Car Blog

A blog covering the auto industry with test drives and commentary on articles from other sites

Subaru announces all-time sales record and expands Forester line with new value packages for 2010 Forester

New Special Edition Package for Forester 2.5X New Navigation and Convenience Package for 2.5X Limited NHTSA 5-Star Ratings and IIHS Top Safety Pick

Subaru of America, Inc., which just announced best-ever sales of 216,652 vehicles for 2009 – a 15-percent jump over calendar year 2008 – is introducing new versions of its top-selling Forester compact crossover SUV at the North American International Auto Show, which runs January 11-24 at Cobo Center. The Forester was Subaru’s top-selling model in 2009, with 77,781 sold — a 28-percent increase over 2008.

Arriving in February, new option packages expand 2010 Forester choices and demonstrate the market agility that allows Subaru to respond quickly to customer trends. The Forester 2.5X with Special Edition Package adds 16-inch alloy wheels and roof rails for a discounted package price of $400 over this model’s $20,295 MSRP.

The Forester 2.5X Limited, already luxuriously equipped with leather appointed interior, 10-way power driver’s seat, automatic transmission, panoramic power moonroof and other amenities, offers a new Navigation System and Convenience Package for $2,300. At $500 more than the regular Navigation System, the new option also includes the Forester line’s first-ever HID headlights, plus a tilt/telescopic steering wheel, one-touch folding rear seats and a cargo area cover.

In addition to the new option packages, the Forester also features other enhancements for 2010, including a standard 10-way power driver’s seat for the 2.5X Premium and Bluetooth® wireless capability for the available navigation system in Limited trim lines.

Like all Subaru models, the Forester comes standard with Symmetrical All-Wheel Drive, a traction and value advantage over competitive models that make all-wheel drive an extra-cost option. The Forester was named Motor Trend Magazine’s Sport/Utility of the Year for 2009, followed by the 2010 Outback getting the award for this year making Subaru the only brand to win the award two years in a row. Subaru is also the only brand to have all five of its model lines receive a “Top Safety Pick” from the Insurance Institute for Highway Safety for 2010. (The IIHS adopted stricter criteria for the Top Safety Pick for 2010, including rollover safety.)

Forester is offered in five trim lines for 2010. The Forester 2.5X, powered by a 170-hp 2.5-liter 4-cylinder Subaru Boxer engine, is one of the best values in the crossover SUV segment. The 2.5X Premium adds a 10-way power driver’s seat, large panoramic power moonroof and interior enhancements and offers an available All-Weather Package (heated front seats, heated side mirrors and windshield wiper de-icer). The Forester 2.5X Limited includes the All-Weather Package and offers more luxury and an available navigation system. For powerful, sporty performance, the 2.5XT Premium and 2.5XT Limited are powered by a 224-hp turbocharged/intercooled Boxer engine.

Source: Subaru of America, Inc.


Car owners say routine oil changes reduce costly repairs; Mechanics agree

Washington drivers know the key step in preventing costly auto repairs, but they may be overlooking other crucial maintenance to prevent long-term engine damage, according to a PEMCO Insurance poll released today.

More than half of the drivers polled (53 percent) correctly identified regularly changing the engine oil and filter as the No. 1 way to avoid expensive vehicle repairs. Respondents chose oil changes as the single most important maintenance action over other routine practices such as regular tune-ups, changing air filters, and servicing the vehicle’s transmission.

PEMCO Insurance says mechanics agree. “Our network of local top-rated auto shops agrees that regularly changing your car’s engine oil and filter is the most effective way to prevent costly auto repairs,” said PEMCO spokesperson Jon Osterberg.

Not a single poll respondent identified regularly servicing their vehicle’s transmission as the most important way to prevent costly auto repairs. Though not as crucial as regular oil checks, servicing your transmission is a critical part of extending your car’s longevity and shouldn’t be overlooked, according to Jeff Odom, owner of Evergreen Autoworks.

“People are aware of it but don’t completely buy into the idea of changing the transmission fluid. They don’t believe in the seriousness of it or don’t think they’re going to keep the car that long. But the cost versus the possible benefit is well worth the investment,” Odom said.

