The numbers don't look good. November car sales were down 30 percent from last year. While shoppers are used to doom and gloom sales numbers coming out of Detroit, the declines are now industry-wide, with Honda posting a 32 percent decline, Toyota sales dropping 34 percent, and even venerable Porsche reporting a nearly 50 percent drop in sales.
While these numbers obviously spell trouble for automakers, what they mean for car shoppers isn't immediately clear. The credit crisis has continued for months and with belt-tightening becoming the new American pastime, car shoppers are finding themselves adrift in a sea of bad industry news, rising new car incentives, and little advice for consumers.
That's where this year's U.S. News Best Car for the Money awards come in. Car shoppers face an uncertain economy and a shrinking ability to borrow. The key to surviving the current marketplace is to stretch your dollars as far as they'll go -- but that doesn't mean flocking to the biggest incentives. It means focusing on cars that are proven winners and offer a great value over the entire life of the car.
The Awards
The Best Car for the Money awards use data from U.S. News' online automotive rankings (at www.rankingsandreviews.com) to find cars that are among the best in their class. The rankings are based on the collective opinion of the automotive press, which helps to eliminate subjectivity and elevate expert opinion about each car. The awards also take initial price into account, but more importantly, they incorporate the five-year total cost of owning the car. Using data from IntelliChoice, an industry leader in determining new car values and ownership costs, the awards include how much buyers can expect to spend on maintenance and fuel, as well as how much of a hit they'll take from the car's depreciation. As a result, the awards tell you which cars are the best for your money over the long haul. Read more on the awards methodology.
The Winners
Across 14 new car classes, the clear winner is Toyota. Five Toyotas won Best Car for the Money in their classes, with Lexus, Toyota's luxury marquee, pulling in another three. Chevrolet and Mazda each claim two awards and Honda and Korean upstart Hyundai each claim one. Five of the award winners are even available as hybrids - most of which are also great values.
Despite ranging in size from the tiny Honda Fit to the hulking Chevrolet Tahoe, the winners have a lot in common. They share a high level of build quality that makes for worry-free and low-cost ownership. One of the reasons Toyota models take so many of the awards is because of their bulletproof quality. That not only lowers the cost of maintaining Toyotas -- it means that they retain value better than most other cars.
The winners have something else in common: they are favorites in the automotive press. Not because they tear up drag strips or star in music videos, but because they are extremely livable. Each winner occupies an automotive sweet spot that makes it an attractive choice for the vast majority of car shoppers. Take the Lexus ES, the Best Upscale Car for the Money: it doesn't drive as sharp as the BMW 3-Series and doesn't look as sharp as the Mercedes Benz C-Class, but taken as a total package, it's very comfortable to drive and easy to live with on a daily basis -- not to mention easier on your wallet.
Some winners, like the Mazda5, the Best Compact Crossover for the Money, take the best of what class leaders like the Toyota RAV4 and Honda CR-V have to offer, but pack in an appealing lower price. The case of the Hyundai Elantra, the Best Compact Car for the Money, proves what many have been saying for years: Honda and Toyota should watch their backs because Hyundai is making not just economical cars, but very good ones.
Time to Buy
It's a confusing time to be shopping for a new car. While there are some incredible deals to be had, many of those incentives are for cars that don't offer a lot of value in the long term. Worse, a car with thousands of dollars in cash-back offers may be tough to drive, and laden with features you don't need.
The U.S. News Best Car for the Money awards cut through fog surrounding the auto industry to point out the cars that combine value with day-to-day livability. As scary as it is to part with thousands of dollars in this economy, by sticking with the cars that offer maximum satisfaction at a minimal cost, your money will go further and your driving will be happier. And, who knows? Happy new car buyers may be just the stimulus this economy needs.
Some cars have held up great in their first year on the road. Others, not so much--and one automaker in particular produces many of them.
By Jacqueline Mitchell
2009 Toyota Prius
The recent news that Chrysler may merge with General Motors didn't come as a surprise to many, as Chrysler has been struggling for years. It can't negotiate a deal with GM fast enough to save it from going under, in large part because its poor-performing vehicles are a drag on overall sales.
It therefore shouldn't come as any surprise that when the performance of cars is examined according to their predicted reliability, recalls and rate of depreciation, Chrysler vehicles dominate the list of the poorest performers, with seven of the 10 models on our list. All the vehicles have multiple recalls, ranging from airbags to door latches, along with mediocre resale values and bottom-level reliability scores for market-research groups.
Owners of the current-model-year Dodge Avenger, for example, have had to deal with six recalls. The depreciation and true market value of Avenger only ranks at two stars (out of a possible five) in the Automotive Leasing Guide, which provides depreciation estimates for use in the automotive financing industry.
