Lemon-Aid Used Cars and Trucks 2012–2013

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Introduction

SECRETS, SURPRISES, AND

SAFETY DEFECTS

Who Do You Trust?

Tokyo Electric Power Co., or Tepco, announced on national TV that all was well: The utility was on top of the accident. No radiation had been released into the atmosphere. Return to regular programming.

Mainstream media dutifully reported that story. But not Shiraishi’s Our Planet TV, which soon broadcast a live interview with five Japanese reporters in Futaba City, a community near the stricken plant. The reporters, who had covered the Chernobyl disaster, told a very different tale.

They held up Geiger counters showing the level of radiation was almost beyond calculation, said Shiraishi, a former network TV journalist who co-founded the Internet venture in 2001, hosts the show and reports many of its stories. They’d never seen anything like it.

LOS ANGELES TIMES

DECEMBER 18, 2011

http://articles.latimes.com/2011/dec/18/world/la-fg-japan-distrust-20111218

In researching this 42nd annual edition of Lemon-Aid, I see that the auto industry is still up to its old tricks: lying to customers about fuel economy and safety; giving less car but asking for more money; and making owners pay for repairs that are caused by factory screw-ups.

Radioactive cars?

You bet.

But don’t expect Japanese automakers who routinely ignore claims of sudden acceleration and catastrophic brake failures to be any more truthful about their radioactive cars. They know some of their contaminated vehicles and parts were shipped to Chile and Russia, where they were turned back.

Since few ports scan for radiation, the Associated Press estimates that 1 percent of all shipped vehicles, parts, and accessories (powertrains, hybrid parts, radios, and tires) will be radioactive and will show up in other countries, including North America.

The March 11, 2011 nuclear plant meltdowns in Japan show that, just as in war, truth is the first casualty of natural disasters. You can expect governments and corporations to lie through their teeth in order to protect their own interests.

Prudent new and used car shoppers should be wary of Japanese vehicles built or exported from Japan after March 11. Instead, choose a model manufactured in Canada, the United States, or Mexico. You can confirm where a vehicle was built by looking at the date of manufacture plate (usually affixed to the driver’s inside door jamb, near where the oil change stickers are found).

Japanese-made car parts are sold to automakers around the world. This means auto parts installed by dealers for any make of vehicle could be contaminated due to parts suppliers’ close proximity to the Fukushima nuclear facilities.

So far, there is no agreement as to how much radiation poses a health threat since the effects vary and cancers can be slow-growing. Lemon-Aid’s position is that Canada must be proactive and install radiation screening for imported vehicles at all major ports of entry.

Even if Ottawa says there is no threat from radioactive Asian imports, other countries and independent medical research disagree. Radiation from the Fukushima blast represents a real danger to North Americans, but especially to children, says the most recent independent health study, released December 19, 2011 and found at www.radiation.org/press/pressrelease111219FukushimaReactor-Fallout.html):

An estimated 14,000 excess deaths in the United States are linked to the radioactive fallout from the disaster at the Fukushima nuclear reactors in Japan, according to a major new article in the December 2011 edition of the International Journal of Health services. This is the first peer-reviewed study published in a medical journal documenting the health hazards of Fukushima.

Authors Joseph Mangano and Janette Sherman note that their estimate of 14,000 excess U.S. deaths in the 14 weeks after the Fukushima meltdowns is comparable to the 16,500 excess deaths in the 17 weeks after the Chernobyl meltdown in 1986. The rise in reported deaths after Fukushima was largest among U.S. infants under age one. The 2010–2011 increase for infant deaths in the spring was 1.8 percent, compared to a decrease of 8.37 percent in the preceding 14 weeks.

Just six days after the disastrous meltdowns struck four reactors at Fukushima on March 11, scientists detected the plume of toxic fallout had arrived over American shores. Subsequent measurements by the U.S. Environmental Protection Agency (EPA) found levels of radiation in air, water, and milk hundreds of times above normal across the U.S. The highest detected levels of Iodine-131 in precipitation in the U.S. were as follows (normal is about 2 picocuries I-131 per liter of water): Boise, ID (390); Kansas City (200); Salt Lake City (190); Jacksonville, FL (150); Olympia, WA (125); and Boston, MA (92).

Epidemiologist Joseph Mangano, MPH MBA, said: This study of Fukushima health hazards is the first to be published in a scientific journal. It raises concerns, and strongly suggests that health studies continue, to understand the true impact of Fukushima in Japan and around the world. Findings are important to the current debate of whether to build new reactors, and how long to keep aging ones in operation.

Mangana is executive director, Radiation and Public Health Project, and the author of 27 peer-reviewed medical journal articles and letters.

Internist and toxicologist Janette Sherman, MD, said: "Based on our continuing research, the actual death count here may be as high as 18,000, with influenza and pneumonia, which were up five-fold in the period in question as a cause of death. Deaths are seen across all ages, but we continue to find that infants are hardest hit because their tissues are rapidly multiplying, they have undeveloped immune systems, and the doses of radioisotopes are proportionally greater than for adults.

There’s more:

1.  China rejects ship from California with ‘abnormal’ radiation—Had only been in Tokyo for a few hours: http://enenews.com/china-rejects-ship-from-california-with-abnormal-radiation-had-only-been-in-tokyo-for-a-few-hours, March 29, 2011.

2.  Vancouver, Canada radiation tests show iodine-131 in rainwater at almost 100 times above US drinking water limit: http://enenews.com/recent-radioactivy-testing-vancouver-canada-shows-iodine-131-rainwater-almost-100-times-above-drinking-water-limit, April 8, 2011.

