First impression: 2010 Lexus HS 250h hybrid

At a recent New York introduction, Consumer Reports Senior Auto Test Engineer Gabe Shenhar and I had a chance to drive the new Lexus HS 250h hybrid, the brand’s first four-cylinder model. It’s designed for hybrid buyers who want a little more luxury without giving up great fuel economy. And for entry-level luxury car buyers who want a car with better fuel economy. So far, the HS is in a class of its own.

We drove two of the front-drive sedans about 40 miles, and thought we’d share some early impressions from our hands-on experience. (For a full preview, see the Lexus HS 250h report from the New York auto show.) First, the HS 250h is available with just about every whiz-bang new electronic feature on the market, including laser-guided cruise-control, forward and rear-view monitors, lane departure warning with steering assist, and a heads-up display.

Behind the wheel
Gabe and I found the ride rather stiff—especially for a car wearing a Lexus badge. Handling is OK, but the HS 250h is not particularly agile. Engine noise can be relatively pronounced for a luxury car.

Inside, the HS 250h feels narrow, with the back seat being especially tight. The second row struck us as being roomier than the Lexus IS rear seat, but not as spacious as the more accommodating Prius. Trunk space is compromised by the batteries. Adding green appeal, the interior uses organic fabrics on the seats that make a passable imitation of leather, and organic materials are also found in the carpet and dashboard.

Lexus says their customer research shows that 60 percent of hybrid buyers also own a luxury car, and 60 percent of luxury car owners express an interest in buying a hybrid. In addition to Lexus’s current performance-focused hybrids that are quick but yield only moderate economy gains, the HS 250h will soon give those buyers a thriftier alternative. Over a 9-mile city-loop driving route, we averaged fuel economy in the high 30 mpg range, according to the trip computer. EPA figures are 35/34/35 city/highway/overall.

To be offered exclusively as a hybrid, the HS 250h will go on sale at the end of August. We’ll buy one for our full test program shortly thereafter, and then we’ll see how the HS 250h really stacks up. 

—Eric Evarts

Learn about driving green in the Consumer Reports special fuel economy section

Average gas prices--July 6, 2009

Fuel prices across the board are down compared against the week before. The national gasoline average is now about a $1.50 below the price this time last year. Diesel fuel is $2.13 below this time last year.

National retail fuel price averages

Price

Change from last week

Regular gasoline/gallon	$2.61	↓ .03
Diesel fuel/gallon	$2.59	↓ .01

Regional regular gasoline prices

Price

Change from last week

East Coast	$2.61	↓ .03
-New England	$2.65	↓ .01
-Central Atlantic	$2.65	↓ .02
-Lower Atlantic	$2.56	↓ .04
Midwest	$2.55	↓ .03
Gulf Coast	$2.46	↓ .06
Rocky Mountain	$2.59	↓ .01
West Coast	$2.89	↓ .02
-California	$2.95	↓ .03

Source: Energy Information Administration, 7/6/09. Figures rounded to the nearest cent.

For more information on saving fuel see our reports on how to get the best gas mileage and where to find the cheapest gas.

Judge approves "old" GM bankruptcy sale to "new" GM

Late yesterday, U.S. Bankruptcy Court Judge Robert Gerber approved the sale of General Motors to a new corporation, which will allow the company to come out of bankruptcy as early as Thursday.

The new company will be owned by:

• The United States government—a 60.8 percent stake
• A trust fund (VEBA) that provides medical benefits for United Auto Workers retirees—17.5 percent
• The governments of Canada and the province of Ontario—11.7 percent
• Bondholders of the old GM—10 percent.

Objectors, who included people ranging from consumer groups to bondholders, failed to present a viable alternative to the bankruptcy, the judge said. He allowed a four day stay of the sale until Thursday afternoon for appeals. Friday, July 10, is the last day the U.S. Department of the Treasury has agreed to extend any loans to the old GM.

