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Ask Peter Welch, the CEO of the National Automobile Dealers Association (NADA) what worries him the most, he'll admit that it is average consumers getting priced out of new cars. He admitted this yesterday at the Automotive News World Congress in Detroit. Welch said that the latest figures he has seen - through October of last year - reveal the average retail price of a new car climbing to a new high of $35,366. The average monthly payment is hovering at $538, and interest rates have climbed to an average of 5.76 percent (new) and 9 percent (used). Longer loan terms are becoming common, with the average length standing at 64.3 months. "You know, people buying $55,000 pickup trucks with $1,000-a-month payments — I've never seen it. A lot of people don't think that's sustainable," said Welch. "That is going to put a giant dent in the SAARs and it almost makes me wonder if at some point we're going to see another Henry Ford," offering new and more affordable vehicles. Aside from more people buying more expensive trucks and utility vehicles, Welch said other reasons for the increases in prices come down to new fuel economy standards and safety equipment. He sees new car prices rising towards $40,000 with $800 monthly payments. On a slightly positive note, NADA predicts that 16.8 million light vehicles will be sold in 2019. While down from 17.3 million in 2018, Welch notes there are some positive economic indicators "such as high employment rates, a solid GDP and a healthy economy overall." Source: Automotive News (Subscription Required) View full article- 71 replies
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NADA's CEO is Concerned About Consumers Being Priced Out
William Maley posted an article in Automotive Industry
Ask Peter Welch, the CEO of the National Automobile Dealers Association (NADA) what worries him the most, he'll admit that it is average consumers getting priced out of new cars. He admitted this yesterday at the Automotive News World Congress in Detroit. Welch said that the latest figures he has seen - through October of last year - reveal the average retail price of a new car climbing to a new high of $35,366. The average monthly payment is hovering at $538, and interest rates have climbed to an average of 5.76 percent (new) and 9 percent (used). Longer loan terms are becoming common, with the average length standing at 64.3 months. "You know, people buying $55,000 pickup trucks with $1,000-a-month payments — I've never seen it. A lot of people don't think that's sustainable," said Welch. "That is going to put a giant dent in the SAARs and it almost makes me wonder if at some point we're going to see another Henry Ford," offering new and more affordable vehicles. Aside from more people buying more expensive trucks and utility vehicles, Welch said other reasons for the increases in prices come down to new fuel economy standards and safety equipment. He sees new car prices rising towards $40,000 with $800 monthly payments. On a slightly positive note, NADA predicts that 16.8 million light vehicles will be sold in 2019. While down from 17.3 million in 2018, Welch notes there are some positive economic indicators "such as high employment rates, a solid GDP and a healthy economy overall." Source: Automotive News (Subscription Required) -
Towards the end of Obama presidency, the administration unveiled guidelines for testing and deployment of self-driving cars in the US. But there is a new presidency in the White House and that means things will be changing - although details are scarce as to how. U.S. Transportation Secretary Elaine Chao said in Detroit yesterday the Department of Transportation would revisit and revise the guidelines put forth by the previous administration within the next few months. "The pressure is mounting for the federal government to do something" about autonomous vehicles, said Chao. "We don't want rules that impede future technological advances." Chao didn't go into details about the changes that would be made or how it would differ from those made under the Obama presidency. The current guidelines introduced last fall includes a 15-point assessment that automakers would use to determine whether an autonomous vehicle was ready to go on the road or not. The assessment includes such items as privacy and validation methods. Automakers have voiced concerns on the guidelines, saying it would delay the testing by months and requires them to hand over data. Source: Reuters View full article
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Trump Administration To Revisit Self-Driving Guidelines
William Maley posted an article in Automotive Industry