3.  Chile finds radiation in Korean cars—Tests show up to a level 5 on radioactive index, level 9 needed for alert: http://enenews.com/chile-finds-radiation-ship-south-korea-tests-show-level-5-radioactive-index-level-g-needed-alert, May 2, 2011.

4.  Vancouver Paper: Health Canada detected massive amounts of radioactive material from Fukushima—Iodine-131 spiked above maximum allowed limit at 4 of 5 sites: http://enenews.com/vancouver-paper-health-canada-detected-massive-amounts-of-radioactive-material-from-fukushima-iodine-131-spiked-above-maximum-allowed-limit-at-4-of-5-sites, August 4, 2011.

5.  Member of Parliament: Health Canada ‘negligent’ on Fukushima radiation threats: http://enenews.com/canadian-member-parliament-health-canada-negligent-fukushima-radiation-threats-important-media-raises-issue, August 5, 2011.

6.  Egypt finds shipment from Japan with radioactive electric and mechanical instruments—Exceeded legal limit—Authorities trying to keep radiation from spreading: http://enenews.com/egypt-finds-shipment-japan-radioactive-electric-mechanical-instruments-exceeded-legal-limit-authorities-trying-keep-radiation-spreading, August 10, 2011.

7.  Tires found to be radioactive: http://tirereview.com, December 2, 2011.

Secret Warranties

Secret warranties, often called goodwill policies by automakers, are still used to placate some customers when poor-quality components fail after the warranty expires. This practice has nothing to do with goodwill. It’s simply a cynical way to make the factory’s mistake a selling tool for the dealer. The reasoning is simple: customers will stay loyal to a dealer who pretends to bend the rules in giving out a free repair (even though the failure is caused by a factory-related defect that should be disclosed to all owners).

Automakers have thousands of secret warranties applicable to used cars. These warranty extensions pay for repairs used to correct manufacturing or design defects. GM’s catalytic converter secret warranty, for example, represents an $800 savings, but few motorists know it exists.

In Part Two of this guide we have an extensive, revised list of secret warranties that are still in effect for thousands of 1995–2012 cars, trucks, SUVs, and vans.

Less Car, More Money

Carmakers are also cheapening or decontenting their products to make more profits. This has been especially true with Toyota starting in the late ‘90’s, and has been carried over to the early entry-level Mercedes B- and C-Class models, as well as the redesigned 2012 Ford Explorer and Fiesta, Honda’s Civic, the Hyundai Sonata, and its twin, the Kia Optima. In fact, these last five cars are better buys used (2011 and earlier), than new.

Five Cars Better Used Than New

2011 Ford Explorer

2011 Ford Fiesta

2011 Honda Civic

2011 Hyundai Sonata

2011 Kia Optima

A Bankrupt Saab Story

As predicted by Lemon-Aid a decade ago, Saab finally declared bankruptcy last December and stopped paying for warranty coverage for all its vehicles in the U.S. and Canada. The company is expected to be sold piecemeal for parts.

General Motors says it will cover any warranty remaining on vehicles sold under its ownership of Saab, which ended in February 2010. GM estimates its warranty will cover a majority of the about 48,000 Saabs still under warranty in the U.S. and the 9,000 Saabs in Canada. Saab owners can also hold their selling dealer responsible for damages arising from the bankruptcy or from manufacturing defects without any time limitation (see Part Two).

Saab was originally a division of Svenska Aeroplan Aktiebolaget (English: Swedish Aeroplane Limited), which had been created in 1937 to build fighter planes to protect Sweden’s neutrality leading up to WWll. Shortly before the war ended, Saab created an automobile division and brought out its first cars in 1947. GM bought 50 percent of the company in 1989 and the rest in 2000, but Saab continued to lose huge sums of money until it was sold at a loss to Dutch luxury carmaker Spyker as part of GM’s bankruptcy reorganization in 2010.

Auto Parts Price-Fixing

Have you looked at your latest repair bill and asked Why in the heck are parts prices so high? Well, according to justice officials on four continents, the answer may be that the high prices have been secretly cooked among parts suppliers. A number of class actions have recently been filed in the U. S. against Honda and Toyota and many of the suppliers listed below. Owners seeking information as to how they can get compensation will find a summary at the end of Part Two in Pending Cases.

Price-fixing probes among dozens of law enforcement agencies are also in full swing. The global investigation is looking into allegations that 19 suppliers secretly conspired to fix prices or allocate customers, market shares, or geographic areas. The parts involved were sold to automakers, dealers, and independent repair agencies.

Companies of interest to justice officials are mostly based in Europe, Japan, and the United States. Components targeted in the probe are ball bearings, electrical and electronic systems, heat exchangers, occupant safety devices, power management systems, refrigerants, small motors, and wiring harnesses and systems.

Auto Parts Price-Fixing (Companies of Interest to Probers]

* In a plea deal with U.S. Department of Justice officials last September, three Furukawa executives were sent to jail and the company was fined $200 million for price-fixing and bid-rigging over a 10-year period. Shuji Hayashida, who was CEO of U.S. subsidiary American Furukawa Inc. for most of the alleged collusion period, will not get any government protection under the plea and may face new charges.

Sources tell me that Furukawa operated in Canada during the past decade and may have committed similar antitrust violations in Canada that it pled guilty to in the States.

Canada’s federal Competition Bureau should investigate whether violations of Canadian law (Section 45) occurred and take the appropriate action against Furukawa and other companies named as companies of interest in the U.S. Justice Department’s investigation.

Section 45 is the cornerstone cartel provision of Canada’s Competition Act. It makes it a criminal offence when two or more competitors or potential competitors conspire, agree or arrange to fix prices, allocate customers or markets, or restrict output of a product. This offence is known as a conspiracy, and is punishable by a fine of up to $25 million, imprisonment for a term of up to 14 years, or both.