The new GM will include Buick, Cadillac, Chevrolet, and GMC brands, with the automaker divesting itself of Hummer, Pontiac, Saab, and Saturn. It will also include some overseas operations, including those in China and Brazil. GM continues to work with potential buyers for its European operations.

The court-approved sale leaves behind hundreds of consumers who had personal-injury claims against GM for alleged defective products. (Read: "New GM" will cover future product-liability claims, but not pending ones.")

For most consumers, however, we expect the transition to the new company to be relatively transparent. The company has said it will still back warranties on all existing cars. If you own a Saab or Saturn new ownership may bring changes at your dealership, as these brands transition under new ownership. Hummer may be sold to Chinese truck maker Tengzhong. Pontiac will be closed. Through these changes, it is expected that more dealerships will also close.

If you’re thinking of buying a GM car or truck, the company is offering great incentives right now. But it’s important to remember that any deal is only as good as the vehicle you’re buying. Consumer Reports recommends the Buick Lucerne V8, the Cadillac DTS, the Chevrolet Avalanche, HHR, Malibu, and Silverado, and the GMC Sierra.

So if you’re looking for a new American car, these models might be a good place to start.

Use our new car selector to compare models based on ratings, reliability, safety, cost, and the factors that matter most to you.

—Eric Evarts

Read "What does the GM bankruptcy mean to you?" To get more answers to the most common questions and concerns about GM’s bankruptcy, visit our Auto Crisis hub.

Personal Picks: Midsized SUVs

Models such as the Ford Explorer, Honda Pilot, Jeep Grand Cherokee, Toyota Highlander have been popular for years. This group easily makes up the bulk of SUV sales, probably because you can choose get almost any combination of three-row seating, good off-road abilities, luxury-lined cabins, boat-pulling grunt, or hybrid technology. Really, there’s something for everyone.

A recent Consumer Reports test group included a diverse cross-section of SUVs: the Chevrolet Traverse, Kia Borrego, Infiniti FX35, and Lexus RX 350. While the Chevrolet and Kia lean toward the practical side (both have 3rd-row seats), the Lexus and Infiniti, respectively, treat drivers to luxurious cabins and relatively sporty handling.

But when the rubber meets the road, which ones would we buy? Take a look at the testers’ personal picks:

Rick Small: While the Lexus RX is nice overall, it’s very expensive. I would save some money and buy the very similar Toyota Venza. The Infiniti FX is very quick and sporty, but it is a bit cramped for my tall frame and not as roomy or versatile as many in this group. The Borrego is priced right but rides stiffly, and it is not as economical as most in this category. The Traverse is the best of the GM offerings -- it does most things well and is roomy and not bulky to drive. However, reliability is still an open question. Overall, I still prefer the Nissan Murano. It has a good combination of comfort, performance, and fuel economy. The Honda Pilot is also a roomy, reliable choice but not if you are looking for a sporty ride. I look forward to testing the new Chevrolet Equinox, which looks promising with its choice of four-cylinder or V6 engines. Plus, it’s not as big as the Traverse, so it should handle better and be more economical.

Gabe Shenhar: Among these types of SUVs, I’m leaning toward the luxury end. I’ve always been drawn to the BMW X5. I think it looks great and it drives beautifully. It very much possesses the steering precision and body control you’d associate with a BMW. And, if you get the diesel, 22 mpg is pretty sweet for a vehicle this size. But it also costs a pile of money. No matter how you slice it, you’re hovering around $60K. That’s why my sensible side leads me to the Acura MDX. It’s smooth and refined, and it drives in a responsive, relatively connected way without beating you up. In terms of value for the money, I think it’s unbeatable. Everyone in my circle of friends and family to whom I’ve recommended the MDX couldn’t be happier.

And yet, both the X5 and MDX have become such an overly popular suburban soccer-mom mobile that I find myself balking at the idea. And both are kind of large for my personal taste. That’s exactly why I could see myself getting the new Audi Q5. It’s just the right size, so you don’t feel like you’re driving a truck. It has enough room, provided you are giving up the third row. It has a beautiful interior that’s tasteful, luxurious, and quiet. Most importantly, the Q5 is entertaining to drive with a sporty demeanor, good steering and a nice powertrain. As an extra bonus it also looks great. CRO subscribers can read about it on the Audi Q5 model overview page.  Or you’ll find it in the September issue of CR.