Towards the end of Obama presidency, the administration unveiled guidelines for testing and deployment of self-driving cars in the US. But there is a new presidency in the White House and that means things will be changing - although details are scarce as to how. U.S. Transportation Secretary Elaine Chao said in Detroit yesterday the Department of Transportation would revisit and revise the guidelines put forth by the previous administration within the next few months. "The pressure is mounting for the federal government to do something" about autonomous vehicles, said Chao. "We don't want rules that impede future technological advances." Chao didn't go into details about the changes that would be made or how it would differ from those made under the Obama presidency. The current guidelines introduced last fall includes a 15-point assessment that automakers would use to determine whether an autonomous vehicle was ready to go on the road or not. The assessment includes such items as privacy and validation methods. Automakers have voiced concerns on the guidelines, saying it would delay the testing by months and requires them to hand over data. Source: Reuters -
While Americans are keeping their cars longer (Experian Automotive says the average ownership length is now 7.75 years), there are some models that owners can't wait to get rid off within a year of buying. iSeeCars.com recently compared new car sales against used-car purchases in 2014 to figure out which vehicles were traded-in the fastest. Their analysis showed that on average, around 2.7 percent of all new vehicles are traded in after only a year’s ownership. More surprising was the vehicles that had the highest amount of trade-ins. The expectation would be that the vehicles with the highest amount of trade-ins would be cheap. Not so fast. iSeeCars.com in their analysis the vehicles with highest trade-ins range from $18,000 to $45,000. “iSeeCars.com analysts think the fact that consumers are giving more of these cars up than the average is directly linked to quality or perceived quality of the cars,” says Phong Ly, CEO of iSeeCars.com. “Because purchasing a new car is expensive and something most people tend to spend a lot of time on, it stands to reason they would make a change shortly afterward if they felt the quality was lacking.” Here's the list of the vehicles with the highest trade-in amounts, Buick Regal - 10.7 Percent Traded-In Chevrolet Sonic - 8.9 Percent Traded-In BMW X1 - 7.8 Percent Traded-In Dodge Charger - 7.7 Percent Traded-In Mercedes-Benz C-Class - 7.4 Percent Traded-In Chevrolet Cruze - 7.2 Percent Traded-In Nissan Frontier - 6.9 Percent Traded-In Source: Forbes -
While Americans are keeping their cars longer (Experian Automotive says the average ownership length is now 7.75 years), there are some models that owners can't wait to get rid off within a year of buying. iSeeCars.com recently compared new car sales against used-car purchases in 2014 to figure out which vehicles were traded-in the fastest. Their analysis showed that on average, around 2.7 percent of all new vehicles are traded in after only a year’s ownership. More surprising was the vehicles that had the highest amount of trade-ins. The expectation would be that the vehicles with the highest amount of trade-ins would be cheap. Not so fast. iSeeCars.com in their analysis the vehicles with highest trade-ins range from $18,000 to $45,000. “iSeeCars.com analysts think the fact that consumers are giving more of these cars up than the average is directly linked to quality or perceived quality of the cars,” says Phong Ly, CEO of iSeeCars.com. “Because purchasing a new car is expensive and something most people tend to spend a lot of time on, it stands to reason they would make a change shortly afterward if they felt the quality was lacking.” Here's the list of the vehicles with the highest trade-in amounts, Buick Regal - 10.7 Percent Traded-In Chevrolet Sonic - 8.9 Percent Traded-In BMW X1 - 7.8 Percent Traded-In Dodge Charger - 7.7 Percent Traded-In Mercedes-Benz C-Class - 7.4 Percent Traded-In Chevrolet Cruze - 7.2 Percent Traded-In Nissan Frontier - 6.9 Percent Traded-In Source: Forbes View full article
