Buying a used car from a private seller can be a smart way to save money. New vehicles lose value quickly, depreciating about 30% in their first two years and another 8% to 12% annually after that, according to Kelley Blue Book.

At the same time, dealership prices and fees remain elevated, making even used vehicles a significant purchase. As a result, many buyers turn to private sellers in search of a better deal.

A private-party sale can offer substantial savings, but it also comes with added risks. Unlike dealership purchases, private sales are typically sold as-is and often don't include vehicle warranties or other consumer protections. Before handing over your money, it's important to take a few key steps to protect yourself and make sure you're getting the vehicle you expect.

Understand what 'as-is' really means

Buying a car "as-is" means you're purchasing it without a warranty and accepting responsibility for any existing or future problems, whether they're known or hidden. Because private sellers can't certify vehicles or provide warranties, most private-party sales are conducted on an as-is basis.

That can leave buyers with limited legal options if something goes wrong after the purchase. In many states, lemon laws that protect consumers from defective vehicles don't apply to private sales.

For that reason, it's essential to thoroughly evaluate any vehicle before buying it from a private seller. Taking the time to inspect the car, review its history and verify its condition can help you avoid costly surprises later.

Start with the title before anything else

Before you inspect a vehicle, verify that the seller owns it. Ask to see the title and make sure the seller's name matches the name listed on the document. If it doesn't, the seller might not have the legal right to sell the vehicle.

Review the title carefully for any liens, which indicate that money is still owed on the vehicle. A lien must typically be satisfied before ownership can be transferred. You should also look for title brands such as "Salvage" or "Rebuilt," which indicate the vehicle has sustained significant damage in the past.

A rebuilt title means the vehicle was previously declared a total loss but was later repaired and returned to the road. While some rebuilt vehicles can be safe and reliable, it's important to have an experienced mechanic inspect the repairs and evaluate the vehicle's condition before you buy it. Salvage and rebuilt vehicles generally carry more risk and have lower resale values, so they should be priced below comparable vehicles with clean titles.

Run a vehicle history report

Using the vehicle’s 17-character VIN (vehicle identification number) on the driver’s side dashboard or the driver’s side door jamb, run a search using a platform such as CARFAX or AutoCheck.

Review the vehicle history report for potential issues, including its:

• Accident history
• Odometer rollbacks
• Flood damage
• Title brands
• Ownership history

Look for inconsistencies between the information on the history report and the information the seller is giving you. Those inconsistencies might be a red flag and a warning to walk away from the purchase.

Get the car inspected by a mechanic

Paying for a pre-purchase inspection can be one of the smartest investments you make when buying a used car. During the inspection, a mechanic will evaluate the vehicle's overall condition, including its electronics, engine, transmission, brakes and structural components, while looking for signs of wear, damage or poor repairs.

A professional inspection might uncover hidden problems such as fluid leaks, frame damage, rust, transmission issues or warning lights that aren't immediately obvious during a test drive. Spending a few hundred dollars on an inspection could save you thousands in unexpected repair costs by identifying major issues before you complete the purchase.

Inspect the car in daylight

Inspect the car in daylight so you can more easily spot potential problems. Look for uneven paint, mismatched panels or gaps in the body, which could indicate prior damage or poor repairs. Check the tires, too, since uneven wear patterns might point to suspension or alignment issues.

As you review the interior and exterior, watch for signs of flood damage, such as mud under the seats, a musty odor, moisture in the engine compartment or stained carpeting.

Test the vehicle's electronics and features before you buy. Turn on the heat and air conditioning, check the lights, test the backup camera and make sure the digital console works properly. Electrical repairs can be expensive, especially on newer vehicles, so take your time confirming that these features are fully functional.

Take a real test drive

Take the vehicle on a thorough test drive that includes both city streets and highway driving. Listen for unusual noises and pay attention to how the car handles at different speeds.

Test the brakes, including a firm stop when it's safe to do so, and note whether they feel responsive.

As you drive, check whether the vehicle tracks straight or pulls to one side, which could indicate alignment or suspension issues. Make sure the transmission shifts smoothly and consistently throughout the ride.

Questions every buyer should ask

Be prepared to ask the seller all the right questions:

• Why are you selling?
• How long have you owned it?
• Do you have maintenance records?
• Has it ever been in an accident?
• Are there any current mechanical problems?

Asking these questions ahead of time could help you identify potential issues and decide whether it's worth going to test drive the vehicle. When you go to see the vehicle, be prepared with a list of any additional questions you want to ask.

Red flags that should make buyers walk away

Watch out for red flags that mean you should walk away from the vehicle:

• Seller refuses an inspection: A seller who refuses an inspection might be trying to hide a known issue that could be revealed during the inspection.
• Seller pressures quick payment: A deposit should be enough to hold the vehicle while you arrange the payment for the remaining balance. Determine a payment timeline before you put down the deposit. If a seller pressures you to pay quickly, walk away.
• Price seems too low: Vehicle prices are at a premium right now. A price on a used vehicle that seems too good to be true probably is.
• Title issues or excuses: Look for a vehicle with a clean title. If a seller can’t or isn’t willing to produce the title upfront, there might be issues that you’ll want to avoid.
• Cash-only demands: Some sellers could ask for payment in cash for a lower-value vehicle. Be cautious with these arrangements, and make sure they’re conducted in a safe location. A cashier’s check is a much safer option than carrying a large amount of cash on you.

How to pay safely

When paying the seller, arrange to meet at a bank or a safe-exchange zone at a police station. Use a cashier’s check or a secure money transfer method. Be sure that you and the seller complete and sign a bill of sale, and that you each retain a copy of the document.

Before you complete the purchase, verify your state’s title requirements. In many states, the seller will need to sign and date the back of the title. Don’t complete the transaction unless you receive a signed copy of the title.

Don't let a bargain become an expensive mistake

Buying a used car from a private seller can be an effective way to save money, but those savings can disappear quickly if you overlook warning signs or skip important steps. Taking the time to verify the title, review the vehicle's history, schedule a prepurchase inspection and thoroughly test drive the car can help you avoid costly surprises.

Approach the transaction carefully, and don't let emotions or pressure influence your decision. If something doesn't seem right or the seller is unwilling to answer questions or provide documentation, be prepared to walk away. There will always be another vehicle, but recovering from a bad purchase can be much more difficult.

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Gas prices rarely stay predictable for long. When fuel costs swing, many drivers start reconsidering their options at the dealership.

That shift is showing up in the electric vehicle market. After years of higher sticker prices, electric and hybrid vehicles are becoming more financially competitive with traditional gas-powered cars, especially in the used market.

A wave of lease returns, increased supply and steep depreciation has pushed many used EV prices down to levels similar to comparable gas vehicles. At the same time, buyers weighing the switch still need to consider insurance costs, charging access and long-term maintenance. Here’s what to know about how the costs compare today.

Why EV prices are suddenly closer to gas cars

Electric vehicles have historically carried a higher upfront price than comparable gas-powered cars. But that gap has narrowed significantly in the past two years.

One of the biggest drivers is depreciation. Many early EV models have lost value faster than traditional vehicles, partly because rapid improvements in battery technology have made older models less desirable.

At the same time, a surge of off-lease vehicles and growing inventories is expanding the used EV market. As more supply enters the market, prices have continued to fall.

According to recent market data reported by Reuters, used EV prices have dropped sharply in the past few years, helping push many models into price ranges comparable to similar gas-powered vehicles. Analysts expect the supply of used EVs to keep growing through 2026 as more leases expire and new models hit the road.

For buyers who previously found EVs out of reach, the used market is quickly becoming the most affordable entry point. Faster depreciation can benefit buyers but may affect resale value for current owners.

The used EV market is becoming an entry point for buyers

A few years ago, many EVs carried price tags well above $40,000. Today, some used models are appearing below $25,000, putting them in line with the cost of many used gas vehicles.

That price drop is attracting a broader group of buyers, particularly those who want to try electric driving without paying new-car prices.

The lower purchase price can also help offset other ownership costs that sometimes run higher for EVs, such as insurance premiums.

Insurance can still cost more for EVs

While purchase prices are falling, insurance remains one area in which EV owners might pay more.

Industry estimates suggest that EV insurance premiums are typically about 10% to 20% higher than comparable gas vehicles. Some studies have even found that some EV drivers pay nearly 49% more for insurance coverage.

A major reason is repair costs. EV batteries and specialized parts can be expensive to replace, and many repair shops still lack experience servicing electric vehicles. Even relatively minor accidents can result in higher repair bills if battery systems or specialized electronics are affected.

As the EV market matures and repair networks expand, those costs might gradually decline, but for now, they remain a factor in overall ownership costs.

Use the tool below to explore and compare some of today's top auto insurance offers:

Charging vs gasoline: Where EVs save money

Where electric vehicles often gain a financial advantage is fuel. Drivers who charge their vehicles at home typically spend about 5 cents to 8 cents per mile on electricity, depending on local utility rates and vehicle efficiency.

Gas-powered vehicles, by comparison, often cost around 8 cents to 15 cents per mile to fuel, depending on fuel prices and the vehicle's fuel efficiency.

Over several years of driving, those differences can add up to significant savings. For drivers with long commutes or high annual mileage, the fuel savings alone might total thousands of dollars. However, drivers who rely heavily on public fast chargers might see smaller savings, since public charging can cost more than home electricity.

Here’s how fuel costs compare for a typical driver over the course of a month and a year:

The above estimates are based on the average miles driven per year, according to Kelley Blue Book. Monthly mileage is approximately 1,015 miles. Gas costs assume a national average of $3.86 per gallon and a vehicle averaging 30 miles per gallon.

Electric vehicle costs are based on an average household electricity rate of about 17 cents per kWh and a typical EV efficiency of three to four miles per kWh. Actual costs will vary based on fuel prices, electricity rates, vehicle efficiency and driving habits.

Maintenance costs are usually lower for EVs

Electric vehicles also tend to have lower routine maintenance costs. Unlike gas vehicles, EVs don't require oil changes, spark plugs or many of the engine-related services associated with internal combustion engines. With fewer moving parts, there are fewer components that can wear out.

Some estimates suggest EV maintenance costs can be roughly 30% to 40% lower over time.

Another advantage comes from regenerative braking, which helps recharge the battery while slowing the vehicle. This process reduces wear on traditional brake systems, often allowing brake pads to last longer than they would in gas vehicles.

The wildcard: Battery replacement and long-term ownership

One potential concern for buyers is battery replacement.

EV batteries can be expensive to replace, often ranging from about $5,000 to $15,000, depending on the vehicle model. However, manufacturers typically provide long warranties (often eight years or 100,000 miles) on battery systems.

Most EV owners never face battery replacement during a typical ownership period. Still, buyers considering long-term ownership might want to factor this possibility into their calculations. Battery technology also continues to improve, which could further reduce replacement costs over time.

Why hybrids might be the middle-ground option

For some drivers, hybrid vehicles offer a practical compromise. Hybrids still rely on gasoline engines but pair them with electric motors to improve fuel efficiency. That can translate into meaningful fuel savings without the need for charging infrastructure.

Because hybrids don't rely entirely on large battery systems, insurance and repair costs can sometimes be lower than those of fully electric vehicles.

For drivers without access to home charging or those who frequently take long road trips, hybrids can offer many of the efficiency benefits of electric-based driving while avoiding some of the logistical challenges.

EVs might finally compete on price, but ownership costs still vary

Electric vehicles are becoming more financially competitive than ever before, particularly in the used car market.

But the sticker price tells only part of the story. Insurance premiums, local electricity rates, driving habits and access to home charging can all affect the true cost of ownership. For many buyers, the most helpful approach is to compare five-year ownership costs, rather than focusing solely on the purchase price.

As EV inventories continue to grow and prices stabilize, more drivers might find that electric or hybrid vehicles finally fit both their lifestyle and their budget.

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Buying a new vehicle is a major investment, and the cost of new vehicles has soared in recent years. According to Kelley Blue Book, the average price of a new car reached a record $50,326 in December 2025, making any potential savings on a vehicle purchase even more valuable.

Costco may be known for offering great deals on groceries, appliances and other items, but the Costco Auto Program could help you save on a new or pre-owned vehicle purchase or lease. While the program provides a more streamlined buying experience, it doesn't always guarantee the lowest possible price.

The program offers several additional perks for members, from discounts on parts and service to discounts on RVs. Taking a closer look at how the program works and what these benefits include can help you decide whether it's a good fit for your next vehicle purchase.

What is the Costco Auto Program?

Costco doesn't sell vehicles directly. Instead, it connects members with a network of participating dealerships that offer prearranged pricing. The Costco Auto Program, which has been around since 1989, is free to use with an active Costco membership.

Through the program, members can shop for new vehicles, electric vehicles and certified pre-owned models, all with pricing negotiated in advance through participating dealers.

How the Costco Auto Program works

Once you decide to use the program, the process is fairly straightforward:

• Visit the Costco Auto Program website. To get started, you’ll search the auto program website for the type of vehicle you want to buy or lease. You'll enter your zip code and pick out the vehicle you want.
• Get connected with an approved dealership. After selecting your car, you'll enter your contact information and Costco member number. From there, Costco will connect you with an authorized dealer. That dealer will contact you to make an appointment.
• Review price information. During your appointment, you'll receive prearranged Costco member pricing on the vehicle.
• Complete your purchase. You can choose to complete the purchase or lease, or you can decide not to buy the vehicle after seeing the prearranged price.

Costco vets and trains participating dealerships, with a focus on customer service, to help ensure a more consistent and lower-pressure buying experience. However, Costco doesn't sell vehicles or negotiate individual transactions. You'll complete the purchase directly with the dealership.

Pricing is negotiated in advance between Costco and participating dealers, but it isn’t displayed online. Instead, you'll need to visit or connect with the dealer to receive your prearranged Costco member price and decide whether to move forward with the purchase.

Dealerships pay a fee to participate in the program, which helps support and maintain the service.

How much money can you save?

The amount you can save through the Costco Auto Program varies based on the vehicle model, demand and your location. Some estimates suggest average savings of around $1,000 on a new vehicle purchase, though actual discounts can be higher or lower depending on market conditions.

In some cases, limited-time manufacturer incentives can increase your savings when combined with Costco’s prearranged pricing. For example, the current promotion offers eligible Costco members up to $1,250 on a new Chevrolet Traverse for Executive Members ($1,000 for non-Executive Members), plus any additional incentives they qualified for.

These types of promotions can increase the overall value of the program, especially if you're flexible on timing your purchase.

Additional perks beyond vehicle pricing

The Costco Auto Program also includes perks beyond vehicle pricing that can add ongoing value. Member-only incentives and limited-time promotions can be stacked on top of the prearranged Costco price, potentially increasing your total savings at the time of purchase or lease.

In addition, members receive 15% off parts, service and accessories at participating service centers. Savings are capped at $500 per visit, but these discounts can help reduce maintenance and ownership costs over time, especially for routine services or larger repairs.

Pros of using the Costco Auto Program

Here are a few reasons to consider using the Costco Auto Program:

• Simple purchase process: With the program, you can get a prearranged price on your vehicle. There's no haggling required, and the purchase is simple and straightforward.
• Access to vetted dealerships: Costco has vetted dealerships for customer service, which can give you peace of mind as you shop.
• Predictable pricing: Costco's prearranged pricing is predictable. It typically won't exceed the vehicle's MSRP and may help you save compared to what you would pay at another dealership.
• Reduced sales pressure: Compared to traditional dealerships, the Costco Auto Program offers a lower-pressure buying or leasing experience.

Cons and limitations buyers should know

While there's a lot to like about the Costco Auto Program, it does come with some drawbacks:

• Must use participating dealers: If you want to use the program, then you must buy a vehicle through a participating dealer. That might mean you could miss out on decent deals offered by dealers that don't participate in the program.
• Pricing isn't quoted remotely: In most cases, the preauthorized pricing isn't quoted remotely, and you'll need to make an appointment with a dealer to access that pricing.
• Negotiators could find better deals elsewhere: If you're a skilled negotiator, you might be able to find a better deal on that same vehicle by using a traditional approach and negotiating a vehicle price down, especially if you have an older vehicle to trade in.
• You might face add-ons or extras: Dealers in the Costco program might still offer add-ons or extras. These options can quickly increase your preauthorized price.
• Costco membership required: To use the Costco Auto Program, you’ll need an active Costco membership.

Who the Costco Auto Program works best for

The Costco Auto Program tends to work best for buyers who value simplicity and a more predictable experience. If you dislike negotiating, the prearranged pricing can take much of the stress out of the process.

First-time car buyers may also appreciate the straightforward, guided approach, while busy shoppers can benefit from being able to start the process online and complete a more streamlined transaction at the dealership.

The program can be especially useful for high-demand vehicles, where discounts below MSRP are harder to find. In those cases, even a modest prearranged discount or added incentive can provide value.

That said, the program may not be the best fit for every buyer. If your top priority is getting the lowest possible price and you are willing to visit multiple dealerships, negotiate or use competing offers as leverage, you may be able to find a better deal on your own.

Tips to get the most value from the Costco Auto Program

You can get the most value from the Costco Auto Program if you're willing to do a little extra research:

• Compare Costco pricing with outside quotes: In some cases, you might find the best pricing through the Costco program, but that won't necessarily always be the case. Do some comparison shopping and see if you could save more on the same vehicle at a dealership outside of the program.
• Stack manufacturer rebates and financing incentives: Research available manufacturer rebates and financing incentives. You can stack these on top of the Costco pricing for additional savings.
• Research dealer add-ons: Dealer add-ons, like extended warranties and paint and fabric protection, may seem like a good investment in your vehicle, but they can quickly increase the price. Research these add-ons to determine which are really worth the investment for your situation.
• Verify inventory availability: Before you visit a participating Costco dealership, verify that the vehicle(s) you're interested in are available. Doing so can ensure that you'll be able to test drive the vehicles and complete a purchase if you decide to do so.

Is Costco's Auto Program worth it?

The Costco Auto Program offers convenience and predictable pricing, but it doesn’t guarantee the lowest possible deal in every situation. If you're in the market for a new car, consider how much you value a simpler buying experience versus the potential savings of negotiating on your own.

It can be worth comparing the Costco price with quotes from other dealerships, as well as factoring in available incentives and your willingness to negotiate. Weighing these trade-offs can help you decide whether the program is the right fit for your budget and buying style.

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It’s early morning, and the sun is just peeking over the horizon as I consider my options for this morning’s drive.

The older cars are both midrepair, so I hop into my 1994 Mazda Miata. It doesn't seem antique to me, but at more than 30 years old, it qualifies as a classic for today’s drive.

After a quick engine check raises no red flags, I close the hood, climb in and hit the gas.

There's a chill in the air and fog on the San Francisco Bay, but the top is down. At this early hour, the roads are almost empty, so there's nothing to keep me from my destination: A private airport less than an hour north, where car nuts such as me will meet for a cup of coffee and a 100-mile drive before going on with our day.

In an era when the roads are increasingly filled with formless cars with the sex appeal (and to be fair, the reliability) of kitchen appliances, the vintage car hobby has lasting allure.

Driving a classic car, or just going to classic car events, has all the ingredients of a great retirement pursuit: Instant community, rich experiences in beautiful places, and maybe a way to make some money. Driving a vintage car can make running errands around town much more fun, as fellow drivers flash their headlights or give a thumbs-up as you pass.

How to get started as a classic car collector (or even just a spectator)

Classic car prices vary widely. It's possible to snag a classic vehicle for four figures if you're willing to do some repairs or live with cosmetic flaws. A much-sought-after Porsche 911 can fetch six figures, and Ferraris can easily command millions.

However, consider the expense of parts and labor before you buy. Many people will tell you, “The most expensive car is a cheap [insert exotic car brand here].”

Avoid the lure of a fixer-upper unless you know the car well and are an experienced mechanic. There are many cars that have a reputation for robustness (for example, Japanese cars from the 1980s through the 90s have aged into classic status), which can be important for a first-time buyer.

Buying online

Finding rare cars has never been easier, thanks to the internet. Sites such as Bring a Trailer, Cars & Bids and eBay Motors allow you to search for cars worldwide. If you grew up trying to imagine what cars looked like from the abbreviations in classified ads (such as "5SPD/PS/AC/MNRF"), you'll be pleased to find entire portfolios of photos and videos of each car.

Research the market trends and common faults of a particular model, and check the reputation of any seller you are considering. These sites will also help you arrange remote inspections and shipping directly to you (assuming you don’t relish the adventure of driving a classic cross-country, while blindly trusting the previous owner’s maintenance habits).

The car community

The internet made it easy to connect with groups of fellow enthusiasts for a drive or just to meet and check out each other’s cars. Most groups have a vibrant social media presence, and many organize automotive events from the all-encompassing to the exceedingly esoteric.

This morning’s “Breakfast Club Rally,” hosted by one of these groups, casts a wide net, is open to cars old and new and draws a turnout as impressive as the location.

Cars are parked nose-out on a runway with foggy grapevines in the distance. Interesting modifications are highlighted by an open hood or trunk.

I spy a rare Ferrari FF (a 650 HP two-door station wagon of which only 2,291 were made from 2011 to 2016) and a replica of the 1950s Porsche 550 James Dean died in (see below). As rare as both are, there are two of each on this morning’s drive.

What to look for in a classic car

You don't have to spend a fortune to participate. My humble Miata cost less than $2,000 and is hardly rare. “Blinking” the flip-up headlights delights young children, and discerning drivers appreciate the upgrades I have made to it.

My Miata has 50 horsepower less than a base Toyota Camry, but it's light, and on the curvy back roads on this rally, it can keep up with the Ferraris with five times the power.

Uniqueness often wins hearts and minds rather than list price or raw horsepower. Often, an excited crowd will form around a particularly wild homemade build or a scorned-in-its-time 70s econobox, while a mint supercar next to it will be ignored.

Before you buy: Storage, maintenance and insurance

Cars require a bit more space and upkeep than a coin or record collection. Original paint and chrome need to be protected from the elements, and devoted collectors rent extra space when they outgrow their home garages.

Automobile storage businesses are becoming popular in larger cities; they not only store cars but also keep batteries charged, perform routine maintenance and have them prepped for a weekend drive.

Insurance and registration can also be complex and expensive, but companies such as Hagerty provide collector insurance, and certain states have less expensive registration options for classics that aren’t driven regularly.

In certain states, passing emissions tests can be challenging, especially for modified vehicles, so it pays to be aware of local regulations. A hot-rodded car from Montana might be literally impossible to register in California, for instance.

Mechanically minded retirees can find that time spent making their cars faster, more reliable or just unique is as much fun as actually driving it, especially if they develop a man cave filled with stacks of tools and walls of automotive memorabilia.

But many (most?) drivers never turn a wrench, while professional mechanics provide services ranging from tune-ups to frame-up restorations. Don’t expect a 24-hour turnaround, as many of the best mechanics have long waiting lists.

It can be worth taking the time to find the right person who knows the idiosyncrasies of your particular car. Once-common skills such as fine-tuning carburetors are increasingly rare among younger mechanics, who are taught to diagnose problems with computer scanners rather than their ears, eyes and fingers.

Classic cars as investments

The car market is a fickle investment strategy. Some misers manage their garages like portfolios, buying low, selling high and putting as few miles as possible on their pampered trailer queens.

But not driving these cars defeats their intended purpose. Making a profit (after the costs of storage, insurance and upkeep) is a rarity unless you're lucky enough to find an undervalued car or put in a great deal of sweat equity in one.

If you find time behind the wheel or under the hood a chore, none of this will make sense. But if you consider the payback of community, accomplishment and adventure the car hobby provides, it might be a great investment in you, regardless of profit.

Car values have cooled recently after a pandemic bubble, as the workforce has returned to the office. If a dream car once seemed unattainable, and YOU aren't returning to the office, it might be worth checking on it. It could be your time to buy a classic.

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If you drive, chances are you’ve been buying cars your entire life. You already know the buying experience inside and out.

“At this stage of life, most of my clients just want everything to be convenient and hassle-free,” says Adam Rex, a financial planner with Cornerstone Financial Services in Virginia Beach. Unfortunately, the vehicle market has some new headaches thanks to supply chain issues, tariffs and changes in vehicle technology.

Whether you’re planning to buy soon or exploring options for the future, here’s what to know about purchasing a car today.

1. Prepare for sticker shock

The average price of a new car just hit over $50,000, according to Kelley Blue Book. “There were steep price increases after the COVID-19 pandemic, and prices remain at an elevated level,” says Chase Gardner, data insights manager at Insurify, an online car insurance quote marketplace.

2. Consider going for a 'budget' test drive

Given the skyrocketing prices, monthly payments have also gone up. You can get a feel for your expected loan payment using a website like Calculator.net.

Consider a budget “test drive,” says Rex. “For a few months, set aside what you expect to pay on the new car and see if it’s doable.” Don’t forget about adding money for insurance, registration and maintenance. At the end of the test, you’ll have extra cash for a down payment.

It’s especially important to plan ahead if you’ve recently retired on a fixed income and have a different household budget than when you were working. The number of people struggling and missing car payments is climbing quickly for consumers of all income levels because of high prices and interest rates. Avoid getting locked into something uncomfortable.

3. Leasing simplifies things

As always, when getting a new car, the question is whether to buy or lease. When you buy, payments start higher, and you’re responsible for more repairs and maintenance. But after you pay off the loan, payments stop. Plus, you can later sell the vehicle or trade it in.

Leasing is a long-term rental, so the payments never end. However, you can regularly replace your vehicle with a new model every few years at the end of each lease, and you don’t have to repair damage from normal wear and tear.

Given the tradeoffs, Rex finds leasing to be a more convenient fit for retirees, especially if they plan to continue driving for only a few years. “When it’s done, you just hand the vehicle back to the dealer. There’s no hassle of selling,” says Rex. Just be aware of any mileage caps and restrictions if you drive a lot. For snowbirds who go between New York and Florida every winter, leasing is probably not the right fit.

4. Weigh financing versus paying out of savings

If you’re going to buy, think about whether it could make sense to pay off the entire vehicle at once using your savings.

Paying up front means you don’t have an ongoing loan payment and won’t be charged interest. On the other hand, you no longer have the money to invest. If you make a lump sum withdrawal from a pre-tax traditional Individual Retirement Account or 401(k), the entire amount will be taxable, could push you into a higher bracket and create surcharges on your Medicare premiums.

Borrowers with strong credit scores (650+) today pay between 5% and 7% for a new car loan, while subprime borrowers face double-digit interest rates. “If your investments are earning more than your quoted loan rate, financing could make sense,” says Rex, the financial planner from Virginia Beach.

5. Your loan interest could be deductible

A new provision in the One Big Beautiful Bill Act allows taxpayers to deduct up to $10,000 per year in car-loan interest from 2025 through 2028 on new, U.S.-assembled vehicles. Used car purchases and leases don’t qualify.

You can claim this tax break even if you use the standard deduction, making it more accessible than deductions that require itemizing. If you paid off your home and no longer qualify for the mortgage interest deduction, this new tax break can help make up the difference. The loan interest deduction does phase out for individuals with a modified adjusted gross income over $100,000 and for married joint filers with an MAGI over $200,000.

6. Consider comfort and convenience

When researching and test-driving, think about whether a vehicle would make your life easier and keep you safe on the road. “For most retirees, the best vehicle choice is a small SUV or midsize sedan,” says Gardner from Insurify. “They’re easy to park, have a higher seating position and offer great visibility.”

If you spent your career driving a high-powered sports car or dreamed your whole life about getting one in retirement, ask whether this is the wisest move. They’re expensive to repair and less reliable. “No one wants to worry about a car breaking down on the way to a doctor’s appointment,” says Rex.

The faster speed increases the chances of an accident, especially if your reaction time is not what it used to be. Plus, since sports cars are lower to the ground, they are harder to get in and out of.

7. New tech can keep you safe, but also create headaches

If it’s been years since you bought a car, you might be taken aback at how much the technology has changed. And often, not in a good way: distracting touchscreens instead of physical buttons, facial recognition instead of keys to start the car, and even pop-up video ads in some vehicles.

Not all innovations are a step in the wrong direction. Some have come a long way to reduce accidents, especially for tired and fatigued drivers: automatic emergency braking, blind-spot monitoring, lane-keeping assistance and backup cameras.

Still, even these safety features take getting used to. The typical 15-minute test drive might not be enough to really see if a car is a fit for your style. If you have your eye on a specific model, consider renting it for a weekend before deciding.

8. Understand car insurance costs

Car insurance rates skyrocketed after the COVID-19 pandemic, something you certainly noticed with your current bill. Even though rate hikes have slowed, premiums remain high. Keep this in mind when deciding what to buy.

Newer cars are more expensive to insure than used ones, because they have more costly parts and technology. Sports cars are also more expensive to cover, given the additional risk of a crash. You’ll enjoy an insurance discount when you start retirement, but only to a certain point.

“Drivers in their 60s enjoy the lowest average full-coverage premiums, about $155 per month,” says Gardner. “For drivers in their 70s and beyond, rates creep up as insurers factor in slower reaction times.” You can lower costs by taking a defensive driver’s course or using a pay-by-the-mile insurance policy if you aren’t on the road often.

9. Downsizing simplifies things

If you own multiple cars from when the kids were living at home, ask whether you still need more than two, or even more than one. Giving up one of your cars in retirement can lead to real savings. Each vehicle increases costs for registration, insurance and maintenance even if they aren’t being driven often. Demand for used cars is extremely high, making it a seller’s market. You may be surprised by how much you get for your old vehicles.

10. Tariffs will drive up prices even more

The $50,000 record car prices don’t reflect new tariffs, as dealers haven't fully priced those in yet.

Tariffs are highest on European models, making Japanese and American vehicles comparatively affordable. Still, prices for American models could climb too, since many rely on imported parts or are partially manufactured abroad.

While you shouldn’t rush a purchase, the current landscape creates some urgency. “Tariffs will likely increase prices by another 10% to 25%. If you’re thinking of buying a car within the next couple of years, acting sooner could make sense,” says Gardner.

Note: This item first appeared in Kiplinger Retirement Report, our popular monthly periodical that covers key concerns of affluent older Americans who are retired or preparing for retirement. Subscribe for retirement advice that’s right on the money.

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It’s always a good time to get a good deal. But as tariffs take effect on some imported goods — and as the Trump administration continues to negotiate tariffs with other countries — you may be especially interested right now in how you can save money while you shop.

Kiplinger Personal Finance Magazine has taken the time to assess how you can find deals this year on investments, groceries, electronics, clothing, cars and travel, as well as how to take advantage of credit card perks — with a special emphasis on finding deals for products and services most prone to rising prices as the trade war evolves. In this article, we look at deals on cars. (See below to find links to our other articles about deals.)

The 25% tariffs on imported cars and car parts that went into effect in the spring have significantly affected the U.S. auto industry, prompting automakers to adjust pricing and production strategies.

“The bottom line for consumers is they’re going to have to do a lot of extra research,” says Brian Moody, senior editor for Kelley Blue Book (KBB), an automotive vehicle valuation and research company.

Not all vehicles will be affected equally, and even cars built in the U.S. may cost more, so you’ll want to research prices thoroughly to avoid surprises, he says.

If you’re shopping for a car, consider these strategies to reduce your costs, both up front and over the long term.

Leverage your memberships

Members of wholesale retailers Costco and Sam’s Club can take advantage of their car-buying programs.

The Costco Auto Program helps members find deals on new and used cars, collaborating with dealerships to prearrange special pricing for members.

Members recently also had access to special promotions and incentives, such as up to $2,000 off on select new Audi models or discounts on electric vehicles from brands such as Chevrolet and Volvo.

Additionally, Costco provides discounts of 15% (up to $500 per visit) on parts, service and accessories. Costco’s annual membership fees start at $65 per year.

Sam’s Club also offers prenegotiated pricing on new and used cars. The average savings for new cars is about $3,400 off the manufacturer’s suggested retail price, according to TrueCar, an online automotive marketplace.

Members can also get discounts on tires and tire installation. Sam’s Club memberships start at $50 per year.

Factor in insurance and other long-term costs

Some vehicles are more expensive to insure than others. More-affordable vehicles, such as the Toyota Corolla, Toyota Camry and Honda Accord, will usually have the lowest insurance premiums, Moody says.

Buying a car that’s relatively inexpensive to insure can keep your long-term ownership costs down.

Comparison-shop insurance policies, too. Most major insurers offer free quote calculators on their websites. Or use a site such as TheZebra.com to compare quotes from multiple insurers.

Think about other long-term costs as well. Buying a fuel-efficient vehicle can significantly lower the costs of car ownership over time.

At www.fueleconomy.gov, click on “Compare Side-by-Side” to use a tool that allows you to select various vehicle models and compare their fuel economy.

For each model, you’ll also see estimated annual fuel costs and how much you’ll save (or how much more you’ll spend) on those costs over five years compared with the average new vehicle.

Note: This item first appeared in Kiplinger Personal Finance Magazine, a monthly, trustworthy source of advice and guidance. Subscribe to help you make more money and keep more of the money you make here.

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There's nothing like cruising: Your favorite tunes are playing and you’re just vibing in the moment. It's one of the best parts of owning a vehicle.

Of course, car ownership isn’t all smooth rides — there are some less desirable aspects, too. One of the biggest headaches? Recalls.

Carfax reports 57.7 million vehicles on the road today have an open recall. These recalls can be issued for many different reasons, from faulty equipment to programming coding errors.

While recalls might have a somewhat thorny reputation, there's more to the picture. "Recalls are a good thing, because it means the system works as designed," Brian Moody, an executive editor with Autotrader, tells Kiplinger.

He notes that recalls often address issues that "the average person" might not have even noticed. While one or two recalls over a car’s lifetime isn't a big deal, frequent recalls could be a sign of a reliability issue. And if you plan to buy a luxury vehicle, peace of mind is vital before paying that premium.

That’s why knowing which luxury brands are less susceptible to recalls can help you avoid frequent trips to your mechanic — and enjoy your ride with greater confidence.

Which luxury vehicles have the fewest recalls?

To find top cars with the fewest recalls, I started with a recent iSeeCars study that analyzed data from the National Highway Traffic Safety Administration (NHTSA) for the past 10 years for vehicles in each luxury segment.

The study calculated how many recalls each model received and projected the average number of recalls per year for each vehicle, giving shoppers a sense of ongoing reliability, as the lower the number of expected recalls annually, the better.

