick" from the Insurance Institute for Highway Safety. This is a great month to buy one. It's available at a significant discount before you even start negotiating, and dealers are anxious to negotiate...they want to move this Taurus off the lot so they can replace it with the 2010 model that is earning all the good press.
Note: The Taurus' combined EPA-estimated gas mileage of front-wheel-drive Tauruses is greater than 22 mpg, so those cars are eligible for the Cash for Clunkers rebate. All-wheel-drive models are not.
MSRP:$25,170 - $32,520
Invoice:$23,103 - $29,718
MPG:18 City / 28 Hwy
2009 Ford Escape
0% financing for 60 months or up to $2,500 cash back
Americans have figured out that the 2009 Ford Escape is a great deal. It's been one of the ten fastest-selling vehicles under the Cash for Clunkers rebate program. The reasons are easy to see. An Insurance Institute for Highway Safety "Top Safety Pick," the Escape is a smooth driver and one of the more fuel-efficient SUVs. It's also high-tech, available with Ford's unique SYNC infotainment system, which allows drivers to control Bluetooth devices inside the car with voice commands. This month, it's available with no interest for five years, or $2,500 cash back.
Note: The Escape's combined EPA-estimated gas mileage is greater than 18 mpg, so it is eligible for the Cash for Clunkers rebate.
MSRP:$20,435 - $27,670
Invoice:$19,245 - $25,625
MPG:20 City / 28 Hwy
2009 Volkswagen Touareg TDI
0% APR financing for 60 months
The Volkswagen Touareg is one of the sharpest-looking SUVS on the road, and boasts an upscale cabin that wouldn't be out of place in a Mercedes-Benz or a Lexus. Its roomy interior includes a long list of standard features, including one of the more impressive stereos in the class. And unlike most sporty- looking SUVs, this one holds its own off-road. The diesel-powered TDI edition even meets Cash for Clunkers requirements. This month, it's available interest-free for five years, keeping payments reasonable.
Note: The Touareg TDI's combined EPA-estimated gas mileage is greater than 18 mpg, so it is eligible for the Cash for Clunkers rebate. Other Touareg models do not qualify.
MSRP: $39,300 - $48,900
Invoice: $36,203 - $44,997
MPG: 14 City / 20 Hwy
2009 Mazda CX-9
0% APR financing for 36 months plus $1,500 cash back
The Mazda CX-9 has many of the virtues of a large SUV, but few of the vices. As buyers of big sport ‘utes expect, the CX-9 can comfortably seat seven and haul a lot of cargo. But, somewhat unexpectedly, it's easy to drive - even a bit sporty. It's also among the most fuel-efficient large SUVs, and, in most configurations, carries an MSRP low enough to qualify for the Cash for Clunkers rebate program.
Note: The combined EPA-estimated gas mileage of two-wheel-drive CX-9s is greater than 18 mpg, so they are eligible for the Cash for Clunkers rebate, though four-wheel-drive versions do not qualify.
MSRP: $29,820 - $35,205
Invoice: $27,600 - $32,567
MPG: 16 City / 22 Hwy
2009 Dodge Ram
Up to $5,500 cash back or 0% APR financing for 60 months plus $2,000 cash back
The 2009 Dodge Ram is one of the smoothest-driving trucks ever built. Dodge designed the Ram with a unique coil-over suspension, giving it the sharpest handling on any full-size pickup. It also offers comfortable seating, a high-tech cabin, and innovative Rambox storage containers over the fenders, which can even be plugged and used as coolers - making you, hands down, the hero of the tailgate party. This month, it's available with up to $5,500 in rebates, or a combined rebate and interest-free financing offer.
Note: The Ram is available in many configurations, but most have a combined fuel economy greater than 15 mpg, so many are eligible for the Cash for Clunkers rebate.
MSRP: $21,520 - $43,490
Invoice: $19,390 - $38,769
MPG: 14 City / 19 Hwy
2009 Porsche 911
1.9% APR financing for 36 months
Porsche is in trouble, for reasons that have nothing to do with its extraordinary cars. The company overreached last year in a failed attempt to buy Volkswagen, and now faces a mountain of debt. Industry analysts widely expect Porsche to sell itself to VW in order to save its hide. But Porsche's moment of crisis is a moment of opportunity for car buyers. After all, the crisis was caused by overreaching management - the cars are still the stuff of legend. Porsche vehicles are almost never discounted. There is no need to mark them down because there is never a shortage of people dreaming of a Porsche. But this month, the company has tendered a rare financing offer on virtually all of its vehicles. While 1.9% APR is nothing revolutionary, it's unheard of from Porsche...and here it is, offered on the iconic 911, with its four-second zero-to-sixty time and legendary razor-sharp handling. The offer lasts until the end of September.
Note: The Cash for Clunkers rebate does not apply to cars in this price range.
MSRP: $76,300 - $103,900
Invoice: $68,490 - $93,330
MPG: 18 City / 26 Hwy
Doing the ‘Clunker’ Calculus
In the New York Times:
The “cash for clunkers” program helped increase July auto sales to the highest level this year.
