That is opposed to producing more sport utility vehicles, trucks and the like, the so-called gas guzzlers.

The decision made Honda look smart as a company as gas prices rocket upward.

On the flip side, the Associated Press reported June 30 that Chrysler plans to close a St. Louis-area factory and drop a shift from another plant due to falling demand for minivans and pickup trucks.

The St. Louis South plant makes minivans and will be closed Oct. 31.  With it will go 1,500 jobs, a clear indication that the gas crisis is impacting employment and hence the national economy.

Chrysler also will cut one of two shifts from another nearby plant, which makes pickups, starting Sept. 2.  That’s another 900 workers with no indication if they will be recalled later.

What went wrong?

“We have too much capacity,” Chrysler President and Vice Chairman Tom LaSorda told the AP.

Why the Wait?

But did Chrysler wait too long?

Many companies, in the automotive industry and otherwise, began shifting gears in early 2007.  The housing industry, for example, similarly slumping, began cutting back workers as early as the end of 2006.

Granted, cars are not homes, which carry much bigger financing packages and are in an industry crippled by troubles by major mortgage companies.

Chrysler still will make minivans, only at its factory in Windsor, Ontario.  It would be hard to imagine the automaker dropping minivans entirely, as its Town & Country and Voyager models have served the segment well.

The company also remains keen on pickups.

They are aware people will always need trucks for work; and minivans are more fuel-efficient than SUVs for families.

General Motors and Ford also already have announced cutbacks to combat the economic swing.  However, their model lines are not as dominated by big, non-fuel efficient cars as Chrysler’s.

Therein lies Chrysler’s challenge.  Can it change its ways fast enough to maintain market share during a turbulent time for the auto industry?

Ramming Forward with an Old Standard

Already, despite the recent factory closures, analysts say Chrysler needs to do more.  The company’s response?

Let’s hope the new 2009 Ram pickup sells well.

Even though full-size pickup sales are down more than 21 percent through May, Chrysler leaders are hopeful for the new Ram once it arrives in showrooms early this fall.

More than one American automaker believes that, despite a noticeable shift away from sport utility vehicles and pickups, the pickup market will remain in decent shape.

Chrysler is attempting to capture more of that market, picking away at the Ford F-150, and Chevrolet and GMC models.

The new Ram will have a more powerful engine, better aerodynamics, and a lighter weight for slightly better fuel efficiency.  The interior will be much improved, Chrysler says, with less shiny plastic.

But will a new four-wheel-drive truck with a 5.7-liter Hemi V-8 engine, that gets 14 to 18 miles per gallon from its 390 horsepower, fly today?

Sales of the old Ram do not shed good news.  Sales are down 27 percent through May.

Chrysler executives also said they are working on refreshing the Sebring and Dodge Avenger interiors – so they’re more like the new Ram.

Additionally they are attempting to quell as much noise as possible, and ultimately let them compete better in the market.

One thing we forgot: ever-changing government regulations.

The Associated Press reported July 1 that a lobbying group of automakers are protesting a federal agency’s goal to increase fuel economy standards significantly by 2015.

Such stories often go unnoticed by the motoring public because people tend to think anything beyond 2009 is a long ways off.

It’s only seven years out.  And imagine adding an estimated $2,063 on top of the cost of all new cars by then.

The National Highway Traffic Safety Administration has set a goal of boosting fuel economy by 4.5 percent a year between 2011 and 2015.

Now, 4.5 percent might not seem much.  But remember, it increases each year, meaning a whopping 18 percent increase over four years.

The lobbying group, Alliance of Automobile Manufacturers, represents 10 major automakers.  The Alliance claims the government is underestimating the cost of this goal, and the target compliance dates are unreasonable.

The Alliance submitted a 77-page response to the NHTSA’s request for comments on the proposed new rules, according to the AP.

It’s All About the Oil

“It would require manufacturers to expend resources at a pace that is excessive given the fact that the auto industry is already under economic stress,” the Alliance stated.

Last year, Congress passed a law that requires new cars and trucks to meet a collective fuel economy average of 35 miles per gallon, by 2020.  Automakers supported the law.