Mike Quincy: I so wanted to like the new Toyota Venza. It just seemed like the right size, and the styling really caught my eye. And when I drove it into New York for the city’s auto show, I got lots of questions from the parking attendants. They were mostly dazzled by the Venza’s slick lines and 20-inch wheels. But driving the Toyota made me feel like I had, well, influ-venza. The ride was harsh and noisy, I couldn’t see out of it, the steering felt dead, and the whole package needs to visit Jenny Craig. Instead, for a small-family-sized SUV with some pizzazz, I’d go with the Mazda CX-9. The Mazda’s handling is quite engaging, and the powertrain is surprisingly responsive. Three-row seating helps when my young boys want to each bring a friend to the movies, and the cargo area easily holds my bike. I wish the CX-9’s fuel economy was better (only 16 mpg overall), but, for me, it strikes the right balance between the nice-but-dull Highlander and the sporty but expensive and smaller FX35.

American Personal Picks: July 4th Edition

To celebrate the 4th of July, the Consumer Reports Autos team put together its patriotic personal picks focused on the American-brand models they would most like to own. Or, imagine that you’ve just accepted a new job with great pay and benefits, including a new car. However, you employer insists that it be an American-branded car. So we asked which one would you choose and why?

Car type and price were left wide open, giving the engineers and editors freedom to choose from the broad model pantheon from Chrysler, Ford, and General Motors. Interesting, many of the same vehicles were repeated throughout the picks.

Read on to see the red, white, and blue selections here, and comment below with your own choices this holiday weekend. For a more official take, see our post “Consumer Reports American Top Picks 2009.” 

Jeff Bartlett: For a practical choice, I would zero in on the Ford Fusion—A well-mannered, fuel-efficient sedan that is a terrific value and practical choice, made more appealing with its 2010 update. Beyond that, I see precious little from the Detroit 3 that would appeal to my below-$25,000 sensibilities. I favor a hatchback for versatility and prize personality. Not much meets that description from Detroit.

However, were gasoline once again cheap as water, the Chevrolet Camaro SS would be a slam dunk. It is a 30-year dream realized, almost. I have long wanted a first-gen Camaro reinvented with a modern chassis, powertrain, and safety features. But having driven it, I find I also want head room, rearward visibility, and more polished interior. Still, the new model drives as good as in my fantasy, looks stunning, and has terrific power. Should I trip over a lottery ticket or leprechaun, it would be a Corvette in the driveway, again. The Z06 and ZR1 deliver exotic-car performance in an all-American sports car, though I would choose the new Grand Sport version. The name alone conjures a legendary heritage. This special-edition has Z06 appearance elements and brakes, distinctive trim details, and a more-than-adequate 436-horsepower LS3 V8. Yeah, that’d be it.

David Champion: I would choose the Ford Fusion, Flex or Chevrolet Traverse. The Fusion’s top-notch reliability is a real breakthrough for a domestic brand and the car is fun to drive. The Flex is just the right size to carry either people or cargo—it’s comfortable and quiet and makes for a great road-trip vehicle. If I were in the market for a three-row SUV, the Traverse would be on my list for its ability to handle a variety of duties, plus its ride and handling are impressive for its size. But its sibling’s first-year reliability has been very disappointing.

Eric Evarts: If I could afford a $40,000 entry-level luxury sedan, there’s no better example on the market in my book than the new Cadillac CTS. It’s quicker than a BMW, handles as well, has more room inside, and looks wicked. While earlier CTS’s had cheesy-looking and poorly laid out interiors, the new one’s feels rich, and much warmer, more practical, and easy to use than European equivalents. Even better, I could get it with all-wheel-drive to get home from work up my hill in a snowstorm. (In fact, my neighbor did.) Even the automatic transmission that comes with the all-wheel-drive model is smooth, crisp, and responsive. So it doesn’t feel like a sacrifice.