I also combed recall data from Cars.com to find a reliable performance car selection to round out the top six.

With that, here are luxury cars with the fewest recent recalls:

Not surprisingly, you'll find some commonalities among the data. Lexus and Mercedes-Benz come out as some of the most reliable luxury brands you can buy.

The Lexus IS 300 starts from $41,610 and features sporty handling and fast performance, thanks to the optional 260-horsepower, turbocharged engine that transforms mundane drives into heart-pounding adventures.

The stylish SUV has the Lexus Safety System 2.5, including lane-tracing assist, a pre-collision system with pedestrian detection, blind spot monitor with rear cross traffic alert and intuitive parking assist, which uses sonar sensors to help you better detect obstacles around you as you maneuver to park.

Meanwhile, the Mercedes-Benz GLA class only has five recalls per decade, meaning you'll average one every two years. The GLA SUV comes comfortably equipped starting from $43,000.

The dual 10.25-inch screens give it a sports car vibe. Adding to its allure is a compact, but capable 2.0L engine delivering up to 221-horsepower and the dual-clutch, eight-speed transmission offers a responsive driving experience from hugging curves to accelerating on the open road.

On the safety side, this SUV comes with active brake assist. How it works is it uses radars to measure the speed of vehicles ahead of you and if it detects a collision could be imminent, it slows down your vehicle to operate at a safe distance behind the drivers in front of you.

Meanwhile, I also wanted to add a reliable super-performance vehicle to the list. In the end, the Maserati GranTurismo had only six recalls in the past decade. That's impressive reliability to go along with unmatched performance.

Try this one on for size: The 2025 GranTurismo Modena generates up to 483-horsepower, capable of propelling this stylish ride from 0 to 60 miles per hour in a mere 3.7 seconds. Heart-racing performance works in tandem with the vehicle's muscular and agile design, meant to handle curves like a champ while having an iconic stance that separates it from the rest of the vehicles. The Modena comes comfortably equipped with a starting price of $158,000.

Which luxury cars have the most recalls?

On the flip side, the study also targeted some of the luxury car brands with a higher frequency of recalls in the past decade being a future predictor of more recalls to come.

Here's a look at the six luxury vehicles topping the list of recalled models:

While Tesla dominates this list, it's worth keeping in mind that some Tesla recalls can be addressed via some of the manufacturer's capabilities, including "over-the-air" updates, where you can download updates to fix certain issues.

Along with Tesla, Porsche and BMW had multiple models making the list.

How do you know if a vehicle has recalls?

Before buying any vehicle, it's a good idea to conduct recall research. Obtain the vehicle identification number (VIN) of the vehicle you're considering, then visit the NHTSA's website to see if any current recalls exist.

You can also use the NHTSA's interactive database to research recalls by brand.

Doing the research ahead of time helps you see which brands are more reliable. That way, your mechanic becomes a distant memory and not a frequent destination.

Other recall notification tips include:

• Update your contact information: If you move, "contact your local dealer and let them know you're new to the area and ask them to run a recall check on your car," advises Moody. "Ask them to keep in touch if any recalls arise in the future."
• Make sure to check your renewal paperwork: Some states, like Ohio, will include any active recalls associated with your vehicle on that paperwork.

The bottom line on car recalls

While vehicle recalls are a basic part of car ownership, they're also one of the least fun aspects. And frequent trips to the mechanic can be less than confidence-inspiring, especially if you paid for a luxury car.

If you're looking to buy a new ride in the near future, the study from iSeeCars highlights rides that are least likely to be plagued with recalls. And remember, keep your information updated with your dealer, so if a rare recall does arise, you can address it promptly.

Related content

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• What to Know if You're in the Market for a Car This Year

About the Kiplinger Readers’ Choice Awards

The Kiplinger Readers’ Choice Awards aim to recognize and celebrate the best products and services in the personal finance arena. We asked you, our Kiplinger community, to help us name the products and services you think have delivered excellent value in the past year.

The survey results, which we’re sharing here in our second annual Readers’ Choice Awards, offer valuable insight into which providers shine when it comes to your everyday interactions and experiences with them. Our Awards recognize excellence in everything from credit cards, banks and brokers to insurers, tax software and financial apps.  For each category, we’ve listed an overall winner that earned the highest score. We’ve also highlighted other products and services that earned above-average scores for various criteria we asked readers to assess.

By voting, our community has helped us form our guide to the very best financial products. These are the products and companies that you think stand out from the crowd.

Kiplinger Readers' Choice Awards: Auto Insurance Companies

Readers weighed in on their auto insurance provider based on how competitive the rates are, their experience with filing claims and how likely they would be to recommend the insurer to others.

For more information on how auto insurance works, read our article on the most common types of car insurance.

OVERALL WINNER: Erie Insurance

Outstanding for:

• Competitive rates
• Claims experience
• Most recommended

Readers have positive words for Erie all around. “Hands down the best auto insurance company I’ve dealt with,” says one. “I had damage from a hit-and-run. Erie worked with me to get it repaired with minimal inconvenience to me,” says another.

Some readers also mentioned Erie’s Rate Lock feature, which holds your premium steady; it fluctuates only if you add or remove a vehicle or driver or change your address or the place where you routinely park your car. “Only insurance company I’ve used that really does a price lock!” one reader says.

Other notable features include First Accident Forgiveness, meaning you won’t face a surcharge the first time you’re at fault in an accident if you’ve been an Erie customer for three or more years. For each consecutive policy year in which you don’t file a claim, your deductible will be reduced by $100 (up to a maximum amount of $500) in most states. Erie serves 12 states — mostly in the Midwest and the South — as well as Washington, D.C. 

USAA 

Outstanding for:

• Competitive rates
• Claims experience
• Most recommended

Readers heaped on the praise for USAA’s auto insurance offerings. “Superb customer service and very simple claims handling,” says one reader. “I would never consider anyone else for insurance,” says another. Some also remarked on its affordable insurance rates. “I have compared rates on several occasions, and no other company has been able to come close,” a respondent says.

NJM Insurance Group

Outstanding for:

• Competitive rates
• Most recommended

NJM auto insurance is available to residents of Connecticut, Maryland, New Jersey, Ohio and Pennsylvania, and readers express their appreciation for quality customer service and affordable premiums. “Excellent company. Rates are as fair as they can be in New Jersey,” says one reader. “Claims service is excellent—very responsive,” says another.

NJM provides a number of discounts; you can save by bundling other insurance products from NJM (such as a homeowners policy) or by insuring multiple cars with the company. If you have a child who is a student that earns good grades, he or she may qualify for discounts, too.

Amica

Outstanding for:

• Claims experience

Amica serves customers across the continental U.S. “I can’t find anything that beats Amica: Their rates are good, claims processing is fair and friendly, and I am recognized as an individual,” says one reader. Another remarks, “I used Amica for 48 years and have found their claims service to be excellent, including one nasty accident/lawsuit resolution for my daughter.”

You can save on your auto premiums with Amica by bundling home and auto insurance plans or by staying with the insurer for more than two years. The longer your relationship stands with Amica, the more savings you may qualify for.

Kiplinger Readers' Choice Awards Categories

• Wealth Managers
• Donor Advised Funds
• Cash Back Credit Cards
• Travel Rewards Credit Cards
• Hotel Rewards Credit Card Programs
• Airline Rewards Credit Card Programs
• National Banks
• Full-Service Brokers
• Tax Software
• Auto Insurance Companies
• Homeowners Insurance Companies
• Peer-to-Peer Payment Services

One of the reasons why Americans are holding onto their older cars is because of the high prices new cars bring. Kelley Blue Book reported the average car buyer spent $49,740 on a new vehicle in November of 2024. That's only $218 short of the record for the average price set in December of 2022.

So, why are prices so high for vehicles? In 2022, there was a limited supply driving up costs. However, that isn't the case in 2024. One of the reasons why the average car price is so high is because more car owners are preferring luxury brands, with higher price tags. Sales of vehicles $80,000 and over increased 37% compared to December of 2023.

Want to buy a new car? There are mixed signs on the horizon

Despite the trend of aging cars, there is evidence that new car prices are getting somewhat more affordable.

Buick and Volkswagen had their average year-over-year sale prices fall by 7% and 6% respectively. And Mitsubishi's average sale price dropped by 12%, according to Kelley Blue Book.

How long will this trend hold? It depends on what the future holds. During his trip to the Super Bowl, president Donald Trump announced a 25% tariff on all steel and aluminum imported goods.

If that goes into effect, the price dips seen by some manufacturers could go away. To demonstrate, a $25,000 car imported from Canada or Mexico could increase up to $6,250, according to S&P Global Mobility.

And car manufacturers would pass that cost onto the buyer. Therefore, if you're in the market for a new vehicle, sooner than later might be your best bet before the proposed tariffs could into effect.

Other factors impacting car affordability

Of course, driving a car comes with more costs than just that purchase price, and drivers have been feeling a crunch across multiple waves.

Kiplinger's energy outlook predicted gas prices to rise. While we enjoyed lower prices at the pump for a hiccup, it appears costs are back on the upswing, with a $3.11 gallon average.

Auto insurance premiums are soaring, and, as the Kiplinger Letters team reported, new cars that feature advanced safety systems can have higher insurance rates because those systems cost more to replace in the case of an accident. There are, though, ways to save on insurance by comparison shopping:

On the flip side, however, there's always the EV tax credit if you choose to get an electric vehicle. And if you're not comfortable getting a new car quite yet with prices as they are, you can at least rest easy considering keeping a car longer is sometimes better for the environment anyways, if you don't drive all that much, according to Outside magazine.

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Stellantis is recalling 284,982 vehicles in the U.S. due to issues with the right and left side curtain airbag inflators on certain models.

The recall covers certain 2018 to 2021 model year Chrysler 300 and Dodge Charger vehicles.

“The right and left side curtain air bag inflators may rupture due to a manufacturing defect,” according to a National Highway Traffic Safety Administration (NHTSA) report. “An inflator rupture may result in sharp metal fragments striking occupants, resulting in injury or death.”

A Dodge or Chrylsler dealer will replace both side curtain airbags for free, the NHTSA said. Owner notification letters are expected to be mailed on May 3, it added.

Owners with questions or concerns may contact FCA US customer service at 1-800-853-1403. FCA’s number for this recall is 19B.

Owners may also call NHTSA’s Vehicle Safety Hotline at 1-888-327-4236 (TTY 1-800-424-9153), or visit the NHTSA website.

How to check for recalls

Vehicle recalls are common. Manufacturers regularly monitor car safety and function issues to alert drivers of necessary repairs. One issue that is becoming increasingly common is faulty software, which some carmakers are looking to resolve through remote updates.

You can check for manufacturer recalls of any vehicles at NHTSA recall page.

To check for recalls of any Chrysler model, visit the company’s Check Recall website.

To check for recalls of any Dodge model, you can visit the company's Check Recall website.

For each of these websites, you’ll need to enter your vehicle identification number to perform a search.

To make your car last longer, experts advise that you make sure it gets regular maintenance service. 

It’s important to stay updated on alerts related to your vehicle to maintain safety while driving. While repairs under a manufacturer's recall do not require insurance and do not need to be reported, according to The Motley Fool, knowing what car insurance covers can be a good idea.

And when you need to take your car to the shop for repairs, doing some research ahead of time on websites such as YourMechanic and RepairPal could help you determine if the repair estimate matches the diagnosed problem.

Related Content

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This event has ended.

If you drive a Hyundai, you've likely heard that thieves have stolen thousands of models that lack certain anti-theft protections. I should know, as my own Hyundai was stolen recently. This weekend, Hyundai owners in Las Vegas can get free help with a software upgrade.

Las Vegas Anti-Theft Clinic

The Las Vegas Metropolitan Police Department and Hyundai have teamed up to help current Hyundai owners without immobilizing anti-theft devices. Qualified Hyundai models will receive a free installation of anti-theft software and an anti-wheel lock, while supplies last.

Clinic hours: The clinic will be held from 8 am to 6 pm on Friday (3/22), Saturday (3/23), and Sunday (3/24).

Where to go: Las Vegas Metropolitan Police Department, 400 S. Martin L. King Blvd, Las Vegas, NV 89106.

How it will help protect your vehicle: Hyundai has offered a free anti-software security upgrade for customers who have not received the patch through their dealerships or who continue to be at risk from theft. Technicians will install the software upgrade. You may also receive a free wheel lock, while supplies last.

How long will it take? It should take no more than 30 minutes.

Hyundai models that qualify

If you drive one of the following Hyundai models, you are eligible for the clinic.

• 2018-2022 Accent
• 2011-2022 Elantra
• 2013-2020 Elantra GT
• 2013-2014 Genesis Coupe
• 2018-2022 Kona
• 2020-2021 Palisade
• 2013-2022 Santa Fe
• 2013-2018 Santa Fe Sport
• 2019 Santa Fe XL
• 2011-2019 Sonata
• 2011-2022 Tucson
• 2012-2017 & 2019-2021 Veloster
• 2020-2021 Venue

Will the clinic protect your car?

This security upgrade appears to be the same one offered at dealerships. In my own experience, it wasn't enough to keep thieves from stealing my car. Safety experts agree that the software patch is weak. But it's still important to install. It will likely deter the less-adept thieves, and it will demonstrate to your insurance company that you are doing all you can to protect your car. 

You deserve some money for these headaches

If you own an affected Hyundai, you should have received a letter asking if you would like to register for the class-action lawsuit against the company.

Lawfirms Barron & Budd and Hagens Berman secured a $200 million settlement for a class-action lawsuit they filed on behalf of affected Hyundai (and Kia) owners. The suit seeks compensation for theft, insurance deductibles, higher insurance premium rates and other expenses. 

The suit could mean real money in your pocket. According to a CNN report, if you owned a qualifying car that was a complete loss, you may be eligible for payments of up to $6,125.  For other types of damage, you may receive payments of up to $3,375. Save your receipts for all related costs not covered by insurance, such as rental cars and ride shares.

To learn more about the suit, read more on Hagens Berman's Hyundai/Kia Car Theft Defect Lawsuit & Settlement FAQ page.

Issues with the ground cable connections on certain Mercedes-Benz vehicles have prompted the automaker to recall 116,020 vehicles in the U.S.

The recall covers certain 2019 to 2024 model years of 11 Mercedes-Benz vehicles that could have insufficient tightening of the ground cable connection under the front passenger seat, according to a National Highway Traffic Safety Administration (NHTSA) report.

“In combination with the high electrical currents potentially flowing through this connection, the temperature in this area might increase,” the NHTSA said in the report. “As a consequence, a risk of fire cannot be ruled out completely.”

The recall affects the following vehicles:

• 2023-2024 Mercedes-Benz GLE 350
• 2020-2024 Mercedes-Benz GLE 450
• 2020-2023 Mercedes-Benz GLE 580
• 2019-2023 Mercedes-Benz GLS 450
• 2020-2023 Mercedes-Benz GLS 580
• 2021-2023 Mercedes-Benz Maybach GLS 600
• 2021-2024 Mercedes-Benz AMG GLE 53
• 2021-2023 Mercedes-Benz AMG GLS 63
• 2021-2024 Mercedes-Benz AMG GLE 53 Coupe
• 2021-2024 Mercedes-Benz AMG GLE 63 S
• 2021-2024 Mercedes-Benz AMG GLE 63 S Coupe

A Mercedes-Benz dealer will inspect and tighten the 48-volt ground connection, as necessary, for no charge, the NHTSA said. Owners affected by the recall will be notified before May 14, it added.

Owners with questions can contact Mercedes-Benz USA customer service at 1-800-367-6372. They can also call NHTSA’s Vehicle Safety Hotline at 1-888-327-4236 (TTY 1-800-424-9153), or visit the NHTSA website.

How to check for recalls

Vehicle recalls are common. Manufacturers regularly monitor car safety and function issues to alert drivers of necessary repairs. One issue that is becoming increasingly common is faulty software, which some car makers are looking to resolve through remote updates.

You can check for manufacturer recalls of any vehicles at the NHTSA website.

To check for recalls of any Mercedes-Benz model, you can visit the company’s Recall Information website.

For each of these websites, you’ll need to enter your vehicle identification number to perform a search.

To make your car last longer, experts advise that you make sure it gets regular maintenance service. 

When you need to take your car to the shop for repairs, doing some research ahead of time on websites such as YourMechanic and RepairPal could help you determine if the repair estimate matches the diagnosed problem.

Related Content

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Issues with tailgate latches on certain General Motors (GM) trucks have prompted the automaker to recall nearly 820,000 vehicles in the U.S. and Canada.

The recall covers certain 2020 to 2024 model year Chevrolet Silverado 2500/3500 and GMC Sierra 2500/3500 trucks equipped with a manual gate with power lock and release, according to a National Highway Traffic Safety Administration (NHTSA) report. A total of 570,434 vehicles in the U.S. are affected by the recall, consisting of 311,368 Silverado and 259,066 Sierra vehicles.

According to CBS News report, the 820,000 vehicles recalled includes 249,000 GM trucks recalled in Canada. 

The recall also includes GM's recall of 323,232 vehicles last month over the same issue.

“Under certain conditions water may intrude into these vehicles’ tailgates and come into contact with the electronic gate-release switch, potentially causing a short-circuit,” the NHTSA said in its report. “The gate may inadvertently unlatch while the vehicle is in park.”

If the gate becomes unlatched, cargo in the bed of the truck may fall out and become a road hazard, increasing the risk of a crash, the NHTSA said. Until the recall is completed, owners should check that the tailgate is closed and latched before driving, the agency added.

GM identified 136 complaints that alleged an unwanted tailgate opening occurred while driving, which prompted the recall, the NHTSA said.

Recall repair done for free

A GM dealer will replace the exterior touchpad switch assemblies at no cost to customers. Owners affected by the recall will be notified beginning on March 18, it added.

Owners with questions can contact Chevrolet customer service at 1-800-222-1020 or GMC customer service at 1-800-462-8782. Owners can also contact NHTSA's Vehicle Safety Hotline at 1-888-327-4236 (TTY 1-800-424-9153) or visit the NHTSA website.

GM's recalls so far this year include:

• Chevrolet Silverado 2500: Model years 2020 to 2024
• Chevrolet Silverado 3500: Model years 2020 to 2024
• GMC Sierra 2500: Model years 2020 to 2024
• GMC Sierra 3500: Model years 2020 to 2024

GM’s number for this recall is N232426400.

How to check for recalls

Vehicle recalls are common. Manufacturers regularly monitor car safety and functions issues to alert drivers of necessary repairs.

You can check for manufacturer recalls of any models at the NHTSA website.

To check for recalls of any GM model, you can visit the company’s Recall and Warranty website.

For each of these websites, you’ll need to enter your vehicle identification number to perform a search.

Related Content

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Chrysler is recalling 338,238 Jeep Grand Cherokees over an issue with the upper control arm ball joint and steering knuckle.

The recall affects certain model year 2021 to 2023 Jeep Grand Cherokee L and 2022 to 2023 Jeep Grand Cherokee vehicles.

“The upper control arm ball joint and steering knuckle may separate and cause the wheel to fall outward, resulting in a loss of vehicle control,” the National Highway Traffic Safety Administration (NHTSA) said in its report. The loss of control increases the risk of a crash, it added.

A Chrysler dealer will replace the upper control arm pinch bolts at no cost to customers, NHTSA said. Owners affected by the recall will be notified via letters through the mail on April 12, it added.

NHTSA said that owners may also contact Chrysler’s customer service at 1-800-853-1403, or reach out to NHTSA’s Vehicle Safety Hotline by calling 1-888-327-4236 (TTY 1-800-424-9153) or visiting the NHTSA website.

The number for this recall is 10B.

How to check for recalls

Vehicle recalls are common. Manufacturers regularly monitor car safety and function issues to alert drivers of necessary repairs.

You can check for manufacturer recalls of any models at the NHTSA website.

To check for recalls of any Chrysler model, you can visit the company’s Check Recall website.

For each of these websites, you’ll need to enter your vehicle identification number to perform a search.

Free guides on car recalls

The nonprofit organization Consumer Reports (CR) provides a guide on car recalls that answers common questions. The guide includes links such as: CR's car recall tracker; how to write a car safety complaint to the NHTSA; how to make sure the used car you want doesn't need recall work; and how to avoid hidden damage on a used car.

In addition, Edmunds.com offers a "quick guide" to recalls, which explains terms as well as the NHTSA's responsibilities. The site also includes links to the company's maintenance guide and a range of its other resources.

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Toyota has recalled 381,000 Toyota Tacoma trucks over an issue with welding debris left on the ends of the rear axle assembly.

The recall affects certain model year 2022 and 2023 Tacoma trucks in the U.S. 

“Welding debris left on the ends of the rear axle assembly during manufacturing could cause certain retaining nuts to loosen over time and eventually fall off, potentially causing a part to separate from the axle,” Toyota said in a statement. “If separation occurs, this can affect vehicle stability and brake performance, increasing the risk of a crash.”

A Toyota dealer will inspect the rear axle assembly and retighten the axle retaining nuts, free of charge, Toyota said. Owners affected by the recall will be notified via letters through the mail by late April, it added.

The carmaker said to contact its Brand Engagement Center at 1-800-331-4331 if you have any questions.

Toyota’s fourth recall in a week

The latest recall is Toyota’s fourth in a week and fifth so far this year. The automaker issued three recalls in one day, on February 21, and a "do not drive" advisory over an air bag issue with certain Corolla and RAV4 vehicles on January 25.

How to check for recalls

Vehicle recalls are common. Manufacturers regularly monitor car safety and functions issues to alert drivers of necessary repairs.

You can check for manufacturer recalls of any models at the National Highway Traffic Safety Administration (NHTSA) website.

To check for recalls of any Toyota model, you can also visit the company’s safety recall website.

For both websites, you’ll need to enter your vehicle identification number or license plate information to perform a search.

In addition, nonprofit organization Consumer Reports (CR) provides a guide on car recalls that answers common questions. The guide also includes links such as: CR's car recall tracker; how to write a car safety complaint to the NHTSA; how to make sure the used car you want doesn't need recall work; and how to avoid hidden damage on a used car.

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Toyota issued three separate recalls yesterday (February 21) on certain models and model years of Tundra, Sequoia, Lexus, Camry, Camry Hybrid and Mirai vehicles. 

The recalls affect a total of more than 300,000 vehicles. Toyota said it will notify owners of involved vehicles for all of the recalls by late April 2024.

The carmakers said an issue with the transmission on certain Tundra, Sequoia and Lexus models prompted a recall of around 280,000 vehicles. The recall involves a malfunction that may cause some cars to continue moving after being placed in neutral, Toyota said in a statement.

"Certain parts of the transmission may not immediately disengage when the vehicle is shifted to the neutral position," Toyota said. "This can allow some engine power to continue to be transferred to the wheels and can allow the vehicle to inadvertently creep forward at a low speed when it is on a flat surface and no brakes are applied, leading to an increased risk of a crash."

Another recall affects around 4,000 Toyota Camry and Camry Hybrid vehicles in the U.S. due to an issue with the back seat head restraint that could deem the car non-compliant with federal safety standards.

Toyota issued a third recall, involving approximately 19,000 Mirai as well as certain 2023-2024 Lexus LS, LC and ES models in North America, Asia and Japan, due to a software issue with the rearview camera.

Vehicles involved in the recalls

Certain vehicle models and model years are involved in the three recalls including: 

• 2022-2024 Tundra and Tundra Hybrid
• 2023-2024 Sequoia
• 2022-2024 Lexus LX 600 
• 2023-2024 Camry and Camry Hybrid
• 2023 Mirai
• 2023-2024 Lexus LS
• 2023-2024 Lexus LC
• 2023-2024 Lexus ES

The latest action follows Toyota's recall of 50,000 vehicles over air bag issues. Certain Corollas and RAV4s equipped with airbags were involved in this recall, which was issued with a "Do Not Drive" advisory. 

Toyota urged drivers in the advisory to contact a dealer and not drive until a repair has been conducted. The dealer can provide several free repair options including sending a mobile repair to the vehicle's location, towing the vehicle to a dealership or pickup and delivery, Toyota said.

How to check for a recall 

Vehicle recalls are common. Manufacturers regularly monitor car safety and functions to alert drivers of necessary repairs.

You can check for manufacturer recalls of any models at the National Highway Traffic Safety Administration (NHTSA) website, and enter your Vehicle Identification Number (VIN) or license plate information. 

To check for recalls of any Toyota model, you can also visit the company’s safety recall website.

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Issues with air bag seat weight sensors on certain Honda vehicles and tailgate latches on certain GM vehicles have prompted the automakers to recall a combined total of more than one million vehicles.

Honda is recalling a total of 750,114 vehicles. The recall covers certain model years of its Accord, Accord Hybrid, Civic, Civic Type-R, CR-V, CR-V Hybrid, Fit, HR-V, Insight, Odyssey, Passport, Pilot, and Ridgeline vehicles, as well as certain model years of Acura MDX, RDX, and TLX vehicles, according to the National Highway Traffic Safety Administration (NHTSA).

GM is recalling a total of 323,232 vehicles. GM’s recall covers certain 2020 to 2024 model year Chevrolet Silverado and GMC Sierra trucks equipped with power-unlatching tailgates, according to the NHTSA.

If your vehicle is part of either recall, you can take it to a dealer for inspection and replacement of the parts at no cost.

Honda Recall

In the Honda recall, the front passenger seat weight sensor in affected vehicles may crack and short circuit, failing to suppress the airbag as intended, the NHTSA said in its report. If an airbag were to deploy unintentionally during a crash, it would increase the risk of an injury, the agency said.

The recalled vehicles are:

• Acura MDX: Model years 2020 and 2022
• Acura RDX: Model years 2020 to 2022
• Acura TLX: Model years 2020 to 2021
• Honda Accord: Model years 2020 to 2022
• Honda Accord Hybrid: Model years 2020 to 2021
• Honda Civic: Model years 2020 to 2022
• Honda Civic Type-R: Model year 2021
• Honda CR-V: Model years 2020 to 2021
• Honda CR-V Hybrid: Model years 2020 to 2021
• Honda Fit: Model year 2020
• Honda HR-V: Model years 2020 to 2022
• Honda Insight: Model year 2021
• Honda Odyssey: Model years 2020 to 2022
• Honda Passport: Model years 2020 to 2021
• Honda Pilot: Model years 2020 to 2022
• Honda Ridgeline: Model years 2020 to 2021

Honda is expected to send letters notifying affected owners of the recall by March 18, NHTSA said.

Owners can also contact Honda’s customer service at 1-888-234-2138, or reach out to NHTSA's Vehicle Safety Hotline at 1-888-327-4236 (TTY 1-800-424-9153), or visit the NHTSA website.

Honda’s numbers for these recalls are XHP and VHQ.

GM Recall

The GM recall affects vehicles equipped with power-unlatching tailgates. The NHTSA reports that the tailgate’s electronic gate-release switch may short circuit due to water intrusion, which can cause the tailgate to unlatch while the vehicle is in park. The unlatched tailgate may open while driving and result in a loss of unsecured cargo, which would also create a road hazard and increase the risk of a crash.

The recalled vehicles are:

• Chevrolet Silverado 2500: Model years 2020 to 2024
• Chevrolet Silverado 3500: Model years 2020 to 2024
• GMC Sierra 2500: Model years 2020 to 2024
• GMC Sierra 3500: Model years 2020 to 2024

Owners are advised to check that their tailgates are closed and latched before driving.

GM is expected to send letters notifying affected owners of the recall by March 18, NHTSA said.

Owners can also contact Chevrolet customer service at 1-800-222-1020 or GMC customer service at 1-800-462-8782. Owners can also contact NHTSA's Vehicle Safety Hotline at 1-888-327-4236 (TTY 1-800-424-9153) or visit the NHTSA website.

GM’s number for this recall is N232426400.

How to check for recalls

Vehicle recalls are common. Manufacturers regularly monitor car safety and functions issues to alert drivers of necessary repairs.

You can check for manufacturer recalls of any models at the NHTSA website.

To check for recalls of any Honda model, you can visit the company’s Recall Lookup website.

To check for recalls of any GM model, you can visit the company’s Recall and Warranty website.

For each of these websites, you’ll need to enter your vehicle identification number to perform a search.

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Toyota is issuing an urgent ‘Do Not Drive’ advisory for about 50,000 vehicles and urging owners to obtain an air bag safety recall repair.

The recall, which is free, affects certain model year 2003 to 2004 Corolla, 2003 to 2004 Corolla Matrix, and 2004 to 2005 RAV4 vehicles nationwide that are equipped with Takata air bags.

“Due to the age of the vehicles, if the air bag deploys, a part inside is more likely to explode and shoot sharp metal fragments which could cause serious injury or death to the driver or passengers,” Toyota said in a statement. “Owners should not drive these vehicles until the free safety recall repair has been conducted.”

Toyota urges that you call the dealer, not drive

Toyota urges these car owners to contact a local dealer instead of driving the vehicle to the dealership for repairs. The dealers can provide several free repair options such as mobile repair at the vehicle’s current location, towing to the dealership, vehicle pickup and delivery, or other alternate transportation options, Toyota said.

Toyota said it is notifying known owners of affected vehicles every month through a variety of communication channels. Owners can also contact Toyota customer support directly by calling 1-800-331-4331.

How to check for recalls

The National Highway Traffic Safety Administration (NHTSA) website includes a section that spotlights problems with Takata air bags. About 67 million of these air bags have been recalled because they can explode when deployed and cause serious injury or even death, according the the site.

Last November, Toyota recalled 1.85 million RAV4 sports utility vehicles over issues with battery hold-down assembly. This recall affected vehicles in the 2013 to 2018 model years. Under certain conditions, the battery could shift and potentially cause a fire, Toyota said. Toyota said that dealers would replace the battery hold-down clamp, battery tray and positive terminal cover with improved ones at no cost to customers.

Vehicle recalls are common. Manufacturers regularly monitor car safety and functions issues to alert drivers of necessary repairs.

You can check for manufacturer recalls of any models at the NHTSA website.

To check for recalls of any Toyota model, you can also visit the company’s safety recall website.

For both websites, you’ll need to enter your vehicle identification number or license plate information to perform a search.

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Tesla has recalled nearly 2.2 million cars over an issue with the font size on their instrument panels.  

According to the National Highway Traffic Safety Administration (NHTSA), the recalled vehicles have “an incorrect font size displayed on the instrument panel for the Brake, Park and Antilock Brake System (ABS) warning lights.”

The too-small font size puts drivers at risk as it could make important safety information too difficult to read and thus can increase the risk of crash, NHTSA added.

The recall impacts nearly all Tesla cars sold in the U.S., according to Fortune.

The vehicles affected are:

• Cybertruck 2024
• 2017-2023 Model 3
• 2012-2023 Model S
• 2016-2024 Model X 
• 2019-2024 Model Y

This marks the second Tesla recall in a week. On January 23, the electric car company recalled 200,000 vehicles over an issue with the rearview camera on certain models.

That January 23 recall affects Model S, X and Y vehicles in the 2023 model year that are equipped with a full self-driving computer 4.0 and running certain software release versions, according to the NHTSA. The software versions are 2023.44.30 through 2023.44.30.6 or 2023.44.100.

“Instability of these software versions may prevent the rearview camera image from displaying,” the NHTSA said. A rearview image that does not display as the driver is backing up decreases the driver's visibility and raises the risk of a crash, it added.

Software update fixes

For both issues, Tesla says it released over-the-air software updates to fix the issues at no cost to customers. Owner notification letters are scheduled to be mailed on March 22 for the camera issue and March 30 for the incorrect font size problem. 

If you have questions about the recall, you can contact Tesla’s customer service at 1-877-798-3752.

Tesla’s number for the camera recall is SB-24-00-002. Its number for the font size recall is SB-24-00-003.

How to check for recalls

Last December, Tesla recalled more than 2 million vehicles over issues with its Basic Autopilot package. This recall affected vehicles in the 2012 and 2023 model years that are equipped with the company's Autosteer feature. An over-the-air software update to fix the problem was scheduled to be sent to affected vehicles on or shortly after December 12, 2023, with any remaining affected vehicles set to receive a software update at a later date, the NHTSA said.

Vehicle recalls are common. Manufacturers regularly monitor car safety and function issues to alert drivers of necessary repairs.

You can check for manufacturer recalls of any automotive make and model at the NHTSA website. 

You can search for Tesla vehicles specifically in the Recall section of its website. 

For both websites, you'll need to enter your vehicle identification number to perform a search.

To make your car last longer, experts advise that you make sure it gets regular maintenance service. 

When you need to take your car to the shop for repairs, doing some research ahead of time on websites such as YourMechanic and RepairPal could help you determine if the repair estimate matches the diagnosed problem.

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• Ford Recalls 45,000 Cars Over Faulty Door Latches

Issues with trim retention clips on certain Ford Explorers and roof molding on certain Kia Sportage and Carnival vehicles have prompted the automakers to recall a total of nearly two million vehicles.

Ford is recalling 1.89 million Explorer sports utility vehicles (SUVs) for the 2011 to 2019 model years, according to the National Highway Traffic Safety Administration (NHTSA).

Kia is recalling a total of about 101,000 vehicles. Kia's recall covers certain 2023 to 2024 model years of its Sportage SUV and certain 2022 to 2024 model years of its Carnival passenger van.

If your vehicle is part of either recall, you can take it to a dealer for inspection and replacement of the part at no cost.

Ford Explorer - Trim Retention Clips

For Ford, under certain driving conditions, the A-trim retention clips may detach and fall off the vehicles, becoming a road hazard and increasing the risk of a crash, NHTSA said in its safety recall report. The problem is that the clips may not be properly engaged, NHTSA said.

Ford is expected to send letters notifying affected owners of the recall by March 13, NHTSA said.

Owners can also contact Ford customer service at 1-866-436-7332, or reach out to NHTSA's Vehicle Safety Hotline at 1-888-327-4236 (TTY 1-800-424-9153), or visit the NHTSA website.

Ford's number for this recall is 24S02.

Kia Sportage and Carnival - Roof Molding

For Kia, under certain driving conditions, the roof molding may become loose or detach, which can create a road hazard and increase the risk of a crash, NHTSA said in its safety recall report. The remedy involves replacement or securing of the roof molding, the agency said.

