Carblogger on CablePulse24 tonight at 8 p.m.

If you happen to read this in time and live in the right area, tune in to CablePulse24 tonight (Sunday, Oct. 19)  at 8 p.m. for my latest appearance on AutoShop.

The regular guest expert, Mohamed Bouchama of Car Help Canada, is away for a bit and I’ve been asked to return again. I’ve lost track, but I think this is the fifth or sixth time sitting in the guest chair. I’ll be joined tonight by Alan Gelman of Glennalan Motors in North York. He can handle the mechanical questions any viewers throw at him and together we’ll tackle any questions about new or used cars.

I always enjoy appearing on this show, not only for the chance to chat with and hopefully help viewers live, but also because my friend Hugh Burrill of Citytv is now the regular host. Hugh and now started at Citytv in Toronto around the same time as news writers many years ago. I moved on to produce shows like CityOnline and AutoShop, while he went on to become a sports reporter and anchor Hugh is a good guy all around and has a genuine interest in the automotive sector and he’s a huge fan of racing.

If you like what you hear or couldn’t get through on the phones, feel free to drop me a line at carblogger@rocketmail.com.

In other news, I’m just about finished my article on hypermiling and using the Scangauge I purchased for that purpose. More on that still to come….

Installing a ScanGauge is a gas, gas, gas

My ScanGauge arrived today from Gifford Automotive in Ottawa (thanks Tom!) and the set up was really quite easy. If you didn’t read my last post, I’m preparing an article on “hypermiling” for MoneySense magazine.

In a nutshell, hypermiling is about modifying your driving habits to gain real fuel savings. The ScanGauge is a device that plugs into your vehicle’s nerve centre via the OBD2 port found under the dash on the driver’s side of most vehicles. Once hooked up, the gauge can monitor your fuel economy in real time and even calculate how much money your vehicle is burning as you drive.

Hypermilers love this little gadget, which is priced at $170 CDN, because it forces you to watch your money as it burns through the engine. There’s real motivation in seeing your actual fuel economy numbers and not the rosy Transport Canada or EPA numbers.

My plan is to use the ScanGauge to track my fuel economy is my fuel-thirsty Chevy Venture over a couple days of routine driving. After that, it’s off to the garage for an oil change into a synthetic blend, proper inflation of the tires and trying my hand at various hypermiling techniques to max out my fuel savings.

After just one day, I’m averaging about 12.4 litres/100 km, which is just a little heavier than the official fuel rating for my vehicle of 12.0 L/100 km. I’m doing my best to drive as if the ScanGauge isn’t telling how much fuel I’m wasting, but it’s hard not to notice those numbers climbing.

I’ll write more about my experiences and the features of the ScanGauge in my next post. Until then, happy motoring.

Can hypermiling really save on fuel costs?

In a couple days time I will be taking delivery of a Scangauge trip computer from a Canadian reseller of this U.S. device. My goal is to test the practice of hypermiling by tracking real-time fuel consumption in my 2004 Chevy Venture van. The results will be published in MoneySense magazine after a few thorough runs at normal driving and using various hypermiling tactics.

For anyone not familiar with hypermiling, it is a growing movement whereby drivers use a variety of tactics to reduce their fuel consumption. One U.S. resident claims to double his fuel economy by using such simple tricks as coasting, shutting off his engine at red lights and using his brakes as little as possible.

Some hypermiling tactics, however, can be dangerous and my article will also feature words of wisdom from safety experts and mechanics. But my hope is that I can find some middle ground where effective and safe use of hypermiling strategies will allow to boost fuel efficiency enough to blunt the pain at the pumps I’m currently experiencing.

If hypermiling can really deliver the gas savings it promises, then perhaps those of us who can’t spring for a new hybrid can still save money and feel better about our ecological footprint.

I’ll keep this blog updated as my experiment progresses. Stay tuned…

Scangauge

Are “certified” used cars worth the money?