By MATTHEW L. WALD
Published: August 7, 2009
THE “cash for clunkers” program will be back in full swing this weekend after President Obama signed a program extension on Friday. The $2 billion infusion should help dealers sell thousands of cars to customers who can reap a bounty of $3,500 to $4,500 for trading in an old vehicle.
The short-term effect will be obvious, but the program’s longer-term value — either as a method of stimulating the economy or saving energy — is less clear. Economists say that most buyers simply moved up the timing of their purchase, and that the projected gasoline savings are exaggerated because many of the trade-ins were seldom used.
The program’s first $1 billion was considered money well spent, at least by the new car industry, because it lured a quarter-million buyers into dealerships; the vehicles they purchased would go about 60 percent farther on a gallon of gasoline than the ones they turned in.
But measuring the stimulative effect of the program would require employing scientific methods like those used in drug trials, where some participants are given a placebo instead of the drug being tested. The problem, according to market experts, is that nearly everyone who bought new cars would have done so at some point anyway.
So what will sales be like in the coming months, now that many consumers have moved up their plans to buy a new vehicle? There were extra sales in July and the same will be true in August. And the number of sales under the program will be measured precisely — the Transportation Department said 245,384 vehicles had been sold by Friday morning, with rebates totaling $1.03 billion.
But the Transportation Department will not be able to measure how many shoppers would have purchased a car this fall — when the 2010 models go on sale — or in the winter or spring.
Likewise the fuel savings will be hard to calculate. Here is a possible best case: The average clunker traveled 12,000 miles a year at 16 miles a gallon, consuming 750 gallons. It was replaced with a new vehicle — probably a car, although the “clunkers” offered by the public were often pickups or S.U.V.’s — that can travel the same 12,000 miles on 480 gallons, a savings of 270 gallons.
Multiply by 245,000, the number of vehicles purchased using the first $1 billion of incentives, and the country burns 66.2 million fewer gallons of gasoline a year, or about 1.6 million barrels. At the rate America burns oil, that is about a two-hour supply.
Here is a possible worst case: The clunker was a pickup or S.U.V. driven only a few thousand miles a year because the family had other vehicles. When the cost of fuel went up, the gas-guzzling clunker was relegated to the back of the driveway.
Now the family has traded the clunker for a new fuel-efficient sedan, which will be driven 12,000 miles a year. The miles it displaces are not the ones that would have been traveled in the old S.U.V., but by another sedan that is still on the road. That, in turn, reduces the mileage improvement and gasoline savings achieved.
In multicar households — which is to say, in most American households — the newest car often gets driven the most miles, and the oldest one the least. So, some researchers rightly ask, how fuel-efficient is the car the family still owns but which will now be parked more often?
“There’s no real way to calculate it without making a bunch of assumptions,” said Lee Schipper, a researcher at the University of California, Berkeley, and at Stanford.
Others acknowledge the problem. “The cash for clunkers program helps the economy a lot and improves oil security a little,” said Jason S. Grumet, president of the Bipartisan Policy Center and an old hand at energy and pollution policy. He formerly headed a multistate clean air agency, and served on President Obama’s transition team.
“The fuel-saving benefits pale in comparison to President Obama’s significant strengthening of mileage standards earlier this year,” Mr. Grumet said, “but every little bit helps.”
He was referring to the national fuel economy standard signed into law in May that will be phased in beginning with the 2012 model year. By 2016, cars will have to average 39 miles a gallon.
That raises more questions. Seven years from now, when cars have to average 39 miles a gallon, what will we think of a government program that enticed hundreds of thousands of consumers to buy vehicles that got 30 miles a gallon (and that in 2016 will be middle-aged)? Had the program not existed, some of those buyers might have waited until 2012, when the new mileage rules begin to be phased in.
But in the end, “cash for clunkers” may help undo a previous government program: for years, small businesses got a tax break for buying S.U.V.’s, but only if they were the very largest — at least 6,000 pounds.
The “cash for clunkers” program helped increase July auto sales to the highest level this year.
By MATTHEW L. WALD
Published: August 7, 2009
THE “cash for clunkers” program will be back in full swing this weekend after President Obama signed a program extension on Friday. The $2 billion infusion should help dealers sell thousands of cars to customers who can reap a bounty of $3,500 to $4,500 for trading in an old vehicle.
The short-term effect will be obvious, but the program’s longer-term value — either as a method of stimulating the economy or saving energy — is less clear. Economists say that most buyers simply moved up the timing of their purchase, and that the projected gasoline savings are exaggerated because many of the trade-ins were seldom used.
The program’s first $1 billion was considered money well spent, at least by the new car industry, because it lured a quarter-million buyers into dealerships; the vehicles they purchased would go about 60 percent farther on a gallon of gasoline than the ones they turned in.
But measuring the stimulative effect of the program would require employing scientific methods like those used in drug trials, where some participants are given a placebo instead of the drug being tested. The problem, according to market experts, is that nearly everyone who bought new cars would have done so at some point anyway.
So what will sales be like in the coming months, now that many consumers have moved up their plans to buy a new vehicle? There were extra sales in July and the same will be true in August. And the number of sales under the program will be measured precisely — the Transportation Department said 245,384 vehicles had been sold by Friday morning, with rebates totaling $1.03 billion.