Kia is expected to send letters notifying affected owners of the recall by March 15, NHTSA said.

Owners can also contact Kia customer service at 1-800-333-4542, or reach out to NHTSA's Vehicle Safety Hotline at 1-888-327-4236 (TTY 1-800-424-9153), or visit the NHTSA website.

Kia's number for this recall is SC292.

How to check if your vehicle is being recalled

Vehicle recalls are common. Manufacturers regularly monitor car safety and functions issues to alert drivers of necessary repairs.

You can check for manufacturer recalls of any automotive make and model at the NHTSA website. You'll need to enter your vehicle identification number to perform a search.

To check for recalls of any Ford model, you can  visit the company’s safety recall website.

To check for recalls of any Kia model, you can visit the company's safety recall website.

Separately, check out Kiplinger Personal Finance Editor Ellen Kennedy's tips on what to do given that Hyundai and Kia car thefts have spiked. She shares her personal experience after her Hyundai was stolen — even after having its anti-theft software upgraded as part of a recall remedy.

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Hyundai and Kia thefts rose 1,000% between 2020 and 2023, driven by social media posts showing how easy it was to hotwire certain models. I should know, as my own car was stolen this way in 2023. New data on car thefts show that the problem has only gotten worse. Read on to learn if your car is at risk, about insurance issues, and what you can do to protect your vehicle.

Hyundai and Kia thefts overview 

The top three stolen auto models in 2023 were Hyundai and Kia sedans. Viral TikTok videos by the so-called “Kia Boyz” demonstrated how easy it was to steal these cars by opening the steering column and inserting a USB cable to start the car like a key. 

Thieves can steal a car very quickly this way — in as little as 30 seconds, according to WUSA9 News. In response, Kia and Hyundai developed a software security patch to immobilize the engine if a faux “key” is used, like a USB cable.  

Don’t trust the software update alone 

Hyundai and Kia issued a voluntary recall of affected vehicles in 2023, enabling owners to receive a free anti-theft software upgrade. My own car was a 2013 Hyundai Elantra and therefore qualified for the recall. Once the software fix was completed and a sticker affixed to the window alerting thieves that the upgrade had been made, I thought my car would be safe.

I was wrong. Just a few months later, my car was stolen.

I’m not alone. Even with the window stickers and the software upgrades, thieves are still stealing these cars. Some owners report their cars were stolen even though they had taken extra precautions like installing alert systems. 

Nevertheless, it's worthwhile to get the security update. It may deter some thieves and also demonstrate to your insurance company that you have done your part to protect your vehicle.

Is your car at risk?

Most cars with push-button ignitions are safe from this type of theft, as are Kias made in or after 2022, and Hyundais made in 2023 or later. But if you plan on purchasing a used Kia or Hyundai, know that you may have trouble getting the car insured if it is considered vulnerable. 

Which Kia models are being stolen?

Car thieves favor the Kia Optima, Soul, Forte and Sportage models. 

Has Kia fixed the theft problem?

Kia offers the security update to owners of any 2011- 2021 Kia model with a twist-to-start ignition system. You may also enter your Kia's VIN to confirm that your car is eligible. Here are the models included in the update recall.

2011-2022 Sportage

2011-2020 Optima

2011-2022 Sorento,

2011-2021 Forte

2020-2022 Soul,

2012-2021 Rio

2011-2021 Sedona,

2021-2022 Seltos

Even if you get the security update, your Kia may still be stolen. Be sure to take extra measures to protect your car.

More security fixes from Kia

If your Kia is not eligible for the security update but remains vulnerable, you may ask your dealer to install a reinforcer for the steering column. According to Kia, the models that qualify for this fix are:

2010-22 Soul

2011-16 Forte, Sportage

2011-21 Rio

2014 Sedona

Which Hyundai models are being stolen?

Thieves are most likely to steal the Hyundai Elantra and Sonata models. In fact, they topped the list of most-stolen cars in 2023.

Has Hyundai fixed the theft problem?

Like Kia, Hyundai offers a security upgrade to discourage thieves from targeting vulnerable models. You can enter your Hyundai's VIN to see if you qualify. According to the company, these are the Hyundai models that are eligible for a security upgrade.

2018-2022 Accent

2011-2022 Elantra

2013-2020 Elantra GT

2013-2014 Genesis Coupe

2018-2022 Kona

2020-2021 Palisade

2013-2022 Santa Fe

2013-2018 Santa Fe Sport

2019 Santa Fe XL

2011-2019 Sonata

2011-2022 Tucson

2012-2017 & 2019-2021 Veloster

2020-2021 Venue

Unfortunately, there are still reports that thieves can thwart the security update. As outlined below, owners of these Hyundai models should take extra measures to protect their cars.

Free steering wheel locks

If you own a 2011 to 2021 Hyundai, your local dealer may install a free vehicle lock if you are not eligible for the software update. Contact the dealer first to make sure they have locks available. You could also check with your local police department; some are distributing locks for free.

Insurance woes

If you are considering buying one of these cars used, line up your car insurance first. According to reporting from NPR, you might buy a car that is nearly uninsurable if you're not careful. That's because State Farm and Progressive refuse auto insurance coverage to people trying to buy affected used models.

If you already own one of these models, check your auto-insurance premium. You are likely paying more, even if you've had the security update. 

Just before my car was stolen, I contacted my insurer, confused as to why my 10-year-old clunker was costing our family more to insure than our newer, more valuable car. I still had not heard back from my insurance company when the car was stolen, but I'm confident that the high premium was a result of high car theft rates on my model.

Will auto insurance cover car theft? If you have comprehensive insurance, you should be covered if your car is stolen or damaged by thieves. You will be responsible for your deductible, however.

Class-action lawsuit

In 2022 the law firms Barron & Budd and Hagens Berman secured a $200 million settlement for a class-action lawsuit they filed on behalf of affected Kia and Hyundai owners. The suit seeks compensation for theft, insurance deductibles, higher insurance premium rates and other expenses. Unfortunately, the registration period for the suit closed on May 3, 2024, so if you didn't register, you cannot be compensated in this manner.

The epicenter of car theft

Little did I know that my 2013 Hyundai, parked on a quiet street just outside of Washington, D.C., was at extremely high theft risk. Not only was my car the number one target for theft, but Washington, D.C. had the most car thefts per capita. 

Before you despair that we've entered a Mad Max dystopia, rest assured that national car theft rates are still well below the 1991 high of 659 thefts per 100,000 people. That said, the D.C. rate was almost twice that amount in 2023, at about 1,150  thefts per 100,000 people.

To understand your car's risk, take a look at the top ten stolen models and the top ten states where cars were stolen in 2023. 

The ten cars most stolen in 2023

Thieves aren't just targeting Hyundais and Kias. The latest theft data from the National Insurance Crime Bureau (NICB) shows that Chevy and Ford pickups, as well as Honda sedans, are also preferred by thieves in terms of total number of vehicles stolen. But by searching on NICB's U.S. state-level data, you may find that other models are more likely to be stolen in your area. For example, pickups top the list in rural states like Texas and Idaho, but more populated states prefer smaller cars.

Source: NICB.org

Top 10 states where cars are stolen

Source: NICB.org

How to prevent car theft

Whatever car you drive, here are some cost-effective ways to thwart thieves.

Get the security update.

If your Hyundai or Kia is eligible, get the anti-theft security update. It may not be a failsafe measure but should help deter less-accomplished thieves.

Keep your key fob in a coffee can or Faraday cage.

If you leave your car key fob by the front door or even in an interior room, thieves might be able to steal your car. By amplifying the radio frequency of your fob, they may trick your car into unlocking and starting the engine, according to a letter sent to Kia Motors by Senator Edward Markey (D-Mass.) in 2022. By storing your fob in a coffee can or metal container known as a Faraday cage, box or bag, you can effectively block those signals, according to The Seattle Times.

Park in front of a security camera.

If you have a front door camera, park where the camera can "see" your car. 

Hide a tracking device in your car. 

Tom's Guide has a side-by-side comparison of the Apple AirTag, the Tile and the Samsung Galaxy SmartTag trackers. These small, Bluetooth trackers can help you find lost keys or a wallet in your home. Your Bluetooth connection with the tracker won't help you find a stolen car, but by connecting and triangulating location data with other trackers of the same brand, these products may help you track a stolen car. If you want more protection, you could spring for a more costly GPS tracker.

Etch the VIN into your car's windows.

Some police departments will etch a car's Vehicle Identification Number into its windows to prevent theft and resale of parts. So search your local police department's website.

Get a wheel lock.

Like a bike lock, a wheel lock is secured every time you park your car and prevents thieves from turning the wheel and driving away. As explained above, Hyuandai and Kia are giving free wheel locks to some customers and your local police department may as well.

Add some bling.

Attach something to the car to make it stand out. Bright decals or a sign on the roof could help police spot your car quickly from the road or a helicopter.

Go electric.

Thieves are less likely to target a fully electric vehicle (EV), as these cars are easier to monitor and generally more difficult to steal. Check out the top 10 electric cars in the US.

The basics. 

Always lock your car and take your keys with you. And never leave an unattended car with the engine running. Don't store USB cables in your car. Park in a secure garage if you can.

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This offer has expired, but you can read our review of a new discount from Costco on Volvo, Chevrolet, Cadillac and Polestar models.

Are you a Costco member? If so, you can tap into the Costco Auto Program for a new or used vehicle of your choice for a standard discount. As part of a limited-time offer, the program will provide an additional discount — $1,000 — for the purchase or lease of selected new models of Cadillac vehicles. 

How the Costco Auto Program works

Costco has established relationships with over 3,000 dealerships across the country that meet its standards for customer service. Costco also trains dealers to implement its discount program, so you shouldn’t find a clueless salesperson when you get to the dealership. 

The program is free to all Costco members, but the lowest membership tier costs $60 per year. Before you join Costco in order to get one of these promoted auto discounts, know that only customers who have been members since January 2, 2024, will qualify.

To get access to a discount, register with the Costco Auto Program online or by phone to receive a certificate with your unique promotion code. Then present your certificate and unique promotion code to any Cadillac dealer (in person).

Sweet, right? And remember that new and used electric vehicles may qualify for up to $7,500 in EV tax credits that could further whittle down the price of your car. The 2023 LYRIQ qualifies for the tax credit, but the 2024 Cadillac LYRIQ does not. Still, GM is not leaving its customers in the lurch. The company announced this week that it will lower the price of the 2024 LYRIQ by $7,500, according to Inside EVs.

The Costco Cadillac discount

To access the Costco Cadillac discount, you will need to purchase or lease your vehicle and take delivery by February 29, 2024. Your certificate code will entitle you to $1,000 off one of the following models:

• LYRIQ (all-electric SUV)
• XT6
• XT5
• XT4
• CT5
• CT4

Other discounts offered by the program

If you're looking for a car besides a Cadillac, the Costco Auto Program may still help you save at the dealership. For current Costco members, log in to your account and go to the auto program website. As with any other service for purchasing new or used cars, you enter the make and model you're looking for, and follow directions. Before you are given a final price, you will provide personal details and contact information so that dealers may reach out to you.

Costco has already negotiated a discounted price with the dealer, so you can avoid the dreaded haggling with the finance office at the dealership.

If you think you can get a price elsewhere, you can decline the offer and go to a different dealer.

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An issue with Ford’s Trailer Tow Max Duty package has prompted the automaker to recall nearly 113,000 F-150 vehicles.

The recall affects vehicles in the 2021 to 2023 model years that are equipped with Ford's Trailer Tow Max Duty package and a 9.75-inch heavy duty axle with a 3/4 float axle design, according to the National Highway Traffic Safety Administration (NHTSA).

Owners this vehicle can contact Ford customer service with any questions at 1-866-436-7332. You’ll need the recall number, which is 23S65.

“Damaged axle hub splines can result in a vehicle roll away when the vehicle is in park without the parking brake applied, or cause a loss of drive power,” the NHTSA said. “Both of these conditions can increase the risk of a crash.”

Ford has not yet found a remedy for the problem but will send notification letters to editors with instructions to take their vehicles to a local dealer for repair, the NHTSA said. The letters are expected to be mailed on January 29.

This Ford's second recall in as many months. Last month, the automaker recalled about 45,000 vehicles because of faulty door latches, as Kiplinger previously reported.

How to check if your F-150 is being recalled

Vehicle recalls are common. Manufacturers regularly monitor car safety and function issues to alert drivers of necessary repairs.

You can check for manufacturer recalls of any automotive make and model at the NHTSA website. You can also search for Ford vehicles specifically in the Recall section of its website. You'll need to enter your vehicle identification number to perform a search.

Are you shopping for a new car?

To make your car last longer, experts advise that you make sure your vehicle gets regular maintenance service. But if you're in the market for a new or used car, there are several considerations that could save you money in the long run.

These include:

• Shop around for car financing and ask about the full range of financing options.
• Consider lower-priced cars with high resale value.
• Consider ordering online to avoid dealership fees.
• Consider an electric vehicle that has tax incentives.

Related Content

• Ford Recalls 45,000 Cars Over Faulty Door Latches
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If you're car shopping, you may have heard the adage that new cars lose 10% of their value as soon as you drive them off the dealer lot. A new report from CNBC and the automotive research firm Black Book should make car buyers feel a little better about their purchases. They found that the severe supply disruptions during the pandemic and other factors changed long-held car depreciation rules, perhaps for the long term. New cars, the study said, now retain roughly 10% more of their value after three years than was the case in 2019.

Car value trends

Several factors are disrupting the new and used auto markets, according to the study, which is summarized in a suite of videos.

First, we are not entirely free of the manufacturing headaches caused by the pandemic. With so few new cars available in 2020 to 2022, shoppers instead sought out used cars, raising those prices. At the height of this topsy-turvy auto market, one- or two-year-old used cars would often cost about as much as a new car, and many new cars sold over the MSRP, or dealer's asking price. In some cases, the value of used cars even appreciated in value. Although the chip shortage is now mostly behind us, parts and supply chain issues coupled with high demand continue to put the squeeze on car shoppers.

Second, automakers are making fewer cars than they did at their peak in 2016, according to the study. Most automakers have focused on making higher-priced cars rather than churning out a lot of economy models. Manufacturers like the bigger margins that fancier, more expensive cars deliver. But that strategy translates to years of reduced inventory that fails to match demand, keeping prices for used cars higher.

Third, the average American car is getting older. As manufacturers build more reliable cars, consumers tend to hold onto them longer. Low turnover translates to fewer used cars on the market, further bolstering prices.

These three trends tend to mean higher prices at the dealership for used and new cars. For example, just when analysts thought the market had cooled for good in early 2023, used car prices rose once again, to 4.4% last April, fueled in part by tax refunds. As interest rates rose, prices cooled again until November 2023, when used car prices rose again, by a seasonally adjusted 1.6%.

How depreciation is slowing

Now for some good news for car owners. All that market disruption means that your new car is depreciating at a slower rate. Before the pandemic, new cars lost 50% of their value in the first three years. Now a new car will typically only depreciate by 40%.

What's more, the way we think about vehicle depreciation is flawed. Your car indeed loses about 10% of its value when you drive it off the lot, but that's due in part to the market accounting for dealer incentives, which are typically around 10%.

There are some exceptions. Exotic or rare vehicles may grow in value over time. Electric vehicles tend to depreciate quickly because the market prices in tax incentives, which may cut the price of a new EV by over $10,000. And certain brands, like Honda and Subaru, tend to hold their value better compared to others.

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An issue with Tesla’s Basic Autopilot package has prompted the electric vehicle maker to recall over two million vehicles.

The recall affects 2.03 million Tesla vehicles in the 2012 to 2023 model years that are equipped with its Autosteer feature, according to the National Highway Traffice Safety Administration (NHTSA) 

“In certain circumstances when Autosteer is engaged, the prominence and scope of the feature’s controls may not be sufficient to prevent driver misuse,” the NHTSA said in the report.

Affected vehicles will receive an over-the-air software update that will fix the problem on or shortly after December 12, 2023 at no cost to customers, and any remaining affected vehicles will receive a software update at a later date, the NHTSA said.

All Tesla stores and service centers were notified of the recall on December 12 and owner notification letters will be mailed by February 10.

How to check if your Tesla is being recalled

Vehicle recalls are common. Manufacturers regularly monitor car safety and function issues to alert drivers of necessary repairs.

You can check for manufacturer recalls of any automotive make and model at the NHTSA website . You can search for Tesla vehicles specifically in the Recall section of its website. You'll need to enter your vehicle identification number to perform a search.

Are you shopping for a new car?

To make your car last longer, experts advise that you make sure your vehicle gets regular maintenance service. But if you're in the market for a new or used car, there are several considerations that could save you money in the long run. These include:

• Shop around for car financing and ask about the full range of financing options.
• Consider lower-priced cars with high resale value.
• Consider ordering online to avoid dealership fees.
• Consider an electric vehicle that has tax incentives.
• Try not to use less personal negotiation options such as email, text message or live chats to unlock better deals.

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As car prices continue to rise, a new rule aimed at two common money-grabbing schemes that consumers often face when purchasing a vehicle has been put on hold, pending a legal challenge.

The Combating Auto Retail Scams (CARS) rule protects consumers during the significant and often arduous car-buying process by prohibiting certain sales tactics and procedures, according to the Federal Trade Commission (FTC), which initially planned to finalize the rule on July 30.

But the rule’s effective date has been postponed while a legal challenge against the rule is pending, the FTC recently announced.

The National Automobile Dealers Association (NADA) and the Texas Automobile Dealers Association have petitioned a federal appeals court to overturn the rule, arguing that it should be stayed while their challenge is pending.

“We continue to believe the rule is unnecessary, redundant, confusing and will needlessly lengthen the car sales process for consumers,” the NADA said in a statement.

The rule specifically targets bait-and-switch tactics used by some dealers to get customers in the door, as well as hidden junk fees and costs that in some cases are for services or products that provide no consumer benefit, the FTC said.

The rule comes at a time when the auto market is recovering slowly and interest rates remain high.

Under the rule, dealers are prohibited from misrepresenting the cost of a car, and must make consumers aware of any rebates, discounts or deals available to them.

Dealers also must:

• Make the offering price, or the price any consumer can pay for the car, available.
• Let the customer know that any optional add-ons are not required to purchase the car.
• Be transparent about what the total payment will look like when discussing financing and monthly payments.
• Get the consumer consent for any charges to be paid as part of a vehicle purchase.

According to the FTC, bogus ad-ons could include warranty programs that duplicate a warranty they already have from the auto manufacturer, service contracts for oil changes on an electric vehicle as well as software or audio subscription services for cars that cannot support the subscription.

The rule will save consumers $3.4 billion and an estimated 72 million hours each year, the agency said.

The Consumer Federation of America, a non-profit that works to protect consumers, applauded the FTC for the rule, saying that CARS will bring improvements to the auto market. 

“This rule will help curb dishonest sales and financing practices in the industry,” Mitria Sposter, vice president and director of federal policy at the Center for Responsible Lending said in a statement. “The steep rise in automobile prices over the past few decades means we need to be doubly vigilant of junk charges and financing scams, especially given current interest rates.”

Military members expected to benefit

The rule will also help protect young military service members, who typically need cars on big military bases and are often relocated, the FTC said. They are routinely preyed on by dealers and have an average of twice the auto debt as civilians, the agency added.

Under CARS, dealers are prohibited from, among other things, lying about cost and financing information as well as their dealership’s affiliation with the military. 

“For our service members and their families a car is an essential purchase, and this CARS Rule will help fight predatory practices that target our men and women in uniform,” Ashish S. Vazirani, Department of Defense acting under secretary of Defense for Personnel and Readiness,” told the FTC. “The Department is pleased to see the FTC issue the CARS Rule and believes it will contribute to service members’ overall economic security and readiness.”

For more information on the rule, the FTC has created a website for dealers and consumers with frequently asked questions and advice for dealerships.  

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Ford is recalling roughly 45,000 cars over an issue with door latches that, when exposed to warm weather, may fail to latch.

The recall, which applies to certain 2015 Ford Fiestas, 2016 Ford Fusions and 2016 Lincoln KMZs, is an expansion of Ford's 2020 recall of the same nature. 

In a November 30 letter to Ford, the  National Highway Traffic Safety Administration said that a component inside the door latches may break, "which can make it difficult to latch, or possibly allow the doors to open while driving.”

The recall is limited to the following locations: Alabama, Arkansas, Arizona, California, Florida, Georgia, Hawaii, Louisiana, Mississippi, New Mexico, Nevada, Oklahoma, Oregon, South Carolina, Texas, Utah, Washington, Puerto Rico, American Samoa, Guam, the Northern Mariana Islands (Saipan), and the U.S. Virgin Islands.

Drivers whose cars are impacted by the malfunction may notice the door failing to latch initially, or a “door ajar” indicator on the dashboard along with potentially increased wind noise.

In 2020, Ford recalled two million vehicles after it reported that the doors, even the ones that were repaired, may not have been fixed properly. 

Vehicle recalls are relatively common. Earlier this year, the NHTSA catalogued vehicle recalls affecting 1.95 million Ford and Honda models. The recalls covered fragile windshield wipers, leaky brake fluid and seat belts that didn't close properly. In November, Toyota recalled 1.85 million cars over a battery issue.

What to do

Ford said it will reach out to any newly impacted vehicle owners beginning the week of December 4. Owners can also contact Ford customer service at 1-866-436-7332, or reach out to NHTSA's Vehicle Safety Hotline at 1-888-327-4236 (TTY 1-800-424-9153), or visit the NHTSA website.

Ford's number for this recall is 20S15.

If you're vehicle is part of the recall, you can take it to a Ford or Lincoln dealer to inspect the door latch date codes, which will be replaced free of charge providing that they fall under the reported time frame.

Owners who previously paid out of pocket for repair may also be entitled to reimbursement.

To see if your car is impacted, either call the hotline or visit the NHTSA website and enter your VIN number.

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An issue with Toyota’s RAV4 battery hold-down assembly and battery tray has prompted the carmaker to recall about 1.85 million of the popular sports utility vehicle.

The recall affects certain 2013 to 2018 model years. Under certain driving conditions, the battery could shift and potentially cause a fire, Toyota said in a statement. The problem involves replacement of some 12-volt batteries that have smaller top dimensions than others. 

If a small-top battery is used for replacement and the hold-down clamp is not tightened correctly, the battery could move when the vehicle is driven with forceful turns, Toyota said. This could cause the positive battery terminal to contact the hold-down clamp and short circuit, increasing the risk of a fire.

Toyota has not yet prepared a remedy for the problem but said that dealers will replace the battery hold-down clamp, battery tray and positive terminal cover with improved ones at no cost to owners. The company said it will notify customers by late December.

How to check if your car is being recalled

Vehicle recalls are common. Manufacturers regularly monitor car safety and functions issues to alert drivers of necessary repairs.

You can check for manufacturer recalls of any models at the National Highway Traffic Safety Administration (NHTSA) website. You'll need to enter your vehicle identification number to perform a search.

To check for recalls of any Toyota model, you can also visit the company’s safety recall website.

Tips for car shopping

To make your car last longer, experts advise that you make sure your vehicle gets regular maintenance service.

But if you're in the market for a new or used car, there are several considerations that could save you money in the long run:

• Shop around for car financing and ask about the full range of financing options.
• Consider lower-priced cars with high resale value.
• Consider ordering online to avoid dealership fees.
• Consider an electric vehicle that have tax incentives.
• Try and use non face-to-face negotiation options like email, text message, or live chats to unlock better deals.

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• Will The Gas Engine Soon Be Obsolete?
• Gas-Saving Tips That Actually Work
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Prices in the auto market for new and used cars have risen steadily since the beginning of the pandemic. To help you understand what is going on and what we expect to happen in the future, our highly-experienced Kiplinger Letter team will keep you abreast of the latest developments and forecasts (Get a free issue of The Kiplinger Letter or subscribe). You'll get all the latest news first by subscribing, but we will publish many (but not all) of the forecasts a few days afterward online. Here’s the latest...

After years of shortages and soaring prices, the auto market is getting back to normal — slowly. Inventories of new vehicles for sale are still nowhere near their pre-pandemic average. But availability is improving, giving car shoppers a better selection and a shot at a halfway decent deal.

New car sales will hit 15.5 million this year, up from 13.8 million in 2022 and the most since COVID-19, but still 9% lower than 2019’s 17 million. Demand is robust, even with prices up 20% from before the pandemic for the same model vehicle with comparable features. Despite interest rates rising from about 4.5% on loans to buyers with good credit to 7% or more, and monthly payments for loans on new cars that now average $725, sales are rising. Crimped vehicle production during the pandemic led to lots of elderly cars that need replacing now. 

It’s not just consumers who are shopping. Fleet operators are back in the market, too. Sales to rental agencies and other commercial buyers are back to 18% of total sales. Rental agency fleets shrank during the pandemic and need restocking.

If you’re in the market, here are some things to keep in mind, per Ivan Drury, senior manager of insights at Edmunds.com: You’ll have some more leeway to negotiate. But finding deals won’t be easy. Offers like attractive financing, price breaks or favorable trade-ins vary by dealership, more so than usual. So, it pays to shop around, especially when trading in an old car. If you don’t like the offer from the dealer selling you a new car, don’t be afraid to pass and get other quotes. Salespeople expect it now — they’ll still be eager to sell to you. 

Be practical about what you need vs. what you want. You’ll get a better price if you stick to models that don’t have every new feature or haven’t been redesigned for a while. Dealers may be more eager to move those cars. It also helps to be open to multiple brands. Some, such as Toyota, Honda, Subaru, Kia and BMW, are still short on inventory relative to the industry average, giving buyers scant room to negotiate.

Breaks on financing are out there. But read the fine print. Offers of low rates often require accepting a three- or four-year loan, which saves you interest but means that you’ll have a higher monthly payment. Sometimes, slightly higher interest rates are available on longer-term loans. But you’ll have to ask. Dealers don’t trumpet them. 

The hottest segments now: compact and medium-size trucks. Don’t expect any breaks on pricing there. Ford’s Maverick small pickup is so popular, it’s sold out for the 2023 model year, for instance. Toyota’s Tacoma remains as in demand as ever. 

If you’re shopping used, expect prices there to stay elevated, for years. A lack of inventory jacked up prices during the pandemic, and it’ll take time for enough new cars to sell and hit the used market — bad news for bargain hunters.

This forecast first appeared in The Kiplinger Letter, which has been running since 1923 and is a collection of concise weekly forecasts on business and economic trends, as well as what to expect from Washington, to help you understand what’s coming up to make the most of your investments and your money. Subscribe to The Kiplinger Letter.

Read more

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A major Hyundai recall gives vehicle owners a new worry after dealing with the nationwide wave of Hyundai thefts driven by social media.

The U.S. National Highway Traffic Safety Administration(NHTSA) has cataloged new Hyundai recalls of 734,997 vehicles, following on the heels of recent Ford and Honda recalls affecting 1.95 million models.

No need to panic, though. Most auto models, even sophisticated electric cars, experience recalls. Major manufacturers constantly monitor car safety and function issues to alert drivers of necessary repairs — which the company then makes at their expense.

Find out if your Hyundai model is among the latest manufacturer recalls below.

Hyundai recalls multiple top models

Hyundai Santa Fe, Santa Cruz - Electrical fire risk

Hyundai is advising owners of 567,912 SUVs and trucks about a potentially faulty tow hitch that can take on water and short circuit. The faulty electrical wiring in the defective hitches can lead to an increased risk of fire, according to a new NHTSA recall report. 

The Korean automaker asks affected owners to park away from buildings until the electrical short risk can be mitigated. While a fire is unlikely, the risk is still real for the affected model years.

The recalled vehicles include:

• 2022-2023 Hyundai Santa Cruz
• 2019-2023 Hyundai Santa Fe
• 2021-2023 Hyundai Santa Fe HEV 
• 2022-2023 Hyundai Santa Fe Plug-in HEV

Hyundai announced it will send owners instructions by May 16 to take their vehicle for a free repairs at authorized dealerships.

Hyundai Palisade - windshield wipers

The NHTSA reports that windshield wipers may fail to operate properly on 167,085 Hyundai Palisade models, as revealed by recent manufacturer tests. 

The report warns that the “wiper motor may operate intermittently or fail to operate due to snow or ice buildup on the windshield, causing the wipers to fail.” Hyundai noted in the report that inoperable wipers could increase crash risks for drivers by reducing visibility while operating their vehicles. 

The affected Palisade models were sold between 2021 and 2023. While the report clarifies that only 1% of recalled vehicles have the defect, it's impossible to predict if yours is part of the 1% or not. 

If you're affected, watch for a notice in the mail on May 16th directing you to the nearest Hyundai dealer, where they should replace your windshield wiper arm free of charge.

Tips to keep car repair costs down

Here are a few tips to level the playing field when dealing with car repairs :

• Don’t change the oil more than you need to. "Every 3,000 miles" isn't really necessary anymore, especially with modern engine oils. Stick to the manual’s recommendations and refuse all those calls, texts and mailers from dealerships and service shops.
• Do your homework. Research car repairs on websites like YourMechanic and RepairPal. Use this info to gauge if the repair estimate matches the diagnosed problem.
• Find a local mechanic you trust. Don't jump from shop to shop and potentially overpay on major repairs. Instead, pick a repair shop or gas station in your neighborhood, get to know them on a first-name basis and be friendly. You could be surprised by the quality service and repair savings that can result.
• Get a second opinion. Car repairs are outside most of our subject matter expertise, but a four-figure repair estimate should give you pause. Make sure to get a second opinion if an estimate seems way too high.

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Millions of Ford and Honda owners have new hassles on top of volatile vehicle costs and gas prices: manufacturer recalls. 

The U.S. National Highway Traffic Safety Administration(NHTSA) has catalogued vehicle recalls affecting 1.95 million Ford and Honda models. The recalls cover fragile windshield wipers, leaky brake fluid and even seat belts that don't close properly. 

Don't despair — even the most popular car models can experience recalls from isolated plant failures or supply chain mixups. Even as the car market shifts to advanced and increasingly popular electric vehicles, manufacturers and car owners will need to keep their eye on the ball for component failures.

See if your daily driver is among the latest manufacturer recalls. Trust us, you don't want to drive a lemon. 

Ford and Honda Recall Issues

Ford F-150 - windshield wipers

Ford has issued a recall notice for 2021 F-150 trucks. There were 222,454 vehicles in this line sold with windshield wipers that could break easily under normal use. This poses a risk to drivers from lowered visibility and higher crash risks in rainy conditions, according to the NHTSA recall report. 

According to the report, the arm attachment of the defective wipers can strip because of ill-fitting components, leading to erratic or slow wipe speed. Only 1% of recalled trucks are estimated to have the defect. 

Ford is offering free windshield wiper arm replacements for affected owners at its dealerships. If you own an affected model, look out for a recall notification by mail between March 27 and March 31.

Ford Fusion, MKZ - brake fluid

Ford is recalling another 1.28 million cars in its Fusion and Lincoln MKZ lines. The NHTSA reports that the affected vehicles could lose brake fluid in certain circumstances. Specific brake hoses can rupture and leak significant amounts of fluid, leading to less responsive brakes, slower deceleration and heightened crash risk. Ford estimates that 2% of the recalled vehicles are affected by the brake hose issue. 

If you own a vehicle from the year 2013 to 2018, monitor the brake fluid indicator light and the brake pedal’s feel. Be on the lookout for a mail recall notice between April 17 and  April 28. Then schedule a free brake jounce hose replacement at a Ford or Lincoln dealership.

The model recall list includes:

• 2013 Fusion - 220,367
• 2014 Fusion - 267,524 
• 2015 Fusion - 188,403
• 2016 Fusion - 280,180
• 2017 Fusion - 211,313 
• 2018 Fusion- 38
• 2013 MKZ - 22,272
• 2014 MKZ - 22,040
• 2015 MKZ - 16,623 
• 2016 MKZ - 20,709
• 2017 MKZ - 31,242
• 2018 MKZ - 15

Honda CR-V, other models - seatbelts

NHTSA reports that Honda is recalling 448,613 models due to seat belt function issues. Certain driver and front passenger seatbelts among the affected models were manufactured improperly and may not latch...

The recalled vehicles include:

• 2017-2020 Honda CR-V
• 2018-2019 Honda Accord
• 2018-2019 Honda Accord Hybrid
• 2018-2020 Honda Odyssey
• 2019-2020 Acura RDX
• 2019 Honda Insight

Owners should look out for a message offering free seat belt assembly replacements, around April 17.

Ford Bronco - rearview camera, steering wheel

Do you own a Bronco with a faulty dashboard screen? Ford has recalled Bronco vehicles with 8-inch SYNC infotainment screens that were involved in a previous recall. NHTSA explains that the malfunctioning screens can continue to show the rearview camera image while driving, heightening the risk of distracted driving. This new recall only includes 1,651 vehicles from the 2021 model year, but 100% of previously recalled Broncos are expected to be affected. 

Ford hasn't registered any crashes related to the issue, but they are issuing a recall out of an abundance of caution. If you're an affected owner you can receive a free software fix remotely or by visiting a dealership. Ford expects all notifications to be mailed by May 5th.

Ford is also recalling 352 other Broncos for steering wheel locking issues. NHTSA announced that the steering wheels on the affected vehicles could lock up due to cracked internal steering components. Should this happen, drivers would be unable to turn the steering wheel while operating the vehicle — a significant risk to drivers and other nearby vehicles. The recall only affects the 2022 Ford Bronco Raptor and 2023 Ford Bronco Wildtrak. 

Ford recommends that affected drivers refrain from operating their vehicle until the steering component issue is towed to a Ford or Lincoln dealership to be fixed. Notification letters go out from March 27 to March 31.

Ford Maverick - taillights

The last recall affects 2,716 Ford Maverick trucks from the 2023 model year. Ford's report explains that these models may have malfunctioning trailer taillights that may not light up properly. Ford identified a missing wiring circuit as the culprit. This issue could decrease vehicle visibility and spike the risk of crashing when night driving.

Ford says it is unaware of any real-world incidents related to the taillight problem, so far. Owners impacted by the recall should receive notices in the mail between March 27 and March 31. Once you get a notice you should contact a dealer who will add a free electrical circuit to restore the connection to the trailer lights.