2012–2013 Lemon-Aid Guide highlights

1.  A listing of free online sources for showing current values for used cars, trucks, SUVs, and vans.

2.  A comparison of fuel-economy claims in Canada and the States.

3.  The disclosure of Mercedes’ two new secret goodwill warranties that cover premature corrosion damage on 2006–07 B-Class compacts and the free replacement of the camshaft adjustment solenoid and wiring harness on 2001–05 C230 models.

4.  Lemon-Aids Endangered Species List has been expanded to include Jaguar, Land Rover, Volvo, the Mercedes-Benz not-so-smart Smart Car, and now bankrupt Saab.

5.  2011–12 model automobiles that have chin-to-chest head restraints, blinding dash reflections, dash gauges that can’t be seen in sunlight, and a painful wind-tunnel roar if the rear windows are opened while underway.

6.  Why Audis are beautiful to behold, but hell to own (biodegradable transmissions, rodent-snack wiring, and mind-boggling depreciation).

7.  New Canadian jurisprudence that holds General Motors liable for occupant injuries caused by inadvertent airbag deployment.

8.  Other recent jurisprudence that gives arbitrators more leeway in considering poor automotive design as a material defect.

9.  Why the Supreme Court of Canada has called one company the insurance company from hell and slapped it with a million-dollar punitive damages judgment.

10.  An exhaustive library of case law to support the use of electronic data recorders as proof in criminal and civil cases.

11.  Why ethanol and hybrid fuel-saving claims have more in common with Mother Goose than the Society of Automotive Engineers.

12.  How to get a refund if your Honda hybrid is a gas guzzler.

13.  A new, extensive list of the best cars for senior drivers, along with lists of the optional features that are worth the extra cash—and the ones that are simply a pain in the tailpipe.

14.  Hundreds of new service bulletins and safety complaints.

15.  More online resources not commonly known to buyers.

Mercedes’ service bulletin tries to restrict its responsibility to the replacement of the solenoid and adapter harness, but the company is also fully liable for all other damages caused by the above-recognized defect.

Lemon-Aid may taste a bit tart for some, but don’t ignore its advice. The Used Car and Truck Guide tells you which cars are overpriced and by how much. Plus, the Guide can work wonders if you just place it on the sales agent’s desk as you haggle.

Why have the bestselling Lemon-Aid guides been so trusted over the past 42 years?

It’s all because the guides use tips from whistleblowers, owner complaints, court decisions, government findings, and hard-to-get internal carmaker service bulletins to expose safety- and performance-related defects, sales scams, and secret warranties, and because Lemon-Aid is updated each year.

Past guides warned of Toyota’s sudden unintended acceleration years before the U. S. Department of Transportation fined Toyota $48 million for delaying its recall. In Canada, our class-action testimony four years ago forced General Motors to refund millions of dollars to Canadians stuck with overheating 1995–2004 V6 engines.

In the spring of 2011, we made Chrysler recall 300,000 2003–2011 Ram pickups to fix their death wobble, an uncontrollable shimmy caused by uneven roadways and potholes. This recall ended Chrysler’s nine years of stonewalling owner complaints and fruitless government investigations.

Keep this consumer victory in mind next time someone says, you can’t win when battling a car company.

With Lemon-Aid by your side, "Yes, you can."

Phil Edmonston

April 2012

1Part One

BEATERS AND BARGAINS

GM’s Volt has been a resounding flop: less than half of the number of cars projected have been sold. GM says the average Volt owner makes $170,000 per year.

The Chevy Volt: An Electric Edsel?

Each Chevy Volt electric car sold thus far may have as much as $250,000 in state and federal dollars in incentives behind it—a total of $3 billion altogether, says James Hohman, assistant director of fiscal policy at the Mackinac Center for Public Policy.

GM has estimated they’ve sold 6,000 Volts so far. That would mean each of the 6,000 Volts sold would be subsidized between $50,000 and $250,000. If battery incentives are included in the analysis, the potential government subsidy per Volt increases to $256,824.

The $3 billion total subsidy figure includes $690.4 million offered by the state of Michigan and $2.3 billion in federal money. That’s enough to purchase 75,222 Volts with a sticker price of $39,828.

This might be the most government-supported car since the East-German Trabant, said Hohman.

MICHIGAN CAPITOL CONFIDENTIAL (CAPCON)

WWW.MICHIGANCAPITOLCONFIDENTIAL.COM/16192

DECEMBER 21, 2011

Cheap and Simple: Buy Used

Buying a used vehicle is easier than buying new and you can end up with reliable wheels for less than half what the car originally cost. Plus, there is less of a showroom shakedown—confusing figures, payment plans, and costly extras—awaiting you. You get a car that has already been scratched, dented, and corroded, but this saves you from that sickening feeling when new-car imperfections first appear.

Most cars sold in Canada are used: While new-car sales were up some 6.6% over last year to 1.557 million, that’s still far short of 2003’s peak of 1.703 million. Used-car sales, though, are going through the roof. In fact, the 2.89 million previously owned bargains and beaters sold in 2010 was an-all time high.

About 30 percent of the car fleet in Canada—about 6 million of the 21.4 million cars on the road—are 10 years old or older. The transformation from new to used occurs as soon as the sales title passes from dealer to a second owner, thus throretically making every car sold a used-vehicle. The beauty of this instant morphing from new to used is that it creates a huge pool of inexpensive used vehicles and competing sellers who expect you to haggle.

