Next victim of mortgage mess: Auto sales

Rising concern about home values and mortgage payments is causing more buyers to slam the brakes on new car purchases.

Already-battered U.S. auto sales could be the next victim of the problems with mortgages, declining home and stock prices as potential car buyers delay purchases due to uncertainty.

Industrywide U.S. auto sales in August could be off 10 percent from a year ago, according to an early read from sales tracker Edmunds.com. That follows July sales that were 19 percent below year-earlier levels

Jesse Toprak, executive director of industry analysis for Edmunds.com, said that the downturn in home values and credit issues that were seen in the July numbers could be an even bigger factor this month.

"I think the issue is becoming more pronounced," he said.

Sales weren't just weak at domestic automakers, such as General Motors, Ford Motor and Chrysler Group. Year-over-year sales fell in July at Toyota Motor and Honda Motor as well. Many forecasters are cutting full-year auto sales targets in the face of these weak summer sales. And some experts say the turmoil in housing could throw even more dirt in the gears.

CNW Research, which specializes in surveys of car buyers, found in its latest reading that 13.6 percent of the potential market's customers were canceling or postponing plans to make a new-vehicle acquisition any time soon, up from 10.1 percent last year.

And of those postponing or canceling plans, home-related issues jumped to the No. 1 reason, cited by 17.6 percent of those staying away from dealers' showrooms, with nearly 11 percent of that group citing a decline in their home equity and another 6 percent citing an increase in their monthly home payment.

Of those postponing purchases, 10.7 percent cited problems with credit scores, as some sources of car loans are tightening lending standards. Gas prices are a distant third, cited by less than 5 percent of those delaying purchases.

"We're probably going to see some pretty bad [auto sales] numbers for the rest of the year," said Art Spinella, president of CNW. "To put it simply, housing is now the major hurdle to new car purchases. The next three to four months are not going to be much better if it's better at all. People are not interested in buying a new vehicle."

Only two years ago, the CNW survey found just 2.3 percent citing home-related issues as a reason to postpone a car purchase, while 5 percent cited credit score problems and about 3 percent cited gas prices.

Automakers, led by GM, are upping cash-back offers and other inducements to try to breathe life into sales in the face of headlines about home foreclosures and market meltdowns.

GM spokesman John McDonald said that GM isn't seeing any sharp drop-off in sales it can trace to the current mortgage and housing slowdown.

"It is one of a number of headwinds," he said. "There's fuel prices, there's interest rates and there's housing prices. But we're not seeing anything new that we've not been talking about for more than a year."

But one auto industry executive, who spoke on condition that his name not be used, said that the higher incentive spending by automakers, particularly on GM pickups, may mask some of the bite that housing is putting on sales.

"The home was not only a source of financing for some car purchases, it contributes to a positive feeling psychologically," said the executive. "That led to a confident outlook, a view that 'I can go ahead and spend from paycheck to paycheck and buy new cars when I want to because the value of my home and portfolio have gone up.'

"It's silliness to say the credit crunch doesn't matter," said the executive. "If the final sales numbers for August have any strength, it will be because of incentives."

Current Auto Rates
36 month new: 6.82%
48 month new: 6.94%
60 month new: 6.94%
72 month new: 7.01%
36 month used: 7.40%

Experts in the field say that car purchases are one of the first items that consumers can and will put off if they are nervous about their own financial outlook, long before they'll cut back on eating out or other discretionary purchases.

Bob Schnorbus, chief economist for auto research firm J.D. Power & Associates, said that the August sales probably won't tell the full story about the drag that the housing turmoil is causing for auto sales.

"I wouldn't expect it to have that quick impact; I would expect it to be more of a drag throughout the rest of this year than a plummet in August," he said.

And Schnorbus said that while consumers may keep making other types of purchases, even as they pull back from buying new cars and trucks, the slowdown could spread to other types of spending in the future if the market does not improve.

"A new car is one of the more postponable purchases that people make," said Schnorbus. "That new vehicle purchase could be a good leading indicator if consumers are going to cut back. Over the next few months, we could be getting some very interesting signals."
(C)CNN

2007 Nissan Sentra SE-R

Pocket Rocket With a Gee Factor.

Type: Compact front-drive performance sedan.
MSRP: $20,525 - $22,880 (tested).
Engine: A 2.5-liter in-line 4-cylinder (200 horsepower, 180 pound-feet of torque); six-speed manual transmission.
Consumption: E.P.A. mileage estimate is 24 m.p.g. in town, 31 on the highway.
Alternatives: Honda Civic Si sedan ($21,685), Chevrolet Cobalt SS ($19,515), Hyundai Tiburon GT ($19,995), Mini Cooper S ($21,850).

Here is a car-marketing rule of thumb: the more letters and suffixes tacked onto a car name, the more gaudy accouterments — inside and out — the car will possess. So naturally you’d expect something called the 2007 Nissan Sentra SE-R Spec V to be pretty well endowed.

But the Spec V — let’s simply call it that — is surprisingly subdued in its excesses. Although it’s decked out with the requisite rear spoiler, bright red seat belts, and 17-inch aluminum alloy wheels, which have an awkward spoke pattern and look like stove-top gas burners, I felt relieved that things weren’t bigger, shinier and worse — with one exception.

A G meter sits front and center on the gray dashboard. It measures the G forces — how many times the force of gravity is pulling on your body. It also measures the extent to which Nissan has gone too far.

Not only is the Spec V a performance version of the Sentra, it is the performance version of the performance trim version — the SE-R — and sort of a pocket rocket squared.

The SE-R made its debut in 1991 as the Sentra’s top trim level. It came with a more powerful engine and was an instant underground hit with enthusiasts. For most of the decade, the SE-R was one of just a few performance-oriented compacts sequestered below the lackluster mainstream.

But then came the movie “The Fast and the Furious,” and automakers were suddenly made aware of a whole new market to exploit. In 2002, it was no longer enough to have just an SE-R. Nissan added a Spec V. In 2007, you needed a G meter.

I kept my eye on that G meter for the better part of five days of driving. Most of the time, the needle sat right on zero, but it wasn’t for the lack of trying. Oh, I tried. I pegged the car on on-ramps and off-ramps. I stopped short and started hard. The most I coaxed out of the Spec V was 0.1 g. Maybe it was broken. Maybe it is unnecessary.

Based on the sixth-generation Sentra, the Spec V is more powerful than the previous version. The 2.5-liter 4-cylinder engine returns 200 horsepower, which is 23 more than the SE-R and 60 more than the 2-liter 4 found in the regular Sentra. And the sound is beautiful, a smooth, graceful hum all the way up to the redline of 6,800 r.p.m.

The Spec V is available only with a close-ratio six-speed manual gearbox, which does the job without quirks or wobbles between gears. The electronic power steering feels direct, with a good amount of weight on surface streets, but on freeways the power assist seemed overdone.

You get the sense that all of the mechanical bits have been tweaked according to focus groups and research data to walk the delicate line between performance and comfort. The Spec V is definitely bigger and more spacious than ever. But it is also roughly 400 pounds heavier than the 2006 model. To stiffen the chassis, there is a larger front stabilizer bar and a V-brace behind the rear seats. A sport-tuned suspension and four-wheel disc brakes (including 12.6-inch rotors up front) also help the Spec V tuck in its weight. But all of that equipment fails to hide the bulk altogether.

The Spec V feels athletic but not chiseled. Road & Track clocked it at 6.6 seconds from a stop to 60 m.p.h., so its acceleration is better than ever. But the weight is the biggest factor in the overall feel of the car, which pales in comparison with the more enthusiastic pocket rockets of its ilk, like the Honda Civic Si and the Mini Cooper S.