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New cars at reasonable prices are like unicorns in the U.S. these days, as carmakers seem intent on implementing a fully luxury market. Perhaps it’s now time to consider the used car market, where prices are falling consistently from pandemic highs. Read on to understand the woes of new car shoppers — and the opportunity facing the used car market.

New cars are pricier than ever

According to a new report by Cox Auto Group, the U.S. new car market is becoming a luxury market, where new vehicles are available only for wealthier buyers. The dramatic shift can be pegged to supply disruptions, new tech, limited inventories, higher interest rates, and automakers increasingly focused on wealthy buyers. 

Cox Auto measured the new car market shift between December 2017 and December 2022. The study focused on more affordable vehicles priced under $25,000 alongside vehicles priced over $60,000, which is generally out of the average American buyer's price range.

In December 2017, Cox measured 36 models with MSRPs below $25,000. Then, under-$25K cars were 13% of total new-vehicle sales, with 204,593 sold. By December 2022, only 10 models with MSRPs under $25K remained on the market, with 43,557 sold — a share of just under 4%.

Meanwhile, luxury brands took more market share and non-luxury brands shifted increasingly into the luxury category. In December 2017, the share of vehicles priced over $60K was less than 8%, with 61 models and sales of 122,864. By December 2022, at least 25% of new car sales were over $60,000, featuring 90 unique models and total sales of 323,368.

Buyers looking for the fabled "affordable" car may have to shop exclusively in the used car market soon. 

Used cars keep sliding

As the new car market causes heartburn, the used car market is offering buyers some welcome relief after pandemic-related price surges. Kelley Blue Book (KBB) reports that the average price of used cars sold market-wide fell to $26,510 in January, down $633 from December 2022. This marked the fourth straight month of average price drops across the market. The explanation comes down to more new cars steadily entering the market, feeding the supply of used cars, as consumers stay resilient in the face of continued inflation. 

Lower-priced cars are the most scarce. Sub-$10K models have the lowest inventories nationwide, as compared to the highest inventories for used cars at $35,000 and above. The latest consumer price index report from the Bureau of Labor Statistics showed used vehicle prices were down 1.9% in the past month and down 11.6% over the past year.

CNN reports that auto wholesaler Mannheim registered a 4% jump in its average wholesale used car price in the middle of February, which could potentially trickle down to individual car buyers. Experts point to dealers hoarding used cars for when Americans receive their tax refunds, and they expect prices to resume falling slightly after this spring buying rush. 

So if you're in the market for a used vehicle, waiting to buy until May could likely unlock even better used car deals. And if you're looking for auto insurance, try our new comparison tool — in partnership with Bankrate — that will help you find the cheapest deals.

How to get the best car deal

We have several tips to find the best deal, whether you're buying new or used. 

Buying a new car: 

• Consider lower-priced cars with high resale value. Luxury models' rapid depreciation usually can't be overcome with favorable financing and free maintenance.
• Shop around for your car financing with your local bank, your credit union, as well as a dealer. And if you don’t qualify for the best rates from the dealer or the manufacturer, ask about the full range of financing options before settling for the first offer.
• Get comfortable with ordering online. The pandemic turbocharged online commerce, and car buying along with it. Major carmakers like Volvo are shifting to offer direct online buying, matching Tesla's longtime practice. This can offer real savings by cutting out the car dealership and their fees.
• Consider an electric vehicle. The Inflation Reduction Act expanded the Electric Vehicle Tax Credit and EV Home Charger Credit to $7,500 off the MSRP of your vehicle, which could help you pull the trigger on a vehicle that's immune from fluctuating gas prices.
• Figure out what are your must-have features and where are you flexible, so you're able to keep an open mind about potential model deals that still have your essentials.
• Even if you hate price haggling, consider non face-to-face options like email, text message, and live chats to unlock better deals.

Buying a used car:

• Look for two- to three-year-old used vehicles — they’ve already lost the lion’s share of their initial value.
• Avoid leases that sharply restrict mileage (often to as little as 10,000 miles per year) and drive up the price of late-model used cars.
• Consider vehicles with more miles that are newer than an off-lease option, such as used rental cars. These cars are carefully maintained and usually carry lower prices.
• Check out all-digital used-car sites such as Carvana, Shift and Vroom, which perform full vehicle inspections, offer a seven-day return period, and claim lower prices because they don’t have dealer showrooms.
• For price savings over the more popular full-size models, consider smaller cars with higher fuel economy as well as less marquee electric vehicles such as the Chev­rolet Bolt and Volt and Nissan Leaf.
• Check your target vehicle's reliability and repair history at Consumer Reports. Autotrader and Kelley Blue Book maintain top-10 monthly lists of used cars and SUVs.

Related Content

• As Used Car Prices Fall, Financing Costs Rise
• Car Buying for Beginners
• Gas-Saving Tips That Actually Work
• Car Buyers: The Three Day Grace Period is Just a Myth!
• After Storms, Beware Flood-Damaged Cars for Sale

Subscribe FREE wherever you listen:

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Links mentioned in this episode:

• Kiplinger’s Economic Outlooks: Inflation
• Fight Inflation with Series I Bonds
• TreasuryDirect: Buying Series I Savings Bonds
• Cars.com: Buckle Up With Jenni Newman, our Editor-in-Chief
• Electric Vehicles Take Charge in 2022
• Cars.com: Your Guide to EV Batteries

Transcript:

David Muhlbaum: Cars are expensive these days. In fact, they’ve been on the leading edge of the inflation surge that’s paining the U.S. economy. Maybe you’re trying to wait it out, hoping that prices will eventually fall, but maybe you don’t have a choice and need a car now. Jenni Newman of Cars.com joins us to talk about what you could expect to pay and how the way we buy cars is changing. Also, we’ll come back to the suddenly sexy US savings bond, all coming up on this episode of Your Money’s Worth.

David Muhlbaum: Welcome to Your Money’s Worth. I’m kiplinger.com senior online editor David Muhlbaum, joined by my co-host, senior editor, Sandy Block. How are you doing Sandy?

Sandy Block: I’m doing great.

David Muhlbaum: Good. A few episodes back here, we were discussing Series I savings bonds — again — and I made a vague promise to actually buy one. And I am proud to report that I have done so. I just checked the account and I now have an investment backed by the full faith of the US government and it pays a 9.62% coupon. Well, for now it does.

Sandy Block: Yeah. That ‘for now’ is one of the catches and I’m sure you’re aware of that.

David Muhlbaum: Yes, I do. But actually, I do want you to enumerate all the other catches to my very smart purchase. We’ll get to those, but that 9.62% interest rate, that’s pretty insane. You’re not going to get that anywhere else these days, no matter how hard Jerome Powell and his friends yank on the brakes with rate hikes.

Sandy Block: No, that’s right. In fact, I was reading an article today sort-of celebrating the fact that some banks are now paying more than 1% interest on savings accounts. There’s nothing even remotely close to that unless you’re going out and taking a huge amount of risk. It’s just really unprecedented. And I’ve written about savings bonds for a long, long time.

David Muhlbaum: When they were boring.

Sandy Block: When they were very boring. That’s right. I just don’t think the government, when they created I bonds, ever anticipated that it would be paying out 9% interest.

David Muhlbaum: Yeah. Well that does raise some questions about the long-term viability of this, that I’d like to get to. But in the meantime, I thought, well, to pat myself on the back, I was doing a little bit of service journalism there because I know the website at TreasuryDirect has been crashed because of the interest in the I bonds. Apparently, it’s extremely hard to get anyone on the phone to talk about it. So I thought I would put my money where my mouth is and well, a little bit of it, and go through the process of buying one. And so the report is, it was a little nerve wracking, but I wouldn’t describe it as out of the ordinary for A) a government site and B) moving money. You’re expecting to have a higher degree of standards and using a good password and being sent to some secondary form of checking. I did note though, that it all seems it’s going to turn on your Social Security number. And I think, Sandy, you said that that could cause problems, at least, it had for you.

Sandy Block: Well yeah. And just to back up a little bit, I think where we’re hearing problems is if you have a problem, there is no one... Where people are running into problems is, they put in the wrong bank account or have a question or something, and there’s no one there to answer their questions. What I discovered, I’ve had a TreasuryDirect account for years, which I haven’t used. And when I went on to look and see if I could find my account number, I realized in order to get my account number, I have to put in a whole bunch of information, including the name of the bank that I had when I set up the TreasuryDirect account over 10 years ago and I don’t have that bank account anymore. And there doesn’t seem to be any way to fix that problem.

Sandy Block: And that’s the kind of thing that people are running into. If they want to change banks, maybe they put in a wrong account number or something like that, there really is no one there. And in fact, if you go onto TreasuryDirect right now, there’s a little box mentioning the high volume of activity and reminding people that they have until October to buy an I bond at this rate, so it’s almost like they’re telling people, please, please come back because we are really, really busy now.

David Muhlbaum: Now, okay, that’s an interesting point that you bring up the date. They have until October to buy the I bond at this rate. Let’s get into the nitty gritty about how the I bond works because there is a rate reset every six months. A portion of the interest rate gets reset, and that’s why it’s so stinking high right now.

Sandy Block: Right. Right. And I think if you somehow don’t buy one by October, I think given what we know about the inflation rate and where things are going, I think that the next six months, they’re probably going to be pretty generous too. But here’s the catch, I bonds consists of two components, a fixed rate that you get for the life of the bond and an inflation rate is set every six months. Right now, the fixed rate is zero. So if you buy an I bond now and inflation goes away, they won’t pay a negative rate, but you could end up with a very, very low rate I bond closer to a savings account. Now, at these rates, I think that’s a risk worth taking. You have to hold an I bond for at least a year. You’re required to hold it for at least a year, so this isn’t something you want to buy if you need the money soon. And if you cash it out in five years, you give up the past three months of interest. At this rate, that’s not that bad. You’d still come out ahead if you cash it out in five years, but you need to know these things about the liquidity of these bonds and the other-

David Muhlbaum: The term, too. The term is like 30 years or something.

Sandy Block: Yeah. The term, sure .. but you’re required to hold it for five years. You can redeem it after that. The other thing, and we’ve had a interesting conversation within our investing team about a limitation of the I bond is how much you can invest. The maximum you can put in an I bond is $10,000. That’s the electronic limit. If you happen to get a nice tax refund, you can use an additional $5,000 to buy a paper I bond, but that’s it. So this is-

David Muhlbaum: Yeah. Now that’s getting so arcane because you have to then cook your withholdings to get a refund so you can buy a paper bond. I’m like, oh my god, this is truly some sort of Washingtonian hell.

Sandy Block: Well, I think that was slipped into some bill to encourage people to save or something like that. But the $10,000 cutoff means that you’re not going to put your entire retirement savings in an I bond. For an emergency fund that you might need in a couple of years or something that you just want to put some money away, maybe as a down payment on a house you’re going to buy, well, $10,000 won’t get you very far, but part of a down payment or a car that you’re going to buy in a few years, I think a savings bond, an I bond, is a perfectly good use for that money. But it’s not as liquid as a savings account, and it’s not as generous as say a 401(k) or an IRA where you can put a lot more money in.

David Muhlbaum: Well, in terms of how much you can invest in.

Sandy Block: In terms of the amount that you can invest.

David Muhlbaum: But in terms of what it’s paying right now...

Sandy Block: In terms of what it’s paying right now, there is nothing out there.

David Muhlbaum: And I think, if my understanding is correct, part of the reason for those limits, the $10,000 and maybe $15,000 limit is in part because of this sort of fundamental generosity or potential generosity of the program. And it got me to thinking that the limit is not higher than that because if everybody started throwing big money at this, it would become, or it would become even more of potentially a federal subsidy. As you said, the people who created the I bond did not expect to be paying a 9.62% coupon. And there are real questions. How long can this last? By last, I don’t mean interest rates. How long will this program last?

Sandy Block: Well, and that’s a good question, Dave, because it’s been a few years, but I used to write a lot about savings bonds. And my understanding is even when interest rates were very low, the cost of administering this program exceeds the amount that the government takes in. The green-eyeshade folks at the government have wanted to get rid of savings bonds for years. It does not make money for the US government, but people love savings bonds.

David Muhlbaum: Yeah, I think Franklin Roosevelt bought the first one, right?

Sandy Block: Yes, people have this, the war bonds. People have this very emotional-

David Muhlbaum: Sentimental attachment.

Sandy Block: ... connection. They like to give them to their kids or their grandkids. So I don’t think savings bonds are going anywhere, but the $10,000 cutoff and eliminating paper bonds a few years ago were all steps in the direction of discouraging people from buying savings bonds. Because the government really, apparently, it is just a hassle to administer. You think about where the government does most of its borrowing. It’s with huge banks and financial services firms that take out enormous amounts of government debt. We’re talking, these are small amounts and lots and lots of people. And I think deep down, Treasury would really not like to deal with that, but they’re dealing with it now in a very big way.

David Muhlbaum: Yeah. In terms of those amounts, I tried poking around at the numbers here and I didn’t get to the specificity that I was hoping for, but I do know that like in 2020, the number of these I bonds being sold was in the millions, in the millions of dollars of I bonds being sold.

Sandy Block: Yeah.

David Muhlbaum: Now, it’s in the billions.

Sandy Block: Oh, I’m sure it is.

David Muhlbaum: And now, I know that that is just a drop in the bucket, in the complete realm of federal borrowing, but as a percentage change in this one program, it’s certainly proved to be popular.

Sandy Block: Yes it has. And will continue, I think, as long as inflation remains elevated.

David Muhlbaum: Yes. And that is our forecast as well. And I will pop in a link to our inflation forecast so you can read it and weep, or at least be informed. And also, I’ll put in some information about how to actually buy an I bond if you want to follow my path and go get your 9.62% – for now – coupon. Coming up next, we are going to talk about car buying in this overpriced market with Jenni Newman, the executive editor of Cars.com. Stick around

Car-Buying in an Inflated Market with Jenni Newman

David Muhlbaum: Welcome back to Your Money’s Worth. For this segment. I’ll be joined by the editor of Kiplinger’s Personal Finance magazine himself, Mark Solheim. A voice you’ve heard on the podcast before when the topic is cars. And that indeed is what we’re going to cover today. How to buy a car for a reasonable price as we enter the third year of a rather different and difficult market. Joining us to sort that out and talk about four wheels in general is Jenni Newman, editor in chief of the web site Cars.com. Welcome Jenni.

Jenni Newman: Hi, thanks for having me.

David Muhlbaum: Part of the beauty of Cars.com is that domain name. Whoever it was, 25 years or so ago, who thought to grab that domain was a genius because it’s so self-explanatory. I just had to say, you’re the editor of Cars.com and people know, okay, you know cars. But I would like you to take a moment to explain to people what Cars.com is and how you fit in because like some other automotive websites we’ve mentioned at Kiplinger or used as resources, you guys could be multiple things to different constituencies, dealers, consumers, journalists, podcast hosts.

Jenni Newman: Yes. Whoever picked out Cars.com did indeed choose wisely. So Cars.com is the leading automotive marketplace. What that means is we connect car shoppers with car dealers. And what I really, of course here’s my own bias, like to talk about is the editorial content that is available on cars.com. We have a seasoned editorial team, independent journalists that provide news coverage, reviews of vehicles, of course, as well as videos. And we’re basically here to help car shoppers do the homework. We know that buying a car is quite a journey and we want to help them find the car that’s best for them. That’s our goal.

Mark Solheim: So Jenni, I spent a little bit of time in the car journalist game, I guess. Reviewed cars for Kiplinger 15, 20 years ago. And I know from back then that this is a very testosterone-heavy industry. You talk about car guys and I suppose you talk about car girls, but I know there weren’t that many women around. So I’m curious how you broke into this industry. I also noticed from your bio that you’re very modest about your credentials and you do play up your role as a mom and as a car-seat tester. So I’m just curious how all that evolved before we get into some sound consumer advice here.

Jenni Newman: Sure. I started at Cars.com almost 14 years ago as a copy editor. And before that, I was in newspapers. So that’s another male-dominated industry. What I found at cars was a mission to help consumers. I think it was an early version of service journalism, to be honest with you. And it really spoke to me. I’ve always had a love of cars. I would not call myself a gearhead at all, but I find it fascinating. It’s always changing. And so I’m always just interested and always learning. And that’s what keeps me engaged. As far as our approach, we really do just want to help the shoppers and yes, I’m a mom of two boys.

David Muhlbaum: Cool. Hopefully we’re done with the grilling, such as it is. Let’s talk cars writ large, not cars.com. Now we at Kiplinger, we also have a mission statement of sorts. It’s right there in the name, at least the magazine Kiplinger’s Personal Finance. And the personal finance part means that at least when it comes to cars, we are more about the cost question, acquisition, financing, maintenance, insurance, that sort of thing than shall we say the experience? 0 to 60, miles per gallon, how many cup holders, how much range?

David Muhlbaum: So, two years ago or so, we thought we had a decent sense of how to buy a car and we tried to share that with our readers; shopping tips, how to negotiate, financing guidelines. Yeah. It sounds like what Cars.com does. But all of that has been deeply challenged during the pandemic. Or maybe I should say during the chip shortage? It’s hard to pry the two apart, but they both seem to be sticking with us. So big question, are we ever going to get back to a more normal car market where a new car isn’t something that a consumer has to scour the country for and possibly pay this hated additional dealer markup for?

Jenni Newman: Good question. Car shopping has definitely evolved during the pandemic. We saw a lot of dealers on Cars.com quickly pivot from a traditional car buying selling experience to a more online experience. And that was a really quick move that they had to make during those early months of the pandemic. That really ushered in more comfortability for shoppers, with online searching and even the online buying process. Seeing that translate from, “Oh, I’m going to buy something on Amazon” to, “Oh my gosh, I’m going to order a car online”. We’re seeing shoppers easily flow between these small purchases and massive purchases now these days.

Now, as far as getting back to normal, I don’t have a crystal ball. I don’t know anybody who does, but what I will tell you is I’m not sure we’re ever going to fully get back to normal. There has been so much evolution in the way that car shoppers are working these days, the way that dealers are working these days, that I think that we’re starting to see the path forward come together. Shoppers have become more comfortable with ordering vehicles when they can’t find what they’re looking for. We know that for instance, Volvo is pivoting to selling their EVs online only. And they’re going to be selling EVs only by 2030. So we’re already seeing some automakers shifting.

Of course, we know that Tesla is also an online buying opportunity. And then when it comes to more of the dealership side of things, what we’re seeing is of course, right now, when you drive by a dealership, there are fewer cars on the lot. There’s a lot of wasted real estate. And so I wouldn’t be surprised to see automakers and dealerships rethink the way that they use that real estate, whether it’s the building or whether it’s their lots, and perhaps scale back because they simply don’t have as many cars sitting around. So I think we’ll be onto a new normal as they say. I don’t think we’ll ever quite go back to what it was.

Mark Solheim: Is part of that new normal... You’re paying list price. And you talk about Tesla, there’s no negotiation with the Tesla. And more and more people these days I know are paying MSRP or a markup. Do you see that happening as well? And what does the consumer do now? There’s no longer negotiating over invoice. Now you’re paying MSRP, I guess.

Jenni Newman: Yes. It’s a really interesting market right now because there really isn’t a lot of room for negotiation if you want that vehicle. So I think that’s the big question. As a shopper, if you have time on your side and you don’t need to have that vehicle immediately, then you have a little more flexibility, a little more wiggle room. And perhaps you try to wait out some of the constrictions on the car market right now. But you could be waiting a long time.

We’re two years into this. We’re already in year three. It’s not easing up as quickly as anybody would’ve liked, so there’s that to consider. And I know that some of my colleagues consider that markup the price of doing business right now when it comes to car buying, I recently purchased a personal vehicle and paid a bit of a markup on it. And that was something I had to think through. But ultimately, I knew what car I wanted and I knew the timeline I wanted to get it in. And so in my mind, that was the price I had to pay to get that vehicle on my timeline.

David Muhlbaum: Literally the price you had to pay, yeah. Your answer earlier about all the macro factors like real estate that come into play with the existing dealership model are fascinating. I can go in so many tangents about that. One of the ones that came to mind is that the whole model before where a dealer would buy or order a whole bunch of cars and then hold onto inventory in hopes of selling it, was fundamentally inefficient now. My understanding is that they enjoyed backed up financing and incentives from the factory to support that model.

David Muhlbaum: But fundamentally, it does seem a whole lot cleaner to order or nail down what you want and get it. The sticking point of course, is that price. So we have this weird confabulation, to use a fancy word, of both this online evolution, which I think consumers were clamoring for, and literal sticker shock when people still have to go look at the piece of paper on the window and then, scribbled down in Sharpie at the bottom, it says, “and another $5,000”. The additional dealer markup. It’s weird because you both had this forward-looking approach of bringing it online and making it smooth and this like, “wait, what?” encounter when people actually see that they’re going to have to pay more, not for anything they’re getting, but except for the car.

Jenni Newman: Right. For the ability to get a car now. Yeah. And perhaps that will change and ease up a little bit as we see the new car inventory grow. I can share that in April of 2022, year over year, new car inventory was down 51%. We know that new car inventory has been hit so hard. And so as we see more new cars come into the marketplace, perhaps that $5,000 additional charge is cut in half. And then perhaps it’s cut down some more and then eventually it fades away as more competition comes back into car shopping. But for right now, paying $5,000 extra, that’s a little steep, that feels a little steep, but it’s not unusual right now.

Mark Solheim: May I ask what car you recently bought, Jenni?

Jenni Newman: Of course. I recently bought a Hyundai IONIQ 5. So we purchased an EV and we paid... I’ll be really transparent. We paid $2,500 over the price. So we definitely paid for it.

Mark Solheim: A real bargain. Yeah.

David Muhlbaum: That’s a cool car though. That’s one of the cars we included in our EV roundup. And I love the styling of that with the... It’s the sort of the Atari vehicle, right?

Jenni Newman: It is. We definitely get a lot of looks when we’re driving it around the city here in Chicago.

Mark Solheim: And you were able to pull the trigger on an EV because I assume this is mainly around town in a vehicle, not long cross-country trips or...?

Jenni Newman: So, we will use it mainly around town, but we are intending to do a couple road trips in it this summer and see how it does. At cars.com, we own a Tesla model Y and have been putting that to the test, not only as an around town vehicle, but also again for road tripping, just in all the ways that you use a vehicle. And so I’m really curious to see how my personal EV, the IONIQ 5, compares to the ease of which the model Y and the Tesla system already has set up as far as infrastructure. So, yeah. Basically my family will be living an experiment with me so it should be a lot of fun

David Muhlbaum: Since we’ve broached electrics, I just want to basically throw out a kudo to Cars.com and I’ll put in a link to this article. You guys had a really interesting piece about the long-term dynamics of electric vehicle ownership when it comes to battery life and battery performance, which is one of those bugbears. It always gets floated up when we talk about EVs, like, “Is the battery going to last?” And I’ve found it really informative. And so I’ll pop in a link for that because I know we’ve talked EVs before on this podcast, and I always get feedback. This is a good one to read.

Jenni Newman: Thank you so much. And I’ll say that we’ve been building out just a library of EV content, because there’s so much for consumers to learn around EV ownership, around battery, around range anxiety. There’s so much to take in. And so we want to help shoppers, as I mentioned, find the car that’s right for them, whether that’s an EV or whether that’s a traditional gas powered vehicle. So that’s our goal there.

Mark Solheim: Or a hybrid.

Jenni Newman: Or a hybrid.

David Muhlbaum: Or in between. Going back to pricing and the higher prices that people are paying for new cars and for used cars. Now there’s a flip side to this for the consumer too. Most people don’t own more cars than they need, and if they’re going to buy one, they’re going to sell one. And so those higher values should also translate into better trade-in offer from dealers. So I’m wondering what should someone do to make sure they’re getting the best deal on their trade-in in this market? Have the rules changed there?

Jenni Newman: I don’t know if the rules have changed, but I think there needs to be some education around what people should do. And really that is just put in the work to find the best offer. So that means, just like when you used to negotiate on a car price for a car that you were buying, when it comes to trading in or selling your vehicle, you want to shop around a little bit. Take some time. Get offers from various dealerships, whether they’re national brands, whether they’re your local brand, definitely visit the automaker of the vehicle that you own and see what kind of offers you can get and get it in writing, of course, so that you can then take those offers and play them off each other, and perhaps get an even higher price than you would’ve in the past.

Jenni Newman: Earlier, as we started to see used car prices increase, I actually had an extra vehicle. Don’t ask me how it happened, but I had an extra vehicle and I ended up selling it for about 50% more than I would’ve gotten had I sold it earlier. And so I was pleasantly surprised by that. I do kick myself for maybe being a little bit ahead of the curve when it comes to car prices, but it’s definitely worth putting in the time. It did take me about a week to get all those offers in and to make a decision though. So, it’s some work.

David Muhlbaum: That question of timing and doing it is what I like to call carbitrage. And it’s a tough game to play, but it sounds like it went well for you. With these values and these ongoing higher values in used car prices and for what people are paying for new cars, I’m wondering what the downside risk is to someone who’s paid that additional markup or paid what they had to pay to get that car now. They could be underwater if some sort of correction comes around. What does that really mean?

Jenni Newman: It’s a good question. I think it’s important to know that... If you’re concerned about this risk, then perhaps this is not the best time for you to be buying a car. We’re seeing higher interest rates, we’re seeing loan lengths grow. And so, if you can hold off on purchasing right now, and you’re not willing to take on this risk, then I would pull back a little. One thing to consider, of course, I think a lot of people tend to shop by monthly payment when they’re purchasing a car, when they’re thinking about how that’s going to impact their budget. One of the things that we like to advise consumers on is that you really should look at the out-the-door price. And so, when you’re talking to a dealer, whether you’re buying a new or a used car, you want to find out what that price is going to be for you to walk up the door, including taxes, fees, license. Any sort of question that any fee that can be added in, you want to know what that number is.

And from there, that’s where you need to... Normally, you’d start your negotiation. Truthfully, these days, that’s probably the price. But then if you’re looking at financing, we see loan lengths now that are 72 months, that are 84 months. You are increasing the length of time that you could be underwater. And so I know it can be a little bit rough, but if you want to shorten your loan, that might help you a little bit on the depreciation front.

Mark Solheim: As we’ve often said at Kiplinger’s, shop around for your financing too. Shop with your local bank, your credit union, as well as a dealer. And if you don’t qualify for the best rates from the dealer, from the manufacturer, those dealers do have lots of options. They’ll set you up. It may not be the cheapest, but you’ll get a loan, no doubt.

Jenni Newman: You will get a loan. And I think for people who have financial means, it’s a little easier these days. It’s a little easier to absorb the increases in interest rates and in inflation, where this tends to herd, of course, is shoppers whose budgets are limited. And you couple that with the increases in car prices, both on the new and used side. This can be a tough market for some shoppers.

David Muhlbaum: Yeah. I just come back to the idea of that we, you, we, others have been saying, wait, wait, wait. But you know, sometimes you need a car. Sometimes the tree fell on it and you need another car. There’s no choice in the matter.

Mark Solheim: So, what would you say then if, say, I’m telling you, Jenni, I need a new car right now. Is it no longer an advantage to looking for a sedan versus an SUV? Am I just stuck?

Jenni Newman: I think unfortunately, a year ago, we would’ve counseled you to maybe go look at sedans, to look at vehicles that are a little less popular. These days, you could be a bit stuck. I think if you are car shopping, it is all about being flexible and being ready. So you want to make sure that you have your financing sorted. You want to make sure that you know exactly what you’re looking for. And then when you can’t find it and you probably can’t, you’ve got some options. You’ve got a couple plans. You’ve got B, C, D E F of vehicles or trim levels that you’re willing to consider. So figure out what are your must-haves and where are you flexible? The car that I purchased, I did not get the color I wanted. And you know what, it’s fine. It’s fine. And that, for us, that was something we were willing to be flexible on. And so, that would be one area I would tell people like color, you’ll get used to it.

Mark Solheim: You’re driving a bright orange car around. That’s okay.

Jenni Newman: Not quite orange, but...

David Muhlbaum: They’ll see you coming. One of the potential advantages of ordering is though to have the color you want, the options you want, the car built the way you want. This mass customization could break for you, but I presume you still have to pay for the privilege.

Jenni Newman: So when it comes to ordering a car, it is the way to get what you want. If you don’t want to be flexible on anything from trim level or features or the color, then ordering is the way to go. Now, depending on the auto maker, you will likely have to put down a deposit which could just be a couple hundred dollars to create the order. And then as we get closer to the build, it could be a little bit more money to lock it in. One thing that we’re finding is of course, with various automakers, depending on what you order, the length of time to get that car in varies. If you are ordering a really specialized vehicle that not a lot of people are ordering, you might be low on the list to get it. Whereas if you managed to order a vehicle that is a volume seller, you could see that quickly. So you need to realize that ordering the vehicle means you’re probably going to wait and with all things, your wait time may vary. So just flexibility is the key.

David Muhlbaum: “Please hold the line; your wait time may vary.” I just wonder and I see anecdotally on social media and other places, stories, anecdotes about just bad dealership experiences. And car dealers were, of course never always that high on people’s lists of places they wanted to go. But the leverage that the current pricing situation seems to have given to dealers has made for stories of bad experiences. And I wonder if that will linger when/if things turn around. Are you hearing any of that sort of story from the front lines?

Jenni Newman: No. I haven’t heard many stories like that, to be honest with you. What I would tell any shopper who’s dissatisfied with the experience they’re receiving with the dealership is you can walk away. And I know it’s hard to do, especially in this market. Perhaps you finally found the vehicle you wanted, but you’re not happy with the way that the conversation is going or even worse, the way you’re being treated. Ultimately, you can walk away and you do not have to give them your business.

Jenni Newman: But what I will tell you is, a lot of dealerships these days, I think that they’re aware of that reputation and they work hard to counter it. And so, this is a Yelp world in a way, and so we know that people are very vocal with their reviews of dealers and even sales people. And in fact, on cars.com, we have ratings of dealerships as well as specific sales people. And so ultimately, it is customer service and it behooves them to treat their customers well, and there are ways to provide feedback should it go well or should it not.

Mark Solheim: I think that the fact that people hate to haggle. We know that people really, except a few individuals with exceptional gifts just are afraid to haggle. And in the past, with a dealer, you’re going for a lower price, the dealer always has the advantage. I’m just guessing that maybe there’s less conflict now that you know you’re paying MSRP or in an additional markup. So maybe that’s eased some of the tension, just a theory.

Jenni Newman: I think that’s a good theory and yes, haggling, Ugh. It’s kind of the worst then I think that sometimes it really, it turns a lot of shoppers off. It adds a lot of tension. I will say that thanks to technology, there are easier ways to haggle when we get back to being able to haggle. You can do it over email; you can do it over text message. There are chats, live chats that you can do. And so you can go back and forth. And if you are haggling, just know that you are going to need to get that offer in some sort of writing. You’re going to need to have a screenshot of it, a PDF of it, something like that to show where everybody landed. But here’s a version of life where haggling gets a little easier when you don’t have to maybe do it face to face.

Mark Solheim: I was just wondering what the landscape for leasing versus buying looks like these days. We have a lot of readers and a lot of podcast listeners that do like to lease.

Jenni Newman: So right now, leasing, you might not find the lowest monthly payment because of the inventory shortage. There’s been drops in incentives. There is higher monthly payments because of the supply crunch. And so we’re seeing not as many people turn to leasing right now, or at least taking a pause.

David Muhlbaum: We keep coming back to this market environment of high prices and ongoing demand and ongoing chip shortages. One of the things I remember driving that in the beginning of the pandemic was people who didn’t have a car or maybe only had one car deciding, “I need a car. I need a car in my life”. I would’ve thought A) That that would’ve been finite. They got their car. They don’t need a third car. And B) I was thinking, do you think those people have regrets at this point? And would that possibly, I’m really speculating here, lead to some of those cars coming back onto the market?

Jenni Newman: Great question about regrets. I do wonder about that as well, simply because we know that the cost of ownership includes things like insurance. And if you’re in big cities, perhaps paying for parking. And then right now, really high gas prices. So cost of ownership could be getting to a point where for some people who stretched their budget to afford a car, perhaps it’s a bit much these days. And with comfort levels increasing during the pandemic, they could be looking to offload their vehicle and if they are, then they will get a really good price for it right now.

Jenni Newman: As far as the number of people during the pandemic who needed new vehicles or who rushed to buy vehicles, I think that so many people have been putting off the purchase of a vehicle because of the constraints in the market that it’s going to be a while before we see things level off from a buying perspective. I do wonder, as automakers continue to slowly, slowly ramp up their new car inventory, how long will it take for us to finally see this crunch of demand level out a bit. So I’m also watching that with a lot of curiosity.

David Muhlbaum: Well, thank you for your insights on that. And for dealing with my complicated two part questions. This demand question is both interesting to explore at a macroeconomic level and really comes home when the tree falls on your car and you need one. So thank you, Jenni, for your insights on helping people get their four wheels, whatever they have to pay for it. Thanks again.

Jenni Newman: Thank you so much for having me today.

Mark Solheim: Jenni, thank you very much. It was a pleasure.

David Muhlbaum: That will just about do it for this episode of Your Money’s Worth. If you like what you heard, please sign up for more at Apple podcasts or wherever you get your content. When you do, please give us a rating and a review. And if you’ve already subscribed, thanks. Please go back and add a rating or review, if you haven’t already. To see the links we’ve mentioned in our show, along with other great Kiplinger content on the topics we’ve discussed, go to kiplinger.com/podcast. The episodes, transcripts, and links are all in there by date. And if you’re still here because you want to give us a piece of your mind, you can stay connected with us on Twitter, Facebook, Instagram, or by emailing us directly at podcast@kiplinger.com. Thanks for listening.

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Links and resources mentioned in this episode:

• Kiplinger's Closing Bell Newsletter
• The 16 Best Value Stocks for the Rest of 2021
• 10 Best Value ETFs to Buy for Bundled Bargains
• Karl Brauer on Twitter
• Getting a Used Car Deal in a Tight Market
• iSeeCars.com: Best Places to Buy a Used Car study
• iSeeCars.com: Best Cars to Sell, Worst Cars to Buy Amidst the Record Price Surge

Transcript

David Muhlbaum: Save money by buying your car used. You've heard that advice from Kiplinger and others before. Sure. But it's getting harder to do in this topsy-turvy market. We'll sort out what's going on with car prices and how you can still make out. Well, okay when shopping for wheels. Also, the rotation into value stocks will translate. All coming up on this episode of Your Money's Worth. Stick around.

