Consumer Reports family sedans chat

Today, Consumer Reports experts will be online to discuss the latest road test group—family sedans—here in the Cars blog at 1 p.m. ET.

As seen in the December 2009 edition of Consumer Reports magazine, we tested several all-new and updated models, including the Ford Fusion, Mazda3 iTouring, Subaru Legacy, and Toyota Camry.

Our automotive experts will field questions about these cars and other sedans during the live, interactive chat, sharing test findings and helping you make the right buying decisions.

Pricing: 2010 Acura ZDX

Acura has announced a starting price of $45,495 for the new ZDX four-door luxury crossover. The sleek, new MDX-based car will be available in three trim packages: base, Technology Package ($49,995) and Advanced Package ($56,045). All models come standard with all-wheel drive and a 300-hp, 3.7-liter V6 engine. EPA mileage is estimated at 16/23 city/highway.

Standard features on the base model include a panoramic glass roof, concealed rear door handles, and leather accents on the dash, center console, and door panels. The Technology Package adds a navigation system with voice recognition, real-time traffic and weather, a full display screen, and multi-view rear camera. Also included is an upgraded audio system with a built-in hard drive to store up to 3,500 songs; a GPS-linked, solar-sensing, dual-zone automatic climate control system; and keyless entry with push-button start.

The Advance Package adds a blind-spot information system, adaptive cruise control, collision avoidance system, Integrated Dynamic System (IDS)--which offers a Comfort and Sport setting--and heated leather front seats.

We recently took a ride in the new ZDX and found that style has trumped utility. The fit and finish is first rate, the exterior attractive, and there are a number of interesting features, but the low roof, close quarters, and poor access will have limited appeal even to the targeted affluent empty nesters.

All models include $810 for destination and handling. The ZDX will hit dealerships on Dec. 15th.

Read our first impression on the Acura ZDX, and visit the ZDX model overview page.

—Liza Barth

Survey: SUVs are top choice as consumers consider their next vehicle purchase

Over half of Consumer Reports online subscribers plan to buy or have recently purchased a new vehicle, and SUVs are the number-one pick for those still considering which vehicle type to buy, according to a recent survey. The popularity of SUVs signals a return to larger, versatile vehicles, despite the steep prices at the pump last year that led to a surge in small car sales. These findings are from a recent survey conducted by the Consumer Reports National Research Center that included more than 2,000 interviews of ConsumerReports.org subscribers.

Survey respondents who recently bought sport/utilities, or anticipated buying one, had several reasons for why they considered SUVs to have unique benefits and advantages over other vehicle types. Space, convenience, and perceived safety are three examples cited by at least a third of CRO subscribers.

Leading reasons to purchase an SUV

63 percent said they need extra cargo space
59 percent said they like to sit up high and see over other cars
51 percent said they need all-wheel drive to handle bad weather
41 percent said the SUV's versatility is worth the lower gas mileage
37 percent said they feel safer in a SUV
31 percent said they don't like the image of minivans
27 percent said they need room to carry more than five people

SUVs can range in size and price, and all of the reasons listed above show why they appeal to various types of drivers. (See our in-depth SUV buying advice and Ratings.) 

It should be noted, however, that because of their taller height, SUVs as a class are not as nimble as passenger cars and have a greater rollover risk in emergency handling maneuvers. Also, their added weight compromises fuel economy. For these reasons, and more, a station wagon or minivan are worthwhile alternatives.

Station wagons--like a Subaru Outback--and even some hatchbacks combine the cargo-carrying flexibility of a small or midsized SUV with the comfort, fuel economy, handling, and performance that can rival a sedan. Even a small hatchback such as the Honda Fit can provide a lot of cargo room for its size. Also, all-wheel drive is not limited to SUVs. An increasing number of cars are offering AWD.

Read our wagon buying advice and ratings, available to online subscribers.

