Safe Cars for Recent Grads

CarGurus Research Highlights Safe Used Cars That Fit Starter-Salary Budgets

CAMBRIDGE, MA--(Marketwire - May 6, 2011) - For new graduates hoping to drive away from commencement in a car of their own, finding dream wheels on a starter-salary budget can be a challenge. To help them, auto research and shopping site CarGurus.com (www.cargurus.com) today released its picks for the best used car deals for grads, offering young buyers (and their parents) suggestions and price guidance on safe, fuel-efficient used cars that are available in this spring's marketplace for less than $20K. On the list: the 2006 Volkswagen Jetta, the 2006 Volkswagen Passat, the 2009 Mitsubishi Lancer, the 2009 Ford Fusion, the 2008 Scion xB, the 2009 Honda Accord and the 2007 Ford Edge.

To arrive at its list, CarGurus reviewed millions of used vehicle listings for sale at dealers around the U.S. as of May 1, 2011, targeting cars less than six years old and typically available for less than $20K. The list was further limited to cars that received the highest safety ratings from the Insurance Institute for Highway Safety (www.iihs.org) for that model year. Pickup trucks, SUVs and convertibles were excluded. In addition, CarGurus considered fuel economy, limiting picks to cars that would allow grads to cap their weekly gas expenses at $40, assuming $4/gallon and 200 combined miles driven per week. Finally, CarGurus assessed its listings database of 2+ million cars, including only cars showing ample inventory.

The following chart highlights CarGurus' picks for the best used car deals for grads this Spring. The CarGurus' Instant Market Value (IMV) price below is based on a mathematical analysis of current and historic listings for comparable cars with mileage that is typical (about average) for the listings studied. While this IMV provides guidance as to each car's value, grads shopping for a car should use CarGurus' free DealFinder shopping tool to search for the best deals from dealers in their local areas. For any car searched, DealFinder provides a ranked view on "great deals" that offer savings off the Instant Market Value.


Year/Vehicle/Trim DealFinder Instant Market Value (IMV) for a car with average mileage Average mileage for DealFinder listings IIHS Safety Ratings (1) MPG (city/highway)

2006 Volkswagen Jetta Value Edition $11,300 59,200 Top Safety Pick 2006 22/29
2006 Volkswagen Passat Value Edition $12,800 60,800 Top Safety Pick 2006 21/29
2009 Mitsubishi Lancer DE $12,900 31,100 Top Safety Pick 2009 for models with electronic stability control (ESC) 22/28
2008 Scion xB Base $14,000 44,500 Top Safety Pick 2008 22/28
2009 Ford Fusion S $14,100 44,300 Top Safety Pick 2009 for models with optional ESC 20/28
2008 Honda Accord LX $16,700 34,900 Top Safety Pick 2008 for 4-door models 22/31
2007 Ford Edge SE $17,400 51,300 Top Safety Pick 2007 18/25

(1) More information can be found at the Insurance Institute For Highway Safety's website atwww.iihs.org.

"In this tight spring car market, finding a great deal in the lower price ranges might seem like a tall order, but our research points to several well-priced cars that deliver on important criteria like safety and fuel efficiency," said Langley Steinert, founder and CEO of CarGurus. "The key is search, don't settle. Young buyers that put their web savvy to work for them when shopping for a car will be at an advantage. Free online tools like our DealFinder can help shoppers get informed about prices and narrow their search to find the best deals in a local area."

CarGurus' Tips for Shopping for a Used Car Online:

• Price Shop. The Web brings transparency to used car pricing; use it to your advantage so you do not overpay for a vehicle. Find comparable local car listings from multiple dealers, and bring those listings to the dealers with whom you are negotiating. Having more information will give you more leverage.
• Know Your Options. Many online pricing tools for used cars do not account for options, which can significantly impact the price of a car. A car that looks like a great deal on your screen might in fact lack some of the features you care about most. Likewise, some options can drive the price up and out of your budget. Get familiar with the options that were available for the car year you're considering, and decide which if any you absolutely have to have.
• Wait for the Price to Drop. Most used cars that have been on the market for more than 30 days have at least one price drop. The market is tightening this Spring, but there's still a good chance you can wait out a better deal. CarGurus' DealFinder allows you to track a car's price history and time on market, and you can sign up for email alerts that will let you know when prices drop.