And for a car with a name as long as the Nissan Sentra SE-R Spec V, it is more of an everyday driver than you’d expect. It’s still sporty and fun, but it is likely to disappoint extremists, especially those in search of higher Gs.
(C)NYT

Top 10 Passenger Cars

The most popular passenger cars on MSN Autos, based on visits to the site's vehicle research pages.

Passenger cars have traditionally come in small, midsize or full-size but a new entry-level class was introduced recently when automakers began making more fuel-efficient subcompact cars. However, small and midsize cars continue to be the bread and butter of the segment and it's evident on MSN Autos' most popular passenger cars list.

Japanese imports lead the way with the Honda Civic taking the number one spot for the fourth consecutive quarter. The next three spots are taken up by three of the best-selling cars in America in 2006: the Nissan Altima, Toyota Camry and Honda Accord.

The lone bright spot for domestics is the always popular Ford Mustang. It ranks fifth on the list followed by the most recognizable hybrid on the road today, the Toyota Prius. In fact, Toyota is the only automaker with four vehicles in the top ten.

The most popular list consists of nine imports with eight coming from Japan and one from Germany. The top ten is also comprised of five midsize cars, four small cars and one subcompact.

The list of the ten most popular passenger cars on MSN Autos is based on visits to the site's vehicle research pages between April and June of 2007. Here is the complete list:

1. Honda Civic
Over the years, Honda has shown the Civic can take on the shape of a sedan, coupe and hatchback. There is no hatchback version for the eighth generation but there is a sedan version of the Si for the first time ever. Sharing the same characteristics as the 197-horsepower Si Coupe, the Si Sedan comes in a 6-speed manual transmission with helical-type limited slip differential, 17-inch alloy wheels and a rear spoiler. For consumers who don't need all that power, opt for the more efficient DX, LE or EX which can get about 30/38 mpg on city/hwy.

2. Nissan Altima
Nissan introduced a redesigned version of the Altima for 2007 with distinctive styling. Built smaller than its predecessor, the midsize sedan has a smaller wheelbase and is shorter in overall length but is about a half-inch wider. For the first time a coupe version of the Altima is available and joins the lineup for 2008. Based on the sedan, the Altima coupe is smaller, shorter and lighter than the sedan but it shares similar interior design and features. The Altima also comes in a hybrid but it is only available in eight states so far.

3. Toyota Camry
The best-selling car in America continues its dominance in 2007 with more than 240,000 units sold in the first half of the year. Toyota redesigned the Camry to give it a richer look, roomier interior and the most powerful V6 ever. On top of that, the first-ever gasoline-electric Camry Hybrid also debuted for 2007 featuring an estimated fuel economy rating of 40 mpg in the city and 38 on the highway. The Camry is available in four trim levels—CE, LE, SE and XLE—and prices start at under $19,000 for the base CE with a 4-cylinder engine and manual transmission.

4. Honda Accord
Not long ago Honda held the top spot in U.S. car sales. Now the automaker is trying to regain that crown via the Accord, which was revamped in the 2006 model year. According to Automotive News, the Accord is third in passenger car sales in the first half of 2007. Available in a coupe or a sedan, the midsize car is fun to drive and comes with a laundry list of safety features. Although it's popular among families, Honda says the V6 sedan with a 6-speed manual is "designed to appeal to driving enthusiasts." The gasoline-electric hybrid is still available for 2007 but Honda has announced it will not produce it for 2008.

5. Ford Mustang
Ford's Mustang was given the retro look back in the 2005 model year. Its popularity has not waned and consumers have continued to give it a thumbs up by making it the most popular sports car on MSN Autos for six straight quarters. Available in a coupe or convertible, shoppers can also choose between a 210-horsepower V6 or a 300-horsepower V8. The convertible is more rigidly built than any pre-2005 Mustang convertibles with virtually no cowl shake. Affordability has kept the Mustang an attainable sports car with a starting price of under $20,000.

6. Toyota Prius
The most popular hybrid on MSN Autos also makes the top ten passenger cars list as well. Known for its great fuel economy, the Prius has become a mainstream vehicle since its introduction in 2000. One of Consumer Reports' Top Picks of 2007, the Prius is the most fuel-efficient vehicle in America with estimated 2008 EPA ratings at 48 mpg in the city and 45 mpg on the highway. Consumer Reports also gave the hybrid the best depreciating rating because of the ongoing demand and excellent reliability.

7. Toyota Corolla
It seems that Toyota's formula to keeping the Corolla a success is rather simple: Don't change it. The Corolla has consistently been a best-selling car in America without any major changes for the past few years. Fuel economy is one of the reasons for its popularity and having a good reputation as a reliable car doesn't hurt either. A Consumer Reports survey named the Corolla as one of 59 cars to make the Good Bets List and a top vehicle priced under $25,000 for 2007. Prices start at under $15,000 for a 2007 Corolla.

8. Toyota Yaris
A whole new entry-level segment of vehicles has emerged and Toyota is once again ahead of the game with the Yaris. Available in a sedan or a hatchback, the subcompact car has better fuel economy than any of its nonhybrid competitors with a starting price of just over $11,000. The Yaris is powered by a 106-horsepower 1.5-liter engine and provides decent 65-75 mph passing. Lots of shifting is required for best performance but buyers can opt for the automatic, which is smooth and responsive. The ride is supple and handling is OK if it's not pushed too hard especially with the base version that has 14-inch tires.

9. Volkswagen Jetta
The Jetta has grown in size over the years and this latest-generation version is the biggest one ever. Offered in a variety of trims, the Jetta comes with a 150-horsepower 2.5-liter engine or the more peppy 2.0-liter inline four turbocharged engine that produces 200 horsepower and 207 lb-ft of torque. Volkswagen has been showing a number of commercials touting its vehicles' safety. The Jetta comes with a number of safety features including anti-lock brakes, traction control, front-seat side airbags and head-curtain airbags. The Jetta also gets four stars out of five from the NHTSA in the frontal crash test and five stars in the side crash test.

10. Nissan Maxima
Nissan's flagship car got a facelift for the 2007 model year featuring a new grille, hood, bumpers and headlights. One of the new features is the Nissan Xtronic CVT (Continuously Variable Transmission) which is designed to be more fuel-efficient than the traditional automatic transmission. The 255-horsepower V6 is quite potent but it produces a bit of torque steer. Automotive consulting firm Strategic Vision awarded the Maxima as a top medium car (tied with Saturn Aura) in the 2007 Total Quality Index (TQI). The survey is based on responses from more than 27,000 buyers who bought 2007 models in September, October and November of 2006.
(C)MSN

Are Model-Year Closeouts a Good Buy?

Depending on your tastes and needs, buying an outgoing model just before it's replaced by a new one can be a good deal. But holding out for newer versions has its own rewards.

It’s not exactly Christmas come early, but automakers have gotten a flying start this year on model-year blowouts. At dealerships around the country, 2007 models are being hustled off the lots to make room for the incoming 2008s.

In particular, Honda and Toyota are trying to attract customers with higher-than-usual discounts offered seemingly earlier than ever, well in advance of the typical model-year clearance events. Honda’s average incentive per vehicle sold in July was $1,146, versus only $896 in July 2006, according to Edmunds.com. Toyota’s average incentive per vehicle hit $1,492 in July, up from $1,009 a year earlier.

Vehicle incentives can vary. They aren’t always just money off the sticker price. Import brands like Honda often prefer to offer discounts in the form of cut-rate leases, as opposed to customer cash rebates, which have been popular with domestic manufacturers. “We don’t offer cash at all, as a matter of policy,” said Honda spokesman Chris Naughton. That’s partly to avoid the appearance of a fire sale, but also because, according to registration data from the automotive research company R.L. Polk & Co., leasing is more popular on both coasts, where import brands sell the best. In the Midwest, people are less likely to lease or buy imports.

