Don’t Buy Based on MPG Alone

By Paul Eisenstein June 23rd, 2008

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How quickly times change. Only a matters of months ago, it seems, we were bombarded by ads touting products by the numbers: horsepower, for example, 0-60 times, or cubic feet of cargo space. Well, actually, we're hearing a lot more numbers now; what with $4-a-gallon gas, manufacturers are suddenly touting miles per gallon. But according to the folks at Consumer Reports magazine, that's no more effective a way to buy a new, fuel-efficient vehicle than basing your decision on its top speed.

In its latest issue, the CR folks have come up with an interesting way of figuring out your savings, but you want to have a calculator at hand. They took the sticker price of each vehicle and divided it by the rated mpg. Using that metric, the Honda Fit Sport ranked first, with a fuel-efficiency price of $464 mpg. The standard Fit came in a close second, at $476 per mpg. The oft-touted Toyota Prius, the world's best-selling hybrid-electric vehicle, was rated third, in the study, at $540. Perhaps surprisingly, only three hybrids made the Top Ten list: two versions of the Prius, along with the Honda Civic Hybrid.

"Just because a vehicle is fuel-efficient doesn't necessarily mean it's cheaper to live with. If you want a car with great gas mileage and must make every dollar count, look for a vehicle with a low price per mpg."

As we've also pointed out at TCC over the years, CR stresses that fuel economy is only one of the figures you should factor into your purchase equation. Look at things like depreciation, insurance premiums, repair and maintenance costs, and other factors. Be especially careful, we need to stress, if you're thinking about trading in a big gas-guzzler for something small and fuel-efficient. It might seem like a logical move, these days, but not if you haven't paid off that loan yet. You could wind up being "upside down," owing on your old car, as well as the new one. And those added costs could more than offset any savings on fuel.

Here's the CR Top Ten list:

1. Honda Fit Sport (manual): $464
2. Honda Fit (base): $476
3. Toyota Prius (base): $540
4. Mazda3 I (manual): $576
5. Toyota Prius Touring: $591
6. Nissan Versa 1.8 SL: $596
7. Honda Civic Hybrid: $605
8. Honda Civic EX (manual): $607
9. Hyundai Elantra GLS: $650
10. Scion tC (base): $658

Tags: Consumer Reports, fuel economy, honda civic, Honda Fit, hybrids, toyota prius

Posted in : Industry

Asians Overtake Detroit; F-Series Falls to Civic

By Paul Eisenstein June 4th, 2008

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If all the plant closings, production shifts, and job losses haven’t gotten out the word that there’s a massive sea change reshaping the U.S. auto industry, then the sales numbers for May should certainly complete the picture. For the first time, Asian automakers outsold the U.S. Big Three last month.

Perhaps more significant was the fact that Ford’s big F-Series pickup, for decades the nation’s best-selling vehicle, was toppled from its spot as king of the hill by the fuel-efficient compact, the Honda Civic. Indeed, the true paradigm shift is occurring in the American truck market. After long dominating the sales charts, pickups, SUVs, and other light trucks accounted for a relatively meager 43 percent of May sales.

Overall, truck sales plunged 23.6 percent for the month. Cars gained a modest but significant 2.4 percent. The F-Series, which has led the charts since 1981, was outsold by not only the Civic, but the Toyota Camry and Corolla and the Honda Accord, as well.

“May was a watershed month,” proclaimed Jim Farley, the former Toyota executive who know heads marketing and communications at Ford. “We, as an industry, are catching up with breathtaking choices customers are making.”

Those choices are tending to favor the Japanese, with their fuel-efficient lineups weighted toward passenger cars. Honda, for example, saw a 15.6 percent sales gain in May. Toyota reported a decline of 4.3 percent, however, reflecting the fact that it’s paying a price for its own foray into light trucks. In recent months, sales of the Japanese giant’s big Tundra pickup has slid notably, despite hefty new incentives. With the overall market falling faster than its own sales, Toyota saw its share of May sales jump to 18.4 percent from 17.2 percent a year ago.

Even on a sales basis, Toyota still fared markedly better than Detroit’s makers. General Motors led the slide, with a loss of 27.5 percent. The company reported its May sales data just hours after announcing plans to close four for of its truck plants – and expand production at several passenger car facilities. GM also announced it is conducting a review of the Hummer brand and could sell or even scrap the division, known for its big, gas-guzzling SUVs.

Ford, which is making new cuts of its own, saw a decline of 15.6 percent.

Chrysler, normally dependent on light trucks for about two-thirds of its sales, reported a 25.4 percent sales drop for May. The automaker had hoped to shore up its market position with a new incentive program providing buyers with fixed gas prices. That did little for models like the Ram pickup. But some of its most fuel-efficient models, including the Dodge Caliber, did post gains.

“It’s a sign of the times,” declared Farley--one dependent on the record prices being posted on gas station signs across the country.

Tags: Ford F-150, fuel prices, general motors, GM, honda civic, toyota camry

Posted in : Industry