Test driving vehicle history reports

If you’re relying on a vehicle history report when buying a used car, you could be making a costly mistake.

Carfax, AutoCheck, and other car history report services can be useful for what they tell you. But it’s what they can miss that’s the problem.

In a recent Consumer Reports investigation, we obtained history reports for dozens of seriously-damaged vehicles being sold on eBay Motors and other Web sites. Some of the reports came back “clean” even though the vehicles were being displayed with photos showing the extensive damage, along with descriptions of the problems and vehicle identification numbers.

For example, a smashed 2007 Acura MDX, described on one auction site as a “ROLLOVER; ALL OVER,” got a clean report from Carfax and a rating of 89 out of 100 from AutoCheck.

If you’re buying a used car, by all means, take a look at a vehicle history report, especially if it’s being provided at no cost to you by a dealer or private seller, as is often the case. But don’t stop there. Drive and carefully inspect the vehicle. Most importantly, have it checked out by qualified mechanic, preferably one with auto body experience. A thorough inspection is critical, no matter how new the car is or how clean it looks, or even if it’s covered by a warranty.

See our full car history report investigation, including some stunning photos of wrecked cars that came back with clean titles.

—Anthony Giorgianni

Free Volkswagen Routans from The Oprah Show

The king-maker of midday, Oprah Winfrey will give away Volkswagen Routan minivans on her popular television program this summer. In 2004, The Oprah Winfrey Show gave away 276 Pontiac G6’s, making a massive media splash in the process. Promoted as making dreams come true, many winners faced with taxes on their winnings were not able to keep their cars. Presumably, the smaller-scale VW promotion will go smoother. (There are reportedly two Routans up for grabs, and neither will look like the "O Edition" here made up from our test Routan.)

But does a free car mean it is a good car?

Nope. The Pontiac G6 scores 49 out of 100 in our tests. Its token “high” is the controls. “Lows” include just about everything else: Noise, sloppy at-the-limit handling, steering, braking, ride, fit and finish, seat comfort, turning circle, and reliability.

Of course, this is a different year and different vehicle. The Routan is built by Chrysler, with limited modifications to its Town & Country/Dodge Caravan minivans. The T&C Limited scores 64 in Consumer Reports testing, and it is not recommended due to predicted reliability being much worse than average. (See our video review.)

The VW version is distinguished with a more familial grille, a soft dash top, and retuned suspension and steering that gives it a slightly more responsive and taut feel. However, the result is less than convincing. While we have not completed testing on our Routan, the Chrysler engines in other minivans are a bit noisy and not particularly fuel efficient. The cleverest elements from the platform -- the second-row seats that fold into the floor known as "Stow and Go" or the "Swivel-and-Go" seating—are absent from the Routan. Although the large bins under the floor that the seats stow in are still very useful for storage.

Volkswagen is banking on the Oprah effect to goose minivan sales and raise awareness. And it is probably a safe bet. (Unless, of course, Oprah is the touch of death: Pontiac is about to be put to pasture…)

In the first six months of 2009, the Town & Country has sold 43,737 units, according to Automotive News. The Dodge Caravan is close at 41,747. Volkswagen sales are just a fifth that at 8,290, a figure that is less than half the total produced. Before reading into the comparison, the Routan has outsold the Eos, Golf/GTI, New Beetle, Passat, and the Rabbit— only the CC and Jetta outsell it in VW’s lineup. (Links in this paragraph go to model overview pages, where online subscribers can review ratings, pricing, reliability, and road tests.) Comparing the before and after sales will be complicated by the impact of Chrysler idling the manufacturing plant for weeks during its bankruptcy proceedings, thereby reducing supply to better match demand. That said, I’m still curious…

Bottom line:
While Oprah can be seen at many times as the champion for the underdog, there is no mistaking this relationship—VW ads and “sponsorship” make it apparent.

Be skeptical of celebrity endorsements. And do your own research on your next new or used vehicle, trusting independent sources such as Consumer Reports that are free from advertiser influence. If you can find them.

Also read: "Word jumble–How should Volkswagen spell Routan?"

—Jeff Bartlett

Pontiac G8 to live on as Chevrolet Caprice

Probably. The blogosphere has been abuzz with rumors that from the ashes of the shuttered Pontiac division that its G8 muscle sedan would be reborn as a Chevrolet Caprice. Consumer Reports editors and engineers have been lamenting the expected loss of this world-class, rear-drive car and are encouraged that one of GM’s best models may survive the restructuring process.

This afternoon, GM Vice Chairman Bob Lutz in a Web chat wrote:

The G8 has finally been discovered by a broader percentage of the buying public. The owners are ecstatic about them, many calling it the best sedan they've ever driven. We consider it too good to waste. So we're studying the feasibility of bringing it in as a Caprice for both law enforcement and the public.