Through Sept. 4, Honda is offering a $199 per month lease for 36 months on the 2007 Accord four-cylinder coupe, with $2,399 due at signing, according to Honda’s website. That's the leasing equivalent of almost $3,000 off sticker price. Acura is also offering cut-rate leases or low-interest financing.

The fine print for the Accord lease puts the MSRP at $21,870, and the net capitalized cost is $18,895.89. The latter is the leasing equivalent of the amount financed on a loan, i.e., the amount of money borrowed.

Buyers can negotiate with dealers on the difference of $2,974.11, which would typically include things like a down payment, first month’s payment and acquisition fee, Honda's Naughton said. But the unspoken suggestion is that dealers are highly motivated to get people into the $199 lease.

Uncharacteristically, Toyota is also offering leases as low as $199 on the 2007 Camry. Luxury import brands including Infiniti, Lexus and Mercedes-Benz are likewise advertising “summer specials,” which often last until it’s time for model-year clearance sales, which themselves then segue into December clearance events.

In other words, with 2008 models on the horizon, and deals to be had on 2007s, it’s a good time to be a car buyer. The question is, what’s the better deal, buying the last of the '07s or the first of the '08s? It turns out, there’s no wrong answer; both have advantages, depending on your tastes and needs. Keep reading to find out the benefits of buying either the last of an outgoing model or the latest introductions.

Reasons to Buy an Outgoing Model

Price
Without a doubt, outgoing models are going to be less expensive. Discounts on most 2007 models should reach a peak in the summer and early fall, based on historical data from Edmunds.com and Bandon, Ore.-based CNW Marketing Research. Once new models arrive, dealers will want to quickly sell any remaining '07 inventory so that they can charge full price on new '08 models. It’s much harder to get buyers to pony up full price on the latest vehicles with the outgoing ones sitting on the lot, especially if they look just like the new ones. The more old models dealers can move out, the better their chances to make more money selling the new ones.

“A year ago, [Toyota] had a new Camry and a new FJ Cruiser. Margins hit a real sweet spot,” said Earl Hesterberg, president and CEO of Houston-based Group 1 Automotive Inc., the fourth-largest U.S. dealer chain. That is, the 2007 Camry was newly redesigned, and the FJ Cruiser was a completely new model, with no previous model to stagnate on the lot. From the dealer’s point of view, this “sweet spot” meant charging their customers top dollar, and getting it.

Styling
If an “old” model was redesigned recently, like the Camry in 2007, it’s unlikely that the new model will look all that different. It may have been tweaked in some ways, but, for the most part, opting for the old model doesn’t mean sacrificing much, styling-wise. In the end, you can save a bundle on a car you like to look at.

In fact, although redesigned models are often touted for their groundbreaking designs, sometimes people actually prefer the styling of an existing model, simply because they’re used to it. At first glance, a reworked model can seem over-designed, and even radical compared to the vehicle it’s replacing. And not necessarily radical in a good way. For instance, BMW has toned down the supposedly controversial styling of its 7 Series, which was redesigned in 2002, a possible sign that customers were turned off by the new look.

Availability
Because new or redesigned models are often more sought-after, they can be hard to come by, meaning customers may have to get in line to buy one. With outgoing models, this isn’t a concern. In fact, outgoing models are often a little too available, which is another reason dealers want to move them. Here’s how it works: Dealers borrow money to pay for the cars that sit on their lots. For every day that the cars sit unsold, they accrue more of what the industry calls “floor plan” interest charges. According to the National Automobile Dealers Association, rising interest rates meant that dealers paid an average of about $160 in floor-plan costs for every vehicle they sold in 2006, roughly double the year before. Thus, dealerships want fewer cars on their lots because it means they are spending less money.

Toyota is calling its summer promotion “Lots on the Lots,” a name that suggests Toyota dealers have too much inventory. This is good for potential car buyers, but not so good for Toyota. In fact, it’s symptomatic of larger problems. “Import inventories are higher than we would like, mostly because of softer sales for Honda and Toyota,” said David Cosper, CFO for Sonic Automotive Inc., Charlotte, N.C., the nation’s third-biggest dealership chain. Toyota Division reported that its sales dropped 3.5 percent in July, compared to the same month one year ago. Honda Division said it slipped 1.2 percent in July.

Reasons to Hold Out for a New Model

No matter how rational the reasons for buying an outgoing model may be, some people just can’t resist being the first on their block with the latest car. This decision doesn’t have to be purely emotional — solid arguments can be made for holding out for the newest models, even if they cost more.

Redesigns
A “redesign” is the industry term for an all-new model with the same name as the old model, and it’s probably one of the top reasons that people choose upcoming models. For example, the 2008 Honda Accord will be an all-new model, with new styling and new features, if we believe the concept car sneak peek at the New York International Auto Show. (See the Accord Coupe concept in our 2007 Detroit Auto Show coverage.) Honda says that the new Accord is much more aggressively styled and designed for better crash safety and improved gas mileage. If the hype holds true, then buying a new model means getting a better car.

Resale Value
Simply put, newer vehicles are worth more. For lease customers, it’s especially important to select a car with the best possible residual value, which is the car’s predicted value at the end of the lease based on its depreciation over time. When leasing, the customer is essentially borrowing the difference between the upfront cost and the residual.

According to historical data from Automotive Lease Guide, Santa Barbara, Calif., a widely used residual value benchmark, residual values are best when a model is new, and likely to fall when a model is replaced, or about to be replaced, with an all-new model. Lease numbers then could be a little bit better on the newer model. However, some dealers will occasionally offset the lower value of an outgoing model with a lease discount.

Patience
As usual, dealers will be hesitant to sell below the manufacturer suggested retail price (MSRP) at the start of any model year. But before long, the 2008s are likely to be on sale, too. Edmunds.com said that as of Aug. 1, Mini is the only brand in the industry offering virtually no incentives. In addition, luxury import brands tend to have their biggest discounts in December, when they are trying to hit their calendar-year sales targets. At that point, when the new-model buzz has died down, it’s quite possible to get that new vehicle for less.

Based on historical data from Edmunds.com and CNW Marketing Research, clearance sales usually start closer to the traditional model-year changeover, in September and October. Honda won’t introduce the all-new Accord until October, but it has already started discounting the 2007 model late in the second quarter. “Dealers are pushing an aggressive target” for Accord sales, said Roger Penske, chairman of the Penske Automotive Group in Bloomfield Hills, Mich., the nation’s second-largest dealership chain.
(C)Forbes

Top 20 Most Dangerous Vehicles

Here are the 20 most dangerous vehicles according to 'real world safety' from the Insurance Institute for Highway Safety.

Hoping to stay safe on the road? You might want to avoid certain cars.

For example, the Nissan 350Z has a death rate that's about double that of the average sports car.

But it's not for the reasons you might think. In this case, says Russ Rader, communications director for the Insurance Institute for Highway Safety (IIHS), an organization that represents the interests of the insurance industry, the 350Z is part of a group of vehicles that tends to be driven by younger, less-experienced or riskier drivers, and stands out for having high death rates, through no particular fault of the car.

"When they are in crashes," he adds, "they're particularly serious ones."

This illustrates a key point: Simply looking at the historical death rates for one particular model might not give much insight into the relative danger, or safety, of driving that vehicle. Furthermore, the most recent available federal data, interpreted by make and model by the IIHS, covers 2001 to 2004 model years in calendar years 2002 to 2005. Many models have had significant changes in safety equipment or complete redesigns since then.

The consensus among several safety experts we asked is that the best way to predict how dangerous or safe a new vehicle will be comes from looking at the way it's configured, particularly with respect to several important factors — side-impact protection, stability control and rollover risk — that together span a wide range in real-world safety.