But the Transportation Department will not be able to measure how many shoppers would have purchased a car this fall — when the 2010 models go on sale — or in the winter or spring.
Likewise the fuel savings will be hard to calculate. Here is a possible best case: The average clunker traveled 12,000 miles a year at 16 miles a gallon, consuming 750 gallons. It was replaced with a new vehicle — probably a car, although the “clunkers” offered by the public were often pickups or S.U.V.’s — that can travel the same 12,000 miles on 480 gallons, a savings of 270 gallons.
Multiply by 245,000, the number of vehicles purchased using the first $1 billion of incentives, and the country burns 66.2 million fewer gallons of gasoline a year, or about 1.6 million barrels. At the rate America burns oil, that is about a two-hour supply.
Here is a possible worst case: The clunker was a pickup or S.U.V. driven only a few thousand miles a year because the family had other vehicles. When the cost of fuel went up, the gas-guzzling clunker was relegated to the back of the driveway.
Now the family has traded the clunker for a new fuel-efficient sedan, which will be driven 12,000 miles a year. The miles it displaces are not the ones that would have been traveled in the old S.U.V., but by another sedan that is still on the road. That, in turn, reduces the mileage improvement and gasoline savings achieved.
In multicar households — which is to say, in most American households — the newest car often gets driven the most miles, and the oldest one the least. So, some researchers rightly ask, how fuel-efficient is the car the family still owns but which will now be parked more often?
“There’s no real way to calculate it without making a bunch of assumptions,” said Lee Schipper, a researcher at the University of California, Berkeley, and at Stanford.
Others acknowledge the problem. “The cash for clunkers program helps the economy a lot and improves oil security a little,” said Jason S. Grumet, president of the Bipartisan Policy Center and an old hand at energy and pollution policy. He formerly headed a multistate clean air agency, and served on President Obama’s transition team.
“The fuel-saving benefits pale in comparison to President Obama’s significant strengthening of mileage standards earlier this year,” Mr. Grumet said, “but every little bit helps.”
He was referring to the national fuel economy standard signed into law in May that will be phased in beginning with the 2012 model year. By 2016, cars will have to average 39 miles a gallon.
That raises more questions. Seven years from now, when cars have to average 39 miles a gallon, what will we think of a government program that enticed hundreds of thousands of consumers to buy vehicles that got 30 miles a gallon (and that in 2016 will be middle-aged)? Had the program not existed, some of those buyers might have waited until 2012, when the new mileage rules begin to be phased in.
But in the end, “cash for clunkers” may help undo a previous government program: for years, small businesses got a tax break for buying S.U.V.’s, but only if they were the very largest — at least 6,000 pounds.
Thursday, August 6, 2009
Cars Hurt Most by the Recession
From U.S. News and World Report:
By Rick Newman, U.S. News
Last summer, when the prospect of a General Motors bankruptcy started to materialize, CEO Rick Wagoner was insistent: A Chapter 11 filing would be ruinous.
He was wrong, but not by a lot. GM and Chrysler are both still in business following unprecedented bankruptcy filings—but only thanks to billions in federal aid and government guarantees backing their products. And the two automakers will look quite different in their new incarnations. At GM, Wagoner is gone. His replacement, Fritz Henderson, has cut half of GM's eight divisions, leaving Chevrolet, Cadillac, Buick, and GMC. Chrysler is now owned by Italian automaker Fiat and desperately awaiting fresh technology and new models needed to become competitive. Many current Chrysler models may simply disappear.
Those are the biggest headlines, but the rest of the auto industry is reeling as well. Overall sales are down about 35 percent from last year, which itself was a bust, thanks to $4 gas and an incipient recession. Toyota, the world's biggest automaker, lost nearly $5 billion last year and might fare no better this year. Other bankruptcies may be on the horizon, with conglomerates in China and India prowling for bargains and Western know-how amid the wreckage. While some familiar brands could vanish, new ones may soon arrive in U.S. dealerships. Warren Buffett, for instance, believes a Chinese firm called BYD is one of the world's most promising electric-car companies—and has invested about $230 million in it.
The next several years are likely to represent the biggest shakeout in the U.S. auto industry since the 1930s, and I decided to gauge who's falling behind in what has become a frenzied race to survive. With the industry in a tailspin, sales at every major automaker are down, so I used data from J.D. Power & Associates to measure which automakers have been losing the most market share. That reveals which models and manufacturers are doing worst relative to their competitors.
Since brand loyalty matters most when money is scarce, the automakers losing market share today are likely to flounder even if there's an upturn in the economy. These seven nameplates have lost the most market share so far in 2009, compared to 2008:
Chrysler (1.9 percent market share, down 0.9 percentage point from 2008). Fire sales at shuttered dealers may have attracted a few bargain hunters, but Chrysler is proving that bankruptcy is bad for business. Sales of every Chrysler model except the Town & Country minivan are down more than 50 percent in 2009, and there's little on the way over the next 12 months to brighten the picture. The parent company is now officially Chrysler-Fiat, but the Fiat-made Eurodarters we've been hearing about won't arrive until 2011 at the earliest. They could help revitalize the Chrysler brand, the weakest and smallest under the corporate umbrella (which also includes Dodge and Jeep). But it's also possible that the whole Chrysler division could be folded into other parts of Chrysler-Fiat—or sold or dissolved.
