Buying A Car Help

Honda Accord Crosstour

Given the popularity of its coupe and sedan siblings, much was expected of the new Accord Crosstour, an affordable midsize SUV. Sadly, it doesn’t match the hype. It’s luxurious and is backed by Honda’s superb history of reliability, but commands an expensive price tag. Plus, with only 25.7 to 51.3 cubic feet of cargo space, it doesn’t provide much utility. Critics are also split over its odd exterior styling. Because of these cons, the Accord Crosstour ranks near the bottom of its class.

MSRP: $29,670 - $36,220

Dodge Caliber

Despite receiving a mild refresh, the 2010 Caliber still trails behind in the class of affordable compact wagons. It looks bold and provides a respectable 18.5 to 48 cubic feet of cargo room, but is marked by subpar interior materials, underpowered engine options and sloppy handling. For 2010, Dodge has discontinued the relatively sporty SRT trim and no longer offers a lifetime powertrain warranty. With such cutbacks, it’s difficult to justify buying the 2010 Caliber.

MSRP: $17,090 - $20,925

Lexus HS Hybrid

Drivers don’t know what to make of the Lexus HS — the first luxury car to emphasize fuel economy over all else. Its interior comes jam-packed with loads of easy-to-use convenience and safety features, but doesn’t meet typical high levels of Lexus quality. And while its combined 35 mpg fuel economy is great for an entry-level luxury car, it’s nowhere near as impressive as the 50-mpg Prius. As such, it doesn’t excel as either a Lexus or a hybrid. The all-new HS ranks at the bottom of the Upscale Midsize Car class. On top of everything else, the HS has also been included in a global safety recall, along with the Prius, due to a defect with the cars’ braking systems.

MSRP: $34,200 - $36,970

Chrysler Sebring

Don’t be fooled by the elimination of its hood strafes — which most reviewers found hideous — the 2010 Sebring is the same bad investment as it ever was. While its lower trim engine options are underpowered, its strongest engine features dismal fuel economy. Reviewers also complain that its cabin features low-quality materials and not much cargo room. The Sebring’s long-term cost of ownership is also a cause of concern, especially now that Chrysler is no longer offering a lifetime powertrain warranty. Not surprisingly, the Sebring ranks near the bottom of the Affordable Midsize Car class.

MSRP: $22,115 - $34,705

Land Rover LR4

Last year’s LR3 is redesigned for 2010 to provide greater on-road performance and more intuitive controls. However, auto writers point out that the LR4’s lackluster city/highway fuel economy (12/17 mpg), Land Rover’s poor reputation for reliability and high sticker price significantly detract from its overall value. And while it’s a superior off-road performer, it’s highly unlikely that anyone would take an SUV this expensive and luxurious over rough terrain. The LR4 ranks near the bottom of the Luxury Midsize SUV class.

MSRP: $47,250 - $47,250

Hyundai Genesis Coupe

A newcomer to the class of affordable sports cars, the Genesis Coupe provides real rear-wheel-drive sports performance for a fraction of the price. Shoppers can choose between a 210-horsepower turbo I4 engine and a 306-horsepower V6. Plus it features a sleek exterior design, an accommodating four-passenger cabin and good scores in federal government crash tests. Not surprisingly, it debuts near the top of its class.

MSRP: $22,000 - $31,000

Ford Transit Connect

The all-new Ford Transit Connect may be the best thing that’s happened to small businesses since QuickBooks. This workman’s van provides a whopping 135 cubic feet of cargo space, an impressive city/highway fuel economy of 22/25 mpg, and loads of business-friendly features. These include an available in-car computer system that uses 2G and 3G networks to access records and track fleet activity. The Transit Connect is so well-liked that it was recently voted North American Truck of the Year.

MSRP: $20,780 - $22,350

Mercedes-Benz E-Class

Redesigned for 2010, the E-Class is an all-around better car than the model it replaces. It provides sportier handling dynamics, an elegant exterior design, a lavish cabin and an old-world feel that few luxury large cars can match. It also features revolutionary safety systems like Attention Assist, which utilizes behavioral detection technology to alarm drowsy drivers — and comes standard. Best of all, the new E-Class is cheaper than last year’s model.

MSRP: $48,600 - $58,800

GMC Terrain

The newly-introduced GMC Terrain adds one heck of a value package to the class of affordable compact SUVs. It shares its mechanical elements with the Chevrolet Equinox, but provides a bolder exterior design and loads of snazzy yet practical interior features. Among them is a standard rearview camera, an iPod interface and a sliding rear seat. Best of all, the Terrain affords excellent fuel economy and even leads its class with a highway fuel economy rating of 32 mpg.

MSRP: $24,250 - $31,000

Cadillac CTS Sport Wagon

For 2010, Cadillac set out to create a vehicle that combines the sporty driving dynamics of its CTS sedan with the utility of a station wagon — and that’s exactly what it did. The CTS Sport Wagon leaves critics impressed with its superb performance abilities and stylish design, inside and out. Among its many selling points, the CTS Sport Wagon is available with either rear-wheel or all-wheel drivetrains. It also features a five-year/100,000-mile powertrain warranty, which is the longest in its class.