However, NHTSA may be a bit too aggressive in implementing the law.  Why, after all, is an agency with “traffic safety” in its name dealing with gas mileage?  If we get low gas mileage, traffic will be less safe?

It would seem something like the Environmental Protection Agency should be leading the charge.

But, oh well, the federal government doesn’t always make sense.  So the NHTSA is in charge, and they want a fleet average of 31.6 miles per gallon in seven years.

The Administration believes the proposed new rules would add $821 to the cost of new vehicles in 2015.  That alone should make car buyers shudder, as they will be paying for the government’s desire to protect its valuable oil resources.

But the Alliance claims the NHTSA underestimates the costs of improving technology, such as for hybrid batteries.  The Alliance claims the new rules would actually add more than $2,000 to the cost of new cars and trucks.

All Star Group of Automakers Protesting

The bottom line is consumers would not ultimately save more money in fuel, with the better miles-per-gallon figures.  Overall, car sales would take a significant hit – as if the new car sales industry, and our economy, can take another blow to the gut.

And that doesn’t take into account the other five years included in the law passed last year.  What will be required from 2016 to 2020, to get to the magic 35 miles per gallon quota?

The Alliance is comprised of General Motors, Ford, Chrysler, Toyota, BMW, Mazda, Mercedes-Benz, Mitsubishi, Porsche and Volkswagen.  Quite a group of international industry all stars.

Luckily more than 100 comments were submitted to the request for comments.  Hopefully the feds negotiate, and keep in mind the public’s pocketbook.

If they don’t, the public’s opinion of fuel economy and protecting the environment could swing in the other direction, causing a huge backlash.

If the NHTSA today has little time to deal with such issues, imagine the time lost to dealing with inquiries from the public – and media.

The Administration may soon learn how uncomfortable it is to be included in headlines and news quotes, particularly when it comes to our cars.

Recently, Edmunds.com published an interesting report about which vehicles are the least expensive to own.  They separated vehicles into several classes, from sedans to trucks, and applied a proprietary program to estimate a five-year cost of owning each new vehicle.

Unsurprisingly the Toyota Yaris topped two categories – sedans under $15,000, and coupes under $15,000.

With a manufacturer’s suggested retail price under $12,000, the Yaris is a no-brainer for those on a budget.  But the small car is not for everyone, particularly those with families.  But the new-car price coupled with 29 to 36 miles per gallon in fuel efficiency can be awfully attractive.

For that same less-than-$15,000 baseline, one could get a four-door Kia Rio wagon, with interior space comfortable enough for four.

Aside from a low new-car price tag, what other features keep the true cost of ownership down?

Hard to Guess Maintenance and Repair Costs

There is no sure-fire best way to compare vehicles in terms of overall costs.  Much depends on driving practices – how many miles driven per month, and how hard those miles are on the car, i.e. highway cruising versus bumper-to-bumper city driving.

Stop-and-go daily routines can take a toll on a vehicle.  That in mind, let’s consider maintenance and repairs.

Maintenance can be broken into two kinds: scheduled and unscheduled. 

Scheduled maintenance is performance of factory-recommended tasks set by a mileage milestone, or by the calendar.  Most new-car buyers are reminded of major milestones such as a 60,000-mile checkup.

Unscheduled maintenance includes items just needed to fine tune things that get out of whack in daily driving, like wheel alignments, brake pads, etc.

Some unscheduled items can seem to add up too often, especially on particular makes and models.  Some can’t seem to keep taillight bulbs to last long, and exhaust or cooling system parts such as hoses can drive owners batty.

Then there are repairs.  It’s hard to estimate costs for repairs not covered by warranties.

Everyone knows repairs are part and parcel with owning a car.  They hope that by having a new car, such repairs will be limited, but that’s not always the case.

Most cars over time build up a reputation for reliability or durability, or both.  People who hate visiting an auto repair shop are more likely to lean toward reliable automakers such as Toyota or Honda.

Hard to Think Beyond Fuel Costs

Of course with a brand new car, few avoid financing.  So be prepared to include the cost of interest expenses on a loan

There also is a destination charge for new cars, and sales tax and fees from the state where you live.  This usually includes license and registration fees, and remember, registration fees are an annual cost.