David Muhlbaum: Welcome to Your Money's Worth. I'm kiplinger.com senior online editor David Muhlbaum, joined by my co-host, senior editor Sandy Block. How are you doing, Sandy?

Sandy Block: Tan, rested and ready.

David Muhlbaum: Good. Now, somewhat unusually for us, we have a third voice on our opening segment, but it's one that our listeners have heard before when we talk about investing. Welcome, Kyle Woodley, senior investing editor for kiplinger.com.

Kyle Woodley: Hello. Hello.

David Muhlbaum: So, Kyle and I collaborate on Kiplinger's stock market summary. It's called Closing Bell and every darn trading day, Kyle, or others on our investing team, write a few hundred words that discuss what stocks did that day and why. And we also try to connect the ups and downs and sideways of the market to trend stories that we're writing at Kiplinger. And I frequently edit these — or mangle, Kyle might say. And so some of the natural push and pull between writer and editor is about jargon of course, and stocks have plenty of jargon. So, when Kyle started using this phrase rotation into value, I threw a flag and said, "Hey Kyle, what the heck does that mean, 'rotation into value'?"

Sandy Block: Right. Is that like rotating the tires on your car? Or I guess that's the next segment, right?

David Muhlbaum: Rotation for value. Yeah. Right. So, Kyle, please tell the listeners what rotation into value means because it did turn out to be a valuable bit of shorthand. One that tells us a good bit about the market in 2021.

Kyle Woodley: Sure thing. So, I guess we'll start with the idea of rotations in general. Let's say you check the S&P 500 for the day and see that it's up 1%. That's a fair indication of what "stocks are doing," broadly speaking anyway. So, naturally all stocks don't really swim together like a school of fish. Certain areas of the market are stronger than others at any given time. Sometimes it's value stocks, that's generally just any stock that's perceived to be trading at less than its intrinsic value, but some sectors tend to be more value-priced more often than others. Sometimes it's growth stocks, like Tesla, Square, Etsy — companies that are expected to grow a lot and unlike value stocks, they often trade at very high multiples to things such as earnings, sales, what have you.

David Muhlbaum: They're expensive.

Kyle Woodley: They can be. So, a rotation is when investors see opportunity in one sector over another and they increasingly pile their money or rotate into those stocks.

So, growth has led the market for most of the past decade-plus, actually. However, over the past year or so, investors have been preferring value-oriented sectors because of what's happening with the economy and that it happens to favor them. Take energy, for instance. People are moving about the country more, that's helping to bring up oil prices. Investors want to harness this, so they're buying up energy stocks, which is typically a value-oriented sector and they're exploding as a result. Energy's up almost 45% so far in 2021; the S&P 500 is up about 14%.

Sandy Block: So, Kyle, can you rotate... I guess, translate these trends into specific stocks or tickers that the people might want to be aware of?

Kyle Woodley: Sure thing. So, because we have to eat, I'm going to point people towards the website for certain things. We've recently published value selections across both stocks and exchange-traded funds on kiplinger.com. So, just search best value stocks, Kiplinger, or best value ETFs, Kiplinger, or just visit us at kiplinger.com. But a couple of picks that stand out, Rent-A-Center, ticker RCII, is trading at nearly half of its historical forward price-to-earnings ratio. And it's 36% cheaper than the rest of the consumer discretionary sector. For ETFs, if you're looking for something that's just really cheap and straightforward, Vanguard Value ETF, ticker VTV is just 0.04% in annual fees, which comes out to just four bucks a year for every $10,000 you have invested in the fund. A really interesting play that I like though is called the Roundhill Acquirers Deep Value ETF. So that's ticker, D-E-E-P, D-E-E-P.

David Muhlbaum: DEEP.

Kyle Woodley: ... ticker DEEP—

Sandy Block: DEEP.

Kyle Woodley: ... DEEP, which targets deeply undervalued small and micro-cap stocks. It's a very aggressive way to chase value, but one that you can squeeze for a lot of juice if you're highly convicted.

David Muhlbaum: Okay. But what does this rotation mean and these different classes mean to someone whose involvement in stock investing is occasionally rebalancing the holdings in their 401(k)? How do they care?

Kyle Woodley: It depends on the person. So, keep that in mind. But I feel like a lot of people are going to be diversified enough in their 401(k)s that it won't even matter. If you really like to fiddle with your 401(k), maybe you adjust your holdings to include a little bit more value if you think it'll keep up, if you think this movement into value will keep up. If you own actively managed funds though, those managers, depending on the rules that they operate under, they might be making the shift into value for you. Most people aren't really going to be very tactical in their 401(k)s and given the time horizon they're investing over, in those accounts, they really don't need to do much.

David Muhlbaum: Got it. So when might this rotation into value end? One of the things that's jumped out at me is when you said... I don't know if it was the energy sector overall or a particular stock, but you mentioned up 40%. And I thought, "Well, okay, is it still a value?"

Kyle Woodley: What do I look like to you, Ms. Cleo?

Sandy Block: No, you do not!

Kyle Woodley: No. I'm not going to pretend to have an exact answer to that because no one actually knows, but when value sectors stop looking so value-priced, especially relative to growth, your areas of the market, that's going to be one possible trigger for a cooling off. When this rapid economic push that's been spurred by the whole reopening play starts to wane, people are probably going to become more interested in tech and traditional growth again. And there's a lot of money that's out there that can rotate back out of value. I just saw on CNBC, it was a week or so ago, they were quoting Goldman Sachs and they were saying that mutual funds are overweight value to the largest degree in the eight years that they've been gathering such data. So, when a move happens, it could be strong.

David Muhlbaum: All right. So, when rotate back out of value becomes the phrase that we use instead of rotating into value, well, we'll tell you about that then. Thanks so much, Kyle.

Kyle Woodley: Thank you for having me. See you later.

David Muhlbaum: Coming up in our main segment, we talk about what's going on with car prices with analyst Karl Brauer. How can you still get a deal on your next ride these days?

Used Cars with Karl Brauer

David Muhlbaum: Welcome back to Your Money's Worth. For this segment. I'll be joined by the editor of Kiplinger's Personal Finance Magazine himself, Mark Solheim. Now, he and I think we know something about cars and the auto market, but to ensure that we get the latest, we've brought on Karl Brauer, whose current title is executive analyst at iSeeCars.com. He's worked for KBB, Autotrader, and Edmunds.com as well. So yeah, we know he knows cars. Welcome, Karl. Thank you for joining us.

Karl Brauer: Hey, great being on with you guys, always fun talking cars.

David Muhlbaum: And thanks to Mark, too. Mark, this is your first podcast. Welcome to Your Money's Worth. I know you've been listening to us, because you have to.

Mark Solheim: Yeah, I listen every week and try and find some errors, something to criticize, but it's getting harder and harder to do that.

David Muhlbaum: I'm sorry.

Mark Solheim: I have to say that I think of David and myself as a bit of a yin and yang of cars. I covered cars for about six or seven years, 20 years ago. Started 20 years ago and David, after I went onto some other things, David took over covering our cars. But David's always been much more of a gearhead than me. I think he knows almost everything about cars in detail. He's got that sort of a steel-trap mind. I'm much more interested in the financial side of things. It always leads to, "David, when are you going to do that big feature article on leasing?" And David goes, "Oh, no. I don't know."

David Muhlbaum: Right. Yeah. And in fact, we haven't had a full-length car buying chat here on Your Money's Worth since almost a year ago, when I was the guest talking with my predecessor as the host, Ryan Ermey about used-car buying strategies. And so, used-car buying strategies, which Mark has written about recently. Well, that's the exact sort of thing we want to come back to today, but it got to start out by looking at the car market writ large this year, because – and I use this word with care – it's nuts out there! Karl, I've got my used-car price anecdotes. I'm sure you and Mark do too, but can you start please by giving us all some data, what is going on with used car prices? Why are they so high?

Karl Brauer: Yeah, so they have gone through the roof and I don't think most people consider used cars an appreciating asset, unless there are some kind of rare classic, unique, limited production car – and they're out there. But most people wouldn't consider an F-150 or a Honda Accord an appreciating asset, under normal circumstances. But they have been for the past year, they've actually gone up in value over the past year. And it varies between different makes and models. But we've seen these prices shoot up approximately 16% in the past year. And normally, they don't change at all. If you take a one through five-year-old car, used car price and you look at it and every year you're going to take the next, you're going to move the years up one because you're always looking one to five years old, normally the change. Well, from 18 to 19, we tracked it, like down 0.2%. And then from 19 to 20 it was up 0.3%. And then all of a sudden you get a 16% bump in one year.

David Muhlbaum: Right. And for the individual car owner, like the person who owns one or two cars, the word they've used all over the years was depreciation. Like I have this thing, it loses value every year until I buy another one.

Karl Brauer: That's how it usually works.

David Muhlbaum: Right. That's how it usually works. And maybe we'll get back to the idea, crazy idea of like speculating in cars, but for most people, they don't speculate in cars. You buy a car because you need a car. And it's an unusual situation. People are getting sticker shock when they're going out to buy the thing that we always say was the place to save money, buy a used car and save money. So why?

Karl Brauer: Well, used cars follow new cars, literally and figuratively. And so if people don't get rid of their current car to buy a new one, they restrict the used car market. And a lot of people have not bought new cars for the past year because of reasons that we can all probably guess pretty easily. But when you had initially a shutdown of new car production and new car buying, everyone was stuck in their house for several months, that restricted the trade-in of your existing car for a new one. And then when people finally decided not only do they want a car, but they probably want a car where they might not have before, you had a lot of urban dwellers who took public transportation. And again, for reasons we don't have to go into, but I think we all know., suddenly the idea of taking public transportation or being the 800th person in an Uber in the past week wasn't as appealing.

Karl Brauer: And the technology has proven that a lot of people can work from home that didn't know it. And a lot of bosses that might not have put up with it have now acknowledged it works. So all of a sudden the idea that you have to live in the city and use public transportation to go about your daily life has been kind of blown apart. And a lot of people who used to live in cities and take public transportation or shared transportation, now live in suburbs and need a car. So, you combine a restriction in new car supply with an increase in new car and used car ownership. People who didn't have a car a year ago, now want one, and you've got both things moving in the wrong or right direction, depending on how you look at it. Both supply being somewhat constricted and demand shooting up.

David Muhlbaum: Since we're using these wonderful macroeconomic terms like supply and demand, I want to throw in another one, which is, well, money, right? One of the things that people were taking their stimulus checks and turning them into were wheels.

Karl Brauer: 100%. 100%. And not only that, but on top of that, you had people who weren't going on vacations anymore, or weren't going to movies, or even out to dinner as much anymore. So, they looked in their savings account and they were like, "Huh, I've got more money in there than I expected to have at this point in time. Maybe I'll go get a car instead." So, they unintentionally saved their money and when you save money and you'll see a big chunk, what you used to dwindle away on a per day or per week or per month basis, now it looks like plenty for a down payment on a new car if you want one. Finally, the more recent thing that's really still hitting the cars, I can give you the numbers more recently, is the chip shortage, right?

We've got a microchip global shortage, because cars are like computers. They need all these chips, but so do personal electronic devices like cell phones and laptops and iPads and gaming consoles. And guess what also went up like crazy in the last year as we were all stuck inside? Personal electronics, where you could at least sit in your house and still entertain yourself. So, a lot of people bought new computers, putting a big demand on computer chips, and that's still an issue, and it's still restricting new car production in the midst of all these other factors we just talked about.

Mark Solheim: And is it true that cars are sitting in huge lots around America, just waiting for these chips to be delivered?

Karl Brauer: It's 100% true. And there again is the irony, right? You've got dealer lots bare. There's not very many, if any cars there and they're scrambling to get more cars in, new and used the dealers are wanting, but then you've got a whole bunch of cars sitting where you can't buy them at the kind of back lots and parking areas outside of manufacturing sites with not quite all the chips they need. And that's the old joke that a lot of people may or may not know, which is that a car has 5,000 parts. And if you've got 4,999, you still can't sell the car. You still can't do anything until you have all 5,000.

David Muhlbaum: Now, this is the sort of question that I would be tempted to ask at the end, but I'm just going to jump ahead. How long is this going to last?

Karl Brauer: We're thinking, at least through the calendar year. There is just too much of this new demand from these new-car buying constituents, people that didn't really care about cars and now all of a sudden they want one, and there's too much restriction in chips globally. So, this will rebalance, like everything, but it's not going to happen next month. And it's probably not going to happen in September. It probably will start to happen right at the end of the year or into next year. Don't forget that he most popular buying season is between say, May and September. It always slows down dramatically in November through March. So we'll have a natural reduction in demand, just cyclically, that'll help rebalance things as the chips come up on the production.

Mark Solheim: And I have to say the current Kiplinger Letter has a little section on this, and they're saying exactly what you're saying, Karl. Six months, at least, but more likely a year before things get back to fully normal.

Karl Brauer: Yeah. Yeah. That's what we're looking at.

David Muhlbaum: Be that as it may, people need and want cars, they're going to go out there. They may have to shop now. Could we touch on some strategies about how you can still get the best deal on used cars, and maybe Mark, you just wrote about this, because I didn't.

Mark Solheim: I did. And I wish I had better advice. In fact, one of those real-world stories, my niece is looking for a car and she's got her heart set on a 2021 Honda HR-V, a subcompact SUV. Unfortunately, right now, she's still in Denmark. So, she's trying to negotiate a new car sale from Denmark. She's coming back to Michigan. And I just see on WhatsApp that she sent the quote that one dealer gave her. And it didn't even bother to give her the price of the car. He just told her what the financing would cost, $712 a month for three years. And her mom chimes in, "Try this other dealer." And I've been trying to tell her — competition and knowing what you want and all doing your homework and, frankly, not looking for an SUV of any sort or a truck because prices are so high for those because everyone wants that, right? But I don't know, Karl, maybe you can help answer this question.

I'm saying to her, "This is the absolute worst time to buy." I guess, going back to the timeline on when this is all going to end, you'd be much better off in say, November.

Karl Brauer: Yeah, you would. Again, the winter months, we always have our study every year that shows kind of the best and worst times to buy a car and believe it or not, if you're going by purely holidays, it's Martin Luther King, Jr. Day is actually one of the best holidays to buy, but really any time between November and February, mid to late February is your better timeframe. And again, that'll be emphasized this year because we should start to see some of these other forces start to diminish beyond just the seasonal buying habits that happen every year. The other thing to do is to... There's two things, right? One is flexibility. As soon as you told me... I hear the word, heart set. It's like, "Uh-oh, we're in trouble here."

David Muhlbaum: I though it was the other H-word, when she said "Honda."

Mark Solheim: I know, I know.

Karl Brauer: Well, both of those make your life tougher if you're trying to buy a car because Hondas are in good demand too. But no, flexibility is your friend anytime you're car shopping, right? And that's flexibility on everything from which make, which model, which color, which features, which location. A lot of times, people forget that if you're doing a search and you're doing what most people do and they just restrict themselves to 20, 30, maybe even 50 miles within their home to go buy a car, well, there's a lot of dealerships out there and they aren't just within 50 miles of your house. And if you go from 50 to 150, depending on where you live, you could dramatically increase your ability to buy a car.

Karl Brauer: Now, people are like, "Well, I don't want to drive 150 miles to buy a car." If you're going to save, I don't know, $1,000. And you could save more than that going 150 miles, but $1,000. If someone told you right now, "I'll pay you a $1,000 to drive 150 miles." I think most people would be like, "Okay, I'll do that." Even 300 round trip. So... Go ahead.

David Muhlbaum: Well, I think what you're touching on there reflects changes in the market. And by that, I don't mean the supply and demand market. I mean the how-to of how people go around about buying used and new cars. Like, Mark's niece is trying to buy a car from Denmark. That's not crazy anymore. So, the idea of buying a car that you may not have even laid eyes on is actually becoming more and more common. And Mark's article lays out a lot of the platforms that are making this kind of transaction a lot easier. I'm not going to get into the pricing angle of it, but the idea that you can really look over sort of frame by frame a car in question, and know that it's got certain warranties to it for the things that you can't see or inspect yourself, and then go ahead and drive those 150 miles and close a deal. Yeah. People need to consider that more.

Karl Brauer: 100%.

Mark Solheim: Right. And just being able to look nationwide, if you want to on these sites gives you so much more information. And Karl, you're right. Like go out there and drive back or have it delivered for $1,000 to your house. And whether you do that through a private party or a dealer, and of course there's this whole relatively new, all-digital phenomenon of the Carvanas and Shifts, et cetera. But what do you think of those? Do you think you can find a better deal or as good a deal, they claim there's no dealer showroom, no overhead, but is that really true?

Karl Brauer: Well, it's a fascinating question. And thankfully, we've got some good data crunchers here at iSeeCars.com, and we looked very closely at that. And not surprisingly to me, what we found was that your best place to get a used car — if you can still get one, there's far fewer now because a lot of them have gone out of business — was a rental car. Rental car agencies were where you can get your cheapest cars. Now, people are like, "I don't want to buy a rental car." That who knows how that was treated. But they forget that a lot of times the rental cars from these big agencies come with some kind of limited warranty and they have full records of how well they were serviced, which you often will get with a lot of other cars. But if you don't like that, then there's the regular used car dealer, then there's the Carvanas and these online shoppers.

Karl Brauer: The highest price, and it was on average $400 more per car. Online shoppers, you paid more. I think people were still doing it because of all the other things you've mentioned, that convenience. So I think plenty of people it's like, "I can avoid going to a dealership," and they don't know this. They're just like, "I'll do that." If someone came to him and said, "Yeah, it's $400 more and you'll never talk to a salesman." Okay, they'd still pay that money, right?

Mark Solheim: People hate to haggle.

Karl Brauer: Right. Right. So whether they know they're paying more or they don't, and they don't care, the reality is transaction price-wise, you're paying more at these online retailers. And they know it, the retailers of course know it and they're still making money. And of course, if they really don't have all this overhead, they're making okay money. So, it's not a bad deal for them. But the other thing to keep in mind too, when you're shopping used cars is not everything's gone up crazy. Most things have gone up, but some have gone up somewhere between say 1% and 5% versus 18% to 25%. The average is 16.8%. And things like trucks and coupes and convertibles, believe it or not are typically between 20% and 25%. But I've got a list and it's interesting to me, Mark. We've got a list we just did in a few weeks ago at iSeeCars on the smallest price changes.

Karl Brauer: One of the cars on that list is the Honda HR-V. It's "only" gone up 6.9% or call it 7% in the last year. So, you should be potentially able to find one of those, might have to widen your search term or your daughter might have to widen the search term, but if you can be a little more flexible on where, you might still find a decent deal on an HR-V versus say some of these other SUVs that have gone up much more.

David Muhlbaum: Interesting. Can we dig in a little bit more into particular models in particular sectors that are higher or lower?

Mark Solheim: For example, just real quick. When I was doing my article about buying these cars in our June issue, someone from a competing website mentioned EVs such as the Bolt, Volt, and LEAF, and of course, small sedans that people love when they lived in the city and maybe they don't love as much anymore in the suburbs, but those are just a couple of ideas that others threw out.

Karl Brauer: 100%. There's definitely themes between segments that have gone up more or less. And I can tell you right now, I'm looking at the list we had from iSeeCars and pickup trucks, coupes, and convertibles are the top three and minivans, SUVs, believe it or not, and hatchbacks are the bottom three. And the average against 16.8%. So, minivan, SUV and hatchback are 15.3%, 14.4% and 12.3% respectively. Whereas pickup, convertible, and coupe are 25.3% 25.1%, and 22.2% up in the past year.

David Muhlbaum: One of the flip sides of this situation is that people who have a car who want to trade it in might find, "Hey, my asset has appreciated. This thing that we used to think lost money is worth more." That is literally happening to people.

Karl Brauer: If you want to get away from averages on percentage, just talk numbers. Pickups on average, $7,300 more. Convertibles, $6,000 and coupes, $6,600 more. So these are $6,000, $7,000 appreciation values. Now, the tricky thing is we all know when you go to a dealer is no matter what everyone knows and it's universally known that used cars worth lots of money. Guess what happens when you go to a dealer, no matter what car you're trading in, "Well, we really don't need one of those on the lot." "Really? I don't see any other car on your lot for sale. Maybe you do." And, "Well, um, errr." So, you've got to go to the dealer and make sure the dealer knows that you know.

And literally, I would go to a dealer with a truck right now and I'd have all sorts of fun and stuff like, "So, what's it going to take for you to get me out of this car today?"

Mark Solheim: I like that one.

Karl Brauer: Because I know it's a truck and I know where trucks are right now. "So, make me an offer. Otherwise, I'm going to the next dealer down the block and we'll see who gets my truck first."

David Muhlbaum: "And I've wrapped my seatbelt buckle in duct tape. So, it's gonna to be hard."

Karl Brauer: That's right. You're not getting these keys until the check is written.

Karl Brauer: So, yeah. That's the thing though, and of course it's like houses, guys. We see our house prices go up like, "Oh wow." And then we see the house we want to buy next. And we're like, "Oh." So, you got to get rid of the right vehicle if you're trying to do that at all and buy the right one. But you sell a pickup, you buy a hatchback, you're going to make up some good ground in today's market right now.

Mark Solheim: But that's another question I have, and I was trying to tell my niece, but I didn't have a good answer. Can you really negotiate? She doesn't have a trade-in. She wants to buy this HR-V, and she's trying to negotiate. Our dealers just... I go back to buying my 1986 Nissan Sentra. And what did they call them then? There was adjusted markups or they were adding a price markup-

David Muhlbaum: Dealer markup.

Mark Solheim: ... to the sticker price. And when I went in with my Kiplinger's car buying guide and said, "This is what I want to pay," the dealer laughed in my face. And I'm wondering if that's the same situation now, many, many decades later, it seems. Can you negotiate?

Karl Brauer: This is definitely the worst probably time for having strong negotiating power on buying a new or used car because of the reality. But I still always say that once a dealer knows you're a serious buyer and you're about to spend real cash and they might not get that cash, another dealer might, that is your biggest power as a consumer. It drives them crazy to think that in the next 72 hours, somebody's getting a lot of cash out of you and it might not be me as the dealer.

Mark Solheim: Competition.

Karl Brauer: Yeah. So, what I would do with anyone like someone trying to buy an HR-V right now, again, I'd widen the search. I'd be flexible on the location and as flexible as you can be on color and options too. And basically make these guys play against each other. Get a price from one of them, go to the other one and try to get a price. And whoever's got the lowest price, go back to the other two and say, "Well, this one's willing to go down to this," and see if they'll drop below that one's price and stuff. And you can do that through email relatively easily. You don't even have to talk to someone. So for people who don't want to negotiate and don't like the conflict of in-person talking to the salesman, do it through email if you have to.

Mark Solheim: And by the way, I have to say that when I got my Ranger a year ago, the dealer dropped the price $26 because they made me send the VIN of the competing vehicle I was trying to play off of them with. And he said, "Yeah, we want your business, we want to make you happy. We'll cut $26 off."

David Muhlbaum: Go have lunch.

Karl Brauer: Yeah. Pay for your first tank of gas. He is right. That's not bad.

Mark Solheim: Yeah, exactly.

David Muhlbaum: Well, when we're talking about amounts like that, one of the things that could come into play when you're doing that wider search, particularly if you're looking at a new car versus a used car, when you do that wider search and you're encompassing other states, you could get into the question of the hated dealer processing fee, which is basically what they charge you to ring up your car. In some states, there are caps on how much that can be. And in some states, there are not. So, if you live in a place where you have the ability to shop multiple states, multiple dealers, by broadening your search, as Karl suggests, that can come into play as well. This is three-figure stuff, but it could help.

Karl Brauer: Yes. Yeah. And again, that's really what... Any time you're buying a car, new, used, you want to take your power as the person who's got money and someone else wants it. And I always feel bad when consumers forget that because I think they feel like the dealer's got all the power and it's all about attitude and confidence and knowledge. And if you know that you've got multiple choices on anything related to car purchasing, you get your financing ahead of time. So, you've already got a baseline rate you're going to get, and then you go to the dealer and watch them and don't tell them that and say, "Yeah, what kind of financing?" And guess what happens when they say, "Well, I don't think we can get much below 4% right now." "Interesting. I got a credit union about to do 1.9%." "We can match that. Yeah, we can match that."

Then you get, "Oh, we can't go lower than this price right now." "Well, there's a guy who's on the other side of town and I have no problem going there and he can get me the same basic car for this much." "Well, we can match that." So, you really got to play your knowledge in the market to your favor and not... I always tell people don't fall in love with a car. Don't buy the first car you see. Don't go to only one dealer. These are big investments. These are often the second most expensive thing people buy. Take the time, educate yourself and exercise and flex the knowledge is power capability that you can have.

David Muhlbaum: Shopping for outside credit is one of those things we've always advised people. On the other hand, especially back, early pandemic, I'm not really quite sure about the rates now, so many of the promotions were structured around 0% or really aggressive financing backed by manufacturers. Again, this is new cars. So, one of the things that I always wondered is what about the person who wants to put down more cash or who has the cash to put down? How can they turn that promotion into their favor? If they're not really that interested in the financing, how can they lower the price?

Karl Brauer: It's tough because once upon a time, cash was king and you could go up and tell them, "Hey, I'm going to pay all in cash." At this point, they often get some kind of benefit by helping with the financing even if it's 0% financing, don't forget, we all live in a data farm world now. So, if you're going to go buy a new Dodge Challenger and there's financing through Dodge that's 0%, it's going to be hard to do better than that anywhere else, but the dealer still wants you to buy through them just for the data component, just to have control... Just to be able to get all that information to their... That's one of the things they still benefit from even at 0%.

David Muhlbaum: Or sometimes the dealer stands to benefit from the financing arm simply by getting you to finance with that outfit?

Karl Brauer: Exactly. Exactly. So that's why having cash doesn't really speak that powerfully anymore like it used to. The dealership's like, "Well, you're going to say, you're going to buy all in cash and you want another $1,000 off. We don't really care. We actually do better and it's simpler for us when we got to deal with like transporting $25,000 cash and making sure nothing happens to it before we get it to the bank, because you've got that in your bag right there. It doesn't really help us. So.

David Muhlbaum: Right. And I think that counsel sometimes falls a little hard on some ears at Kiplinger because we have people who are definitely into the idea of save your money, buy it with cash, avoid financing. And yet that doesn't always break the way you'd hope it would.

Karl Brauer: Yeah. You still get all the other benefits. You're not paying an interest on the car and you own it outright. If you have to sell it, there's no way you're underwater on your loan if for some reason you had to sell it a few weeks or months or years later. So, there's plenty of advantages for buying a car, whether it's cash or wire, whatever the form takes, not having a loan, but it doesn't really help you negotiate a price at the dealers these days.

David Muhlbaum: Since you mentioned that U-word, underwater, it makes me wonder a little bit about the future. Are a lot of buyers now going to find themselves underwater in X years and have buyer's remorse? Another thought about buyer's remorse is not financial, but those new car buyers, those people who said, "Not riding that bus anymore," and bought a car and it was all fine and well for a year of no-traffic driving, it's going to choke back up again. Can we look a few years out and guess what it's going to look like out there in the used car market?

Karl Brauer: It's a great question. I do feel like there's been something of a paradigm shift. I think we've gotten to a new stage of capability technologically, and that has enabled more and more people to work from home. And I don't see that going back. So, I think the technology really already existed, then the requirement of legal and prudent health concerns forced the use of the technology that really already existed. And it illuminated those capabilities to a wide range of people. And I think there's a lot of people like, "I don't want to ever have a commute again." Or, "I don't want to ever live in a city again," or whatever. And so, I think we're going to kind of have an ongoing increased number of people who want cars and that should keep it from having any kind of whipsaw effect in another 12 months. Like you're saying where all of a sudden, nobody wants their car anymore.

Again, it'll balance out and this crazy demand it's still growing. So, all we got to do is just get it to where it's equal in terms of pricing for the used and new cars. And we're going to be better off than we've been for buyers in the last year. But I don't think we're going to see a huge contraction anytime soon and maybe really not ever. This might be... We've heard the term, new normal used at various times in the last 10 years. This might be our new normal for car demand.

David Muhlbaum: We have covered such great ground today with Karl. Thank you for joining us. And thank you too, Mark. I hope the first round was good for you.

Mark Solheim: Oh yeah. I had a great time, David.

David Muhlbaum: Cool. Thank you both so much.

Karl Brauer: Great being on with you guys. Take care.

David Muhlbaum:That will just about do it for this episode of Your Money's Worth. If you like what you heard, please sign up for more at Apple Podcasts or wherever you get your content. When you do, please give us a rating and review. And if you've already subscribed, thanks, please go back and add a rating and review if you haven't already. To see the links we've mentioned in our show, along with other great Kiplinger content on the topics we've discussed, go to kiplinger.com/podcast. The episodes, transcripts, and links are all in there by date. And if you're still here, because you want to give us a piece of your mind, you can stay connected with us on Twitter, Facebook, Instagram, or by emailing us directly at podcast@kiplinger.com. Thanks for listening.

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Car shopping has always seemed a bit like gambling in Vegas: At the end of the day, the dealer comes out ahead. Over the past decade, the internet has helped change the rules to give consumers a bit more of an edge, adding transparency and the ability to comparison shop among thousands of vehicles—across the entire U.S., if you wish. But until recently, unless you were buying from a private party, you’d eventually find yourself in the dealer’s showroom—and the financing and insurance office—when it was time to pull the trigger.

That’s changing. Now it’s possible to buy a vehicle entirely online, and the pandemic has accelerated the digital car-buying trend. If you’re shopping for a car or truck, it’s easier to find a dealer or service that will let you complete your trade-in, financing and paperwork online and top it off by delivering your new ride to your driveway. The person who delivers your vehicle may even drive away your old one. All-digital used-car sites, such as Carvana, Shift and Vroom, tout their vehicle inspections (they go over up to 150 separate items) and a seven-day return period—and claim to offer lower prices because they don’t have dealer showrooms.

The buy-from-home experience is still a small segment of the market, especially for used vehicles. Most buyers are more comfortable test-driving a vehicle and giving it a thorough inspection (or having a mechanic inspect it). But even if you ultimately end up at the dealer, you have the opportunity to do research, comparison shop and get prequalified for financing online, all of which gives you the information to strengthen your negoti­ating position with the dealer.

We’ll run down five pop­ular sites for used-car shoppers and what to expect. But wherever you shop, use these strategies to get the best deal.

Find the sweet spots

When manufacturing plants shut down in March 2020, the supply of new cars decreased and prices increased. But demand stayed strong, despite the sharp economic downturn. City dwellers who had relied on ride-hailing apps and public transit wanted their own wheels, and private cars became the transportation of choice. Plus, many households had more money to spend: Stimulus checks provided cash, while lower expenditures on travel and restaurants helped boost savings to record highs.

With fewer new cars, there were fewer new-car buyers and fewer trade-ins, and some would-be new-car buyers turned to the used market. As of March 2021, with added stress from supply-chain disruptions, new-vehicle inventory at dealerships nationwide was down by more than one-third, reports Edmunds, an automotive website. That’s pushing up prices even more for both new and used vehicles. The average transaction price of a new vehicle recently topped $40,000; the average used-vehicle asking price, based on listings on TrueCar.com, rose from a pre-pandemic $22,100 in March 2020 to about $25,670 in April 2021—about a 16% pop. Pickup truck and SUV prices are particularly high. According to Edmunds, the average transaction price for used full-size trucks is expected to climb to $34,445 this year, compared with $28,156 a year ago, and the average transaction price for used large SUVs is expected to climb to $35,035, compared with $31,232 a year ago. Prices are likely to rise even more as buyers flush with tax refunds and American Rescue Plan checks go shopping.

You can find better deals on smaller cars, which typically have higher fuel economy—good city vehicles that are easy to park. Nick Woolard, an analyst with TrueCar, also suggests used electric vehicles, such as the Chev­rolet Bolt and Volt and Nissan Leaf (see Save Money With an Electric Car). Matt DeLorenzo, senior managing editor of automotive website Kelley Blue Book (KBB.com), adds sedans that carmakers are discontinuing—such as the Ford Fusion and Chevrolet Impala—to the list of potential bargains.

If you’re not in a hurry to buy a used car, consider waiting until late summer or fall. As new-car inventory ramps up—and especially as the 2022 models hit dealer lots—the number of used vehicles will also increase, and prices are projected to fall. Plus, more vehicles come off lease later in the year, increasing the inventory of certified preowned (CPO) vehicles.

Comparison shop

The pandemic accelerated another shift in the auto industry, says De­Lorenzo: As carmakers were forced to cut the supply of vehicles for sale last year, they discovered they could clear a fair profit by focusing on margins instead of volume. That means, at least for the near term, lower production is here to stay. “On average, cars will cost more, and it will be more difficult for buyers to find what they want,” says DeLorenzo. “You will have to cast a wider net.”

A million or more used vehicles are listed at sites such as KBB and Autotrader (both owned by Cox Automotive), Cars.com, CarGurus.com, and TrueCar. Dealers provide most listings, with some private-party offerings mixed in (except at TrueCar). Start your research at one of these large marketplaces, but also check out the other venues listed on the next page.

Most sites allow you to see listings nationwide. If you find a vehicle that’s hundreds or thousands of miles away that will save you more than the cost of a plane ticket to go pick it up or the cost of shipping, go for it. Cross-country transport runs $1,000 or more.

To round out your shopping, consider rental car fleets. Rent2Buy at Hertz and the Ultimate Test Drive at Avis let you browse the fleet online, pick the model that you want, and take it for an extended test-drive (up to three days) from many of their rental locations. Enterprise Car Sales does not offer a several-day test-drive, but it will buy the car back within seven days if you don’t like it. However, the rental fleets have reduced their in­ventory during the pandemic and are running their cars longer. That means you’ll likely find less selection, and the vehicles may have more mileage and greater wear and tear.

Get peace of mind

As you decide on which vehicles to shop, check their reliability and repair records at Consumer Reports and Nadaguides.com. KBB and Autotrader have top-10 lists of used cars and SUVs, updated monthly.

