Report: Could Upfront Pricing Benefit Both Shoppers and Dealers?
Shopping for a new car is full of mistrust. Given the tremendous flexibility in vehicle pricing, even if shoppers manage to secure an excellent deal, they often leave the dealership with no reassurance of it, leaving some thinking that they've been scammed.Yet dealerships have been seeing their per-vehicle earnings withering away, and hundreds of them have been forced out of business over the past couple of years.
New study results, commissioned from the pricing intelligence firm TrueCar, expose one of the roots of that mistrust: Shoppers think dealers are earning more—a lot more—than they actually are per vehicle.
According to data from TrueCar's Online Automotive Buying Behavior Report, based on a poll commissioned to Synovate, new car shoppers think that dealerships earn a $4,000 commission on a $40,000 car—a profit of 10 percent or more—while the majority think that an average of $1,800 (4.5 percent) would be fair. Meanwhile, more than half (53 percent) of new-car shoppers think that the dealer will have the upper hand. Nearly a third of both new-car and used-car shoppers thought that they would pay too much for the vehicle.
The reality is that car dealers make between one and three percent on each new vehicle sold—and that figure can even figure below the $150 mark for some small cars.
Yet 91 percent of respondents thought it was a good idea to require that the dealer provide a no-haggle upfront selling price, and four out of five would be likely to use a car-buying service to save money and time.
Nearly nine out of ten respondents in the survey agreed that seeing what everyone else paid for the same car in the past 30 days would be helpful, while three out of five thought that they would get a good deal. Fifty-eight percent expected some sort of pressure from the dealer, while only 56 percent thought that the dealer would have the vehicle they wanted on the lot. Only 45 percent through that the process would be a pleasant experience.
Those figures alone are of course in the interest of what TrueCar helps provide, but they're a strong argument for better transparency in vehicle pricing, and it sounds like both shoppers and dealerships would be happier if the numbers were out in the open.
[TrueCar]
This story originally appeared at The Car Connection
Feds To Delay 2012 Rearview Camera Requirement
A new safety requirement that would require rearview camera systems in all new vehicles by 2014 might be delayed, as the National Highway Traffic Safety Administration (NHTSA) has asked Congress for more time to finalize the new rules.As we reported a few months ago, the U.S. Department of Transportation and NHTSA (its vehicle safety agency) proposed that all vehicles provide an unobstructed, 180-degree view rearward when the vehicle is being reversed.
We're all too aware that rearward visibility—especially when parking—in many of today's utility vehicles, as well as some other types of vehicles—can be quite horrible. Take a look at the Safety tab in any of our new-car reviews and you're likely to find at least a sentence summing up outward visibility.
And contrary to what some shoppers first think—that they'll get a better view out in a larger utility vehicle—bigger and taller vehicles are some of the worst offenders. Consumer Reports has in recent months started testing vehicle blind-spot zones in vehicles—measuring the how close you can get to a toddler-height cone while still seeing it from the driver's position—and found outward visibility from some full-size pickups and sport-utility vehicles to be the worst. The best new models (with the shortest blind zones) included the 2011 Toyota Yaris, 2011 Mazda MX-5, 2011 Volvo C30, and 2011 MazdaSpeed3.
The proposed federal requirement would put back-up cameras into ten percent of all vehicles by 2012, then 40 percent by 2013 and all vehicles by 2014.
According to the National Highway Traffic Safety Administration (NHTSA), nearly 300 people die each year from back-up accidents, and about 18,000 annual injuries are attributed to the lack of rearward visibility in such incidents in driveways, shopping-center parking lots, and the like.
NHTSA estimates that 100 of those lives could be saved annually if vehicles had back-up camera systems. About that many annual fatalities involve children age five and younger.
Currently these systems are often packaged with navigation systems, which themselves are often part of costly upgrade packages adding thousands of dollars to the sticker price. That's why, although they're available in a wide range of models, they're not equipped in as many vehicles as you might think.
But it won't cost automakers thousands to add these devices. The regulation, according to government estimates, would add up to $203 in costs per vehicle, while it could cost as little as $58 for vehicles already with the display.
For those watching the bottom line on vehicles, this isn't the only thing adding cost to new vehicles. The higher-tech engines and transmissions, along with weight-saving materials, required by looming corporate average fuel economy (CAFE) requirements.
This story originally appeared at The Car Connection
Polk: Ford Gained Market Share Across Much Of Model Line
Between 2008 and 2010, the U.S. auto industry—and the auto market as a whole—went through a sea change. In addition to bankruptcies from GM and Chrysler, discontinued brands, and retired model lines, the economy forced many brands to make hasty changes to their model lines.And somehow, Ford managed to continue the upswing that it had started heading into the period—with some impressive gains in sales and market share.
R.L. Polk & Co. has helped put this into perspective: In a post, analyst Tom Libby explains that Ford's overall gain in market share from calendar-year 2008 to CY 2010 is more than the entire market share of Subaru, Mazda, or Volkswagen.