And experts see no signs of Chrysler making quality improvements across the board, because the company currently lacks the financial resources to do so. It also remains unclear if the company has the means to hang on until auto sales revive.
"I'm not sure Chrysler can weather the storm as an individual company," says Dan Edmunds, director of vehicle testing at Edmunds.com.
It's an entirely different story, however, for the two Japanese auto giants, Toyota and Honda. The best-performing cars, according to our rankings, are all made by these two carmakers, with Toyota claiming six spots and Honda four in the top 10.
In the sixth spot is the immensely popular Honda Accord. It earned the highest Insurance Institute Highway Safety crash test ratings, its predicted reliability is high and there are no recalls so far this year.
"Honda's manufacturing quality is strong, and the consumer's perception of quality is also strong," says Jonathan Banks, senior director of consulting services for Automotive Leasing Guide.
Behind the Numbers
To compile our list of 2008 best- and worst-performing cars, we looked at five factors, all pertaining to 2008 model-year vehicles: the number of recalls to date, according to the National Highway Traffic Safety Administration (NHTSA) database; reliability ratings from Consumer Reports; depreciation, in the form of Automotive Leasing Guide's (ALG) star ratings; safety from the Insurance Institute for Highway Safety (IIHS) crash test ratings; and fuel economy and annual fuel costs from the U.S. Environmental Protection Agency.
Fuel costs were based on AAA's national regular gas price of $2.42 and unleaded at $2.60.
Aside from a standout number of recalls, we looked specifically for below-average reliability, high depreciation and IIHS results of "marginal" or "poor" for worst performers. Of the vehicles that met at least two of these qualifications, we also looked at other factors, such as fuel efficiency and fuel cost per year of ownership, assuming 15,000 miles driven per year.
Leading the Pack
Just as Chrysler dominates the bottom of the list, Toyota reigns at the top, with six vehicles that have among the highest resale values and best reliability scores. And all of the top 10 are among the most fuel-efficient cars and SUVs on the road.
The fuel-efficient Toyota Prius hybrid tops the list with an "excellent" reliability rating, no recalls and a five-star-rated resale value. It has the highest fuel economy (46 mpg) and the lowest annual fuel cost of any car on the list ($789).
Another top performer is Toyota's Scion xD, a hatchback introduced in the 2008 model year as a replacement to the xA hatchback. The xD has an "excellent" reliability rating, no recalls and good fuel economy (28 mpg).
While the Scion is a solid performer, however, it isn't perfect. It earned an "acceptable" (second-highest) frontal crash-test rating but did score a "good" rating (highest) in side- and rear-impact crash tests. Also, its resale value is an average three stars.
While there are no similar cars from U.S. automakers on the top half of the list, there are bright spots for 2009 and beyond, as GM and Ford Motor both plan to bring more fuel-efficient, nicely equipped small cars like the Chevrolet Cruze and Ford Festiva to the U.S. from other countries.
"There are things in the pipeline," says Edmunds, at least for those two companies. "I just don't know if Chrysler will be around to do it."
Trailing the Pack
Chrysler has carved out for itself a big space on our list of poor-performing cars, but the automaker has plenty of company.
When gas prices topped $4 a gallon this summer, consumers dropped gas-guzzling SUVs like the Nissan Xterra (17 mpg), as sales plummeted 29.1% from January to October, compared with same period in 2007. The Xterra falls to sixth place among the worst-performing vehicles, as there have been three recalls on the car so far this year, not to mention its below-average performance in crash ratings in side (marginal) and rear (poor) tests, as well as its mediocre three-star resale value.
The Xterra's sales drop can't be chalked up to a general anti-SUV sentiment either, as the smaller Toyota Rav-4 rated fourth among best-performing cars and the Honda CR-V came in fifth. Unlike the Xterra, both cars deliver on fuel economy and resale value.
With the 2009 model year now in full swing (it kicked off Oct. 1), the 2008 model-year cars still sitting on dealer lots are loaded with incentives to make them more appealing to consumers. Chances are, says Banks, many poor-performing vehicles are among the ones with the highest incentives. But while you may save with a lower transaction price now, on a year-end deal, you're likely to be paying for it later.
"If it has a one- or two-star resale value, then it's not a great quality car," says Banks. "If it has a lot of recalls, then you may spend a lot of time in the repair shop. And when the vehicle warranty ends, you may face high repair costs."
More Info About The Cars Mentioned in This Article
Fuel-efficient vehicles are a very reliable segment of the automotive market overall. And European cars, which have trailed the domestic models for about five years, are showing signs of improvement.