The transition could be relatively minor, with the greatest challenge being the replacing the twin kidney Pontiac grille with a more-appropriate Chevrolet fascia, such as shown below on the Middle East version sold as the Chevrolet Lumina. Swap out a few Pontiac dart logos for Chevy bowties and call it a day. Shame the Impala moniker is already being used…

While GM is now focused on electrifying powertrains and producing fuel-efficient vehicles, we hope they are able to save this gem from the old GM.

See the Pontiac G8 model overview, with ratings, reliability, road test—available to online subscribers.

Read our G8 laments:
Don’t let the Pontiac G8 wither and die
GM shrinks performance model line-up
Pontiac–The excitement has faded from the line up
Personal picks: Pontiacs, modern and classic

—Jeff Bartlett

Pricing: 2010 Scion xD

The Scion xD sees a modest price increase for 2010 and a significant safety feature made standard. The xD base price for the five-speed manual version will start at $14,800, reflecting a modest $150 bump. Upgrade to a four-speed automatic transmission and the price rises to $15,600.

Those figures include a standard electronic stability control (ESC) system, which was previously optional for $650. These affordable, fuel-efficient models target younger drivers who could benefit greatly from the proven safety benefits of ESC, which helps a driver keep the vehicle in control and on its intended path during a turn, to avoid sliding or skidding.

The 2010 xD has a new standard AM/FM/CD/MP3 stereo from Pioneer, with a 160-watt amplifier and six speakers, plus a provision for adding a subwoofer. An optional Alpine Premium audio system adds a 4.3-inch touch screen, HD radio, and more RCA outputs for additional amplifiers. Further, the Alpine unit is back-up camera and navigation system ready. Scion offers an add-on nav with maps of the United States, Canada, and Puerto Rico.

All Scion xD’s feature air conditioning, power windows/door locks/mirrors, cruise control, and keyless entry. Safety features include four-wheel ABS, ESC, traction control, side and side-curtain air bags, and a first aid kit.

In our last road test, we found that the xD offered excellent fuel economy, with decent handling and a versatile interior. However, there is considerable road, mechanical, and wind noise. The ride is choppy, and rearward visibility is compromised by thick C-pillars.

A CR-Recommended car, the 2010 Scion xD is a smarter choice for drivers with the addition of ESC especially younger new drivers. Any owner will appreciate the complimentary 5,000- and 10,000-mile services, as well as the car’s much better than average predicted reliability. The Toyota Yaris, with which it shares a platform, also gets standard ESC for '10.

Visit the Scion xD model overview for ratings, reliability, and road test--available to online subscribers.

—Jeff Bartlett

Maximum Bob returns: GM un-retires Bob Lutz

In a press conference Friday announcing the formation of the new GM, CEO Fritz Henderson also announced he was “unretiring Mr. Lutz.”

We can’t think of a better term. Bob Lutz, known throughout the auto industry as “Maximum Bob” is an outspoken, often brash, former Marine Corps aviator who was responsible for breathing life into GM’s moribund product lineup since 2000. In February 2009, the Lutz announced he would transition into a  new role as Vice Chairman and Senior Advisor, with the intent to retire by year’s end.. Before his stint at General Motors, he shook up design and engineering at Chrysler and became known as the godfather of the outrageous Dodge Viper sports car.  Before that, he spent 12 years at Ford Motor Company, where his last position was executive vice president of truck operations.

The 77-year-old executive is known for flying his helicopter to work and spontaneously landing in friends’ back yards . He still sometimes flies his Czech L39 Albatross fighter jet, and rides one of his collection of motorcycles to meet friends for breakfast on Saturdays.

After Lutz’s 50-year career hopping between automakers, including BMW, Henderson said rehiring Lutz was the only way he knew to keep him from turning up at a competitor.

If there’s one thing we’ve never known Lutz to be it’s “retiring.” We hope he will be able to continue the momentum GM has built up in improving its model lineup in recent years. It would be even better if GM made progress in making its cars more reliable, as well as better to drive.

Read: “What the post-bankruptcy GM means to you.”

—Eric Evarts

New GM to experiment with cars sales on eBay Motors

If you live in California, General Motors will have a new experimental program to allow buyers to purchase cars through an eBay auction. The company has signed an agreement with eBay, but few details are available.

The program will be run through California dealerships and include an option to buy the car at a fixed price.

This marks the latest manufacturer attempt to provide a way for consumers to buy cars directly off the Internet and avoid price haggling in the sales office. However, bidders may find dealers still try to sell extended warranties, fabric and paint protection, and VIN etching once at they arrive at the sales office to complete the paperwork. 