MSRP: $39,830 - $53,620

Shopping for a new car on a budget is simple — just pick the cheapest one that you can afford, right?

Not so fast. A car costs a lot more than whatever price you pay at the dealership. In fact, it’s an investment that requires you to keep paying well after your monthly payments are complete. With fuel costs, insurance fees, maintenance, repairs and even depreciation, your car can wind up costing more than twice the price you originally paid. Experts call this your car’s Total Cost of Ownership (TCO).

Chevrolet Aveo

MSRP: $11,965 - $15,365

Those in the market for a new car but with little money to spend will like that the Aveo comes cheap. It doesn’t provide exceptional performance or a lot of cool convenience features, but it’s roomy for a small car and gets good gas milage — netting an EPA-estimated city/highway fuel economy as high as 27/35 mpg. And while Chevy only provides three years or 36,000 miles of basic coverage, it does provide a lengthy five-year/100,000-mile powertrain warranty.

Still, the Aveo is trumped by its competitors in nearly every category. And while its MSRP starts below $12K, IntelliChoice assigns it a value rating of “Below Average” to “Average.” The Aveo’s total five-year TCO ranges from $25,570 to $28,457, depending on trim.

Better Buy: Starting at $9,900, the Nissan Versa carries an even lower sticker price than the Aveo. What’s more, IntelliChoice assigns the Versa a value rating of “Above Average” to “Excellent,” and its total five-year TCO ranges from just $21,302 to $27,106. The 2009 Versa even won IntelliChoice’s “SmartChoice” award for ownership costs.

Suzuki SX4 Crossover

MSRP: $13,359 - $19,949

The SX4 Crossover’s biggest selling point is that it comes equipped with all-wheel drive — a rarity in the class of affordable small cars. Its wagon body style also provides a whopping 16 to 54 cubic feet of cargo room. However, drivers looking to save a few bucks won’t like its less-than-stellar city/highway fuel economy of 22/30 mpg. On the plus side, its powertrain warranty runs for seven years or 100,000 miles, which is one of the longest in its class.

Though the SX4 Crossover has a lot going for it, it doesn’t provide much value. IntelliChoice assigns it a value rating of “Below Average” and estimates that its five-year TCO ranges from $31,792 to $32,607, depending on trim.

Better Buy: Shoppers with little use for an all-wheel drivetrain can get more for their money by opting for a Honda Fit instead. Not only does it earn an IntelliChoice Value rating of “Excellent,” but in 2009 it won numerous awards — including IntelliChoice’s “Best Overall Value of the Year” for compact vehicles priced under $17,000. Depending on what trim you buy, the Fit’s five-year TCO ranges from $23,645 to $28,332.

Mitsubishi Lancer

MSRP: $14,790 - $27,590

Critics knock the Lancer for its poor acceleration and sub-par cabin materials, but it’s arguably the best looking vehicle in the class of affordable small cars. Not surprisingly, car shoppers who prioritize image over quality flock to it. An added bonus is its relatively low sticker price and lengthy warranty — five years or 60,000 miles of bumper-to-bumper coverage and 10-years or 100,000 miles of powertrain coverage.

Shoppers, however, shouldn’t assume that the Lancer is a great buy. With the exception of the top-of-the-line Ralliart trim level, the Lancer earns an IntelliChoice value rating of “Below Average” to “Average.” Also, its total five-year TCO ranges from $23,917 to $32,400, depending on trim.

Better Buy: Despite its less-attractive design and a recent recall regarding unintended acceleration, the Toyota Corolla is a better value. In fact, IntelliChoice gives the Corolla a value rating of “Above Average” to “Excellent,” and estimates its total five-year TCO at $21,566 to $30,426. In 2009, the Corolla was awarded IntelliChoice’s “SmartChoice” award for highest retained value.

Car shoppers, however, should take note that Toyota has halted sales on 2009-2010 Corollas until it can resolve a dangerous issue related to its acceleration pedal. Drivers unable to wait until the problem is fixed should consider the Hyundai Elantra instead. At $27,735, its base model has a higher TCO than both the Lancer and Corolla. However, it features one of the longest warranties in its class (five years/60,000 miles of basic coverage and 10 years/100,000 miles of powertrain coverage) and is a recipient of IntelliChoice’s “Smart Choice” award for lowest repair costs.

Ford Focus

MSRP: $15,995 - $18,485

The Focus attracts affordable car shoppers who want the option to add a few extra bells and whistles. It doesn’t afford much in the way of performance or cargo capacity, but features Ford’s popular Sync infotainment system — standard on all trims but the base. Also standard is MyKey, which promotes safe driving habits in teens by allowing parents to limit their top speed to 80 mph, disable the audio system when seatbelts are not in use and sound a persistent chime when the vehicle’s speed hits 45, 55 and 65 mph.

Despite its cool gadgets, the Focus earns an IntelliChoice value rating of “Poor” to “Below Average.” And while the base model nets a total five-year TCO estimate of $29,630, the highest trim’s TCO is $34,220.