Dodge (5.5 percent market share, down 0.8 point). Chrysler's sister division is suffering from the same double whammy: trying to survive bankruptcy with a product lineup that's middling at best. The Ram pickup is the strongest Dodge vehicle, with sales down less than the industry average. A rebound in housing and construction could help turn Ram sales around. The flashy new Challenger muscle car gives the popular Ford Mustang and Chevy Camaro some competition. And the Journey crossover is thrifty and practical. But the rest of the Dodge lineup is aging and underwhelming.
Chevrolet (12.4 percent market share, down 0.6 point). There's reason for optimism at Chevy—GM's biggest division—which can boast a mainstream hit in the Malibu sedan and an exciting "halo vehicle" in the hot new Camaro. But nearly every other vehicle in the lineup has lost market share over the past year, evidence that GM's bankruptcy has hurt even its strongest division. With GM folding Pontiac and selling Saturn, Chevy needs to make a strong recovery if GM is ever going to return to profitability.
Saturn (0.9 percent market share, down 0.5 point). There are still a few loyalists, but Saturn's sales and market share began to plunge on the news that GM would sell its "no hassle" division. The new owner, Penske Automotive Group, hasn't said yet what kinds of cars the new Saturn will sell, but they could be imports from Korea or even China. Until those arrive in a year or two, GM will continue to provide lame-duck vehicles to help keep Saturn's 350 dealerships open.
Toyota (13.6 percent market share, down 0.4 point). The big loser for Toyota has been its Tundra pickup truck, which has failed to wrest key turf from Ford and Chevy even though it's made at an expensive new plant in Texas. The new Honda Insight hybrid undercuts Toyota's Prius on price, and Honda's Accord has been a tough competitor to the Camry. But one reason Toyota has lost market share is that is hasn't cut prices as much as competitors or offered the same costly incentives. Share is likely to bounce back as some GM and Chrysler buyers flee to more stable carmakers.
Scion (0.5 percent market share, down 0.4 point). The trio of small, inexpensive cars that make up Toyota's Gen Y division—the tC, xB, and xD—should appeal to buyers in lean times. But competing thriftmobiles like the Honda Fit and Mazda3 have more mainstream appeal than Scion's funky designs. And other compacts like the Kia Rio and Hyundai Elantra come cheaper.
Suzuki (0.8 percent market share, down 0.3 point). Yes, Suzuki still sells cars here, although it suspended production of its XL-7 SUV last year and pulled the Reno and Forenza sedans from its lineup. What's left? The Grand Vitara crossover, the SX-4 compact, and a pickup called the Equator. That's a pretty flimsy lineup, but if you buy an SX-4, at least you'll get three months of free gas. Better hurry, though: The last company that tried a promotion like that was Chrysler.
By Rick Newman, U.S. News
Last summer, when the prospect of a General Motors bankruptcy started to materialize, CEO Rick Wagoner was insistent: A Chapter 11 filing would be ruinous.
He was wrong, but not by a lot. GM and Chrysler are both still in business following unprecedented bankruptcy filings—but only thanks to billions in federal aid and government guarantees backing their products. And the two automakers will look quite different in their new incarnations. At GM, Wagoner is gone. His replacement, Fritz Henderson, has cut half of GM's eight divisions, leaving Chevrolet, Cadillac, Buick, and GMC. Chrysler is now owned by Italian automaker Fiat and desperately awaiting fresh technology and new models needed to become competitive. Many current Chrysler models may simply disappear.
Those are the biggest headlines, but the rest of the auto industry is reeling as well. Overall sales are down about 35 percent from last year, which itself was a bust, thanks to $4 gas and an incipient recession. Toyota, the world's biggest automaker, lost nearly $5 billion last year and might fare no better this year. Other bankruptcies may be on the horizon, with conglomerates in China and India prowling for bargains and Western know-how amid the wreckage. While some familiar brands could vanish, new ones may soon arrive in U.S. dealerships. Warren Buffett, for instance, believes a Chinese firm called BYD is one of the world's most promising electric-car companies—and has invested about $230 million in it.
The next several years are likely to represent the biggest shakeout in the U.S. auto industry since the 1930s, and I decided to gauge who's falling behind in what has become a frenzied race to survive. With the industry in a tailspin, sales at every major automaker are down, so I used data from J.D. Power & Associates to measure which automakers have been losing the most market share. That reveals which models and manufacturers are doing worst relative to their competitors.
Since brand loyalty matters most when money is scarce, the automakers losing market share today are likely to flounder even if there's an upturn in the economy. These seven nameplates have lost the most market share so far in 2009, compared to 2008:
Chrysler (1.9 percent market share, down 0.9 percentage point from 2008). Fire sales at shuttered dealers may have attracted a few bargain hunters, but Chrysler is proving that bankruptcy is bad for business. Sales of every Chrysler model except the Town & Country minivan are down more than 50 percent in 2009, and there's little on the way over the next 12 months to brighten the picture. The parent company is now officially Chrysler-Fiat, but the Fiat-made Eurodarters we've been hearing about won't arrive until 2011 at the earliest. They could help revitalize the Chrysler brand, the weakest and smallest under the corporate umbrella (which also includes Dodge and Jeep). But it's also possible that the whole Chrysler division could be folded into other parts of Chrysler-Fiat—or sold or dissolved.
