2007 Chevrolet Avalanche Test Drive

Despite a more civilized demeanor, the new Chevy Avalanche maintains its unique versatility and raucous persona.
MSRP: $32,460 - $36,165

Trading a little of its maverick character for a dash of distinguished poise, the redesigned 2007 Chevrolet Avalanche has become a stronger player in a growing market of luxury-appointed four-door pickups. Its added refinement won’t shock the system of the Mountain Dew-chugging target customer, as the Avalanche remains rugged and highly useful for unwieldy recreational and utilitarian demands.

Its individuality hinges on an innovative "Midgate," a fold-down wall behind the rear seats that extends the pick-up bed by several feet and offers numerous passenger/cargo configurations. And now that the Avalanche occupies a place on GM’s growing roster of FlexFuel vehicles, which can operate on E85, the corn-based fuel composed of 85 percent ethanol, the Avalanche seems to court “green” shoppers as well.

Following sales of about 400,000 units in five years, the Avalanche enjoys one of the industry’s highest customer-retention ratings. This loyalty could be due to the fact that, for drivers with such particular requirements in a vehicle, there aren’t too many other options. The Honda Ridgeline looks somewhat similar, and is competitively priced, but it doesn’t offer the Midgate functionality. And the Cadillac Escalade EXT does allow its pick-up bed to extend into the cabin, but at a far higher price.

Built in Silao, Mexico, the new Avalanche is available in LS, LT and LTZ trim levels with two- or four-wheel drive. The base LS is well equipped with disc brakes at all corners, a 320-hp 5.3-liter V8, GM’s OnStar communications and diagnostics system, stability control, a tow hitch, CD player and cloth-upholstered front/rear bench seats. All of these features are available at the starting manufactuer’s suggested retail price (MSRP) of $31,615 for two-wheel drive; four-wheel drive tacks on $3,000 for all trims.

The LT models give buyers the opportunity to pile on luxury amenities. LT1 upgrades to cloth bucket seats, 17-inch alloy wheels and power mirrors. LT2 adds leather, automatic climate control and a six-disc CD changer. LT3 adds side-curtain airbags, heated seats, Bose seven-speaker premium audio, power adjustable pedals, XM satellite radio and ultrasonic rear parking assist.

The fully-optioned LTZ sports all of the LT3 features plus an Autoride suspension, a real-time damping system that also levels the vehicle’s ride height when towing or carrying heavy loads. Chevrolet expects most customers (75 percent) to opt for the mid-level LT setup with the remaining split evenly between the base LS and decked-out LTZ. A new, all-aluminum 6.0-liter V8 rated at 366 hp is available in the popular Z71 off-road package.

Our test model was an LT3, packing four-wheel drive and such options as a navigation system, 20-inch wheels, rear-seat DVD player, sunroof, locking rear differential, rearview camera, luggage rack and rain-sensing wipers for a total MSRP of $45,600. It’s not Cadillac Escalade territory, but ten grand more will put you into an Escalade EXT, if that matters to you. And the Escalade EXT is basically a dressed-up Chevy Avalanche.

Exterior

When compared to the outgoing model, sleeker styling and all-around tighter tolerances improve the Avalanche’s appearance. The formerly hard edges have been replaced with rounded corners that contribute to a less tense design overall. The original trapezoidal headlights later found on so many other Chevy trucks are now less angular and better complement the horizontal front grille and bulging hood.

The sides of the pick-up bed are still tall and deep, requiring a tip-toeing 58-inch lift-over effort to place cargo inside. Long arms are also handy for reaching inside the bed’s lockable side storage bins. The massive tailgate is easy to operate, thanks to a torsion spring in the hinge, and it thoughtfully locks and unlocks along with the doors remotely. The entire bed can be secured with a rigid, removable three-piece cargo cover.

The cargo bed is the Avalanche’s crowning achievement. The 5’3” hold stretches almost three feet, to 8’2”, when the midgate is lowered. Operation is simple: First, flip and fold the 60/40 split, rear bench seat. Then turn a knob in the middle of the Midgate crossbar and gently lower the panel that divides the cabin from the pick-up bed. That’s it.

The same stout composite material that lines the cargo bed continues into the cab and features the identical tractor-tire tread pattern for skid resistance. With the rear window and cargo cover in place, unwieldy objects like surfboards, dining room tables, large fluorescent light bulbs and 4x8 sheets of plywood can be swallowed whole and securely locked.

The cabin’s rear window can be removed and stored to accommodate bulkier cargo, or to provide an open-air ride. The Avalanche doesn’t offer a power rear window like the competing Hummer H2 SUT, but Chevy says owners keep the window in place 90 percent of the time and, when necessary, leave the midgate down and cargo-bed cover in place to maintain security while carrying larger items.

Interior

Compared to the previous model, the 2007 Avalanche’s interior styling is more contemporary and materials have been upgraded, although neutral-colored plastic remains the norm. While it offers a commanding driver’s position, the Avalanche’s rear visibility is compromised by the tall side panels and bed. Thankfully, the optional rear-view camera gives a clear view when the transmission is shifted into reverse. It also makes aligning the tow hitch with a trailer much easier.

The Avalanche is roomy, easy to drive and very much in its element on long road trips. There’s considerably less wind and road noise than in the old Avalanche cabin, and easy-to-use controls and a compliant suspension make cruising quite comfortable. The navigation and Bose audio systems likewise help in this regard. A new rack-and-pinion steering provides ample feedback from the road, and the brakes — which have long been a sore point in GM trucks — finally inspire confidence with a solid, linear pedal feel. In crowded urban driving or parking garages, however, the Avalanche’s 18.5-foot length, muscular bulk and 43-foot turning circle can be frustrating.

Performance

As with the previous model, it can also be a little frustrating to pull away from the gas station in the Avalanche as you watch the fuel needle plummet towards “E.” My 753-mile trip over California coastal highways used 47.5 gallons of regular gas, equating to a rather dismal 15.9 mpg.

After finding California’s only E85 pump (at the time), I logged another 219 miles on the highway and spent 19.2 gallons, achieving an underwhelming 11.4 mpg. There is no loss of power when using E85, as the Avalanche’s engine is designed to take advantage of the fuel’s higher octane level.

Despite the current positive publicity generated by automakers and corn farmers around the renewable nature and reduced emissions of E85, if this fuel isn’t at least 28 percent cheaper than regular gas, there are no financial benefits to using it.

E85 cost $3.15 a gallon at the Regional Transportation Center in San Diego at the time of the fill-up, compared to $3.39 for regular gasoline. The week before, E85 was 50 cents cheaper; the week after I visited, 22 cents higher. The owner of the fueling station said that in order to promote E85, he never sells it for more than regular unleaded.

Full-size trucks that have the ability to tow 8,000 pounds or haul a 1,400-pound payload probably aren’t going to offer 30 mpg or better anytime soon. It’s a reality that truck owners accept, in exchange for a vehicle that serves serious recreation and utility needs, or the needs of their ego.

But the changing customer base has demanded a quieter, more refined ride, plus more comfort and amenities. And the Chevrolet Avalanche proves to be more than capable of delivering on these requests.
(C)Forbes

Most Expensive Cars to Insure

High-priced cars aren't just expensive to buy — they can cost a lot to protect, as well.

