Hyundai gas promotion

Last summer, when gas prices hit $4 and higher, consumers flocked to more fuel-efficient vehicles. So manufacturers of less fuel-efficient vehicles began using gasoline as an incentive to help drive sales. Fortunately, gas isn’t expected to reach last year’s level and this week it is averaging $2.64 a gallon, $1.45 below the price this time last year.

Still, Hyundai figures almost-$3 gas is high for consumers during the busy summer driving season and is now offering a program that will lock in the gas price at $1.49 a gallon for a year on most Hyundai models leased or purchased between July 1st and Aug. 31st.

The program will be standard on new Accent (excluding the base model), Tiburon, Elantra, Elantra Touring, Entourage, Sonata, Azera, Santa Fe, Tucson, and Veracruz models. Two of these models are discontinued for 2010 (Tiburon and Entourage). Some are also eligible for the $3,500 or $4,500 government CARS program (Cars Allowance Rebate System).

After purchasing a new vehicle, new Hyundai owners need to register their credit card online to enroll in the program and receive the Hyundai gas card. The card can be used in about 93% of gas stations nationwide. Consumers can purchase a maximum number of gallons equal to 12,000 miles divided by the EPA combined mpg for that vehicle.

For more details visit Hyundai.com.

Check out our new car selector to see our Ratings on Hyundai vehicles.

--Liza Barth

"New GM" will cover future product-liability claims, but not pending ones

After the Chrysler bankruptcy left consumers without recourse to the company for potential product defects, GM had originally sought a similar outcome for itself. But under pressure from the government and consumer groups, GM has now agreed to stand behind product liability claims for all GM cars and trucks that are filed after the company emerges from bankruptcy, according to court documents (PDF).

Left behind in the new agreement are consumers who have existing liability claims against GM that were pending before the automaker filed for bankruptcy. Many of these consumers have been left as the most vulnerable members of society as a result of car accidents or incidents allegedly caused by defects in GM vehicles. Among the 300-some claimants are quadriplegics and catastrophically injured children, says Sean Kane, CEO of Safety Research and Strategies of Rehoboth, Mass.

In GM’s initial bankruptcy filing, the company planned to abandon these claims.

Bankruptcy law is designed to allow companies to eliminate debt, paying off little or none of it. In most cases, however, these debts are to investors and banks that loaned the companies money. There have been few other cases in which consumers who have suffered catastrophic injuries are listed among the company’s creditors and may be left with little or no recourse to compensation for their claims.

The new agreement was reportedly reached in conjunction with the Obama administration’s Autos Task Force to expedite the company emerging from bankruptcy. It is part of a revised purchase and sale agreement which also deals the claims of other creditors. GM is now expected to emerge from bankruptcy in a matter of days. Hearings begin today to begin approving the sale of GM’s “good assets” to the new company.

Consumer advocacy and safety organizations are lobbying to have consumers with existing product-defect claims against GM covered by the new GM. Safety Research and Strategies estimates that 35 percent of all death and injury claims reported to the National Highway Traffic Safety Administration involve GM cars and trucks.

Meanwhile, a bill, called the “Jeremy Warriner Consumer Protection Act of 2009,” has been introduced in the House of Representatives that would require GM and Chrysler to carry insurance that would cover accident victims who win judgments against the companies. Warriner is a paraplegic who lost his legs in a fire when he was pinned in his Jeep Wrangler after a side collision. If passed into law, this could help people with pending claims.

—Eric Evarts

August issue road tests: Wagons & hatchbacks

For our August issue test group, we tested hatchbacks and wagons. These vehicles are good alternatives to small SUVs. They offer better fuel economy, have a sedan-like ride, and flexible cargo-carrying capabilities.

The full road tests from the magazine (available to subscribers), have been posted online, along with videos of some of the models hosted by our automotive experts. These videos highlight the strengths and weaknesses of the vehicles, bringing the road tests to life.

For this month’s group, we looked at the Chevrolet HHR, Hyundai Elantra Touring, Kia Soul, Mazda3, Pontiac Vibe, and Volkswagen Jetta. Plus, we also feature the newly introduced Honda Insight hybrid, which gets 38 mpg overall.