Now more than ever, with the average driver waiting about 100,000 miles between tune-ups, oil and filter changes are critical to keep a car running smoothly, according to Dave DeMontigny of Car People, a Northwest agency specializing in automotive-related occupation and employment services.

Kerry Triboulet, owner of Special Interest Auto Body in Everett, agrees. “If you change the oil every 3,000 miles, the inside of the engine will remain like new. You won’t have engine oil leaks or other issues like a damaging build-up of carbon. The internal parts of the engine will last longer.”

PEMCO also recommends following these additional guidelines from AAA to maintain vehicles and keep them in their prime:

Check Tire Pressure

Drivers should check their vehicle’s tire pressure about once a month to ensure it follows owner’s manual specifications. Over-inflated tires can cause premature wear on the center tread. Under-inflated tires can decrease fuel economy or, worse, cause blowouts at high speeds.

Change Engine Air Filters

This should be checked every six months or approximately 7,500 miles. Air filters that are dirty or clogged can restrict airflow and reduce engine performance and fuel economy. A congested air filter can also lead to increased exhaust emissions.

Battery Cables/Clamps/Terminals

Corroded or loose battery cables/clamps/terminals can restrict power to a vehicle’s electrical system, hamper other systems, and even keep the engine from starting.

“Simple maintenance like changing fluids and filters can prevent breakdowns and costly repairs. The key is to do those things regularly and not dismiss them or procrastinate for the sake of convenience,” Osterberg added.

To learn more about PEMCO’s poll and to view a summary of the results, visit www.pemco.com/poll.


Driving safely controls the cost of auto insurance rates

Auto insurance is a vital part for every car owner. It is a great place to save money since it comes with many variations and different levels of coverage, including liability, comprehensive, collision, and more. Of course, with all these choices, it can be overwhelming for consumers as they decide to buy car insurance.

There are lots of factors that affect the computation of insurance rates which are beyond any consumer’s control, two of which are age and driving experience. However, one of the most significant rating factors is indeed controllable, and that is the driver’s driving history. An already established fact, drivers who practice road safety will not only lessen the chances of getting themselves into an accident, but will also save money during their insurance process. This is because most auto insurance companies will likely grant discounts and rewards.

When applying for auto insurance, the accumulation of tickets and participation to various accidents would mean a higher risk of loss. This raises a red flag and will directly impact the computation of insurance premiums. Nevertheless, maintaining a clean driving history is not as hard to accomplish. Practicing traffic rules and regulations have been proven to be the most effective way to keep the blemishes off and lowering the rates hugely.

Nearly all traffic accidents recorded are caused by human error or impaired judgment. Over speeding, failure to yield, driving under the influence of drugs or alcohol, driving too closely from another vehicle and trying to race and beat the red light are the most common. Individuals who suffer from swelled car insurance rates do so because they have created a negative impression on their driving records. The good news is that, all of the items cited above can be avoided just by reducing the likelihood of getting involved in such mishaps. Being safe on the road will lead to fewer claims, which will eventually lead to lower premiums in the end.

Source: AutoQuoteNow.com


Lexus announces pricing for all-new 2010 GX 460

On Display for the First Time in North America at the 2009 Los Angeles Auto Show – New 4.6-Liter Engine and 301-hp V8 with Six Speed Transmission – New Standard Power Fold-Flat Third Row and 10 Airbags

Lexus announced the Manufacturer’s Suggested Retail Prices (MSRP) for the all-new, second generation 2010 GX 460 luxury utility vehicle which will arrive at dealerships beginning in late December. For the first time, the GX will be offered in two grades, base, which will carry an MSRP of $51,970, and Premium which will be priced at $56,765. The MSRP does not include a delivery, processing and handling fee of $875. The all-new GX 460 will be on display for the first time in North America at the 2009 Los Angeles Auto Show in December.