—Maggie Shader with the Consumer Reports National Research Center

Top-selling cars in 2009 yields some surprises

It’s been a tough year so far for automakers. Many manufacturers are posting large declines in sales compared to last year. However, some individual vehicle models are making strides. Reuters recently put together a list of the top-selling vehicles through October 2009 and it holds some surprises.

The Ford F-150 pickup continues to secure the top spot even with a sales decrease of 23 percent in 2009 over the first ten months of 2008. However, not all pickups held their sales rank; the Dodge Ram drops from the 5th spot to 9th and the Toyota Camry bumped the Chevy Silverado down from 2nd to 3rd.

But the big news is the Ford Fusion. The Fusion was freshened for the 2010 model year and has achieved a number of accolades. The Fusion hybrid is the highest scoring domestic family sedan in Consumer Reports testing. Most versions of the Fusion have above average predicted reliability in our survey data. In sales, it has jumped 10 spots to reach the top 10. Further, it is the only model in the top 10 to show a sales increase this year--15 percent over last year.

Here is the list of the top 10 vehicles in sales and the change from 2008. Also, noteworthy is that all the models are recommended by Consumer Reports.

Click on each model in the chart below to see how they performed in our road test, and see their ratings for reliability, safety, and more.

Rank	Make & model	2009	2008	2008 rank	% change
1	Ford F-Series pickup	334,922	436,022	1	-23.2
2	Toyota Camry	285,069	379,270	3	-24.8
3	Chevrolet Silverado pickup	261,142	402,191	2	-35.1
4	Honda Accord	244,579	333,011	6	-26.6
5	Toyota Corolla	240,755	307,071	4	-21.6
6	Honda Civic	223,751	304,297	8	-26.5
7	Nissan Altima	169,435	241,529	9	-29.8
8	Honda CR-V	158,573	171,193	11	-7.4
9	Dodge Ram pickup	155,467	213,684	5	-27.2
10	Ford Fusion	148,045	128,381	20	+15.3

Also read: Flashy muscle cars are recession's hot ticket.

—Liza Barth

Flashy muscle cars are recession’s hot ticket

One of the oddest recession statistics involves lipstick: In a twist of economic psychology, lipstick sales invariably rise in recessions. Now it seems the same may apply to Detroit-based V8 muscle cars.

For the month of October, sales of muscle cars were up almost 50 percent compared with last year, according to data from Automotive News. Sales of all sports cars were up almost 24 percent.

Some of that may be because the Chevrolet Camaro came on the market this spring, so it has added to the total. General Motors, which makes the Camaro, says that it has sold 47,000 Camaros so far in 2009.

Counting all types of cars, overall sales were about the same as last October.

Is it possible that these muscle cars reflect glimmers of economic hope among car buyers? While consumers have bought 25 percent fewer cars overall so far in 2009 compared with 2008, muscle-car sales increased by a similar percentage. And a greater proportion of buyers are choosing sports cars overall. Sales of all sports cars declined barely half as much as overall car sales.

We think that most muscle and sports cars are fun to drive, which might account for why they often rank at the top of our owner satisfaction ratings where CR subscribers are asked if they would buy the same car again. This year the top-scoring model was the Dodge Challenger. (Many of us didn’t find the Challenger particularly engaging to drive, but it can be fun in its own way.)

So like lipstick, consumers facing a recession may just want to buy something affordable that makes them stand out and feel a little better about themselves. 

 —Eric Evarts

Tales of our Volkswagen GTI - Car buying made easy

We are often asked about how we go about the business of anonymously buying more than 70 cars, trucks, and SUVs every year. (Learn how we test cars.) Most of our test vehicles are bought by the engineers and support staff who work at our Connecticut test track. Though I’m with the headquarters staff in New York, I recently volunteered to act as a secret shopper for the test program, partly out of curiosity, partly because it takes a lot of buyers to anonymously buy so many cars, and partly just to have better answers at neighborhood barbecues. 