But you don’t have to spend $40,000 to get a great American car. I prefer the new Chevrolet Malibu and the Ford Fusion to the Toyota Camry and the new Honda Accord, which both feel too big to me—even if I really like the VW Passat better than any of them.

Mike Leung: For me, I like the Cadillac CTS-V and Chevrolet Corvette. They’re stylish and fun to drive. Although the practical side of me would also go for the standard CTS, which is less fun to drive, but it has a very nice interior and is still quite stylish.

Tom Mutchler: A dream of mine is to get a 25-foot Airstream along with a pickup truck as a tow vehicle. Starting out with a smaller RV for now, I picked up a used T@B teardrop trailer, choosing our 2009 Chevrolet Silverado to go get it. We put 1,400 miles in three days on that truck and found it to be a comfortable and easy-to-live-with travel companion. Sure, a loaded Avalanche or a GMC Sierra Denali would be sweet, but a “modest” Silverado remains a very nice truck. I want one.

But a truck isn’t exactly what I want for a daily driver. Lots of domestic cars qualify. The Chevrolet Malibu is one of my favorite family sedans; I’d take a four-cylinder LT over the stiffer-riding LTZ. We found that the four-cylinder Malibu’s fuel economy beat the four-cylinder Accord and Camry in our tests, and I find the Malibu more stylish than the Ford Fusion/Mercury Milan. If I got a management job, maybe I could swing a Cadillac CTS—a very appealing sports sedan.

Finally, I’ve come very close—more than once—to buying a Ford SVT Contour or Focus. Both were tremendously satisfying driver’s cars. There isn’t really anything in Ford’s domestic fleet that currently qualifies, but I’m looking forward to the upcoming European-based Fords. Even the Transit Connect has steering feel that rivals some sports cars…

Mike Quincy: I’ve grown very fond of the new Dodge Ram pickup truck. It’s quieter inside than a congressional hearing on Wall Street bonuses. But the Ram’s open bed isn’t secure like the Chevrolet Avalanche’s – another truck I love. Tough call between these two. But these vehicles are all work, and I have to weigh in on stuff for play. The Chevrolet Corvette is often my answer to the question “If you could have ANY car, which one would it be?” Corvettes of various generations and horsepower ratings have accompanied me on trips from Boston to Washington, D.C. The combination of awesome power, secure handling and tolerable ride is amazing. I’ve often said that if GM put as much effort into the rest of its line as it so obviously has with the Corvette, it would rule the world. I’m also a big fan of the fun to drive Ford Mustang GT. I love its looks and distinctive V8 rumble, and I’ve enjoyed driving our recently acquired ’09 GT.

Gabe Shenhar: I think the Ford Fusion SEL V6 makes for a good family sedan. Even though it’s based on the previous-generation Mazda6 and is built in Mexico, it qualifies as American by most definitions. The Fusion steers and handles well with a nice ride. For a larger sedan, I’d take the Pontiac G8 GT. I love this car. With Euro-style ride, handling and braking and some rough-and-tumble American muscle, this Aussie import is exactly what the British would call a Q-car – an incognito fierce performance machine. If my budget allowed me to go more upscale, I’d be happy with a Cadillac CTS. This home-grown Detroiter looks gorgeous and drives almost as beautifully as a BMW 5 Series. And I personally think it steers better than an Infiniti G37. The larger Cadillac STS has even more comfort, quietness and roominess thrown in, yet is still a solid, enjoyable drive.

For SUVs, I’d look at the Jeep Grand Cherokee Limited 4.7, really one of Chrysler’s only worthy models. It has a character, looks and the off-road ability befitting a Jeep. And yet, it’s brisk and fairly capable on the road with some handling response and decent seats. For a model with three-row seating, I’d choose the Chevrolet Traverse. It’s roomy and drives well. This coach feels solid and quiet without being the Queen Mary II. And I prefer its looks over its three other siblings. In the absence of a domestic minivan, its functionally comes close to that most-efficient suburban vehicle.