That's what we did. Topping the list of the least safe: the Buick Rendezvous, the Ford Ranger/Mazda B-Series, the Nissan Frontier, the Ford Escape/Mercury Mariner and the Toyota Yaris.

High-Priority Protection
Among the various crash tests the IIHS performs on new vehicles, according to Rader, they see the widest range of results in those with side-impact and rear whiplash protection.

"What makes a vehicle unsafe today is a lack of side-impact protection," he says. "Whiplash is not a life-threatening injury, but head injuries [from a side impact] are commonly life-threatening."

Side-curtain airbags have been shown to greatly increase the chances of surviving a classic "T-bone" side-impact accident, such as when the other vehicle runs a stoplight, and depending on the design, they can also increase the chances of surviving a rollover. Side-curtain bags are mandated for all 2009 vehicles, and the National Highway Traffic Safety Administration (NHTSA) estimates that these alone will reduce fatal side-impact head injuries by 45 percent, saving up to 1,000 lives per year.

"Side airbags designed to protect your head are crucial, because a head injury is the most common fatal injury in a crash," says Rader. "It's the difference between life and death."

Structurally Sound
Along with side airbags, a vehicle also needs a well-built side structure to withstand a strong blow from vehicles of varying heights, says Rader.

Which leads to another major point: "Size and weight are very important aspects of safety," he says. "The laws of physics always apply in a crash. That means that people in smaller and lighter vehicles are always at a disadvantage in crashes with other vehicles."

In single-vehicle crashes, the weight advantage isn't as pronounced, but the statistics still point in favor of larger, if not heavier vehicles, he says.

However, John Linkov, managing editor of Consumer Reports, says that smaller and lighter vehicles aren't necessarily more dangerous. In many cases, they may offer handling and maneuverability advantages to help avoid accidents.

"A more nimble, better-handling vehicle," he says, "is likely going to be easier to control in an emergency and help the driver avoid the dangerous situation."

While generally heavier SUVs and pickups are at an advantage in multi-vehicle accidents, they've been shown to be at quite a disadvantage in single-vehicle accidents (such as when the driver falls asleep, or loses control swerving around a deer), which comprise 43 percent of fatal accidents.

In this type of accident, SUVs and pickups have more than double the chance of rolling over, according to NHTSA data. This risk relates closely to overall federal fatality data, showing that SUVs and pickups generally have a higher fatality rate than cars of a similar weight.

Corrective Measures
Electronic stability control systems, which smartly apply the brakes on one or more of the wheels as best to avoid loss of vehicle control in an extreme maneuver, have been offered for more than a decade in some luxury and high-performance vehicles, but the technology has been trickling down to most mainline brands over the past several model years.

NHTSA has called it the most significant development since the seat belt, and the federal government has mandated electronic stability control, but not until the 2012 model year. NHTSA estimates that the stability control mandate will prevent up to 9,600 fatalities and 238,000 injuries annually, at an average cost of $111 per vehicle in addition to the cost of antilock brakes, which most vehicles already offer as standard equipment or as an option.

"Electronic stability control is one of those rare safety features that's having a dramatic effect on saving lives," says Rader. "Stability control alone can reduce the risk of fatal single-vehicle crashes by 56 percent. And it can reduce fatal single-vehicle rollovers by 80 percent for SUVs, 77 percent for passenger cars."

Even though stability control was only offered in some of the more expensive SUVs a few years ago, Rader says that its impact is already easily seen in the Institute's yearly list of vehicles with the lowest death rates. Rader said that in the past, only a few of them were SUVs, but now they make up nearly half of the list.

Terrifying Trucks
Pickups are another surprisingly unsafe group of vehicles. Based on fatality-rate data, they're by far the most dangerous, says Michael Dulberger, president of the safety advocacy group Informed for Life.

"Pickups as a class have the highest rate of fatality and serious injury," he says, "and they have a very high rollover risk."

Rader agrees. "Pickups have a rollover problem," he says. "They have a high center of gravity and a high propensity to roll over." And making matters worse, "They're the laggards in electronic stability control," he says.

Last year, only one pickup model offered electronic stability control, according to Rader, while this year it's standard on 8 percent of models and optional on 20 percent. By comparison, 87 percent of SUVs now have standard stability control, according to the Institute.

Linkov agrees that some pickups pose the most danger to inexperienced drivers. "What we're seeing is that young people in places where pickups are a de facto choice are at an especially strong risk, with their propensity to roll over," he says.

Any vehicle can be especially unsafe if it's used in a way it's not designed for, such as if a high-clearance pickup is used primarily empty on curvy, hilly roads, according to Linkov.

"Combine that with a poorly trained driver," he says, "and it's dangerous."

The Methodology
As we've outlined, generalized fatality statistics point toward today's most dangerous new vehicles as those that are light, don't provide proper side-impact protection (airbags), have a higher propensity to roll over, don't handle particularly well and lack electronic stability control.

Informed for Life releases SCORE (Statistical Combination of Risk Elements) data each year, which combines all the available safety data from the federal government and the IIHS, along with the role of weight and the presence of stability control, into a single number for each particular model, making it easier to compare vehicles of varying sizes or body types.

The SCORE is calculated according to the role that each element plays in general fatal accidents. For instance, as about 26 percent of national accident fatalities occur in a side impact, 26 percent of the SCORE depends on the vehicle's rated side-impact protection.

The system, which has been implemented for about five years, more closely matches the fatality rate on a model-by-model basis than either IIHS or NHTSA ratings alone. And it's easy to decipher; it's on a scale that's proportional to risk, with the average passenger car ranked 100.

So, for instance, a SCORE of 150 means that the relative risk of driver fatality is 50 percent higher than for the average passenger car. In the group's 2007 list, the most dangerous vehicle, the Buick Rendezvous, at 161, has more than three times the relative risk of fatality than the Hyundai Entourage and Kia Sedona minivans, at 51.

To distill our list of the most dangerous vehicles, we looked at Informed for Life's bottom-of-the-heap results for 2007 model-year vehicles, including vehicles with a full range of crash-test results from NHTSA, the IIHS, or a combination of the two; and to also consider the role of accident avoidance (or lack thereof), we broke any ties with Consumer Reports' accident avoidance scores.

CR first measures the vehicle's maximum stable speed through emergency handling, essentially simulating a quick swerve around an obstacle and back into the right lane, then factors in driving position, visibility and seat comfort — all issues that the organization deems important in successfully avoiding an accident.

We're aware that this is a snapshot of the most dangerous cars among those that have been extensively tested, and that there may be more dangerous vehicles that either haven't yet been fully crash-tested or were only partially tested. Please consult www.safercar.gov or www.iihs.org if you're concerned about a particular model.

How Carmakers Reacted
Automakers were generally supportive of a methodology that looked for the safest — or in this case, the least safe — vehicles through a composite assessment of existing crash-test results, and considering side-impact protection and rollover likelihood, instead of looking at prior model-by-model fatality or injury data.

GM
Alan Adler, GM's safety spokesman, confirms that it's important to look at a wide range of information. "You've identified two technologies [side airbags and stability control] that are important, and we have rollout plans for both," says Adler.

More than 40 percent of GM's light trucks now have side-curtain airbags that allow head protection even in rollovers. Stability control is offered in 35 percent of GM vehicles for 2007, and the percentage rises to about 50 percent for 2008, according to Adler. Regarding SUVs and pickups, Adler says that "rollover is a big deal" to the company, which now does its own rollover safety testing.

To shoppers who might wonder why stability control isn't yet installed in more vehicles, GM's Adler says, "It isn't something you can slap on a vehicle," and explains that the automaker has been working to install it across the board ever since the agencies have revealed its importance. "It's a major engineering change to the vehicle."

