How to prevent car theft

The good news is that car thefts are down across the country, continuing a five-year trend. Preliminary figures from the National Insurance Crime Bureau (NICB) show that total thefts for 2008 could reach their lowest level in over 20 years. However, still nearly one million vehicles were stolen last year. Drivers need to continue to be vigilant to reduce these numbers further.

Here are some tips to help make your vehicle less desirable to thieves:

• Lock your car. It is common sense that many thefts happen to unlocked vehicles. The goal is to make your car less desirable than others, and a locked door is a simple deterrent.
• Never leave your car running unattended and always take your keys with you. Otherwise, you are inviting thieves to drive off with your car.
• Keep windows closed when you park and leave your vehicle. A slender arm or clothes hanger can reach in through even a narrow opening to unlock the door.
• Don’t store valuables or expensive electronic devices in plain sight. It’s best to take portable devices with you.
• Park in a well-lighted, public place when running errands and when at home. A car will, obviously, be safer in a garage than in a driveway or at a curb.
• Use a visual warning device, such as a blinking light, as a deterrent. An alarm can be effective, but it is even better if the crook doesn’t break into the vehicle in the first place. If your car is not factory-equipped with these features, they can be installed at a local automotive stereo shop.
• Smart keys or a fuel cut-offs system, aka engine immobilizer, are standard on many late-model cars and can add security. Thieves won’t steal a car they cannot start.
• For advanced protection, install a GPS or radio frequency tracking system in your vehicle to help police find it.

The top three most stolen vehicles for 2008, according to the NICB, are the 1994 Honda Accord, 1995 Honda Civic, and 1989 Toyota Camry. These older cars tend to be more popular than new cars because their parts can be sold for a higher value. Also, anti-theft technologies in new cars have made it more difficult for thieves to steal.

If you are in the market for a used car, see our used car buying advice.

—Liza Barth  

User forums: What are car buyers and owners talking about?

This summer has been a busy one in the automotive world with the Cash for Clunkers program in full swing, new model year announcements, and deals that have sparked new and used car buying. There are a number of active discussions in our forums. Check out the conversation and add in your opinion. In addition, online subscribers can interact with our test team in our The right car for you, John’s Toolbox and TireTalk forums.

Here is what our readers are talking about.

New car buying & leasing
Readers share their experience with the Cash for clunkers program and seek advice on which new cars to purchase. 

Used car buying & selling
Is a used car extended warranty worth it? Join the discussion.

Small cars
Which small cars are good for winter driving? Our readers weigh in. 

SUVs
Headed off the beaten path this summer?  Find out which SUVs are secure and sturdy for off-roading.

GPS navigation
Need direction?  Learn about features, brands and upgrades.

Also, check out some of our recent blog entries that have people talking.

Reality check: 230 mpg in the Chevrolet Volt?

GM & eBay: Is online buying a good idea?
 
Cash for clunkers: How CARS could have helped me 

Consumer Reports Index–Used-car sales to rise in August

New cars sales saw a significant spike in July as shoppers were drawn to dealerships by deep year-end discounts and the Car Allowance Rebate System (CARS) program, popularly known as cash for clunkers. However, used-car sales are expected to dominate in August, according to the latest Consumer Reports Index.

A new monthly economic survey, the index tracks U.S. consumers’ personal financial experiences, attitudes, and activities. It is comprised of five key indices: the Sentiment Index, the Trouble Tracker Index, Stress Index, the Retail Index, and the Employment Index. (See the full report “Consumers aren't so upbeat, new Consumer Reports Index shows.”)

This month consumers are feeling less well off then they were several months ago, and this is influencing their purchasing behavior. Lower-income households, earning less than $50,000 a year, have been disproportionately affected by the economy.

Among recent interviewees, 3.2 percent plan to purchase a used car in the next 30 days, compared to 1.8 percent intending to buy a new car. In July, the responses were 4.1 percent new and 3.8 percent used signaling a significant change for the weeks ahead.

As the end of summer fast approaches, there are traditional close-out deals on 2009-model-year vehicles, however there are far fewer fuel-efficient models from which to choose compared to just a couple weeks ago. Those shoppers looking for low-cost transportation are being driven to the used market, where you can traditionally buy more car for your money and right now, there is greater selection.

The Consumer Reports Index is based on a nationally representative random probability sample of U.S. telephone households. The August ‘09 index is based on a total of 1,009 interviews, was completed between July 30 and August 2, 2009.