Better Buy: The Honda Civic provides more value and sacrifices little in the way of safety. With so many Civic trims and packages available, IntelliChoice offers numerous value ratings. However, most standard models earn an “Above Average” to “Excellent” Rating. While the base-model DX Coupe’s total five-year TCO is estimated at $21,190, the standard EX-L’s is pegged at $31,278. In 2009, many Civic trims received IntelliChoice’s “SmartChoice” award for retained value.

Scion tC

MSRP: $17,000 - $17,800

While the Focus appeals to parents, the tC is aimed squarely at teens and young adults. It’s not as powerful or sporty as some competitors, but it sure looks the part. Plus, Scion lets drivers customize their rides with a wide selection of tuner options. And though its three-year/36,000-mile basic warranty and five-year/60,000-mile powertrain warranty are basic for the class of affordable small cars, Scion is a product of Toyota — which has a reputation for building reliable vehicles.

Even so, the tC’s overall value is cause for concern. Not only does it receive an IntelliChoice value rating of “Below Average,” but its total five-year TCO ranges from $26,456 to $30,972.

Better Buy: The MINI Cooper is just as appealing to young drivers and provides more value. In fact, IntelliChoice gives the Cooper and Cooper S trims a value rating of “Excellent” and estimates that their total five-year TCO ranges from $25,102 to $31,507. The MINI Cooper received numerous IntelliChoice awards in 2009 — including “SmartChoice” for lowest maintenance costs and “Best Overall Value of the Year” for the convertible trim.

Despite experiencing one of the most turbulent years ever in the automotive market, Chevrolet, Ford, and Subaru have benefited from a dramatic increase in overall brand perception among car owners. According to Consumer Reports 2010 Car Brand Perception Survey, all three saw at least a 30-point increase in their overall perception scores over last year’s scores. The scores reflect how consumers perceive each brand in seven categories: Safety, quality, value, performance, design/style, technology/innovation, and environmentally friendly/green.

The scores reflect consumers’ total perception level of a brand across those categories, and not the actual qualities of the brand’s individual vehicles.

Toyota maintained its Number one spot. But overall score improvements helped Ford to slip past Honda into second place and allowed Chevrolet to rise to fourth place, from ninth. Subaru’s 39-point increase, which was the largest of any brand and almost double its 2009 score, boosted the brand to ninth place, from last year’s 18th position.

At the other end of the spectrum, the two lowest-scoring brands were Hummer and Saab—divisions that General Motors has struggled to sell. Luxury brands saw the greatest decreases in overall scores, with Porsche (-13 points), Lexus (-15), Cadillac (-15), Infiniti (-21), and Lincoln (-25) moving in the wrong direction.

Clearly, several brands emerged from the 2009 auto crisis stronger than others, and the way consumers perceive the brands is in constant change.

Best and worst in brand perception

The chart below shows the overall scores for the top and bottom 10 brands, according to Consumer Reports’ 2010 Car Brand Perception Survey. Overall scores are an aggregate, reflecting a brand’s total perception level across seven areas. They are rounded to the nearest whole number. The top five brands in each area are listed on the Brand perception by category pages.

Overall Brand Perception

Best
Toyota 196
Ford 141
Honda 135
Chevrolet 124
Volvo 92
Mercedes-Benz 92
BMW 90
Cadillac 87
Subaru 81
Lexus 80

Worst
Mitsubishi 28
Kia 27
Lincoln 26
Jeep 22
Infiniti 19
Suzuki 19
Mazda 13
Mercury 13
Saab 13
Hummer 11

As we analyzed the results from this year’s survey, we have found that marketing and news coverage can be important influences, shaping brand perception over time. Conversely, the brands that can clearly deliver on core purchase factors will make lasting impressions.

In contrast to brands that have a strong image in only one area, such as Volvo with safety, the brands that see the greatest success are those that excel in multiple areas, such as Toyota, Ford, Honda, and Chevrolet.

For consumers, it’s important to remember that brand perception often reflects distortions of reality, as is discussed in the following sections. It pays to look beyond your impressions and do your homework, especially in the areas that are most important to you.

ConsumerReports.org has a variety of tools that can help you to quickly and efficiently narrow down a wish list, based on real-world test results, reliability data, owner costs, and other ratings. In addition, we have recently expanded our premium offerings to include Cars Best Deals Plus, which provides the Bottom Line Price to help you get the best deal, full test-track reports from our engineers, and detailed reliability findings, so you can see what types of specific problems owners are experiencing.

How the scores were calculated

The Consumer Reports National Research Center conducted a random, nationwide telephone survey Dec. 3-7, 2009, contacting 2,017 adults. The Center collected the survey data from 1,752 adults in households that had at least one car.

Overall brand perception is an index calculated as the total number of times that a particular make was mentioned as exemplar across all seven categories, divided by the total unaided mentions. (Interview subjects were asked what brands exemplified the traits instead of read a list of brands.) That approach compensates for awareness level, ensuring that every brand has an equal chance of leading a category, not just the best-selling or most well-known brands.

Category scores reflect the number of times that the particular make was mentioned as an exemplar of the particular attribute, again corrected for awareness.

Whether it’s your first time or you’re a seasoned pro, you should never buy a car on impulse. The buying process takes time, research, careful thought and even some strategy.

