GM Employee Discount - Is it really a good deal?

Automakers and dealers are anxious to sell 2008 models and make way for the 2009s. With car and truck sales down and the end of summer fast approaching, we have seen a wide range of sensational incentives advertised, from traditional rebates to buy-one-get-one offers. Among the hyperbole-laden ads, General Motors’ Employee Pricing for Everyone has attracted much attention, resurrecting a previously successful strategy.

The idea is simple: give the public the same price on cars offered to employees. Rather than a complicated matrix of incentives, this boils down an enticing offer into a tidy sound bite. But is it a good deal?

How it works
The Employee Discount for Everyone is available at participating Buick, Chevrolet, Cadillac, GMC, Hummer, Pontiac, Saab, and Saturn dealers on virtually all remaining 2008 GM vehicles in stock. In addition, a few 2009 models are eligible, including the Chevrolet Cobalt and HHR; Pontiac Vibe and G5; and Cadillac CTS. (Of these 2009 models, only the HHR meets our standards to be Consumer Reports recommended. We do recommend several 2008 GM models.)

The program started on August 20 and runs through the Labor Day weekend to September 2, 2008.

Shoppers can look on the various GM-brand Web sites to check the Employee Price or at GM.com. Both retail (MSRP) and Employee Price are listed for comparison, along with additional national and regional customer-cash rebates. At dealerships, special stickers present this same information.

What is the value of the deal?
For our report on "Driving a great, end-of-summer new car deal," Consumer Reports Auto Price Service tracked 2,014 national incentives across all vehicle variations this month. Since large trucks and SUVs are stuck in a sales downturn (no surprise considering the gasoline prices these days), we found that the size of the incentives often varies in direct proportion to the size of the vehicle. For example, Hummer has the highest average combined customer and dealer incentives per model at $5,400. (For a complete breakdown, read "New car incentives by brand.")

To assess the Employee Pricing program, we ran the numbers on several vehicles, comparing informed negotiation against advertised employee pricing. In these examples, we found the Employee Pricing to be a good deal.

For the analysis, we pitted the advertised GM offers on sedans, SUVs, and pickup trucks, against the Consumer Reports Bottom Line Price (which factors invoice price, rebates, hidden dealer incentives, and dealer holdback) then added a slim 2-percent dealer profit. For these example models, we found the Employee Pricing to be, on average, $345 better than traditional negotiation.

The example below illustrates how the GM Employee Discount for Everyone pricing compares to aggressive negotiation. The GMC Acadia is a Consumer Reports-recommended vehicle.

GMC Acadia AWD SLE-1

Traditional negotiation		GM Employee Discount
MSRP*	$32,885	MSRP*	$32,885
Invoice	$30,060	GM Employee Price	$29,981
Bottom Line Price	$28,330	Customer Rebates	$1,500
Estimated Sale Price	$28,897	Sale Price	$28,481
Savings against MSRP	$3,253	Savings against MSRP	$4,404
Savings against MSRP	10%	Savings against MSRP	13%

* Includes destination charges

Bottom line
As this analysis revealed, there are indeed good end-of-summer deals to be had on new cars. With any car purchase, it pays to check the numbers to see if they add up to a good deal and to reveal what potential there may be for further negotiation.

Driving a hard bargain is only one part of the equation. Remember, a great deal on a bad car is no deal at all. Focus first on creating a list of good, safe, reliable cars with average or better projected owner costs (a quick process using our New Car Selector). Then look to reading road tests, taking test drives, and reviewing the numbers.

We maintain a list of Best New Car Deals on CR-recommended models that can highlight standout national offers. To truly arm yourself for negotiation, a complete pricing and incentive breakdown is available in our new- and used-car price reports.

—Jeff Bartlett

New car incentives by brand

Turn on the television or open a newspaper, and your senses will be assaulted by automotive advertisements featuring sensational pitches in an effort to clear the 2008s from dealer lots and make way for the 2009 models. Amid all the noise, analysis conducted by Consumer Reports Auto Price Service shows that there are many good deals available. However, just as not all cars are built equally, nor are the deals.