The second generation GX 460 that is more powerful, more efficient and more luxurious will be powered with an all-new 4.6-liter V8 engine. The engine will produce 301 horsepower and 329 lb-ft of peak torque. It is teamed with an efficient six-speed automatic transmission with sequential shift that helps provide the best-in-class V8 fuel economy. Combined city/highway fuel economy is improved by 13 percent to an EPA-estimated 17 mpg. The GX 460 has an EPA-estimated 15 mpg city and 20 mpg highway.

In addition to the powerful engine, the GX 460 brings more versatile interior. The second row seat slides 4.1 inches fore/aft to maximize passenger and cargo carrying ability. The foldable and reclining second row seats feature a 60/40 walk-in function to access the standard power fold-flat third row seats. A new center console design offers the driver more storage and functionality.

Luxury is enhanced in the GX 460 with a quieter cabin, as well as new additional standard features and options. Heated and ventilated front seats, class leading 10 airbags, rear back-up camera (without Navigation), Kinetic Dynamic Suspension System (KDSS) and full-time four-wheel drive are all standard on the GX 460. Safety features available include the Pre-Collision System, wide-view front and side cameras, Lane Departure Alert and Intelligent High Beam. Among the new luxury options are semi-aniline leather, a heated steering wheel and heated outer second-row seats.

The exterior of the GX 460 demonstrates new convenience and styling features such as the rear glass hatch for easier access to the cargo area, integrated rear door handle and rear spoiler with integrated wiper. The GX color palette is also revised and includes two all-new colors: Knight’s Armor and Claret Mica.

Lexus Enform(TM) with Safety Connect(TM) is an all-new telematics system available by subscription. Lexus Safety Connect is standard on all GX 460, while Lexus Enform is only available with navigation-equipped vehicles. Complimentary one-year trial subscriptions of Lexus Enform with Safety Connect are included. The Lexus Enform and the Safety Connect response center operates 24 hours a day, 7 days a week – every day of the year.

Lexus Insider(TM), a complimentary, opt-in service available without a subscription, is also standard on Lexus Enform equipped GX 460 vehicles. The service offers in-vehicle audio casts with useful vehicle tips and event information, as well as insights into exclusive owners’ benefits. As part of the Lexus Enform navigation platform, XM NavTraffic® and XM NavWeather(TM) are available via individual XM® subscriptions. All XM services include a complimentary 90-day trial subscription.

Source: Lexus


How much will that new car really cost you over time?

NADAguides.com Educates Consumers on Its Easy-to-Use ‘Cost to Own’ Tool

Powerful Online Tool Analyzes Eight Key Factors to Estimate Five-Year Ownership Costs

When consumers look to purchase a new vehicle, the price is usually the first thing they research before making the decision to buy. Although the Suggested Retail Price provides the consumer with the total cost for the purchase of the vehicle, one important factor is often overlooked – total cost to own. Depreciation, fees & taxes, financing, insurance, fuel, maintenance, opportunity cost and repairs must also be added in to the cost of ownership. Most often, car shoppers only consider retail price and what their monthly payment will be. While these are, of course, very important car buying decision factors, additional costs are often overlooked.

To help car shoppers, NADAguides.com has built a tool to make this cost to own research easy and provide car shoppers with a quick view of the cost of ownership for a specific car over the course of five years. The NADAguides.com Cost to Own Tool factors in the eight most important costs associated with car ownership – depreciation, fees & taxes, financing, insurance, fuel, maintenance, opportunity cost, and repairs – to give new car shoppers an accurate forecast of how much they can expect to pay and what they can really afford.

“There are many things affecting the actual cost of owning a vehicle that can be overwhelming for consumers to see the true price tag of the car they are considering,” said Mike Caudill, NADAguides.com automotive expert and spokesperson. “The NADAguides.com Cost to Own Tool removes all of the guesswork. Shoppers simply select the vehicle and trim level, enter their number of years of driving experience, the number of miles they expect to drive each year and their ZIP code and what results is a detailed report of costs along with visual aids to get a clear picture. These results can even be compared against other vehicles.”

After consumers input this basic information, the NADAguides Cost to Own Tool shows the overall five-year cost of ownership in addition to a complete breakdown of the cost associated with each factor for each of the five years.