Truth be told, it can be overwhelming. In addition to finding the best car for the right price, you have to navigate through confusing payment options and deal with salespeople. One mistake — no matter how small — can cost you hundreds, if not thousands, of dollars.

Under such pressure, it’s easy to understand why so many car shoppers get in over their heads. However, it doesn’t have to be that way. By learning from past mistakes, you can find the right car and get a good deal too. Take a look at eight of the most common car buying mistakes and how to avoid them.

1. Confusing Wants with Needs

Convertible two-seaters are really cool. But if you’re lugging a load of hockey equipment every day, chances are you’d do better with a Honda Fit than a Mazda Miata. Unfortunately, car shoppers often make the mistake of confusing their wants with their needs. After all, who wouldn’t want a car that’s faster, sexier or more luxurious? However, such choices aren’t always practical…or even affordable.

Avoid making the same mistake by putting together a list of regular activities that would require using your car. When car shopping, reference the list to make sure that the car you’re considering will serve those functions well.

2. Test-Driving the Wrong Trim

You know those weird letter-number combinations that follow your car’s badge — LS, GLS, LX, LP560-4? In most cases, they denote significant performance, interior and even exterior differences between trims of the same model. The Dodge Challenger SRT8, for example, performs like a true American muscle car. The Challenger SE? Not so much.

Be wary of dealers who give you the highest trim level of a car to test drive and then proceed to sell you a trim that better fits your budget. Car shoppers who fall for this trick usually end up sorely disappointed with the car’s performance and features. To avoid making this mistake, test drive the exact trim you plan to buy before signing any papers.

3. Sacrificing Reliability for Appeal

Don’t let a car’s curb appeal or features sway you. Buying a pretty car with funky features and a poor history of reliability can prove to be a major drain on your wallet. Just ask anyone who has purchased a Volkswagen Jetta. Shoppers love the Jetta for its small size, cute design and sprightly performance. However, the vehicle has a so-so record of dependability — receiving a J.D. Power rating of only 2.5 out of five power circles for predicted reliability.

Before you allow a car’s emotional statement to overpower your ability to think rationally, research its reliability. J.D. Power and Associates is a good source for determining whether your car is doomed to be a lemon. If you’re buying a used car, hire a mechanic to conduct a pre-purchase inspection.

4. Not Knowing What Others Paid

Saving $500 on the sticker price of a 2010 Toyota Land Cruiser is great, but not if the average buyer is saving thousands more. In the past, it was almost impossible to know whether the price you negotiated at the dealership was a good one. However, with the dawn of the internet, that information is now readily available. The Land Cruiser, for instance, has an MSRP of $65,970, but the average price paid is only $63,645.

5. Underestimating the Value of Your Trade-In

A smart way to save money on the price of a new car is to trade in your old one. But a dumb way to miss out on potential savings is by taking the dealer’s word for how much your car is worth or announcing that you intend to trade in your ride too early in the game. After all, a dealer’s primary job is to maximize his profits — not your savings. By failing to prepare or showing your cards too early, you could be making a costly mistake.

Before stepping foot on a dealer lot, consult Kelley Blue Book or NADA Guides to determine your car’s trade-in value. At the dealership, use that knowledge to negotiate a fair price. However, don’t mention anything about wanting to trade in your car until you’ve already negotiated a suitable deal on a new one. Waiting until the very end to mention your trade-in will ensure that its value gets factored into the final price. Also, remember that you can negotiate the value of your trade-in. If you don’t like what the dealer is offering for your trade, find a dealership that will give you what your car is worth.

6. Buying Options You Don’t Need

If you’re shopping for a 2010 Lexus IS, an optional navigation system is going to run you an additional $2,465. It’s a great system that features the latest in voice command and Bluetooth technology. But if you don’t need all those bells and whistles, you can buy a TomTom portable GPS for only $150 and still get where you need to go. Shoppers who make the mistake of opting for unnecessary extras will quickly inflate the price of their new cars.

Avoid wasting money on optional features that you don’t need by researching their prices first. Most manufacturers will list the price of individual and package options right on their websites. If you come across a feature that you really want, try to find an aftermarket store that sells a comparable version for less. You’ll be surprised at how much you can save.

7. Not Cross-Shopping Car Deals

One of the costliest mistakes car shoppers can make is forgetting to cross-shop car deals just as they would competing vehicles — though doing so can help save them bundles. Take, for example, the similarly-priced Nissan Versa and Chevrolet Aveo.

Recently, the Aveo was offered with zero-percent financing for up to 72 months. Nissan, on the other hand, was only offering 1.9 percent financing for up to 60 months plus $500 cash on the Versa. At first glance, the Aveo appears to be the better deal. However, a simple crunching of the numbers reveals that the Versa’s monthly payment would actually turn out to be a bit less than the Aveo — assuming an equal down payment of course.

Don’t let carefully-crafted sales promotions mislead you into thinking that you’re getting the best deal around. Be meticulous in comparing car deals for competing vehicles, and remember that these deals change monthly. U.S. News’ best car deals will keep you in the loop.