The more expensive the car, the more it costs to insure. But just how expensive may come as a shock. For modest coverage ($500 deductibles on collision and comprehensive coverage, $100,000 each for personal and property coverage, and $25,000 each for medical and uninsured coverage) on this year's $135,400 Mercedes SL, owners will pay about $22,536 a year.

For pricey cars like this, yearly insurance costing 20 percent of the base price is typical. But for those with low monthly payments on high-end cars, that could mean spending more on insurance than on the car itself.

"The cost of the vehicle is primary when setting the price of a policy," says David Wurster, president of Vincentric, a Detroit-based automotive data firm that studies car insurance costs. Vincentric gets its data from state agencies and averages these figures in compiling its list of most expensive yearly rates. "But there's also the type of vehicle it is. Sports car owners tend to drive them a little more aggressively."

This, in turn, leads to higher-priced policies. With this in mind, it's no surprise that racy offerings from Mercedes-Benz, BMW and Porsche make for some of the most expensive cars to insure.

How It Works
"We start with the manufacturer's suggested retail price," says Kip Diggs, a spokesman for State Farm, the largest insurer of autos in the U.S. Diggs says State Farm then considers how expensive it is to repair each model. The more costly the parts, the higher the policy. For foreign brands with parts from afar, expect to pay more. "From there," Diggs says, "we look at safety features to see if a vehicle qualifies for a safety discount."

Allstate, the second-largest U.S. car insurer, also considers the price, but places more weight on a policyholder's driving record.

"Pricing has more to do with the driver than the car," says spokesman Raleigh Floyd. "If there are two drivers with the same car, the driver with accident histories will have a higher rate. He's shown himself to be a higher risk." Those with a penchant for wrecking Ferrari Enzos on California's Highway 1, for example, can expect to pay more.

Age is also a factor. "A 17-year-old driver is going to be more expensive to insure than a 40-year-old with a family," says Floyd. "Experience counts. It counts a lot."

There are some anomalies in the ranking.
"You would think a Corvette Convertible would be hideously expensive to insure," says State Farm's Diggs. "But that car is involved in very few accidents, so it's fairly low." This is because research shows Corvettes typically aren't driven every day.

More utilitarian models like the Toyota Camry can be more expensive to insure because, with more road time, they are more likely to be involved in an accident. Vincentric doesn't collect data on exotics like Ferraris and Lamborghinis because, says Wurster, there are too few owners to make the data useful.

Policy pricing also has to do with where a car is garaged, with urban areas considered higher-risk. "In a more concentrated area, your chances of bumping into something are higher," says Floyd. "Jersey's going to be on one end of the spectrum, and a less populous state is going to be on the exact opposite."

But if you have a hundred grand to spend on a car, you're probably not worrying about insurance.

"For people of that caliber," says a salesman at Mercedes-Benz Manhattan, "the cost of insurance really isn't an issue."

1. Mercedes SL Class and S Class
SL Class (pictured)
MSRP: $135,400
Insurance: $22,536

S Class
MSRP: $123,888
Insurance: $21,161

The convertible SL is Mercedes' most expensive production offering. A two-door roadster built for speed, the SL features a 5.5 liter V8 engine. The retractable hardtop roof is classier than its canvas counterparts, and the trunk is surprisingly spacious. The S Class sedans, while no less luxurious (and only slightly less expensive), aren't quite as sporty. But with the Benz logo front and center, they're not cheap to insure.

2. Mercedes CL Class
MSRP: $122,050
Insurance: $20,942

Who said coupes were small? Mercedes' CL is based on the stately S Class sedans, but sports only two doors for a sleeker profile. Zero to 60 in 5.4 seconds will get you to the office in time, but it comes at a price. With a monster V8 engine, the federal gas-guzzler tax applies. And then there's the insurance.

3. BMW Alpina B7
MSRP: $115,000
Insurance: $20,100

Good luck getting your hands on an Alpina B7. BMW is only selling 200 in the U.S. A souped-up version of the 7-series full-size sedan, the Alpina features bigger wheels, better suspension and an advanced stabilization system. All of this makes going fast a bit safer. But speed comes at a price.



4.BMW M5 and M6
M6 (pictured)
MSRP: $102,000
Insurance: $18,548

M5
MSRP: $82,500
Insurance: $16,220

The M Series cars are meant to go fast, and for insurers, speed is dangerous. The flagship M6 hardtop coupe is arguably the fiercest-looking BMW to roll off the production line, and inarguably one of the priciest. Both the M6 and the more practical M5 sedan have roaring V10 engines.

5. Mercedes G Class
MSRP: $95,600
Insurance: $17,784

The G Class is a boxy, military style SUV from Mercedes. Indeed, it was originally designed for the battlefield. But don't let the lack of finesse fool you--today the G Class is all luxe. The door handles are wrapped in leather, and a DVD-based navigation system keeps drivers on target.



6. Audi S8 and A8
S8 (pictured)
MSRP: $92,200
Insurance: $17,353

A8
MSRP: $92,000
Insurance: $17,353

The A8 and its fancier cousin, the S8, are the best Audi has to offer, and they're not half bad. The V10 in the S8 make this sedan faster than the Porsche 911 Carrera in a zero-to-60 sprint. And with enormous cast-aluminum tires concealing oversize brake discs, even speed demons can stop on a dime.

7. Cadillac XLR
MSRP: $87,898
Insurance: $16,973

The only American entry on the list, Cadillac's XLR is a serious roadster meant to rival its European competitors. The V8 is plenty strong to pull the light aluminum chassis, and the interior is posh--trimmed with eucalyptus. A retractable hardtop makes the XLR a speedy option in any weather, and there's also an exclusivity factor: GM is planning to sell only 1,000 a year.

8. Porsche 911
MSRP: $91,208
Insurance: $16,955

The fundamentals of Porsche's 911 have hardly changed over the years, and with good reason: Its teardrop shape keeps it aerodynamic and recognizable, and its hardware keeps it among the fastest cars in the game. Today's iteration comes equipped with Porsche's Active Suspension Management system, which adapts the suspension to match road conditions and driving styles.

9. Jaguar XK
MSRP: $83,335
Insurance: $16,154

The XK, in coupe or convertible, is a brand-new offering from the storied Jaguar brand. Designed to recall the XKE of the 1960s, today's XK appears perhaps a bit too similar to its countryman, the Aston Martin. That doesn't stop it from performing. The V8 propels a relatively light frame with ease, and this two-seater is the most teched-out Jag ever built, with a computer adjusting it to Comfort or Sport modes.

10. Land Rover Range Rover
MSRP: $84,285
Insurance: $16,042

One of only two SUVs on the list, the Range Rover is capable of climbing mountains, but more at home in the city. Four-wheel drive and a supercharged V8 make this among the most powerful production vehicles on the market, while options like Sirius satellite radio and a rear-seat DVD system ensure creature comforts are never far off.
(C)Forbes

Most Affordable Luxury Cars

Entry-level luxury cars offer most of the bells and whistles of higher-end models, but at a reasonable price.

Preparing to plunk down $61,715 on a brand-new Lexus LS 460? Save your money. Instead, buy a $30,000 IS 250. Toss in another $5,000 worth of options, and you get the prestige of the Lexus plus many of the same bells and whistles, including heated and ventilated front seats, bi-xenon headlights and an optional sound system that includes a DVD player.