Dodge (5.5 percent market share, down 0.8 point). Chrysler's sister division is suffering from the same double whammy: trying to survive bankruptcy with a product lineup that's middling at best. The Ram pickup is the strongest Dodge vehicle, with sales down less than the industry average. A rebound in housing and construction could help turn Ram sales around. The flashy new Challenger muscle car gives the popular Ford Mustang and Chevy Camaro some competition. And the Journey crossover is thrifty and practical. But the rest of the Dodge lineup is aging and underwhelming.
Chevrolet (12.4 percent market share, down 0.6 point). There's reason for optimism at Chevy—GM's biggest division—which can boast a mainstream hit in the Malibu sedan and an exciting "halo vehicle" in the hot new Camaro. But nearly every other vehicle in the lineup has lost market share over the past year, evidence that GM's bankruptcy has hurt even its strongest division. With GM folding Pontiac and selling Saturn, Chevy needs to make a strong recovery if GM is ever going to return to profitability.
Saturn (0.9 percent market share, down 0.5 point). There are still a few loyalists, but Saturn's sales and market share began to plunge on the news that GM would sell its "no hassle" division. The new owner, Penske Automotive Group, hasn't said yet what kinds of cars the new Saturn will sell, but they could be imports from Korea or even China. Until those arrive in a year or two, GM will continue to provide lame-duck vehicles to help keep Saturn's 350 dealerships open.
Toyota (13.6 percent market share, down 0.4 point). The big loser for Toyota has been its Tundra pickup truck, which has failed to wrest key turf from Ford and Chevy even though it's made at an expensive new plant in Texas. The new Honda Insight hybrid undercuts Toyota's Prius on price, and Honda's Accord has been a tough competitor to the Camry. But one reason Toyota has lost market share is that is hasn't cut prices as much as competitors or offered the same costly incentives. Share is likely to bounce back as some GM and Chrysler buyers flee to more stable carmakers.
Scion (0.5 percent market share, down 0.4 point). The trio of small, inexpensive cars that make up Toyota's Gen Y division—the tC, xB, and xD—should appeal to buyers in lean times. But competing thriftmobiles like the Honda Fit and Mazda3 have more mainstream appeal than Scion's funky designs. And other compacts like the Kia Rio and Hyundai Elantra come cheaper.
Suzuki (0.8 percent market share, down 0.3 point). Yes, Suzuki still sells cars here, although it suspended production of its XL-7 SUV last year and pulled the Reno and Forenza sedans from its lineup. What's left? The Grand Vitara crossover, the SX-4 compact, and a pickup called the Equator. That's a pretty flimsy lineup, but if you buy an SX-4, at least you'll get three months of free gas. Better hurry, though: The last company that tried a promotion like that was Chrysler.
Reviewers Hurl Criticism at 2010 Honda Insight
From Hybridcars.com
By Hybridcars.com
What’s the biggest obstacle to mainstream adoption of greener cars? Cost. The new generation of super fuel-efficient high-tech vehicles—including hybrids, clean diesels and electric cars—carry a higher price tag compared to their conventional counterparts. That’s why Honda designed its latest hybrid, the 2010 Honda Insight, with affordability as the main goal. With a base MSRP of $19,800, Honda achieved its objective. The Honda Insight’s marketing tag line is, “The Hybrid for Everyone.”
When the Insight was introduced in early 2009, the automotive press gushed with praise. Reviewers claimed that the Honda Insight is more compelling and fun to drive than the quintessential gas-electric car, the Toyota Prius, which is bigger, faster, and uses a more sophisticated third-generation of hybrid technology. Dan Neil, Los Angeles Times auto writer, described the Insight as “impeccably constructed, well planned and honeyed with high-tech surfaces and materials. Nothing feels cheap or compromised." Road and Track’s Dennis Simanaitis wrote, “The Insight will make a significant contribution to sustainable mobility.” Edmunds.com reviewers said, “Given its impressive talents and attractive price, it's hard to fault the 2010 Honda Insight.”
But in the past few weeks, a number of critics have found it quite easy to find faults with the Insight— harshly criticizing the car for the very traits that have allowed Honda to keep down the price.
1. The Honda Insight doesn’t feel solid.
David Champion, senior director of the Consumer Reports auto test center, said, “The Insight is a noisy, stiff-riding car with clumsy handling that is nothing like the Fit on which it is based.”
2. The Honda Insight is underpowered.
Scott Burgess of the Detroit News, wrote, “The Insight can feel underpowered at times, especially on the highway...There are paddle shifters mounted on the steering wheel, which can help a driver improve the car's pickup but can also make the engine scream like a toddler.”
3. The Honda Insight’s engine is buzzy.
UK reviewer, Jeremy Clarkson, wrote, “The Honda’s petrol engine is a much-shaved, built-for-economy, low-friction 1.3 that, at full chat, makes a noise worse than someone else’s crying baby on an airliner. It’s worse than the sound of your parachute failing to open.