About CarGurus' DealFinderCarGurus' free DealFinder (http://www.cargurus.com/Cars/forsale) shopping tool offers consumers a transparent online car shopping experience, giving them instant guidance on the best deals in their local area. Shoppers plug in their zip code and desired car and get an instant view of available vehicles, ranked from great deals to listings that are overpriced. For each listing, DealFinder also provides a detailed price history, so consumers can see how long a car has been on the market as well as any price drops it has had -- information that can be used during a negotiation.

DealFinder rankings are based on a mathematical analysis that factors in the prices of millions of current and recently sold comparable listings to determine a car's Instant Market Value and how each listing compares to the current market. Unlike many other listings sites, the search results are unbiased by listings providers.

About CarGurusCarGurus (http://www.cargurus.com/) is a leading online automotive destination that is focused on making the online car shopping and research experience more transparent for consumers. Located in Cambridge, MA, the company was founded by Langley Steinert, co-founder and former Chairman of TripAdvisor, the largest travel site in the world.

This 2009 Corvette Stingray concept car may -- or may not, GM says -- indicate something of what a next-generation Corvette could look like. Either way, the new 'Vette means 250 more jobs.

GM invests $131 million to build next Corvette

By Peter Valdes-Dapena

General Motors is investing $131 million in the Bowling Green, Ky. factory that builds the Chevrolet Corvette as it prepares to roll out the next generation of the sports car in a couple of years.

In the process, the automaker will add about 250 jobs at the plant.

"This is a significant day for anyone who believes that America should build world-class, high-performance products," said Mark Reuss, GM North America president.

The plant currently employs about 400 hourly workers, GM said, who work four 10-hour days a week producing the cars. Corvettes had been made at Bowling Green since 1981. All versions of the car are assembled there including hardtops, convertibles and the high-performance Z06 and ZR1 versions.

The plant will continue to produce the current sixth generation version of the Corvette for at least two more model years, a GM spokesman said. Production of a new version of the sports car will begin some time after that but no specific timetable for the start of production has been set.

Groovy million dollar cars of the future

While most cars are thoroughly redesigned about every five years to keep up with changing consumer tastes and competitors' improvements, high-cost niche products like the Corvette tend to go much longer between revisions. The sixth-generation Corvette was introduced in 2005.

GM has not yet revealed any official images or information about the seventh-generation Corvette.

This Kia Has a Hidden Secret

No, it's not some flashy design or gimmick. It's something you might not notice -- until it starts saving you (tons) on gas.

Gentlemen: Stop Your Engines

Technology that stops the engine at redlights gaining foothold to increase fuel economy

The 2012 Kia Rio, a completely new vehicle unveiled last week at the 2011 New York Auto Show, has more to boast about than its sculpted tiger grill: the appearance of its ISG (idle-stop-go) technology as the latest mechanism to save gas. The system, which shuts down the engine at stop-lights and when a car is idling, is already popular in Europe and is taking hold in the U.S.

Cars like the Rio that use start-stop technology are programmed to shut the engine down completely when the car stops for longer than a few seconds, such as at a stop-light or stop sign. Instead of burning gas while idling, the engine remains off until the driver releases his foot from the brake pedal. The system is safe, has proved reliable and is part of how full-hybrid cars like the Toyota Prius work.

In Europe, where strict fuel economy and tailpipe emissions laws have long been established, this start-stop technology has been a fixture on the road for several years. In fact, it can increase the fuel economy of a vehicle by as much as 10%.


Research and consulting firm Strategy Analytics estimates that in 2010 14% of vehicles produced in Europe used start-stop and predicts 64% of vehicles produced in Europe in 2017 will have the feature. It is likely that most automakers will standardize these so-called "micro hybrid" systems in cars with smaller engines, such as three and four cylinders, by 2016-2017.

Because the systems are relatively inexpensive and undeniably save gas and money, close to 100% of vehicles manufactured in Europe will have start-stop systems by 2020, according to industrial consulting firm Frost & Sullivan.