—Jeff Bartlett with the Consumer Reports National Research Center

Back to school: Tips for choosing the right vehicle for a young driver

For some students, going back to school may mean getting a new or new-to-them set of wheels. There are many factors to consider in choosing the right model for a young driver, though a used car is a smart place to start. A 2-3 year-old pre-owned vehicle can be a good value since it likely still has some factory warranty left and usually comes with cheaper insurance and taxes than a new vehicle. In addition, a used vehicle has already taken its biggest hit in depreciation and there may be less family stress over preserving it in showroom-caliber condition.

Buying used is often a way to get a better-equipped vehicle than you'd be able to afford new. Features such as electronic stability control, side curtain air bags, and antilock brakes are important especially for an inexperienced driver. These valued safety features will be more readily found on recent models. Buying a car for a young person is a compromise on features, style, and budget, but you should jump through hoops to buy a vehicle with the most safety features you can afford, plus good crash protection. Our model overview pages present crash test results from the Insurance Institute for Highway Safety and the National Highway Traffic Safety Administration, as well as our own dynamic test findings. 

Reliability is another key consideration when looking for a used car. You want a car that will last long and have few problems.

To make your search simple, see our list of best and worst used cars to find the most reliable vehicles that also scored well in our testing. Or target the best used cars for under $20,000. 

Besides safety and reliability, young drivers need versatility to transport luggage, furniture, and people—especially those who are heading off to college. Sedans and hatchbacks are good choices that offer additional cargo space when the rear seats are folded and roomier trunks. We do not recommend your young driver get into SUVs or pickups since they can have trickier handling and are more prone to rollovers. Sporty cars are too tempting to be driven fast and have a high crash and insurance rates. Plus, their fuel economy lags behind smaller vehicles.

Check out our list of recommended cars for teens and our best used car deals to find the models that will best suit your needs and wallet.

—Liza Barth

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 important, 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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

--—Eric Evarts

Video: Selling a GM car?

Now is not the best time to be selling a General Motors car, especially if it is a Hummer, Pontiac, Saab, or Saturn. Through the bankruptcy process, it is expected that GM vehicle values will be diminished. However, loyalty-based incentives may offset some of the declined values, rewarding current customers for trading in a GM model for a new one. Once the “new” GM rises from restructuring, its used car values may increase slightly for those core brands it will retain: Buick, Cadillac, Chevrolet, and GMC.

In general, car values are all about supply and demand, though right now consumer confidence is playing a role, as well. In a random, nationwide Consumer Reports pulse survey, more than three-quarters (78 percent) of respondents said they were unlikely to consider buying a new car from an automaker in bankruptcy; 64 percent were very unlikely. We expect confidence will increase should a leaner, stronger GM emerge from bankruptcy. As seen with Chrysler, the uncertainty of what will happen proved a greater sales deterrent than the bankruptcy proceedings itself, and the same may prove true with GM. (Read: "Chrysler Group emerges from bankruptcy.")

Another key factor will be how dealers whose GM franchise license will not be renewed choose to proceed. Some may close shop, others will focus on other brands. However, many may convert into used car dealers, with a GM specialty. Such dealerships will be more welcoming of GM trade ins, plus be able to provide parts and service.

The rules for car buying and selling have become a bit more complicated with GM products, though the principles remain the same. Research the value for your vehicle if interested in selling or trading in, then compare those values against your local market, seeking multiple offers through new and used car dealerships. Don’t judge by classifieds listings, as those only indicate what people will accept for their vehicles, not what they actually sell for.

And don’t let your desire for a great deal on a new vehicle overshadow the need to get a fair deal on the trade in. Keep the transactions separate in your negotiations, and remember, you are driving the deal, not the other way around.

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

—Jeff Bartlett

Earth Day: Recycling your car

This Earth Day we are reminded to care for our environment and do our part to make green choices. There are a number of programs available to recycle every day products and consumer electronics, but you can also do your part when it comes to your car.

A number of charity organizations offer a car donation program where you can get rid of your car and possibly take a tax deduction (consult your accountant), while helping those in need. One example is Kidney Cars, which recycles 15,000 cars a year, plus 60,000 tires, and 30,000,000 pounds of steel. Donated vehicles are either sold at auction or parts are sold out and salvaged. Money from the parts and cars is used to fund research, disease screenings, and education. Google to find other local and national charities that could be supported through vehicle donation. Seek established organizations with a good reputation, ensuring your donation provides the assistance you intend. 