Rick Small: I would buy a Ford Fusion, Flex or Edge. These models have a sportier feel than much of their competition and they’re attractive designs to boot. Discounting for these models is prevalent, so you can get a good deal. The Fusion and Edge are also reliable. Finally, Ford isn’t taking any bail out money (yet) which means the company should be around for awhile.

Cash for Clunkers not ready yet

Officially, the federal CARS (Car Allowance Rebate System) rebate system kicked off yesterday. But don’t drag your clunker down to your local dealership just yet. According to the government’s official CARS Web site, the program won’t be up and running until around July 23, 30 days after President Obama signed the “Cash for Clunkers” act into law.

That’s because mechanisms for dealers to sign up for the program and to be reimbursed the rebate money may take a few weeks to implement. So, it may take a little bit longer before you can take advantage of the program. The CARS program will provide rebates of $3,500 or $4,500 to new-car buyers who trade in vehicles that get lower mileage for scrap. For more details see our earlier post. That hasn’t stopped some Web sites from springing up to lure consumers to register and give their names to dealerships as sales leads.

For the record, cars.gov is the only official cash-for-clunkers Web site. There will be no need for consumers to register for the program, and rebates will come directly from dealers, not in the form of physical vouchers.

—Eric Evarts

What should Government Motors (GM) build?

General Motors is effectively under new ownership. The mega-corporation has gone through dramatic changes this past year, and the GM that emerges from Chapter 11 will be much different than the domestic titan that dominated the global automotive industry for many years. It will divest itself of Hummer, Pontiac, Saab, and Saturn, along with far more employees than my heart and mind can calculate. Through its restructuring GM has found funding from you and me, managed by the federal government, along with a significant underwriting from our Canadian neighbors.

For now, government is the majority stakeholder. While president Obama’s Autos Task Force insists it will allow GM management to run the company, there is potential for influence. We know that the U.S. government wants GM to return to profitability, and we also know that fuel economy is a major priority, with increasingly stringent mileage targets recently put in place.

It makes me wonder: What would the government do with GM were it free to run the day-to-day operations? (For one, they may realize the challenge in chasing profit and fuel economy at the same time…)

The big question is, what kind of cars would Government Motors produce?

Share your thoughts in the comments below.

—Jeff Bartlett 

First drives of Consumer Reports’ latest vehicle purchases

At Consumer Reports we buy, anonymously, all the cars we test, about 80 per year, and put thousands of miles on each of them. So, we are constantly at dealerships buying new vehicles to put through our exhaustive test program consisting of more than 50 tests. As vehicles start the evaluation process, we share our initial, raw impressions through the "Logbook" posts on this blog. When vehicles start the test process, we provide initial First Drive reports on popular models before their road tests are completed.

The most recent First Drives include the Dodge Challenger, Ford Fusion and Fusion hybrid, Hyundai Genesis Coupe, Nissan Cube, Nissan 370Z, and Volvo XC60. The full tests of all these vehicles will be published in the coming months.

Dodge Challenger: The classic muscle car is reborn into a powerful cruiser, but faces stiff competition from the revived Chevrolet Camaro and freshened Ford Mustang. Read the complete First drive.

Ford Fusion/Fusion hybrid: The Fusion is well-rounded and enjoyable to drive and is now fully competitive with the best family sedans. Read the complete First Drive.

Hyundai Genesis Coupe: This new coupe is eye-catching and generously equipped with an affordable sticker price, but the manual transmission is not up to par. Read the complete First Drive.

Nissan Cube: This boxy wagon has abundant interior room and great fuel economy for a low price. Read the complete First Drive.

Nissan 370Z: The Z is a true sports car with precise handling and fun-to-drive appeal, but the ride is stiff and road noise loud. Read the complete First Drive.