Many people assume there is some tangible benefit to drinking certified organic coffee or talking with a certified financial planner, but can the same be said for buying a certified used car? Certainly, sales of Certified Pre-Owned (CPO) vehicles have been steadily rising in recent years, according to consumer researcher J.D. Power and Associates. But not all CPO programs are created equal and it takes more than a cursory tire kicking to discern the deals from the duds.

“With a certified used car you’re getting the manufacturer’s guarantee on the fitness of the vehicle, so you should be able to have greater peace of mind,” says Michael Turk, a lawyer and director for the Automobile Protection Association (APA). However, he notes that CPO programs can differ wildly in what they offer, with some providing lengthy extended warranties, while others promise little more than a thorough going-over. “You really have to do your homework,” says Turk. “If all you’re getting is a detailed inspection report, then why bother?”

Let’s take a look at exactly what’s being offered. Certified vehicles are backed by the original manufacturer and sold through its network of factory dealers. Typically, these are newer model, low-mileage cars that have passed through a rigourous inspection process. But each automaker has their own variation on the certified program, with the best ones offering additional guarantees, roadside assistance and other benefits normally associated only with new cars. But there is a premium to be paid for these perks and not everyone agrees the higher price is always justified.

“You should expect to spend at least $300-500 more for a certified used car, but the question is, is it worth it?” asks Phil Edmonston, author of the Lemon-Aid Used Car Guide. J.D. Power and Associates pegs the certified premium even higher at up to $1,600 over the price you would pay for the identical car at your neighbourhood, independent used car dealer.

What you get for that extra money depends largely on where you’re shopping. For instance, If you’re buying a certified pre-owned car from a Honda dealer, your used vehicle will come with an extension of the original powertrain warranty up to 6-years or 120,000 km, whichever comes first. In addition, you’ll have seven days or 1,000 km to exchange the vehicle for another one if it doesn’t live up to your expectations. And as a bonus, Honda dealers can also offer you financing rates as low as 0.9 per cent. A typical bank rate on good credit at an independent dealer is about 8 per cent. The APA’s Turk calls that a “huge advantage” for the majority of consumers who require financing over three to five years.

Toyota also offers a similar certified program, but some of the domestic automakers like Ford and Chrysler have watered down versions of the CPO system. Ford offers no extended warranty at all, but does give buyers a cooling off period with a money-back guarantee for the first 3-days or 500 km of ownership. Ford also throws in one year of free basic maintenance and roadside assistance. Chrysler, on the other hand, offers little more than a 3-day or 500 km exchange period.

Still, for consumers with a deep-rooted anxiety about buying used cars, the experts agree that the right certified vehicle can be a good choice. The key lies in doing your research and reading the fine print. With that in mind, here are the top five tips from Turk and Edmonston on how to find the best, certified pre-owned vehicle:

1/. Brand power: Many people prefer buying used cars over new because of the steep depreciation that goes along with that new car smell. But vehicles from Japanese automakers, like Honda and Toyota, tend to lose value at a more glacial pace, making them still quite pricey even after a year or two. However, domestic vehicles like Ford and General Motors products depreciate much faster and represent better used bargains.

2/. Second opinion: Although certified vehicles are subject to a detailed inspection, that doesn’t mean you shouldn’t also get a second opinion. A certified car is not the same as a new vehicle and that means brakes, tires and exhaust will all have some wear. An independent mechanic can take a look at these common maintenance items and make sure the dealer’s mechanic didn’t miss anything. Expect a labour charge of about $80-$100 for an independent inspection.

3/. Background check: While you’re getting your certified vehicle checked under the hood, it’s also a good idea to check out its life story. And because even dealers can get tricked, a vehicle history report from a web-based service like CarProof (www.carproof.com) or CarFax (www.carfax.com) is a great way to check for hidden accident claims, unpaid liens and odometer fraud. CarFax reports cost $25 for a single history or $30 for unlimited reports. CarProof charges $35 to $60 for each report, depending on the depth of information provideds.

4/. To the point: Most certified vehicles are put through a myriad of examinations during the certification process. Often, anywhere between 100 to 300 “points” must be checked off before they can join the elite ranks of used cars. Buyers should ask for the checklist and keep it on file so that if something does go wrong, they can check it against the initial inspection and see if it was something that was certified.