Focusing on a CPO vehicle is one way to get peace of mind. You’ll pay a premium—typically $1,500 to $2,500—for the CPO assurance, but only late-model vehicles (usually less than five years old) with low mileage (less than 60,000 miles) qualify for CPO programs. They’re put through rigorous inspections and come with an extension of the vehicle’s new-car warranty. You may also get perks such as low financing rates and roadside assistance. Carmakers often tap off-lease vehicles for their CPO fleets. Because new-car sales (including leases) were strong two, three and four years ago, the selection of CPO vehicles is still fairly good.

If you’re not buying a CPO vehicle, dig a little deeper in your research. As you identify vehicles you may want to buy, check the vehicle’s CarFax or AutoCheck report; some dealers offer one or the other free, and TrueCar summarizes the crucial points of the AutoCheck report for each listing. You can get a free vehicle report at National Insurance Crime Bureau (NICB.org), VehicleHistory.com or iSeeCars.com. Ideally, the vehicle will have relatively low mileage, one owner, no accidents and a history of regular maintenance. But as you stray from those guardrails, the price will usually decrease.

Negotiate a fair price

Figuring out a fair price for a used car is even harder than with a new car, because no two cars have identical histories, and mileage and condition will vary. A variety of websites offer used-car prices and break them down by transaction type—dealer, private party, CPO and trade-in. For any car you’re interested in buying, look up pricing at Edmunds.com, KBB.com and NadaGuides.com and come up with an average as your target. CarGurus.com rates each vehicle it lists from “Great Deal” to “Overpriced.” TrueCar also labels prices from “Great Price” to “High Price” based on its own algorithm.

You may prefer the no-haggle route—from, say, CarMax or Carvana. Without negotiating, you may end up paying a slightly higher price. But remember, it’s not all about the price you pay on the vehicle. For most buyers, the entire transaction consists of a trade-in as well as the cost of financing. You’ll probably come out ahead if you negotiate the price of the new vehicle and the trade-in separately.

Get top dollar for your trade-in

The flip side of higher used car prices is that it’s a good time to trade in your vehicle. The sites we list below let you sell your used vehicle. Go through the motions and get a formal offer to see what you can fetch for your trade-in. “It sets the floor for the minimum you’ll accept from the dealer,” says DeLorenzo. Note, however, that it may be worthwhile to forgo a separate sale and make the trade-in part of the car-buying transaction. Most states charge sales tax only on the difference between the price of your trade-in and the vehicle you’re buying, not the full price of the next car.

Get the best rate on your loan

The sellers below let you estimate your monthly car payment so you can shop for vehicles with a bottom-line price in mind. Some sites work with partners who set terms that dealers will honor. Others, such as CarMax and Carvana, have their own financing arms.

Going through the prequalification process is a good way to get a general idea of rates available. If you end up at the dealer, ask if you can get a better deal on financing. Also, check bank and credit union rates. Recently, 60-month used-car loans averaged about 4.2%, according to Bankrate.com.

Five ways to buy

AUTOTRADER.COM/KBB.COM

Autotrader and Kelley Blue Book are both part of Cox Automotive, and there’s little distinction between the websites. With well over a million listings from dealers and private parties, either site is a good place to start your research.

Used-vehicle listings: 1.4 million

Buy from home/delivery: With participating dealers.

Test-drive: Most listings are posted by dealers that require you to visit them; some will come to you, if you are within a certain distance.

Financing: You can get prequalified through Capital One, and participating dealers will honor the terms (for 30 days) and extend the loan.

Sell/trade-in: Negotiate with the dealer as part of the purchase trans­action. Another option is the Kelley Blue Book Instant Cash Offer: Dealers make an offer, good for seven days, to buy your vehicle or for credit toward a trade-in. You choose a participating dealer and drive there.

Returns/warranty: Depends on dealer and state.

TRUECAR.COM

TrueCar’s claim to fame is its Price Reports—a guaranteed price with a breakdown of charges from its network of 16,500 dealers. When it comes to used cars, there’s no TrueCar guaranteed price. But prices are labeled “excellent,” “good” and so on. The site has a pleasing, clean interface (with no ads), but research information and tools are less robust than at KBB or Autotrader.

Used-vehicle listings: 790,000

Buy from home/delivery: With partici­pating dealers.

Test-drive: Most listings are posted by dealers that require you to visit them; some will come to you, if you are within a certain distance.

Financing: Through the dealer.

Sell/trade-in: Negotiate with the dealer, or tap the True Cash Offer: Dealers make an offer, good for three days, to buy or for credit toward a trade-in. You choose a participating dealer and drive there.

Returns/warranty: Depends on dealer and state.

CARMAX

CarMax is the largest U.S. used-car retailer (224 locations) and has offered its no-haggle, low-pressure used-car buying experience since its 1993 debut. Customer satisfaction is generally high, and the company has landed on best-places-to-work lists for years. The cars it sells must pass a 125-plus point inspection and undergo a detailed reconditioning. Prices are Kelley Blue Book suggested retail, which tend to be higher than competitors’ prices.

Used-vehicle listings: 50,000

Buy from home/delivery: Within 60 miles of some stores. Choose a car online and request delivery. A CarMax team member will call to walk you through the steps for buying online and help you complete the documentation.

Test-drive: At CarMax locations, or take the car home for 24 hours (subject to a 150-mile limit).

Financing: Get preapproved online.

Sell/trade-in: Some locations feature an online offer to buy your vehicle, but you may have to go to a CarMax store to get an appraisal.

Returns/warranty: Returns up to 30 days (and 1,500 miles). Warranty is 90 days or 4,000 miles for “major” systems.

CARGURUS.COM

CarGurus has listings from about 40,000 dealers. Search is powered by algorithms that analyze data on millions of car listings, accounting for factors including price, mileage, trim and options, accident history, location and dealer reputation. CarGurus gives each car an overall deal rating, from “great” to “overpriced.” Dealers can’t pay for their cars to get a higher position in search results. Each listing has a dealer star rating, estimated monthly payment, how long the vehicle has been on the lot and price history of the vehicle. Bonus: You can filter vehicles by NHTSA safety rating.

Used-vehicle listings: Not available

Buy from home/delivery: Depends on dealer; typically within 25-mile radius.

Test-drive: Some dealers, typically within 25-mile radius, will bring vehicle to you.

Financing: Get prequalified with one of three lenders, with terms honored for 30 days. When you visit a participating dealer, you fill out a credit application for a loan from the dealer.

Sell/trade-in: At dealers. Or, with CarGurus Pay ($4.95), vetted buyers can find you and set up a test-drive. The tool walks you through the transaction, and funds are direct-deposited into your account.

Returns/warranty: Depends on dealer and state.

CARVANA.COM

Carvana offers no-haggle prices that the company claims are lower because it cuts out the middleman (the dealers) and the costs of a physical location. Vehicles pass a 150-point inspection and have no reported accidents. Vehicles marked “great deal” are priced $1,500 or more below the Kelley Blue Book suggested retail value. All transactions happen online, with delivery to your home. Or you can pick up your car at one of its 24 massive vending machines located mainly in the Midwest and the Southeast.

Used-vehicle listings: 20,000-plus

Buy from home: You buy, they deliver. Or select the pickup option and identify the vehicle vending machine closest to you.

Test-drive: Nope.

Financing: Through Carvana Financing. Get prequalified on the website; terms are honored for 45 days.

Sell/trade-in: Carvana buys late-model vehicles with low mileage. It will send someone to your home to inspect your car and, if it passes, cut a check on the spot.

Returns/warranty: Returns up to seven days (refunds exclude any shipping/delivery charge). Limited warranty covering basic and powertrain components for 100 days or 4,189 miles.

People buy electric cars for all sorts of reasons—a common one is the I’m-so-green statement they make. In our polarized times, that message has met with backlash, even vandalism. But how about this for a reason to buy electric that plays to a fundamental American (and Kiplinger’s) value: They can save you money.

That’s can, not will. You’ll have to align a number of variables to make the savings work. But the potential is there.

So, what are those variables? And what are the cars that fit the bill? And are they anything you’d want to actually, you know, drive? First, let’s recap the qualities of electric cars you can buy now:

■ They all have excellent acceleration. Some are astonishingly fast.

■ They all cost less to operate on a per-mile basis than a similar vehicle with a gas engine.

■ Most cost more, new, than their gas-engine equivalents.

■ Although electrics are not truly “zero pollution,” they are un­questionably greener than gas-powered cars.

■ Models that have greater range (between recharging) cost more money.

That last issue—range—has traditionally been the Achilles heel of the battery-powered electric. The smile you get while zipping about, saving the planet, fades quickly when there’s 10 miles of range left in your battery and you’re not sure where your next charge is coming from. Refueling a gasoline car is about as easy as finding a cup of coffee—you can even get picky about brand and price. Electricity, not so much. Recharging away from home requires thought, even if you’re behind the wheel of a Tesla, which has access to a proprietary charging network. And having to pay more up front for greater range is simply not a thing with a gas car—virtually any one of them can travel farther on a tank of fuel than you can before needing to drain your own.

So, in our quest to make an electric car a money-saving proposition, range is one of the variables. Basically, once you’ve decided what sort of range you’re willing to pay for (100 miles? 200 miles?), you’ve locked in that cost. And that’s also how much money you could have paid for the gas-powered equivalent that will serve as your point of comparison.

Take the Chevrolet Bolt EV, for example. With 259 miles of range, this offering from General Motors is popular and oft recommended. Running the build-and-price option on the Chevy website puts one at $31,995 (reflecting a $6,250 incentive from the company). For comparison purposes, we can stick with Chevrolet. A front-wheel-drive Equinox crossover has the same number of doors and a similar amount of interior space. With an effort to keep trim and options similar to the Bolt, it goes for $28,235 (reflecting a smaller, $3,250 rebate).

That’s a $3,760 premium for the electric. How do you recoup that? By paying less for fuel—er, energy. You’ll probably pay less for maintenance and service, too, in the long run.

When’s the payoff? To figure that out, you need to have a good grasp of the variables we mentioned earlier:

■ The fuel efficiency of your “gas equivalent” (such as the Equinox in our example).

■ How many miles your EV gets per kilowatt/hour.

■ What you pay for electricity at home.

■ Miles driven each year.

Time for some quick arithmetic (there are plenty of calculators available online to help you). For our Bolt-versus-Equinox matchup, using Maryland’s average cost per kilowatt-hour of 13 cents, average $2.33 per gallon gas price (regular) and annual driving of 15,000 miles, the Bolt’s “fuel” cost is $698 lower per year than the Equinox’s. You’d recoup the price premium for the EV in a little over five years.

Are we oversimplifying? A bit. Because very few people are going to pay cash for a five-figure car, you must consider the cost of financing—as well as resale value, insurance and other metrics usually involved in car ownership.

A taxing calculation

One variable that can play significantly to an electric vehicle’s advantage: tax benefits. The big one here is the federal tax credit of up to $7,500 that’s available on many battery-powered electrics.

That’s big money. It’s almost double the difference in sticker price between our two Chevrolets. So why didn’t we use it in our math? Because the tax credit is not available on any GM products—or, for that matter, Teslas. The credit was structured so that only the first 200,000 qualifying vehicles sold by any manufacturer would qualify for the full amount—the goal being to give carmakers an incentive to get started.

Furthermore, that’s a federal tax credit, which means it’s something you have to claim when you file your taxes. It doesn’t come off the price at closing, like a manufacturer’s rebate or money for your trade-in. And while tax credits are powerful stuff, lowering your liability dollar for dollar, the one for an EV isn’t refundable—in other words, it won’t give you back more than you owe. So if you buy a 2020 Hyundai Kona crossover (MSRP $37,190, range 258 miles) and the $7,500 credit you’re eligible for exceeds your total federal tax liability, your tax bill goes to zero. That sounds pretty cool, sure, but it leaves some savings on the table.

Another twist: If you lease—which a number of experts we spoke with recommended as a smart option for an EV, given how quickly the powertrain technology (read: range) is evolving—then the tax credit belongs to the manufacturer, not you. It will probably be factored into your lease payments, according to Green Car Reports, a website aimed at the EV marketplace. Depending on whether you could or could not claim the whole credit based on your own personal finances, this could be a benefit to you.

Also note that there are a variety of state and regional tax rebates and promotions available. Some are straight-out money in your pocket. Check out https://plugstar.com/tools/incentives to see, by zip code, what’s available to you. And some of the state and regional credits are also available on used purchases as well, which is not the case for the big federal tax credit. (For more on used electrics, see below.)

What to buy

Back to the cars: We’ve established a metric to calculate potential savings. We’ve told you that range costs money, and the question of how much is enough is one that only you can answer. Do you commute? Will this be your only car? How are you going to recharge it? At home? Will you need to pay the extra money for a fast charger there?

Generally speaking, then, a modestly priced EV is the right goldilocks call. Sure, you could get into a MINI Cooper Electric Hardtop for less than $30,000, but with only 110 miles of range, this is a Mama Bear bowl of cold porridge. Even a weekend out of town would require planning. The MINI is sort of the last model standing of the first generation of EVs from big manufacturers: a battery-electric drivetrain pasted into a gas-powered platform.

At the other extreme are the mind-blowers like the new Porsche Taycan and most of Tesla’s offerings. Their performance is extraordinary, and their range is substantial. They might ultimately cost less per mile to operate than a gas equivalent, but c’mon. If you’re buying an $80,000-plus car, that’s just a rationalization. Too hot!

In addition to the Bolt and the Hyundai Kona we mentioned, the Kia Nero crossover ($39,090, 239-mile range), the Hyundai Ioniq hatch ($33,045, 170-mile range) and the Nissan LEAF ($32,545, 149 mile range/$39,145 for 226 mile range) all occupy the happy middle ground: decent range at a price that’s around what Americans pay, on average, for a new vehicle (just under $39,000). All are still eligible for the full federal tax credit. The Nissan LEAF is also notable for being in production since 2010, undergoing evolutions that have significantly improved its range and other performance factors. Unlike a number of other early EV efforts, the LEAF was designed as an electric right from the start.

And where is Tesla? Selling a ton of cars, developing a cultlike following (both as a product and as a stock), getting a mountain of press (both good and bad) and generally doing things differently. What they’re not doing—yet—is bringing to market an affordable vehicle. And by that we mean something that you can actually get into for less than the average new car transaction price. The Tesla Model 3, the best-selling electric yet (it displaced the LEAF), is the closest offering. In theory, you can order the most basic version of it, with 263 miles of range, for less than $40,000. But, no $7,500 tax credit here. None.

In September, Tesla CEO Elon Musk discussed having a $25,000 electric on the market in a few years. But then, Musk says a lot of things. Speaking of the future, any discussion of electric cars must include mention of models yet to come: On the horizon, pickup trucks from Tesla, Lordstown Motors and Rivian, and probably Ford and Chevrolet, too. An all-electric GMC Hummer even! Entries from volume manufacturers making a run at Tesla include the Ford Mach-E, a Mustang-inspired crossover SUV starting at $42,895 for 230 miles of range, and the Volvo XC40 Recharge ($53,990, with somewhere north of 200 miles of range; EPA certification hadn’t been completed at press time). Curiously, Volvo is also involved with the Polestar brand, whose pricier, swoopier Polestar 2 shares some architecture with the XC40. VW’s ID.4 crossover looks promising as well. But the world of electrics is fraught with delayed rollouts of “the next Tesla.” Will any save you money? Wouldn’t run the numbers until you can actually touch one.

Are used EVs a deal?

“Buy used” has been a good rule of thumb to save money on a car over the years (though there are exceptions). How well does it apply to electric vehicles?

That depends a bit on your goals. If your interest is in having an electric car because you want an electric car, maybe. If your goal is simply to have a second set of wheels on the cheap, electrics can be a smoking deal (if you’ll pardon the pun).

Either way, you’ve got homework to do. First, just as with buying an electric vehicle new, you have to make peace with the fact that battery-only EVs have their own challenges to go along with their rewards—chief among them the limited range between recharges they offer. Buying used exacerbates that problem, because a used electric isn’t going to have the absolute latest in battery technology (it’s not new, after all) and because the actual battery installed in whatever you’re considering is also used. All those recharge cycles compromise maximum range. (Think about how your phone or laptop behaves over time.)

The other big thing to consider when buying an EV used is that the most rewarding tax incentives and rebates aren’t available. You may be eligible for a federal tax credit worth up to $7,500 on some electric and hybrid vehicles, but not when bought used. State and local incentives might be available for the used shopper (particularly on the home recharging stations you’ll want), but you’ll need to check carefully. We recommend looking at https://plugstar.com/tools/incentives.

But the incentive landscape is one reason that prices on used EVs are so tantalizingly low. You can get into a 2017 Nissan LEAF, for example, for about $10,000. (That’s a huge drop for a car that sold new for more than $30,000.) And that’s just the start of the savings, because you’re now taking ownership of the vehicle at the time when an electric’s lower maintenance and service costs really come into play. A recent study by Consumer Reports found that service and maintenance costs for EVs were half those of gas vehicles over the life of a vehicle (one big reason: they have far fewer moving parts). But during the first three years or so of car ownership, factory-provided warranties and maintenance packages can blur the comparison.

Between that and the fact that using electricity instead of fossil fuels is virtually always going to be more cost-effective, a used electric could be one of the cheapest ways to put reliable wheels under you. Karl Brauer, executive analyst at iSeeCars.com, points to his personal experience with a Fiat 500e. “There’s no cooling system. There’s no oil changing. There’s no transmission servicing. The car has almost no parts that can really break or even need to be serviced. So if you’re looking for a runabout car, with about 50 to 60 miles max daily use, and you have access to an outlet to plug in, you can spend your $8,800 on a used Fiat 500e and essentially drive it around for free, except for insurance. And a slightly increased electric bill every month.”

But while EVs hold a cost advantage in service and maintenance, battery life remains a worry for buyers, in part because the degree of deterioration (which would reduce range) is hard to determine. Manufacturers have the tools to test battery condition, but these devices are expensive and generally out of reach for independent resellers or the local mechanic you’d look to for a pre-purchase inspection of any used car.

Ronald Montoya, senior consumer advice editor at Edmunds.com, has written extensively about the pros and cons of used EVs. His counsel: Have faith in the long warranties (at least eight years or 100,000 miles) that cover EVs’ battery and powertrain systems. “I think the easiest thing I could say is, the newer, the better,” he says. “So don’t find something that’s five years old. Try to stick with maybe a two- to three-year-old vehicle. That would be the sweet spot.”

Problems with car dealers, home contractors and retailers topped the list of consumer complaints in 2019, according to an annual survey by Consumer Federation of America (CFA). The survey, which included 31 state and local agencies from 19 states, asked about the most common, fastest-growing, worst and newest complaints agencies fielded last year. Here are the top five complaints. For the full list, go to consumerfed.org.

1. Auto: Misrepresentations in advertising or sales of new and used cars; deceptive financing practices; defective vehicles; faulty repairs; car leasing and rental problems; towing disputes.

2. Home Improvement/Construction: Shoddy work; failure to start or complete a job; failure to have required licensing or registration.

3. Retail Sales: False advertising and other deceptive practices; defective merchandise; problems with rebates, coupons, gift cards and gift certificates; failure to deliver.

4. Landlord/Tenant: Unhealthy or unsafe conditions; failure to make repairs or provide promised amenities; deposit and rent disputes; illegal eviction tactics.

5. Credit/Debt: Billing and fee disputes; mortgage problems; credit repair and debt relief services; predatory lending; illegal or abusive debt-collection tactics.

When Michael Lowe turned 50 this year, he bought a new Subaru Forester that he expects to drive for the next decade. As a result, he thought ahead to how his mobility might change and realized bending over was proving to be more of a challenge.

“Carrying grocery bags from the car to the house has become a little more difficult the last few years, mainly due to the bending over and reaching down in the trunk,” says Lowe, who lives in Phoenix. “My new car has a raised trunk and seats so I don’t stoop to pick up any goods or groceries anymore. It’s helpful now but will be vital in a few years.”

Choosing the right car is never easy, but older buyers have the added problem of trying to anticipate how changes in lifestyle and health might affect the kind of vehicle they will need over time. Traditionally, August is when car buyers can expect bargains from dealers clearing out old inventory to make room for next year’s models, but this year, the pandemic and recession have upended things. Some dealers still have unsold 2019 models, even as they’re trying to unload 2020 vehicles to make room for 2021 models.

“The ’19s are going to be anvils sitting around on the dealer lots,” says Karl Brauer, executive publisher for Autotrader and Kelley Blue Book, in Irvine, Calif.

For newer models, the deals will be hard to find as dealers hold the line on price. With sinking demand and shuttered factories during the spring, May inventory fell to the lowest point in 18 months, leaving fewer new cars on dealers’ lots.

Evolution of Use

If you’re in your 50s or 60s, your next car may see you through some big changes, from full-time work to retirement or from athleticism to arthritis. So think about how your use of the car might evolve over the life of your ownership. Along with features like passenger capacity, fuel economy, comfort and storage space, consider the ease with which you can park and get in and out of the car.

Are you a new or expectant grandparent who plans to install a child’s car seat? Do you have older relatives or friends who need more leg room? Will you be driving long distances? Do you have back, hip or other health issues that could affect your use and comfort in the car now and in the future?

“If something is somewhat of an issue, it could get worse as time goes on,” says Jessica Caldwell, executive director of insights at Edmunds, a car-shopping resource, based in Santa Monica, Calif.

When Caldwell’s mother bought a car, she prioritized cargo space for a walker and a trailer hitch for attaching her electric scooter. “My mother is only 63. These mobility issues came on fast and furious,” Caldwell says. Her mother got the trailer hitch and something more important: a car with a door that opens wide, making it easier to get into the vehicle.

Test drive whenever possible to gauge comfort and ease of use. “Seat comfort is hugely important, more so than ever once you get to a certain stage in your life,” Brauer says. “You want to be able to drive without worrying about lack of support.” The Goldilocks car seat is one that’s not too squishy and unsupportive, but not so snug that it’s difficult to slide in and out. “You want to be able to drive a long distance without specific components or aspects of the seat impinging on your comfort,” Brauer says.

The same goes for choosing between a sedan and an SUV. Depending on your height and the ingress of the vehicle, some sedans may seem too short and some SUVs will be too tall.

Pay attention to the interior control panels and labels. The larger, clearer and more legible they are, the better. “Some cars have more complex and busy control interfaces versus simple straightforward knobs, big buttons and displays that are easier to figure out and read,” Brauer says.

As you age, your range of motion can become more limited. Some vehicle features, like a backup camera or blind spot detection, can compensate so that you don’t need to turn your upper body to look for obstacles.

Safety Features

Backup cameras also improve safety, which older drivers often take more seriously. Lowe, for example, wanted a car with adaptive cruise control that would keep the car at a safe distance from other vehicles on the highway despite changing traffic speed.

“I’ve noticed my reactions slowing a little over the last few years,” he says. “This gives me peace of mind of reacting too late to a decelerating car.”

Before John Zimmerman turned 60, he shopped for cars based on style. Now that the retired county government official is 64, safety matters more, especially with all the driving he’s doing. Between helping with his brother’s furniture business and assisting his elderly parents, Zimmerman drives twice as many miles now than he did before he retired. And sometimes he carries precious cargo—his grandkids, ages 1 and 3.

Last year, he bought a 2019 Honda CR-V, a midsize SUV with a wide body, providing easy access to two children’s car seats, and automatic emergency braking, blind spot monitoring, rear cross-traffic alert and adaptive cruise control.

“It has all the nice features that an older driver would want,” says Zimmerman, who lives in New Brunswick, N.J. The rear cross-traffic alert is especially helpful when backing out of a parking space. “In a supermarket or mall, it’s hard to see cars zipping past you,” he says.

Of course, the newest computerized features can take some getting used to. Be sure you understand how they work on a prospective vehicle. “A little bit of awareness can reduce confusion,” Brauer says.

For example, lane-keeping assist forces a car to stay within its lane, unless you signal. Drivers who don’t understand this feature may think there’s something wrong with the car, because it feels like the steering wheel’s pulling out of your hands.

Not all safety features are high-tech. For Zimmerman, the height of his new CRV gives him a better view of the road compared with the Hyundai Sonata he previously owned.

“It was a nice four-door midsize car, but it was low to the ground and it was hard for my passengers to get in and out,” he says about his last vehicle. His in-laws who are in their 90s find the new SUV to be a more manageable height.

Zimmerman originally looked at the Toyota RAV-4, but the model had just been redesigned in 2019. “I’m always leery of buying a car the first model year they redesigned it because it seems like they have bugs they need to get out of it,” he says.

Getting a Good Deal

With the economy likely to continue struggling for some time, an older buyer in a position to make an offer should still negotiate.

“Older drivers often have better credit, so they’re apt to take advantage of 0% financing and leasing offers,” Caldwell says. But deals on financing are getting scarcer, though Caldwell remains optimistic. “The incentives have to stay because a lot of people are not in that place to buy,” she says.

Once you know what you want, cast a wide net to find the best deal, and if the features are similar, consider buying an older model, which dealers will be more eager to unload.

“If there’s a ’19 of exactly what you want, color and everything, you can negotiate hard,” says Brauer. Keep in mind that sedans may be more plentiful than pickup trucks and SUVs, which had lower inventories earlier this summer.

If the dealer with the best price is a long drive away, ask if the car can be delivered to you. Many dealers are offering free touchless delivery during the pandemic.

Saving money on a used car is about more than spending as little as possible on the car itself. You want to get a good deal, and that means getting the right car that meets (and will continue to meet) your needs.

Those needs vary as much as individuals (and cars!), so we're not wading into which used car to buy, but, rather, tips and techniques that can help you save money when shopping for a used car.

“Used car” sounds cheap, right? (That’s why dealers prefer to say “previously owned.”) But the fact of the matter is, when you consider the total cost to own (especially the cost of financing), for some models, it can make more sense to buy one new rather than a few years used.

Broadly speaking, this is the case for lower-cost, popular models such as the Honda Civic, Jeep Wrangler or Toyota Tacoma. It’s not the case for most luxury vehicles, where depreciation is more severe. Read more about this phenomenon here, and be sure to use powerful shopping tools from Edmunds and State Farm to really get into the numbers if you’re comparing new to recently used.

The new-is-cheaper-than-used phenomenon only works (when it works at all) when comparing a new car to a lightly used (3 or fewer years) model that’s being financed. If your goal is wheels, and you’re willing to pass up the latest safety technology, then a car 7 or more years old will get you a ride with years and miles to go — at a four-figure cost.

“I think the sweet spot for the non-enthusiast is buying a 7- to 11-year-old car that has been conservatively driven and has an excellent maintenance history,” says Steven Lang, a writer, used-car trader, and general automotive savant who runs a website called Dashboard Light. “You can keep that type of well-kept $4k to $7k car for about five to seven years. Sell it for $2000 to $3500 during tax season (mid-February to late-May), and repeat the cycle.

“Spending $2000 to $3500 every five to seven years for your transportation beats the living daylights out of a $30,000 loss over 84 months," Lang adds. "Or, a $15,000 lease loss every three years.”

Not every used car out there will provide the sort of value proposition Lang is touting. This is where questions of “what car” and “what sort of life did it lead?” come in to play.

To make sure that the older car you’re considering is less likely to need expensive repairs that will undo the savings, time to hit the books. Consumer Reports is, of course, a great resource, with its user-driven data on reliability (but you’ll need a subscription). J.D. Power’s annual reliability ratings also have value, even though they’re targeted to cars only 3 years old. Lang’s Dashboard Light site offers a used-car quality index, specifically aimed at older cars, scoring them for the likelihood of powertrain issues (engine or transmission).

Once you’ve targeted a particular model or models, you also need to know something about the back story (ownership, maintenance) of the particular used cars you’re looking at. A history report (like one from CARFAX or Auto Check) is a must, and most used-car dealers will provide one. If you’re buying from a private party, you might need to pay for it yourself (about $40) or convince the prospective seller that it’s a smart idea for the both of you. That said, a CARFAX is not scripture. An evaluation by an independent mechanic of your prospective purchase ($100-$150) is still almost always a must.

If that “reliability-first” guidance for saving on a used car sounds like the path to a Honda Accord or Toyota Camry, you’re not wrong. But for some, those safe, vanilla options lack spice, and the massive depreciation hit that many luxury European brands take in their first three to five years out can make a used Audi or BMW look tempting. But one big reason behind that depreciation: They can be brutally expensive to repair.

The solution to making one of these value traps a better proposition, says Ivan Drury, senior manager of industry analysis for Edmunds.com, is to spring for an extended warranty. The quality of these extended warranties (which are basically an insurance product) vary widely, and your best bet is one offered by the manufacturer on a car that’s been through the certified previously owned (CPO) process.

Another interesting option to get something flashy is to buy from CarMax and get coverage from its MaxCare warranty program (which gives you access to a broad range of repair shops). A retired CIA officer in Virginia named Chuck Banks has built the Carmax Unicorn Blog based around this strategy (which he’s followed himself). The goal: finding cars that are “unusual, reasonably priced, reasonable mileage, and in no way affordable new, and that with the MaxCare warranty ordinary-but-not-rich car guys like me could afford to drive."

Car pricing guides have been around for a long, long time (that’s why people use the term “book value" — because it used to be printed). Today, there are many, many players in this field, offering their judgment on used car values — and whether a deal is a good one or not.

It probably won’t surprise you to know that their values may vary, even for vehicles so common they border on being a commodity, like a Toyota Camry or Ford F-150. The answer is (sorry) more research: Go beyond the guides to check out what a particular model is actually selling for in listings at Edmunds, Kelly Blue Book (KBB), CarGurus, iSeeCars.com, Autotrader and others.

Look at dealer listings yourself, even if they’re a bit farther away than you’re willing to travel, while remembering they’re posting the asking price, not what it would ultimately sell for. You’ll want to build a little spreadsheet to keep track of the values (and compute averages or even fancier calculations). A buyer who can prove to the seller that nobody is paying the book value can negotiate a better deal.

Most people will have to pay a higher rate to finance a used car than a new one; that’s one of the big reasons a new car can sometimes be cheaper than a late-model used one, assuming you’ll owe money on the car the whole time you own it.

The obvious solution that money-smart buyers favor is: Don’t finance; pay cash. But that’s a big stretch for many people.

Before you go to a dealer, check into what sort of financing you could get from your own bank or credit union — and get pre-approved. This serves several purposes:

• Helping you understand what you can afford, so you don’t buy “too much car”
• Familiarizing you with current rates and loan lengths (beware longer loans that keep payments low but raise the lifetime cost of the car)
• Let you simplify negotiations with the dealer: You’re there to discuss the price of a car, not your monthly note.

How one goes about buying a used car is at least as personal a choice as what car to buy. For every person convinced he or she is a master negotiator who’s going to get a "steal,” there’s someone for whom the no-haggle approach is the way to go.

Used-car superstore CarMax is a very popular no-haggle option for late-model used cars. The brand has earned devoted fans — and grumbles about low valuations on trade-ins. Online vendors Carvana and Vroom are also no-haggle options.

But if the price is not explicitly no-haggle, then haggle you must if your goal is saving money — and it is. Do your research on price, and always be ready to walk away from a deal.

The car rental industry buys a lot of cars new, and then, after a year or so, sells them. Some go to auction and end up in the used car marketplace, but others (the rental companies will tell you they’re the pick of the litter) are sold directly to the public by all the major car rental brands. And the prices (generally no-haggle) are often quite good.

The usual concern: It’s been in the hands of a bunch of people who didn’t own it — and drove it accordingly. Among the counter arguments: Most people really aren’t abusive of rental cars, they’re carefully maintained, and body damage is usually repaired quickly (in part because rental agencies are quite good at putting the cost of that on the offending renter). The usual caveats of getting a history report and an independent mechanical evaluation still apply. Read more about the process here.

Ryan Ermey: I spent weeks crunching numbers to rank online brokerages and in the end fractions of a point separated our winner from the second and third place finishers. The truth is every brokerage has something to offer, depending on what kind of investor you are.

• Episode Length: 00:28:45
• Links and resources mentioned in this episode
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Ryan Ermey: Sandy and I break things down in our main segment. On today's show we talk shopping for a new car over Labor Day weekend and reexamine and update some of our previous advice. That's all ahead on this episode of Your Money's Worth. Stick around.

Ryan Ermey: Welcome to Your Money's Worth. I'm Kiplinger's Associate Editor, Ryan Ermey, joined as always by Senior Editor Sandy Block. Sandy, how are you feeling today? Hopefully better than I am.

Sandy Block: I know I'm feeling better than you are Ryan.

Ryan Ermey: Yeah, a little under the weather here. I have caught a cold that, you know, has been going around our office, going around my roommate's office or my dad's office and just seemingly everywhere. I'm sounding like my... I'm reminding myself I sound like my mother, who... My mother has never actually caught a cold, you know. In my mom's world someone always gives you-

Ryan Ermey: It was somebody else's fault.

Ryan Ermey: ... gives you a cold. She's like the Columbo of germs. It's like where were you 48 hours before the symptoms broke out? Who is responsible?

Ryan Ermey: So the thing that we want to talk about in the opening segment here, Labor Day is coming up and you've likely seen or heard ads for Labor Day car sales, and the reason is consumers can find discounts on 2019 models on the holiday because it's the... Labor Day is traditionally the end of the model year.

Sandy Block: Right. Right.

Ryan Ermey: So a quick caveat from our friends at Consumer Reports, that buying a 2019 car now means that it will have accelerated depreciation.

Sandy Block: Right, because cars start losing value the minute you drive them off the lot. That's the case always with those kind of things.

Ryan Ermey: Right. But if you plan on buying it and owning it for a while you can find good discounts on Labor Day. Among Consumer Reports' list of favorite car discounts, they range from about $2,900 to about $6,000 off of the MSRP.

Sandy Block: That's pretty good.

Ryan Ermey: Now the sort of drawback to buying a new car, because we've discussed buying like Christmas gift cards on the show.

Sandy Block: That's right. The big bow.

Ryan Ermey: Right, and probably why you shouldn't do it. The drawback to buying a new car in general is that you can't use the newfangled online only model that you can use for used cars.

Sandy Block: Uh-huh (affirmative). You actually have to go down and talk to somebody.