Toyota
Toyota spokesman Bill Kwong questions the correlation between weight and safety; he says that Toyota has been incorporating more high-strength steel, which improves crash resistance yet saves weight, though again, at a higher cost to the automaker.

Kwong said that side-impact airbags are now available on all Toyota cars. They're optional on the Corolla, along with the Yaris and Matrix, two cars that ranked among the least-safe vehicles, according to our methodology, without the option.

"Those models are more price sensitive," especially the Yaris, which is why the side bags are optional, according to Kwong. He adds that dealerships are told to inform shoppers of the benefits of the Yaris's side airbag system.

Ford
Several Ford Motor vehicles were on our Most Dangerous list, but the company's safety spokesman, Daniel Jarvis, explains that these are all products near the end of their life cycle and not representative of the rest of Ford's model lineup.

Jarvis said the company places a strong emphasis on safety. Several of the vehicles that place highest in crash tests are from Ford, and the company has aggressive programs in place to install side airbags and stability control across its entire fleet.

"By the end of calendar year 2009, all retail vehicles will have stability control," says Jarvis; that would be nearly three years ahead of the federal mandate. Ford has also made an enhanced version, called Roll Stability Control, aimed to prevent the likelihood of rollover, standard on its larger Expedition and Explorer SUVs, and the company is adding the system to the smaller Escape sport-utility for the '08 model year.

Jarvis suggests there are a number of reasons why pickups have been among the last to get stability control, but one is that they come in such a wide range of powertrains and configurations, and each one of them needs to be engineered individually. "Complexity is one factor," he says.

Nissan
"Nissan has not had the opportunity to fully understand the methodology that went into this listing," says Jeannine Ginivan, a spokeswoman for Nissan. "That being said, Nissan takes its commitment to safety very seriously.

"All Nissan and Infiniti vehicles are engineered to meet or exceed government safety regulations as well as our own rigorous internal safety requirements — the Nissan Xterra and the Nissan Frontier are no exceptions. Nissan's electronic stability control feature, known as Vehicle Dynamic Control, is standard on the Xterra and currently an option on the Frontier. Rollover curtain airbags are also optional on both vehicles.

"As a company, we are committed to the safety of our vehicles and our drivers, and we urge everyone driving a Nissan or Infiniti vehicle to do so safely."

Suzuki
"At Suzuki, we place the utmost priority on manufacturing and selling safe vehicles, and both Forenza and Reno comply with all federal motor-vehicle safety standards," says David Boldt, communications manager. "Additionally, like all 2007 Suzuki passenger cars, the Forenza and Reno offer front-seat-mounted side airbags for both driver and passenger, as well as several layers of standard safety equipment.

"It's also important to note the active safety benefits provided by Forenza and Reno, with composed handling (four-wheel independent suspension), precise steering and four-wheel disc braking. Add excellent outward visibility for driver and passengers, and Suzuki's approach is to help the driver avoid an accident before it occurs."

Honda, Hyundai and Kia did not return calls for comment.

1. Buick Rendezvous
Four-Door SUV
SCORE: 161
Consumer Reports' accident avoidance: N/A

The minivan-based Rendezvous helped bring new customers to Buick dealerships, thanks to the Tiger Woods ad campaign behind it. But after the 2007 model year, the Rendezvous, with its abysmal three-star (out of five) NHTSA frontal impact rating, is history, to be replaced by the 2008 Buick Enclave, a crossover SUV with a full roster of standard safety equipment.

2. Ford Ranger/Mazda B-Series
Pickup, Regular Cab/Extended Cab: Four-Wheel Drive
SCORE: 153
Consumer Reports' accident avoidance: N/A

The Ranger still follows a simple, proven design that's good for pickup buyers who really want to keep it basic and affordable. Unfortunately, side airbags or curtain bags aren't available, even as an option; neither is stability control. What's more, the Ranger (and the nearly identical B-Series) gets a low three-star NHTSA rollover rating, (which corresponds to a 20% to 30% risk of rollover in a single-vehicle crash) with one of the highest rollover risk factors (0.3) of any vehicle.

3. Nissan Frontier
Extended-Cab Pickup
SCORE: 145
ConsumerReports' accident avoidance: Average

Stability control is optional on the Frontier, and recommended considering its three-star NHTSA rollover rating. The King Cab Frontier has surprisingly low three-star NHTSA frontal crash-test ratings (most other pickups do quite well in the frontal tests), though a four-door Crew Cab Frontier was given a better four-star frontal rating. The Frontier was also rated "Poor" (out of good, acceptable, marginal or poor) by the IIHS in rear impact. Both Frontiers tested didn't have side airbags or side curtain bags, which are also optional.

4. Ford Escape/Mercury Mariner
Four-Door SUVs
SCORE: 138
Consumer Reports' accident avoidance: N/A

Ford's small sport-utility vehicle, the Escape, and its cosmetically different sibling, the Mariner, were given an overall evaluation of "Poor" (the lowest possible rating) from the IIHS due to its lacking driver torso- and head-protection in the Institute's side-impact crash test (without the optional side airbag package). The federal government also gives the Mariner one of few three-star ratings, which corresponds to a relatively high risk of rollover. And stability control isn't available. Waiting for the '08 would be a smart move, as front side airbags, side curtain bags and stability control will all finally be standard.

5. Toyota Yaris
Four-Door
SCORE: 132
ConsumerReports' accident avoidance: Worse than average

Even though the Yaris has impressive fuel efficiency, a nicely designed interior, high expected reliability, and a number of other positive attributes, Consumer Reports' John Linkov says that the Yaris can't be recommended, "because its emergency handling is quite tail-happy and the driver could get out of control very quickly." And to make an especially dangerous combination, the Yaris four-door performs badly in both major side-crash tests, with three stars from NHTSA and a "Poor" rating from the IIHS.

6. Hyundai Accent
Four-Door
SCORE: 132
Consumer Reports' accident avoidance: Average

The Accent tested near the bottom among all cars, according to IIHS crash testing, with the organization giving it a "Poor" rating in both side-impact and rear-impact tests, plus an unimpressive "Acceptable" frontal rating. And this is with standard side airbags. When the federal government tested an Accent four-door sedan, it rated its side-impact performance with three stars--the lowest it gets in 2007.

7. Toyota Matrix/Pontiac Vibe
Four-Door
SCORE: 131
Consumer Reports' accident avoidance: Average

The Matrix and the closely related Vibe fair acceptably with four- and five-star results in the federal government's crash tests. But without the optional side airbags, the Matrix gets only three stars for front-seat passengers in the side-impact test. Stability control is optional on both models, which are due to be replaced by a new model after '08.

8. Kia Rio
Four-Door
SCORE: 127
Consumer Reports' accident avoidance: Better than average

The Rio is structurally similar to the Hyundai Accent. And like the Accent, it gets a low, three-star NHTSA side impact rating, plus appalling "Poor" ratings in both side- and rear-impact tests and the not-quite-passable "Acceptable" frontal rating from the IIHS. Surprisingly, those results are with the standard side airbags. Fortunately, the Rio has "better than average" accident avoidance qualities, according to Consumer Reports testing.

9. Chevrolet Aveo
Four-Door
SCORE: 126
Consumer Reports' accident avoidance: Average

The basic, lightweight Aveo, which is assembled in Korea by GM affiliate Daewoo, is the lowest-priced U.S.-market vehicle, starting at $9,995 for 2007. Side airbags are standard for front passengers, but not in back, and by the three-star side-impact result for rear-seat passengers and the "Marginal" side-impact result from the IIHS, occupants might not fare so well in a side-impact accident.