Those are the top findings of our 2008 Car Reliability Survey, based on our subscribers' experiences with 1.4 million vehicles. Respondents reported on any serious problems they had with their vehicles in 17 trouble spots during the previous 12 months, which allows us to provide predicted-reliability Ratings for new cars. We include only models for which we have 100 or more responses.
Consumer Reports has no relationship with any advertisers on Yahoo!.
According to the survey, nine hybrid models for which we have sufficient data earned above-average predicted-reliability Ratings. Most of those hybrids are from Japanese automakers. We also found that conventional gas-sippers such as the Honda Fit, Scion xD, Smart ForTwo, and Toyota Yaris had few problems.
Some European automakers, particularly Mercedes-Benz, had sunk to the bottom of our predicted-reliability Ratings in recent years. But the new results show signs of a comeback.
Six Mercedes-Benz models, including the redesigned C-Class sedan, the sporty SL, and the ML350 SUV, have improved to average reliability. As a result, they are now recommended.
Ford leads the domestics
Ford's three brands-Ford, Lincoln, and Mercury-continue to pull away from the rest of the Detroit automakers. Almost all Ford models are now average or better, with the exception of some that are truck-based. Excluding those, Ford's reliability is now on par with good Japanese automakers.
General Motors is a mixed bag. Among the bright spots is the redesigned Chevrolet Malibu; in its first year, the four-cylinder version is better than average and the V6 is average. The Buick Lucerne with a V8 and the Pontiac G6 with a four-cylinder are above average, and the Chevrolet Avalanche has improved to average.
Last year we called out three Toyota models that had slipped to below average: the Camry V6, Tundra V8 4WD, and the Lexus GS AWD. Toyota seems to have rectified some of the problems-all 42 of the Toyota, Lexus, and Scion models in our survey scored average or better. While the three models noted above scored merely average, most models got above-average Ratings. Almost all models from Honda and its Acura luxury division received above-average scores. In addition, Subarus for which we have sufficient data scored average or better in reliability.
Nissan showed striking improvements, with the perennially troublesome Armada SUV, Titan pickup, and Infiniti QX56 SUV finally gaining average reliability. The new Nissan Rogue and Infiniti EX SUVs have started out above average, which is a good sign, and the Altima Hybrid sedan is well above average.
The two closely related South Korean nameplates, Hyundai and Kia, rank right up there with the better Japanese makers. Most of their models scored average or better, with only the Hyundai Entourage and Kia Sedona minivans receiving below-average scores.
Europe rebounds
While Mercedes-Benz has improved in reliability, none of its models scored above average and a third are still below average. Audi continues to improve, with two-thirds of its lineup scoring average or better. Its sister brand, Volkswagen, has several models rating average or better in our survey, but the Passat sedan, Touareg SUV, and Eos convertible have not done well. BMW has also shown progress in recent years, with most versions of the 3 Series and some 5 Series models being average or better. The 6 Series improved to above average.
Volvo has continued the upward march as well. Of the nine Volvos for which we have sufficient data, only the redesigned XC70 wagon rated below average in reliability. Land Rover continued to fare poorly, with all four of its SUVs, including the new LR2, scoring well below average.
A consumer-driven Rating
Our reliability data are based on a subscriber survey and are not derived from Consumer Reports' vehicle testing. From the survey, we derive a reliability history for 10 model years as well as our forecast of how 2009 models will probably hold up. This predicted-reliability Rating is based on a model's overall reliability for the newest three model years, provided the 2009 version hasn't significantly changed. If a model was new or redesigned in that time frame, we might use just one or two years of data. In rare instances, we make a prediction for a redesigned model if the manufacturer's and model's histories are outstanding.
(yahoo.com)
How to spot a lemon
By Consumer Reports
Finding a trouble-free used car has nothing to do with luck and everything to do with applying good research and investigative skills. Knowing how to spot potential problems and determining how reliable a used vehicle is can save you from expensive automotive headaches down the road. The following advice can help you determine whether a used vehicle is a good value or potential trouble.
Consumer Reports has no relationship with any advertisers on Yahoo!.
1. Check the reliability record.
A good way to reduce the risk of purchasing a trouble-prone vehicle is to select models with a good reliability record before you begin shopping. Consumer Reports' annual subscriber survey provides exclusive real-world reliability information that can help you narrow your selections. See Best and worst used cars for a quick-reference list of the best and worst used cars from our most recent survey. Also read the reliability-history charts that accompany most of CR's vehicle profiles to get a more detailed view at how specific models have held up in 16 trouble areas as well as overall.