Call it the trickle-down theory of economics for cars. For a fraction of the price of their more expensive counterparts, entry-level models are getting top-of-the-line features.

Consider the 2008 Cadillac CTS. It allows customers (with some options) to play music off an iPod, a memory stick, a CD, satellite radio or terrestrial radio. It even allows the customer to pause and rewind live radio broadcasts.

The $32,500 (estimated) car, which goes on sale in August, also boasts an innovative "infotainment" system that uses several digital formats. Besides music, the dashboard system can play DVD movies when parked. The optional navigation system runs off the car’s hard drive, as opposed to a removable DVD or CD-ROM. As technology improves, customers will someday be able to download updates wirelessly.

It makes sense that starter luxury cars are increasingly being outfitted with top-of-the-line features, says George Peterson, president of Tustin, Calif.-based auto industry consulting firm AutoPacific.

"Entry-level luxury cars need to demonstrate the capability of their brand — just as the more premium entries do," he says. "As more and more has been added at the top of the pile... these features become expected as part of the standard [or typical] feature load of even the lowest level luxury-brand vehicle."

Examples for the mechanically inclined include: six-speed manual transmissions or automatic transmissions with up to seven speeds that you can shift manually if you want.

To get more than four automatic gears or to shift your automatic manually, you used to have to buy a Porsche with a Tiptronic transmission, or a six-speed BMW, or even a Ferrari, with Formula One racing-style "paddle" shifters mounted on the steering wheel.

Technical Touches

But as much as transmissions have improved, nothing is trickling down faster in this digital age than electronic gizmos, especially car stereos, and new-and-improved navigation systems.

It takes three to five years for automakers to make substantial changes to the car itself, but the lifecycle for electronics gear can be six months long, says J. Ferron, automotive partner at PricewaterhouseCoopers in Detroit.

"So there's an eight times shorter cycle [for electronics]," Ferron says. "There’s a collision between that and what’s shaped in the marketplace in terms of customer expectations versus what a car can do."

Some of the vehicles on this list can have 10 or more audio speakers, as much wattage as an in-home system, half a dozen ways to download and swap music between formats, plus many different ways to control it — buttons on the dash, buttons on the customer's MP3 device, buttons on the steering wheel or even voice control.

Sounds great, but keep in mind that "entry level" is a relative thing. The most expensive car on our list is the redesigned 2008 Porsche Cayenne, at $44,295 (including required $895 delivery). That’s not cheap, but it's the least-expensive Porsche. All the cars (and two trucks) here are the least-expensive new models offered by their respective luxury brands. Since it’s nearly fall, most are already 2008 models, but a few are 2007s, pending model year changeover.

The least expensive overall is the little Volvo C30, an all-new 2008 model, at $23,395 (also including delivery). Even so, it comes standard with a six-speed manual transmission, a feature that once was found only on high-end BMWs.

"These entries today need to be fully featured and are," says Peterson. "They need to support their brand identity and mostly do."

Audi A3 2.0T
Starts at $25,340

The 2007 A3 has several features that once were found exclusively on more expensive cars, like a six-speed manual transmission; an optional six-speed automatic, which can be shifted manually; and electronic brake-force distribution to reduce skids. Thanks to turbocharging, the A3's standard four-cylinder engine produces 200 horsepower. Optional upgrades include a more powerful six-cylinder engine with Audi Quattro all-wheel drive.

BMW 328i
Starts at $33,175

The least-expensive BMW--until the 1 Series lands next year--the 2007 328i has a 230-hp, six-cylinder engine. A six-speed manual transmission is standard. The optional six-speed automatic has a "Steptronic" mode, for manual gear selection without a clutch. High-tech brakes include Brake Standby, which almost but not quite applies the brakes when the driver suddenly lifts off the accelerator pedal, anticipating hard braking.

Cadillac CTS
Starts at $32,500 (estimated)

Sales of the 2008 model start in September.

The 2008 CTS, with a 304-hp, 3.6-liter V-6 engine, is a redesigned model. Its innovative "infotainment" system uses several digital formats. Besides music, the dashboard system can play DVD movies when parked. The optional navigation system runs off the car's hard drive, as opposed to a removable DVD or CD-ROMs. As technology improves, customers will someday be able to download updates wirelessly.

Infiniti G37
Starts at $32,000 (estimated)

Sales of the 2008 model start in August.

The G37 Coupe, with a 330-hp V-6 engine, replaces the 2007 G35. Optional features include advanced four-wheel active steering, where the rear wheels help steer the car. Like the Cadillac CTS, the optional navigation system shows "3-D" landmark buildings. And like some more expensive cars, the G37 has optional "intelligent cruise control," which, within limits, maintains a set distance to the vehicle ahead.

Jaguar X-Type 3.0
Starts at $34,995

X-Type sales are down more than 40% year to date through May, but the entry-level 2008 model Jag has its fans. The X-Type has standard all-wheel drive, which is unusual but "trickling down" among luxury cars. Other upscale features include electronic brake force distribution to prevent skids, wood trim and a 120-watt sound system.


Land Rover LR2
Starts at $34,700

The smallest Land Rover is an all-new 2008 model, with a 230-hp, 3.2-liter V-6 engine. Like its bigger siblings, it can "wade" across streams up to about 20 inches deep. Its six-speed automatic transmission has different settings for different slippery conditions. The LR2 isn't exactly roughing it, however: It has a nine-speaker, 320-watt audio system with an MP3 plug-in.

Lexus IS 250
Starts at $30,970

The 2007 Lexus IS 250 has a once-rare six-speed manual transmission, plus a 204-hp, 2.5-liter V-6 engine. An optional luxury package includes features that were scarce a few years ago, like heated and ventilated front seats; bi-xenon headlights; adaptive headlights, which redirect the beam of light around a corner for better visibility. An optional sound system includes DVD-audio and DVD-video playback.

Lincoln MKZ
Starts at $29,305

The 2008 MKZ on sale now has a powerful, 263-hp V-6 engine and a size advantage over some of its entry-level competitors. Options include a thumping 600-watt, 14-speaker audio system.




Mercedes-Benz C300
Starts at $31,975

2008 model goes on sale August 7.

The 2008 C300 Sport Sedan, the first all-new C-Class since 2000, has a 228-hp, six-cylinder engine. (There is also a slightly pricier "Luxury" variant.) Features from the flagship S-Class include a computer hard drive for the optional navigation system. "Selective damping" debuts first on the C-Class. It automatically provides a stiffer ride in sporty driving and a softer, smoother ride for highway cruising.

Porsche Cayenne
Starts at $44,295

The 2008 Cayenne, on sale now, is a new generation of the Porsche SUV. The priciest vehicle on our list is the third most powerful (after the Cadillac CTS and Infiniti G37), with a 290-hp, 3.6-liter V-6 engine. It goes from zero to 60 mph in 7.5 seconds, one second faster than the old Cayenne. Bi-xenon headlights are standard.


Saab 9-3
Starts at $26,995

The Saab 9-3 2.0T Sport Sedan has a 210-hp, turbocharged, 2.0-liter four-cylinder engine.