And who can forget insurance, now required by most states.  Beyond the car’s make, model, model year and body type, your premium will be impacted by your age, marital status and driving record.

Depreciation, the amount that the value of a car declines from its purchase price, is a cost factor, especially for brand new cars.  You won’t really know how much this costs until re-sale.

Last but certainly not least important is fuel.  How much you have to spend on gas depends, of course, on the age and condition of the vehicle, and driving conditions.

People nowadays seem to place more emphasis on this cost – perhaps more than they should considering all the other costs outlined above.  But it’s hard to ignore when you drive by any gas station today, with large signs showing prices unthinkable not too long ago.

Not a surprise, really, considering luxury cars start with high prices, and recent consumer preference for spending less on smaller vehicles due to gas prices.

Lasting Luxury

The NADA Official Used Car Guide data shows premium luxury coupes and sedans held four of the top 10 spots for vehicle depreciation for the year, with an average replacement rate of 43%.

The data studied three-year-old models in 2007. Of course today is a long way away from the automotive industry in 2007.

There are historical increases in gas prices, for one. Topping $4 per gallon was unheard of just a year ago. Now we’re already halfway to $5 per gallon.

Then there’s the sluggish economy, which can be linked at least in part to gas prices. Bottom line: people are spending less, especially on nonessential items like luxury cars.

But does it matter? Other reports state people are keeping their cars longer, choosing repairs over buying new or used cars.

Depreciation in cars is kind of like owning a house in terms of holding on to it longer. If you plan to live in a house the rest of your life, who cares about its current value on the market?

Likewise for those of us who drive cars until they can no longer roll.

Reputations Impact Annual Depreciation Rates

So what is annual depreciation in cars, and why do we care?

Depreciation is a reduction on something’s value, meaning, price you can sell it for later.

Residual value is the difference in the Manufacturer’s Suggested Retail Price (MSRP) and its price later.

This difference is usually expressed as a percentage, and most often it changes from year to year.

It is pretty well accepted that cars depreciate faster than any other purchase a person will make. The first-year depreciation on a new car can exceed 35%.

It’s hard to imagine your home value falling 35% in one year.

Usually car depreciation rates stabilize at 7 to 10% annually, after the first three years.

Much depends on make and models, and reputation. People still remember the old saying, “Found On Road Dead,” poking fun at what “Ford” stands for – and somewhere long ago there was a reason someone made it up.

In recent years new automakers to America, like Toyota and Honda have built a reputation for dependability and reliability, traits that bode well for maintaining value and limiting the hit in depreciation.

The Good, the Bad, and the Ugly in Depreciation Values

Topping the NADA report of top-10 depreciating three-year old vehicle models in calendar year 2007 was the Jaguar XJ8, with a 25% annual depreciation. The Mercedes-Benz CL-Class followed it, at 22%.

Why did their values drop so much in three years? NADA explained, “Luxury vehicle owners consistently demonstrate a strong preference for owning the latest new products in this segment.”

In other words, the wealthy like to have a new car every year, so there are too many used luxury cars out there to command top dollar. Supply is plentiful, demand low.

But third on the list is the Kia Rio; sixth was the Suzuki Verona; and eight was the Hyundai Accent. Hardly car choices for the rich.

Tiers of Depreciation

A report by Neil Terry in International Advances in Economic Research placed cars in tiers in terms of depreciation.

It compared 15 car brands for reliability, safety, initial price, and name brand, from 2000 to 2004.

Tier one was the best, with an average annual depreciation rate of 13.4 to 14.1% – belonging to Honda and Lexus.

Tier two was Volkswagen and Toyota, with average annual rates of 16.5 to 16.8%.

Tier three automobiles were Nissan, Mercedes, BMW, Hyundai, and Mercury, at 18.9 to 21.2%.

Mercedes and BMW in the same tier as Hyundai?

Tier four was Chevrolet, Chrysler, and Saturn, at 25.4 to 27.5%. The last tier listed included Dodge, Ford, and Buick, at 31.1 to 32.6%.

Surprised? The study lends some truth to a statement often heard about Japanese automobiles: they hold their value well.