4. The Honda Insight is too small.
Edward Loh of Motor Trend explained, “While the Prius qualifies as a midsize car, the 2009 Insight is a compact: shorter by 2.7 inches overall and 5.9 inches between the wheels. The Insight is also 1.2 inches narrower, with a roof height 2.5 inches lower, which is why Honda tells you its Prius-fighter is the more similarly sized Civic Hybrid.” Dan Edmunds of Edmunds.com, wrote, “Those approaching 6 feet in height will feel the roof and wish for more legroom [in the backseat]. The Insight's 100.4-inch wheelbase needs an additional inch or two. This, above all, reminds us that the Insight is indeed a compact car.”
Did early praise leave the Honda Insight open to hatchet jobs by contrary reviewers seeking dramatic headlines? Did the initial euphoria about an affordable hybrid wear off? Or did it just take time for the press to narrow in on the Insight’s shortcomings?
In the end, the look and feel of a car is subjective. Consumers shopping for a fuel-efficient hybrid will have to get behind the wheel and pass their own judgment on the feeling of solidity, the sound from the engine, and the ability of a compact car to provide enough space to meet their needs. Meanwhile, the hard numbers speak for themselves: $20,000, a long list of cutting-edge features, seating for five, and average city-highway mileage of 41 mpg.
By Hybridcars.com
What’s the biggest obstacle to mainstream adoption of greener cars? Cost. The new generation of super fuel-efficient high-tech vehicles—including hybrids, clean diesels and electric cars—carry a higher price tag compared to their conventional counterparts. That’s why Honda designed its latest hybrid, the 2010 Honda Insight, with affordability as the main goal. With a base MSRP of $19,800, Honda achieved its objective. The Honda Insight’s marketing tag line is, “The Hybrid for Everyone.”
When the Insight was introduced in early 2009, the automotive press gushed with praise. Reviewers claimed that the Honda Insight is more compelling and fun to drive than the quintessential gas-electric car, the Toyota Prius, which is bigger, faster, and uses a more sophisticated third-generation of hybrid technology. Dan Neil, Los Angeles Times auto writer, described the Insight as “impeccably constructed, well planned and honeyed with high-tech surfaces and materials. Nothing feels cheap or compromised." Road and Track’s Dennis Simanaitis wrote, “The Insight will make a significant contribution to sustainable mobility.” Edmunds.com reviewers said, “Given its impressive talents and attractive price, it's hard to fault the 2010 Honda Insight.”
But in the past few weeks, a number of critics have found it quite easy to find faults with the Insight— harshly criticizing the car for the very traits that have allowed Honda to keep down the price.
1. The Honda Insight doesn’t feel solid.
David Champion, senior director of the Consumer Reports auto test center, said, “The Insight is a noisy, stiff-riding car with clumsy handling that is nothing like the Fit on which it is based.”
2. The Honda Insight is underpowered.
Scott Burgess of the Detroit News, wrote, “The Insight can feel underpowered at times, especially on the highway...There are paddle shifters mounted on the steering wheel, which can help a driver improve the car's pickup but can also make the engine scream like a toddler.”
3. The Honda Insight’s engine is buzzy.
UK reviewer, Jeremy Clarkson, wrote, “The Honda’s petrol engine is a much-shaved, built-for-economy, low-friction 1.3 that, at full chat, makes a noise worse than someone else’s crying baby on an airliner. It’s worse than the sound of your parachute failing to open.
4. The Honda Insight is too small.
Edward Loh of Motor Trend explained, “While the Prius qualifies as a midsize car, the 2009 Insight is a compact: shorter by 2.7 inches overall and 5.9 inches between the wheels. The Insight is also 1.2 inches narrower, with a roof height 2.5 inches lower, which is why Honda tells you its Prius-fighter is the more similarly sized Civic Hybrid.” Dan Edmunds of Edmunds.com, wrote, “Those approaching 6 feet in height will feel the roof and wish for more legroom [in the backseat]. The Insight's 100.4-inch wheelbase needs an additional inch or two. This, above all, reminds us that the Insight is indeed a compact car.”
Did early praise leave the Honda Insight open to hatchet jobs by contrary reviewers seeking dramatic headlines? Did the initial euphoria about an affordable hybrid wear off? Or did it just take time for the press to narrow in on the Insight’s shortcomings?
In the end, the look and feel of a car is subjective. Consumers shopping for a fuel-efficient hybrid will have to get behind the wheel and pass their own judgment on the feeling of solidity, the sound from the engine, and the ability of a compact car to provide enough space to meet their needs. Meanwhile, the hard numbers speak for themselves: $20,000, a long list of cutting-edge features, seating for five, and average city-highway mileage of 41 mpg.
America's Best-Loved Cars
From CNNmoney.com
In J.D. Power's latest survey, new vehicle owners rate just how much they love their cars and trucks. The results include some pretty big surprises.
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By Peter Valdes-Dapena, CNNMoney.com senior writer
J.D. Power's latest car owner satisfaction survey includes some good news for Chrysler Group and Hyundai.