A six-speed manual transmission is standard. A five-speed automatic with manual shifting capability is optional. A 150-watt, seven-speaker audio system is standard. A nine-speaker Bose system is optional. Like most luxury cars, even entry-level ones, anti-lock brakes, traction control and stability control are standard.

Volvo C30
Starts at $23,395

Even the cheapest of our entry-level luxury cars has a six-speed manual transmission standard. Volvo calls the base model "Version 1.0." The upgraded model is "Version 2.0." A five-speed automatic with manual-shifting capability is optional. A turbocharged, five-cylinder engine previously shared with some of the bigger, more expensive models produces 227 hp. A glass hatchback is probably the single most distinguishing feature.
(C)Forbes

Top 10 Off-Road Luxury SUVs

Ironically, some of the most luxurious and expensive SUVs are the best equipped for dirty off-road duty — not that most drivers will ever test these capabilities.

Even though most drivers would shudder at the thought, some of the priciest, most luxurious SUVs relish trouncing through mud, bounding over boulders and powering up steep inclines. Think of them as well-mannered brutes, frustrated for lack of opportunity to display their brawn.

As car buyers abandon truck-based SUVs for car-based ones — called “crossovers” by industry insiders — to gain more on-road comfort and capability, it’s the costlier truck-like models that continue to flaunt true rock-crawling abilities. (Click here to read about the difference between car- and truck-based SUVs.)

“This is the carryover from the idea that any ‘real’ SUV had to be able to get to the top of the mountain with its 4x4 system,” says George Peterson, president of AutoPacific Group, a California-based automotive research firm. In many ways, this makes a luxury SUV the vehicular equivalent of costly professional-quality stove and oven ranges sold to wealthy people who don’t cook much but would like to think they have the tools to whip up a gourmet meal if the need ever arises.

“Substantially less than 10 percent [of luxury SUV owners] indicate that they actually go off-roading,” says AutoPacific’s Peterson. “We actually think that the percentage that actually off-roads is less than 5 percent, but we have to go with what the owners report.”

While some lower-cost SUVs like the Jeep Wrangler and Nissan Xterra boast the largest percentage of “real” off-roader enthusiasts — Jeep says 60 to 80 percent of Wrangler owners take their vehicles to the trails — some large luxury models are equipped to tackle tough terrain. “The price of a Land Rover has always been higher than many other four-wheel-drive vehicles, based not just on luxury but on capability,” says Bob Burns, off-road events manager for Land Rover North America. “Range Rover customers want to buy the best and want to experience what their vehicles are built to do.” Go to the Land Rover Showroom to compare prices for different models.

Land Rovers have the highest off-road penetration among luxury SUVs, with 26 percent of all LR3 owners engaging in “real” off-roading, and 22.2 percent of all Range Rovers and 14.8 percent of Range Rover Sport drivers occasionally leaving the pavement. By contrast, the study found that no Cadillac Escalade EXT, Infiniti QX56 and Volvo XC90 owners ever venture off-road. (See the chart below for more data.)

Defining 'Off-Road'

How motorists define off-road driving affects those numbers. “Off-road for some of these folks could be in the shopping mall parking lot,” Peterson says. “We try to get at that by differentiating ‘real off-roading’ with ‘getting to fish/camp/hike sites’ in our study.” In other words, AutoPacific defines “real” off-roading as driving on rugged off-road trails, versus merely traversing a dirt or gravel path to access a fishing, hiking or camping site, for instance.

“The definition of ‘off-road use’ varies greatly, and we’re OK with that,” says Land Rover’s Burns. “Some customers consider it to be the snowy driveway to the ski house, while others may well define it as scaling the Sierra Nevada mountain range.”

Industry analysts agree that among all luxury SUV brands, Land Rover does the best job of creating an active community of off-roaders. For starters, most dealerships maintain their own off-road test courses, which can range from a simple hill climb to a full-blown facility for buyers to test their vehicles’ mettle and their own fear threshold. Beyond that, Land Rover dealers help make sure their customers have access to an assortment of off-road events and excursions.

“Our owners have the option of learning how to drive their vehicles off-road at a driving school, a retailer-organized event, or they can take a dive off the deep end by signing up to attend a Land Rover Adventure,” Burns says.

SUVs have been around for decades, arguably starting with limited but growing enthusiasm for truck-based station wagons post-WWII that were generically called “Suburbans” (long before Chevrolet trademarked the name. Luxury SUVs are a more-recent phenomenon. Born out of the SUV boom in the 1990s, today every mainstream luxury brand except for Jaguar offers at least one SUV.

Kings of Off-Road

Vehicle	Percent of owners who drive off-road
Acura MDX	1.4%
BMW X3	7.4%
BMW X5	4.3%
Cadillac Escalade	2.2%
Cadillac Escalade EXT	0.0%
GMC Yukon XL	6.1%
Infiniti FX	2.2%
Infiniti QX56	0.0%
Land Rover LR3	26.0%
Land Rover Range Rover	22.2%
Land Rover RR Sport	14.8%
Lexus GX 470	6.1%
Lincoln Navigator	9.1%
Mercedes M-Class	3.1%
Porsche Cayenne	10.5%
Subaru B9 Tribeca	3.5%
Volkswagen Touareg	9.8%
Volvo XC90	0.0%
Average Luxury SUV	7.15%

What to Look for

There are some basic parameters that every SUV must have for serious off-road duty. Primary among them is a four-wheel-drive system with low-range gearing that enables a slow crawl often needed to negotiate rough terrain.

Other important specifications include ground clearance, approach and departure angles, and fording depth. Go to the next page for definitions of these terms. A host of expensive accessories are available to improve off-road performance and safety. But instead of focusing on expensive add-ons, like brush guards and winches, those serious about off-roading should invest in training, off-roading expert Pietschmann says.

“The main thing you want to have when you’re off-roading is a prepared driver,” he says. “Ninety percent of everything off-road has to do with the driver — only 10 percent depends on the equipment.”

Bill Burke, an off-road driving instructor who runs 4-Wheeling America, in Fruita, Calif., stresses that drivers should adhere to the “three Ps” of off-roading:

• Patience – Drive slowly enough to be able to gauge the terrain and react accordingly.

• Planning – Stop and decide exactly how to negotiate an obstacle rather than just plow forward without a plan.

• Practice – Learn the capabilities of your vehicle and its equipment in safe surroundings before setting out to conquer a remote trail.

It’s also imperative to always be mindful of how the vehicle will impact the environment, Burke says. “Treat the outdoors where you drive like your own home — take care not to damage it or clutter it." Land Rover's motto of “tread lightly” encapsulates this idea.

Prior to the SUV boom of the 1990s, most SUVs were referred to as “four-by-fours,” expressed as “4x4s,” by virtue of four-wheel-drive systems that imbued them with nearly superhuman off-road and foul-weather abilities. Back then you had to get out of the truck and manually “lock” the front wheel hubs to send power to all four corners, however. Today’s 4x4 systems are much more sophisticated and come in several varieties, each of which is skewed more toward either off- or on-road use.

Here’s a quick rundown of the various similarities and differences between the competing types of systems:

• Part-Time 4WD: Typically the most-basic type of 4WD system found on the least-expensive models; the engine powers only the rear axle until the driver pushes a button or shifts a lever to engage the front wheels. Vehicles with this system include the Jeep Wrangler and Nissan XTerra.