Ryan Ermey: Eventually.

Sandy Block: Yeah.

Ryan Ermey: Eventually. In theory... So like for used cars there's Carmax, there's Vroom, there's Carvana. You can basically pick a car online, line up the financing, have it delivered to your doorstep. In theory you can do that with a new car, buy a new car online, but you have to have actual signatures on paper. Even if you use some of the services, you're still going to have to go down there and talk to somebody.

Sandy Block: Who really wants to sell you a car today.

Ryan Ermey: Who's a more sophisticated negotiator than you probably are, or certainly than I am, which is why we've traditionally recommended using a car buying service.

Sandy Block: Right. The big player in the car buying service is TrueCar. If you use a car buying service from Consumer Reports, AAA, GEICO or Sam's Club, that's what you're using. You're using TrueCar.

Ryan Ermey: Right.

Sandy Block: You pick out the car, put in your information, and you get prices on dozens of models near you, so this certainly saves you from driving all around your metro area and encountering many sales people who want to sell you a car today.

Ryan Ermey: But as our colleague, David Muhlbaum, notes you're still going to get calls and emails from reps for dealers in the area. Another sort of longtime car buying service that we've recommended at Kiplinger's for a long time is CarBargains, which claims to save you hundreds over TrueCar's prices. You pay $250 upfront, they promise you at least five bids from dealers near you.

Ryan Ermey: It's run by Consumers Checkbook, which is a non-profit organization. It pits dealers against one another to drive the price down. The problem is it is going to be a little bit wonky. You're going to get a big PDF file and worksheets, and you're supposed to print them and mark them... I mean do you even have a printer? I don't have a printer in my house.

Sandy Block: It doesn't ever work. Yeah.

Ryan Ermey: And you're still going to have to then take a pencil and worksheet into the dealer to get your bid. So new or used, the real struggle to land a good deal on a vehicle is often in the quote-unquote F&I office, the finance and insurance office.

Sandy Block: Right.

Ryan Ermey: Our fearless leader, Mark Solheim, who's a bit of a car guy himself, mentioned in a piece that he wrote recently that the dealership makes much more margin on this part of the business than it does actually selling the cars.

Sandy Block: Uh-huh (affirmative). Yeah. Exactly.

Ryan Ermey: So in other words, if you're going to use the buyer service you're still going to have to go in to the F&I office prepared to say no thank you a bunch when you offer you all the extras.

Sandy Block: Right. Right. Exactly. And you don't even have to finance it through them, even though they will, you know, strongly encourage you to do so. Oftentimes you can get a better deal on a car loan from your credit union or your bank, and right now interest rates are low and going lower, so I would definitely think it's a good idea to shop around. I don't know that the car dealer is going to offer you the best deal.

Ryan Ermey: And even if you do take the deal at the dealership in terms of financing, one extremely important thing to negotiate when you're in that F&I room is to be able to prepay your loan without penalty.

Sandy Block: Right. And one other thing I want to add, particularly with respect to buying a new car, and I think we've written about this before, is that sometimes the dealer will try and make the deal look more affordable by extending the length of the loan, say five years or more.

Sandy Block: You could end up being upside down on your car. Say you get a five year loan and then you drive the car off the lot, and remember it starts depreciating... The minute you put your foot on the metal the car starts to lose value.

Ryan Ermey: That's right.

Sandy Block: You wreck that car early on in your ownership, you could end up owing more on the car than it's worth, so be really careful about these longterm loans, because they can turn bad on you.

Sandy Block: That's right. If you're going to be buying a new car on Labor Day, using a car buying service can take a lot of the stress and headache out of the experience, but still be ready to go into the dealership firm and ready to negotiate and see what financing options are available to you.

Ryan Ermey: Coming up, find out which brokerage tops our annual ranking and which one might be best for you.

Ryan Ermey: We are back and in lieu of a special guest today Sandy is going to be asking me about something that I've been working on for really I mean the better part of two months of spreadsheet madness.

Sandy Block: Two months you're never getting back.

Ryan Ermey: Yeah. Well, you know, two months that are going to hopefully benefit our readers and listeners immeasurably. So I undertook this project, it's in the October issue of Kiplinger's. It also is going live... Will have gone live online on Aug. 22. So go check it out. It's the online brokerage rankings, and, Sandy, what do you want to know?

Sandy Block: Well, I know how hard you worked on this Ryan. I had a front row seat to that. So I guess my first question is one thing that we've written about a lot in Kiplinger's is how much the cost of investing has dropped. I think you said the cost of trading stocks or ETFs is less than the cost of a side salad?

Ryan Ermey: That's right.

Sandy Block: So given that everything is cheap, what are the online brokerage doing to stand out?

Ryan Ermey: So yeah, the cost of a side salad. The most expensive brokerage on our list charges a commission of less than $7 for a trade. You think back in the day, people were paying double digits per trade, and they've been going down steadily over the last several years.

Ryan Ermey: But ultimately you can't beat free, which is what Firstrade is offering. They charge no commission to trade stock, ETFs, mutual funds or options. But a couple other brokerages offer good deals. It should be said that Merrill Edge will give you, depending on how much money you have combined in assets in a Merrill Edge account and in a linked bank account... You have to sign up for their Preferred Awards Program, you can get from 10 to 100 free trades per month. They just recently lowered the asset threshold for that, so something like 80% of trades on their platform are now made commission free.

Ryan Ermey: A couple of new entrants into the broker survey this year, TradeStation and Interactive Brokers, those are both geared toward active traders specifically. So if you are an extremely high volume trader, someone who's constantly or perhaps automatically trading using an algorithm, they can charge as little as fractions of a cent per share.

Sandy Block: Okay. Great. So it doesn't cost very much, but that doesn't matter if they don't have anything that you want to buy.

Ryan Ermey: Yes.

Sandy Block: What about investment choices? How important is that in choosing an online broker and what should you look for?

Ryan Ermey: There are certain fundamental things that our readers are looking for, that investors want, and one of these things is no transaction fee mutual funds, which are mutual funds that can be purchased without paying a sales charge or a transaction fee, and they want commission free ETFs.

Ryan Ermey: know, all of their ETFs are commission free. In terms of NTF mutual funds, no transaction fee mutual funds, Schwab, E*Trade, Fidelity, Interactive Brokers, TD Ameritrade, they're all in about that 4,000 range in terms of mutual funds that are offered this way on their platforms.

Ryan Ermey: The couple things that stand out there, E*Trade has the highest percentage of no transaction fee funds that have three star ratings or better from Morningstar.

Sandy Block: That's good. Okay.

Ryan Ermey: Which means that they just have the... You know, of the funds that they offer on their NTF roster, they just have the highest quality.

Sandy Block: Not a bunch of junk. Yeah, that's good.

Ryan Ermey: And Fidelity also stands out here, because they offer four funds that have zero percent expense ratios and no minimums to go along with... You know, they have 27 funds in total, including those four, that don't have an investing minimum, which is really important for cost conscious investors.

Sandy Block: That's right. You gave more weight this year to the firms' mobile apps. Why did you do that, and what did you look at when you were evaluating the apps?

Ryan Ermey: So we talked to representatives from all of the brokers in our survey. They come and they give presentations. We talk to them over the phone. We do webinars, whatever, to try to get a sense of what is important to their clients and how they're responding to it, and nearly all of them indicate that their clients are demanding to do more and more of their business on the go, so mobile investing, mobile brokerage capabilities, have become more important than ever.

Ryan Ermey: The way that we measure our scoring for the mobile category, which is one of seven categories that we include in our rankings, which takes up 25% of the total ranking, is based... It's not like a beauty contest. It's based on the number of functionalities actually offered on the mobile platforms, including being able to pay bills from a brokerage account, being able to deposit checks into your brokerage account by taking a picture using the app, and of course stock, bonds, mutual funds and ETF trading.

Ryan Ermey: A lot of the brokerages came pretty close in this category. Fidelity, E*Trade, a lot of them, did well, but Interactive Brokers really came the closest to checking all of the boxes, and they're the only ones that offer stock, bond, mutual fund and ETF trading on the mobile app.

Sandy Block: Okay. So that's the one you want if you want to do your business on your phone. I know that online brokerages are for the do-it-yourself crowd.

Ryan Ermey: Yeah.

Sandy Block: But maybe you want a little more handholding or advice. What should you look for and what firms stand out in that category?

Ryan Ermey: We definitely still gear our advisory rankings toward the DIY investor. We want there to be a low cost and a low barrier to entry to have portfolios created for you and for your financial plan that go along with your tolerance for risk and your sort of overall investing picture.

Ryan Ermey: So we favored firms that have really good, low cost robos which use an algorithm to create a portfolio for you that matches your goals. Schwab is the number one scorer in the category. They have a $5,000 minimum to open their basic robo account, but after that it gets really cheap.

Ryan Ermey: So investors don't have to pay a management fee to be in one of Schwab's 36 different portfolios, and expense ratios on those portfolios range as low as 0.08%. Fidelity scores highly on this category as well because of the low barrier to entry. You only need $10 to open a Fidelity Go account. That's the name of their robo advisory, and they have a .35% management fee that includes expense ratios on the underlying funds.

Sandy Block: So, Ryan, it was close, but your overall winner was E*Trade. What gave it the edge?

Ryan Ermey: You know it was really an all around performance from E*Trade. Of the seven categories, six different brokerages took first place, and E*Trade didn't take first place in any of them, but it scores highly across the board, is what this ranking is ultimately about. There's all kinds of different investors with all sorts of different needs. Ranking brokers like this is a way to try to home in on the ones that offer the most things to the most kind of investors.

Ryan Ermey: So in E*Trade's case, they scored really highly for user experience. Me and the other investing writers all test drove the websites and the apps. We thought that E*Trade's platform was simple and intuitive and powerful. They have a robust list of high quality, low cost investment options, and their robo advisory... As well as their quote-unquote hybrid robo advisory, which involves an algorithm driven investment plan that is then overseen by a real life advisor who you can interact with, it's a really good option at E*Trade as well.

Ryan Ermey: And all of those things are affordable there, so they really just submitted a consistent performance and that's why they came out on top.

Sandy Block: So, Ryan, my last question, one thing that really strikes me about your findings is that unlike not all that long ago it's really possible for somebody with not a lot of money to open one of these accounts, they're so low and the costs are low. So if you wanted to just dip your toe in the water and learn about investing there are... You know, this is a great guide on how to do it. So let's say you are a beginner. What is your best option for a beginning investor?

Ryan Ermey: There are a lot of brokerages that offer a lot of good investor education. TD Ameritrade comes in highly on that one, but my favorite one for beginners is Merrill Edge, because they really... So first of all they are a top user experience brokerage. Everything about their platform is really easy to use, because in talking to them they really wanted to gear their platform to educating all different kinds of investors and really holding their hands and walking them down the path.

Ryan Ermey: This is really plain when you look at their various... They call them story modes. So like if you're researching a stock on one of Merrill Edge's platforms, you can enter the stock story mode and it will ask you all of these very sort of basic questions rhetorically about a stock. What kind of business is this? What do analysts think of it? And in each case... And this is true of finding investments, but also there's a portfolio story, so they'll analyze your portfolio and ask, you know, what sort of questions should you be asking yourself about your own investing picture.

Ryan Ermey: And in each case they give plain language, actionable advice that you can enact directly on the platform. So I recommend Merrill Edge for anyone who wants to learn more about investing in a very user friend, intuitive way.

Sandy Block: That's great Ryan. So anyone who wants... Whether you're a beginner or an experienced investor you should check out our website, Kiplinger.com, for our online broker rankings starting Aug. 22, and it will also be in our October issue on newsstands near you.

Ryan Ermey: Stay tuned after the break for an update on the Equifax settlement and the Earnin app.

Ryan Ermey: We're back, and before we go a sort of new flavor of segment here. We haven't come up with a special name for it yet, but one in which that we both want to revisit something that we've talked about in the third segment here in the past, possibly because some new information has emerged.

Sandy Block: Right. What I'd like to revisit is the Equifax settlement which we talked about a couple of weeks ago with our colleague, Lisa Gerstner. You may recall that Equifax offered a $700 million settlement to people who were affected by the massive data breach a couple of years ago. We did the math on this in our October issue. You may have read that Equifax offered $125 to people who set up credit monitoring.

Ryan Ermey: Yes.

Sandy Block: We suspect that money is already pretty much gone. Equifax only set aside $31 million for the payment pool, and if you want to do the math on that it works out to 248,000 people if the class action members receive the full $125. That's less than one-fifth of 1% of the 147 million people swept up in the Equifax breach.

Ryan Ermey: Geez.

Sandy Block: To put that even more in context, in the first week that the settlement was announced more than 4.5 million people visited the official settlement website, so you're probably not going to get $125 or even $25 out of this. You may be eligible, and we explained this in our October story, for some reimbursement if you were affected, if you spent money protecting yourself, and we lay that out.

Sandy Block: The other thing I wanted to update listeners on is to be very wary of scams. When you get a settlement of this size people come out of the woodwork, and the FTC has warned people about lookalike websites that say that they will give you the $125. Things to watch out for is you should never have to pay to file a claim. I guess some of these people are telling people if you give me some money, we'll give you the $125.

Ryan Ermey: Yeah, that's what I was-

Sandy Block: And just in general, anyone who calls or reaches out to you and says they'll help you get your money is a scammer, because Equifax isn't doing that, I mean to the extent that you'll get any money at all, you have to go get it.

Sandy Block: So the final thing I'll say is just to be extra safe. If you want to learn more about the breach and what's available go to ftc.gov/equifax and enter it through there. That's the safe way. That way you won't get caught up in some website where they maybe transpose two letters to get you in or something like that. So, Ryan, what do you have to update us on?

Ryan Ermey: Something that we talked about in the early days of the podcast I think... I didn't go back and check the date, but I was curious about a commercial I had been... Several commercials I had been seeing for an app called Earnin. You'll recall that the commercials are like a guy behind the camera going like, "Hey, man, how are you paying for gas if your payday isn't till Friday?"

Ryan Ermey: So what the app does it gives you loans against your paycheck, and they claim that it's all based on tips, so you don't pay interest. You have an optional tip that you can give... You know, it pays forward to other people-

Sandy Block: Right. Their argument was that they are not a payday lender. They are better than that, right?

Ryan Ermey: And now they're being investigated for possibly being a payday lender. At the time I called it a deal with a lot of caveats, and now I tend to think that the caveats outweigh the potential deal.

Ryan Ermey: So what's happening? The New York Department of Financial Services is leading a probe, along with 10 other 10 state banking regulators and Puerto Rico, which includes a number of these online lenders, Earnin included. The deal is that there's a suggested tip, right?

Ryan Ermey: And the suggested tip... At least what the New York Post reported, that the app suggested a tip of $9 for a $100 one-week loan, a one-week advance, which works out to some 469% APR.

Sandy Block: Payday lenders are loving it.

Ryan Ermey: Right. Then they say well, it's optional. You don't have to do it, but if you don't do it then they introduce caps on how much you can withdraw per pay period, so it's in this sort of murky area.

Ryan Ermey: The other thing that started coming up was that the app was occasionally glitching, which is a big problem for people who are using these advances to make sure they don't overdraft their accounts, which can come with humongous fees. So it's a big deal if you're supposed to get your money immediately and instead it takes like two weeks.

Sandy Block: Right.

Ryan Ermey: You might as well be waiting for your paycheck at that point. So it's just something that is really worth watching out for. I wouldn't use it until the investigation is over.

Sandy Block: I think the larger issue is if you're like this guy in the commercial and you don't have money for gas and you're not getting paid for a week, you have larger issues than this will solve and you have to really start looking at your cash flow, your living expenses.

Sandy Block: The problem with payday loans is the same thing that will happen if anybody becomes reliant on Earnin, is that you never have enough. You're always having to borrow more because you are living beyond your means.

Ryan Ermey: Right. Borrowing from Peter to pay Paul.

Sandy Block: Right. Right. Exactly. So you've got a larger issue than this product even if it didn't have all these problems to solve.

Ryan Ermey: Yeah. The advice here is... When we talked to our friend Pam Capalad at Brunch & Budget, budgeting is something that we cover all the time, but... In the magazine anyway, and we've done a little bit on the podcast, but it's about creating a budget that you can stick to, building an emergency fund in case you come up against it, and not putting yourself in a position where you need an advance on your paycheck, whether Earnin is on the up-and-up or not.

Ryan Ermey: That's it for this episode of Your Money's Worth. For show notes and more great Kiplinger content on the topics we discussed on today's show visit kiplinger.com/links/podcasts. You can stay connected with us on Twitter at Kiplinger, on Facebook at facebook.com/kiplingerpersonalfinance, or by emailing us at podcast@kiplinger.com.

Ryan Ermey: And if you like the show, please remember to rate, review and subscribe to Your Money's Worth wherever you get your podcasts. Thanks for listening.

Links and resources mentioned in this episode

• New-Car Shopping for the Introvert: Still a Hassle
• Car Buying Is Stressful
• Best Online Brokers, 2019
• How to Pick the Online Broker That’s Best for You
• A Payday Lender in Disguise? New York Investigates the Earnin App
• Early Wage Apps Are a Little Too Much Like Payday Loans
• Equifax Data Breach Settlement: What You Need to Know

Shopping for a used car? Want it to be as safe as possible? Here’s the hitch: The absolute safest vehicle is almost always a brand-new model.

Each year, the latest cars boast more-effective active safety systems (such as automatic braking) as carmakers look to match evolving testing standards from the Insurance Institute for Highway Safety (IIHS). Newer models also often have invisible structural improvements to aid performance in tests meant to closely simulate real-world collisions (such as hitting a utility pole). Headlight technology is advancing as well. So newer, and thus more expensive, generally means safer.

Don’t despair, though. Many of these features are available on vehicles selling for $10,000 to $20,000. We worked with IIHS’s annual rankings and value data from CarGurus.com to identify the safest models in that price range. Our quest was safety first, but not safety only: We looked for cars that enjoy good reputations for reliability and are popular choices in their segments. Take a look.

• Model year: 2016
• Used price: $18,283 (Limited AWD)

Small SUVs get all the attention (and sales) these days as Americans abandon sedans for a few inches of ride height and the convenience of a hatchback. That popularity means they don’t tend to depreciate as quickly in the used market; our top choice flirts with our price limit, and while we also would have liked to include the popular (and safe!) Honda CR-V, it’s just too pricey.

A used 2016 Hyundai Tucson is probably the most crashworthy small SUV you can put yourself in with up to $20,000 to spend. The Tucson passes the IIHS’s demanding small-offset test, which forces a much smaller part of the car’s structure to dissipate crash energy (imagine hitting a wall with just the corner of your car), for both driver and passenger. Among the category competitors the Tucson surpasses in this test are the 2016 Toyota RAV4 and the 2016 Subaru Forester.

We’re talking crashworthiness here: how well the car’s structure, air bags and seatbelts work together to protect the occupants in a collision. Any Tucson from 2016 forward meets that standard, and many are available for well under $20,000. The same goes for the Kia Sportage, built on the same platform, for models starting in 2017.

But as we mentioned, the IIHS also considers collision avoidance (systems that can slow or even stop a car if there’s an obstruction ahead) and headlight performance. You’ll find Hyundai’s automatic emergency braking on Tucsons with the Ultimate trim level, and the best headlights on Limited or higher trim.

• Model years: 2016-2018
• Used price: $18,315 (2017 Grand Touring AWD)

The smallest of Mazda’s SUV line, the CX-3 scores impressively for crashworthiness and collision avoidance and rates “acceptable” for headlights (if you get the i-ACTIVSENSE package). You can buy one fully loaded for less than $20,000. However, it’s tiny--roughly 600 pounds lighter than the Tucson. As the IIHS notes, “Larger, heavier vehicles generally afford more protection than smaller, lighter ones.” Since the laws of physics still apply, that’s something to keep in mind.

• Model years: 2003-2014
• Used price: $13,740 (2013 3.2 FWD), $17,086 (2013 3.2 R-Design Platinum AWD)

The IIHS has separate categories for midsize SUVs, midsize luxury SUVs and large SUVs. We searched all of these with our own standard: only models with three rows. Finding one of these big boys under $20,000 wasn’t easy. Models that feature the collision-avoidance technology and fancy headlights that the IIHS gives weight to in recent years usually cost substantially more.

Pulling up in a 2013 Volvo XC90 will reassure the other parents in the soccer carpool that you’re putting safety first; crash tests still support the Swedish brand’s reputation. It was rated “good” for the driver’s side small-overlap test (the passenger wasn’t tested). Notably, this test rating extends all the way back to this model’s introduction in 2003, so you can shop way back if you want to save some money without sacrificing any crashworthiness. On the other hand, newer, high-trim models are more likely to feature projector headlights. While the IIHS didn’t actually test XC90 headlight performance, we think it’s a fair bet to extrapolate from other results that the projectors are likely to be better than the old-fashioned halogen reflector beams. We provided a price range for 2013 models, from the cheapest trim to the fanciest.

• Honorable mention: The 2014 Ford Flex. This huge, retro-styled SUV actually shares some DNA with the XC90, as it dates from the era when Ford owned Volvo. But it scored only an “acceptable” on the driver’s side small-overlap test. Also, it’s far scarcer on the used market.

• Model years: 2016-2017
• Used price: $15,934 (2017 LX with Honda Sensing Package)

As the popularity of SUVs of all sizes has surged, sedan sales have suffered – to the point that the domestic manufacturers are scaling back production, or in Ford’s case, dropping them altogether. But if you can stomach the social opprobrium of a sedan (we’re joking, mostly), you can get yourself into a number of cars with excellent IIHS safety ratings for well under $20,000.

The eternally crowd-pleasing Honda Accord earns the IIHS’s highest ranking, Top Safety Pick Plus (TSP+), for model years 2016 and 2017. Accords of these years scored “good” in small-overlap testing for both sides. A plus if you’re shopping for one now: Honda made its collision avoidance system, called Honda Sensing, available across trim lines, so even an LX model with cloth seats can have the latest tech (though on the used market, Sensing will still be more common on the pricier EX and Touring trims). You could also consider the previous generation, 2013-2015. Crashworthiness is a match, but the collision system is more primitive.

• Honorable mention: The Honda Civic does just as well in crash testing. However, it is smaller than the Accord, so draw your own conclusions about which is really safer. This video -- see what happens when a Smart car hits a Mercedes C-class sedan – might help.
• Honorable mention: Another Honda product, the hybrid Honda Insight, has been reintroduced for 2019. Its crash scores match its stable mates. It’s 200 pounds heavier than the Civic, and its headlights (rated “good”) beat the Civic’s (“poor”). But you’d be buying this new, and it’s right on the $20,000 threshold.

• Model years: 2016-2017
• Used price: $16,663 (Grand Touring with Technology Package, 2016)

Mazda scaled back the “Zoom-Zoom” ad campaign ages ago, but the design ethos continues to this day. The Mazda6 both looks and drives a bit sportier than most of its sedan competitors here.

The model we’re looking at here was launched in 2014, but the 2016 (and later) models benefit from some airbag reprogramming to get “good” ratings for the IIHS small-overlap test. The headlights are rated “acceptable,” the same as the Honda Accord. A distinction, though: That rating only applies to the higher-trim models that have LED projector beams and other advanced features. Lower-trim halogen reflector beams are just “marginal.”

The brand’s smaller sedan, the Mazda3, is also worth a look. However, only the 2019 model gets the critical small-overlap tests right, and it sits right on the $20,000 bubble.

• Model years: 2016-2018
• Used price: $14,988 (SL with Technology Package, 2016)

No zoom-zoom from the Nissan Altima, but plenty of value. According to the IIHS, Nissan made changes in 2016 to the front-end structure and reinforced the junction of the door sill, hinge pillar, and footwell to get this model through the small-overlap tests. So even though this redesign dates back to 2013 (part of the reason its price is cheap), you shouldn’t go older than 2016.

To get the IIHS Top Safety Pick Plus rating, you’ll need to look for an SL trim level (the highest) equipped with the Technology Package (to get crash prevention and better headlights). That will push the price up, but the Altima is still on the cheaper side of this category, so you could also pick out a 2017 or maybe even a 2018 model.

• Model year: 2017
• Used price: $18,743 (2.0i Limited with EyeSight package)

The Impreza is Subaru’s smaller sedan offering, about 400 pounds lighter than its big brother, the Legacy. So why does it come first here when we put the Honda Accord ahead of the smaller Civic? Crash-test results. A 2017 redesign put the Impreza through the small-overlap testing that’s the latest challenge for carmakers. The Legacy didn’t pass that until a 2018 redesign. With our $20,000 price cap, that year of depreciation matters. With Subarus holding residual value well, the Legacy is north of the price limit and the Impreza squeezes under, when equipped at a level that includes the LED projector headlights and the EyeSight collision prevention system needed to earn TSP+.

The crashworthiness applies to a family of smaller Subarus: both the sedan and wagon versions of the Impreza from 2017 forward, as well as the higher-riding Crosstek wagon from 2018 forward.

• Honorable mentions: Having opened the door to smaller vehicles with the Impreza, we should also mention a range of small-but-safe options from Hyundai Motor Company: the 2018 Hyundai Elantra GT (not the regular Elantra, the GT – this one is a hatchback), the 2017 Hyundai Ionique Hybrid and the 2017 or 2018 Kia Niro. All are TSP+ vehicles.

• Model years: 2010-2013
• Used price: $17,902 (2013, Grade 4.6L)

One thing’s for sure with a pickup truck: You’ve got size on your side. But not many pickup trucks get good marks from the IIHS. Plus, they’re expensive. To stay under our price cap, we had to reach back to 2013, when the Toyota Tundra Double Cab was named a Top Safety Pick. But remember that as you go older, testing standards weren’t as rigorous. The Tundra got a good rating for the IIHS’s moderate-overlap test but wasn’t subjected to the small-overlap test on either side. In 2013, collision-prevention systems were not available on a Tundra, and headlights weren’t tested by IIHS.

If you’d like to spend less and get more features, you can go back to 2010, when the driver and passenger front air bags and front seat belts were modified, and knee air bags for the driver and front passenger were added.

• Model years: 2009-2013
• Used price: $19,643 (XLT SuperCrew 4WD, 2013)

The Ford F-150 SuperCrew is an even bigger beast than the Tundra, with test scores just as good. Again, this older testing doesn’t include small overlap, collision prevention or headlights. Since you can shop back to 2009 and enjoy the same crashworthiness, you can probably find yourself a fancy trim level such as Platinum and still stay under $20,000.

We should note that if you’re willing to spend a bit over $20,000 (and settle for a bare-bones truck), a 2015 Ford SuperCrew is the only recent pickup truck to get “good” ratings for both driver and passenger side small-overlap testing. Prices start at $21,850 (for the XL trim, 2WD) and rise steeply as you add goodies.

Your Great-Uncle Frank may have gotten 150,000 miles out of his Studebaker, but the advice he handed down is probably out of date. There are many sayings and shibboleths to watch out for if you want your car to have a long and healthy life. Even if you lease and your car’s longevity isn’t really an issue, knowing the difference between myth and reality could save you money.

These seven myths, in particular, continue to steer well-intentioned drivers off course. Take a look.

The term “premium” is just marketing; that’s why it’s often dubbed Ultra, Supreme, that sort of thing. The only reason to buy, um, premium gasoline is if your vehicle can benefit from the higher octane levels it has. Octane is a measure of gasoline’s resistance to pre-ignition (a hazard to your engine that you might hear as pinging, or knocking). Some car manufacturers recommend premium so that they can tune their engines for higher performance, but you can use regular safely. Only a small percentage of cars require premium gas.

There is an advantage to using fuel (of all octanes) that’s met a certain standard, called Top Tier. Read Buy Your Car the Gas It Deserves to learn more.

We’re not sure this myth really needs to die; otherwise what would people argue about on summer car rides?

If you think sweating it out with the windows down and the A/C off will save the most gas, the Mythbusters guys are on your side, as is Consumer Reports. But a recent study by the Society of Automotive Engineers offers a bit of hope to those who would argue for punching the air conditioning button and keeping the windows up. While they note that air conditioning can indeed impose a considerable mileage penalty — if you run it on maximum and without recirculating the interior air — they outline strategies to reduce the MPG penalty of the A/C, including letting hot air out of the car after it’s been parked, and not running the fan full blast.

Follow those guidelines, they say, and, “depending upon many factors, as noted above, including the vehicle drag value, the energy requirements can be very slightly different to being the same to operate the A/C system versus shutting off the A/C system and opening the vehicle’s windows.”

So, that’s the academic take. But even the engineers note that “the use of the A/C system can reduce driver fatigue, a major safety issue.”

Props if you can sing the old Jiffy Lube jingle! ("Every 3,000 miles, just bring it into Jiffy Lube.”) Notably, the oil-change giant dumped that slogan some years back.

Here’s the deal: You need to change your oil and filter when the owner’s manual recommends it. Not when your neighbor with the vintage Corvette thinks you should. And not when some service manager who wants to sell you a bunch of oil additives and flushes tells you to. Go by the book—or the service light on your dash. For many new cars, the recommendation is to change the oil only once every 5,000 miles—or even less frequently. For my VW Golf, it’s 10,000 miles, with synthetic oil.

This isn't 100% wrong—the myth version just uses the wrong coin. The old thinking was: Stick a penny in a groove head-down, and part of Abe’s head should always be covered.

The problem is, if you can see the top of his pate, that means the tire has less than 2/32" of tread, the legal minimum in most states. If that’s the case, you need new tires, like, right now, especially if there's any chance you're going to see any rain.

• Use a quarter instead. If George's head has some coverage, that means you have at least 4/32", a safer margin. If you're getting close, you'll have time to hunt around for a good deal on your next set of tires. If you want to get fancy about checking, an actual tire tread gauge (different than a tire pressure gauge) is dirt cheap.

The business of shining up cars is a bit like the beauty-product industry, rife with talk of exotic waxes and space-age ingredients. Is it worth ponying up an additional $3 to $5 for “clearcoat protectant” or whatever the term of art is at the automatic car wash? We vote “no.” Nothing wrong with a (well-maintained) automatic car wash, but don’t get your hopes up about a product that is sprayed onto your car for 30 seconds and then rinsed off, even if it comes out in pretty colors with a blinking light to announce its deployment. That magic foam has to:

• Not smear your glass windows
• Not harm your car’s rubber & vinyl trim
• Be non-toxic enough that you can inhale the mist
• And protect your paint?

Given that the shelf at your car-parts store has separate products to shine and protect paint, vinyl, rubber and glass, and that applying them requires a modicum of elbow grease, better to save that $5 at the car wash and just buy and apply a cheap paint sealant yourself, such as NuPolish or Mothers California Gold Synthetic Wax. It can last up to a year and should take you less than 30 minutes to apply.

Independent shops as well as some national chains are fighting back against dealer marketing efforts that play on consumer fears of voiding a warranty. If you have your services done regularly with quality parts—and keep your paperwork—federal law is on your side no matter where the work is done. Check out the Magnuson-Moss Warranty Act. If your dealer makes you happy, fine. Enjoy the loaner car. But it’s frequently the more expensive choice.

One advantage of going to the dealer, at least on occasion, is in case there's a “Technical Service Bulletin” out on your car. This is not a recall, but an advisory from the manufacturer on a non-safety-related item—say, premature corrosion in a certain area. Digging up these advisories yourself isn’t easy, but the dealer always gets them directly and will sometimes do a goodwill fix.

All cars sold since 2007 have what’s called Tire Pressure Monitoring Systems (TPMS). These do what the name says: monitor that your tires have air in them and warn you if they don’t.

The hitch is this: That light won’t come on until a tire is more than 25% lower than the recommended pressure. And if you wait for that, you’re potentially endangering yourself (an underinflated tire can compromise your car’s handling or even lead to a tire blowout) and wasting money (underinflated tires reduce your gas mileage by roughly 0.2% per pound that they’re low). Doesn’t sound like much, but try this math: If your recommended inflation pressure is 40 psi, and you’re 25% low on air, that’s a 2% hit to your gas mileage. Plus, underinflated tires wear more quickly and unevenly, reducing your tire life.

• Buy yourself a tire gauge and use it at least once a month, recommends Woody Rogers, a product-information specialist at Tire Rack, the online tire and wheel vendor. Plus, he notes, “you may see something like a cut or bulge from a road hazard that isn’t a problem yet, but will become a bigger one in the near future if left unattended. The driver who only waits for the TPMS light to come on will never get that close to their tires to discover small problems before they become big ones.”

Most used car shoppers will find plenty of bargains in 2018. A record number of vehicles are coming off lease, increasing dealer supply and lowering prices–or at least keeping them flat. Plus, the vehicles finding their way to dealers' lots better reflect what today's customers want: crossovers, SUVs and trucks. But if you're looking for an older used car, you are going to have a harder time finding what you want, and you might have to pay more than you were expecting.

What's going on here? It boils down to supply and demand. As Jonathan Smoke, chief economist for Cox Automotive (whose properties include KBB.com and Autotrader), points out, "New vehicles are the source of tomorrow's used vehicles." And in the early part of this decade, there was less supply.

Missing generation. In 2011, when vehicle sales were just starting to recover after the Great Recession, dealers sold only about 13 million new cars, compared with 17.2 million in 2017. "That hole in the market continues to have an effect," says Smoke. "Today, we have 20 million fewer vehicles that are five to eight years old."

We've seen the effects of this "missing generation" before. Around 2012, the shortage of lightly used cars was so acute that in some cases, it made more sense to buy a new car–especially with manufacturers offering big discounts.

No more, though. Even with generous incentives available on new cars, smart shoppers are going to find the best values among two- to three-year-old used vehicles because they've already lost the lion's share of their initial value.

That said, if you've been out of the market for a while, you might be taken aback when you peruse the used car listings. The average transaction price of a new car has been rising steadily (and faster than inflation), and what people are paying for used cars has gone up as well. What's more, leases that sharply restrict mileage (often to as little as 10,000 miles per year) are also driving up the prices of late-model used cars, as cars with low miles command a premium.