For eons, it seemed, Ford’s F-Series trucks claimed the throne.

No longer. Consumers have reacted strongly to rising gas prices and are going smaller. No surprise there.

Honda’s Small Car Strategy

What also is interesting is how seemingly stubborn stance to stick with its smaller, fuel-efficient cars - and void dabbling into the big truck or sport utility markets - is now paying dividends.

For instance, www.autoblog.com reported in June 2008, “Honda has been caught by surprise by the sudden shift in demand to smaller cars.”

Production of Honda models for American consumers is limited because the company can only build so many cars. For example, its current U.S. infrastructure allows it to build only 500,000 Fits a year for the whole world.

A nice problem to have. Overall, Honda’s strategic decision to stay small has positioned the company in envious state - selling cars at a frenetic pace when most automakers are cutting back production.

What’s better than doing it in a convertible?

Kelley Blue Book’s Top 25 Convertibles

Kelley Blue Book recently listed its top 25 convertible models, starting with the pack leader, the Ford Mustang.

Some entrants are surprising, others not so much. They all bring to the table a feature or two attractive to all sorts of drivers, from more engine oomph to powerful sound systems to enjoy tunes while rolling down the highway in the open air.

The list was compiled based on interest shown from KBB website visitors, in terms of New Car Pricing reports. Basically these are the convertibles people are asking about most.

Ford Vs. Chrysler

Some say the Mustang’s main rival is the Chrysler Sebring, which interestingly ranked No. 8 in the KBB list of top convertibles. The Mustang is considered more hip, while the Sebring gets better gas mileage and has more space inside.

The cars don’t seem like logical competitors, but industry experts cite them as such.

The Mustang’s SHELBY GT trim also carries a manufacturer’s suggested retail price starting at $49,000; while a fully equipped Limited-trim Sebring can be found in the low $30,000s.

Mustang

Not surprising was the Mustang’s strong showing. Ever since Ford, for the 2005 model year, went back to exterior stylings of the original Mustangs of the 1960s, the model has enjoyed a renaissance.

Ford executives called the new styling “retro-futurism,” and it has proved popular with autobuyers.  For convertibles, the model comes in five trims; let’s focus on the 2-door SHELBY GT500 Cobra - and its 5.4-liter V8 engine.

Where the GT’s 300-horsepower V8 won’t save you at the pump, but it will open eyes upon acceleration as well as on the open highway. You can imagine a summer trek through the desert to Vegas in one of these beasts.

Price is always a major consideration when the economy lulls and gas prices rage uncontrollably.

Seabring

Those interested in improving the ride should check out the Sebring’s MyGIG, an optional hard drive-based system that includes:

• Navigation
• Traffic information
• MP3 music
• A high-speed USB port
• Voice recognition
• Voice message recording
• Bluetooth hands-free cell phone connectivity.

A rear-seat DVD video system is icing on the cake.  Ask about its dual headphones and audio and gaming capability.

Added in 2008 was an all-wheel drive Limited trim, and standard features including a six-disc compact disc player and Sirius Satellite Radio.

Eos

Surprising on the list of top convertibles is the Volkswagen Eos, which comes in six trims - all with hard tops. Of interest in how VW integrated a glass sunroof into the top of this new four-seat convertible for the 2008 model year.

Glass sunroof in a convertible?  What’s the world coming to?

It isn’t your parents’ Volkswagen when the MSRP starts at nearly $30,000, and can jump to the $40,000s with all goodies. But VW went all out with the Eos and it appears to be paying dividends.

Added for 2008 was a standard, powered, 12-way driver seat. Front passengers also will appreciate the tall front deflector that extends from the top of the windshield frame when needed.

An optional 10-speaker, 600-watt audio system has gotten raves from industry watchers.  All told, these features make for a fine ride, and obviously the Eos has caught the eyes of those who review new cars.

Miata

Following the Eos on the KBB list is the Mazda Miata MX-5, the Saturn SKY, Mini Cooper, Pontiac Solstice and Toyota Solara.

The Solara was noted for its slick coupe styling, plus a large back seat and the brand’s reputation for longevity.  Resale values carry a lot of weight nowadays.