In the September issue we’ll report on family sedans, including the Kia Optima and Ford Fusion and Fusion hybrid.

Ratings for all of the hatchbacks and wagons we have tested can be found with our dynamic New Car Selector tool.

Perils of being an auto tester

Returning home from an evening walk with the family, an oncoming car slowed down at it approached us: a 2009 Toyota Camry. I didn’t recognize the sedan as belonging to anyone I know. Then it stopped, the driver’s window motored down, and I immediately see it is one of my neighbors. Before I can say a word he says, “Gene, thank you for recommending the Camry. The previous Camry that I bought based on your recommendation was absolutely reliable just like Consumer Reports said it would be. I put over the 250,000 miles on that car over the last eight years, and it never let me down. So I bought another Camry. Thanks again, Gene, I really appreciate the advice.”

After some small chit-chat, the neighbor drove away. My wife and son think I’m “The Man” for giving out such great advice. I must admit I felt pretty good, too.

We continued walking toward our home when a Honda Odyssey passed us and cut into a driveway. It’s another neighbor, and I can see the mother is remotely opening the passenger-side power sliding door to let in her daughter. The retracting door caught my eye; it was binding on the track as it opens. I heard it scraping against the body-side of the car. I tried to walk by quietly, but then I saw the mother peering out from the rear-view mirror. She saw me. I think that I’m only a heartbeat away from being busted.

As I passed the driver’s side of the car, she opened the door and yelled to me, “Gene, did you see that door open? It’s scraping a gash across the rear panel of the car. I thought you said the Odyssey was a reliable, recommended minivan? That’s the last time I listen to you.” I tried to reply quickly that Honda did have some reliability issues with power doors, but that is not what she wanted to hear. She backed out quickly and was gone before I can get another word out.

My witty wife looked at me and said, “You’re an idiot. From now on, you take your walks alone and don’t give anyone in the neighborhood car advice.”

Yep, in less than five minute I went from expert car guy to just another chump. Such is life. Consumer Reports performs extensive testing and research on cars, though anecdotal problems do occur that defy our results and survey ratings. Hopefully we are making more people satisfied buyers than not.

As for me, I think I will buy a treadmill. Anyone have any advice on a good model to buy?

—Gene Petersen

Average gas prices--June 29, 2009

Fuel prices across the board are down compared against the week before. The national gasoline average is now about a $1.45 below the price this time last year. Diesel fuel is $2.04 below this time last year.

National retail fuel price averages

Price

Change from last week

Regular gasoline/gallon	$2.64	↓ .05
Diesel fuel/gallon	$2.61	↓ .01

Regional regular gasoline prices

Price

Change from last week

East Coast	$2.63	↓ .03
-New England	$2.67	↓ .02
-Central Atlantic	$2.62	↓ .02
-Lower Atlantic	$2.60	↓ .04
Midwest	$2.57	↓ .09
Gulf Coast	$2.52	↓ .05
Rocky Mountain	$2.60	0
West Coast	$2.91	↓ .02
-California	$2.98	↓ .02

Source: Energy Information Administration, 6/29/09. 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.

Personal Picks: Small cars

With all the doom and gloom news dominating the airwaves these days, it’s good to know that there’s a new, small car that really blew us away...and it doesn’t cost a fortune. For about $17,000, the manual transmission Honda Fit goes from 0-60 mph in under 10 seconds, holds five people (or lots of cargo) and still gets 33 mpg overall. Remember the “economy” cars of the 1980s? While several got terrific fuel economy, none were as comfortable, fun to drive, or as safe as the Fit. It does so many things well, the Fit is the answer to many buyers’ needs.

As gas prices continue to climb, more and more people may retreat to smaller, more fuel-efficient cars. All of the other fuel-thrifty models in this test group--the Chevrolet Aveo, Nissan Versa, Suzuki SX4, and Toyota Yaris--were competing for second place.