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2014 will likely go down as the year of the recall in the automotive industry. General Motors is the champion with the most recalls so far with 70 recalls as of today, but other OEMs have been making their mark with their own recalls. CNNMoney crunched the numbers on the recalls so far in 2014 and figured out that there has been a total of 544 recalls, about two a day. Those 544 recalls have affected 52 million vehicles in the U.S., or about 1 in 5 vehicles. While that figure is disturbing to say in the least, it's made worse as that number has eclipsed the previous record of 30.8 million vehicles back in 2004. With only a couple months left in the year, there's a good chance that we could see a doubling of the 30.8 million vehicles. What's the cause for this increase in recalls? Mike Rozembajgier, a vice president at Stericycle said the reason for the increase is twofold. OEMs are putting greater diligence on identifying problems and cars are getting more complex. "We all want our cars to do far more than they did in the past. It takes a lot of gadgets to make that happen, and that adds to complexity," said Rozembajgier. Source: CNNMoney William Maley is a staff writer for Cheers & Gears. He can be reached at [email protected] or you can follow him on twitter at @realmudmonster. View full article
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One In Five Vehicles In The U.S. Has Been Hit With A Recall
William Maley posted an article in Automotive Industry
2014 will likely go down as the year of the recall in the automotive industry. General Motors is the champion with the most recalls so far with 70 recalls as of today, but other OEMs have been making their mark with their own recalls. CNNMoney crunched the numbers on the recalls so far in 2014 and figured out that there has been a total of 544 recalls, about two a day. Those 544 recalls have affected 52 million vehicles in the U.S., or about 1 in 5 vehicles. While that figure is disturbing to say in the least, it's made worse as that number has eclipsed the previous record of 30.8 million vehicles back in 2004. With only a couple months left in the year, there's a good chance that we could see a doubling of the 30.8 million vehicles. What's the cause for this increase in recalls? Mike Rozembajgier, a vice president at Stericycle said the reason for the increase is twofold. OEMs are putting greater diligence on identifying problems and cars are getting more complex. "We all want our cars to do far more than they did in the past. It takes a lot of gadgets to make that happen, and that adds to complexity," said Rozembajgier. Source: CNNMoney William Maley is a staff writer for Cheers & Gears. He can be reached at [email protected] or you can follow him on twitter at @realmudmonster. -
Despite countless studies and reports that say Gen Y (AKA millienals) aren't interested in cars, a new study released this week says this key group are interested in cars. Deloitte LLP, a financial consulting firm published their Global Automotive Consumer Study which showed that Gen Y is very much interested in getting their own vehicle, despite not having the same love affair as their parents and grandparents. "Well over half (61 percent) of Gen Y consumers in the Deloitte report expect to buy or lease a car within the next three years," said Craig Giffi, vice chairman of Deloitte. Giffi went onto say that "almost a quarter (23 percent) expect to purchase or lease in the next 12 months – and a mere 8 percent do not expect to ever purchase or lease a vehicle." The big stumbling block for Gen Y with purchasing a vehicle is cost. 80 percent of the Gen Y surveyed said that cost was a big factor. "Affordability is the mantra for Gen Y consumers who don't already own or lease a vehicle. When asked what purchasing criteria matter most to them, a majority cited cost-related items such as the vehicle's price tag, fuel efficiency and payment options," said Giffi. So what is Gen Y looking for in a vehicle? More than half want technology that entertains them while they are driving and wish that it was easier to customize the technology after a purchase or lease. A majority also believes that they will be driving an alternative engine vehicle within the next five years and that safety tech is a top priority. "While Gen Y may not necessarily scrutinize horsepower, acceleration times or engine size, they do have clear needs, wants and desires, especially when it comes to remaining connected to all of their lifestyle technology while on the road. This is good news for car makers, who already offer – or are bringing to market – many of the features Gen Y consumers most want in a vehicle," said Deloitte's Massa Hasegawa. Source: Deloitte LLP Press Release is on Page 2 Dude, Here's My Car: Gen Y Shows Interest in Vehicle Ownership Deloitte Report - Young drivers want affordable technology-enabled hybrids DETROIT, Jan. 16, 2014 /PRNewswire/ -- Gen Y consumers are showing a clear interest in vehicle ownership and have specific ideas of what they want in a car, according to Craig Giffi, vice chairman, Deloitte LLP, and automotive practice leader. Citing data from a Deloitte report on global mobility, Giffi said