8. Only Thinking in Terms of Monthly Payments

For most people, it’s easier to think in terms of affordable monthly payments than a daunting end price. However, such short-sightedness has led many car shoppers to overpay. Sure, a $250 per month car payment is easier to swallow than a $350 payment, but getting that lower price often means taking out a loan over a longer period. In the end, that means paying more interest and fees.

To avoid overpaying, don’t just calculate what your monthly payment will be. Add up those payments to determine whether the total price paid still makes economic sense.

It’s easy to get excited by a new car, like the $90,000 Porsche 911 Carrera S. It has a six-cylinder, 385-horsepower engine that gets to 60 miles an hour in 4.5 seconds, and it tops out at 188 mph.

But if you want a chance at getting a good deal on one of the 2010 models, keep that enthusiasm to yourself. It’s the only way to walk out of the showroom with your dignity–and your wallet–intact.

“Dealers kind of prey on the fact that you’re going to be excited,” says James Bell, executive market analyst for Kelley Blue Book, an Irvine, Calif.-based vehicle valuation company. “Getting a new car is fun, and it’s exciting, and you can’t wait to drive home and show your neighbors. They know that.”

In fact, keeping your mouth shut (at least in the beginning) about several things, like how you plan to pay for the vehicle, or the fact that you’re not sure exactly what you need in a car, will serve you well when you finally do make a purchase.

Expert Advice

To create our list of the worst things to say to a dealer when buying a car, we consulted with car-buying experts from AAA (John Nielsen, director of auto repair and buying), Kelley Blue Book (James Bell, executive market analyst) and NADA Guides, (Mike Caudill, auto market specialist for the Costa Mesa, Calif.-based auto-data Web site). They gave us their best advice for getting the most car out of the shopping experience –and for not being taken for a ride.

One piece of advice unanimously agreed upon: Be careful when you talk numbers. Never go into a showroom and announce what you can afford to pay each month. Odds are, you’ll end up paying at least that–plus extra fees, service charges and extended financing payments that the dealer pads into the monthly payment agreement.

“It gives them the framework to then build a program,” Bell says. “You’re giving them all the ammunition necessary to build a program that magically hits something close to [the price you name]. But nine times out of 10 that’s not going to be to your advantage. It’s going to be to the advantage of the dealership.”

Just be clear with what you want, says Nielsen. State which cars you’re considering and talk about the overall purchase price of the vehicle, not its monthly payments.

Another phrase to avoid, at least up front, is “My credit’s not very good.” Inevitably, if you get serious about a particular vehicle, the salesman will find out that your credit score is not up to snuff. But if you tell him outright, he’ll know he’s got you in a bind.

“You are truly at a disadvantage then, because now the dealer says, ‘Look if I can get you financed, you’ll pay what I want,’” Nielsen says.

Instead, try to arrange financing with an outside source, like a bank or credit union, and use that safety option as leverage.

“I’d tell the dealer that ‘I have financing available, I’ve been approved, but if you can beat that, you’ll get the deal,’” Nielsen says.

If you plan to pay for the car with cash, even better. But don’t announce that right when you walk in the door–it’ll automatically tip off the salesperson that he should charge you more up front, since he won’t be making money off the dealership financing plan.

Buyer Beware

Research plays a major role in successful car buying. The months before the end of the year are prime times to snatch a good deal on an outgoing 2009 model, Caudill says. So don’t tell the dealer he’s the only one you’re considering. If you know which car you want, how much it’s really worth and where it’s available, you’ll be free to move on to the next dealer if the first one can’t meet your terms.

“No dealer has an exclusive product,” Bell says. “If you really like that red one, you can probably find it somewhere else pretty easy. Don’t ever get caught in the sense of, ‘Wow I’ve got to have this car right now because it can never be had again.’”

Above all, be honest, decisive and direct. Despite all the horror stories about crooked car dealers, odds are that the one you work with is upstanding and provides a much-needed service: You need a car, and he wants to sell you one. There’s no reason to be confrontational–just be well-informed, Nielsen says.

“By being well-educated, you can make sure that you’re comfortable, so when they tell you something, you’ll know right from wrong.”

Negotiating for a car can be a nerve-wracking and difficult process. But even once you’ve agreed on that golden price, you’re not home free. If you’re buying a new car, there are plenty of options a dealer will still try to persuade you to tack on. While some of these might make sense for you, others aren’t worth the money. Though they may add only pennies a day to your monthly payment, they can add a lot to the price of your new car. Here are five dealer add-ons you should think twice about.

1. Extended Warranties

The extended warranty is one of the most alluring dealer extras. After all, doesn’t everyone want a little extra peace of mind? But no matter how good it sounds, remember: Always say no. First of all, your car’s original warranty may be all you need — especially if you’re buying a Hyundai or Kia, which both offer lengthy five-year/60,000-mile basic warranties. Many other manufacturers are now also offering five-year/100,000-mile powertrain warranties.