But vehicle choice is a personal one, and here are our staff picks:

Mike Quincy: The Smart ForTwo sparks more conversation than just about anything I’ve driven in the last 10 years. But when people ask me about the diminutive design, I immediately bring up the Honda Fit. I’ve repeated these lines so many times: For about the same money as the Smart, the Fit is immensely more fun to drive and easier to live with. The Fit is faster, has superior steering, loads more cargo room, and only gives up 6 mpg overall. I don’t hate the Smart, but there’s no way I’m buying one over a Fit. Finally, what puts the Fit over the top for me is the relationship between its four-cylinder engine and manual transmission. I can’t think of many engine/transmission combinations that come close to the shear precision of their operation. And after running through the gears in our manual Sport model, I have to again remind myself that it only costs $17,000. The Fit is the smartest choice.

Gabe Shenhar: The engineer in me admires the originality of the Honda Fit design. What a genius of a car. With the gas tank mounted under the front seats, rather than the rear seat, it frees up a lot room, which gives the car its amazing spaciousness and in-cabin flexibility. It’s not for nothing the Fit has already established a cult following during the relatively short time it’s been for sale in the U.S.

But I’d have trouble shelling out $16,000 on a new Fit that’s still a noisy and jittery-riding car. For me, a used Mini Cooper for similar money would be much more enjoyable with similar gas mileage, go-kart agility, and nicer interior (but, admittedly, less space). You can’t have everything.

Rick Small: These small sedans are enjoying a surge in popularity due to poor economy and fresh memories of high gas prices. The Subaru Impreza is a nice car, but only comes in AWD--hurting fuel economy--and the driving position doesn’t fit my tall body as well as some. The Hyundai Elantra is very nice, has a long warranty and good fuel economy. The Toyota Corolla gets very good fuel economy but my tall frame also doesn’t fit in it so well. The Ford Focus has lost some of its grip and with it went braking distances and some of the fun-to-drive factor. The Focus’s driving position is decent for tall drivers but it has no rear headrests which is a serious safety omission. The VW Rabbit feels more solid and sporty than some here and has a good driving position for taller people.

All that being said, my favorite, though, is the Mini Cooper. Both the base and S models are a blast to drive, get very good fuel economy and surprisingly have a very good driving position for tall drivers. The back seat is petty much for storage or very small passengers, however. The Honda Fit has a versatile interior, a useable rear seat and good driving position for taller drivers; a new tilt-and-telescoping steering wheel really helps here. The manual shifter feels sporty. Fuel economy is very good--even with the automatic transmission--but if you want even more mpg, get the manual.

Tom Mutchler: True confession time: I had already written my Personal Pick for this group, the Honda Fit. I started out with a diatribe about the lack of ESC unless you get navigation, but then noted that the Fit was great fun to drive with a very clever interior.

But then I read a post on our expert forums by a Pontiac Vibe owner, suggesting that his car might be the best "budget car" over the Fit. Never mind that the Vibe is larger than the Fit and isn't really a subcompact, or that the MSRP of his Vibe 1.8-liter manual with air and power accessories is $18,630 compared to the $16,730 Fit Sport manual.

Let’s examine his idea. First, that price difference mostly dissolves with the Vibe’s incentives. You can likely buy that Vibe for a little over $17,000; you’ll probably pay list for the high-demand Fit. The Fit doesn't give you the Vibe’s standard ESC or a fold-flat front passenger seat or OnStar. (You do get iPod control and alloy wheels on the Fit Sport; the cheaper base Fit lacks cruise control.)

The Fit isn't exactly a ball of fire and the interior trim is on the cheap side - ditto for the Vibe. Neither is that quiet inside. We haven’t tested a Vibe 1.8-liter manual, but given that our Toyota Corolla manual got 32 mpg overall with the same engine, we’d expect the larger Vibe to get something less. Not quite up to the Fit Sport manual’s fuel economy, but probably still quite good.

Both have room for four and a spacious cargo area. The Vibe has long been reliable too--remember, it's basically a Toyota Matrix that costs less.

My heart still leans towards the spunky, fun-to-drive Fit (or a used Mazda 3s Touring); put simply, I wouldn't look forward towards hustling a Vibe down a twisty road. But logic says that a discounted Vibe is a fine alternative.