In "Driving a great, end-of-summer new car deal" we present our findings on available incentives offers across vehicle classes, the GM Employee Discount for Everyone pricing program, and offer advice for getting the most for your money. Here, we will share additional insights to empower, and perhaps inspire, your new-car shopping.

Current new-car incentives by brand
This month, we tracked 2,014 national incentives across all vehicle variations. As expected, incentive availability and scale vary by category, with premium and gas-guzzling models having the grandest offers in general. But, we also see significant differences by brand.

For the list below, we focused on the combined customer cash and direct-to-dealer incentives available nationwide. Specific regional offers are possible, as are dealer and dealer group promotions. Several omitted brands show no national rebates, though they may offer special interest rates and/or lease offers. The figures were rounded to the nearest $100.

Brand	Average incentive
Acura	$1,500
Buick	$400
Cadillac	$2,100
Chevrolet	$1,300
Chrysler	$2,700
Dodge	$3,300
Ford	$3,700
GMC	$1,800
Hummer	$5,400
Hyundai	$1,900
Jeep	$2,300
Kia	$1,800
Land Rover	$4,100
Lincoln	$4,500
Mazda	$1,300
Mercedes	$4,100
Mercury	$1,600
Mitsubishi	$2,000
Nissan	$3,000
Pontiac	$700
Saab	$2,400
Saturn	$600
Suzuki	$1,300
Toyota	$1,500
Volkswagen	$400

When seeking the best deal possible, consult our vehicle ratings and Bottom Line Price, which factors invoice price, rebates, and dealer holdback. Armed with all the data, you will be better prepared to negotiate a great price on a great car.

—Jeff Bartlett

Safe! - Acadia, Enclave, Outlook, Traverse top safety picks

The Insurance Institute for Highway Safety has awarded the Buick Enclave, Chevrolet Traverse, GMC Acadia, and Saturn Outlook its Top Safety Pick designation for exemplary performance in frontal offset, side, and rear crash tests. To be eligible for this distinction, a vehicle also has to have standard stability control.

These corporate siblings are highly rated by Consumer Reports. We liked their combination of ride, handling, smooth powertrain, and space efficiency. With these new crash-test results, the Acadia and Outlook now earn our top-level recommendation, which means they performed well in CR's tests and have average or better reliability. The Enclave is not recommended because we do not have adequate reliability data yet. The Traverse goes on sale in the fall.

The Acadia and its siblings received top scores in the Institute’s frontal-offset  and side crash tests, and also received top marks for whiplash protection based on the design of their head restraints. The Institute provides a detailed breakdown, rating injury measures for head/neck, torso, leg/pelvis, overall head protection, and structure/safety cage. In all instances for front and side, these SUVs earn the Institute’s highest rating of good.

The National Highway Traffic Safety Administration (NHTSA) also awarded the vehicles five stars in both their front- and side-crash tests. The NHTSA evaluations are less severe than those performed by the Insurance Institute, but they are considered a valuable measure of safety belt and air bag performance.

The vehicles scored four stars in rollover resistance in NHTSA’s test of rollover propensity, a good rating for an SUV.

Learn more about how the Institute and NHTSA perform their evaluations in “Crash Test 101.” And see the tests in action by choosing from the more than 250 crash test videos produced with IIHS.

—Eric Evarts

Garmin lowers GPS prices, discontinues some models

In the fast-moving portable GPS navigation market, the one constant is change. The latest move comes from Garmin, who has trimmed its car navigation line by retiring several, well-rated models including the Nuvi 350, 360, 370, 650, 660, and 670.

The Nuvi 660 is a CR Best Buy at $350. A premium, full-featured device, the Nuvi 660 combines performance and portability with most available features, and it is a good choice for power users who can truly take advantage of its rich feature set.

Despite their early retirement, you’ll likely still find these models for sale—at least for a while—in stores and online, possibly even at discounted prices .

And speaking of discounts, Garmin has lowered the price of two other Nuvis: the 750 ($399 from $500) and the Nuvi 780 ($599 from $700).

Be sure and check out our GPS Ratings (available to online subscribers), which are bigger and better than ever. We recently tested nine new GPS devices (including the Garmin Nuvi 205, Nuvi 205W, Nuvi 255, Nuvi 255W, Nuvi 880). We also updated how our Ratings are scored and displayed to better represent the factors that matter most to users, informed by a recent survey of over 2,000 GPS users, feedback on our Cars blog, forums, and user reviews. (Turns out, we’ll be updating our pricing soon to reflect this latest news.)