10. Suzuki Reno/Forenza
Five-Door/ Five-Door
SCORE: 125
Consumer Reports' accident avoidance: Average

The Reno and Forenza, a four-door hatchback and sedan, respectively, are also made by GM-Daewoo in Korea. Both come with standard front seat-mounted side airbags, but that doesn't seem to help them in IIHS side-impact tests, where they get "Poor" ratings in side impact, as well as rear impact. Side curtain airbags and stability control aren't available in either the Reno or Forenza.

11. Ford Focus
Two-Door Hatchback
SCORE: 124
Consumer Reports' accident avoidance: Average

The economical Focus received a "Poor" rating from the IIHS in its side impact test, and in federal tests it achieved only a three-star rating, with an accompanying warning regarding the high likelihood of head trauma. Compiling the risk, side-curtain airbags and stability control aren't available on the Focus, and seat-mounted side airbags are optional for front occupants.

12. Jeep Liberty
Four-Door SUV
SCORE: 118
Consumer Reports' accident avoidance: Average

The Jeep Liberty maneuvers much better in real-world driving than its height might suggest, and the "Average" CR accident avoidance score is reassuring. Yet it's also given just three stars in the federal rollover rating system. Additionally, in IIHS tests, the Liberty didn't fare so well, with a "Poor" rating in rear impact and a "Marginal" rating in front impact, together corresponding to a significantly higher chance of injuries if an accident occurs.

13. Dodge Dakota
Four-Door Pickup
SCORE: 117
Consumer Reports'accident avoidance: Average

First, the good: The mid-size Dakota is one of the least-tipsy pickups, with a four-star rollover rating, plus an "Average" accident avoidance rating. Now, the bad: It's rated "Acceptable" in front- and rear-impact tests, and there's no available stability control. Side airbags and side-curtain bags are optional.

14. Chevrolet Cobalt/Pontiac G5
Two-Door
SCORE: 117
Consumer Reports' accident avoidance: Much better than average (Cobalt SS)

The Chevy Cobalt and its almost identical twin, the Pontiac G5, are a little more dangerous than average due to their side-impact performance. The IIHS gave the Cobalt a "Poor" evaluation in its side-impact tests, and when NHTSA tested the Cobalt, they noted a safety concern over the higher-than-average likelihood of serious head trauma. Front-side airbags and side-curtain airbags are optional, but stability control is not available.

15. Nissan Xterra
Four-Door SUV
SCORE: 115
Consumer Reports' accident avoidance: Average

The tall, boxy Xterra sport-utility vehicle flaunts its rugged looks toward active young men, and fortunately comes with stability control to help remedy its three-star NHTSA rollover rating and especially high rollover risk. Frontal impact results are passable but unspectacular, at four stars. Side and side-curtain airbags are optional.

16. Saturn ION
Four-Door
SCORE: 115
Consumer Reports' accident avoidance: Better than average

The ION shares its underpinnings with the Chevrolet Cobalt and Pontiac G5, but has some more substantial differences. For instance, the rollover index is slightly better. The ION gets a "Poor" rating from the IIHS in side-impact testing, along with a three-star NHTSA side-impact rating for front occupants. Head-protective side-curtain airbags are optional; stability control is not.

17. Chrysler PT Cruiser
Van
SCORE: 114
Consumer Reports' accident avoidance: Average

The very retro-stylish yet roomy PT Cruiser has been around for quite a few years essentially unchanged, with no major update during that time. NHTSA side-impact performance for front occupants is a modest four stars. Front-seat side airbags aren't standard on all Cruisers, but they're available at extra cost. Stability control isn't available at all.

18. Honda S2000
Convertible
SCORE: 114
Consumer Reports' accident avoidance: Much better than average

The high-performance S2000 convertible has stellar handling and accident avoidance, and gets a surprisingly good five-star rating in NHTSA's side-impact test, plus a top five-star mark for rollover risk. But side airbags aren't at all available on the little, low-riding roadster.

19. Toyota Scion tC
Two-Door
SCORE: 113
Consumer Reports' accident avoidance: Better than average

Like most small, sporty coupes, the tC boasts good handling--as evidenced by CR's "better than average" rating for accident avoidance and a relatively low risk of rollover. But side-impact airbags aren't standard and if not equipped with the optional side airbags and curtain bags, the tC can be a little risky. It received a just-acceptable, four-star side-impact rating,

20. Mazda3
Four-Door/Five-Door Hatchback
SCORE: 113
Consumer Reports' accident avoidance: Much better than average

The Mazda3 has been the darling of automotive critics. The styling is unique and still stands out several years after introduction, the powertrain is peppy, and it's one of the best-handling small cars. Now for the bad part: Both the sedan and hatchback versions of the 3 fared very poorly in side-impact crash tests, garnering a lowly three-star rating from NHTSA and the lowest "Poor" rating from the IIHS. Side airbags aren't standard, either.
(C)Forbes

If you drink, you can't drive these Nissans

Beer-breaths, beware.

A new concept car with breathalyzer-like detection systems may provide even greater traction for Japanese efforts to keep impaired drivers off the road.

Nissan's alcohol-detection sensors check odor, sweat and driver awareness, issuing a voice alert from the navigation system and locking up the ignition if necessary.

Odor sensors on the driver and passenger seats read alcohol levels, while a detector in the gear-shift knob measures the perspiration of the driver's palm when starting the car.

Other carmakers with detection systems include Sweden's Volvo , which has developed technology in which drivers blow into a measuring unit in the seat belt before an engine can start.

But Nissan's car includes a mounted camera that monitors alertness by eye scan, ringing bells and issuing a voice message in Japanese or English if a driver should pull over and rest.

The car technology is still in development, but general manager Kazuhiro Doi says the combination of detection systems will ultimately keep an eye on who's behind the wheel.

"We've placed odor detectors and a sweat sensor on the gear shift, but for example if the gear-shift sensor was bypassed by a passenger using it instead of the driver, the facial recognition system would be used," said Doi.

Also keeping a short leash on drivers, car seat belts tighten if drowsiness is detected, while an on-road monitor checks if a car is keeping its lane properly.

Japan's No. 3 carmaker, which competes with Toyota and Honda, has no specific timetable for marketing, but aims to yoke all technology to cut the number of fatalities involving its vehicles to half 1995 levels by 2015.

Nissan's Doi says they still have to distill exactly what impairment means: "If you drink one beer, it's going to register, so we need to study what's the appropriate level for the system to activate."
(C)Reuters

Prius still king as hybrid auto sales rise

Record sales for hybrid vehicles seen for 2007 as more models enter the market. Diesels expected to grow even faster.

The Toyota Prius remained America's most popular gasoline/electric vehicle even as sales of hybrids rose 35 percent in the first quarter of 2007 compared to last year, according to a new report from J.D. Power and Associates.

Sales of diesel-powered vehicles, already a larger portion of the market than hybrids, are expected to grow even faster.

A total of 187,000 hybrid vehicles were sold in the United States in the first six months of 2007, according to J.D. Power. Sales of hybrid vehicles are expected to decline slightly in the second half of the year but, nevertheless, J.D. Power expects a total of 345,000 to be sold over the whole year. That would compare to 256,000 sold in 2006.

"High gas prices during the first half of 2007, coupled with automakers lowering the price premium for most hybrid models, have given the hybrid market a boost," said Mike Omotoso, senior manager of global powertrain forecasting for J.D. Power and Associates.

Lower prices for hybrids, as well as sales incentives, have helped make hybrids a more economically viable choice for consumers wanting to save money on fuel.

The Toyota Prius accounted for slightly more than half of all hybrid vehicles sold in the first half of 2007. Toyota has recently begun offering sales incentives on the Prius which, for years, had been selling so well that even used models were in high demand.