First impressions: Piaggio MP3 motor scooter

Consumer Reports staffers had a chance to sample a few bikes at a recent driving event outside New York. This is part two of three. Also see our first impressions of the Aprillia 850 Mana and Can-Am Spyder.

Piaggio MP3
Like the Can-Am Spyder, the MP3 scooter also has three wheels, with two in front. The big difference is that unlike the Spyder, the MP3 leans in turns like any other Scooter. A button on the right handlebar can lock it upright at low speeds, for parking and standing at a traffic light. There is also a manual parking brake.

The version we drove had the largest engine offered, a fuel-injected 492cc single-cylinder with 40 hp, mated to a continuously variable transmission, as is typical with scooters. It also had a large, protective fairing and windshield.

The MP3 is hefty. It weighs 538 pounds and costs $8,899--more than many midsized motorcycles. Smaller versions, with 244 cc and 399 cc engines are available for $7,199 and $8,699, respectively.

Eric Evarts: The MP3 was the easiest and most relaxed of the three bikes, which is not surprising for a scooter. What did surprise me was the power from the big 500 cc model. The unique three-wheeled suspension was almost unnoticeable once I was on the bike. The only strange thing was trying to weave through potholes and not knowing exactly where the front wheels were. Piaggio claims the extra wheel gives the MP3 much better braking than most scooters, which seems plausible. The big fairing made riding fast more comfortable than on the other bikes. But for almost $9,000, I’d rather make a nice down payment on a Honda Fit.

Gabe Shenhar: What an engineering marvel! Just to behold that articulation of the two front wheels is a joy to the engineer in me. Riding it is a fuss-free, comfortable affair. It is fairly agile, although doesn’t encourage sporty driving. The ability to crawl or wait at a light without a foot on the ground is great for beginners, as well as for those who can afford the convenience. I only missed not seeing the front wheels and knowing exactly where I put them on the road, such as when trying to avoid a patch of oil on the road.

Jim Travers: The Piaggio MP3 is an interesting concept. Like the CanAm Spyder, it is a three-wheeler, with two wheels up front. But unlike the Spyder, the two wheels are close together, and a sophisticated suspension lets you lean in turns like a conventional motorcycle. This is good. But when stopped, you can lock the suspension so the bike holds itself up. That’s a convenience, I guess, and might work sort of like training wheels for a new rider. But two wheels will always weigh more than one, and the MP3 felt front-heavy to me. Extra weight plus added cost doesn’t add up to fun for me.

Also see our first impression of the Brammo electric motorcycles coming to Best Buy.

Read our scooter and motorcycle buying advice and ratings; watch our video scooter buyer's guide; and check our more motorcycle blogs.

Pricing: 2010 GMC Terrain SUV

With the demise of the Pontiac Torrent, the GMC Terrain picks up the baton. The all-new GMC Terrain crossover will start at $24,995 for the front-wheel-drive model and $26,745 for all-wheel-drive, including $745 destination charge. The related, redesigned Chevrolet Equinox is priced from $23,185. Positioned slightly upmarket, the well-equipped GMC will begin a couple thousand or more than direct competitors such as Honda CR-V, Subaru Forester, and Toyota RAV4.

The Terrain and Equinox share a platform that was developed in Korea for the Saturn Vue and has evolved since. Our first impressions of the Equinox indicate that its ride and handling are sound, the four-cylinder engine is reasonably refined, and the roomy interior’s quality is a major upgrade over the previous Equinox.

The base SLE1 model comes with a new 2.4-liter four-cylinder engine that produces 182 horsepower. Paired with a six-speed automatic, the direct-injection engine delivers an EPA-estimated 22 mpg city, 32 mpg highway fuel economy rating for the Terrain FWD. The AWD version is rated at 20 mpg city, 29 mpg highway. However, to achieve those numbers, the powertrain has to be in an “eco” mode, and drivers would have to do the same to see similar results.

A 3.0-liter V6 with 264 horsepower will be offered, rated for 17 mpg city, 25 mpg highway in FWD configuration. GM expects the AWD version to produce a similar 17 mpg city, 24 mpg highway.