Over those two years, Ford has gained a very impressive 2.5 percent of market share, up to about 14.8 percent for 2010.
What's even more impressive is that the market share hasn't been earned through just a few halo vehicles. During those two years, eight of the seventeen Ford models have gained market share.
The Ford Fusion, F-Series, and Escape each gained a half a percent or more from 2008 to 2010. while only the Explorer, Crown Victoria, and Expedition (along with the discontinued Taurus X) lost market share—and even in all of those cases it was a tenth of a percent or less.
Those are great signs for the brand and the company, as its success hasn't been rooted in a particular vehicle line, or type of vehicle—although it does remain somewhat dependent on the F-150 as a profit center. The brand also otherwise looks well-positioned for rising gas prices—a heightened concern over the past several weeks given recent political upheaval throughout the Middle East and North Africa.
According to Autodata—and cited by MSN Money—Ford is one of just two, out of all the U.S. and Asian automakers, to reduce its average incentives last month—while its sales grew 13 percent.
Ford is expected to finish February with about 16 percent of the market, ranking it after General Motors but ahead of Toyota.
This story originally appeared at The Car Connection
Former MADD Leader Arrested For Drunk Driving
If something hilarious yet tragically ironic is going to happen, chances are it will happen in Florida, men urinating on chicken at the grocery store notwithstanding. The latest of Florida's wacky produce: former Gainesville Mothers Against Drunk Driving chapter president Debra Oberlin was arrested for, you guessed it, drunk driving in Gainesville.
Pulled over for veering across lanes of traffic at about 1:10 a.m., Oberlin had bloodshot eyes and smelled of alcohol, according to the incident reports. Oberlin failed a field sobriety test.
Oberlin's blood alcohol level was then found to be between .234 and .239 according to two Breathalyzer tests, though she says she only drank four beers before hopping--or more likely, stumbling--into her car.
Thank you, Florida, for your fantastic fruits. MADD: you got some 'splaining to do.
[Gainesville.com]
This story originally appeared at The Car Connection
2012 Mazda5: A Smart Pick, But Lean Feature Set Might Limit Appeal
For most of the time that it's been on sale in the U.S. market—nearly five years—the Mazda5 has been an odd one out in the market—and a niche vehicle, despite its conventional minivan silhouette.As Mazda points out, compared to the Dodge Caravan, which kicked off the U.S. minivan craze back in 1983, the 2012 Mazda5 is actually about five inches longer—and about the same width and height. Yet it manages to package in a usable third row of seats, and has 157 hp from its four-cylinder engine while the Caravan was under 100 hp.
However minivans, as most of the U.S. market knows them, have become big and bloated, and nearly as big as the full-size Country Squire–esque wagons they were eschewing in the first place.
By sticking to a leaner, more modest minivan, Mazda has surely locked onto a healthy niche market. Over the past several years, the automaker has been quietly selling increasingly more Mazda5 models with virtually no advertising or marketing dollars. And for those who want this kind of vehicle, there aren't any alternatives: Mazda found that 29 percent of buyers for the outgoing generation of the Mazda5 seriously considered no other model when vehicle shopping. That's an enviable claim, for certain.
In looking at its current buyer set, affordability ranked near the top among reasons for purchase. So with the full redesign of the Mazda5, the brand didn't innovate; rather it took the Mazda5 package, gave it a little more refinement and quite a bit more design flair from the outside, and didn't go overboard with features and options that would drive the price up.
The former generation of the Mazda5 was brought over as a sort of experiment—and Mazda ended up selling far more than expected with no significant marketing or advertising. This time there are a few signs that the 2012 Mazda5 was designed with Americans in mind (such as the more ample seat cushions)
As we noted in our First Drive of the 2012 Mazda5, the new version of this van remains one of our favorite people-mover picks as it retains the surprising fun-to-drive qualities of the previous version--and even improves on them. But the resulting 2012 Mazda5 smacks of cost-consciousness. Its interior materials feel very basic and on a budget; there's no direct-injection engine; no power doors, hatches, or seats (though you don't need them here); and it has no USB plug, no iPod controls, and no available navigation system.
Mazda says that it's anticipating that buyers will be bringing their own portable navigation systems or nav-equipped smartphones on board, but it seems to us that an affordable nav option would have a place. At the same time, the typical family that ends up buying a Mazda5 is college-educated and makes just over $90k a year, and it seems that connectivity for their iPhones and iPods would be a priority.
Sound systems are very modest, too. The base system sounds well enough (albeit a little muddy with bass response), but it felt like an old-generation system with a fresh faceplate; it's tuning of Sirius stations was frustratingly slow, and the old orange-lit display will only show a few characters.