Volvo XC60: The XC60 luxury SUV is a pleasant vehicle, which showcases the latest safety advances, but it’s not as exciting to drive as it’s competitors. Read the complete First Drive.

We add new First Drives to ConsumerReports.org on a regular basis. These can be found on our First Drives hub linked on the main Cars page and secondary New Cars page. First looks can also be found in the model overview pages (available to online subscribers) until they are replaced with a final road test.

--Liza Barth

Personal Picks: Scooters and motorcycles

Summer has arrived, bringing with it warm days and elevated gas prices—conditions that make riding a scooter or motorcycle more appealing. If you are looking to buy your first two-wheeler, there are many things to consider, such as licensing, safety, and model choice. See our scooter and motorcycle report for buying advice, ratings, and safety information. 

For our report, we tested several small scooters (50cc), large scooters (125-150cc), and motorcycles (250cc). We have to confess, the staff enjoyed donning helmets and riding these bikes on our track and real-world streets. Through the process, everyone learned something about entry-level bikes and which they would choose.

Here’s we share personal picks from the test and editorial staffs.

Eric Evarts: There’s no question, the Kawasaki Ninja 250 is great fun to ride. Corners feel invigorating, as you lean the bike into turns, crouched over the handlebars. The little engine screams to redline, which comes up in a flash. And the brakes haul you down like you rode through glue. Best of all, the Ninja costs less than some of the scooters we tested.

For me, though, the best use of a motorized two-wheeler is in not taking a 3,500-pound car on simple, local trips to town for shopping and other errands. And for that, a scooter would work a lot better (providing your errands don’t include a week’s worth of groceries for a family of four). They have a lot more storage space, plus the easy step-through seating and lack of manual gear-shifting makes riding a lot easier. And by far the best scooter of the bunch is the comfortable and capable Kymko People. Its big wheels mean not every pothole is a menace, and it responds more like a motorcycle in curves.

It’s an axiom around here that riding a scooter makes everyone look like a dork. And that may be true. But if we could just man-up the Kymco’s color a little bit, it could feel a bit more righteous, rather than embarrassing.

Mike Leung: The Kymco People was the only scooter I’d consider of the group we tested. It was quick enough, went fast enough and felt the most stable in a corner (I’d remove the kickstand that scrapes on hard cornering, though). Plus, I’d choose a different color.

The Vespa 150 was nice enough in terms of comfort, but its cost is prohibitive and the performance was sub-par for that price tag.

The Honda Ruckus would be good as a pit vehicle at the race track.

Gene Petersen: A lot of people consider purchasing a scooter to save on fuel, but with overall mileage of many being not much better than a hybrid car, I wonder if they make sense. Still, if you’re going the scooter route, there are only really two that we tested that can be used for practical transportation: the Kymco People 150 and Vespa LX 150. Both feel substantial enough to ride securely around town and have just enough power to keep up with the flow of traffic typical of city and suburban roadways. I like the Kymco over the Vespa for its lower leg reach to the ground when at a stop, and the larger wheels bridge over cracks in the road to make for a smoother ride.

Before giving up four wheels for two, I think that anyone considering a scooter should take a scooter/motorcycle safety course.

Mike Quincy: I’ve had a great time getting reacquainted with two-wheeled motorized transportation. Like many, I used to ride but got sidetracked by houses, kids, and getting older. I’m glad to be back.

I like the classic looks of the Vespas we tested, but I can’t get past the price. Over $4,000 for the LX 150? You’ve got to be kidding. These things are supposed to save money.

I think if I spent the summer on Block Island, Martha’s Vineyard, or Nantucket, I’d get a Honda Ruckus. It seems nearly indestructible, has a classically-Honda smooth engine, and a no-nonsense attitude. I’d get it dirty, leave it out in the rain, ride it on the beach, and not worry a bit.

But for all-out fun, nothing comes close to the Kawasaki Ninja 250. It’s so unbelievably easy to ride and more comfortable than it looks. It could be the best bang-for-the-buck of anything with wheels and an engine.