My two-pronged plan: First, try to follow our own buying advice and second, try to make the process as painless as possible. Unlike a typical new-car buyer, I didn’t need to read up on what my car was worth in trade or get financing advice, because I wasn’t trading and I’d be paying by check. Nor did I have to determine the right car for my needs, or what options to choose – all I had to do was buy the assigned car.
The good news was that the car in question has long been a personal favorite--the Volkswagen GTI, recently freshened for 2010.

I started by doing what we recommend all car buyers do and determined the list price of the car and options, and the dealer cost for each. That information was readily available through our recently enhanced Cars Best Deals Plus services. (Learn about Consumer Reports Cars Best Deals Plus.) 

While online, I sent an e-mail from my personal account to three dealers in my area. I was very exact, listing the specific model year, trim line, options packages, and first and second color choices. You should do the same if you choose this contact method, because it saves lots of time, phone calls, and extra e-mails.

Two of the three dealers sent an automated e-mail within minutes, thanking me and saying someone would follow up shortly. A sales consultant at the first of those wrote within an hour to introduce herself and confirm the car, options, and color. She also said she’d get back to me shortly with a price and did so an hour later. The price, a bit below sticker, was acceptable. Dealer number two responded several hours later, with a quote on a 2009 GTI instead of a 2010. It took number two another full day to respond to my follow-up e-mail where I reiterated that I wanted a 2010 GTI. A day later, he wrote back saying GTIs were hard to find, and would I please say exactly what I wanted.

Another e-mail or two with dealer number one and a car was located and on its way from another dealer. It was ready and waiting at the appointed time. No fuss, no muss. And the price she had quoted was what I paid. I did have to confess the day of the pickup that the car was actually being purchased by Consumer Reports as a test car, making her re-do some of the paperwork, but she took it well. All in a day’s work.

Admittedly, your own car buying experience is likely to be more complicated than mine was. Most buyers have a trade-in and must finance at least a part of the new car. I could also didn’t need to test drive several contenders to help make my choice, but any car buyer should plan to spend at least 30 minutes behind the wheel of any car you buy—and a few other considered models for comparison.

On the other hand, as a private buyer you can take advantage of some tools not always available to us. We often need to buy brand new models within days of their first arrival at dealerships, in order to start testing right away. That often minimizes a dealer’s willingness to grant a big discount, although our shoppers always try to grab the best deal they can. If you can wait a few months, you’re better off. And if you can wait until the end of the month you’ve chosen, dealers will often be more willing to negotiate because they have quotas to fill. We also have to buy many cars generously equipped, so we can see if the latest gadgets are worth the money. You might be able to meet your needs while passing up the leather upholstery, rear DVD player, fancy sound system, or other extras.

One thing I learned from my experience is that if I ever buy a new car again, I’ll at least get the process started using the Internet. It’s a real time saver. Shopping online is much more convenient than driving from dealer to dealer, and it can help determine which dealers you might want to work with, and which aren’t worth your time.

I still haven’t heard from dealer number three.

—Jim Travers  

Read our car-buying advice and get the bottom line price on new cars.

Letter to Washington: Consumer Financial Protection Agency needs to govern all car financing

Following the meltdown in financial services last year, the Obama Administration wants to launch a Consumer Financial Protection Agency as a watchdog over consumer financial products. As progress is made in Washington, D.C. on a bill to create this agency, one contentious area on Capitol Hill revolves around whether car dealerships, where many car loans originate, should be subject to the new rules and regulations of the agency on lending. (Learn more about the Consumer Financial Protection Agency.)
 
A high level of complaints about auto dealerships, typically related to predatory lending practices at dealerships, is driving the need for oversight. Such issues are ranked number one among consumer complaints lodged with state and local consumer protection agencies, according to an annual consumer complaint survey by the Consumer Federation of America and other consumer groups.
 
About 94 percent of new car sales involve financing, according to the National Automobile Dealers Association (NADA). According to a report by CNW Marketing Research, an automotive marketing firm, 85 percent of those Americans who have a car loan have negative equity in their vehicles. Other studies have pegged this negative equity at an average of $4,400.
 