that while young consumers view car ownership as less important for mobility than previous generations, they are, nonetheless, excited about affordable, technology-enabled vehicles – especially hybrid electric cars. Deloitte's soon-to-be-released report is based on survey responses from more than 23,000 consumers across 19 countries, including more than 2,000 United States consumers – 677 of whom were from the Gen Y demographic (born between 1977 and 1994). The results indicate that while America's romance with the car does not extend to Gen Y, the nearly 80 million Gen Y consumers in the United States are not giving up on car ownership. "Well over half (61 percent) of Gen Y consumers in the Deloitte report expect to buy or lease a car within the next three years," says Giffi, who adds that "almost a quarter (23 percent) expect to purchase or lease in the next 12 months – and a mere 8 percent do not expect to ever purchase or lease a vehicle." Further, only 29 percent of Gen Y consumers would be willing to give up their personal cars, even as non-traditional mobility options like car-sharing and car-pooling services proliferate. Among Gen Y consumers who do not currently own or lease a vehicle, cost seems to be the main barrier – with most (80 percent) saying it is because they cannot afford it and three quarters citing high operational and maintenance costs. In addition, 67 percent said their lifestyle needs are met by walking or public transportation, while 40 percent said their lifestyle needs are met by car borrowing and car sharing. "Affordability is the mantra for Gen Y consumers who don't already own or lease a vehicle," says Giffi. "When asked what purchasing criteria matter most to them, a majority cited cost-related items such as the vehicle's price tag, fuel efficiency and payment options." So what does Gen Y want in a car? Most Gen Y consumers – whether they currently own a vehicle or not – demonstrate a clear affinity for cars and trucks with alternative powertrains. More than half (59 percent) think they will be driving an alternative engine vehicle five years from now, with more than a quarter (27 percent) naming hybrid electrics as their single most preferred type of alternative engine – far ahead of plug-in hybrids (8 percent), all-battery electric vehicles (7 percent), and fuel-cell vehicles (4 percent). What is more, they would like the government to help defray the higher costs of alternative powertrains, with 58 percent saying they would support government programs that reward consumers for choosing alternative/high-efficiency engines. "Gen Y consumers across the board also want safety technology, especially features that mitigate the risks of distracted driving," says Masa Hasegawa, principal, Deloitte Consulting LLP. "Almost three quarters (72 percent) want technology that recognizes the presence of other vehicles on the road and 63 percent want technology that lets them know when they have exceeded the speed limit." Plus, more than half (56 percent) want technology that entertains them while they are driving and 57 percent wish it were easier to customize a vehicle's technology after purchase or lease. And more than half would like to connect their smart phone to use all its applications from the vehicle's dashboard interface. "While Gen Y may not necessarily scrutinize horsepower, acceleration times or engine size, they do have clear needs, wants and desires, especially when it comes to remaining connected to all of their lifestyle technology while on the road," says Hasegawa. "This is good news for car makers, who already offer – or are bringing to market – many of the features Gen Y consumers most want in a vehicle." View full article
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Study: Gen Y Wants Cars... When They Can Afford Them
William Maley posted an article in Automotive Industry
Despite countless studies and reports that say Gen Y (AKA millienals) aren't interested in cars, a new study released this week says this key group are interested in cars. Deloitte LLP, a financial consulting firm published their Global Automotive Consumer Study which showed that Gen Y is very much interested in getting their own vehicle, despite not having the same love affair as their parents and grandparents. "Well over half (61 percent) of Gen Y consumers in the Deloitte report expect to buy or lease a car within the next three years," said Craig Giffi, vice chairman of Deloitte. Giffi went onto say that "almost a quarter (23 percent) expect to purchase or lease in the next 12 months – and a mere 8 percent do not expect to ever purchase or lease a vehicle." The big stumbling block for Gen Y with purchasing a vehicle is cost. 80 percent