And price haggling is encouraged because depreciation gives buyers a large margin to bring prices down. In fact, most private owners discover they can get about 20 percent more by selling their trade-in privately than what most dealers would offer. Dealers also make more money selling used vehicles than they make selling new cars and trucks, and they aren’t burdened by such things as the manufacturer’s suggested retail price, freight charges, options loading, high floor plan interest rates, reduced commissions, and warranty charge-backs. The savings generated by these simpler transactions often go straight into the dealer’s and buyer’s pockets.

Car dealers get their vehicles from fleets, lessees, wholesalers, trade-ins, and private sales. Some of the less reputable dealers will buy at auction vehicles that other dealers unloaded because they weren’t good enough to sell to their own customers. Other dealers will set up curb-sider scams where they sell used vehicles from private homes, using their employees as shills.

The 2008 Ford Escape 4×4 SUV (left) and the 2008 Hyundai Tucson (right) are small SUVs recommended by Lemon-Aid. Both vehicles sold new for about $28,000. The Escape, though, took a bigger depreciation hit and is now worth only about $13,000, or $2,000 less than Hyundai’s 4×4. Going more upscale, the $30,000 2008 Honda CR-V SUV now sells for an impressive $17,000—more than half its original price after four years. Why? Because buyers are willing to pay a premium for what they consider better-made Asian vehicles—no matter if some come from South Korea and once were considered bottom-of-the-heap, quality-wise.

Going into 2012, Chrysler, Ford, and GM dealers have an abundance of young three-year-old off-lease vehicles at unusually low prices because the buy-back prices at lease end were set low as the recession loomed. On the other hand, dealers now selling import brands are chronically short of product because owners keep these vehicles three to four years longer and use the buy-back option for themselves. The majority of private sales are comprised of vehicles six years or older, while independent used-car dealers get most of their profit from selling anything that can be driven away.

Although a bit pricey, when it comes to reliability, it’s hard to beat the CR-V’s quality control, practicality, ideal ride height, fuel economy, and easy entry and exit. A redesigned 2012 will likely drive down the resale values of earlier renditions, although the numb steering and circa 1995 navigation system could be a turn-off for many.

Asian Car Bargains?

The bad news is that most Asian small car prices are about 10 percent higher ($1,000–$1,500) this year due to a limited supply of both new and used vehicles and higher fuel costs, which drives car buyers toward reliable, fuel-frugal Asian makes. Some Asian companies have lost market share, while Detroit auto manufacturers are awash in profits.

Fewer new cars means higher used car prices will continue through early 2012, particularly for buyers of small and family-sized vehicles who will be at a disadvantage due to the weakened competition. Fortunately, prices are expected to level off as supply increases in the spring of 2012.

Japan’s auto meltdown: buying strategies

Used Honda Civics are more in demand than ever now that the redesigned 2012 has been trashed by most independent consumer rating groups. Toyota is regaining its sales footing after being mauled by incessant safety recalls and product shortages. Meanwhile, South Korean automakers like Hyundai and Kia have been riding a surge of record sales over the past few years. This is now even more likely to continue as a result of Consumer Reports’ April 2011 Annual Auto Issue which gives a Recommended green light to most of Hyundai’s cars and SUVs and a few (Omigod!) Kias. Korean brands presently outsell European brands in North America. Naturally, used Hyundais and Kias will continue to be in short supply.

Think global, buy local

New cars sold in 2012 will be garnished with hefty rebates and other sales incentives, which will drive down the costs for used vehicles. Particularly good buys will be Asian automakers’ discounted vehicles manufactured in North America, which will be unaffected by the supply, servicing, and parts problems impacting imported models. A three-year-old, Ontario-built Honda Civic, or Toyota Matrix or Corolla will be good choices.

Used Hondas are least likely to have servicing problems since last year 92 percent of Honda’s Canadian sales came from domestically manufactured cars like the Civic, Acura, and Ridgeline pickup. Mazda Canada is also well situated to service its products: its two best-selling models in Canada, the Mazda3 and Mazda5, are both manufactured in Hiroshima, Japan, far away from the quake’s epicentre, and unaffected by the Fukushima fallout. Subaru and Suzuki models are also solid choices, having emerged unscathed because their Japanese operations are far from the earthquake-ravaged area.

Buying a used Toyota or Nissan is a bit riskier. Nearly half the vehicles Toyota sells worldwide are built in Japan and many of its parts suppliers are gone. Moreover, Nissan’s engine plant is situated near the stricken Fukushima Daiichi nuclear plant, and Nissan’s assurance that it will test all cars and some parts for radiation contamination before releasing them for export isn’t all that reassuring.

Some fuel-efficient cars, like the Toyota Yaris, Prius hybrid, and Honda Fit, may be particularly risky buys because they are made in Japan. The Fit is unique in the sense that it will be built in China and imported into Canada this year and then some manufacturting will shift to Mexico, starting with the 2014 model year.

Chinese-made Fits do not receive as high ratings for quality control as do the Mexican-made model. Again, check the date and place of manufacture sticker found on the driver’s door jamb.

The Honda Civic is Canada’s favourite small car. In the States, it’s the Toyota Corolla that rules the small-car roost. Downsized SUVs—such as the Subaru Forester, the Honda CR-V, and the Toyota RAV4—make up almost half of our small-car market but account for only one-quarter of sales south of the border. As far as minivans go, we believe that less is more and, therefore, favour small imports over Detroit’s unreliable front-drives and rear-drive gas hogs. The exceptions are trucks and sports cars (yes, the 2011 Mustang beats the pants off the Chevy Camaro).