• Full-Time 4WD: A driver can choose between rear-drive, 4WD and an “automatic” mode that engages the front wheels as needed when sensors detect wheel slippage. This system typically affords the best compromise between on- and off-road use. Vehicles with this system include the Chevrolet Tahoe and Ford Expedition.

• Permanent 4WD: Found on many higher-priced SUVs, this includes the automatic system mentioned above, but doesn’t offer two-wheel-drive. To some degree, all four wheels receive power at all times. Such systems may or may not include low-range gearing for extreme off-roading. Vehicles with this system include the Hummer H2 and Land Rover Range Rover.

• All-Wheel Drive: Similar to permanent 4WD and available on most car-based “crossover” SUVs and a few truck-based SUVs. AWD not only boosts traction, but also can improve cornering abilities on-road. Some systems vary the amount of power sent to each wheel, individually. Unlike 4WD, however, no low-range gearing is included, which means the system is not intended for serious off-roading. Vehicles with this system include the Buick Enclave, Cadillac Escalade, Lexus RX 350 and Mercury Mountaineer.

Some automakers will refer to their car-based SUVs as having 4WD, when really they’re equipped with AWD. This is a marketing ploy to create a burly image. The rule of thumb is that if it doesn’t include a switch or lever to engage low gear, it’s not a true 4WD system.

About Our Ranking

In our top 10 list of luxury off-road SUVs, we’ve listed the models retailing for $30,000 or more that we feel are the most rugged, based on a combination of personal experience, published performance reports and the manufacturer’s specifications.

We’ve included a few critical specs in that regard for each model on the list: ground clearance, approach and departure angles, and fording depth (see below for definitions of each). Sometimes these numbers are expressed as a range because the measurements either differ from version to version within a particular model line — given different suspension systems, tires and so on — or vary because of features like an adjustable-height suspension. We’ve also included a list of off-road enhancements available as factory options for each ranked model, though separate dealer-installed accessories may also or alternately be offered.

Definitions

• Ground clearance: One of the key specs for those looking to take an SUV off-road, ground clearance refers to the space between the lowest point on a vehicle’s chassis and the ground beneath it. The higher the ground clearance, the less likely the underbody and associated components will sustain damage over rocky and uneven terrain. Generally, this is measured from a point under the differential housing, though on some models this may not actually be the lowest spot, so bring a tape measure with you if you’re serious about comparing various models’ ground clearances. A serious down side to having higher ground clearance is the resulting higher center of gravity, which adversely affects the vehicle's on-road handling and makes it more susceptible to rollovers. Many luxury SUVs offer suspensions that can be lowered for highway use and raised for added off-road clearance at the push of a button.

• Approach angle refers to the steepest incline angle a vehicle can drive up from a flat surface without damaging the front bumper or undercarriage.

• Departure angle is like the approach angle for the back of the vehicle. It refers to the degree of incline a vehicle can negotiate without having the rear bumper or other overhang scrape.

• Fording depth represents the maximum depth at which an off-road vehicle can operate in water. Fording depth is important if you plan to cross creeks and streams along a trail.

10. Volkswagen Touareg
The Touareg hasn't been a big seller, despite being both luxurious and capable. It shares some components with the Porsche Cayenne. A standard 4Motion permanent AWD system enables the Touareg to scale a 45-degree grade; a sophisticated suspension gives relatively responsive on-road handling. Three engine choices include a 310-hp 5.0-liter V10 turbodiesel that generates 553 pound-feet of torque for extreme pulling and climbing power. A freshening later this year will rechristen it the Touareg 2.

Off-Road Specs:
Ground Clearance: 6.3-11.8 inches
Approach Angle: 28-33 degrees
Departure Angle: 28-33 degrees
Fording Depth: 19.7-22.8 inches

Off-Road Options:
Rear Locking Differential ($700)



9. Lexus GX 470
Introduced as a smaller and lower-cost alternative to the LX 470, the GX 470 is essentially a luxury version of the Toyota 4Runner with a V8 engine. A full-time 4WD system is standard, the vehicle's ActiveTRAC technology is able to apply the brakes to a slipping wheel while transferring the engine's power to wheels with better traction. An optional Kinetic Dynamic Suspension System hydraulically controls a set of oversized front and rear stabilizer bars to further enhance its trail response.

Off-Road Specs:
Ground Clearance: 8.3 inches
Approach Angle: 31-30 degrees
Departure Angle: 25-29 degrees
Fording Depth: N/A

Off-Road Options:
Kinetic Dynamic Suspension System ($1,750)



8. Porsche Cayenne
After taking the 2007 model year off, the Porsche Cayenne is updated and reintroduced as an early-2008 entry. As before, it's offered in 290-hp base, 385-hp S and 500-hp Turbo S models, the latter of which boasts the best off-road specs, but is priced just short of $100,000. The Cayenne's sophisticated 4WD system can send up to 100 percent of the vehicle's traction to the front or rear axle if needed. The available Porsche Dynamic Chassis Control (PDCC) system limits vehicle roll on pavement through corners and enables maximum axle articulation and improved traction off-road.

Off-Road Specs:
Ground Clearance: 8.6-10.7 inches
Approach Angle: 28.6-31.8 degrees
Departure Angle: 22.8-25.4 degrees
Fording Depth: 19.7-21.9 inches

Off-Road Options:
Fire Extinguisher ($140); Off-Road Technology Package ($2,640; includes rear differential lock, rocker panel protection, additional skid plates and undercarriage protection); Porsche Dynamic Chassis Control ($3,510); Sportdesign Package with Off-Road ($3,395; includes front and rear lower bumper covers, extended roof spoiler and rocker panel extensions, front and rear stabilizer bars that can be disconnected hydraulically, rear differential lock, additional skid plates and undercarriage protection, headlamp washers, additional tow lug)



7. Mercedes-Benz G500
Derived from a German military vehicle designed in the 1970s, the G500 soldiers on as an unabashedly boxy, low-volume, high-priced and somewhat eccentric luxury SUV. While it offers a comfortable cabin, the G500 remains rugged and is one of the few SUVs of any kind to offer three separate locking differentials for exceptional off-road aptitude. Its 292-hp V8 engine has to work hard to move the un-aerodynamic bulk with authority; the G55 AMG version includes a much-quicker 469-hp supercharged V8, but at a steep price.

Off-Road Specs:
Ground Clearance: 8.3 inches
Approach Angle: 36 degrees
Departure Angle: 27 degrees
Fording Depth: 19 inches

Off-Road Options:
N/A



6. Lexus LX 470
Lexus' upscale version of the venerable Toyota Land Cruiser excels as a posh off-road adventurer, thanks to a hardy, full-time 4WD system that features a locking center differential and four-wheel traction control. A height-adjustable adaptive suspension provides added ground clearance for off-road use. While the 2007 model's 4.7-liter V8 is rather meek at 268 hp, the vehicle will receive a more-powerful 381-hp 5.7-liter V8 engine with its 2008 redesign, which will prompt a name change to the LX 570.