Now several consumer groups, including Consumers Union, which publishes Consumer Reports, have signed on to a letter to Rep. Barney Frank (D-MA), asking him to ensure that the bill includes dealer financing.
 
Car dealers predictably oppose the measure (PDF). They argue that loan transactions are already regulated by the Federal Trade Commission, the Federal Reserve Board and all 50 states. And they point out that auto financing was not among the factors that lead to last year’s credit collapse.
 
NADA spokesman Bailey Wood told the Detroit News that "payment packing, misrepresenting fees, falsifying loan applications, forgery, etc., are already illegal,” implying that they don’t need further regulation.
 
The letter signed by Consumers Union and others cites several dealer practices that the Consumer Financial Protection Agency (CFPA) needs to regulate to protect consumers, including:

• Selling retail installment contracts to lenders.
• Engaging in bait-and-switch financing, also known as "yo-yo" financing.
• Engaging in "loan packing" -- misrepresenting the costs to finance over-priced add-ons.
• Forging loan documents and/or signatures.
• Failing to pay off outstanding liens on traded-in vehicles, as promised, a.k.a. "car kiting."
• Charging excessive, hidden dealer "markups" of interest rates.
• Price gouging by Buy-Here-Pay-Here lots, where dealers carry their own finance paper.
• Engaging in other predatory lending practices.

 
There is also a fairness issue – the bill will cover banks, credit unions, and finance companies when they make car loans. It should also cover dealer loans.

Consumer Reports has long stated that paying cash for a car is the most cost-effective way to buy. For those who finance, it is important to shop for the best interest rate and secure a loan prior to visiting a car dealership to ensure it is the consumer who is driving the deal. That advice has never been more relevant. (Read: "Watch for these sales pitches.")

The House Financial Services Committee, which Rep. Frank chairs, is due to begin marking up the bill today.

Watch the Consumers Union video on the Consumer Financial Protection Agency.

Learn more about new car buying.

—Eric Evarts

Should I buy a Saturn car?

General Motors stopped building Saturn cars and SUVs immediately following the announcement that Penske Automotive Group would not to buy the rights to the brand. GM now plans to sell off the remaining 12,000 Saturns by the end of January 2010, shutting down the brand, much like it is with Pontiac right now. Saturn dealers are watching the calendar closely, and it is a safe bet that there will be significant incentives offered on these last vehicles. But should you purchase a Saturn now? In a word, no.
 
There are five Saturn models for 2009, but only the Aura has both performed well enough and been reliable enough to earn our Recommendation. (See all Recommended cars.)
 
Beyond our assessment of the product line, buying from a retiring brand carries certain inherent risks. For instance, upfront savings will most assuredly be offset by significant depreciation. (If you typically drive your cars into the ground, this may not matter much.) It is not uncommon to see GM vehicles carry $1,500 or more in rebates. How much more will they put on the hood to move the Saturns than the nearby Chevrolets? Another one to two thousand? It is very safe to assume the same amount is cut from the eventual trade-in value right from the start. We saw this with Oldsmobile and are witnessing it with Pontiac. Same will hold true for Saturn; it isn’t that different of a car company in the end.
 
General Motors has said it will honor Saturn warranty claims, maintenance, and repair needs at other, surviving GM franchises. However, best corporate intentions won’t make those dealerships more convenient, better stocked with parts, or better trained.
 
As we found in our investigations during the so-called auto crisis, while dealerships may perform work on models from other brands, there are practical limitations to parts inventory and technician training. Simple work like a routine service call is not a problem. For example, a Chevrolet mechanic who works on a Chevy Traverse or Malibu will find a Saturn Outlook or Aura familiar, they may not have the experience to tackle a problem with the Opel-sourced Astra or the low-volume Sky roadster. In such cases, even a warranty request would be deferred to another dealership.
 
Would you be able to fix a Saturn for years to come? Absolutely. It just may not be as convenient or inexpensive as in years past. What once may have been a quick service visit before work may require a day off work to travel to a neighboring town or county. And the likelihood to needing a repair is higher than average with the Outlook, Sky, and Vue, according to our reliability surveys.
 