Garmin has also just announced their roll-out of seven new Nuvi GPS models. We’ll be posting more on this soon.

—Desiree Calamari

Cost of an oil change, value of car maintenance

The value of proper car maintenance is priceless, but the costs may be rising. I recently went to my local service station to get an oil change and when I went to pay the bill, I was surprised by the price. Just a few weeks prior, I had brought in my other four-cylinder car and it was $7 cheaper. The attendant explained that the price difference was due to the high cost of motor oil. From posting the weekly gas prices, I am intimately familiar with the price fluctuations and have been feeling the pain at the pump like all motorists. It was only a matter of time before it was reflected in an oil change, though it surprised me that it occurred over such a short time period.

A colleague who also just had an oil change performed reported prices at his shop hadn’t increased. Perhaps I picked the wrong shop, or it may be a sign of things to come. (Share your recent experiences in the comments below.) Given the dramatic rise in crude prices, it makes sense that petroleum-based products would see their prices increase, though many service centers may struggle to minimize the consumer impact due to competition and drive to upsell other services.

At any cost, oil changes are a critical part of maintaining your vehicle. For normal driving, many automakers recommend changing the engine oil and filter every 7,500 miles or six months, whichever comes first. This is sufficient for most passenger vehicles. For "severe" driving—with frequent, cold starts, short trips, dusty conditions, or trailer towing—the change interval should be shortened to every 3,000 miles or three months. (Check your owner’s manual for the specific intervals and oil weight recommended for your vehicle and use.) Special engines such as diesels and turbocharged engines may need more-frequent oil changes.

Another important maintenance check is tire pressure. Under-inflated tires compromise handling and braking, wear faster, and reduce fuel economy. Plus they run much hotter, which can lead to tire failure. In our tests of a Toyota Camry, we experienced a 1.3 mpg loss in highway fuel economy when the tires were under-inflated by 10 psi. To find your vehicle’s correct tire pressure, look for the placard on the inside of the driver’s side door. The inflation pressure listed on the sidewall of the tire is the maximum inflation pressure but is not the recommended inflation for the vehicle. Stick with the recommendation for the vehicle—it is designed to provide the best interaction with suspension components of a car for the best balance of ride and handling.

By filling tires to the maximum listed on the sidewall, it could adversely influence handling, as it would tend to pull the edges of the tire off the pavement. In other words, you would reduce the amount of rubber on the road. As you round the tire by adding additional air, you may also see an adverse consequence on wear, since it will tend to wear the center of the tire more quickly than the edges (shoulder).

Take the time to check inflation pressures monthly (including the spare), particularly where there are larger seasonal temperature differences or before long trips.

Even though you are spending more at the pump, don’t forget that regular maintenance of your vehicle can save you money on vehicle repairs and keep it in running smoothly for many years to come.

For more information on vehicle and tire maintenance, see our tires and car care section.

To find out how your car costs to own and operate over time, see our report on the cost of vehicle ownership.

—Liza Barth

Personalize your Garmin GPS - Follow that burrito!

Not to be outdone by TomTom's choice of celebrity voices to personalize their portable GPS navigation devices,  Garmin offers an increasing variety of vehicle icons to replace the generic car used to identify your position on their units. They are available as free downloads from the company's Web site. 

Choices range from ones you might expect, like sports cars, racers, and motorcycles, to others you might not. Like images of food.

You can choose an image that might look a little more like your own car, minivan, or truck. The Highway Hauler, for example, is an SUV. Come holiday season, you can download the version with a freshly cut tree on its roof, and it becomes the Holiday Hauler. A summer seasonal option is a heavily loaded station wagon bearing a remarkable resemblance to the Family Truckster from "National Lampoon's Vacation," right down to the wood paneling. Cue that one up for your family's own big adventure.

An impressively accurate vintage Winnebago might appeal to motor home pilots, and the modified Jeep CJ looks ready for the Rubicon trail. For truckers or long-haul wannabees, a big rig is available. Icons for various emergency vehicles let you give yourself your own police escort, or chase your own ambulance. For those who'd rather be flying, as many of us would when stuck in traffic, a variety of aircraft are offered. 