VEHICLES THAT WILL LAST 15 YEARS OR MORE

Ford Crown Victoria, Escape, Grand Marquis, Mustang, and Ranger

GM Chevy Van, Express, Savana, and Vandura

Honda Accord, Civic, CR-V, Odyssey, and Ridgeline

Jeep Wrangler and YJ

Mazda 323 and 626, B-Series trucks, Miata, and Protegé

Nissan Frontier and Sentra

Toyota Camry, Corolla, Echo, Solara, and Tercel

Despite higher fuel costs that vary from $1.30 to $1.45 a litre as of April 2012, Canadians are still in love with their cars. Back in the ’70s, the average car racked up 160,000 km before it was dropped off at the junkyard. In the ’90s, the average car reached 240,000 km before it was recycled. Nowadays, new models are expected to see 300,000 km before they’re discarded. In the 2011 sales table below, most of the bestsellers are models recommended by Lemon-Aid and should last at least 15 years. Carmakers with sales trending downward will offer the most sales incentives.

The above chart doesn’t show which vehicles flopped in 2011. However, some Ford, Dodge/Ram, Chevrolet, Buick, Lincoln, and Cadillac models all reported sale losses when compared with November 2010. Buick was one of the worst sellers with a 29 percent decline.

Buick may owe its present-day survival to China, where it has been the prefferred luxury car of Chinese digntaries for over five decades. Last year, the brand was among the biggest in the booming Chinese market, accounting for sales of more than 447,000, or more than four times Buick’s volume in the U.S.

Some other ailing automakers are Saab, Suzuki, Volvo: all three Lemon-Aid rated as Not Recommended last year.

A Good Time to Buy

There are lots of reasons why 2012 is a good year to buy a used car or truck—as long as you stay away from some of the rotten products. Fortunately, there’s not as much late-’70s and early-’80s junk out there as there once was, and models from 2006 and later are safer and come loaded with extra convenience and performance features, like standard electronic stability control, increased roof crashworthiness, and safer front and side full-torso airbags. Additionally, there are a lot of cheap vehicles to choose from as sellers compete with lower new-car prices, and a growing off-lease inventory.

But dealers aren’t giving anything away. For example, they are selling fuel-efficient small cars for more than last year since gas prices are creeping higher and major Asian automakers are still rebuilding their supplier supply lines. This has forced smart shoppers to buy slightly older, downsized vehicles, or to shop the South Koreans, to keep costs manageable.

But lower fuel consumption and cheaper prices aren’t the only factors to consider. Vehicle quality and dependability are equally important. Sure, you can prance around telling your friends how you stole that five-year-old Chrysler Caravan, GM Venture/Montana, or Ford Windstar/Freestar—until you have to spend $3,500 for engine or transmission work (or both, in GM’s case). Granted, some of the junk is fairly well known, and vehicles are safer now; however, many Detroit models are loaded with nonessential convenience and performance features that fail around the fifth year of ownership. Chief among these are navigation systems, adaptive cruise control, tire pressure sensors, ABS, automatic sliding side doors, and sunroofs. Among these defects, the sliding door and sunroof failures are the easiest to get repaired for free via a small claims court lawsuit.

Chrysler’s sliding door fix will require an hour’s labour, plus $200 for the door motor. No goodwill, just a goodbye.

In Service Bulletin No: T-SB-0094–10, Toyota gives similar coverage to fix rattling side doors for the same model years.

Toyota has had frequent sliding door failures through the 2010 model year. Its sliding door fixes may take over four hours and are covered by secret goodwill warranty extensions given to those customers who rant and rave the most after their warranty has expired.

Luxury Lemons

But let’s not pick on just Ford, GM, and Chrysler. European automakers make their share of lemons as well. For example, J.D. Power and Associates and Lemon-Aid readers have consistently ranked Mercedes’ quality as worse than average.

Dear Phil: I am writing about our experience with a 2006 B-Class we purchased in 2009. We chose the B-Class because of Mercedes’ reputation for quality and excellent service.

We were distressed to discover that—due to a manufacturing defect—all 5 doors were rusting internally.

We contacted our local dealership and asked for our vehicle to be assessed for repairs under the ‘goodwill’ warranty applicable to this situation. We were eventually told that Mercedes would pay only 80% of the repairs, leaving us with with a cost of approximately $1,800.

R. S.

Ontario

Premature rusting is a big problem affecting many different Mercedes models. To the company’s credit, they will pay for most of the corrective repairs even if the base warranty has expired. Still, the remaining payout is unacceptable for the average owner.

If you have been a steady reader of Lemon-Aid since 1991, you’ve been wary of Mercedes’ poor quality for almost two decades and probably saved money buying a Lincoln Town Car or Toyota Avalon instead. BMW owners have proven to be some of the most satisfied with their cars’ overall dependability when compared with most other European makes, including Audi, Jaguar, Porsche, Saab, Volkswagen, and Volvo.

Lincoln’s front-drive Continental (a failure-prone Taurus in disguise) and Mercedes’ unreliable luxury cars and SUVs are proof positive that there’s absolutely no correlation between safe, dependable transportation and the amount of money a vehicle costs, especially with most front-drive Lincoln and Cadillac luxury cars. Rear-drive Lincolns and Cadillacs, however, have always performed well after many years of use.

Chrysler luxury means beautiful styling and lousy quality control. Its luxury rear-drives, like the 300 and Magnum that once sold at a 10 percent premium, are now piling up on dealers’ lots due to their reputation as gas-guzzlers with serious automatic transmission, fuel, and suspension system problems, as well as body deficiencies. It’s hard to believe, but a 2009 Chrysler 300 Touring that originally sold for $32,095 is now worth barely $15,500. Depreciation also takes a pretty big bite out of Asian luxury car values: a 2008 Lexus IS 250 that once cost $32,000 now sells for $20,000.