2. Read the window sticker.
The Federal Trade Commission requires dealers to post a Buyer's Guide in every used vehicle offered for sale. Usually attached to a window, it must contain certain information, including whether the vehicle is being sold "as is" or with a warranty, and what percentage of repair costs (if any) the dealer is obligated to pay. The Guide information overrides any contrary provisions in your sales contract. In other words, if the Guide says that the vehicle is covered by a warranty, the dealer must honor that warranty. If any changes in coverage are negotiated, the Guide must be altered to reflect them before the sale.
If a sale is designated "as is," it means that the dealer makes no guarantees as to the condition of the vehicle, so any problems that arise after you have made the purchase will be your responsibility. Many states do not allow as-is sales on vehicles selling for more than a certain price.
3. Check the exterior.
Begin by doing a walk around of the car, looking for dents, chipped paint, mismatched body panels or parts, broken lamp housings, and chipped windows. Gaps between body panels should be of a consistent width and line up.
A closer inspection can reveal paint overspray on chrome or rubber trim or in the vehicle's wheel wells. This is a telltale sign of body-panel repair.
Test for the presence of body filler with a small magnet. If the magnet doesn't stick to the panel, the car may have filler under the paint (some vehicles with plastic or fiberglass panels, however, won't attract a magnet at all). A door, hood, or trunk that doesn't close and seal properly is evidence of previous damage and/or sloppy repair work. A CAPA (Certified Automotive Parts Association) sticker on a body panel means the part has been replaced. Inconsistent welds around the hood, doors, or trunk also indicate repair.
4. Check the interior.
A long look into the cabin can reveal many obvious problems, such as a sagging headliner, cracked dashboard, and missing knobs, handles, and buttons. Frayed seat belts or ones with melted fibers (because of friction) may be evidence of a previous frontal impact above 15 mph--damaged safety belts should always be replaced.
Prematurely worn pedals or a sagging driver's seat are signs that the vehicle has very high mileage. An air bag warning light that stays lit may indicate that a bag has deployed and been improperly replaced--or not replaced at all. A mildew smell, caused by a water leak, can be very hard to get rid of. Discolored carpeting, silt in the trunk, or intermittent electrical problems may be signs of flood damage.
5. Check under the hood.
At first glance, the engine, radiator, and battery should be relatively grease-free and have very little or no corrosion. Belts and hoses should be pliable and unworn. Look for wet spots, which can indicate leaking oil or fluids. Melted wires, tubes, or lines, or a blackened firewall may be signs of overheating or even an engine fire.
With the engine cool, insure that all fluids are clean, filled to the proper level, and do not have leaks. Check the engine oil while the engine is cool. Remove the dipstick from its tube and clean it with a dry rag, reinsert it and remove it again. The oil level should be between the "full" and "add" marks. Normal engine oil is brown or black, depending on when it was last changed. Gritty or gelatinous oil may indicate long stretches between oil changes. Thin, frothy oil that's the color of chocolate milk may point to a blown head gasket or to a severely damaged block or cylinder head. Fine metal particles in the oil indicate internal damage or heavy wear.
The transmission fluid dipstick is usually located in the rear of the engine compartment. Check it right after the car has been driven for more than 10 minutes. With the engine at idle and both the brake and parking brake applied, shift through all the gears. Leave the engine running and put it in neutral or park (according to the owner's manual) and check the level in relation to the dipstick marks. Also inspect the fluid's condition. The transmission fluid should be bright red to light reddish brown, not dark brown, black, or mustard colored; those colors can indicate serious problems. If it has a strong burned smell, that can indicate severe wear.
6. Check the tires.
Wear should be even across the width of the tread and the same on the left and right sides of the car. Tires that are frequently used while over-inflated tend to have more wear in the middle; tires driven while under-inflated tend to wear more on the sides. Heavy wear on the outside shoulder near the sidewall of the tire indicates a car that has been driven hard. This can be a sign that other parts of the car may suffer from excessive wear due to aggressive driving. Cupped tires, those that have worn unevenly along the tread's circumference, can indicate various problems with the steering, suspension, or brakes.
7. Check the steering.
With the car idling, turn the steering wheel right and left. Check that there isn't any slack or "play," or clunking noise in the steering. Excess play may indicate a worn steering gear or damaged linkage.
While driving at normal speeds on smooth, flat pavement, the car shouldn't wander or need constant steering corrections. A shaking steering wheel often indicates a need for a wheel balancing or front-end alignment, which are easily remedied. However, this may also be a clue that there's a problem with the driveline, suspension, or frame, which could mean expensive repairs are in order.