A drawback is fans of the clutch: few trims come with manual transmission.

Solara

A new Toyota Solara convertible can be had for just less than $21,000. For modest price bumps you can add a V6, or a Sport trim.

Compare a Solara with all bells and whistles, priced up to a high of $34,000, to some of the convertibles mentioned above and you can see why Toyota keeps tinkering with the concept.

Today people value strong products with, well, value. Toyota knows what it has with the Solara - even moreso with a convertible trim.

In fact, it seems to be moving in the other direction: minivans are just as popular today as ever.

People Love Their Minivans

Why? Well, families are still very much attracted to all the things a minivan can do. Carry multiple passengers, haul large loads, skip over to school or go shop, moms and dads alike have become attached to their minivans.

Some of the top minivans today come with attractive extras, or gizmos. It’s hard to imagine a four-wheel drive minivan, but Toyota offers one with its Sienna.

Satellite television and/or radio service, Bluetooth capabilities, rearview video and more are offered in many of today’s newer models.

Even fuel efficiency can be seen as a plus. They’re not going to outdo the smaller hybrids, but make no mistake, most of the top-selling minivans get decent gas mileage, at 18 or 19 miles per gallon.

Not shabby considering the weight they can carry.

Top Selling Minivans

Here is a look at some of the top minivans out there.

Town & Country

The Chrysler Town & Country has long been considered a luxury model in the minivan world. Its second- and third-row seats fold into the floor and are less cumbersome to deal with than seats that have to be removed completely from the vehicle.

Minivan owners used to have to figure out what to do with the removed seats, now they don’t have to worry about it with the Town & Country.

In recent years Chrysler chose to style the T&C more toward males, even bolstering its powertrain for more oomph.

Add class-exclusive options such as satellite television (complete with three family channels), and you have a pretty stylish minivan.

Sienna

Toyota has had a hit with its Sienna, delivering its reputation for reliability into the minivan realm.

Some call it “the Camry of minivans,” and for good reason. Its proven popularity has rivaled the Toyota sedan, as families grow and need a larger vehicle.

The Sienna comes in both two-wheel and four-wheel drive capabilities, getting a combined 18 or 19 miles per gallon.

Odyssey

Honda has been able to boost fuel efficiency in its Odyssey. The Japanese automaker tinkered with the exterior for the 2008 model year, and the result was a fresher, more hip appearance.

Added were new wheels, and interior alterations that expand the list of fabrics and colors.

Quest

Nissan is another Japanese manufacturer that has worked hard to improve its minivan offering. Its Quest does not look like your mother’s old van.

The exterior style can appear trendy, and what attracts many buyers is a package of neat interior features.

The SL trim has a power-sliding left-side door, automatic on/off headlights and the RearView monitor system; the SE adds standard Bluetooth and XM Satellite Radio.

The Quest also is among the most fuel-efficient of the minivans, at 19 mpg.

Sedona

Across the Sea of Japan, Kia presents its Sedona, known to be lower-priced but still delivering a vehicle that can meet any family’s needs.

The South Korean automaker offers the Sedona in America with a 3.5-liter V6 engine producing 195 horsepower, and a five-speed automatic transmission.

The Sedona was Kia’s top-selling vehicle in the United States when it was launched in 1999.  It comes in a short-wheel base model, a long-wheelbase mid-level LX model, and the long-wheelbase EX model.

Which One Do You Want?

Do you want the most affordable, or is safety your biggest concern? The choices are endless, good thing there are so many different minivans to choose from.

Interest in improving driver and passenger safety in cars increases every year. Things like side-impact safety curtains were unheard of only a decade ago.

Sweden - Cutting Edge Safety

In fact recently, according to Reuters, the head of traffic safety for the Swedish road administration said we now are in the “biggest revolution in the auto industry since the seatbelt.”

And Volvo is at the forefront. The same news article stated Volvo’s plan to create an “injury-proof” car by 2020. Some industry analysts view the announcement as the company’s attempt to maintain its high level of consumer perceptions regarding safety

Now, the concept may be dangerous to reckless American drivers. After all, if an automaker states that its vehicle is “injury proof,” you know some knucklehead will test it.

