Cars
The Best Cars of 2003
A bitter battle for market share will sustain a buyers' market for new cars and trucks.
By Ed Henry
December 1, 2002
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2002 was a great year for automakers, with 17.2 million brand-new cars and trucks sold during the model year. Sales were fueled by 0% financing, a rush by homeowners to refinance, which freed up cash, and an apparent decision by many investors to spend money on a new car rather than see it lost to the bear market.
But what does that mean for 2003? With so many new-car buyers already satisfied and a glut of attractive, relatively new trade-ins on used-car lots, how can carmakers hope to keep the good times rolling? By making buyers offers they can't refuse, that's how.
"We like to think it's a combination of the financing package and an array of products that are bringing them in," says Jim Farmer, vice-president of public affairs of GMAC, General Motors' financing arm. "When you can get 0% financing, it's hard not to buy a car." In October, GM raised the stakes still higher by adding no down-payment and no payments for 90 days to its 0% financing deals.
With the threat of a slowdown battering their stock prices, manufacturers will pull out all the stops in an increasingly bitter battle to win market share. That's good for buyers. "For consumers, it boils down to affordability," says David Cole, president of the Center for Automotive Research, in Ann Arbor, Mich. "Ten years ago, it took about 30 weeks of work to buy a car. Now the time is down to 22 weeks."
Another indisputable factor driving buyers to the showrooms is a steady stream of new vehicles coming into the market. Consider the Chevrolet SSR. The SSR is a retro street rod: part sports car, part convertible and part pickup truck. It pulls into showrooms -- and will pull buyers (and gawkers) into showrooms -- beginning early 2003. And when it comes to tapping a nostalgic nerve, BMW's Mini Cooper has been bringing smiles to faces across the country since it arrived earlier this year. You'll soon start seeing a ragtop version of the Volkswagen Beetle, too. And Porsche -- yes, Porsche -- is entering the SUV market with its five-seat Cayenne.
It was Cupid's arrow, not 0% financing, that led Phyllis Teitelbaum and her husband, Tony Lunn, of Princeton, N.J., into the showroom a few weeks ago. The couple fell in love with the new Mini Cooper, a modern-day, sporty rendition of the minimal British Mini from the late '50s.
Versatility is what convinced Harry Garcia, a Key Biscayne, Fla., firefighter to dump his minivan and make Honda's newest SUV, the Pilot, the family car.
And Carol Gendreau of Apple Valley, Cal., is now driving a 2003 Chrysler 300M because incentives made it a better deal for her than a leftover 2002.
If you hanker for a new car or truck, you'll most likely find it in Car Finder, our online car guide.
Retro rides
Getting from point A to point B is the prosaic reason for having a car. But -- face it -- most of us want poetry. We care about how a car looks, the power it delivers, the adrenaline it pumps, and the attention it grabs as we drive around town.
Tony Lunn proves the point. When he saw the 2003 version of the Mini, he couldn't wait to call his wife of 30 years to share the news. "Phyllis, I'm really sorry to tell you this, but I've fallen in love with another," he said. Lunn, who is now an American citizen, was first smitten with the Mini when he was a teenager growing up in England.
Back then, the car's clever engineering intrigued him. "It was very, very small on the outside and very large inside -- a perfect example of form following function," says the former research director for Johnson & Johnson. For years, Lunn regretted not being able to drive an old Mini in the U.S. "By modern standards, though, it's an unprotected tin can," he says. When the modern Mini came along with BMW's stamp of approval, Lunn couldn't resist. How strong was his desire? "We're the kind of people who don't buy anything without thoroughly researching it," he says, "but in this case 'skilled negotiation' consisted of getting an agreement that they wouldn't charge more than the $22,000 sticker price."
Other classics are returning this year, too. As noted, VW is offering a Beetle convertible after a 23-year absence. It has a motorized ragtop and comes in 21st-century colors, such as navy blue and silver, as well as the classic colors of Beetles past, such as mellow yellow and Aquarius blue.
Sports cars
Last year's all-new Audi A4 has spawned a stunning new ragtop, with a chrome grille, flared wheel wells and contoured tail. It delivers a great ride, too, because Audi's engineers have done a good job taming the twist that normally plagues topless cars.