Previous efforts to allow consumers to buy cars directly through manufacturer or third-party Web sites were not successful. But dealers now have many years of experience selling used cars on eBay, so they may be more comfortable with this program. If the experiment is successful, GM hopes to make it available more widely, said GM CEO Fritz Henderson in a speech this morning.

Read: “What the post-bankruptcy GM means to you” and also: “Winning at eBay.”

—Eric Evarts

Consumer groups seek warnings on used Chrysler vehicles

A group of five consumer groups is calling for window stickers warning potential buyers of Chrysler vehicles built before the carmaker’s May 30th bankruptcy. The sticker would point out that the company will not be liable if passengers are injured or killed in an accident caused by safety or manufacturing defects. Consumer Action, Center for Auto Safety, Center for Justice and Democracy, Consumers for Auto Reliability and Safety, and National Consumers League sent a letter to the Federal Trade Commission petitioning for this disclosure.

Under the bankruptcy agreement, the new Chrysler was absolved of any responsibility for vehicles built before the government-aided restructuring. An estimated 30 million such vehicles are still on the road. The consumer groups claim thousands of injuries will likely be caused by defective models. Chrysler opposes the stickers.

The new Chrysler will back vehicles built after Fiat took a significant stake in the company. The consumer groups argue that without the stickers, two identical models could be sitting next to one another on a dealer lot, one with consumer protection and one without.

The petition is being reviewed by the Federal Trade Commission. FTC action would require changes in the Used Car Rule of 1984. As the consumer groups explained: “The Used Car Rule is intended primarily to prevent oral misrepresentations and unfair omissions of material facts by used car dealers concerning warranty coverage. To accomplish that goal, the Rule provides a uniform method for disclosing warranty information on a window sticker called the ‘Buyers Guide’ that dealers are required to display on used cars.”

An agency spokesperson said the rule-making process could take more than a year.

—Jim Travers

What the post-bankruptcy GM means to you

General Motors quickly emerged from its May 31st Chapter 11 filing this morning, benefiting from the Chrysler bankruptcy process before them and Auto Task Force drive to get the corporate giant back on its feet. The transition from old to new GM should be rather seamless for consumers, at least initially.

GM has culled four divisions from its portfolio and down the road it plans to significantly reduce its dealer body by not renewing franchise agreements. These 1,100 dealerships, representing about 18 percent of GM’s total dealers, will have until October 2010 to sell their remaining cars. The product line will drop from 48 to 34 nameplates in the process.

This Q&A addresses some common questions, and we will continue to provide additional insights and advice as General Motors and Chrysler both begin their new chapters. For more information, go to our Auto Crisis page. Also, learn how bankruptcy works.

Who owns the new GM?
Earning the nickname “Government Motors,” the American tax payers are the majority owner for the new company. GM ownership breaks down to:

• 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.

What brands and models are available?
The new GM will include Buick, Cadillac, Chevrolet, and GMC brands. GM has stripped itself of Pontiac, Hummer, Saab, and Saturn. The latter three divisions are being sold to other companies, so those brands are expected to continue to be available in the United States. Future GM models include the Buick LaCrosse; Cadillac CTS coupe, CTS Sport Wagon and SRX; Chevrolet Cruze, Orlando, Spark, and Volt; and GMC Terrain.

Will I be able to get parts and service for my GM car?
GM dealers will continue to provide service, as before. Hummer, Saab, and Saturn dealers will be supported until they are sold off, enabling them to continue without interruption. In emergency situations, most of these vehicles can be serviced at any GM dealer. Perhaps the greatest consumer impact will be the significant reduction in dealerships, making car maintenance less convenient.

Keep in mind that you don't have to take your car to a dealership for servicing, even if it’s under warranty. A good independent shop, especially one that specializes in your car’s brand, should be able to handle routine maintenance and many repairs. Moreover, independent repair shops are often less expensive than dealerships and, according to our Annual Auto Survey, generally provide a higher level of satisfaction. You will need to go to a dealership, however, for warranty and recall work.

Will GM still back my warranty?
Yes, GM will continue to support its vehicles’ warranties. Responsibility for warranties for Hummer, Saab, and Saturn rests with "old" GM and will eventually transfer to the new owners.

What if I want to sell my GM car?
Models from brands that are being phased out or sold will probably see a drop in value. But if the company re-establishes itself as a strong, stable automaker in the future, ongoing models could see a rebound in value. If you plan to keep the car for a long time, depreciation is less of a factor.

Should I buy a GM car now?
No reason not to buy a Buick, Cadillac, Chevrolet, or GMC vehicle. However, there are some considerations when choosing from an “old” GM brand. For instance, the future of Hummer, Saab, and Saturn is not yet carved in stone. Even when it is, it is unclear who will support current versions of those products, or for how long. Sales of these divisions are in process. Pontiac is being phased out, and finding long-term support for its products may be more difficult than with other brands.

