How to Find Deals Amidst Spiking Car Prices

Many Americans received incredible deals on new vehicles thanks to the government’s Cash of Clunkers program. On the other hand, if you purchased a car last month you probably paid more than you should have.

Consumer prices for new cars increased 1.6% in October, the biggest increase since May 1981 according to the Department of Labor. Used car buyers were worse off paying 3.4% more than the previous month. Fortunately, smart car buyers can still find bargains between now and the end of the year.

• Though 2009 inventory may be low, dealers are still likely to be offering special incentives to make room for 2010 models.
• Shop low demand vehicle styles such as mid-size cars and large trucks.
• Skip the mall on Black Friday, dealerships are likely to offer big incentives to reach end-of-the-month sales quotes and keep sales numbers up over the holidays.
• Consider end-of-design cycle models, more buyers will be waiting for the updated version leaving you big discounts on the old.
• Look to Ford, Nissan and Toyota, all offering higher than average discounts. For example Ford is currently offering 0% APR financing with $1,000 cash back. Nissan is offering $2,000 cash back on the Sentra. If you’re looking to lease Toyota is offering many low cost offers expiring the end of the month.

Most importantly, shop around. Despite current high prices there are deals to be found. Request price quotes, compare models, and research available rebates and incentives.

Japanese Demand for the Prius Continues

For the sixth months straight the Toyota Prius has been the #1 selling car in Japan. Like the U.S. Cash for Clunkers program, Japan has been offering tax breaks and government subsidies for the purchase of environmentally friendly vehicles. This increase in demand has boosted Toyota’s profits after three consecutive losing quarters.

With numerous green vehicles on the market, what is it that makes the Toyota Prius so enticing to Japanese car buyers?

• Efficiency - The Toyota Prius gets up to 51 mpg. Gas prices in Japan may be at a 4 year low, but they still average over $4.00 USD a gallon.

• Pricing - Fighting to compete with the Honda Insight, Toyota has lowered Prius prices in Japan to around $19,000. Slightly less than the still affordable U.S. starting price of $22,400.

• Reliability - Long known for dependability, Toyota scored the highest in vehicle satisfaction for reliability in recent AutoPacific and IntelliChoice studies.

• Safety - The IIHS awarded the 2009 Prius top scores of “Good” on all tests.

As hybrid interest in the U.S. continues to heat up, it will be interesting to see if American car buyers follow suit. Do you have a favorite hybrid? If so why?

Must Read News for Toyota Owners

In September Toyota announced it will be recalling 3.8 million vehicles. The floor mats of multiple Toyota and Lexus models may slip causing the accelerator to stick. Toyota has recommended owners remove floor mats on the driver side to prevent this problem.

Now Toyota faces yet another embarrassing recall...

The NHTSA is investigating frame corrosion on 2000 and 2010 Tundra trucks. Toyota faced similar problems with their Tacoma model last year, recalling about 750,000 trucks. The company has offered no explanation why they did not recall Tundra models at that time.

Toyota has long been heralded as a safe and reliable car brand. Has expansion overtaxed designers and engineers leading to these problems? Or is this just example of Toyota taking action to fix design flaws, as every car manufacture should? I like to think the latter.

Have these recent recalls changed your opinion of Toyota?

Toyota's Land Cruiser: A Classic SUV

The Land Cruiser has been in Toyota's line-up since the 50's. And while the previous generation was starting to feel a little long in the tooth, this year's redesign helps put the Toyota Land Cruiser back on top in terms of on and off-road proficiency.

The Land Cruiser is a substantial and rather expensive vehicle built with tons of off-road utility and capacity in mind. So, you should only look into one if you really need king-size power and utility. But if you do, then the Land Cruiser offers incredible reliability, a new V8 and a dynamic suspension system that make on-road travel much smoother. Plus, there is a new electronic crawl mode to help the vehicle scale serious off-road impediments.

If you would like to save on price and don't mind compromising a bit of utility, the BMW X5 costs thousands less, but has 30 less hp and can't tow as much. Similar to the Land Cruiser, the Lexus LX 470 also has an outstanding reliability record.

The Toyota Tacoma Trucks Past the Competition

It's hard to find much to dislike in Toyota's compact truck. Actually it's not all that compact. With its larger frame that debuted a few years ago, the Tacoma is now a substantial midsize offering. It even gets up to full-size range with certain cabs. But putting sizing aside, what we admire about the Toyota Tacoma is its solid reliability and fast, refined performance.

There is a Tacoma body style to suit any truck buyer's needs. The interior favors practicality, but still creates a nicely-built, inviting driving environment. The four cylinder engine has competent power, but the V6 offers class-leading speed that will be hard to resist. Equipped with 4WD, the Tacoma can handle off-road terrain well. If we had to nitpick, the Tacoma could use a few more standard features and some competitors have a greater towing capacity. But this truck will make many buyers very happy.

If towing is priority, you may want to look into the Dodge Dakota, which is priced a couple thousand higher. Another solid rival to check out is the Nissan Frontier.