Four Decades of Hits and Misses

Hits

Acura—CL Series and Integra; BMW—135i, 3 Series, and 5 Series; Chrysler—Colt, 2000 and later Neons, Stealth, and Tradesman vans (invest in an extended warranty for the automatic transmission); Ford—Crown Victoria, Econoline vans, Escape, 1991 and later Escorts, Freestyle/Taurus X, Grand Marquis, Mustang V6, and Ranger; GM—Cruze, Enclave, Equinox, Express, Firebird, Rainier, Savana, Terrain, Traverse, and Vandura; Honda—Accord, Civic, CR-V, Element, Fit, Odyssey, Pilot, and Ridgeline; Hyundai—Accent, Elantra, Genesis, Santa Fe, Tiburon, Tucson, and Veracruz; Kia—Forte, Rondo, and Soul; Lexus—All models; Lincoln—Mark series and Town Car; Mazda—323, 626, Mazda3, Mazda5, Mazda6, Miata, Protegé, and Tribute; Mitsubishi—Outlander; Nissan—Altima, Frontier, GT-R, Leaf, Murano, Rogue, Sentra, Versa, Xterra, and X-Trail; Subaru—Impreza, Legacy, Outback, and Forester; Suzuki—Aerio, Esteem, Kizashi, Swift, and SX4; Toyota—Avalon, Camry, Corolla, Cressida, Echo, Highlander, Matrix, Sienna, Sequoia, Tercel, and Venza; VW—Jetta TDI

For the best Mustang performance fuel economy, you must get the redesigned 2011 V6-equipped version. It dumps the lethargic, archaic (four-decades-old), 9.8 L/100 km 210 hp 4.0L V6 in favour of a sizzling 305 hp 3.7L V6 that increases fuel economy to 7.6 L/100 km.

Misses

Audi—A3, A4, A6, A8, and Q7; BMW—7 Series, Mini Cooper, and X5; Chrysler—200, 300, Avenger, Caravan, Charger, Dakota, Durango, Grand Caravan, Intrepid, LHS, Magnum, Neon, New Yorker, Pacifica, PT Cruiser, Sebring, Sprinter, and Town & Country; Daewoo—All models; Fiat—500; Ford—Aerostar, Contour, Explorer, F-150, 2003 and later Focus, Mystique, Sable, Taurus, Tempo, Topaz, and Windstar/Freestar; GM—Avalanche, Aveo, Canyon, Catera, Cimarron, Cobalt, Colorado, CTS, Envoy, Fiero, G6, Grand Prix, HHR, Impala, the Lumina/Montana/Relay/Silhouette/Terraza/Trans Sport/Venture/Uplander group of minivans, Malibu, SRX, STS, TrailBlazer, and Volt; Hyundai—Excel, Pony, pre-2006 4-cylinder Sonatas, and Stellar; Infiniti—G20; Jaguar—All models; Jeep—Cherokee, Commander, Compass, Grand Cherokee, Journey, and Patriot; Kia—Rio, Sedona, Sephia, Sorento, Spectra, and 2006 and earlier Sportages; Lada—All models; Land Rover—All models; Lincoln—Continental front-drive; Mercedes-Benz—190, B-Class C-Class, CLK, GL-Class (V8), M series, R-Class, S-Class, and SLK; Merkur—All models; Nissan—240Z, 250Z, 260Z, pre-2005 Altimas, Armada, Cube, Juke, Quest, Titan; Porsche—All models; Saab—All models; Saturn—L-Series, ION, Relay, S-Series, and VUE; Suzuki—Forenza, Samurai, Verona, and X-90; Toyota—Previa and RAV4; VW—EuroVan, Passat, Golf, Rabbit, and Touareg

The GM Lumina, Montana, Relay, Silhouette, Terraza, Trans Sport, Venture, and Uplander are likely the worst minivans ever built. The Truth About Cars (www.thetruthaboutcars.com) said this in August 2006, almost three years before GM’s bankruptcy: In short, the Uplander’s performance doesn’t even deserve the noun. . . . If bankruptcy is the only way to stop GM from inflicting crap vehicles like the Uplander on unsuspecting rental car drivers and (God forbid) buyers, then I can’t help but wish the world’s largest automaker a speedy Chapter 11.

Note in the list above how many so-called premium luxury brands have fallen out of favour and have been orphaned by shoppers and then abandoned by the automakers themselves. Their hapless owners are left with practically worthless, unreliable cars that can’t be serviced properly.

Also, keep in mind that some Japanese makes from Honda, Lexus, Mazda, Nissan, and Toyota have had a resurgence of engine and transmission problems, in addition to an apparent overall decline in reliability and safety.

For example, Nissan engineers have worked overtime during the past six years to correct Quest glitches, and Toyota’s Tacoma and Tundra pickups have had such serious corrosion, sudden acceleration, drivetrain, and suspension problems that the automaker has continually recalled the vehicles and even bought back at 150 percent of their resale value those trucks too rust-cankered to repair.

Evidently, as they capture more of the market share, most Japanese automakers are coasting on their earlier reputations and cutting back on quality, thereby committing the same mistake Detroit did 40 years ago when it switched to front-drives and let quality be damned. That said, the Asian automakers are still ahead of American manufacturers in terms of quality control.

Top 10 Safety and Reliability Problems

In spite of the hand-wringing over the Chrysler and GM bankruptcies in 2009, the purchase of Ford’s Volvo division by Chinese interests, and the closing of Pontiac, Saab, and Saturn by GM, I have no sympathy for these automakers. They were warned repeatedly over the past four decades, by Lemon-Aid and by independent journalists, that the dangerous junk they were selling and their cheapskate warranty handouts would lead to their downfall.