Secondly, even if you do want an extended warranty, you don’t need to purchase one the moment you buy the car. If you want one, you can easily buy it later, either from the car manufacturer or a reputable third-party company (but beware of unsolicited phone or mail offers down the line). The dealer’s extended warranty isn’t necessarily the best deal; in fact, it usually costs more. Plus, you’re in a high-pressure situation at the dealer and might not be able to read the fine print. Finally, if you buy the dealer’s extended warranty, you might be required to return to that dealership to get it honored – which could become a problem if you move.

2. Fabric and Paint Protection

Stain protection for your seats and floors can cost hundreds of dollars at the dealership. But while it may make you feel better when you’re balancing a milkshake in one hand and driving with the other, it’s not worth the money. Scotchgard Auto Interior Fabric Protector is available at Wal-Mart or Target (around $10 for a 10-ounce can), and it accomplishes virtually the same thing as what the dealer provides. The only difference is that the dealer’s fabric protection might come with a warranty, which means they’ll cover the cost of removing any stubborn stains.

Another typical dealer extra, Paint Protection, won’t accomplish much more than a good coat of wax will. Again, you can apply this yourself by picking up polymer sealant car wax at the auto parts store. Remember that your car already comes with a good coat of sealant from the factory, so you only need to apply wax about once a year.

3. Rustproofing

Unless a car is decades old, rust isn’t usually a problem. And unless you plan on keeping your car for decades, you won’t need any extra rustproofing. Modern vehicles are built to withstand rust, and nearly every new car comes with a lengthy rust perforation warranty. That makes rustproofing one of the biggest rip-offs a dealer can entice you to buy — because why would you want to pay for something twice?

4. Maintenance Plans

A maintenance program covers fluid changes and other regular maintenance items as part of your monthly car payment. If you buy such a plan, you won’t have to worry about budgeting for car maintenance. However, you will have to take your car to the dealership for service. While buying the maintenance program up front may cost less than paying for individual services at the dealership, it might not cost less than going to an outside repair shop for maintenance. You’ll have to do the math to decide if a maintenance plan is right for you.

Note that during negotiations, you might even be able to convince the dealer to throw in a maintenance plan for free. A few automakers already provide maintenance programs for free with a new vehicle. Volkswagen and Volvo offer plans that last three years or 36,000 miles, while BMW’s Ultimate Service program runs for four years or 50,000 miles. Scion provides the first two maintenance services for free.

5. Ding Protection

Buyers who are worried about cosmetic scratches on their new car might be inclined to opt for Ding Protection. It covers the cost of fixing small dents and scratches (often less than four inches long) for a set period of time. The price varies, but a three-year plan can cost as much as $650.

While this may seem like an alluring offer for a concerned new car owner, that’s a lot to pay up front for something you may never use. Even if you do use it, remember that large dents aren’t typically covered under this type of plan. Will the cost of buffing out small scratches really ever add up to the cost of the protection plan? Unless you repeatedly ram your new car with shopping carts, the answer is probably no.

Your wallet may already be reeling from holiday spending, but it’s worth your while to consider adding a purchase with a five-figure price tag to your list. Why? Because December is the cheapest time to buy a new car. In fact, if you’re looking for a bargain, six of the 10 best days to buy all year are between December 14 and the end of the year.

Buy in December

That’s the conclusion the car pricing experts at TrueCar.com reached when they crunched data from the last three years of pricing trends. “The average discount in December is around 6.5 percent off MSRP, compared to 4.5 percent in a typical month,” says Jesse Toprak, TrueCar.com vice president of Trends and Insights.

More from U.S. News & World Report

There is an old rule of thumb in the auto industry, Toprak explains, that says “the end of the week, the end of the month, and the end of the year” are the best times to buy. “Statistically speaking,” he tells us, “that actually turns out to be the case.”

Why would prices dip at the end of the year? Like so many things in the car shopping process, the phenomenon is psychological – but it has real impact on the financial health of car dealerships and shoppers.

The calendar hits 2010 next month. But for automakers, it’s been 2010 since mid-summer. Some of the earliest model year 2010 cars were rolling off of factory lines by July, and by now, dealerships are filled with cars with next year’s date on the window sticker.

Best Days to Buy in December

Date Expected Average Discount

12/14/2009 6.86%

12/16/2009 6.74%

12/21/2009 7.13%

12/24/2009 7.25%

12/28/2009 6.90%

12/31/2009 7.04%

But they also have plenty of 2009 cars left to sell — more than in a typical year, in fact. That’s because automakers overbuilt, underestimating the impact of the recession on American buying habits. On Jan. 1, 2010, the value of those 2009 cars will drop because they will seem out of date. Dealerships want to get rid of them before that drop comes.

In reality, the differences between model years can be subtle. The 2010 Ford Fusion is a dramatically better car than the 2009 version, since Ford significantly modified its midsize sedan between model years. The 2010 Honda Accord LX, however, is virtually identical to the 2009. Honda lightened the color of the ventilation switches. That’s it. That’s the full list of changes. Yet, come January 1, the 2009 Accord will be worth thousands less than its 2010 counterpart — so dealers are willing to negotiate this month to push the 2009s out the door.