of the Gen Y surveyed said that cost was a big factor. "Affordability is the mantra for Gen Y consumers who don't already own or lease a vehicle. When asked what purchasing criteria matter most to them, a majority cited cost-related items such as the vehicle's price tag, fuel efficiency and payment options," said Giffi. So what is Gen Y looking for in a vehicle? More than half want technology that entertains them while they are driving and wish that it was easier to customize the technology after a purchase or lease. A majority also believes that they will be driving an alternative engine vehicle within the next five years and that safety tech is a top priority. "While Gen Y may not necessarily scrutinize horsepower, acceleration times or engine size, they do have clear needs, wants and desires, especially when it comes to remaining connected to all of their lifestyle technology while on the road. This is good news for car makers, who already offer – or are bringing to market – many of the features Gen Y consumers most want in a vehicle," said Deloitte's Massa Hasegawa. Source: Deloitte LLP Press Release is on Page 2 Dude, Here's My Car: Gen Y Shows Interest in Vehicle Ownership Deloitte Report - Young drivers want affordable technology-enabled hybrids DETROIT, Jan. 16, 2014 /PRNewswire/ -- Gen Y consumers are showing a clear interest in vehicle ownership and have specific ideas of what they want in a car, according to Craig Giffi, vice chairman, Deloitte LLP, and automotive practice leader. Citing data from a Deloitte report on global mobility, Giffi said that while young consumers view car ownership as less important for mobility than previous generations, they are, nonetheless, excited about affordable, technology-enabled vehicles – especially hybrid electric cars. Deloitte's soon-to-be-released report is based on survey responses from more than 23,000 consumers across 19 countries, including more than 2,000 United States consumers – 677 of whom were from the Gen Y demographic (born between 1977 and 1994). The results indicate that while America's romance with the car does not extend to Gen Y, the nearly 80 million Gen Y consumers in the United States are not giving up on car ownership. "Well over half (61 percent) of Gen Y consumers in the Deloitte report expect to buy or lease a car within the next three years," says Giffi, who adds that "almost a quarter (23 percent) expect to purchase or lease in the next 12 months – and a mere 8 percent do not expect to ever purchase or lease a vehicle." Further, only 29 percent of Gen Y consumers would be willing to give up their personal cars, even as non-traditional mobility options like car-sharing and car-pooling services proliferate. Among Gen Y consumers who do not currently own or lease a vehicle, cost seems to be the main barrier – with most (80 percent) saying it is because they cannot afford it and three quarters citing high operational and maintenance costs. In addition, 67 percent said their lifestyle needs are met by walking or public transportation, while 40 percent said their lifestyle needs are met by car borrowing and car sharing. "Affordability is the mantra for Gen Y consumers who don't already own or lease a vehicle," says Giffi. "When asked what purchasing criteria matter most to them, a majority cited cost-related items such as the vehicle's price tag, fuel efficiency and payment options." So what does Gen Y want in a car? Most Gen Y consumers – whether they currently own a vehicle or not – demonstrate a clear affinity for cars and trucks with alternative powertrains. More than half (59 percent) think they will be driving an alternative engine vehicle five years from now, with more than a quarter (27 percent) naming hybrid electrics as their single most preferred type of alternative engine – far ahead of plug-in hybrids (8 percent), all-battery electric vehicles (7 percent), and fuel-cell vehicles (4 percent). What is more, they would like the government to help defray the higher costs of alternative powertrains, with 58 percent saying they would support government programs that reward consumers for choosing alternative/high-efficiency engines. "Gen Y consumers across the board also want safety technology, especially features that mitigate the risks of distracted driving," says Masa Hasegawa, principal, Deloitte Consulting LLP. "Almost three quarters (72 percent) want technology that recognizes the presence of other vehicles on the road and 63 percent want technology that lets them know when they have exceeded the speed limit." Plus, more than half (56 percent) want technology that entertains them while they are driving and 57 percent wish it were easier to customize a vehicle's technology after purchase or lease. And more than half would like to connect their smart phone to use all its applications from the vehicle's dashboard interface. "While Gen Y may not necessarily scrutinize horsepower, acceleration times or engine size, they do have clear needs, wants and desires, especially when it comes to remaining connected to all of their lifestyle technology while on the road," says Hasegawa. "This is good news for car makers, who already offer – or are bringing to market – many of the features Gen Y consumers most want in a vehicle." -