5/. Extended care: Peace of mind is paramount for many used car buyers and that’s why factory certified cars often come with extended warranty protection. But not all extended warranties are created equal, so buyers need to ask exactly what is covered and for how long. Some warranties are simply extensions of the original protection up to six years, while others start a new warranty period when you pick up the keys. And some manufacturers like Ford and Chrysler offer no extension beyond the remaining factory warranty. Also, make sure it’s the manufacturer and not a third-party company backing the warranty.

* First published in MoneySense magazine

Copyright 2008 Carblogger (no unauthorized reproduction allowed)

‘08 Ford Escape Hybrid – a real truck with a heart of green?

I recently had the pleasure of driving the 2008 Ford Escape Hybrid for a full week and must admit that I like this truck…a lot.

It’s not overly big, but it is large and boxy enough to haul a decent amount of cargo. In fact, its gas guzzling big brother the Ford Explorer is hardly much bigger in the back end. But best of all, for those of us who need extra space and hate the high price of gas, it gets amazing fuel economy.

My tester averaged about 6 litres/100 km in both city and highway driving. I actually saw the fuel economy meter move to 5 L/100 km, but only briefly. My personal daily driver is an extended minivan which has an official city rating of 12L/100 km, but like most vehicles probably gets about 20% less than that in real world use. My previous vehicle was a Pontiac Vibe and that efficient little wagon is rated almost identically to the ‘08 Escape.

Now, much has been said about hybrid vehicles with inflated fuel stats but the front-wheel-drive Escape seems pretty true to its official rating of 6.5L/100 km city and 6.9L/100 km hwy. The AWD model, of course, fares worse at 6.8L/100km city and 7.3L/100 km highway, which is nothing to sneeze at either.

If you want to compare that with the regular FWD, 4-cylinder Escape, it claims at 10.3L/100km city and 7.7L/100 km highway. Not a huge difference on the highway, but if you spend most of your time stuck in traffic then it is a considerable difference. And if fuel prices keep climbing the previously weak economic argument for buying a hybrid begins to make as much sense as the environmental argument.

Speaking of price, the ‘08 FWD Escape Hybrid starts at $31,499, which isn’t far off from a mid-level Honda CRV or Toyota RAV4. Still, it is far above a base FWD 4-cylinder Escape priced at $23,999.

Getting back to the fuel economy for a moment longer, the Escape Hybrid works its magic by using a full hybrid system that not only shuts down the engine at stop lights, but can also power the vehicle on electricity alone at low speeds if you take it easy on the gas pedal. I also found that if you brake when approaching slower traffic the gas engine would shut down and stay off if you tread lightly on the pedal. This saves a tremendous amount of fuel when you’re stuck in stop-and-go traffic.

Having said all that though, there are a couple of things I didn’t like so much about the Escape. For one thing, if you need to fold the rear seats flat to move something larger, the headrests must be removed and there is no logical place to store them. This is true of not just the hybrid, but all Escapes. I also found the vehicle to have huge blind spots that kept me shoulder checking more often than I normally would. The vehicle is also a little sluggish from a dead stop, but if you’re trying to save fuel you should be going easy on the throttle anyway.

Copyright 2008 Carblogger (no unauthorized reproduction allowed)

Lexus tops J.D. Power dependability study…again

Lexus is tops in quality in yet another J.D. Power and Associates survey of vehicle owners. So that’s good, right? Maybe, maybe not.

Manufacturers who rate well love these surveys because they can use them in their marketing and advertising campaigns to assert their superiority. Those who do poorly, of course, are dismissive of the results. By the way, J.D. Power earns most of their revenue from manufacturer’s by licensing the use of their logo and name in the flood of advertisements that follow each survey.

But let’s get back to the results. Yes, Lexus came out on top again, but GM has slipped from a tie with Lexus Lexus for number one all the way down to number six. Much of that drop is attributed to GM models that are no longer being produced, but then again the top-rated Buick Century which propped up GM’s rankings has also been discontinued.