There are a handful of exceptions to Toprak’s guidelines. Prices of some vehicles vary seasonally. Convertibles, for instance, are typically cheapest in colder months. All-wheel-drive and four-wheel-drive vehicle prices dip a little in the summertime. “But even with trucks,” he says, “buying an expiring model- year vehicle in December may be cheaper than buying the same truck in the summer,” when dealers don’t feel the pressure of January 1 looming.

Buy at the End of the Month

No matter what month you do your car shopping, Toprak says, you can still save money by timing your purchase carefully. Plan to buy, he says, late in the month. Dealerships are most willing to accept a lowball offer as the start of a new month rolls around.

“There is something called an Objective Bonus,” he explains, “that few shoppers seem to know about.” It’s a simple concept. Automakers set targets for their dealerships each month – “if they sell a certain number of units by the end of the month, they get a bonus from the automaker.” If you time your purchase for the last few days before the calendar switches over, you might find yourself negotiating with a dealer who knows he needs to sell just a few more cars to qualify for a big check from the home office – so he’s willing to take less from you in order to get one sale closer to his quota.

Buy on Saturday

The day of the week you go shopping can change the amount you’ll pay as well. In most weeks, analysis shows, the biggest discounts tend to fall on Saturdays.

Car dealers are acutely aware of all the competition they face from other brands and even other dealerships selling the same brand. They know that when shoppers leave the house intending to make a purchase, they generally do.

“I ran dealerships for a few years,” Toprak says, before launching his career as an analyst. “The thinking at dealerships,” he explains, “Is that if you don’t give customers enough of a discount to close the deal on Saturday, they will go down the road somewhere else. They’re shopping on Saturday, and they intend to buy that day.”

Buy on a Holiday

Finally, data shows you should consider car shopping when your neighbors are wrapping presents, or getting things ready for their party. Two of the least expensive days of the year are Christmas Eve and New Year’s Eve, when the average discount tops 7 percent off MSRP.

Maybe those commercials that propose giving a car as a Christmas gift aren’t completely crazy after all.

Ford, Subaru and Volkswagen lead the insurance industry’s annual list of the safest new vehicles, according to a closely watched assessment used by car companies to lure safety-conscious consumers to showrooms.

The Virginia-based Insurance Institute for Highway Safety awarded its “top safety pick” on Wednesday to 19 passenger cars and eight sport utility vehicles for the 2010 model year. The institute substantially reduced the number of awards compared with 2009, because of tougher requirements for roof strength.

Ford Motor Co. and its Volvo unit received the most awards with six, followed by five awards apiece for Japanese automaker Subaru and German automaker Volkswagen AG and its Audi unit.

Chrysler Group LLC received four awards followed by two each for Honda Motor Co. and General Motors Co.

Toyota Motor Corp., BMW AG, Mazda Motor Corp. and Mitsubishi Motors Corp. were shut out in the annual IIHS review.

Ford’s recipients include the Ford Taurus and Lincoln MKS passenger cars and the Volvo S80 and C30 passenger cars and the XC60 and XC90 SUVs.

Ford said in a statement it is “committed to providing customers with safe vehicles for a broad range of real-world crash conditions.”

Subaru recorded winners with the Subaru Legacy, Outback and Impreza cars and Tribeca and Forester SUVs. Subaru was the only automaker with an IIHS winner in all four vehicle classes in which it competes.

The automaker, which has bucked the brutal U.S. sales market with a 13 percent increase during the first 10 months of 2009, attributed its safety success to a unique engine design that sits low in the vehicle chassis and moves down and under occupants in a frontal collision.

Tom Doll, executive vice president and COO of Subaru of America, said the awards were a “tribute to the engineering that goes into Subaru products.”

Volkswagen scored with the 4-door versions of the Jetta, Passat and Golf, the Audi A3 and the Volkswagen Tiguan, a small SUV. Mark Barnes, Volkswagen of America’s chief operating officer, said the “safety of our cars is of the utmost concern, from the initial design stages all the way through the maintenance procedures at dealerships.”

Chrysler won the award for the Chrysler Sebring and Dodge Avenger sedans equipped with optional electronic stability control, the Dodge Journey midsize SUV and the Jeep Patriot with optional side thorax air bags.

Scott Kunselman, Chrysler’s senior vice president-engineering, said the awards underscore the Auburn Hills, Mich., automaker’s “engineering capability and leadership in occupant protection.”

General Motors Co. and Honda Motor Co. both received two awards. GM was recognized for the Buick LaCrosse and the Chevrolet Malibu while Honda won for 4-door versions of the Civic with optional electronic stability control and the Honda Element.

Other winners included the Nissan Cube, the Kia Soul and the Mercedes C Class.

The vehicles are selected for best protecting motorists in front, side and rear crash tests based on Institute evaluations during the year. The vehicles are required to have electronic stability control, or ESC, to qualify for the award. Earlier this year, the Institute said vehicles would need to receive its highest score in its roof strength evaluation to qualify the safety pick designation.

“With the addition of our roof strength evaluation, our crash test results now cover all four of the most common kinds of crashes,” said Institute president Adrian Lund. “Consumers can use this list to zero in on the vehicles that are on the top rung for safety.”