Consumer Reports Picks The Vehicles With The Best Value
William Maley posted an article in Automotive Industry
If you're looking a vehicle that has the best value in the marketplace, then according to Consumer Reports, you should be looking at the Toyota Prius. The publication announced the results of their annual Best New-Car Value analysis. The analysis looks at the five-year cost for a vehicle to an owner which includes such factors as maintenance, insurance, and depreciation. That cost is factored in with Consumer Reports’ road-test score and reliability rating for each vehicle. This is the second year the Prius has been named the best value in the marketplace. Consumer Reports says the Prius has a nice balance of performance, reliability, and low estimated five-year ownership costs of 47 cents per mile. “The Prius’ 44 mpg overall is the best fuel economy of any non-plug-in car that Consumer Reports has tested. Though it’s not particularly cheap to buy, the Prius’ depreciation is so low that it costs less to own over the first five years than its initial MSRP. We call that a bargain,” said Consumer Reports Automotive Editor Rik Paul. Now with there being a best, that usually means there is a worst. In this case, it happens to be the Nissan Armada. Consumer Reports says the Armada scored poorly in this year's reliability survey and gets 13 MPG combined, giving it the highest ownership cost of a $1.20 per mile. Here is a list of the best and worst for each class. Compact /Subcompact Cars: Best, Toyota Prius Four; Worst, Volkswagen Beetle 2.5L Midsized Cars: Best, Subaru Legacy 2.5i Premium; Worst, Nissan Altima 3.5 SL Large Cars: Best, Toyota Avalon Hybrid Limited; Worst, Ford Taurus Limited Luxury Cars: Best, Lexus ES 300h; Worst, BMW 750Li Sports Cars/Convertibles: Best: Mazda MX-5 Miata Grand Touring; Worst, Chevrolet Camaro convertible 2SS (V8) Wagons/Minivans: Best, Mazda5 Grand Touring; Worst, Chrysler Town & Country Touring-L Small SUVs: Best, Subaru Forester 2.5i Premium; Worst, Ford Escape SE (1.6T) Midsized SUVs: Best, Nissan Murano SL; Worst, Jeep Wrangler Unlimited Sahara Luxury/Large SUVs: Best, BMW X1 xDrive28i; Worst, Nissan Armada Platinum Pickups: Best, Honda Ridgeline RTS; Worst, Ford F-250 Lariat (6.7L V8) Source: Consumer Reports William Maley is a staff writer for Cheers & Gears. He can be reached at [email protected] you can follow him on twitter at @realmudmonster. Press Release is on Page 2 Consumer Reports Names Toyota Prius Best New-Car Value for Second Year in A Row Nissan Armada ranked lowest overall in CR’s annual Best- & Worst-Value Ranking YONKERS, NY— Consumer Reports finds the Toyota Prius to be the best overall value for the automotive dollar and the Nissan Armada the worst in its annual Best New-Car Value analysis. This is the second straight year that the Prius has topped CR’s best-value list, which highlights the cars that give you the most bang for your buck. The popular hybrid has the right combination of performance, reliability and low estimated five-year ownership costs of 47 cents per mile. Last year, the Prius unseated the perennial best-value leader, the Honda Fit. The Fit had held the best new-car value title for the previous four years. The Armada, a large SUV that gets only 13 mpg overall and scored poorly in Consumer Reports’ annual reliability survey, costs a hefty $1.20 per mile, according to CR’s analysis. Toyota and Lexus models placed at the top in three of the 10 categories that Consumer Reports analyzed—with the Prius taking top overall ranking and emerging in first place in the Compact/Subcompact Cars category. The Toyota Avalon Hybrid Limited is the top-scoring vehicle in the Large Cars group and the Lexus ES 300h is the top model in the Luxury Cars category. Vehicles from Subaru and Mazda were also standouts in the analysis; each automaker had vehicles that topped the rankings in two categories. The Subaru Legacy 2.5i Premium was the top-scoring vehicle in the Midsized Cars category and the Subaru Forester 2.5i Premium scored best among Small SUVs. The Mazda MX-5 Miata Grand ranked first overall in the Sports Cars/Convertibles category while the