And then there's the stuff you might not expect. My personal favorite is the burrito. Yep, as in foil-wrapped, takeout food. Like an edible beacon, the burrito now proudly leads the way on our Nuvi 205W, turning one way and another in appetizing fashion. Not in the mood for Mexican? Download the slice of pizza instead.

In case you're wondering, no formal testing is planned to determine the impact of an eternal burrito or slice o' pie on our waistlines, but I'm thinking it can't be good. 

Pirates of the Caribbean fans can choose the pirate ship Black Pearl, available right side up or upside down. Now, I don't have a problem with someone who chooses to get their guidance from a fictitious pirate ship, capsized or otherwise. But those who opt for the cannon icon are another story. Motorists who like to follow an image of a large, deadly weapon while finding their way to Grandmas, the big box store, or wherever might have some serious road rage issues - but probably not as many as those who choose the tank.

There is an impressive selection already, with many icons tied in with specific Garmin marketing campaigns, such as NASCAR racing, and a group for a whimsical winter. Browsing the selection has had us joking about the possibilities for future choices. A cute little bunny...a nuclear submarine...a road-line-painting truck...Pac-Man...

Would you install custom guidance icons on your GPS device? And what would you like to see for choices?

As for me, I installed a variety on the Nuvi 205W, but I'm sticking with the Burrito of Guidance.    

—Jim Travers

For more information on portable GPS navigation systems, see our Ratings and buying advice and watch our video guide. Discuss GPS devices in the forums.  

Average gas prices--August 25, 2008

Gas prices decline significantly from last week.

National retail fuel price averages

Price

Change from last week

Regular gasoline/gallon	$3.69	↓ .06
Diesel fuel/gallon	$4.15	↓ .06

Regional regular gasoline prices

Price

Change from last week

East Coast	$3.63	↓ .07
-New England	$3.66	↓ .07
-Central Atlantic	$3.67	↓ .06
-Lower Atlantic	$3.60	↓ .07
Midwest	$3.69	↓ .02
Gulf Coast	$3.52	↓ .08
Rocky Mountain	$3.83	↓ .05
West Coast	$3.91	↓ .07
-California	$3.96	↓ .08

Source: Energy Information Administration, 8/25/08

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

Gas prices decline significantly from last week.

National retail fuel price averages

Price

Change from last week

Regular gasoline/gallon	$3.69	↓ .06
Diesel fuel/gallon	$4.15	↓ .06

Regional regular gasoline prices

Price

Change from last week

East Coast	$3.63	↓ .07
-New England	$3.66	↓ .07
-Central Atlantic	$3.67	↓ .06
-Lower Atlantic	$3.60	↓ .07
Midwest	$3.69	↓ .02
Gulf Coast	$3.52	↓ .08
Rocky Mountain	$3.83	↓ .05
West Coast	$3.91	↓ .07
-California	$3.96	↓ .08

Source: Energy Information Administration, 8/25/08

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

Preparing to drive back to school

The summer season is coming to an end and it's almost time to go back to school. For some students that means packing up the car and heading out on a road trip to campus. Here are some tips to help you pack smartly and prepare your car for the journey.

Put the heaviest items up front
Make sure the heaviest items are put as far forward in the cargo area as possible, and keep them on the floor. In all vehicles, and SUVs in particular, it is important to keep the heaviest items toward the center of the vehicle. This reduces the potential adverse effect on handling that could be caused by the cargo weight; significant weight at the back could compress the rear springs and reduce the weight over the front wheels, impacting steering and braking. Further, this strategy helps keep the overall center of gravity lower, reducing the likelihood of a rollover.

Secure loose items
To prevent cargo from flying around during a sudden stop, pack smaller items into boxes and strap down larger ones using the car's cargo anchors. Secure in the cargo section to prevent them from striking passengers in an emergency situation. Refrain from loading large items—or even small, loose items—on the top of your cargo pile, as these can become dangerous projectiles in a panic stop or a crash.

Rear visibility is important
Make sure that you don't stack your belongings so high that you can't see out. An obscured rear window makes driving difficult and creates considerable risk when reversing.

