Cars
Wheel and Deal
The average sticker price now tops $30,000. But don't be put off: Smart shopping can save you thousands.
By Mark Solheim, Senior Editor
From Kiplinger's Personal Finance magazine, December 2004
Advertisement
Class-leading horsepower, strong resale numbers and standard safety equipment make the Infiniti G35 sedan ($28,740) Best in Class in the $23,000-to-$30,000 category -- for the third year in a row. Best New Car is the redesigned Volvo S40 T5. The turbocharged car is bigger and faster than its predecessor, with sporty touches and a way-cool dash design meant to appeal to a younger and hipper crowd than the average Volvo buyer.
Ford's new sedan, the Five Hundred, is Best New Car in the $18,000-to-$23,000 category. The Five Hundred ($22,795 for the SE) is built on the same platform as the Volvo S80. The massive trunk can hold eight sets of golf clubs. All-wheel drive is optional. The front seat is positioned higher than in most sedans, more like that of an SUV. The design won't turn heads, and the engine won't win Le Mans, but the whole package is solid and value-priced. At the opposite end of the size spectrum, the Mini Cooper S ($20,449) takes Best in Class laurels. The trunk is tiny, but it leads the category in resale value and has the lowest injury claims -- not surprising, given its lineup of standard safety features. This year you can get a droptop version of the Cooper ($21,500) and Cooper S ($24,950). Scion's latest model, the tC ($16,465), is Best New Car in the under-$18,000 category. The tC benefits from standard anti-lock brakes and optional side and head airbags, a 51% resale value after three years, and an interior quality worthy of a much pricier car. The Volkswagen Golf TDI hatchback ($17,995) wins Best in Class in our lowest-cost category. The VW diesel gets 38 mpg in the city and 46 on the highway and is packed with standard safety equipment.People movers
The Dodge Magnum is selling out at dealers, appealing to buyers who like the idea of buying American at a value price. But the Magnum falls short in our rankings because it has less cargo room than average, doesn't offer side-curtain airbags and gets a lower resale-value estimate than the foreign competition.
The redesigned Subaru Outback 3.0 R VDC Limited ($34,070) avoids those pitfalls to drive off with our Best New Wagon award. It's fully equipped with safety features and has standard all-wheel drive and enough SUV DNA to go off road. The Volvo V70 R ($39,435) takes Best Station Wagon honors. This V70 has one of the best resale values in the category, 300 hp from a turbocharged engine, plenty of room behind the back seat and all the safety features.
In the world of minivans, the big news for 2005 is the redesign of the Honda Odyssey ($25,510), which outranks last year's big winner, the Toyota Sienna, as Best in Class and Best New Minivan. The Odyssey makes side-curtain airbags and stability control standard and has the peppiest engine in the thoroughly revived minivan class. The Chrysler Town & Country/Dodge Caravan ($18,995) is also redesigned for 2005; its claim to fame is fold-flat second-row seats, in addition to the now-commonplace fold-flat third row. And GM is offering a team of new "sport vans," including the Chevrolet Uplander and Buick Terraza.The right car for you
It's important to know before you start shopping how much car you can afford. But don't let price alone determine which vehicle you buy. Use the tables in the December issue of Kiplinger's Personal Finance to draw a bead on vehicles with value. See how much you're likely to pay for fuel, insurance, maintenance and repairs, and how much the car will be worth after three and five years.
Don't give safety short shrift. This year, we're giving more points for equipment such as side-curtain airbags and stability control, which uses the braking system to prevent or mitigate out-of-control skids. That boosts the rankings of models that have advanced safety features, particularly European imports and some Japanese models. And it hurts models that lack even optional side airbags and stability control, which, unfortunately, still describes most of Detroit's offerings. Also, check out crash-test scores at the National Highway Traffic Safety Administration's Web site (www.nhtsa.gov) and the site for the Insurance Institute for Highway Safety (www.iihs.org). Many vehicles have been redesigned to better withstand head-on collisions but are still vulnerable in side crashes. That's why side airbags are important.
Other, harder-to-measure factors also affect how satisfied you'll be with your wheels down the road. AutoPacific, a consulting firm in Tustin, Cal., bestows annual vehicle-satisfaction awards based on a vehicle's operation, comfort, safety and customers' overall purchase or lease experience at the dealer. For 2004, cars topping the list include the Lexus LS 430, Nissan Maxima, Cadillac DeVille, Pontiac Grand Prix, Mazda6, Volkswagen Jetta, Mercedes-Benz SL and Acura RSX. Among SUVs, the Lincoln Navigator, Nissan Armada, Mitsubishi Endeavor and Hyundai Santa Fe get the highest scores. And the Honda Odyssey gets top marks among minivan owners.
When you've narrowed down the models, it's time for test drives. Dealers know that once you're behind the wheel inhaling that new-car smell, your cool negotiating skills tend to wilt. The best way to fend off test-drive delirium is to separate the drive from the deal. Call dealerships to set up test-drive appointments. When you're asked if you're ready to buy today, emphasize that you're just beginning your search. For more on how to test-drive a car, plus a test-drive worksheet you can print out and take to the dealer, see our online buyer's guide.