As for Toyota, the parent company of Lexus, it’s the 14th straight year Japanese automaker’s luxury brand has held the highest ranking in the annual study, which measures problems experienced by the original owners of vehicles after three years.

Second place went to Ford Motor Co.’s Mercury brand, which is no longer sold in Canada. GM’s Cadillac brand was third, Toyota itself was fourth and Honda’s Acura division was fifth.

As for the worst rated vehicles, Land Rover (formerly owned by Ford but now sold to India’s Tata Motors Ltd.) placed dead last again. Anyone who buys one of these overpriced status symbols is just looking for trouble

In the most improved segment, GM’s Saab brand was the top mover, though they still remain a risky buy and depreciate at an astonishing rate.

But just what sort of problems are being counted here for these rankings. As it turns out, we’re not talking about seized engines and electrical fires. The most common complaints recorded by J.D. Power are wind noise, noisy brakes, alignment issues and dashboard problems. Hardly the stuff of automotive horror stories.

So what can we extrapolate from such minor complaints. Perhaps not a lot, but it should be said that the rankings do tend to mirror what consumer advocates have been saying about the current crop of car brands out there. And what’s encouraging about the survey is quality control and reliability seems to be on the rise across the industry, which is great news for consumers.

Having said that though I’ll leave you with one fun fact from the study: Chrysler was the only North American automaker with no brands ranked better than the industry average. That’s gotta hurt a company already facing a sever financial squeeze.

Smart buys and dumb car options

(originally published in the August 2007 issue of Today’s Parent)

After weeks of painstaking research and pushy salespeople, you’ve finally decided on your next family vehicle. But now you’re facing a whole new set of options, and most seem to come with a confusing acronym and a steep price tag. To help you, we asked Lemon-Aid author Phil Edmonston which new car options are worthwhile, and which are a waste.

Smart money
Supplemental restraint systems (SRS): Front airbags are now standard, but some cars offer greater protection. The best systems include side impact airbags to protect the torso, and side curtain airbags to protect the head. (Note that these features, unlike front airbags, are safe next to car seats.)

Electronic stability control (ESC): Most useful on SUVs and minivans, ESC prevents vehicles from sliding sideways and rolling over. A recent study by the US National Highway Traffic Safety Administration (NHTSA) found that SUVs with this feature were involved in 63 percent fewer single-vehicle crashes.

Integrated child safety seat: Designed for children over 12 months and weighing more than 9 kg (20 lb), these built-in seats neatly fold away when not in use. More importantly, parents never have to worry about whether the seat has been properly installed.

Dumb money
GPS navigation: They may serve as a face-saver for dads who refuse to ask directions, but many GPS systems are difficult to program and a dangerous distraction. Portable units are far cheaper and do the same job if you must have one.

Reverse warning system: Sensors on the bumper sound an audible warning when objects obstruct your path, but false readings can occur. Many drivers eventually disconnect the system or simply ignore it.

Getting a little extra green for your hybrid

So there you sit in your favorite café, sipping a Fair Trade latte, pondering your carbon footprint and admiring your gleaming new Toyota Prius parked out front.

There’s never been a more rewarding time to save the environment—while also luxuriating in that wonderful new car smell. Under the ecoAUTO program, the federal government will hand you a rebate of up to $2,000 if you buy a new hybrid car or other fuel-saving vehicle.

The free money is hard to pass up. Purchasing a Toyota Prius, a Honda Civic Hybrid or a front-wheel drive Ford Escape Hybrid puts the maximum $2,000 rebate in your pocket. Other hybrid vehicles earn you a sweet $1,000 to $1,500 in federal cash.

But the program isn’t just for hybrids. Buying a fuel-efficient but non-hybrid vehicle, such as some models of the Toyota Yaris and Mini Cooper, merits a $1,000 reward. Even some SUVs without drinking problems, like the Jeep Compass and Jeep Patriot, qualify for $1,000 in green cash. And “flex fuel vehicles,” which run on a special ethanol blend, enjoy a $1,000 rebate.