Chrysler hasn't done well in these sorts of surveys in recent years, but this time the new Dodge Challenger beat out its competitors as the most-favored mid-size sporty car. (Also worth noting: The Dodge brand, overall, earned above average scores in this survey after posting the largest one-year improvement of any car brand.) And Hyundai, not known as a luxury brand beat out higher-priced mid-sized luxury cars from BMW and Jaguar.
The market research company surveyed 80,000 new car buyers after 90 days of ownership asking them to rate as many 90 different features of their vehicles as well as their overall satisfaction. The J.D. Power APEAL survey -- it stands for Automotive Performance, Execution and Layout -- provides a measure of just how much new car buyers like their cars and why. Here’s a look at how the competition shook out.
Sub-compact Car: Smart ForTwo
2nd place: Scion xD
3rd place: Honda Fit
The ForTwo's main selling point is its tiny size and its tiny fuel costs. About as long as most mid-size cars are wide, the ForTwo is a breeze to park on congested city streets.
The tiny two-seater beat out roomier cars like the Scion xD and Honda Fit. While it may not be the most practical choice for a lot of people, the ForTwo delivers what its buyers are looking for, said David Sargent, vice president for automotive research at J.D. Power.
Compact Car: Mini Cooper
2nd place: Volkswagen Jetta
3rd place: Mitsubishi Lancer
J.D. Power's APEAL tends to favor cars with a strong emotional attraction. Cars like the Mini Cooper certainly apply.
The Mini's quirky retro design carries over into an interior that features a speedometer the size of a pie mounted between the seats. Engineers at parent company BMW also gave the Mini ultra-responsive handling to match the eye-catching design.
"Owners really do find it fun to drive," said J.D. Power's David Sargent.
Compact Sporty Car: Volkswagen GTI
The GTI was the only car to score above average in this category. It's basically a sport-tuned, performance version of the Volkswagen Golf economy car. VW pits it against Japanese compacts like the Honda Civic Si.
Besides driving enjoyment, the GTI scored very well for interior quality. That's always a strong point for VW.
Compact Luxury Sport: Mercedes-Benz SLK-class
2nd place: Nissan Z
The sleek little SLK, with its folding hard top, borrows its arrow-nosed look from Mercedes' far more expensive SL cars. Besides the design, the SLK offers its buyers a fun drive and nice little comforts like an optional "air scarf" that blows warm air around occupants' heads to make top-down driving on cold days more tolerable.
Among owners, the SLK scored particularly well for its high-quality feel.
Entry Luxury: Volkswagen CC
2nd place: Cadillac CTS
3rd place: Audi A4/5
With the CC, Volkswagen takes the Passat up a couple of notches. Besides its dramatic swooping body lines, the interior also gets high-contrast two-tone treatment.
An optional 280-horsepower engine and 6-speed transmission add a dose of power to the car's responsive driving character.
Despite its low-slung roof design, owners really love the roomy interior of the CC. It also scored well for storage space and fuel economy.
Mid-size Sport: Dodge Challenger
2009 Dodge Challenger
2009 Dodge Challenger
A big win for the Chrysler Group, the Challenger beat the long-time favorite Ford Mustang as well as the Mitsubishi Eclipse in this category. In fact, it was the only car in its category to score above average.
The Challenger scored well for its interior as well for its performance. The fact that the Challenger is an all-new model also helps, said J.D. Power's David Sargent. New models, particularly ones that attract a lot of attention, tend to do well in this survey.
At the time this survey was done, the Chevrolet Camaro had not yet been released, so we'll have to wait until next year to see if the Challenger can hold on to its title.
Mid-size Luxury: Hyundai Genesis
2nd place: Jaguar XF
3rd place: BMW 5-series
You can almost hear the champagne corks popping at Hyundai headquarters. The economy-minded brand's move into the luxury segment beat entries from Jaguar and BMW in this survey.
The Genesis scored very well for its features, roominess and comfort, but the car's low price, relative to its rivals, was probably a factor.
"People feel that they're getting a pretty good deal here," said David Sargent of J.D. Power.
Large Luxury: Mercedes-Benz S-class
2nd place: Lexus LS
Mercedes-Benz has this category locked up. The S-class has won here each of the past three years.
"This is one vehicle that really hit the mark," said J.D. Power's David Sargent.
The S-class offers a long list of optional features, including massaging seats in the front and back, infra-red night-vision cameras and cruise control that automatically maintains a following distance at any speed. Of course, there's also the car's refined and powerful performance.
Mid-size Car: Volkswagen Passat
2nd place: Mazda6
3rd place: Honda Accord
It's hard to find a Volkswagen car that didn't top its category in this survey. Two versions of this car, the other being the CC, outscored competitors.
As always for VW, interior quality and fuel economy were high points.
Large Car: Nissan Maxima
2nd place: Pontiac G8
3rd place: Toyota Avalon
The redesigned Maxima scored big points for its interior. Owners also love the audio systems, seating and visibility.
Click here to see all of America's best-loved cars at CNNMoney.com
In J.D. Power's latest survey, new vehicle owners rate just how much they love their cars and trucks. The results include some pretty big surprises.