But bringing wide-spread start-stop technology to all, or even most, cars to the U.S. has come at more of a glacial speed. Start-stop systems in the U.S. are used with hybrid vehicles (the electric motor in hybrids is used to restart the gasoline engine). The only conventionally powered (non-hybrid) vehicle to carry the technology now is the Porsche Panamera.

That's a bit ironic since most people buying the $70K-plus Porsche probably aren't too worried about saving a few bucks on gas. Rising gas prices and government fuel economy standards, though, are pushing start-stop technology down to economy cars bought by people who are saving their nickels and clipping coupons.

In addition to Kia, Ford and General Motors have announced they will be offering stop-start technology on vehicles starting in 2012. On the luxury side, BMW and Jaguar are joining Porsche.


The Ford version will feature a 12-volt battery with voltage sufficient to make certain the vehicle accessories like air conditioning and heat function normally when the engine is shut down. Additionally, there is a 12-volt enhanced starter-motor to provide easy starts once a driver removes his foot from the brake pedal.

The Kia Rio will have a starting price under $13,000 and, by contrast, will not have the electric compressor technology necessary to maintain the cooling and heating systems in the vehicle in order to keep costs down. Of course, if the ISG system detects extreme heat or cold outside, the ISG system will not initiate an engine shutdown at a stop in the first place.

"We're trying to be mindful of the fact that this buyer is really interested in price and fuel economy," said Orth Hedrick, Kia's director of product planning. "This is an ideal crossroads between those two. You eliminate the really expensive stuff but still have the benefit in an urban environment to have the engine shut off and save some fuel."

GM is also launching its eAssist branded mild hybrid system on some of its vehicles; the vehicle does not run on electric power only, as an electric motor provides some torque assist for acceleration and regenerative braking while providing start-stop functionality.

GM's eAssist will be offered on the both the 2012 Buick LaCrosse as the base engine and as an option on theRegal. The system will also be available on the new Chevrolet Malibu, which is set to debut in early 2012. GM is not marketing this system as a hybrid and does not even necessarily badge vehicles equipped with eAssist. In terms of marketing strategy to cast a wide net around a more slowly adapting consumer base, GM/Buick will offer it on the base-model LaCrosse with a starting price of $30,000.

Strategy Analytics estimates that it costs an automaker between $162 and $333 per vehicle to add these systems. A full hybrid system, such as those in the Toyota Prius or Ford Fusion, which need heavy robust batteries to propel the whole vehicle at times, drive up cost to the consumer by $3,000 to $5,000, compared with non-hybrid vehicles. The cost differential for consumers of start-stop technology cars is much more digestible.

Still, of course, people want to see quantifiable rewards on their gas tank for venturing this technology. The main roadblock in the U.S. is that the current EPA driving cycle used to rate miles per gallon does not greatly reward vehicles with start-stop systems as it includes only one full stop in the test. The Rio would normally get 30 MPG for driving in the city, but with ISG technology garners just 31 MPG -- not exactly gangbusters at first glance of the figures. However, the "real-world" savings are higher.

To quell potential consumer anxiety from this feature, almost all of these systems can be defeated by a dashboard switch operated by the consumer. As a result, dealers can allow customers to over-ride the system, but it usually has to be switched off each time the vehicle is started. That is so consumers who are initially reluctant about it can't shut it off and forget it for good.

It may take some getting used to at first, but the fact is that the systems work. Whether the U.S. consumer finds this start-stop technology a ready fuel saver or a scary new technology remains to be seen.

By: Ross Kenneth Urken

Is GM's Rebound the Real Deal?

By Douglas McIntyre

The revival of Detroit is nearly complete, according toThe Wall Street Journal.Chryslermade $166 million in the first quarter, its first profit in five years.Ford(F) made $2.6 billion in the same period, which was its best result since 1998.

But the clearest sign of Detroit's comeback is that GM(GM) is set to retake the No.1 spot as the world's largest manufacturer of cars and light trucks, if forecasts for 2011 hold up.Toyota(TM) took away that distinction three years ago as GM moved into Chapter 11, but the earthquake and tsunami that struck Japan in March have caused Toyota's production to falter. The Japanese automaker's sales have also been hurt by a series of recalls that began over a year ago.