The biggest savings come in provinces such as Ontario, Quebec, Manitoba, British Columbia and Prince Edward Island, which run their own rebate programs that top up the federal dough with even more cash. Most provincial schemes offer up to $2,000 a vehicle. P.E.I.’s program is the most generous, providing residents of that province with refunds of up to $3,000 off hybrid vehicles. Combined with the federal incentive, that cuts the price of a Honda Civic Hybrid from $26,250 to $21,250—which means the hybrid actually costs a P.E.I. resident a couple of thousand less than the nonhybrid Civic EX-L model.

So should you let the rebates determine what you will be driving next? If you’re an ardent environmentalist, you should definitely take advantage of the program. Even non-environmentalists should factor in the free cash. If one of the cars on the rebate list is already high on your wish list, then the rebate may be the deciding factor that pushes it to the very top. If you’re dithering between several similarly priced vehicles, there’s nothing like a $1,000 cheque to make the decision for you.

On a strictly dollars-and-cents basis, however, it’s not clear that the vehicles on the rebate list always win the financial car race, even with the government cash. Among other issues, you have to read the fine print to make sure that your car purchase is eligible. To date, only new 2006, 2007 and 2008 model year vehicles purchased or leased (for at least 12 months) after March 20, 2007 can qualify for the ecoAUTO rebate. Used cars are not eligible, but dealership demonstrator vehicles are. And what’s worse, the program is being cancelled at the end of this year, so if you want the extra green you have to buy before the year is out.

Most of the provincial rebate programs are less generous than they look. All but the plan in Manitoba limit the amount of the rebate you get to the amount of provincial sales tax you pay. That means consumers who trade in a high-value vehicle in order to buy a hybrid get only a portion of the rebate.

To see how this works, let’s say you trade in a $20,000 vehicle on a $30,000 hybrid. You pay tax only on the difference in price, which is $10,000. In Ontario, where provincial sales tax ticks in at 8%, that means your tax bill is $800—and therefore you only qualify for $800 of rebate. Similarly, people who lease hybrids only qualify for a rebate on the amount of PST remitted through their monthly payments. Even then, leasing customers must wait until the end of their term before applying for the rebate.

Even if you’re up for the maximum rebate, you may find that a hybrid isn’t necessarily a money saver. It all depends on where you do most of your driving. If you rack up most of your kilometres on the highway, where a gas engine operates most efficiently, then a gas-electric hybrid engine won’t save you much money. It’s only during intense stop-and-go city driving that hybrids really cut fuel consumption.

According to Canada’s EnerGuide ratings, a Toyota Prius will use about $738 of gas a year to power its gas-electric engine, assuming you drive it an average number of kilometres. By comparison, a non-hybrid Toyota Corolla has an annual average fuel cost of $1,224—nearly $500 a year more. Problem is, the apparent savings from going hybrid disappear when you consider the higher price of the Prius. Even if you live in P.E.I. and max out on the combined rebates, you would still have to drive the Prius for 15 years before your fuel savings would offset the higher sticker price.

Of course, that equation becomes more reasonable if you buy a cheaper hybrid and get rid of a large, fuel-sucking, six-cylinder vehicle. For instance, if you decided to scrap the family minivan in favor of a compact hybrid you could save about $1,200 a year on fuel costs. Over five years that’s a substantial savings of $6,000.

But you have to be realistic. If you’re driving a large vehicle, you probably have a good reason for needing so much space. No compact car with a large battery compartment taking up trunk space is likely to be a suitable substitute, says Mohamed Bouchama of the consumer group Car Help Canada. “If someone is looking at a Toyota Corolla, they may now want to look more closely at an alternative like the Toyota Yaris because of the $1,000 rebate, but if you need a minivan, you still need a minivan.”

(originally published in the December/January 2008 issue of MoneySense magazine)

Lemon-aid author says Ford’s rescue plan ‘too little, too late’

Ford Motor Company is bleeding red ink and embarking on a desperate plan to convert their truck plants and import six, smaller European vehicles. But Lemon-Aid author and self-professed car curmudgeon Phil Edmonston says “it may be too little, too late.”