Among the sports cars, the Chevrolet Corvette coupe, which celebrates its 50th birthday this year, is king of the hill. It earns Best in Class honors based on power, roominess and price. The new 'Vette has "selective ride control," which automatically adjusts the suspension to the type of road you're traveling on, yielding more responsive handling.
Not far behind the 'Vette is the hard-shell convertible Lexus SC 430, the Corvette convertible and the
Porsche 911 GT2. The Dodge Viper SRT-10 is right behind the Porsche, with better power but too little space. For 2003, the Viper comes as a convertible with a manual bifold top.
The revived Z, now called the Nissan 350Z, claims the title of Best New Sports Car, thanks in part to its attractive price. The new supercharged Mercedes-Benz SL55 AMG, with its retractable aluminum top, is more powerful than the Z, but it costs four times as much.
The Most Fuel-Efficient car in the sports-car category (where miles per gallon is not among the most-prized attributes) is the dashing Toyota Celica GT. The Porsche 911 wins Best Resale Value and is rated First for Safety.
Sedans
While toys and sports cars jazz up interest, practical, family-size sedans still account for nearly one-third of all new vehicles sold each year. Credit Carol Gendreau for her part in keeping sales up. In September the Apple Valley, Cal., retiree made a move she had been contemplating for several years. She traded her six-year-old Dodge Intrepid for a Chrysler 300M ($32,655). "I've always wanted a nice American sedan with all the bells and whistles," she says. "Although I'm retired, I wanted a young-looking car. I'm not the Lincoln Town Car type."
Gendreau considered a 2002 model but decided she was better off paying a few hundred dollars more for a 2003 than buying a car that would be a year old as soon as she drove it off the lot. Her new car could turn into a classic, too, because Chrysler plans to replace the 300M and its other big front-wheel-drive sedans with rear-wheel-drive cars next year.
The parade of winning sedans for a 2003 includes two strong entries that walk away with dual titles of Best in Class and Best New Car: the Honda Accord DX in the $16,000-to-$23,000 category and Infiniti G35 in the $23,000-to-$30,000 price range.
Honda's new Accord is dramatically different from last year's model. Up until now, Honda has been content to turn out terrific cars with mass appeal. "Now Honda is trying to position the Accord away from the Toyota Camry," says Dan Gorrell, vice-president of Strategic Vision, a San Diego-based consulting company. In other words, Honda has added some pizazz. The 2003 Accord is more stylish, roomy and sophisticated than last year's model. The ride and handling are much tighter than before, and the car doesn't get twitchy on fast starts. The Accord edged out the PT Cruiser for Best in Class in this category. The retro PT Cruiser blasts into 2003 with a new turbo-charged model.
In the $23,000-to-$30,000 price range, the Infiniti G35 repeats the Accord's double play, winning Best in Class and Best New Car honors. This sporty, rear-wheel-drive sedan provides top-notch handling and performance from a 3.5-liter, 260-horsepower V6.
The $30,000-to-$40,000 Best in Class winner is Saab's 9-5 Aero, which rides into 2003 with stability control as standard equipment. The completely new Saab 9-3 Arc, with a significantly bigger cabin than last year's 9-3, is the Best New Car and Most Fuel-Efficient in this category.
In the top-priced category, the smooth and powerful Lexus LS 430 is the repeat winner of Best in Class. Among the minor changes from last year: air-cooled seats. That's right, a little fan blows air through the seat bottom and back to keep you cool.
Last year, Infiniti revamped the Q45. This year, it introduces a smaller sibling, the M45, that rides away with our Best New Car award. This mighty, all-new sedan is powered by the Q's 4.5-liter engine; the company says it can do 150 miles per hour. A price in the low $40,000s makes it a steal compared with the low-$50,000 Q. Features include cooled seats, stability control and 18-inch wheels.
SUVs
A funny thing happened to American car buyers in 2002: They were overtaken by American truck buyers. For the first time, more than half of the cars sold in the U.S. were trucks -- a category that includes minivans and SUVs as well as pickups.