Toyota Highlander Re-designed and Just Right

With the last generation on the market for about 7 years, the Toyota Highlander was in need of an update. So this year Toyota gave the mid-size CUV a complete re-design adding a more powerful standard engine and more interior room. And while the third-row is still a bit short on legroom, overall the BuyingAdvice Team is happy to report that the already solid Toyota Highlander is now even better.

For 2008, the Highlander has a more striking exterior and has grown bigger in all directions. This growth in dimensions has resulted in a heavier vehicle, which Toyota has resolved by making the 3.5-liter V6 standard. But even with the added weight, the Highlander still drives with car-like ease and with a smoothness that is similar to its platform-sharing sibling the Toyota Camry. Versatile, fold-down seating is a strong part of the design and safety is top-notch.

Other utility vehicles that compete well with the newly updated Highlander is the Honda Pilot, though it has less hp. And the Ford Edge SEL, which has a few more standard features.

Will Toyota Beat GM in Sales for 2007 and 2008?

In a recent announcement, Toyota Motor President Watanabe shared Toyota's target sales for 2008. And while GM and Toyota have been neck and neck for the top-selling spot in 2007, results will not be known until January. If (and that's still a big "if") Toyota does take the global sales leader position over GM, it will be the first time in 76 years that GM will not be the top-selling automaker.

This week, Toyota seems confident enough in their growth that they shared their hopes of a 5% global increase in sales for 2008. This aggressive percentage comes even after considering the housing market slump and high gas prices in the U.S. and no expected sales increase in Japan.

GM has not released their own target forecast yet, but they have worked hard this year to strengthen their overseas sales. Toyota expects rapid growth in Russia and China, and they have benefited greatly in high-gasoline pricing as they specialize in small, efficient vehicles.

For more information on Toyota's projections for 2008, visit this article in The New York Times.

The FJ Cruiser: A New Off-Road Champion

The FJ Cruiser debuted last year taking most of its styling cues from the Toyota FJ40 that was sold in the US from 1960 to 1983. Many people are quite devoted, some of our staff included, to the original looks of the FJ40, making it a coveted collector's item. The newer Toyota FJ Cruiser is pleasing in its style, but what excites the BuyingAdvice Team most about this SUV is that it's a new, strong off-road performer on the market.

Besides strong crash test scores and being powered by the V6 that is shared with the Tacoma, the FJ Cruiser has impressive, limber suspension over off-road terrain. With its high clearance and flexible design, it has quickly become a critical favorite in the off-road adventure category. The FJ Cruiser takes on rocks and roots with ease. But due to some design choices like retro wrap-around rear windows and a high hood in the front, visibility is somewhat obstructed in both directions. Also the backseat is rather small and uncomfortable, but the front seat has plenty of room and comfort to offer.

Other off-road vehicle options that, in our opinion, have a little less style but are priced competitively are the Jeep Wrangler Unlimited X and the Nissan Xterra S.

The Honda CR-V versus the Toyota RAV4

Both the Honda CR-V and the Toyota RAV4 are Compact SUVs that were Crossover vehicles before that was even a vehicle category. Both of these CUVs debuted around the late '90s and their most recent redesign occurred within the last 2 years. And although they have similar exterior looks, BuyingAdvice believes it's worth prioritizing what you want out of a CUV before deciding between the Honda CR-V or the Toyota RAV4.

In a lot of ways, you really can't go wrong with either the CR-V or RAV4. Both are popular models that provide a relatively fuel-efficient, safe and comfortable ride. The CR-V wins in terms of base pricing by a few hundred dollars. It also has a better quality interior, seat comfort and slightly better safety scores. But the CR-V has less reliability consistency when compared to the RAV4. Also, the RAV4 has tight, responsive handling and a V6 option that has a nice output without increasing gasoline consumption compared to its own 4-cylinder option. The RAV4 is also slightly bigger then the CR-V in the inside.

Other competitors that offer slightly better prices and often match in the CR-V and the RAV4 as far as power and features are the Saturn VUE and the Kia Sportage.

The Toyota Yaris: Slightly Yawn Worthy

Last year's release of the Yaris introduced the US to the car that replaced the Echo as the most budget-friendly car in Toyota's line-up. The Yaris is a competent presence in the subcompact category with space, a decent ride and brand reliability that you can count on.  But even though the Toyota Yaris is far from a miss, the BuyingAdvice Team doesn't see all that much excellence to make this an enthusiastically recommended buy.

With a range from $11K to $13K, the Yaris's price is certainly enticing. But there are few standard features to get excited about, unless you are impressed with getting AC and tilt steering. Most things a buyer would want, like a CD player or power doors and window, are offered in packages or as options. But that certainly diminishes some of the buzz about the starting price. The ride is fun enough with a sufficient engine, but not much beyond that. ABS and side airbags are options on all trims. Without the side airbags, the Yaris only received 3 stars out of 5 in side crashes. Unfortunately, there are a lot of different things that make the Yaris fade into the background when put against some other competitors.

The Nissan Versa S Sedan will cost about $1,000 more, but you will get more hp and standard features. The Hyundai Accent could save you a couple of hundred dollars and has a better basic warranty and a bit more legroom to offer.