"Toyota realized that they had to offer incentives for the Prius to offset the decrease in the federal tax break, which decreased from more than $3,000 in 2006 to less than $1,000 in 2007," said Omotoso. "The incentives helped Toyota maintain a strong sales pace for the Prius."

A recent J.D. Power consumer survey showed flagging consumer interest in hybrids, but interest remains strong enough to maintain a continued rise in sales.

"While consideration for hybrids is falling, interest in hybrids is still strong among consumers, and projections indicate steady growth for this segment in the coming years," said Omotoso. "Bringing additional hybrid models to the market will serve to fuel that interest."

Despite increasing competition from other hybrid models - including seven new models expected to enter the market later this year - J.D. Power expects the Prius to remain the sales leader for several more years. Among the new hybrid models expected this year are hybrid versions of Ford's Ford Fusion and Mercury Milan sedans and hybrid versions of General Motor's full-size SUVs.

J.D. Power expects hybrid vehicles to make up 4.6 percent of the total new vehicle market by 2010 when there will be as many as 65 hybrid models for sale in the U.S.

Diesel vehicles, including heavy-duty pickups such as the Ford SuperDuty, already make up about three percent of the new vehicle market, Omotoso said.

That percentage is expected to rise to about five percent by 2010, said Omotoso, with most of that growth coming from newly introduced passenger vehicles such as a diesel-powered Honda Accord that will replace the current Accord Hybrid.
(C)CNN

2007 Acura TSX Test Drive

Those looking for huge power and acceleration may find the Acura TSX lacking, but this sporty sedan has great moves and an efficient engine that likes to be pushed.
MSRP: $28,090

The Acura TSX demonstrates that rewarding yourself doesn’t necessarily have to divert you from the mission at hand — in this case, driving from point A to point B. The TSX is a more upscale rendition of the Honda Accord sold in Europe. Slightly smaller than the U.S. Accord, the four-door TSX delivers a decidedly sporty feel, but it can feel a bit underpowered compared to other compact premium sedans. The current TSX debuted in 2004 and will likely see a major overhaul for 2008 and be relaunched as a 2009 model.

Unlike most entry-level luxury sedans, which offer V6 engines, the TSX is propelled by a very willing 2.4-liter four-cylinder engine that drives the front wheels. This high-revving four-cylinder imparts a sporty demeanor, especially when coupled with the standard six-speed manual transmission, a combination that lends a lively character to the driving experience.

The TSX is only available in one trim level. Buyers have a choice of a six-speed manual or five-speed automatic transmission, and they can opt for the Acura Navigation System with voice-recognition capabilities.

Exterior

The TSX has a very pleasing overall look, although this isn’t a car that breaks any new styling ground. There are no outward cues to immediately set it apart from the pack. Rather, the TSX is a common theme executed well. The driver can expect knowing looks of approval from those who understand what this car is all about, but don’t expect to turn heads at every stop light.

From many angles, particularly the rear three-quarter view, the Honda family lineage is quite obvious. The nose of the TSX is sculpted with large air openings and outboard brake-cooling ducts that signal a performance-influenced design. Its stance is aggressive as well, riding on 17x7-inch, nine-spoke alloy wheels and low-profile performance tires that fill the wheel openings. Adding to the car’s aggressive appearance is the aerodynamic body kit that visually lowers the car’s ride height. A pair of chrome-tipped dual exhaust outlets are yet another subtle reminder that the TSX is tuned to be fun to drive.

Exterior fit and finish is typical Acura: tight tolerances, small, straight body panel gaps and a flawless paint treatment. The TSX has a solid look and feel, and the quality is anything but entry-level.

Interior

The no-nonsense theme continues inside the cabin. The TSX is a five-passenger sedan with two form-fitting buckets up front and a three-seat bench in the rear. Leather is standard, along with power adjustable heated front seats with driver’s-position memory, a dual-zone climate control system and all the convenience touches you’d expect in a luxury sedan.

While the interior is comfortable in many respects, the emphasis remains on the driver. The driving position is reassuring, with good visibility in all directions. The TSX instrument cluster is one of the best in the industry, with large, bright, electroluminescent gauges dominated by the speedometer and tachometer placed directly in the driver’s line of sight. A secondary, digital, multifunction display positioned between the two primary analog gauges provides a wealth of useful information, including fuel economy, range until empty, outside temperature, odometer, trip odometer and a variety of maintenance reminders.

One grip on the fat, three-spoke steering wheel lets the driver know that the TSX is going to entertain on two-lane country roads. Control layout is intuitive, with all major functions falling right to hand. The steering wheel, pedals and shifter all feel perfectly placed, yielding a comfortable driving experience from the first turn of the key.

Ordering the navigation system, a $2,000 upgrade, delivers an eight-inch touch screen located just below the vents in the center stack of the dash. In addition to the big, easy-on-the-eyes display, Acura added voice recognition to the system to keep the driver’s attention focused on the road during demanding situations. And what if you’re not sure which restaurant along your route is best? Zagat® Survey restaurant reviews are part of the navigation database to help narrow the selection. The voice-recognition system is surprisingly functional and can also command the climate control system as well as select XM satellite radio channels.

Performance

Acura’s choice of a four-cylinder engine for the TSX defines its character. This car is intended to be driven in a sporting manner, not lugged around like one with a torque-happy six- or eight-cylinder engine. The 2.4-liter engine takes full advantage of Honda’s Intelligent Variable Timing and Lift Electronic Control (i-VTEC) to make the most of the smaller displacement. Basically, the system makes the engine operate differently at higher engine speeds, so revving it a lot produces satisfying power, while just driving it normally optimizes the efficiency inherent in four-cylinder engines. The result is a highly efficient engine that produces 205 hp and 164 pound-feet of torque. Peak horsepower is produced at a lofty 7,000 rpm, near the redline that is reached a mere 100 rpm later.

In contrast to six-cylinder engines, such as in Acura’s own TL sedan and in competing German sport sedans, the four-cylinder in the Acura TSX may feel less powerful in normal driving. That’s because larger engines have more power at slower speeds. But having to rev the TSX’s engine is part of the fun and what makes driving the car a unique experience.

We recommend choosing the six-speed manual transmission over the optional five-speed automatic. It makes finding the sweet spots in the TSX power band very rewarding. This slick-shifting, close-ratio manual transmission snicks though the gears with precision. Both fifth and sixth gears are actually overdrive ratios, with sixth reserved for highway cruising. This means that these two gears are designed to keep the engine at lower rpms to conserve fuel and reduce noise, vibration and harshness during high-speed, long-distance cruising.

The TSX’s sporty character doesn’t really come through chugging around town, though it’s comfortable and tractable enough to serve daily-commuter duty well. It’s out on the open road, where you can explore the upper limits of the very willing engine and transmission, that the TSX really comes alive.

Acceleration is brisk when the TSX is allowed to rev freely. Don’t expect abundant power down low, but once the tachometer needle sweeps past 3,000 rpm, the i-VTEC system brings the silky-smooth engine alive. The best power is found between 6,000 rpm and the 7,100-rpm redline.

Run the TSX hard and you can expect the 0-60 mph sprint to happen in the mid-six-second range. EPA fuel economy numbers are quite respectable for this class of vehicle, 19 mpg city/28 mpg highway for the six-speed manual. Bear in mind that flogging the engine for top acceleration and speed will return far worse fuel economy.

The automatic transmission does 1 mpg better in the city (20 mpg) and the same on the highway, according to the EPA. We found these numbers to be a little conservative, unless your foot is pinned to the floor all the time. A steady cruise at 65-70 mph on the highway netted 32-plus mpg, and with a light throttle foot, our manual test car averaged 27-28 mpg for combined driving.