Mazda's choice not to innovate with connectivity or entertainment in the Mazda5 might help sell more in the short term, and focus the message around what this van does well: transport a small family with a more responsive, rewarding driving experience. But with the arrival of the Ford C-Max (which we've driven in Euro-spec form) early next year—with MyFord Touch, Sync, and Sony audio on the options list—families looking for a van-like vehicle that's not as mammoth as so-called minivans will have some fresh options.
This story originally appeared at The Car Connection
2012 Mazda Mazda5: First Drive
There's a certain charming simplicity about the 2012 Mazda5. Yes, it's a minivan. Yes, it's a little lower, sportier, and more fun to drive. And yes, it's configured for the needs of small families—simple, lean, and value-priced.You can easily open or close the non-power sliding doors with your thumb and forefinger; the hatch is easily closed and at arm's height for even shorter moms; and second- and third-row seats fold forward without a lot of straining or reaching.
From a few paces back, the Mazda5 looks like a well-designed 7/8-scale minivan—one that might park and maneuver a little easier, too. And it does. Get behind the wheel, and there's much more to love—excellent steering, top-notch poise and roadholding, and an all-around frisky feel on the road is some of it, along with a very affordable sticker price and a good list of features for the money.
To put it all into perspective, the Mazda5 is actually five inches longer than the original Dodge Caravan, but nearly two feet shorter than what are now called minivans, like the Honda Odyssey, Dodge Grand Caravan, and Toyota Sienna. In truth, each of those vehicles now nearly take up the space of the old boatlike station wagons they were intended to replace.
Modest but sporty
With modest but sporty underpinnings borrowed from the Mazda3 s models, the Mazda5 has the makings of a vehicle that's more fun to drive than the typical van. Under the hood is the familiar 2.5-liter four-cylinder 'MZR' unit that's also used in the Mazda6 and CX-7, and here it makes 157 horsepower at 6,000 rpm and 163 pound-feet at 4,000 rpm. A six-speed manual gearbox is offered only in the base Sport model, while the five-speed automatic that's optional in the Sport is standard in the Mazda5 Touring and Grand Touring models. Underneath this front-driver is a MacPherson strut suspension setup in front and a multi-link, 'E-link' setup in back that helps provide stability under a wide load range.
While that's much the same as with the last-generation Mazda5, what has changed is its tuning. Mazda admits that with the former version, which was legendary for its responsiveness and almost edgy feel, passengers could feel a bit tossed around. In order to address that, without meddling too much with Mazda's fun-to-drive qualities, engineers softened damper response and roll stiffness slightly while stiffening bushings and raising spring rates, to yield just a little more roll and soften turn-in very slightly, while retaining that excellent body control.
Had Mazda not told us about it, we might not have known the difference, in all honesty, as the Mazda5 still feels so much sportier, more settled and communicative than anything else in the class. Even right up on the limit of adhesion, the Mazda5 has the body control of a small sport sedan; the body stays relatively flat, and there aren't any of the queasy body motions you get in left-right transitions in most crossovers. It takes a lot to upset its composure. Likewise, slam on the brakes at freeway speeds, even, and the four-wheel disc brakes stop the 5 quickly, with a firm, assuring pedal and none of the dramatic nosedive that other people-movers exhibit. And the Mazda5 has excellent quick-ratio hydraulic-assist steering (with an electric pump) that's weighted about perfect and unwinds out of tight corners better than most sporty front-drivers.
(more...)NHTSA Investigation Concludes No Electronic Flaws In Recalled Toyotas
Unintended acceleration, Pedalgate, whatever the tag line, the federal government investigation into Toyota vehicles recalled for their purported propensity to suddenly take off, beyond driver control, concluded today that there are no faults in Toyota's electronic throttle control systems.
The finding is significant, noting that the only known causes of of the unintended acceleration and related problems are due to mechanical defects with the pedals and floor mat systems. You may remember the NHTSA came to the same conclusion in a preliminary report issued last August. Another NHTSA report found that the drivers themselves were often to blame.
As Transportation Secretary Ray LaHood put it: "The jury is back. The verdict is in. There is no electronic-based cause for unintended high-speed acceleration in Toyotas. Period. Our conclusion--that Toyota's problems were mechanical, not electrical--come after one of the most exhaustive, thorough and intensive research efforts ever undertaken."
Engineers at NASA assisted the NHTSA in making the finding, studying Toyota's vehicles over a 10-month period at the request of Congress.
Toyota, however, will take the result as cold comfort: the damage to its reputation has been done. The mechanical issues with its pedals and floor mats, after all, remain as the root factor in what eventually became a record recall of over 12 million vehicles around the world and over 5 million here in the U.S. Toyota was eventually fined $48.8 million for its treatment of the recalls.
For a thorough recap of the Toyota pedal-entrapment and sticking pedal recalls, Bengt Halvorson's "Toyota And Lexus Recall: Everything You Need To Know" wraps it all up tidily.
[Washington Post, Detroit News]
This story originally appeared at The Car Connection