8. Check the suspension.
Check the suspension by pushing down hard on each fender and letting go. The car should rebound softly, once or twice. More than two severe rebounds indicate worn shock absorbers or struts. Also, drive the car over a bumpy road at about 30 mph. A car that bounces and slams at moderate speeds over common pavement may have a worn or damaged suspension.
9. Check the tailpipe.
A puff of white smoke upon start-up is probably the result of condensation and not a cause for alarm. Black smoke after the car has warmed up indicates an overly rich air-fuel mixture--usually due to a dirty air filter, a faulty oxygen sensor, or mass-air meter (which measures the amount of intake air). Blue smoke indicates oil burning--a bad sign, requiring expensive repairs. Billowing white smoke indicates water in the combustion chamber, usually because of a blown head gasket, damaged cylinder head, or even a cracked block--all expensive repairs.
10. Step on the gas.
While driving, does the engine rev excessively before the car accelerates? This is a common sign of a misadjusted or worn-out clutch, or a damaged automatic transmission. A clutch adjustment is a relatively inexpensive service, but a damaged clutch or automatic-transmission repair can be extremely expensive.
Listen for knocks and pings while accelerating. These indicate bad ignition timing or an engine beginning to overheat.
11. Check for recalls and TSBs.
Check to see if any recalls were issued and if recall service was performed. The National Highway Traffic Safety Administration (www.nhtsa.dot.gov; 800-424-9393) lists all official recalls. Ask the seller for documentation on recall service. If any recall work has not been performed on a car that you're considering, it should be done as soon as possible. Automakers are required to perform recall service free of charge, regardless of the vehicle's age or how long ago the recall was issued.
Technical Service Bulletins, or "TSBs," are reports a manufacturer sends its dealers about common or recurring problems with a specific model, and how to rectify them. Because TSBs aren't typically safety related, manufacturers are not obligated to notify owners or pay for the repairs, though an automaker may pay for some or all of the work--if an owner asks them to. Lists of TSBs can be found at www.nhtsa.dot.gov/cars/problems/tsb/index.cfm. Check for any TSBs that were issued for the model you're buying and if the seller had any necessary repairs performed.
12. Check the vehicle's history.
A vehicle-history report from CarFax (www.carfax.com) or Experian Automotive (www.autocheck.com) can alert you to possible odometer fraud; reveal past fire, flood, and accident damage; or tell you if a rebuilt or salvage title has ever been issued for the vehicle. To access this information, provide the vehicle identification number, or "VIN," which is on the top of the dashboard, near the driver's side roof pillar. Reports should cost $15 and the process takes about five minutes. (CarFax's Web site provides Consumer Reports' advice and information on buying used cars.)
13. Visit a mechanic.
Before you buy a used vehicle, have it inspected by a qualified mechanic that routinely does automotive diagnostic work. A thorough diagnosis should cost around $120. An organization called the Car Care Council (www.carcarecouncil.org) certifies diagnostic shops. If you're an American Automobile Association (AAA) member, you could use one of the organization's recommended facilities.
In addition to doing the basic diagnostic, ask the mechanic to put the vehicle on a lift and inspect the undercarriage. Kinked structural components and large dents in the floor pan or fuel tank can indicate a past accident. Welding on the frame suggests a damaged section might have been replaced or cut out during repairs. Have the mechanic look for fresh undercoating, which can be used to hide recent structural repairs.
A dealer should have no problem lending you the car to have it inspected as long as you leave identification. A private seller may be more reluctant, however. You should offer to follow the seller to the shop where the inspection will take place.
Some cars just don't age well. Even a great value buy in the new-car market can bomb in the used-car market with low resale values.
Vehicles like the Kia Sedona minivan and Lincoln Town Car look good, perform well and often are purchased new at bargain prices. But take a closer look at them three years later, and their value has decreased at an accelerated rate. By the time a car owner is ready to unload one of these vehicles, the owner is often surprised to learn that the car has lost more than 50% of its value. (MORE ON THE RESALE VALUES OF CARS!)
Mazda 3i Sport (sedan)
A good, new car needn't cost an arm and a leg. Consumer Reports has a list of recommended vehicles that cost less than $25,000 when typically equipped. To be recommended, cars must have performed well in Consumer Reports' battery of more than 50 tests; have average or better reliability based on its extensive owner surveys; and if crash-tested, provide good overall safety. (Continued)
Manufacturer suggested retail price (MSRP) listed includes destination charges and typical features such as air conditioning; antilock brakes; power windows, locks, and mirrors; cruise control; and automatic transmission (unless otherwise noted). Rebates or other incentives could make some of these recommended cars even better deals. (from yahoo.com)
For the complete list and ratings from Consumer Reports click HERE!
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