Mazda5 Grand Touring was best in the Wagons/Minivans group. In creating its annual Best and Worst New-Car Values list, Consumer Reports mines its performance, reliability, and owner-cost data to calculate a value score for more than 200 different vehicles ranging from small cars like the Hyundai Accent and Honda Fit to luxury sedans such as the Cadillac XTS and BMW 750Li. “The Prius’ 44 mpg overall is the best fuel economy of any non-plug-in car that Consumer Reports has tested,” said Consumer Reports Automotive Editor Rik Paul. “Though it’s not particularly cheap to buy, the Prius’ depreciation is so low that it costs less to own over the first five years than its initial MSRP. We call that a bargain.” The scores were calculated based on the five-year owner cost for each vehicle, along with Consumer Reports’ road-test score and the organization’s own predicted-reliability score from the latest Annual Auto Survey. In short, the better a car performs in Consumer Reports’ road tests and reliability ratings, and the less it costs to own over time, the better its value. The five-year owner cost estimates factor in depreciation, fuel, insurance premiums, interest on financing, maintenance and repairs, and sales tax. Depreciation is by far the largest owner-cost factor. The 10 vehicle categories Consumer Reports included in this analysis: Compact/Subcompact Cars, Midsized Cars, Large Cars, Luxury Cars, Sports Cars/Convertibles, Wagons/Minivans, Small SUVs, Midsized SUVs, Luxury/Large SUVs, and Pickups. “Just because a car is cheap to buy doesn’t mean it’s a good value. The Nissan Versa Sedan, for example, is one of the least expensive cars that Consumer Reports has tested,” Paul said. “For about $1,500 more, we’d go with a Honda Fit, which is fun to drive, cheaper to own, more reliable, and provides almost twice the value.” Here’s a look at the winners and losers in each of the categories: Compact /Subcompact Cars: Best, Toyota Prius Four; Worst, Volkswagen Beetle 2.5L Midsized Cars: Best, Subaru Legacy 2.5i Premium; Worst, Nissan Altima 3.5 SL Large Cars: Best, Toyota Avalon Hybrid Limited; Worst, Ford Taurus Limited Luxury Cars: Best, Lexus ES 300h; Worst, BMW 750Li Sports Cars/Convertibles: Best: Mazda MX-5 Miata Grand Touring; Worst, Chevrolet Camaro convertible 2SS (V8) Wagons/Minivans: Best, Mazda5 Grand Touring; Worst, Chrysler Town & Country Touring-L Small SUVs: Best, Subaru Forester 2.5i Premium; Worst, Ford Escape SE (1.6T) Midsized SUVs: Best, Nissan Murano SL; Worst, Jeep Wrangler Unlimited Sahara Luxury/Large SUVs: Best, BMW X1 xDrive28i; Worst, Nissan Armada Platinum Pickups: Best, Honda Ridgeline RTS; Worst, Ford F-250 Lariat (6.7L V8) -
If you're looking a vehicle that has the best value in the marketplace, then according to Consumer Reports, you should be looking at the Toyota Prius. The publication announced the results of their annual Best New-Car Value analysis. The analysis looks at the five-year cost for a vehicle to an owner which includes such factors as maintenance, insurance, and depreciation. That cost is factored in with Consumer Reports’ road-test score and reliability rating for each vehicle. This is the second year the Prius has been named the best value in the marketplace. Consumer Reports says the Prius has a nice balance of performance, reliability, and low estimated five-year ownership costs of 47 cents per mile. “The Prius’ 44 mpg overall is the best fuel economy of any non-plug-in car that Consumer Reports has tested. Though it’s not particularly cheap to buy, the Prius’ depreciation is so low that it costs less to own over the first five years than its initial MSRP. We call that a bargain,” said Consumer Reports Automotive Editor Rik Paul. Now with there being a best, that usually means there is a worst. In this case, it happens to be the Nissan Armada. Consumer Reports says the Armada scored poorly in this year's reliability survey and gets 13 MPG combined, giving it the highest ownership cost of a $1.20 per mile. Here is a list of the best and worst for each class. Compact /Subcompact Cars: Best, Toyota Prius Four; Worst, Volkswagen Beetle 2.5L Midsized Cars: Best, Subaru Legacy 2.5i Premium; Worst, Nissan Altima 3.5 SL Large Cars: Best, Toyota Avalon Hybrid Limited; Worst, Ford Taurus Limited Luxury Cars: Best, Lexus ES 300h; Worst, BMW 750Li Sports Cars/Convertibles: Best: Mazda MX-5 Miata Grand Touring; Worst, Chevrolet Camaro convertible 2SS (V8) Wagons/Minivans: Best, Mazda5 Grand Touring; Worst, Chrysler Town & Country Touring-L Small SUVs: Best, Subaru Forester 2.5i Premium; Worst, Ford Escape SE (1.6T) Midsized SUVs: Best, Nissan Murano SL; Worst, Jeep Wrangler Unlimited Sahara Luxury/Large SUVs: Best, BMW X1 