By Peter Valdes-Dapena, CNNMoney.com senior writer
J.D. Power's latest car owner satisfaction survey includes some good news for Chrysler Group and Hyundai.
Chrysler hasn't done well in these sorts of surveys in recent years, but this time the new Dodge Challenger beat out its competitors as the most-favored mid-size sporty car. (Also worth noting: The Dodge brand, overall, earned above average scores in this survey after posting the largest one-year improvement of any car brand.) And Hyundai, not known as a luxury brand beat out higher-priced mid-sized luxury cars from BMW and Jaguar.
The market research company surveyed 80,000 new car buyers after 90 days of ownership asking them to rate as many 90 different features of their vehicles as well as their overall satisfaction. The J.D. Power APEAL survey -- it stands for Automotive Performance, Execution and Layout -- provides a measure of just how much new car buyers like their cars and why. Here’s a look at how the competition shook out.
Sub-compact Car: Smart ForTwo
2nd place: Scion xD
3rd place: Honda Fit
The ForTwo's main selling point is its tiny size and its tiny fuel costs. About as long as most mid-size cars are wide, the ForTwo is a breeze to park on congested city streets.
The tiny two-seater beat out roomier cars like the Scion xD and Honda Fit. While it may not be the most practical choice for a lot of people, the ForTwo delivers what its buyers are looking for, said David Sargent, vice president for automotive research at J.D. Power.
Compact Car: Mini Cooper
2nd place: Volkswagen Jetta
3rd place: Mitsubishi Lancer
J.D. Power's APEAL tends to favor cars with a strong emotional attraction. Cars like the Mini Cooper certainly apply.
The Mini's quirky retro design carries over into an interior that features a speedometer the size of a pie mounted between the seats. Engineers at parent company BMW also gave the Mini ultra-responsive handling to match the eye-catching design.
"Owners really do find it fun to drive," said J.D. Power's David Sargent.
Compact Sporty Car: Volkswagen GTI
The GTI was the only car to score above average in this category. It's basically a sport-tuned, performance version of the Volkswagen Golf economy car. VW pits it against Japanese compacts like the Honda Civic Si.
Besides driving enjoyment, the GTI scored very well for interior quality. That's always a strong point for VW.
Compact Luxury Sport: Mercedes-Benz SLK-class
2nd place: Nissan Z
The sleek little SLK, with its folding hard top, borrows its arrow-nosed look from Mercedes' far more expensive SL cars. Besides the design, the SLK offers its buyers a fun drive and nice little comforts like an optional "air scarf" that blows warm air around occupants' heads to make top-down driving on cold days more tolerable.
Among owners, the SLK scored particularly well for its high-quality feel.
Entry Luxury: Volkswagen CC
2nd place: Cadillac CTS
3rd place: Audi A4/5
With the CC, Volkswagen takes the Passat up a couple of notches. Besides its dramatic swooping body lines, the interior also gets high-contrast two-tone treatment.
An optional 280-horsepower engine and 6-speed transmission add a dose of power to the car's responsive driving character.
Despite its low-slung roof design, owners really love the roomy interior of the CC. It also scored well for storage space and fuel economy.
Mid-size Sport: Dodge Challenger
2009 Dodge Challenger
2009 Dodge Challenger
A big win for the Chrysler Group, the Challenger beat the long-time favorite Ford Mustang as well as the Mitsubishi Eclipse in this category. In fact, it was the only car in its category to score above average.
The Challenger scored well for its interior as well for its performance. The fact that the Challenger is an all-new model also helps, said J.D. Power's David Sargent. New models, particularly ones that attract a lot of attention, tend to do well in this survey.
At the time this survey was done, the Chevrolet Camaro had not yet been released, so we'll have to wait until next year to see if the Challenger can hold on to its title.
Mid-size Luxury: Hyundai Genesis
2nd place: Jaguar XF
3rd place: BMW 5-series
You can almost hear the champagne corks popping at Hyundai headquarters. The economy-minded brand's move into the luxury segment beat entries from Jaguar and BMW in this survey.
The Genesis scored very well for its features, roominess and comfort, but the car's low price, relative to its rivals, was probably a factor.
"People feel that they're getting a pretty good deal here," said David Sargent of J.D. Power.
Large Luxury: Mercedes-Benz S-class
2nd place: Lexus LS
Mercedes-Benz has this category locked up. The S-class has won here each of the past three years.
"This is one vehicle that really hit the mark," said J.D. Power's David Sargent.
The S-class offers a long list of optional features, including massaging seats in the front and back, infra-red night-vision cameras and cruise control that automatically maintains a following distance at any speed. Of course, there's also the car's refined and powerful performance.
Mid-size Car: Volkswagen Passat
2nd place: Mazda6
3rd place: Honda Accord
It's hard to find a Volkswagen car that didn't top its category in this survey. Two versions of this car, the other being the CC, outscored competitors.
As always for VW, interior quality and fuel economy were high points.
Large Car: Nissan Maxima
2nd place: Pontiac G8
3rd place: Toyota Avalon
The redesigned Maxima scored big points for its interior. Owners also love the audio systems, seating and visibility.
Click here to see all of America's best-loved cars at CNNMoney.com
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