That said, GM is offering some tempting sales incentives on many of its models, including ones that we recommend. And with slow auto sales and too much inventory, dealers are ready to negotiate. So, it’s likely that you could get a very good deal.

Several recent GM models have done well in our testing and are very competitive in their classes. Consumer Reports recommends the Buick Lucerne V8; Cadillac DTS; Chevrolet Avalanche, HHR, Malibu, and Silverado; and the GMC Sierra. The Cadillac CTS, and GM’s quartet of three-row, crossover SUVs (Buick Enclave, Chevrolet Traverse, GMC Acadia, and Saturn Outlook) all did well in our tests, but are not recommended due to below-average reliability in their first years. (Links in this paragraph go to model overview pages, where online subscribers can review ratings, pricing, reliability, and road tests.)

It’s important to remember that any deal is only as good as the vehicle you’re buying. As always, 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.

What if I have a claim against GM?
Under pressure from the government and consumer groups, GM has agreed to stand behind product liability claims for all GM cars and trucks that are filed after the company emerges from bankruptcy. However, hundreds of consumers with existing personal injury claims against GM will be left scrapping for the meager remains of the old GM.

To get answers to the most common questions and concerns about Chrysler’s and GM’s bankruptcy and reinvention, check out our Auto Crisis hub.

Toyota, Lexus get new telematics system

Toyota is launching a new telematics system called Safety Connect to replace Lexus Link, a rebranded version of General Motors’ OnStar service.

Rolling out beginning with 2010 Toyota and Lexus models, Safety Connect will offer subscribers a menu of services similar to OnStar’s, including emergency crash notification and assistance, stolen vehicle locator, and roadside assistance. Like all telematics systems, Safety Connect uses a combination of cellular telephone, GPS, and computing technology to track vehicle location and communicate with a call center.

In the event of a collision serious enough to deploy air bags, the system will automatically notify the call center and report the vehicle location. An operator will then call the car to speak with occupants and determine what help is needed. If the operator is unable to speak with anyone, emergency personnel will be dispatched. Subscribers also will have the option of calling the center anytime with the push of a button for roadside assistance.

Lexus owners will have the option of upgrading to Lexus Enform, which adds services like weather reports and turn-by-turn directions. Users can contact the call center and ask an operator for directions to a specific address, nearby gas station, restaurant, or other location. The operator will then download turn-by-turn directions to the car.

Lexus Enform subscribers will also have the option of sending directions to their vehicle from any computer. Once they log into their account, the eDestination feature will allow owners to ask for directions to a specific address or access the same point of interest database used by Lexus’ navigation systems.

Prices and specific vehicle availability for Safety Connect and Lexus Enform have not yet been announced. A company representative said Lexus Link subscribers will be able to continue to use that service for the life of their vehicles. The Lexus Web site lists Lexus Link as a $900 option, with a $199 annual subscription. Adding turn-by-turn directions costs another $100 a year. In contrast, OnStar is standard equipment on most new GM vehicles, and its Directions and Connections plan is $299 a year.

To learn about the latest, high-tech road trip gear, check out our mobile electronic guide. There you can learn about the latest options in car audio systems such as satellite and HD radio, and MP3 connectivity; GPS navigation systems including Ratings of the latest models; and car video systems to help you take the show on the road.

—Jim Travers

Gas prices: Are they past their peak?

July is historically a peak travel time in the United States, as gas prices surge in response to the demand, but indications show that prices may have already cooled off this summer.

A number of factors contributed to some anxiety over fuel costs this season and brought back memories of the sticker shock from last summer. Drivers saw prices increase by more than a $1 a gallon so far in 2009 and almost 60 cents from early May. This was due to an increase in demand while supply was low and an initial boost in consumer confidence. (See our blog “Why gas prices are going up?”).

However, the past two weeks prices have seen a decrease after an eight-week climb. Crude oil prices have dropped to about half of what they were last summer when they reached over $130 a barrel. A reduction in demand coupled with an increase in supply and production have helped to push prices back down a little earlier than expected. Plus, the economy and recession has forced many to change travel plans and stay closer to home. AAA expected July 4th travel to be down almost two percent from last year.

The Energy Information Administration (EIA) said in its latest, weekly report that “it appears that the summer market may be near, if not past, its peak.” And looking at the trends from past years, as illustrated in the embedded EIA graph, it is easy to see that prices historically dip after the July 4th weekend.

Unless there is a major hurricane or storm that affects refineries or an unexpected economic change, the June 22nd price of $2.69 a gallon could be the highest we’ll see for sometime. And that’s good news for people who still have road trips and other driving adventures planned for the rest of the summer.

—Liza Barth