Besides donating an unwanted car, there are a number of ways to recycle what goes into and on your car.

Antifreeze and motor oil: If a service station drains the radiator or changes your oil, make sure they plan to recycle or dispose of it properly. Some states require this. If you do the work yourself, find a collection center to take it to. Just two gallons of used oil can generate enough electricity to run the average household for almost 24 hours.

Batteries: Take the old battery back to the place of purchase--often there will be a rebate incentive to do so. You can also look in your local phone book for recycling centers. 

Tires: Typically, when you buy a new set of tires, the local store will recycle the worn set. If you have extra old tires, contact a tire store to see if they will accept them. Check with your town to see if they have a special day for items not accepted in the regular trash collection, or drop-off center.

See our blog "New life for recycled motor oil, batteries, and tires", for more information on how these products get new life when they are recycled.

To learn more about recycling, visit Consumer Union's Web site Greenerchoices.org.

—Liza Barth

Q&A: Am I better off buying a used car?

Am I better off buying a used car?

Buying a late-model used car instead of a new one can save you thousands of dollars over the first five years of ownership, assuming it has low mileage and modern safety features. That's because it has already taken its biggest hit in depreciation. If a car hasn't been well maintained, its reliability and value are wild cards. Before you buy any used car, ask a qualified independent mechanic to inspect it.

See our list of the best and worst used cars to find a reliable model.

What is the real deal with buying a demo car?

We are currently in the midst of one of the greatest buyers’ markets in the last century. (Read: How to buy a car in today’s market.) Dealer inventories are swollen, cash and financing incentives can be found on even the most popular and fuel-efficient models (though not all buyers may qualify), and dwindling sales mean more negotiation room for buyers. Plus, innovative new offers are competing for consumer attention, such as Hyundai’s Assurance Plus program; some inventive pitches are even happening at the local level.

During a recent roundtable discussion with our Auto Price Service customer service representatives, I learned that we’ve been receiving calls from customers who visited dealer lots and were presented with an opportunity to buy a "demo" model. Unlike a truly new or traditional used car, it can be trickier to assess the value for a "demonstrator".

What is a demo car?

Demos are new cars that have been driven by the dealership's staff or as test-drive vehicles by interested customers. Often they are used as a salesperson’s personal vehicle and can have hundreds to several thousand miles on them.

Since a demo can have several thousand miles on it, is it technically a new or used vehicle?

If the vehicle has never been registered (regardless of how many miles are on it), the vehicle is legally considered new. Once it has been registered, it’s legally a used car, therefore its future value is reduced by the mileage and any wear and tear.

How much should it be discounted?

There is no rule of thumb for how much money should be deducted from the invoice price when negotiating to purchase a demo. However, keep in mind that a dealer should be extra motivated to move it, especially in today’s market where sales are down and even the top-selling vehicles aren’t selling the way they normally do. Expect the price to be between the vehicle’s new and used-car value, or notably less than the Consumer Reports Bottom Line Price.

When does the warranty begin if the car has 5,000 miles? Does the warranty extend beyond the normal maximum mileage?

Unfortunately, despite the mileage that is already on the vehicle, there is no free extension to the manufacturer’s warranty. In fact, it is not unusual for a demo to be driven “hard” and as a result have some wear and tear that may not be noticeable at first glance. For a fee, the dealer will be more than happy to sell you and extended warranty, but most are a poor deal.

The bottom line

In today’s car market, where dealers are highly motivated to move vehicles, you should be able to get an unblemished new car at a great price. If you are particularly intrigued by a demo, we’d suggest you start negotiations by making an offer below the Consumer Reports Bottom Line Price. Be sure to ask for all the maintenance records and don’t hesitate to request even the basics, such as an oil change and detailing.

If you don’t mind getting a car with mileage on it, you should also consider a reliable used car from a recent model year. Late-model used cars can be a great buy due to the fact that they have already gone through the period of greatest depreciation (the first 2-3 years), yet still offer contemporary levels of comfort, fuel economy, safety, and performance. For example, 2007 models are, on average, 37-percent cheaper than their original MSRP, and if properly maintained, can provide many years of reliable transportation.

--Mike Dempsey