Over the past decade, many factory-related safety defects have afflicted major auto manufacturers, but these are the top 10:

1.  Airbags that deploy when they shouldn’t and don’t deploy when they should (all automakers)

2.  Sudden, unintended acceleration (all automakers)

3.  Sudden loss of braking (all automakers)

4.  Sudden steering loss (Chrysler)

5.  Sudden electrical shutdown (all automakers)

6.  Minivan sliding door failures (all automakers)

7.  Fire of unknown origin (all automakers); cruise-control/master cylinder fires (Ford)

8.  Automatic transmissions that won’t hold a vehicle parked on a hill, or jump out of gear (Ford, Audi, and Volkswagen)

9.  Fuel leaks (all automakers)

10.  Leaking tire valve stems (all automakers)

I’ve spent 42 years battling automakers and dealers who lie through their teeth as they try to convince customers, financial analysts, and journalists that their vehicles are well made and that the few defects reported (like those shown above) are caused mainly by the proverbial nut behind the wheel, poor maintenance, or abusive driving. That’s why the auto industry gets little support from consumers—a lie is one thing Canadian consumers won’t buy.

Chrysler Automatic Transmissions

Since the early ’90s, practically all models in Chrysler’s front-drive lineup have had disposable automatic transmissions. What adds insult to injury, though, is that Chrysler regularly stiffs its customers with transmission repair bills that average about $3,000—about half the average vehicle’s worth after five years—when the warranty expires. Since this is far less than what a new car or minivan would cost, most owners pay the bill and then hop onto the transmission merry-go-round, replacing the same transmission at regular intervals. Go ahead, ask any transmission shop.

Leaking Tire Stems from China

Here’s one example, among many, of why Lemon-Aid is so distrustful of auto parts imported from China.

Just when you thought Ford had learned its lesson from the hundreds of millions of dollars it paid out for faulty Firestone tires that caused Ford Explorer rollovers over a decade ago, the automaker repeats its error. This time, it’s cracked, leaking tire valve stems imported from China. Made by Topseal, a subsidiary of the Shanghai Baolong Automotive Corporation, these stems were used on many of Ford’s 2007 model vehicles—including the Ford Explorer. NHTSA has logged hundreds of complaints from car owners.

Although Ford says leaking tire stems is not a safety issue, Explorer rollover hearings almost a decade ago proved that any variation in tire pressure could easily cause an SUV rollover.

Faced with this danger, owners of Fords and other vehicles manufactured from late 2005 through 2008 should get their tire stems inspected and replaced if they were made by Topseal. Also, if you have bought a replacement tire or valve stem, you should check up on its country of origin.

The cost of the replacement should be borne jointly by the selling dealer and Ford of Canada after they are notified by registered letter that a refusal of the claim will mean a quick trip to small claims court. Lawsuits have been filed against several tire retailers and Dill Air Controls Products LLC, the North Carolina-based distributor of Topseal valves to retail tire stores and other distributors. These lawsuits should be airtight winners (pun intended), inasmuch as Dill admitted liability on its website at www.dillaircontrols.com/tovalvesteminstallers.html:

We are diligently investigating concerns raised regarding how certain snap-in valve stems produced overseas in the second half of 2006 withstand exposure to high ozone levels. If you replace one valve stem for being cracked, we recommend replacing all four valve stems on the vehicle.

Airbag Failures

Airbags often fail to deploy when they should, deploy too late, or deploy when they shouldn’t, leaving accident victims seriously—and sometimes fatally—injured. And, consumer advocates say, studies show automakers and the federal government could care less.

An investigation conducted by the Kansas City Star found that NHTSA is doing very little to protect consumers from the threat of airbag failure, and that even when it does take action, the process for issuing airbag recalls is painfully slow.

The Star’s analysis of NHTSA’s accident database between 2001 and 2006 showed at least 1,400 people died in front-impact car accidents after airbags failed to deploy. And this number is on the conservative side, as the newspaper did not count accidents that involved side-impact crashes where the airbag did not work, nor did it count fatal crashes that involved principal impacts to the left or right fender, accidents where victims died after being ejected, or when a crash involved a vehicle rollover. The Kansas City Star investigators also did not count airbag failure if a vehicle caught fire or was submerged in water. Had the Star included such accidents in its investigation, the death toll would have risen by more than 4,000 fatalities.

The newspaper’s investigation also found that the number of accident fatalities that occurred when an airbag did not inflate has risen dramatically over the past several years. Since 2001, the number of deaths in accidents where airbags failed has gone up by about 50 percent. And in 2006, there was a 14 percent increase in such fatalities. Still, NHTSA does not see the failure of so many airbags as a problem. According to the Star, when told about the 1,400 fatalities, a NHTSA spokesperson told the newspaper, It’s not a surprise to us.

Toyota Lurch-Mobiles

Toyota Motor Corp. says the gas pedal design in more than 4 million Toyota and Lexus vehicles makes them vulnerable to being trapped open by floor mats, thus explaining why the vehicles hesitate and then surge when accelerating from a stop. But anecdotal reports from Toyota owners, interviews with auto safety experts, and a Los Angeles Times review of thousands of federal traffic safety incident reports, point to another, more plausible culprit: the electronic throttles that replaced mechanical systems nine years ago. A survey of safety incidents recorded by NHTSA confirms this theory:

Traffic slowed as it approached an entrance ramp. I applied pressure to the brakes to disengage the cruise control and slow vehicle, nothing happened. Did this several times and also tried to turn cruise off from steering column lever. Cruise did not disengage, car did not slow, my 2009 Lexus RX350 ran into the rear end of the rock hauler truck in front of me.

The Times found that reports of sudden acceleration in many Toyota and Lexus vehicles shot up almost immediately after the automaker adopted the so-called drive-by-wire system. Total complaints of sudden acceleration for the Lexus and Camry in the 2002–04 model years averaged 132 a year. That’s up from an average of 26 annually for the 1999–2001 models, the Times review found.