The TSX’s handling qualities are quite addictive. This is a car that can be driven with precision the first time you slide behind the wheel. Road feel is transmitted back to the driver through a firm but compliant chassis. Drivers used to a cushy ride might find the TSX a little punishing over road irregularities — that’s because the car was engineered for taught handling more than sheer driving comfort.

Fortunately, while the TSX has a sporty ride, the tuning is not overly aggressive, and long stints behind the wheel don’t become tiresome to those accustomed to sporty cars.

Overall, the Acura TSX is a very well-balanced package and a great value. It will be most appreciated by those who prefer a taut ride and relish the opportunity to rev its lively engine to the limit as you would a race car on the track.
(C)Forbes

About Paying for Cars With Cash

There are two questions that greet every car buyer who walks into a showroom: “Are you ready to buy today?” and “How do you plan to pay?”

If the answer to the first is yes, there are smiles all around. If the answer to the second is cash, that warm greeting may grow chilly.

To be sure, no dealer will turn away a cash-paying customer, not in the atmosphere that surrounds the automobile industry these days, but all things considered, they are less welcome than buyers who want to lease or finance their cars. “We actually love all paying customers,” said George Borst, the chief executive of Toyota Financial, “but we really want people to finance.”

On the other hand, many car dealers are trying to clear out big inventories at the end of the 2007 model year to prepare for fresh models that begin arriving soon.

But buyers who pay cash, whether they write a check or borrow the money elsewhere and bring it to the showroom, provide car dealers with fewer opportunities to make money on a car deal.

That ranges from the cut they get from arranging a lease or loan, to options like extended warranties or antirust coating that buyers are more likely to choose if they can fold it into the amount they borrow. In some cases, those extras account for up to 75 percent of a showroom’s profits.

But, to some dealers’ chagrin, cash deals are up in 2007. Some 11.7 percent of buyers paid cash for cars in the first half of this year, versus about 8 percent over the last few years, according to a survey by CNW Marketing Research, which studies car buying habits.

In all, about 26 percent of buyers are bringing cash to the table, whether it is out of their bank accounts or in pre-arranged loans through their credit unions, banks or home lenders, according to the Power Information Network, the research arm of J. D. Power & Associates.

That overall figure is up slightly from last year, but still below the one-third of buyers who paid cash in the 1950s, when customers, many with lingering memories of the Great Depression, came to showrooms with their check books or stacks of bills.

It is in line, however, with the rate during the 1970s and 1980s, before car companies made widespread use of cut-rate loans and discount lease plans.

One big reason for the recent rise in cash-paying buyers is the introduction of small and less-expensive cars into the American market, like the Honda Fit, Toyota Yaris and Nissan Versa, said Art Spinella, the president of CNW Marketing.

Because many consumers purchase small vehicles as second and third cars, and have a car loan for their primary vehicle, a number are choosing instead to pay cash rather than take on another loan, Mr. Spinella said. That is particularly true for women buyers, who account for about 42 percent of cash-paying customers.

Cash-paying buyers, who tend to be wealthier than typical consumers, are often reaping investment profits. This year, 34.8 percent paid for their cars by selling stock, the most common source of cash, compared with 31.8 percent who took money out of their savings, Mr. Spinella’s data showed.

Indeed, at brands like Mercedes-Benz, Volvo, Audi and BMW, as many as one-third of transactions are cash sales.

For these customers, sticker price can be no object. One shopper at Lexus of Ann Arbor, Mich., recently paid $116,000 in cash for the Lexus LS 460 Lh, the hybrid version of Lexus’s ultra luxury sedan, which went on sale in July.

Mark A. Louria, the general sales manager there, said about 25 percent of his customers paid cash for their new cars, keeping them for an average of six to seven years. Mr. Louria said he tried to encourage many customers to lease their cars instead, arguing that it was a better way to take advantage of ever-changing technology.

In the end, “it’s whatever works best for them,” Mr. Louria said.

Shopping sites like Edmunds.com, Cars.com, Kelly Blue Book (kbb.com) and Autobytel.com are places where consumers can research data like the invoice price, and the amount that manufacturers are giving to dealers in rebates and extra incentives.

Those who plunk down dollar bills often cite a single reason. “I just don’t like debt,” said Todd Larson of Shorewood, Minn. Mr. Larson and his wife, Linda, paid $33,000 cash for their 2005 Ford Freestyle, as well as a 2001 Jeep Cherokee.

For Matthew Galloghy, 30, who lives in Batavia, Ohio, outside Cincinnati, it is simply saving money. He recently paid about $20,000 for a Honda Accord, and plans to drive it for about 10 years.

Mr. Galloghy takes his thrift to another level. He said he would make a monthly deposit equal to a car payment, or about $300, in a money market account. “And now I certainly have a cushion for emergencies or anything else that may come up,” Mr. Galloghy said.

Cash purchases had all but died out in 1998, when buyers were snapping up cheap lease deals that allowed them to take home more expensive models, especially sport utility vehicles, for little down and minimal monthly payments.

After a rebound, they plummeted again in the months after the September 2001 attacks, when auto companies led by General Motors rolled out zero percent financing plans in an effort to spur auto sales.

Lately, these plans have been far more limited than they were earlier this decade, said Jesse Toprak, an analyst with Edmunds.com, a Web site that offers car-buying advice. Many automakers, who made zero percent financing available to virtually any customer six years ago, now offer it only to those with the best credit, he said.

Auto company finance arms and banks have been burned by oversetting these cars’ residual value, or the amount that they estimate the vehicle to be worth when the lease is finished. The higher the residual, the lower the monthly payment, but a too-high residual means the finance company takes a loss on the car after it is turned in.

These lenders also have been hurt by their practice of encouraging five and six-year car loans, which can lead to lower payments, but can result in a vehicle being worth less than the remaining amount to be paid off, a situation the industry calls “upside down.”

Zero-percent-financing plans, in which buyers need only pay for taxes, licenses and other documentation, can prove more beneficial to consumers with the best credit.

Likewise, a discounted lease of 36 months or less can allow trend-conscious customers to swap their cars for the next hot model without gambling on the car’s value, even though they will pay interest on the lease, transaction fees, and may need a down payment. No matter what, buyers need to haggle over the price first before discussing the details.

But some buyers simply want to own outright. In that case, these consumers need to do their homework before they begin negotiating, checking out the prices that are being paid in their area for the automobile they want on sites like Edmunds, which provides a tool it calls the “true market value.”

Buyers enter their ZIP codes, and then choose the options they want, and are provided with the price most frequently paid by purchasers in their area.

Without that knowledge, cash-paying customers risk not just a frosty dealer response, but a concerted effort to get them to change their minds, said Mr. Toprak, who sold cars early in his career.

“When I was at a closing and the customer said, ‘this is a cash deal,’ I knew I would not make any money for the next hour,” he said.

Mr. Toprak advised cash buyers to get prices from several dealers through their Web sites. If a sales person balks at honoring that figure because a customer wants to pay cash, the buyer can threaten to go elsewhere, he said.

Still, some buyers prefer to stick to their guns.

John Kealing, a St. Louis salesman, paid $34,000 cash for his 2006 Infiniti G35x, the second car this decade for which he has paid cash. Mr. Kealing said he deliberately waited until the last minute to tell the dealer that he was paying cash. “He found out when he put the loan document in front of me,” Mr. Kealing said.

The dealer “tried to talk me out of it, actually,” he said. “He told me he had some great rates, but I didn’t waver.”

Rob Butler, owner of the Butler Automotive Group in Indianapolis, said he doesn’t discourage customers who want to pay cash from doing so.

“If a guy likes to write a check, fine,” Mr. Butler said. “Cash is still cash.”
(C)NYT