GM's recent success has been based to a large extent on its sales in China, where by most accounts, it and its local joint venture partners are the top sellers of cars and light trucks. In addition,GM's domestic April salesrose 27% to 232,538 from a year earlier, and its market share was about 19.2%, up from 16.6% a year ago, further signs that its health has improved in the U.S. as well as abroad.

China is now the largest car market in the world, so GM's success there should cheer investors, but the car company's stock is down from its 52-week high of $39.48 to $32.18.

Fighting for the Future in China, India, Russia

Given GM's sales figures, it's reasonable to ask why its stock price is falling rather than rising. The explanation most commonly given for the relatively low price of GM's shares is that it faces stiff competition in the U.S. from its highly successful rival Ford, as well as smaller firms likeHyundai(HYMTF), which have begun to pick up market share here. The truth, however, is not that simple.

GM's success in China could be short-lived. What was considered an unimportant market a decade ago has today become a major target for Europe's top car companies, as well as Toyota,Honda(HMC), andNissan(NSANY). The Japanese automakers have all suffered production setbacks from the recent disaster, but those will be temporary. Toyota, for example, says it will have its plants back at full capacity before the end of the year. After that, it will be prepared to fight seriously again for market share in the world's most populous country, and no matter how successful GM becomes in the U.S., its position in China is essential.

GM also faces stiff competition in other high-growth markets which have only recently become important targets for global manufacturers. Chief among these is India, the world's second most populous nation. Thenumber of cars sold in India in 2010was only 1.87 million, which is tiny for a nation with more than 1 billion people. However, as India's average household income grows and the nation improves its highway system, it could eventually rival China as a critical market for global car firms.

The other large market with the most potential for huge sales growth over the next few years is Russia.Car and light truck sales in Russiaare expected to reach only 2.24 million in 2011. While that figure is more than 10 times greater on a per capita basis than India's, Russia's auto sales are still quite modest for a country of its population.

GM may have achieved a major comeback in the U.S., and it may hold a strong position in China, but the future of the automotive business is quickly moving to other markets, and in those nations, GM's success is by no means assured.

Electric Car's Dilemma: The Plug

Electric Car's Dilemma: The Plug

Standardization Key In Finding Plug Solution

By Steve Hargreaves

Charging electric cars will be a vital part of the consumer experience, and the auto industry knows making the experience as easy as possible is crucial to the cars' success.

In a bid to avoid the eight million different types of chargers available for mobile phones -- and the resulting frustration among consumers -- the industry is working hard to standardize plugs for new electric vehicles.

There are currently about seven different types of plugs and sockets worldwide for car charging, according to Tom Baloga, an executive at BMW -- much better, he said, than the 20 or so there could have been.

"There has been a great collaboration among the industry to standardize as much as possible," Baloga said during a roundtable discussion Tuesday at Fortune's Brainstorm Green conference.

The industry is also working on ways to make electric cars more friendly for city dwellers, who don't often have the luxury of a garage and nearby electric outlet to plug in a vehicle.

Among the devices in the works are portable charging pedestals that could be anchored in parking lots or even on side streets.

The panel, which included executives from BMW, General Electric and CODA, among others, debated the merits of charging company Better Place's system.

Under Better Place's model, consumers don't buy the actual battery. Instead, they use service stations where the battery is swapped out in a matter on minutes, eliminating the charging process for the consumer all together.

The panelists thought the concept will take off in certain places, notably Israel where the company's founder is from, and among some fleet vehicles like taxis.

But they also felt building the infrastructure is expensive, and fast charging batteries could endanger its business model.

Auto deals less attractive

Auto deals less attractive
As vehicle supply shrinks, haggling unlikely to pay off for buyers
By Maria Panaritis, The Philadelphia Inquirer


New-car buyers won't like the sound of this, but the days of waltzing into a showroom and talking tough with a desperate salesman until they get the price they want may be coming to an end.