To access this tool, visit www.NADAguides.com and click ‘Cost to Own’ on the home page or select ’5-Year Ownership Costs’ from the left-side menu of any new car vehicle details page.


Study: Every GM vehicle sold costs taxpayers $12,200

Citizen Group’s Report Puts Cost of Auto Bailout in Perspective

The American taxpayer has put up $12,200 for every General Motors vehicle sold through the beginning of 2011, and $7,600 for every Chrysler vehicle sold as well, according to a new report issued by the 362,000-member National Taxpayers Union (NTU).

The report, The Auto Bailout – A Taxpayer Quagmire, authored by NTU Adjunct Scholar Thomas D. Hopkins, Professor of Economics at the University of Rochester, does the math on what the government bailout of the auto industry – including General Motors, Chrysler, and GMAC – actually means to American taxpayers, including how much each taxpayer has contributed to the auto industry since December 2008 and how much each vehicle is costing us.

“Every time someone in your neighborhood drives home in a shiny new Chevy Silverado, remember that it cost American taxpayers more than $12,000,” said Pete Sepp, NTU Vice President for Policy and Communications. “Between this and GM’s plan to payback their bailout debt with other taxpayer funds, I wonder if all those Americans without work right now could think of any better ways to spend that money. This is a play out of the Bernie Madoff ponzi scheme playbook, and would be the equivalent of paying your Master Card bill with your Visa.”

The study found that the average American taxpaying family has invested roughly $800 in the auto bailouts so far. Moreover, the study found, the government support poured into General Motors, Chrysler, and GMAC – the financing subsidiary that supports sales at both – now stands at a towering $78.9 billion. Given that figure, and an estimate of how many vehicles GM and Chrysler will sell through the end of 2010, the study finds that each vehicle one of the bailed-out companies sells costs taxpayers $10,700.

Finally, breaking down the costs by company, the study reports that every Chrysler vehicle sold costs taxpayers $7,600, and every GM vehicle sold costs taxpayers $12,200.

The research is based upon a November study released by the Government Accountability Office (GAO), entitled “Continued Stewardship Needed as Treasury Develops Strategies for Monitoring and Divesting Financial Interests in Chrysler and GM,” a follow-up report on the “Troubled Asset Relief Program,” as well as statements and reports released from the U.S. Treasury.

Additional Findings Include:
– GMAC receives government guarantees not available to most private firms. Coincidentally, these are the same private firms that are forced to compete with GMAC’s taxpayer-assisted bank, Ally Bank.  These guarantees save GMAC about $500 million annually in interest costs.
– During the first ten months of 2009, GM and Chrysler sales fell further than other major auto producers, down 33.4 percent and 38.9 percent, respectively.
– While the prospect of repayment of GM and Chrysler loans might be expected, after bankruptcy the vast majority of the bailout funds are no longer legal obligations of the newly-structured GM and Chrysler.
– If Americans are to believe public officials’ claims that the government will eventually reprivatize the auto industry, the necessity of a thoughtful exit plan is essential. However, at this time no such plan exists, making it likely that the Treasury will not recover its investment.

“[T]he bailout has created moral hazard problems, inadvertently handicapping the progress of stronger, non-subsidized producers,” Professor Hopkins concluded. “The problems extend beyond just the auto industry, as favored status for one financial company and its bank necessarily complicates prospects for non-subsidized rivals. The time has come to stop such bailouts, and in an orderly way, to seek at least some recovery for taxpayers.”

Thomas D. Hopkins is Professor of Economics at Rochester Institute of Technology. For more information please visit http://people.rit.edu/tdhbbu/main.htm.

The Auto Bailout – A Taxpayer Quagmire is based on data obtained from the Government Accountability Office and Treasury reports on the Troubled Asset Relief Program. The study was sponsored by the National Taxpayers Union (NTU), a nonpartisan, nonprofit citizen organization founded in 1969 to work for lower taxes, smaller government, accountability from public officials, and economic freedom at all levels. For further information, visit www.ntu.org.

Source: National Taxpayers Union