Off-Road Specs:
Ground Clearance: 9.8 inches
Approach Angle: 30-32 degrees
Departure Angle: 23-26 degrees
Fording Depth: N/A

Off-Road Options:
N/A



5. Land Rover Range Rover Sport
This big SUV is sporty by SUV standards, thanks largely to well-balanced handling and strong engines (300-hp V8 or 390-hp supercharged V8). However, the Range Rover Sport can be just as entertaining on the trails. It shares the LR3 and Range Rover's low-range 4x4 gearing, lockable center differential and the Terrain Response system that maximizes performance according to five settings that correspond to different road conditions; three of which are off-road (mud, sand and rocky surfaces).

Off-Road Specs:
Ground Clearance 7.4-9.6 inches (front); 7.9-10.0 inches (rear)
Approach Angle: 30.2-34.0 degrees
Departure Angle: 26.0-29.0 degrees (with spare tire); 13.9-16.9 degrees (with tow bar)
Fording Depth: 27.6 inches

Off-Road Options:
Locking Rear Differential ($500); Dynamic Response Package ($2,000; includes dynamic-response suspension, Brembo front brakes)



4. Land Rover LR3
You could certainly pay less for a midsize SUV, but few combine the inherent luxury and off-road readiness of the LR3. Known as the Discovery in other markets, this upper-crust Brit offers a choice of V6 and V8 engines, with five- or seven-passenger seating. A center-locking differential, a long list of chassis control functions and the automaker's adjustable Terrain Response system combine to deliver secure handling and a smooth ride in a wide range of conditions.

Off-Road Specs:
Ground Clearance: 8.0-10.2 inches (front); 8.4-10.6 inches (rear); 7.3-9.5 inches (under differential)
Approach Angle: 32.2-37.2 degrees
Departure Angle: 24.9-29.6 degrees
Fording Depth: 27.6 inches

Off-Road Options:
Heavy-Duty Package ($625; includes active locking rear differential, full-size spare with alloy wheel)



3. Mercedes-Benz GL450
Introduced for 2007, the seven-passenger GL450 is well suited for both carpooling and off-roading. Unlike most 4x4s, it's built on a reinforced unibody structure that affords more of a car-like feel on pavement than the truck-based competition. Be aware, however, that you'll need to specify the $2,200 Off-Road Package to maximize ground clearance and off-road prowess. A 4.6-liter V8 engine is rated at a hearty 335 hp and comes mated to a seven-speed automatic transmission.

Off-Road Specs:
Ground Clearance: 7.9-10.9 inches
Approach Angle: 33.0 degrees
Departure Angle: 27.0 degrees
Fording Depth: 19.3-23.6 inches

Off-Road Options:
Off-Road Package ($2,200; includes additional ground clearance, locking differentials, underbody skid plates, adaptive damping suspension)



2. Land Rover Range Rover
With a well-heeled British pedigree, the V8-powered Range Rover continues to lead SUVs that venture into the wilderness. It's also one of the costliest, most luxurious SUVs offered. Land Rover's Terrain Response system allows the driver to tailor the vehicle's electronic controls and traction aids according to various road conditions, while an electronic rear differential (standard on the 400-hp Supercharged model and optional on the 305-hp base version) improves the vehicle's already tenacious trail-forging talents.

Off-Road Specs:
Ground Clearance: 8.7-11.0 inches (front); 9.5-11.5 inches (rear)
Approach Angle: 29.0-34.0 degrees
Departure Angle: 24.2-26.6 degrees (with spare tire); 15.2-17.4 degrees (with tow bar)
Fording Depth: 27.6 inches

Off-Road Options:
Locking Rear Differential ($500)



1. Hummer H2
Though it has become the mascot for excessive consumption, the Hummer H2 is nonetheless one of the most capable off-road vehicles around. A rugged, full-time 4WD system with low-range gearing enables it to climb 16-inch steps and rocks; short front and rear overhangs and a generous ground clearance mean there's less of a chance the vehicle will get hung up on bumpy trails. A 325-hp 6.0-liter V8 offers ample power and a 7,000-pound tow rating.



Off-Road Specs:Ground Clearance: 9.7-10.1 inches
Approach Angle: 39.8 degrees
Departure Angle: 37.1 degrees
Fording Depth: 24 inches

Off-Road Options:
Adventure Kit ($325; includes two-way radios, tire deflators, light, binoculars, compass, wind-resistant lighter); Adventure Series ($2,530; includes brush guard, first-aid kit, roof rack, CD changer, air suspension, tool kit, floor mats); Brush Guard (basic, $525; wrap-around version, $675; chrome wrap-around version, $995); Off-Road Lights ($1,410); Spot Lamps ($450; roof mounted, $998); Taillamp Protectors ($250; chrome, $350)
(C)Jim Gorzelany, Forbes

Hot-Selling Cars in 2007

The arrival of several new convertibles, such as this Volkswagen Eos, is boosting convertible sales, which are likely to reach a record this year. Convertibles, small cars and hybrids are in while big pickup trucks and Hummers aren't as popular as they used to be.

As sales of large trucks and brutish, truck-based SUVs decline this year, more car shoppers than ever before are taking home new, fuel-thrifty, gasoline-electric hybrids like the Toyota Prius and Honda Civic Hybrid.
In fact, the Prius and Civic Hybrid are on track to set U.S. sales records in calendar 2007.

The Prius alone could break the 200,000 sales barrier by Dec. 31, which would be a first for a hybrid in the U.S. That means more new Priuses are sold than Ford Mustangs or Honda Odyssey minivans.

See which vehicles are the Bestsellers So Far in 2007

Small Cars Are "Big"
Also big on shoppers' lists today: small cars—especially the newer ones such as subcompacts—with small price tags, accommodating interiors and, of course, good gas mileage.

Toyota's smallest and lowest-priced car, the Yaris, is on pace to double its sales in 2007 over 2006. This could mean sales of the little Yaris could approach a respectable 100,000 this year, which is on par with the better-known, long-running Volkswagen Jetta.

What's the appeal? Introduced in calendar 2006 and with a starting price of less than $12,000, the five-seat Yaris has promised Toyota quality and is rated at 34 miles a gallon in city driving and 40 mpg on the highway as a 2007 model.

Sales also are on track to double this year for Honda's smallest car, the Fit, which starts at less than $14,000 and features government fuel mileage ratings as high as 33/38 mpg for 2007.

"Small is big right now," said Dick Colliver, executive vice president at American Honda Motor Co. "Smaller vehicles have become more attractive."

The Best-Selling SUV?
In another dramatic shift among car buyers, this year's top-selling SUV doesn't come with a gas-guzzling V8 or even a V6, and it's not from Detroit. It's the Honda CR-V with a 2.4-liter four-cylinder engine developing half the horsepower—166—that a V8 might.

With a moderate size, commendable 2007 government fuel economy rating of 23 miles a gallon in city driving and 30 mpg on the highway and a starting retail price around $22,000, the CR-V appeals to both mileage- and budget-conscious buyers.

The second most popular SUV in 2007 is another smaller-sized model without a V8, the Ford Escape. In fact, a hybrid version of the Escape qualifies as the top SUV in gas mileage. The Ford Escape Hybrid has a 2007 rating of 41/32 mpg. The higher city mileage stems from the fact that city driving allows for more usage of the onboard, supplemental electric motor.