Standard features include rearview camera, a six-speaker AM/FM/XM/CD stereo with USB connectivity, six airbags, stability control, and OnStar. The top SLT2 line features the V6 engine with leather seating, power liftgate, and moonroof. Optional features include an integrated navigation system and rear-seat DVD system.

The five-passenger Terrain will reach dealerships in September.

--Liza Barth

First impression: Can-Am Spyder motorcycle

Consumer Reports staffers had a chance to sample a few bikes at a recent driving event outside New York. This is part two of three. Also see our first impressions of the Aprillia 850 Mana.

Can-Am Spyder
The Can-Am Spyder is a three-wheeled bike with two in front and one giant wheel in back. The Spyder is made by Bombardier Recreational Products, which also makes Ski-Doo snowmobiles and Sea-Doo watercraft. It uses a 106-hp, 998 cc Rotax V-twin engine and belt drive, and it is available with either a five-speed manual or CVT automatic transmission. It even has a reverse gear and standard electronic stability control. It weighs 697 pounds.

Base price is $16,199 for the manual transmission model. The CVT adds another $1,500.

Eric Evarts: A Can-Am spokesman told me this bike is meant to attract new riders to cycles. Indeed, as a relatively novice rider, it had looked intriguing to me on the road as a more stable, potentially user-friendly alternative to a motorcycle. But the stability that was attractive standing still turned into a liability in turns. Since the bike doesn’t lean, you really have to. So it’s not an alternative for people with physical disabilities for example. In turns, it’s a really long reach to the far handlebar, and it’s hard to know where its limits are. Clearly, there is a learning curve. Perversely, the new rider in me found it more intimidating than two-wheelers.

Gabe Shenhar: The Can-Am’s width undermines the feeling of riding a bike. The fact that it doesn’t lean further removes the natural flow of man and machine. It is very fast, but only in a straight line. It does not like cornering. In fact it is so reluctant to turn that you have to “help” it by leaning your body outward like on a boat or an ATV, and that requires quite a bit of physical exertion.  To me, there was nothing fun about the Can-Am, or maybe I just didn’t get the point. I was happy to get off of it.

Jim Travers: Riding the Can-Am Spyder is unlike any other vehicle I’ve driven or ridden. The big three-wheeler, with two of those wheels and a lot of weight in front, feels more like a road-going snowmobile than a motorcycle. Fast and powerful, the company says the 106-horsepower engine is good for 0-60 mph in 4.5 seconds. I don’t doubt them. But in spite of lots of grip, I never felt comfortable in corners. I didn’t push it hard enough to activate electronic stability control, but it still felt disconcerting and twitchy. And the faster I went, the more it felt like work. Some of this was undoubtedly due to my inexperience, but frankly, I’d just as soon take my bikes with two wheels.

Also see our first impression of the Brammo electric motorcycles coming to Best Buy.

Read our scooter and motorcycle buying advice and ratings; watch our video scooter buyer's guide; and check our more motorcycle blogs.

Just in: 2010 Chevrolet Camaro

The Camaro is back, which is good news for old-school muscle car fans. Except this version is simply light years ahead of the older Camaros that gave the nameplate such a strong and loyal following. In 1969, for example, who ever thought that a Camaro would have six air bags, antilock brakes and stability control? Inconceivable. How about 25 mpg on the highway? Ha.

We went to great lengths to get our “Rally Yellow” SS model – all the way to North Carolina. Mike Leung had the privilege of flying down and driving back, putting nearly 1,000 miles on one of the hottest cars on the road. Throughout the trip back to Connecticut, Mike said that people kept speeding up to the car, slowing down and whipping out their cameras/cell phones to take a quick picture. Rock star treatment, indeed. Perhaps they thought it was a star car from the new “Transformers 2” movie.

We shelled out $37,690 for our car, which included the RS Package and few other assorted extras. In keeping with its mission to restore pony car tradition, our Camaro has the 426-horsepower, 6.2-liter V8 and six-speed manual transmission.

How does it compete with the new Ford Mustang and Dodge Challenger? Stay tuned for an extensive road test. Until then, check out our muscle car showdown preview, complete with video. Highlights from that tire-shredding experience can be seen in the video embedded here.

—Mike Quincy