Gabe Shenhar: As a former motorcycle rider, I came in to this test with the notion that scooters are by definition inferior to motorcycles. But now, after testing a bunch of scoots and as a middle-aged man, I discovered that scooters can be fun, a whole lot easier to ride and yet without hurting one’s masculinity. (Ahem – Ed.) They are easy to get on and off, have an upright riding position, under-seat storage, and their CVT automatic transmissions work well.

So with all the sex appeal of motorcycles, for me it’s “been there – done that.” Among the scooters we tested, we were quite surprised with how well the Kymco performed – quick, quiet, stable and sparing with fuel, but I could never see myself on one because it is just sooo ugly. That leaves only the Vespa LX 150 as a viable option – it’s quick enough, comfortable with a just-right riding position, wide and comfy suede seat, and of course, its classic charm.

Jim Travers: I’ve always felt more at ease and in control on motorcycles than scooters. Some may find the high, chair-like seating position of scooters more comfortable and their step-through frames easier to get on and off, but I’ve always felt like I’m perched high atop a scooter, rather than being an extension of it. You use your legs and body to help lean and control a motorcycle much more than you can a scooter, and a motorcycle’s larger wheels and tires add to that feeling of stability.

That said, my pick is the Kawasaki Ninja 250, hands down. The frame fits my own 6’2” frame much better than the Honda Rebel, and the ride is surprisingly comfortable. The Ninja is nimble, with precise handling, and the brakes are terrific. And there’s something about running the sporty, affordable Ninja up through the gears to that 13,000-rpm redline that never gets old. All this, and decent fuel mileage, too.

July 4th deals make some new cars cheaper than buying used

There’s no shortage of sales incentives available on new cars these days. And by comparing deals you can find some new vehicles that are as affordable as late-model used versions. In some cases, you can even buy a new car for less than a one-year-old model, when considering purchase price and interest on a five-year loan. For example, when we looked at Honda’s special low-interest financing offer, available through the 4th of July weekend, we found that a new 2009 Honda Accord LX-P would cost less and have lower monthly payments than a similar used 2008 model. The 2009 Accord would have monthly payments of $308 vs. $314 for a 2008 model, which would save you about $340 over five years. The offer is in conjunction with a dealer sales incentive of $1,500.

Similarly, you could save $13 a month, or $815 over the life of the loan, by buying a new Honda Odyssey instead of a used 2008 model. And a new Acura RDX SUV could save you almost $10 a month, or $600 over the five-year loan term, compared with a 2008 version. The new Odyssey and RDX also include dealer sales incentives of $2,500.

In some cases the price of a new car with interest isn’t much more than that of a similar two-year-old car. For example, a new 2009 RDX would cost just $555 more to buy over five years than a two-year-old RDX with 24,000 miles on it. A Chevrolet Silverado 1500 Crew Cab Pickup would cost just $38 more a month than similar a used 2008 model, or a total of about $2,300 over five years.

If you’re cross-shopping between new and used cars, you could make similar comparisons yourself by using the calculators in the “Car Buying Advice” section.

Usually, buying a late-model used car is a better overall value than buying a new one. But with a new car, you don’t have to worry about how the car has been maintained. And having the benefit of the full new-car warranty gives you greater independence from repair bills for at least three years, and longer with many automakers.

Moreover, you can take advantage of new government programs when buying a new car right now. For instance, you can deduct any state and local motor-vehicle sales taxes. And if you’re driving an old gas-guzzler and don’t mind waiting until July 23, when the Car Allowance Rebate System (aka “cash for clunkers” bill) takes effect, the savings from buying a new car could be even greater. Neither program covers used-car purchases.

It’s important to remember that any deal is only as good as the vehicle you're buying. We recommend that you thoroughly research the performance, reliability, safety, owner cost, and owner satisfaction of any model you're considering. Subscribers to ConsumerReports.org have access to our Ratings in all of those areas.