But the thought is interesting and offers a good platform to discuss auto safety, and Volvo’s history with it.

Safety Through The Years

Volvo’s history regarding passenger safety is well documented. Laminated glass in car windows was introduced with the PV model way back in 1944. 

Motorists certainly were impressed with windows that wouldn’t cut you up when they brake.

The modern three-point safety belt was patented by a Volvo engineer in 1958. A year later it was standard on all Volvo models.

The first rear-facing child car seat was introduced by Volvo in 1964. The company unveiled its own booster seat 14 years later.

That third brake light mounted at the top of your rear window? Blame Volvo. 

It introduced it in 1986, and the U.S. government mandated it for all new cars that same year.

In 1995, Volvo was the first to install side airbags as standard equipment in all models.

The 2007 Volvo S80 is one of five vehicles that received the highest rating possible, five stars, in the government’s front, side and rollover crash tests. The flagship of Volvo’s sedans comes with leading-edge safety features.

Today’s Models

Today, the V8 all-wheel drive comes with Volvo’s Personal Car Communicator (PCC) security package as standard. Nice touch, boosting engine power along with safety features.

The PCC allows a driver to review the security level and learn whether the alarm is set, before getting in their car. Plus, a heartbeat sensor warns if a person is hiding inside!

Of course you pay for that peace of mind…the manufacturer’s suggested retail price for a 2008 Volvo S80 4-door sedan is $49,955. 

Today’s carbuyers certainly must make tough choices, such as whether to go smaller and save a chunk of change in gas costs, or pay the premium for a safer ride.

Follow the Leader

Other carmakers are not far behind. Many, including Volvo, are using aviation-like systems to prevent automobile mishaps before they occur. Use of radar in today’s new cars is not unheard of.

Ford is now adding safety features in their models from the Volvo division.

In the simplest terms, automobile safety is avoiding car accidents and minimizing the harmful effects of mishaps to human life and health.

The industry’s attention to the matter is a no-brainer. Despite all auto safety improvements through the years, traffic injuries still represent about 25 percent of injury-related deaths in the world, with an estimated 1.2 million deaths as of 2004 according to the World Health Organization.

On top of that, there were 50 million car-crash injuries.

Automotive history is littered with safety breakthroughs - and many different automakers can claim credit.  Among them:

• General Motors performed the first barrier crash test in 1934.
• SAAB in 1949 applied aircraft safety engineering and produced a model with a safety cage.
• The Mazda RX-8 was the only sport utility vehicle to get a 5-star rating by the NTSB in June 2004, when SUV rollovers were commanding headlines.

Gone are the days of Hummer or Avalanche beasts on roadways. In their place are smaller vehicles cheaper on the pocketbook and easier on the atmosphere.

You Don’t Have to Spend a Fortune

Certain models have surfaced to the top of the list of new car sales. Many good, solid cars can be purchased for less than $20,000.

The following is a look at just a few. Some are pure fun, others add great fuel efficiency, and sometimes even some nice extra gizmos thrown in for good measure.

Fit To Be Tied

Honda’s Fit is in its second year on American roadways, though it’s been sold elsewhere in the world since 2001.

At first motorists questioned the subcompact’s boxy look. However, as noted above, astronomical gas prices have changed a lot of minds.

A gas-sipper of the truest sense, the Fit gets 27 miles per gallon in the city and 34 mpg on highways.

People also appreciate that they can configure its seats in various formats, making it adjustable to individual lifestyles. It’s a flexible four-door hatchback.

Most Fit owners talk about its drivability. Its 109-horsepower engine and agility indeed makes if a fun drive.

And the $15,000 new-car price tag also puts a smile on many faces.

The Fit is one of many “box on wheels” cars that surfaced in recent years, after the Scion xB turned heads several years ago.

Scion Down the Road

The Scion xB is another strong car for under $20,000.

It’s basically a “punker car” - designed to be anti-conforming and to thumb the nose at naysayers.

Some nice standard features include steering-wheel mounted audio controls, integration for iPod, and a choice of three wheel designs.