xDrive28i; Worst, Nissan Armada Platinum Pickups: Best, Honda Ridgeline RTS; Worst, Ford F-250 Lariat (6.7L V8) Source: Consumer Reports William Maley is a staff writer for Cheers & Gears. He can be reached at [email protected] you can follow him on twitter at @realmudmonster. Press Release is on Page 2 Consumer Reports Names Toyota Prius Best New-Car Value for Second Year in A Row Nissan Armada ranked lowest overall in CR’s annual Best- & Worst-Value Ranking YONKERS, NY— Consumer Reports finds the Toyota Prius to be the best overall value for the automotive dollar and the Nissan Armada the worst in its annual Best New-Car Value analysis. This is the second straight year that the Prius has topped CR’s best-value list, which highlights the cars that give you the most bang for your buck. The popular hybrid has the right combination of performance, reliability and low estimated five-year ownership costs of 47 cents per mile. Last year, the Prius unseated the perennial best-value leader, the Honda Fit. The Fit had held the best new-car value title for the previous four years. The Armada, a large SUV that gets only 13 mpg overall and scored poorly in Consumer Reports’ annual reliability survey, costs a hefty $1.20 per mile, according to CR’s analysis. Toyota and Lexus models placed at the top in three of the 10 categories that Consumer Reports analyzed—with the Prius taking top overall ranking and emerging in first place in the Compact/Subcompact Cars category. The Toyota Avalon Hybrid Limited is the top-scoring vehicle in the Large Cars group and the Lexus ES 300h is the top model in the Luxury Cars category. Vehicles from Subaru and Mazda were also standouts in the analysis; each automaker had vehicles that topped the rankings in two categories. The Subaru Legacy 2.5i Premium was the top-scoring vehicle in the Midsized Cars category and the Subaru Forester 2.5i Premium scored best among Small SUVs. The Mazda MX-5 Miata Grand ranked first overall in the Sports Cars/Convertibles category while the Mazda5 Grand Touring was best in the Wagons/Minivans group. In creating its annual Best and Worst New-Car Values list, Consumer Reports mines its performance, reliability, and owner-cost data to calculate a value score for more than 200 different vehicles ranging from small cars like the Hyundai Accent and Honda Fit to luxury sedans such as the Cadillac XTS and BMW 750Li. “The Prius’ 44 mpg overall is the best fuel economy of any non-plug-in car that Consumer Reports has tested,” said Consumer Reports Automotive Editor Rik Paul. “Though it’s not particularly cheap to buy, the Prius’ depreciation is so low that it costs less to own over the first five years than its initial MSRP. We call that a bargain.” The scores were calculated based on the five-year owner cost for each vehicle, along with Consumer Reports’ road-test score and the organization’s own predicted-reliability score from the latest Annual Auto Survey. In short, the better a car performs in Consumer Reports’ road tests and reliability ratings, and the less it costs to own over time, the better its value. The five-year owner cost estimates factor in depreciation, fuel, insurance premiums, interest on financing, maintenance and repairs, and sales tax. Depreciation is by far the largest owner-cost factor. The 10 vehicle categories Consumer Reports included in this analysis: Compact/Subcompact Cars, Midsized Cars, Large Cars, Luxury Cars, Sports Cars/Convertibles, Wagons/Minivans, Small SUVs, Midsized SUVs, Luxury/Large SUVs, and Pickups. “Just because a car is cheap to buy doesn’t mean it’s a good value. The Nissan Versa Sedan, for example, is one of the least expensive cars that Consumer Reports has tested,” Paul said. “For about $1,500 more, we’d go with a Honda Fit, which is fun to drive, cheaper to own, more reliable, and provides almost twice the value.” Here’s a look at the winners and losers in each of the categories: Compact /Subcompact Cars: Best, Toyota Prius Four; Worst, Volkswagen Beetle 2.5L Midsized Cars: Best, Subaru Legacy 2.5i Premium; Worst, Nissan Altima 3.5 SL Large Cars: Best, Toyota Avalon Hybrid Limited; Worst, Ford Taurus Limited Luxury Cars: Best, Lexus ES 300h; Worst, BMW 750Li Sports Cars/Convertibles: Best: Mazda MX-5 Miata Grand Touring; Worst, Chevrolet Camaro convertible 2SS (V8) Wagons/Minivans: Best, Mazda5 Grand Touring; Worst, Chrysler Town & Country Touring-L Small SUVs: Best, Subaru Forester 2.5i Premium; Worst, Ford Escape SE (1.6T) Midsized SUVs: Best, Nissan Murano SL; Worst, Jeep Wrangler Unlimited Sahara Luxury/Large SUVs: Best, BMW X1 xDrive28i; Worst, Nissan Armada Platinum Pickups: Best, Honda Ridgeline RTS; Worst, Ford F-250 Lariat (6.7L V8) View full article