“Plant conversions will burn through more billions and new products won’t likely be introduced until late 2009,” says Edmonston. “Furthermore, each time American carmakers have imported their European small cars into North America, the vehicles have been unreliable, poorly serviced, and sales disasters. Think of the Ford Cortina and GM Firenza as two notorious examples of fuel-frugal vehicles rushed onto the Canadian market during the last fuel crisis in the 70s.”

In yet another massive blow to a North American automaker, Ford announced the worst loss in its history this week, a staggering $8.7 billion hit in the second quarter. Ford blamed the downtown on high gasoline prices driving consumers away from its big SUVs and trucks. But as I’ve written here before, the writing has been on the wall for a long time and Ford’s glacial attempts to address the changing market is largely responsible for the mess it finds itself in.

For far too long, Ford, GM and Chrysler have been mesmerized by the fat profits they were making from large trucks. According to Edmonston, a $10,000 profit was normal on these monster trucks, while economy cars brought in perhaps a 10th of that. But that hasn’t stopped companies like Toyota and Honda from reaping large rewards from smaller vehicles and they are not facing the same struggles now.

Edmonston says he believes Ford can turn things around but he believes the company’s rescue plan should include the following:

1. Expand co-ventures with Asian and European automakers like Mazda who know how to make profitable and reliable small vehicles. Ford has successfully done this on a small scale with the Ford/Mazda Escape/Tribute small SUV and the Escort economy car.

2. Sell money-losing Volvo.

3. Cut retail prices by 15 percent and make sure Canadian prices are no higher than American prices.

4. Drop the estimated average $1,500 Transportation Fee on new purchases.

5. Extend the base warranty on all vehicles to 10 years/160,000 km.

We’ll have to wait and see if Ford takes any of Edmonston’s advice to heart.

Eat your import? I think not

Two news stories caught my eye this week. The first concerned the Honda Civic’s enduring popularity with Canadian drivers, while the other predicted that Toyota would shortly topple GM as the world’s top automaker. Neither of these items should be a surprise to anyone who follows the auto industry, but they do once again highlight the terminal malaise facing the North American automakers.

When I first stepped into my first Honda Civic I was awestruck by this little car’s looks and handling. The fact that it had a reputation for bullet-proof reliability sealed the deal immediately. Compared to my first car, a 1982 Mercury Lynx which subsequently self-destructed in its first year, my little Civic was a revelation.

That was back in 1991 and even then Honda had been well-established in North America. Since then, the company, along with Toyota, has made constant inroads with a simple formula of selling well-made cars that people want to buy. The Civic, which is now outselling Ford’s F-series trucks as the top selling vehicle in Canada, is still miles above the competition from Ford, GM and Chrysler.

Don’t get me wrong though. I wish the now inaccurately named Big Three would produce better cars and they are making improvements on some fronts. But I’ve owned several GM products, one Ford (the ill-fated Lynx) and a Chrysler, and none of them has impressed like the Hondas and Toyotas I have owned.

Once upon a time I worked as a daily newspaper reporter in Oshawa, Ontario, the home of GM Canada. On more than one occasion I had to drive my import into a CAW protest or strike and endured sneers and caustic remarks about my choice of wheels. And I always felt compelled to respond to those attacks.

For one thing, I couldn’t afford any of the GM vehicles made in Oshawa. But even if I could, why would a young guy want to drive their dad’s Oldsmobile or some other mid-sized GM sedan like the awful Chevy Lumina. Sure, I could have bought a smaller GM car like the Chevy Sprint, but that was actually a rebadged Suzuki Swift. I drove those at the newspaper. They had three cylinder engines – need I say more.

At least my Honda was made in Ontario and supported Ontario communities, I would argue. And besides, just because my neighbour builds houses for a living doesn’t mean I should put my family in one of his homes if I don’t believe it to be best built product available. Does it?