The Institute awarded its top prize to 94 vehicles in 2009 and attributed the decline in awards this year to the roof strength requirement. The Honda Accord and the Ford Fusion both dropped off the list because 2010 versions didn’t earn high enough scores on the roof test.

The Toyota Camry would have made the list, the Institute said, if it had received the highest rating in rear crash protection. The Institute said the Camry’s seats and head restraints were rated marginal for protection against whiplash injuries.

If only cars could talk. It would make the buying experience a lot easier, wouldn’t it? Because verbalized or not, every used car has a story to tell. And to avoid getting ripped off, it’s up to you to listen. You need to know about the skeletons in that car’s closet, the dark secrets of its past.

There are so many problems that can hide easily under the surface — accident damage, a counterfeit title, failing mechanical parts. It’s not as if you’re marrying the car, but you are making quite a financial commitment. Wouldn’t you rather find out about these red flags before saying “I do” and plunking down your hard-earned cash?

With this list of warning signs, you’ll be able to make your next used car purchase confidently — and if you do find “the one,” we’ll bet the relationship won’t end in a messy divorce.

Red Flag #1: No Service Records

One of the most important aspects of a used car is its maintenance history. You want to make sure you’re buying a vehicle that has had routine oil changes and major mileage services. Always ask the seller, even if it’s a car dealership, for all service records. If they can’t provide those for you, you have no way of knowing if the car has been maintained properly. In addition to asking for records, look for a windshield sticker indicating when the car’s next oil change is due. If there’s no sticker or it shows an oil change is past due, ask why.

Red Flag #2: Vehicle and Accident History Issues

A vehicle history report is essential for any car purchase. You can ask the seller or dealership for the report or access it yourself online using the car’s VIN (Vehicle Identification Number). AutoCheck charges $19.99 for a single report or $29.99 for unlimited reports for 60 days. The report shows accident/damage history as well as title problems, frame damage and an odometer rollback check — any of which should be deal breakers.

Red Flag #3: Mechanical Problems

A quick look under the car can reveal fluid leaks, but unless you’re an expert, you’ll need to have someone else do a thorough inspection to make sure it’s in good working condition. A PPI, or Pre-Purchase Inspection, is performed by a neutral third party (such as a certified mechanic or automotive technician) and costs about $100 to $200.

The inspection is a detailed assessment of the cosmetic and mechanical condition of the vehicle. It is an invaluable asset since it can alert you to problems, maintenance issues and even frame damage hiding under the surface. The mechanic should put the car on a lift to check undercarriage components. Make sure he or she also uses a paint meter gauge to catch any re-painted body panels — which mean the car may have been in accidents that weren’t reported to the insurance company (if they had been reported, they would show up on your AutoCheck vehicle history report). Choose the party who will perform the inspection, rather than going with someone recommended by the seller. Ask to have the results sent directly to you.

You may be tempted to skip a PPI, but it’s almost always well worth it. You’re making a large investment in a vehicle, and the price of the PPI is only a very small fraction of that. If any problems the PPI shows are deal breakers, you can walk away from the sale. If not, you can still use them to negotiate a better price.

Red Flag #4: A Problem Title

Your AutoCheck vehicle report will show any problem titles on the car’s record at any point in its history — everything from hail damage to fire damage. Most of these issues are red flags, but here’s just a sampling of those to avoid at all costs: Flood titles, which means the vehicle has received extensive water damage; salvage titles, which mean an insurance company has at some point declared the car a total loss due to sustained damage; and junk titles, which mean the vehicle indicate that a vehicle is not safe enough for use and the car cannot be titled again in that state.

Red Flag #5: A Fraudulent Title

A problem-free title doesn’t mean it’s valid. Criminals can create counterfeit or fraudulent titles and use them to legally register and then sell stolen cars. If you buy a car without a valid title, it’s the worst-case scenario — you don’t legally own the car you just bought.

The first step to verify the title is to check with the DMV. Usually, you’ll just need the car’s VIN number and may be charged a small fee (often these transactions require you to go to the DMV’s office). You need to make sure the VIN on the car matches the VIN on the title and the seller’s name matches the one on the title. This record check is also valuable because it will show any outstanding liens on the title, which means that the owner is still making payments on the car and doesn’t own it outright. This could complicate the sale later, especially if you’re buying from a private seller.

However, even if the title appears to belong to the seller, it could still be fraudulent. There are a few signs that may signify foul play. Play close attention if the vehicle was recently brought to your state and titled or if the VIN number on the car is obscured or shows signs of tampering. The title should look official, meaning it will be printed on special paper with watermarks (visible when held up to the light). All text, graphics and borders should be sharp, not blurred. If you can, compare the title with an original (perhaps from a friend’s car in the same state) and make sure the two look the same.

The Bottom Line

Checking for all these red flags may seem excessive, but they can save you time and headaches down the line. In the end, the PPI, AutoCheck vehicle history report, DMV records and seller should be consistent. If any of the information seems fishy, consider walking away from the sale. If any of the above warning signs do surface, you may not even want to give the car a second thought. It doesn’t hurt to walk away, but it can sure hurt a lot to buy a problem vehicle. Plus, with the internet, you can find virtually any car, anywhere. And as they say, there are plenty of other fish in the sea.