If those prices make you flinch, how about a vehicle that has more miles yet is newer than an off-lease option? We're talking about vehicles that have likely been in fleet service, such as used rental cars. Yes, we know such cars come with a stigma, but we think it's overdone (they're carefully maintained by the agencies), and it translates into lower prices. Plus, your choices aren't just white Chevy Impalas and red Chrysler 200s anymore. Rental agencies are thinking more about resale when they populate their fleets. When you rent these days, you're more likely to find yourself in something like a well-optioned Toyota RAV-4, and those are the vehicles heading to the used car lots. The best way to get a high-quality fleet car is to buy it directly from the rental company, rather than buying one that has gone to auction and into the used car world at large.

Still, most of those vehicles are going to cost five figures. If you're looking for more-basic wheels, the current dearth of older models is going to be an issue. One suggestion: Skip the used car lot (and its potentially perilous subprime credit offers) and scour Craigslist and other websites for a car 10 years old or older, but with relatively low mileage.

Ivan Drury, a senior analyst for Edmunds.com, says such cars are rare but worthy. "If someone kept it up and it has low miles on it, you have a diamond in the rough. It could go forever." Be sure to have an independent mechanic look over the car. Although these older models may have plenty of miles ahead of them, lack of use can pose some problems of its own (dried-out seals or rotted rubber, for example) that a trained inspector can spot.

Every evening, it seems, we get news of the stock market hitting another record high. People are making money. They’re happy. All seems well.

Time to interject some caution. I have seen this story before — more than once, actually. My advice remains the same:

You’ve got to diversify.

Most people aren’t properly diversified. Yes, they are making money. Yes, their investments are growing, sometimes at a terrific rate.

You may think you’re diversified

Just because you own multiple mutual funds, that’s not a guarantee of diversification. The assets can be correlated. They all react in the same way.

Typically, someone might have an IRA they’re managing on their own and it has a lot of blue-chip stocks that are performing well. They might have a 401(k) from their work that includes four or five mutual funds, mostly growth-oriented. Different investments, yes. But they are invested with the same market risk, so they’re not really diversified.

If the market is doing well and the economy seems to be improving, everything goes up. What’s wrong with that? Simple. What happens when the market isn’t doing well?

If the market starts to struggle, then EVERYTHING in the portfolio is probably going to go down. Then you have a problem on your hands.

Don’t make the same old mistakes

With the growth stocks performing exceptionally well, I think that has led to some complacency — almost a false sense of security. You can almost see a repeat of the mistakes we witnessed in 1999 and obviously 2007, prior to the two most recent bear markets we have experienced. And that’s a big concern.

It’s a dangerous mistake for our clientele, most of whom are retirees or people who plan to be retired in five or 10 years.

When the market is up and everything is performing well, even though someone is getting closer to retirement, they really don’t adjust their portfolio. It’s very difficult for people to sell a winner, lock in profits or take some risk off the table, especially when everything marches higher.

People will say, “Oh, if the market goes down or things get a little rough, we’ll make some adjustments.” It’s almost like they’re claiming to have a crystal ball. I heard the same things in 1999 and 2007, and I don’t recall anyone who actually made those adjustments.

So how do you diversify your portfolio? This will sound counterintuitive. You want to invest in positions that aren’t necessarily losing but may be lagging behind some of your other positions. Again, it might sound strange, but let me explain.

If everything in your portfolio is way up right now, sure, it feels good. But it means everything is correlated. As soon as the market turns around and we get bad economic reports, everything in your portfolio is likely to go down. Without true diversification, you can’t weather the bad times.

Remember the cautionary tale of 2007

And let’s not kid ourselves. History tells us there will be some bad times.

I remember meeting with people in 2007, and I expressed concern about their lack of diversification. They didn’t listen. When the market went down, I got story after story about people who thought they were six months from retirement. Some of them are probably still working today.

Some people lost so much and they were angry with whomever they had their money with, but did they follow the advice? Maybe they got a second opinion and still didn’t listen. They just didn’t want to hear it.

When everything is consistently going up, people want to ride that wave. We also see people who believe they can manage money on their own. When the market constantly goes up and it’s easy to make money, people naturally think they can do just as good of a job as their adviser.

In a good market, that might be true.

But I believe the professionals in our business separate themselves from the amateurs when things aren’t going well. When the market isn’t growing at a rapid rate, that’s when an adviser can provide the guidance, expertise and discipline needed in rough times.

4 tips for proper diversification

If you need to diversify, if you’re looking for an adviser or someone to provide a second opinion, here are my recommendations:

Understand true diversification. If there’s an underperforming position in your portfolio, don’t panic. Know that it could be there strictly for diversification. When the tide turns, it will act as a hedge and counteract a falling market.

Educate yourself. Know how commodities, foreign investments and fixed-income investments figure into a properly diversified portfolio. We’ve always been told not to put all our eggs in one basket, right? Similarly, you need different buckets of money, not things that look the same.

Find an adviser right for you. Different people need different styles. If you’re a do-it-yourself type of investor, you won’t need the same level of guidance as someone who just looks at their statement a couple of times a year. Regardless, find someone who aligns with your values and doesn’t try to be all things to all people.

Follow success. I believe that success leaves clues. Every adviser will say they can make you happy and get you the desired returns. But who are their referrals? Are CPAs, estate-planning attorneys and other professionals recommending them? Is the adviser a published author? Does he or she write articles in financial magazines or have a weekly radio show? Everyone claims to be an expert. But the true experts usually have some clues out there you can investigate. They can get you on the right path to diversification.

Joey Johnston contributed to this article.

This article was written by and presents the views of our contributing adviser, not the Kiplinger editorial staff. You can check adviser records with the SEC or with FINRA.

We worked with the experts at Edmunds to identify used cars that are attractively valued and earn high marks for reliability. One trick is foregoing popular but pricey Japanese models in favor of American and Korean brands. Here are three used cars to consider.

Ford Escape

It’s a good alternative to the Honda CR-V at a fraction of the cost on the used-car market. Use the money you save to upgrade to an Escape with a fancy “Titanium” trim package that includes power leather seats for both driver and passenger.

Kia Sedona

Families in the market for a used vehicle should check out the Sedona. The Korean minivan costs thousands less used than its Japanese rivals, the Honda Odyssey or the Toyota Sienna. A 2015 redesign of the Sedona has been well-received.

Cadillac CTS

Looking to get behind the wheel of a luxury vehicle for less? Consider a used Cadillac. Die-hard driving enthusiasts swear by the BMW 3 Series, but the CTS has surprisingly sharp handling and quick acceleration. It looks luxurious, too.

If a used-car deal looks too good to be true, you should do more than kick the tires. The vehicle may be one of the estimated 500,000 flood-damaged cars that could hit the market after hurricanes Harvey and Irma (see Disaster Relief: Financial Recovery in the Wake of Hurricane Harvey).

Flood-damaged cars enter the market in two ways: via auto auctions and disreputable sellers. If the owner has comprehensive coverage and the insurance company declares the vehicle a total loss, the car is often given a salvage title, which means repairs cost more than the car is worth. After that, the vehicle is usually sent to be sold at auction, where it can end up in anyone’s hands. As long as sellers disclose that the car has a salvage title, the sale is legal.

However, there are always people looking to make a quick buck, says Frank Scafidi, of the National Insurance Crime Bureau. Some sellers may dry out and clean a flooded car without disclosing the damage. Others may manipulate the car’s title—called title washing, which involves selling the car in another state with looser title laws.

An extremely low price compared with prices for similar vehicles is the first tip-off—especially if the car is listed on Craigslist or is for sale at a shady-looking used-car lot. To see used-car prices, go to www.kbb.com and select “Car Values.”

Look for these telltale signs of flood damage with your own eyes:

• A visible water line on the headlights and taillights (look inside the lenses).
• A water line around the engine or excessive rust under the hood.
• Rust or corrosion on exposed screws under the dashboard.
• Upholstery that is new, frayed or doesn't match.
• Mold on the seatbelts.

CarFax recently rolled out a free flood-check tool (www.carfax.com/flood). To use it, you’ll need a vehicle’s identification number. You can also check a vehicle’s flood history at VINCheck, run by the National Insurance Crime Bureau. Or spring for a full vehicle history report at CarFax ($40 for one) or KBB’s AutoCheck ($25).

If you don’t uncover a history of flood damage but are still suspicious, sniff for a telltale odor of mildew, and turn on the radio to see if it sounds distorted. Inspect the instrument panel for trapped moisture. Better yet: Hire a trusted mechanic to do a full inspection.

Last week I spent a couple of hours helping a client buy a new car. Betty, who is in her mid-70s and divorced, had been in an accident a week before that totaled her car. Upon learning of her misfortune, I offered to accompany her to help buy her new vehicle. While such assistance isn’t a service I routinely offer clients, my experience told me a single woman might need an ally when dealing with an automotive purchase.

For routine oil changes, I usually take my car to a well-known national auto repair shop. For anything more than an oil change, I take it to a trusted local repair shop. I’ve been a customer of the local repair shop for nearly 20 years and feel like they practice their profession the same way I practice mine — putting the client’s interest first. However, I don’t have the same level of trust with the national shop.

At the national shop that I go to I like to wait while my oil is changed, and over the years I’ve noticed the repair estimates discussed with women tend to be expensive and complicated. Rarely do the women opt for a second opinion, ask what minimum work is required or ask if there is a less expensive option.

Gamesmanship and lack of transparency make the car-buying process an unpleasant experience in many cases. Betty knew what car she wanted and was agreeable to a couple of color options. Unfortunately, the dealership didn’t have any of those colors and pushed her to buy the colors in their inventory. I’d checked the inventory of a couple of nearby dealerships and was quick to share with the salesman that a local competitor had the colors we wanted in stock. In the end, we negotiated a purchase of the car Betty wanted for just a few hundred dollars over the invoice price. It wasn’t easy, and Betty was grateful I was there to help.

Here are a few tips to help level the playing field when dealing with car buying and servicing:

• Do Your Homework. Car pricing can be found at numerous places on the Internet. Car repair costs can also be found on websites such as RepairPal and YourMechanic. This info can give you an idea if the repair estimate is in line with the diagnosed problem.
• Get a Second Opinion. Car repairs are outside the circle of competence of most of us. If you’re presented with a four-figure repair estimate, seek a second opinion.
• Beware of Framing. When the salesman presented the initial offer, he immediately highlighted the monthly payment. This is a common tactic to make a purchase seem more palatable. $325 per month seems a lot less than $23,000. I was quick to bring the discussion back to the figure that really mattered — the bottom line. When dealing with repairs, insist on an itemized estimate.
• Good Cop / Bad Cop. Don’t go alone. Take a friend or family member along and ask them to play the “bad cop.” Let the bad cop mention nearby dealers and push for pricing discounts. It’s always easier to stand firm when you have someone by your side.

The purchase and maintenance of one’s car is a major expense in most households. Be a wise consumer and make sure you aren’t paying more than you need to.

This article was written by and presents the views of our contributing adviser, not the Kiplinger editorial staff. You can check adviser records with the SEC or with FINRA.

When buying or leasing a new car, Kiplinger readers know to consider depreciation and residual value. In a purchase, the better your new ride holds its value, the more resale dollars you’ll eventually capture. With leases, the higher the residual value, the lower the monthly payment. But when it comes to buying used, depreciation can be your friend. For a variety of reasons, some used cars have depreciated faster than their peers but are still great values.

You have to be willing to look past the blue-chip brands in each class of cars—usually the Toyotas, Hondas and Subarus—to the unsung and overlooked Fords, Chevys and Hyundais. American and Korean brands are turning out some high-quality vehicles lately that have slipped under the radar of the used car market. The high residual values and costs of the blue chips, while well deserved, are due largely to their popularity, notes Ronald Montoya, senior consumer editor for Edmunds.com.

The hidden values, by comparison, might mean "buying from a brand you're not familiar with, or not comfortable with," Montoya explains.

And note that a used car with a rock-bottom price isn’t necessarily a steal. Some fetch a fraction of their original price because, well, they're not very good. But working with Edmunds, and with an eye to reliability (as measured by Consumer Reports), we looked at a range of two-year-old vehicles (an age representing a "sweet spot" on the depreciation curve) and lined up eight models that are the hidden values of the used car market. Have a look.

The Honda CR-V is the blue chip in this popular segment. The 2015 model is the fourth generation of this popular sport-utility, and it commands a considerable premium in the market, holding 83% of its value two years on.Consider the Ford Escape as an alternative. It has depreciated to about 66% of its initial price. And Consumer Reports gave the 2015 Escape the exact same reliability and owner-satisfaction rankings as the CR-V.

Given the discount, you could opt for a fancy trim level, such as Titanium, which gets you leather seats with power adjustment for both driver and passenger, and spring for the Escape’s biggest, most powerful engine, the four-cylinder EcoBoost 2.0. With that engine, the Escape can tow 3,500 pounds, far more than the CR-V's 1,500 pounds.

One caveat: For 2015 models, the Escape lags the CR-V in safety, as measured by the Insurance Institute for Highway Safety. It did not perform as well on the demanding "small-overlap" frontal crash test, meant to simulate hitting a utility pole or similar object.

The crossover craze has come at the expense of sedan sales, but that just means opportunity for the value shopper. This roost is ruled by the Honda Accord, which typically retains 75% of its original value after two years, and the Toyota Camry, which has seen its residual value eroded to about 67% of what it sold for new.

While fashion may have turned away from the sedan class, manufacturers have spent years fiercely competing in this segment, and the progress they made in engineering and quality hasn't gone away. It's yours to enjoy at an even greater discount if you'll give consideration to the Ford Fusion (60% of original value) and Hyundai Sonata (63%).

Comparing those two, the Fusion edges the Sonata on Consumer Reports' reliability rating, though both lag the Camry and Accord. But keep in mind that Hyundai continues to offer the longest warranty out there. If you buy a two-year-old Sonata, you still have three years of comprehensive coverage left.

The loyalties of truck people are deeply held—just look at the stickers on the owners’ back windows. A few observations from a car reviewer aren’t going to turn a Chevrolet guy into a Ford guy (or vice versa).

Fortunately, looking at the numbers, we can steer clear of the Ford-Chevy fissure altogether. A Toyota, the Tundra, is at the top of the retained-value charts again, holding 84% of its value. At the other end of the spectrum is the Ram 1500 (yes, just Ram, not Dodge Ram—that change happened in 2009). It retains 68% of its value, the lowest in this class, below large trucks from Ford, Chevrolet, GMC and Nissan. That puts the price of an average 2015 Ram under $30,000. "Really solid, comfortable trucks," says Edmunds' Montoya. Consumer Reports' testers gave special praise to its 8-speed transmission and suspension.

So, what gives? Reliability. One potential patch for that vulnerability is to consider an extended warranty, but, as ever, be careful with these insurance products, Montoya warns. Get it from the manufacturer, and don't let the price of the warranty wipe out the savings of a less-expensive vehicle.

The compact car in our comparison with the lowest depreciation is the Subaru Impreza, holding a rather astonishing 84% of its value. A better benchmark here is the Honda Civic, at 79%, because a good part of Subaru's high retained value is due to its standard all-wheel drive, which is uncommon among its peers.

But even as the Honda holds its place with a well-deserved reputation for reliability, the value shopper here should take a look at the Chevrolet Cruze. Depreciated to 68% of its new price, the small Chevy sedan offers an impressively quiet ride, nice handling and a dashboard that's much better laid out than the Civic's polarizing two-level arrangement—all for thousands less than the Honda.

In terms of reliability, the Cruze isn't on par with the Civic, but it’s better than the Ford Focus and Volkswagen Jetta, which you’ll also find down in the discount bin.

Another dark-horse contender to consider: the 2015 Hyundai Elantra GT. A sporty hatchback version of the Elantra, its sharp handling and zoomy styling are noteworthy. The Elantra GT is heavily discounted (58% of sale price) and has excellent reliability to boot. But it sold poorly, so you might have a hard time finding one.

• Honda’s Odyssey and Toyota’s Sienna have traded the mantle of blue-chip minivan for years, depending usually on which one has had the fresher redesign. Meanwhile, Kia has been steadily improving its minivan offering, the Kia Sedona. It’s worth a look.

Considered an overweight also-ran when it debuted over a decade ago, the Sedona’s 2015 redesign has made it a real contender. The design could almost be considered minivan disguise: a stepped-up third side window and long, low nose evoke a large crossover.

And despite the attractive styling, it’s still the value contender in this category. While the 2015 Odyssey sells for about 78% of its new list price, the 2015 Sedona has depreciated to 60%. Because these cars cost between $30,000 and $40,000 new, that’s many thousands in potential savings. What’s more, the Kia gives up nothing to the Odyssey in safety: Both scored Top Safety Pick designations from the Insurance Institute for Highway Safety.

The Lexus RX has long held sway in this category (first the RX300, then the RX330 and now, a few redesigns in, the RX 350). Top-notch fit and finish, luxury appointments on top of the bones, and the reliability of the Camry platform help it hold onto 74% of its value two years in. If there's a criticism, it's that the car is too quiet, which some find boring.

Cue Cadillac's SRX to shake things up a bit. With the 2015 model, you'll get a direct-injected 3.6-liter V6 that delivers more power than the RX 350’s engine. The SRX's styling, in our humble opinion, delivers a much sharper look. The Cadillac has depreciated to 72% of its sales price, as opposed to the Lexus' 74%. But a warning: Spend some time with the car's screen-based user system, dubbed CUE (for Cadillac User Experience), and make sure you can live with it. The flush touch surfaces are not everyone's cup of tea.

You might also look for the Lincoln MKX. Its layout is very similar to the other two, and according to Consumer Reports, the MKX is every bit as reliable as the Lexus. With a residual value of 66%, the Lincoln goes for thousands less than the Lexus, though you might find it a bit scarce.

We don’t think we’re likely to make die-hard driving enthusiasts stray from their devotion to the BMW 3 Series. Its reputation as a driver’s car is well earned and a big reason the car retains 76% of its value two years after sale. Furthermore, the 3 Series has an exceptionally wide range of engines and trim levels, so making good apples-to-apples comparisons with other cars can be tough. But if you’re one of the many people who want a nice-looking car that says “I have arrived,” you should give the Cadillac CTS a look.

Like Lexus, Mercedes, Infiniti and others, Cadillac has been gunning for the 3 Series benchmark for years, and the 2015 CTS has the sharp handling and quick acceleration you’d expect from BMW, along with appointments to satisfy the “luxury” part of this class of vehicle. But with two-year depreciation dropping the price to about 67%, you can get into one cheaper than you can a BMW, and the CTS gets similar reliability ratings from Consumer Reports. Like the Cadillac SRX, it has the CUE dash system, which has controls that some find off-putting.

Quiz: Car Insurance: Are You Covered?

The smallest and cheapest of cars tend to lose the most value. A Daimler-Benz Smart Fortwo is worth barely half of its sticker price two years out; the same is true of the Fiat 500. These cars provide a reminder that heavy depreciation can also be a warning sign. Both have iffy reliability records and many dissatisfied buyers.

At the opposite end of the spectrum is the Honda Fit, which has been wowing car reviewers and flying off dealership floors (with minimal discounts) since its 2001 debut. A 2015 model holds 84% of its new value today.

In between those two extremes lies one of Kiplinger's all-time favorites, the Kia Soul. This high-roofed, boxy compact impressed us at its debut, and a 2014 redesign gave it greater refinement. It’s now quieter, with a smoother ride, and the redesigned model earns a Top Safety Pick designation from the IIHS.

It's a good car for both young drivers (it included Bluetooth and USB integration back when those were rare on an inexpensive car) and older drivers (upright seating position, decent visibility). Highway mileage is only so-so, partly as a consequence of having to push that brick-like shape through the air. But the Soul holds 74% of its new value, letting it slot in at about $1,000 less than the Fit.

Airbags are meant to save your life in a collision, but it turns out that millions of airbags made by Takata have the potential to kill you. Over time, a mix of age, humidity and heat can degrade the chemical inside the airbag inflator, potentially causing the inflator to rupture when the airbag deploys during a crash—and shooting what is essentially shrapnel at drivers and passengers. This dangerous defect has caused 10 deaths and more than 100 injuries in the U.S.

So far, nearly 70 million vehicles have been recalled—or soon will be—for faulty airbag inflators, adding up to the largest safety recall in U.S. history. In May, the National Highway Traffic Safety Administration said it would be phasing in recalls of between 35 million and 40 million Takata inflators (mostly in passenger airbags) by the end of 2019, on top of the nearly 30 million mostly driver’s airbag inflators that have already been recalled. (For more details, click here.)

Consumers are notoriously lax when it comes to taking their cars in for recalls. But with so many potentially deadly devices in so many vehicles, the level of alarm is high. Problem is, you may not be able to get a replacement anytime soon. A shortage of available parts means that only about one-third of affected airbags have received a fix so far, according to NHTSA.

“The reality is, manufacturers are not stepping up as much as they need to,” says Sean Kane, president of Safety Research & Strategies, a safety advocacy group. “It’s hard for me to commiserate with manufacturers who say they are doing everything they can to ramp up production,” he adds, because carmakers helped enable the whole mess by using Takata’s products despite growing evidence of design and manufacturing issues.

What to do

If your vehicle is affected, you should have received a letter from your automaker. Even if you haven’t, run your vehicle information number (VIN) through the search tool at Safecar.gov every few months or sign up for alerts at the site. Your make and model may turn up later.

Contact one or more dealers in your area who sell your brand of car to schedule a repair as soon as possible. Just don’t expect the repairs to happen next week. Vehicles are prioritized based on age and whether they were sold or registered in hot, humid states, such as Florida and Texas, because those factors increase the odds that your airbag will fail.

If the driver’s airbag is faulty, ask your dealer—or the manufacturer, if your dealer won’t budge—for a loaner car while you await a fix. To improve your chances, says Kane, “go up the chain and continue to press for a rental or replacement car.” (If only the passenger airbag is being recalled, your chances of getting a loaner drop, but you can put passengers in the backseat.)

Some automakers are offering an interim, or “like for like,” fix, which means your airbag inflator will be subbed with a newer—but still problematic—Takata inflator. That inflator will eventually have to be replaced as well. Plus, you’ll be shunted to the end of the priority line and may not be called in for a permanent fix until 2019. Still, “if you have an extended period before replacement, I would consider a near-term fix,” says Karl Brauer, of Kelley Blue Book.

What if you simply wait until a replacement airbag is available? Don’t even think about disabling your airbag. Aside from certain Honda and Acura models (according to NHTSA.gov), the odds of injury in a crash without an airbag are far greater than with a potentially defective airbag. To reduce the risk, move your seat back as far as you can while still comfortably controlling the vehicle, suggests Clarence Ditlow, executive director of the Center for Auto Safety, a consumer advocacy group.

If you’re in the market for a used car, 2016 is shaping up to be a good year to buy. With lots of vehicles coming off lease, prices have been falling and are expected to continue to drop, according to Kelley Blue Book. That price trend forecast is based on an average of all used vehicles, of course: Demand for SUVs both large and small is expected to stay high, and it will be harder to cut a deal on those models.

But you need a car, not a macroeconomic trend. So we’ve picked vehicles between two and four years old that scored well for performance, value and safety in Kiplinger’s ranking when they were new — and have proven reliable since. Check out our 11 picks:

See last slide for more about pricing and safety rankings.

• Price when new: $22,374 (Two)
• Certified used price: $16,316
• Dealer used price: $15,366
• Private-party price: $12,916
• MPG (city/highway): 51/48
• IIHS Rating: Top Safety Pick

It’s hard to go wrong putting a Toyota anywhere on a best-cars list, so allow us to start with the Prius, which helped the hybrid go mainstream.

Even when lower fuel prices erode the cost advantage of its superb fuel economy, the Prius’s quiet competence makes it an excellent all-around car. It is, in effect, Toyota’s “halo model,” with the cutting-edge design and technology that filter down to the brand’s other offerings.

Lower gasoline prices have another benefit: They have helped push down the price of the Prius, as well as many of its hybrid brethren. So you can pick up a quality small car on the cheap and, if gas prices do pick up again, you’ll be ahead. It’s like you’re trading in oil futures — but you get a car to drive along the way.

It’s also worth noting, now that the Prius has been on the market for nearly two decades, that worries that the battery packs wouldn’t last or would cost a fortune to replace have proven overblown. (The hybrid battery has a warranty of eight years or 100,000 miles, or 10 years or 150,000 in a handful of states that include California and New York.) So go electric-ish with confidence.

• Price when new: $19,166 (Touring, 2.5 liter)
• Certified used price: $17,900
• Dealer used price: $17,050
• Private-party price: $14,837
• MPG (city/highway): 28/38
• IIHS Rating: Top Safety Pick Plus

Mazda has retired the "Zoom-zoom" campaign, but you'll still find that sporty edge across the brand. The 3, which we ranked one of the Best New Cars at its 2014 introduction, boasts active safety with nimble, responsive handling as well as a suite of (available) electronic safety systems more typically found in luxury cars — blind-spot monitoring, forward-collision warning, lane-departure warning, and city-braking assist (which helps prevent rear-end collisions), helping earn it a Top Safety Pick Plus award from the Insurance Institute for Highway Safety.

We've priced it here with the 2.5-liter engine, which we think best pairs with the automatic transmission that most will want. But if you really want the sporty edge, the 3 is one of the few cars that you can get with an honest-to-god manual transmission — though only with the 2.0-liter motor.

• Price when new: $21,734 (SE)
• Certified used price: $16,533
• Dealer used price: $16,033
• Private-party price: $13,471
• MPG (city/highway): 25/35
• IIHS Rating: Top Safety Pick

The midsize sedan category is ultracompetitive, and that has produced some really, really good cars. If you’re looking for four doors and a trunk, give a close look to the Ford Fusion and Hyundai Sonata as well. Resale prices for the Camry, Fusion and Sonata are very close, but the nod goes to the Toyota for its stellar reliability record. We picked the SE model for the sporty edge it lends to a car that often gets dubbed an “appliance.” The extra bling should also help keep you from getting flagged as an Uber driver.

Between lease returns and the popularity of the Camry, Fusion and Sonata as rental cars, you should have plenty to choose from. (That’s right, consider buying a used rental; it can be a good deal.)

Though we’ve called out the Camry Hybrid as both a Best in Class and Best New Car in years past, it’s harder to recommend it as a good value now that gas prices have fallen. The hybrid is still a fine car, but assuming you drive 15,000 miles a year, it will take you about two additional years of ownership to recover the price premium with savings at the gas pump.

• Price when new: $17,120 (Plus)
• Certified used price: $14,880
• Dealer used price: $14,880
• Private-party price: $12,265
• MPG (city/highway): 23/31
• IIHS Rating: Top Safety Pick

You know, the hamster car? You don’t have to appreciate the enduring ad campaign to recognize the value inherent in taking a small-car platform and raising the roof so that passengers can ride without their knees in their noses. A 2014 redesign gave it greater refinement – it’s quieter, with a smoother ride — and helped it earn a Top Safety Pick designation from the IIHS.

This Kiplinger's favorite is a good car for both young drivers (it included Bluetooth and USB integration back when those were rare on a cheap car) and older drivers (upright seating position, decent visibility). Highway mileage is only so-so, partly as a consequence of having to push that brick-like shape through the air. We recommend the Plus trim level to get the 2.0-liter engine, which offers an extra 35 horsepower over the base 1.6-liter mill.

• Price when new: $23,790 (Touring, FWD)
• Certified used price: $21,973
• Dealer used price: $21,123
• Private-party price: $18,146
• MPG (city/highway): 25/32
• IIHS Rating: Top Safety Pick Plus
• SEE ALSO: 11 Smart Ways to Boost Your Gas Mileage

Manufacturers are falling all over themselves to meet customer demand for small crossovers, the market sector pioneered by the Toyota RAV-4 and Honda CR-V. And that demand is also keeping prices for used crossovers high, according to KBB senior analyst Sean Foyvil.

So the Mazda CX-5 may be a great pick, but you’re going to pay a premium. The CX-5, especially if you opt for front-wheel drive only, is mechanically similar to the hatchback/sedan Mazda 3, but it costs almost 25% more.

What do you get for that? The higher driving position of a crossover, more cargo space and a better ride over our crumbling infrastructure — but also less-nimble handling and lower fuel economy.

• Price when new: $35,046 (Touring, FWD)Certified used price: $32,228
• Dealer used price: $30,828
• Private-party price: $26,970
• MPG (city/highway):: 20/28
• IIHS Rating: Top Safety Pick

Audi has wooed car buyers for years with stellar interior design (and nice exterior looks, too). Reliability has been the bugbear. But time has smiled on the Q5, which Consumer Reports ranks as “better than average” for overall reliability for the 2014 model year. The Q5 is in a crowded market segment (luxury crossovers with two rows of seating, which includes the Lexus RX 350), but it stands out with its taut handling and high-tech, turbocharged, direct-injected 2.0-liter 4-cylinder engine.

• Price when new: $36,428 (FWD)
• Certified used price: $30,537
• Dealer used price: $29,037
• Private-party price: $25,497
• MPG (city/highway): 18/25
• IIHS Rating: Top Safety Pick

In the RX you get a sleek package with a silky smooth ride. Plus, it’s a technological tour de force.

Taken together, these features made it one of our Greatest Cars of the 21st Century. Ten airbags, Bluetooth and a nine-speaker sound system are standard. Out in the marketplace you’ll find models with options such as smart headlights (adaptive front headlights, which let you see around curves, plus automatic high beams), collision-warning systems with adaptive cruise control (maintaining a safe driving distance from the car in front of you), and a head-up display (to see your speed, GPS directions and other data without looking down at the dash).

Lexus also sells a hybrid version, the RX 450h (dealer price for the 2013 model: $35,964), with better mileage and more horsepower than the gas-only version. But even more so than the Camry, you’ll be hard-pressed to earn back the hybrid’s steep price premium at the gas pump.

• Price when new: $43,790 (E350)
• Certified used price: $28,395
• Dealer used price: $27,395
• Private-party price: $23,514
• MPG (city/highway): 20/30
• IIHS Rating: Top Safety Pick
• SEE ALSO: How to Make Your Car Last Longer

Mercedes is still a master of making cars that feel solid and safe, with the features and ratings to back up that tell-tale “thunk” you hear when you shut the door.

The 2010 E-Class redesign brought to the lineup standard Attention Assist, which monitors the driver via steering inputs for signs of drowsiness and alerts you if you need a break. Other features available in the 2013 models include lane-departure warning, blind-spot assist and a collision-warning system that will brake automatically if the warnings are not heeded. Nine airbags come standard, and some models have rear-seat side airbags as well.

But there’s power, too: If the 302 horses of the V6 E350 aren’t enough, check out the E550 (402 hp), or the E63 AMG (518 hp!). Want to go ridiculous distances on the highway without stopping for fuel? Pick the fuel-efficient E350 BlueTec diesel, one of our favorite cars for long road trips.

• Price when new: $43,352 (Premium)
• Certified used price: $30,211
• Dealer used price: $29,511
• Private-party price: $25,905
• MPG (city/highway): 16/21
• IIHS Rating: Top Safety Pick

With seating for seven, a standard rearview camera and tri-zone climate control, it’s tough to beat Acura’s crossover for the combination of safety, roominess and luxury. The 3.7-liter V6 has plenty of power, and Acura’s standard Super Handling All-Wheel Drive does an exceptional job of keeping it firmly planted.

The system can split torque not just between the front and rear wheels but also between the left and right rear wheels. Normally, the system sends almost all the power to the front wheels for efficiency’s sake. But say you’re going around a corner with a heavy foot on the gas. In that case, the outside rear wheel will get an extra dose of power, helping push you around the turn without the car’s nose drifting wide.

For extra safety, look for a model with adaptive cruise control, a collision-warning system and blind-spot monitoring.

• Price when new: $41,204 (LS, AWD)
• Certified used price: $31,894
• Dealer used price: $31,294
• Private-party price: $27,658
• MPG (city/highway): 15/21
• IIHS Rating: Not rated
• SEE ALSO: 10 Best All-Wheel-Drive Vehicles for the Money

With the optional front-row bench, the Tahoe can transport an entire baseball team, plus carry the bats, balls and other equipment in the 16.9 cubic feet behind the third row (60 cubic feet when you remove the third row). If hauling a trailer or boat is your thing, it can tow up to 8,500 pounds, and the all-wheel-drive system is a traditional one that you can manually lock up for maximum traction on, say, a slippery launching ramp. All models come with Bluetooth. Look for passenger-friendly perks such as the power fold-and-tumble second row, and such driver-friendly features as rear park assist, a rearview camera and a blind-spot monitoring system.

Also consider the GMC Yukon, which is mechanically identical but has slight design variations. Similarly, the Chevrolet Suburban is essentially a longer version of the Tahoe. The IIHS didn't test-crash the Tahoe or these sister models. However, in the less-stringent testing performed by the National Highway Safety Administration, the 2014 model earned 4 out of 5 stars.

• Price when new: $37,000 (Premium)
• Certified used price: $26,680
• Dealer used price: $25,880
• Private-party price: $22,563
• MPG (city/highway): 18/25
• IIHS Rating: good

Goes fast, has an engine that rumbles, drinks lots of gas. How did the Mustang GT get in here? Because the only pony car in production for over half a century, one of Kiplinger’s Greatest Cars of the 21st Century, keeps getting better, and with fuel prices low, it’s a little easier to justify. Plus, for better or worse, the 2014 is selling at a big discount from new. Chances are good the depreciation curve will flatten out a bit now.

If you’re going old school like this, might as well get the convertible, the better to put wind in your hair and hear the guttural sound of the V-8.

The Mustang convertible was rated "good" on IIHS’s applicable crash tests but can't earn a top safety pick, lacking a top to be tested in the organization's roof crush test. Note also that it lacks the active rollover protection (such as pop-up roll bars) that much of its convertible brethren have adopted. Reliability remains so-so.

Prices listed are "Fair Market Value" from Kelley Blue Book, reflecting what consumers are typically paying for vehicles — not asking prices. The certified used price is for vehicles that have gone through a manufacturer's program to select top-grade used cars with relatively low mileage and are backed by an extended warranty.

Safety rankings come from the Insurance Institute for Highway Safety, whose crash-test standards change between model years. For 2013 models, to be a Top Safety Pick, vehicles must have earned good ratings in the moderate overlap front, side, roof strength and head restraint tests. For 2014 models, reaching that standard also required a good or acceptable rating in the small overlap front test, and Top Safety Pick Plus winners must also have optional front crash prevention technology (such as automatic braking).