Maybe the appearance of these smaller, fuel-thrifty SUVs as top sellers begs the question: Should Americans really call SUVs "big, bad gas guzzlers" anymore?

A Bevy of Convertibles
Americans can't seem to resist open-air cars, and with at least five new convertibles introduced over the past couple years, convertible sales are likely to hit a new high in 2007.

Pontiac's Solstice, with two seats and a starting price of less than $22,000, leads Volkswagen's Eos hardtop convertible, starting at just over $28,000, among the newest models in 2007 sales. Saturn's first-ever convertible, the Sky roadster, is coming on strongly, too. It's a sibling vehicle of the Solstice and starts around $25,000.

But don't count out the indefatigable Miata. Mazda's long-running and popular MX-5 Miata continued to outsell each of these newcomers in early 2007.

The Miata is lower-priced than the others, with a starting retail price under $21,000. It's also the only one of the bunch in the Guinness Book of World Records as the world's top-selling roadster.

Noteworthy Disparities
Not everything is predictable in car buyer trends, gleaned from U.S. sales reports released by automakers for the first six months of 2007.

Cadillac's big, blingy Escalade SUV has not only maintained its sales. It has increased them over calendar 2006's levels.

The Escalade, star of umpteen hip hop music videos, is a luxury ride with a starting price around $55,000. There is, as many Escalade fans attest, nothing else quite like it, especially when it's customized to the hilt with big wheels, alcantara upholstery and multiple video screens inside.

Mercedes-Benz is doing well, too, this year with its biggest SUV in America. The full-size Mercedes GL-Class—an Escalade competitor that's also priced over $50,000—posted sales gains in 2007. In fact, sales of the GL doubled in early 2007 over the same period in 2006.

More full-size Chevrolet Suburban SUVs were sold in early 2007 than in the same period last year. The Suburban has a reputation as a stalwart vehicle for hauling the family and towing trailers, boats and the like.

Ford's full-size F-Series pickup truck continues as America's top-selling vehicle, though sales have been declining for three straight years. Still, for every new Honda Civic sold in 2007, there are likely to be two Ford F-Series pickups sold.

Some Lowlights
Buick continues to sink. The venerable brand that used to be aspirational has only one vehicle—its newly introduced, 2008 Enclave SUV—that's boosting U.S. sales.

All other Buick vehicles—from the Lucerne sedan to Rainier SUV—are selling more slowly than they did last year. In fact, South Korean automaker Hyundai already has sold more vehicles in the U.S. —more than 236,000—than Buick is likely to sell here for the full year.

Environmentalists will hail this news: U.S. sales of all Hummers this year are down. The Hummer brand, known as the poster brand for gas guzzlers, is struggling with its obvious image problem plus newfound consumer interest in fuel economy. Company officials are keeping chipper, though, and hope sales stay even, overall, for the year.

Maybe the "retro" look is finally starting to wear thin for U.S. car buyers. Every one of the major retro-styled cars that debuted in recent years—the Volkswagen New Beetle, Chrysler PT Cruiser, Chevrolet HHR and Ford Mustang—posted notable sales declines in the first half of 2007.
(C)Ann Job, MSN

Top 10 Luxury Vehicles with the Lowest Resale Value

Watch for reliability and obsolete technology when car shopping with an eye toward resale values.

Poor reliability, aging designs and supply that exceeds demand are the main culprits for low resale values. The 10 luxury vehicles likely to shed the most value over time each have at least one of those qualities.

The top two value losers on our list, the Lincoln Town Car and Mercury Grand Marquis, which are based on the same Ford platform, have at least two counts against them. Both cars are sold in large numbers to various vehicle fleets, such as limo, taxi and rental agencies, and they use decades-old technology. At least their predicted reliability, as rated by Consumer Reports, has improved in recent years to “average.”

Larry Batton, president and founder of Auto Appraisal Group Inc., says that these two cars “are archaic and don’t fulfill the requirements of modern buyers." The average age of a Lincoln Town Car buyer in 2006 was 69; for a Mercury Grand Marquis buyer it was 67, according to a Ford spokesperson. "That plus the high supply due to heavy fleet use adds up naturally to dismal resale values,” Batton says. He’s referring to the fact that every year the market is flooded with vehicles retired from fleet use, which creates a huge supply that outstrips demand.

The Lincoln Town Car, our list’s top loser, is plagued by another problem: Starting at $45,000 and easily selling for well over $50,000 with options, it’s “dangerously in the price category of some really excellent cars,” Batton says — cars like the BMW 5 Series, Infiniti M35 and Lexus GS. “All are significantly more modern and more appropriate to a wider cross-section of buyers,” Batton says.

Other cars on this list have a similar issue: Their price is too high for the value they offer. The Mercedes-Benz E550 on the list is a good car but seems overpriced at more than $60,000, especially with reliability ratings much lower than those of a competing BMW 5 Series or Lexus ES. Plus, the six-cylinder-powered Mercedes E350 costs $8,500 less than the V8-powered E550. The E350 is a better deal and its residual values show it: Kelley Blue Book projects that the E350 will retain 37 percent of its value after five years and the E550 only 26 percent.

Reliability is Key

Reliability didn't play as great a role on our previous list of Top 10 Luxury Vehicles with the Highest Resale Value, but it figures prominently into the bottom 10. “Any reliability hiccups or predicted quality issues will likely show up once the car is used, after some wear and tear,” Batton says.

And this has significant implications for those who lease vehicles. “The lease is heavily determined by the residual value,” says Eric Ibara, director of market valuation at Kelley Blue Book. “You’re paying for the depreciation from when you purchase the car to when you return the vehicle. You’ll often get a great deal on vehicles that have a high resale value because the dealer will be able to sell it for more when used.” So vehicles with the lowest residual values are a double-edged sword: They offer the lowest potential return on resale for those who buy and require more money upfront to lease.

It’s important to note that this list isn’t comprised of a bunch of bad cars. Based on our test-drives, the Cadillac STS and Lincoln MKZ that made our value-losers ranking actually perform well. And others on this list are desirable image-wise. The question is, how much are you willing to pay for perceived prestige? For instance, the elegant Jaguar S-Type, with its fragrant leather interior, might instantly appeal to those who always dreamed of owning a Jag; same with the Mercedes-Benz E550.

“Buying a car is an emotional decision, and for some, a snap decision,” Ibara says. “Despite some potential red flags — overly high lease prices, lower quality ratings and bad resale value — people still buy them. But if you’re really interested in getting a good price for the used car, it’s worth it to take time and evaluate all the facts when buying — rather than just go with your gut.”

Graceless Aging

Another important aspect to keep in mind is that for mainstream vehicles, the longer they are on the market without getting significant updates or redesigns, the more likely residual values will suffer. "It's almost a given that cars near the end of their life cycle — unless they're cultural icons — are going to suffer in the residual value department, simply because they're lagging behind newer designs in technology, comfort and safety features, which in the auto industry are changing fast," says Auto Appraisal Group's Batton.

The Jaguar S-Type and X-Type on this list are good examples of this. The S-Type was first introduced for the 2000 model year and the X-Type for the 2002 model year. Neither vehicle has seen significant updates since their debut, while competing models have been revamped. "Consumers are going to gravitate toward newer, fresher choices.... No amount of 'freshening-up' during a life cycle can make up for a redesign," Batton says.