"These vehicles are what we call capable cars. They have a lot more functionality than sedans, which makes them very buyable," says Alexander Edwards, research partner for Strategic Vision.
Harry Garcia agrees. The Florida firefighter drove minivans for years, and his second "car" was a golf cart he used to get around the small island of Key Biscayne. But Garcia wanted a better fit for his family's active lifestyle. The answer: Honda's new Pilot SUV, which can seat eight people -- perfect for Garcia's family, which includes his wife, Tammy, and their three kids, Matthew, Liam and Erin.
"What we like about it," says Garcia, "is that we can put three car seats right behind us." And on long trips the kids in those car seats can easily watch movies on a DVD player mounted overhead. Garcia leased a $32,500 model for $440 a month for 48 months.
We like the Pilot, too, but it was edged out by the much more expensive Volvo XC90 for Best New SUV honors in our big-SUV category.
Among big SUVs, the Chevrolet Suburban's size and power again drive it to Best in Class honors. Like all GM full-size sport utility vehicles, the Suburban gets engineering and safety upgrades that include two-stage air bags, more comfortable seats, improved brakes and optional XM satellite radio. GM's new four-wheel steering (Quadrasteer), which significantly reduces a vehicle's turning radius, is available as a $4,500 option.
Toyota's Matrix, which wins Best in Class and Best New SUV among small SUVs, is proof that you can pack a lot of utility into a small package. The Matrix racks up its winning score with high rankings for power, passenger space, price and resale value. The Pontiac Vibe is virtually the same SUV but has a lower resale value.
Minivans
Honda's Odyssey continues to dominate the minivan category and wins Best in Class, thanks primarily to power and safety. How do you improve on a winner? Honda will revamp the car next year with two goals in mind: more power and a quieter ride.
Pickups
When it comes to pickups, Best in Class honors go to GMC's Sierra 2500, thanks in part to its huge bed area and high safety marks. Chevrolet's Silverado SS, thrust to the top by its power and safety, wins Best New Pickup. The rugged Toyota Tundra Access Cab wins Best Resale Value, retaining 48% of its price after four years. But none of these trucks can compete with the Ford F-series when it comes to sales. It's the Best Seller with 875,000 sales in 2002.
Talk about dual personalities: Carmakers are working hard to produce environmentally friendly vehicles that sip fuel like an aristocrat at an afternoon tea party. At the other extreme, they're making big bucks on high-speed, gas-guzzling trucks. In between, there's an increasingly eclectic range of choices.
Hybrids
You'll find three gas-electric hybrids on the market: Honda's Insight and Civic and the Toyota Prius. Each combines a gasoline engine with an electric motor that recharges the battery as you drive. Compared with the Jetsons look of the Insight, the Civic and Prius are normal-looking little sedans. We've driven all three and were impressed with their ride and power.
The newest entry, the Civic, is available with a continuously variable transmission that provides seamless acceleration. It gets 46 mpg in the city and 51 on the highway, slightly less than the Prius's 52/45 and the Insight's phenomenal 61/68 mpg. Honda will also offer its natural-gas-powered Civic to the public this year. The $21,000 vehicle has previously been available only to businesses.
Car-truck blends
When Chevrolet brings back the curvy sports truck next spring, the open-air SSR (Super Sports Roadster) will sell for about $37,000. The low-volume street rod is based on Chevy's TrailBlazer truck platform. A power retractable hardtop stows away in a compartment between the seat and the truck bed.
Also rolling into the showrooms: the Subaru Baja -- part four-door sedan, part pickup truck. The Baja is actually an abbreviated Outback wagon with a short pickup bed where the enclosed cargo area would have been. Remember the Subaru Brat from the 1980s? Think far higher quality and a much better ride and you've got the Baja. It's roomy inside, and the pickup bed is big enough to be useful. On the road, the all-wheel-drive Baja delivers a tight ride, much better than you find in small pickup trucks.
The most extreme choice among the 2003s is also the biggest toy in Automobileland: the new GM Hummer H2. For pure street-riding purposes, we found the vehicle surprisingly civil. But off-road, it's a virtual tractor: With it, you can climb a mountain and head for the sky.
Reporter: Erin Burt