In theory, parts will remain available, yet with the supplier network struggling during the recession and many vendors closing or going through bankruptcy proceedings, there are no guaranties. Parts that were once stocked by your local Saturn dealership may become scarce. Despite GM assurances about parts availability, remember that just last month, we all thought Saturn would continue for many years to come. Hard to say definitively what a Saturn ownership experience will be like in the next decade.
 
As always, consumers should enter the buying process with eyes wide open. With Saturn, there are simply better alternatives that are more reliable, have lower owner costs, and do not carry undue risks.
 
—Jeff Bartlett
 
Related:
Unplugged: Saturn dealerships to close in four months
No Penske deal means end of the road for Saturn

Unplugged: Saturn dealerships to close in four months

Within hours after the collapse of the agreement to sell Saturn last week, General Motors built its last Saturn. GM says it plans to sell the remaining 12,000 cars on dealers’ lots by the end of January 2010. (Read “No Penske deal means end of the road for Saturn.”)

Saturn has been known for its customer-friendly dealerships, but when they sell their final cars, it will mark the end of the vaunted Saturn dealer network, following Pontiac into the history books.
 
General Motors has said that other GM franchises will be able to service Saturns and will honor Saturn warranties. But some Saturn owners have reported problems with other GM-brand dealerships not having parts or training to work on Saturns and not having access to Saturn’s computer system for warranty repairs.
 
If it’s going to sell 12,000 cars in four months, GM will likely offer sizeable incentives to buy them. But of the five Saturn models for 2009, only the Aura XR V6 performed well enough and was reliable enough to earn our Recommendation.
 
Our earlier concerns about what the future might hold for those buying a vehicle from a discontinued brand remain. (Read: “Should you buy a Hummer, Saab, or Saturn?”) Even with significant incentives, buying a Saturn now carries additional risks and there are simply better alternatives from other, more stable brands, including those within the remaining GM portfolio.
 
—Eric Evarts

Life after cash for clunkers: September auto sales

The much-publicized cash for clunkers program gave a shot of adrenaline to car sales this summer, inspiring purchases even from consumers who did not participate. With the $3 billion spent in moving people into more fuel-efficient vehicles, the question became, what would become of the market without the federal incentives? The answer: September sales figures show that all manufacturers saw a significant 35 to over 50 percent sales decrease compared to August. But--and here’s the good news--when compared to last September, a few manufacturers actually saw a sales increase, including Hyundai, Kia, and Subaru.

Here are the sales trends among the largest automakers:

Chrysler: Still struggling post bankruptcy, Chrysler saw a 42-percent decrease over last September and down 40 percent for the calendar year so far.

Ford: Helped by a sales surge from the redesigned Taurus, Ford showed only a small decrease of five percent over September 2008, but so far this year they are down 22 percent.

GM: Low inventory levels after the clunker program pushed General Motors to a decrease of 45 percent over last year and 36 percent decrease so far for 2009.

Honda: With a decrease in sales almost across the board (except the Pilot, which showed a small increase), Honda sales were down 23 percent over last year and 24 percent so far this year.

Hyundai: Continues to enjoy growth and increase market share. They reported a 27 percent increase over last September and a 1.4 increase year to date.

Nissan: Sales for September were down 7 percent over last year and 26 percent year to date. A number of vehicles, including the Nissan Maxima, 370Z, Pathfinder, and Frontier, as well as the Infiniti QX56, saw a gain over last year.

Subaru: Attributing its success to the redesigned Outback and Legacy models, Subaru saw an increase of 1 percent over last September and continues to have the highest sales percent increase of any manufacturer--up 10 percent for the calendar year so far.

Toyota: Overall sales were down 16 percent from last year and 27 percent year to date, but the Lexus division saw an increase of 7 percent over September 2008.

Even with help from last month’s cash for clunkers program, manufacturers are still struggling this year. As they enter the fourth quarter, we should see some more promotions and rebates to help drive up sales before the end of the year.

—Liza Barth