Turmoil in tsunami-ravaged Japan, where work at automotive assembly plants and parts factories has slowed or halted -- coupled with soaring global gasoline prices and lean inventories -- has helped raise the prices of vehicles being sold in U.S. showrooms just as the busy spring buying season approaches.

The supply squeeze is affecting Japanese automakers, but even some of the domestic automakers are grappling with shortages of Japanese-made components that go into their cars, analysts said.

All that, combined with rising interest in fuel-efficient vehicles as crude-oil prices soar, is amounting to a supply-and-demand shift less favorable toward consumers, industry observers said.

"They're going to pay more than they did in January on a lot of vehicles," said Michelle Krebs, senior analyst at online car-buying resource Edmunds.com, in West Bloomfield, Mich. "If they can wait till production becomes more normalized, then prices should stabilize."

According to dealership sales data analyzed by Edmunds, the price of a typical vehicle went up $120 during the first week in April compared with the first week in March, with increases biggest among Japanese compact models, Ms. Krebs said.

"Vehicles like Mazda, for example: The average price went up $370 a vehicle, and that was mainly because of their small cars, the Mazda 2 and 3," she said.

Growing demand for fuel-efficient vehicles by consumers grappling with high gas prices is one reason.

"Nissan, we've got them up $120 a vehicle; $200 across-the-board of all Hondas," she said. "Subaru Forester ... increased about $320."

Increases were modest to flat among domestic models.

Also moving prices up is disruption at Japanese factories.

Because of shortages of parts from Japan, the Subaru factory in Lafayette, Ind., that makes the Legacy, Outback and Tribeca was scheduled to halt production Monday. The company said it also had stopped production until Monday on a separate line that produces Camrys for Toyota.

Japanese electronics, automotive and parts manufacturers are still struggling to operate at full capacity, if at all.

The most acutely hit brands are Toyota, Honda, Nissan, Subaru, and Mazda, which have heavy manufacturing in Japan, said Rebecca Lindland, a global automotive analyst at IHS Automotive in Lexington, Mass. (Korea-based Kia and Hyundai, she said, seem fairly insulated from the parts shortages.

"Right now, many dealerships aren't taking orders for some of these products, like the entire [Nissan] Infiniti line that is imported," Ms. Lindland said. "The consumer is not necessarily going to be able to order his favorite Infiniti or her favorite Prius because of a lack of supply. We also aren't seeing full production yet."

In past years, buyers could readily find incentives such as zero-percent financing and rebates on domestic and foreign vehicles. Automakers tried to move their big-ticket vehicles with such sweeteners because consumers were reluctant to spend, thanks to the Great Recession and unemployment.

But more recently, automakers began sharply reducing the number of vehicles sent to showroom lots, in a move to stabilize prices.

It seemed to work.

Wholesale prices for light vehicles and trucks increased 0.6 percent in February and 0.9 percent in March, according to Producer Price Index data, said economist Joel Naroff.

All this, Ms. Lindland said, will translate to the showroom: "You're not going to be able to get the same kind of deal that you may have gotten last summer."

Crash Tests Show 2 Electric Cars Safe

Crash Tests Show 2 Electric Cars Safe

High gas prices are causing some people to go electric.

The two most popular models in the U.S. right now are the Chevy Volt, which combines plug in batteries and gasoline, and the Nissan Leaf, which operates on battery power alone.

The Insurance Institute for Highway Safety has conducted safety crash tests on these two for the first time, wondering if all those heavy batteries and high voltage combined with a car engine make a difference in how safe passengers are in a crash.

"GM and Nissan did a really nice job of packaging these batteries in a very safe place on the vehicle, it's sort of under the rear seat and in the center tunnel, that area is really well protected," says Insurance Institute for Highway Safety Vice President of Research Joe Nolan.

The experts said when they crashed the cars there were no leaking batteries or high voltage sparks that would cause a fire after a crash.

They added a few hundred pounds of batteries turned out to be a plus.

"These vehicles, even though they are classified by their size as small, weigh more than some mid-sized and even large cars, and that extra mass is a big safety advantage in crashes," Nolan explains.

Both General Motors and Nissan spokespersons said they were pleased with the crash test results.

They say they designed the cars to do just as good a job of protecting passengers as their cars that run on gasoline.