As mentioned, these calculations are based on a model’s purchase price and financing interest. ConsumerReports.org subscribers can also compare a model’s total owner cost for 3-, 5- and 8-year periods. Our owner-cost estimates include depreciation, fuel costs, insurance, interest, maintenance and repair, and sales tax.

All our calculations assumed vehicle financing for a 60-month term and 10% down payment. We used average new- and used-car financing rates from Bankrate.com, except where manufacturers offered lower rates on new cars that would be readily available to consumers. Used car retail values assumed average mileage of 12,000 miles driven per year.

You can get the latest retail and dealer incentives in Consumer Reports’ New Car Price Reports or through the New Car Buying Kit. These also include CR’s Bottom Line Price, which factors in the dealer invoice price and any incentives and holdback amount to give you a good starting point for your negotiations. This frees you from relying on the word of the salesperson for the best price. For used car values, check out CR’s Used Car Price Reports.

		Price			Monthly payments			Total 5-year cost
Model name	MSRP	New CR Bottom Line Price	2008	2007	2009	2008	2007	2009	2009	2009
Acura RDX	$33,895	$28,457	$26,600	$25,675	$470.52	$479.95	$461.26	$28,230.97	$28,796.89	$27,675.53
Chevrolet Silverado 1500 4x4 Crew Cab	$34,295	$31,689	$24,800	$22,825	$475.34	$437.05	$397.15	$28,520.40	$26,223.00	$23,829.00
Honda Accord LX-P	$21,905	$18,641	$17,400	$13,825	$308.22	$313.90	$241.67	$18,492.94	$18,833.88	$14,499.97
Honda Odyssey EX	$29,455	$24,313	$23,000	$20,250	$402.00	$415.58	$360.02	$24,119.89	$24,935.04	$21,601.27
Toyota Prius base	$23,375	$22,040	$17,625	$16,025	$355.55	$311.58	$279.25	$21,332.77	$18,694.58	$16,754.94
Toyota Tacoma  4x4 Access Cab V6 5AT	$25,475	$23,916	$21,100	$20,500	$395.43	$378.00	$365.87	$23,726.04	$22,679.84	$21,952.47

Note: All financing calculated on 60-month term with a 10% down payment. Honda special finance rates good through July 6. Used vehicle financing using average from Bankrate.com of 7.206%. We assume used vehicles have been driven 12,000 miles per year.

Cash vs. low-interest financing
Sometimes automakers offer consumers a choice of incentives between a cash rebate or a low financing rate. You should calculate the purchase both ways to see which would give you the better deal.

When we looked at current incentives offered on two Toyota models, for instance, choosing the low-interest financing rather than a rebate could save more than $1,000 over the course of a five-year loan.

For the Prius hybrid, buyers can choose between $1,000 cash back or 2.9-percent financing for the Prius hybrid. Choosing the financing would save $19 a month, or $1,150 over five years compared with taking the cash back.

On the Tacoma compact pickup, buyers can choose between $750 cash back or 3.9-percent financing. Taking the lower interest rate would yield a savings of $18 a month, or $1,070 over five years.

Model	Incentive	MSRP	Down payment	Cash incentive	Interest rate	CR bottom Line Price	Monthly payment	Total 5-year cost
Toyota Prius base	financing	$23,375	$2,204	$0	2.90%	$22,040	$355.55	$21,332.77
	cash			$1,000	7.19%	$21,040	$374.71	$22,482.43
Toyota Tacoma Access Cab 4x4 V6 5AT	financing	$25,475	$2,391.60	$0	3.90%	$23,916	$395.43	$23,726.04
	cash			$750	7.19%	$23,166	$413.26	$24,795.73

However, leaving the cash on the table would mean you may have to come up with more money up front, for taxes at least, and possibly a larger down payment if your bank bases the down payment on a percentage of the loan amount.

Either way, this summer looks like a great time to get a good deal on a new car. If your old one leaves you wondering whether you’ll ever make it to work and back every day, a reliable set of wheels could mean real freedom over this Independence Day weekend.

--—Eric Evarts