Our list of the Top 10 Luxury Vehicles with the Lowest Resale Value was compiled using Kelley Blue Book data for new vehicles with manufacturer suggested retail prices (MSRPs) of $30,000 and up, including specific trims of vehicles, not just base MSRPs. The residual values are expressed as a percent of the original MSRP five years into the future. We've put the vehicles in ascending order. Those that tied for a particular ranking are in alphabetical order.

Kelley Blue Book estimates future vehicle values based on a model’s past performance as well as new or notable features. “The best indicator of future performance is past performance,” Ibara says. For newly introduced models, Kelley Blue Book looks to past similar models from a given manufacturer.

10. Cadillac SRX V8
MSRP: $43,870
Residual Value After Five Years: 27 percent*

A "Poor" reliability rating from Consumer Reports sheds a negative light on this midsize SUV. In this extremely crowded and competitive segment, that can really hurt a vehicle's success.

The current-generation SRX is nearing the end of its life cycle and soon will be replaced by an all-new version. Despite Consumer Reports' poor reliability rating, we think the SRX's sporty performance and versatility are appealing.

9. Ford Expedition V8 4WD
MSRP: $32,895
Residual Value After Five Years: 27 percent

As we wrote in the Top 10 Luxury Vehicles with the Highest Resale Value feature, performance is a primary driver of used car values. The Ford Expedition makes this list largely because of sluggish performance compared to other big SUVs. It has a 300-hp V8, which sounds powerful, but really isn't for a vehicle that weighs well over three tons.

On top of being rather under-powered, the Expedition guzzles fuel. "It's just not at all ideal for what's going on right now in the world — namely, rising gas prices and increasing interest in 'green' vehicles," says Auto Appraisal Group's Larry Batton.

8. Cadillac DTS V8
MSRP: $41,990
Residual Value After Five Years: 26 percent*

The Cadillac DTS is another solid performer marred by low residual values. Part of the problem is that, like the Lincoln Town Car and Mercury Grand Marquis on this list, the DTS is sold to fleets for use as a limo, livery cab and the like. Lots of them get pumped into the used-car market once they're retired from fleets and throw off the supply-demand ratio.

Also working against the DTS is the fact that it competes with full-size sedans from Audi, BMW, Lexus and Mercedes-Benz. Those brands have more clout than Cadillac and are currently regarded as leading innovators. In the upper echelons of the luxury-sedan market, where "mine is better than yours" is a mantra, clout and innovation are key.

7. Cadillac STS V6
MSRP: $42,765
Residual Value After Five Years: 26 percent*

Like the larger DTS, the Cadillac STS is a solid performer and appealing in many ways. But, “American cars are having a tough moment,” says Auto Appraisal Group’s Larry Batton. General Motors, Ford and Chrysler are struggling to regain a competitive edge long lost to foreign manufacturers.

Just as the DTS competes in a heady field, so does the STS. It goes up against the Audi A6, BMW 5 Series, Infiniti M, Lexus ES and Mercedes-Benz E-Class, all of which have higher residual values; the Infiniti M even made our top 10 list for highest residual values. For the STS, power pays: the V8-powered model has a five-year residual value of 30 percent and the hot rod STS-V 39 percent.

6. Lincoln MKZ AWD
MSRP: $31,765
Residual Value After Five Years: 26 percent*

The Lincoln MKZ (formerly the Zephyr) is based on the Mazda 6 platform. The Mazda 6 is an excellent car and so is the MKZ, but the $5,000 to $10,000 price premium for the Lincoln makes it less appealing, despite its luxury features and respectable performance. In its favor, the MKZ gets an "Excellent" predicted-reliability rating from Consumer Reports.

Like with most luxury cars, the MKZ offers what auto analyst Ricky Beggs of Black Book Auto Research calls "fluff features." Some of these options, such as pricey navigation systems, quickly become obsolete and can drag down residual values.

5. Mercedes-Benz E550
MSRP: $59,775
Residual Value After Five Years: 26 percent*

Reliability of Mercedes-Benz vehicles has plummeted, says Larry Batton of Auto Appraisal Group. Poor reliability erodes resale value. Mercedes execs have unofficially admitted to us that adding too much new technology without enough time to fully test it was a downfall with the E-Class and caused many of the model's widely documented problems in recent years.

Compared to the V8-powered E550, the six-cylinder-powered E-Class sedans and wagons — E350 and E320 diesel — retain more value: 37 percent after five years, according to KBB. Likewise, the low-production, high-performance E63 AMG, with 41 percent of its value retained after five years. The E550 cranks out 114 hp more than the E350 but costs a whopping $8,500 more.

4. Jaguar S-Type V6
MSRP: $49,000
Residual Value After Five Years: 25 percent*

The current-generation S-Type debuted as a 2000 model and is near the end of its life cycle and will be replaced by an all-new sedan called the XF. Auto Appraisal Group's Batton says that residual values almost always suffer when vehicles are at the end of their life cycle as consumers gravitate to the latest and greatest offerings.

Besides being long in the tooth, the midsize Jaguar S-Type also suffers from poor reliability, according to Consumer Reports, a double-whammy for residual values. And its retro styling, though elegant, no longer stands out against jauntier competitors.

3. Jaguar X-Type Sedan and Wagon
MSRP: $34,995
Residual Value After Five Years: 25 percent*

The X-Type has struggled since its 2002 debut. It never quite mustered the appeal and performance of more-capable competitors such as the BMW 3 Series, Infiniti G35, Lexus IS and Mercedes-Benz C-Class.

Jaguar plans to quietly phase out the lame duck X-Type. Poor reliability, as rated by Consumer Reports, is only one knock among many. Auto industry insiders fault the X-Type for being little more than a dressed up Ford Mondeo.

2. Mercury Grand Marquis LS
MSRP: $30,320
Residual Value After Five Years: 23 percent*

The Mercury Grand Marquis is "a big, bulky vehicle that simply doesn't reflect trends in the current market," says Auto Appraisal Group's Larry Batton. Buyers of the Grand Marquis owners are 67 years old on average. "The market for this huge car is small and getting smaller," Batton says.

Even though the Grand Marquis is a good value for its sheer size and features, the fact that so many are sold to fleet operations such as cab services hurts resale values. "When cars are used heavily in fleets, supply goes up, and demand — and prices — go down," Batton says.

1. Lincoln Town Car
MSRP: $42,985
Residual Value After Five Years: 17 percent*

The Lincoln Town Car is archaic by today's automotive standards, much like the Mercury Grand Marquis that shares its platform. "It doesn't reflect the needs and wants of a modern consumer anymore — it's a niche vehicle," says Auto Appraisal Group's Batton. Not only that, but at nearly $45,000 to start and well over $50,000 with options, "it has dangerously entered the same price territory as significantly more sophisticated import luxury sedans," he says.

The average age of Town Car buyers is 69 — an indicator of the dwindling group of potential buyers for this vehicle. And like the Mercury Grand Marquis, the Lincoln Town Car is sold in large numbers to limo and other fleet services, which boosts the supply way past the demand once these vehicles hit the used-car market.

* Residual values are courtesy of Kelley Blue Book and expressed as a percentage of the original MSRP.
(C)Stephen Milioti, Forbes