Keep essentials handy
Keep a roadside emergency kit, cell phone, and maps or portable GPS system accessible. An emergency kit should have a few basic items such as a first aid kit, fire extinguisher, flares, and a flashlight. See our report on emergency kits for more information on what to keep with you.

A cell phone is also useful for an emergency, but make sure you pull over to a safe location before you make a call as to not get distracted on the road. Also, pack a cell phone charger as well. Check out our cell phone Ratings if you’re looking for a new model.

For more information on preparing for the new school year, see our back to school guide.

—Liza Barth

Preview: 2009 Honda Fit

We’ve been looking forward to driving the new Honda Fit since we first saw it at the New York Auto Show last March. We liked the old one, and this one addresses some of the complaints we had before, such as the driving position. (It now has a tilt-and-telescoping steering wheel.)

Now Honda has released a few more details on the new Fit, including pricing and features. First, the bad news: The base price went up about $600 and a top-of-the-line Fit, which includes a built-in navigation system, is almost $19,500. The good news is that you get more features for the price.

Notable new features include a USB jack to control an iPod from the Fit’s stereo, 10 cup holders, and rear seats that are easier to fold.

We had been looking forward to electronic stability control becoming available on the new-generation Fit. It is available, but only as part of a $1,850 option package that includes a navigation system. That is a steep price to pay to get a proven safety device, especially for buyers who would rather use an aftermarket navigation system or would prefer the simplicity of the standard radio controls. We think this feature should be available a la carte, especially on base models that may appeal to younger, less-experienced drivers.

After a brief drive of a preproduction car at a New York event sponsored by Honda, our initial impressions from is that the Fit has grown up somewhat. It sounds quieter and more refined, and is certainly more comfortable to drive.

The engine is now rated at 117 hp, up from 109, which feels like just enough to compensate for the new model’s extra two inches of length and 44 pounds. EPA fuel economy ratings remain at 31/38 for the automatic transmission, but drop 1 mpg for the manual transmission due to slightly lower gearing.

The 2008 Fit is now sold out, according to Honda. The new model goes on sale August 26th, and widespread availability is expected by mid-September. We’re looking forward to conducting a complete test on a production example. In the meantime, we still think the new version will likely fit the needs and budgets for a lot of people.

—Eric Evarts

Updated 8/22/08.

Small SUV crash tests - New Top Safety Picks

The Insurance Institute for Highway Safety (IIHS) has named six small SUVs Top Safety Picks: the Volkswagen Tiguan, Mitsubishi Outlander, Ford Escape, Mazda Tribute, Mercury Mariner, and Nissan Rogue.

To qualify for this accolade, the six got the Institute's top rating of Good in offset frontal and side crash tests, plus an evaluation of rear crash protection. They also all offer electronic stability control as standard equipment. The Mercury Mariner and the Mazda Tribute are twins to the Ford Escape; the test results also apply to the hybrid versions of these models.

The Honda CR-V, Honda Element, and Subaru Forester are also Top Picks in this class based on earlier tests.

IIHS rates cars in an offset frontal crash that is more severe than U.S. government crash test standards and more closely mimics real-world accidents. Side crash tests are conducted to simulate a vehicle being hit in the side by a tall, heavy SUV. Vehicles are rated on a scale of Good, Acceptable, Marginal, and Poor. (Learn more in "Crash Test 101.")

Other small SUVs, including the Suzuki Grand Vitara, Jeep Patriot, Chevrolet Equinox, Pontiac Torrent, Jeep Patriot, and Jeep Wrangler received lower grades in one of the crash measures. The Wrangler offered Poor protection in a side crash when tested without its optional side air bags.

If you're in the market for a small SUV, we recommend you look for one that has Good crash scores from both the IIHS and the government, as well as one that performed well in our testing and has good predicted reliability.

Of the IIHS Top Picks, we recommend the Honda CR-V and Element, Mitsubishi Outlander, and Subaru Forester. The Forester is our Top Rated small SUV.

Read our recent Small SUV and Sporty SUV tests covering many of the models featured here, including the Tiguan featured in the embedded CR road test video. Crash test videos based on the latest tests will be posted next week.

View more than 250 crash test videos.

—Eric Evarts