Rabbit Handling

Also fun to drive and easy on the pocketbook is the Volkswagen Rabbit. 

Its 2.5-liter engine zooms enough, and VW has engineered the Rabbit for a comfortable and stylish ride.

Built by German engineering, this little car isn’t just affordable and decent on gas, it is fun to drive and offers handling not often found in American vehicles.

A Focus On Hipness

Most drivers would not consider the Ford Focus as hip, but nowadays the model comes with a music and phone integration system that lets you order a song to be played just by saying its name.

Plus the manufacturer’s suggested retail price of $14,395 to almost $17,000 with all bells and whistles seems pretty hip to us.

While the interior design may be a bit dull, Ford makes up for it in rideability. The term “plush ride” has been used to describe the Focus, and it gets great fuel economy for a small American car.

Mazda Madness

In terms of compact cars, the Mazda3 seems to just keep going and going and going.

Now available in four- or five-door versions, the vehicle is fast and also rather hip, but don’t let that fool you.

The Mazda3 is comfortable inside, contains many practical amenities, is reliable and nicer on the pocketbook at the pump.

Suzuki Utility Vehicle

It’s hard to believe a new crossover can be had for less than $20,000, but the Suzuki SX4 fits the bill.

It’s sporty outside, a far cry from the squarish Samurai that attracted so many twenty-somethings in the 1980s. 

The SX4 carries the lowest new-car price than all all-wheel-drive vehicles in America.

Cool Doesn’t Have to Be Expensive

As you can see there are plenty of cool cars out there with affordable price tags. Whether you are buying something for your recent grad, your lady or your family.

Particularly a used vehicle.

April 2008 was the first time in more than 20 years that cars outsold trucks and sport utility vehicles. It was the worst month in a decade in terms of new-car sales, down a full 7 percent from the previous year.

Changes in the Used Car Market

Meanwhile, since January 2008 used car prices have risen consistently, to today’s $13,000 average. 

On the other hand, wholesale used truck prices have dropped from about $16,500 a couple of years ago to today’s $14,000 average.

Additionally this year there was not the typical drop in gas prices associated with summer and the coming of warmer weather. Yet another reason to focus on a car and its superior fuel efficiency compared with SUVs and trucks.

On the flip side, it might be a good time to by a truck, since the demand appears to have waned, hence better prices. Think Toyota Tundra, Kelley Blue Book’s 2008 Best Resale Value Award winner.

The Best Time To Buy a Used Car

Best Day of the Week
For days of the week, think Fridays.

With the weekend approaching, salespersons might be more amenable to a quick sale to secure a commission early - and also possibly get off the lot sooner to enjoy a night out.

Best time of the month
Aside from economic factors, the best time to buy a used car is the end of the month, because many dealership and lots want to clear out inventory.

Some would go a step further and say the last weekend of any month, and even Monday night if it falls at the end of the month. A lot of dealerships remain open late on Monday nights.

On these last-of-the-month weekends, dealerships often will offer an extra $100 or $200 cash to the salesperson who makes the first sale of the day; or up to $1,000 for the staff member who sells the most cars during the weekend.

Best time of the Year
Additionally there are seasonal considerations. 

It’s no secret why you hear all those car sale commercials before Christmas and before the New Year.

The holidays are slow times, and the start of a new year means new models are about to come out, so, again, car sellers want to reduce inventory or older models.

Lack of Demand Means It’s A Good Time To Buy

Back to the broader subject, mid-2008 is a great time to buy a car because of supply and demand.

Or, to the point, demand.

For a variety of reasons - gas prices and the loan industry meltdowns high on the list - people are not spending money. Not just on cars, people aren’t buying anything.

Cars are high-ticket items and don’t remain high on the list of needs during an economic downturn. Basically people are hanging on to older cars longer, paying for repairs if necessary.

That means less and less cars are selling at used car lots and dealerships, and ultimately the prices are lowered to entice more sales. Similar in economics to the real estate industry.

Meanwhile American automakers continue to churn out brand new cars and pay their thousands of employees. Ultimately they need to get sales any way possible, and that means price reductions.

Indeed, this year is a great - perhaps best - time to buy a used car.