The average number of sudden acceleration complaints involving the Tacoma jumped more than 20 times, on average, in the three years after Toyota introduced drive-by-wire in these trucks in 2005. Increases were also found on the hybrid Prius, among other models.

These incidents are coming in left and right where you can’t blame the floor mats, says Sean Kane, president of the consulting company Safety Research and Strategies. So they are chipping away at a problem that is widespread and complicated without having to unravel a root cause that could be very expensive.

Diesel Defects

All three Detroit manufacturers have had serious injector problems with their newest diesel engines. Ford is covering repair costs through a variety of goodwill programs, while GM and Chrysler argue that their recent bankruptcy absolves them from any liability.

Nevertheless, J.D. Power’s 2004 Vehicle Dependability Study found that Ford and Chevrolet diesel pickups were worse performers than similar gas models, while Dodge and GMC trucks were better overall. Owners of Volkswagen diesels reported up to twice as many engine problems as did owners of VWs that burn gas.

Chrysler

Although Chrysler’s Cummins engine has been the most reliable diesel sold by American automakers, it also has had some serious manufacturing flaws, involving lift-pump failures that compromise injector-pump performance. Here’s how independent mechanic Chuck Arnold (chuck@thepowershop.com) describes the problem:

Low fuel pressure is very dangerous because it is possible for the engine to run very well right up to the moment of failure. There may be no symptom of a problem at all before you are walking. If you notice extended cranking before startup of your Cummins 24-Valve engine you should get your lift pump checked out fast. Addition of fuel lubricant enhancing additives to every tank of fuel may minimize pump damage and extend pump life. Finally, Cummins and Bosch should re-engineer their injector pump to make it less sensitive to low-fuel-pressure-induced failure. Existing safety systems designed to limit performance or signal engine trouble need to be redesigned to work when fuel pressure is inadequate so that very expensive injector pumps are not destroyed without warning.

Incidentally, Chrysler’s Customer Satisfaction Notification No. 878 authorized the free replacement of lift pumps in some 2000 and 2001 Dodge pickups.

Tell the judge: They did it then, they should do it again.

Ford

F-Series 2003 and 2004 model year trucks equipped with the 6.0L Power Stroke diesel engine were so badly flawed that they couldn’t be fixed, forcing Ford to buy back over 500 units. Wary customers are snapping up Ford’s earlier 7.3L diesels, which are apparently more reliable, though less powerful (275 hp versus 325 hp). Power Strokes have a history of fuel injectors that leak into the crankcase, and, on the 7.3L diesel, water can leak into the fuel tank, causing the engine to seize. Other glitches affect the turbocharger, the fuel injection control pressure sensor, and the engine control software.

The 6-liter Power Stroke diesel V8, built by a unit of Navistar for Ford, commands nearly half the U.S. market for diesel pickups. But a raft of problems and repeat trips to dealerships for repairs has left some owners upset, threatening Ford’s efforts to rebuild a reputation for quality vehicles.

Soon after the new engines went on sale in November in heavy-duty Ford pickups and the Ford Excursion sport-utility vehicle, owners started reporting problems. Among the costliest is fuel seeping into the engine’s oil supply in amounts large enough to ruin the engine. Other complaints included engines that ran roughly or stalled, lack of power at low speeds and harsh shifts.

JUSTIN HYDE

REUTERS, AUGUST 20, 2003

One Ford dealer mechanic has seen it all:

You name it, we’ve seen it. Oil blowing into the cooling system (fortunately, not the other way around), numerous running problems, tubes blowing off the turbos, and oil leaks. We had one truck with 8 miles [13 km] on it that we had to pull the engine on. It was a truck going to Hertz, so it wasn’t a big deal to the customer, Ford owned [it] anyway, but still, it was a new truck coming off the autohauler sounding like it had a 5 hp air compressor running under the hood and a dead skip.

We’re pulling heads off of a 6.0 now with 4,000 miles [6,400 km] on it. All these problems I’ve mentioned are on trucks with less than 20,000 miles [32,000 km]. My diesel tech constantly wishes that since they had worked all the kinks out of the 7.3, Ford would have kept it. So far, we’ve had six buybacks. The one we’re pulling the heads off of now will be the next. Before this, I only had one buyback, in four years.

After years of stonewalling and rejecting Lemon-Aid’s criticism and owners’ refund claims for faulty 6.0L diesel truck engines, Ford now agrees that its engines were crap and has demanded that the supplier of these engines, International Engine Group, pay the automaker compensation for the defective diesels. Ironic, isn’t it? Ford is now doing to International what many angry owners of Power Stroke 6.0L-diesel-equipped trucks threatened to do to Ford. And, as in the Ford Explorer/Firestone tire debacle, neither company will admit guilt, or even apologize to owners for their shoddy product.

Ford’s 2008–09 6.4L diesels are continuing to use faulty fuel injectors that may leak fuel into the engine crankcase, causing the oil level to rise and possibly damage the engine. Ford set up a goodwill warranty extension (Campaign 09B08) to replace these leaking injectors for free, but that program expired in September 2010. Nevertheless, Ford is now paying for replacements under a goodwill warranty on a case-by-case basis. What does all this mean? Don’t take no for an answer.

Also, both Ford and General Motors have had problems with snow accumulation in the air filter element, restricting air passage to the engine and possibly causing severe engine damage. Both companies are liable for the free repair of any damage called by this poor design. Or did they imagine Canada was a snow-free zone?

General Motors

GM’s diesel engine failures primarily affect the 6.5L and 6.6L Duramax engine. The 6.5L powerplants are noted for cracked blocks, broken cranks, cracks in the main webbing, cracked cylinder heads, coolant in the oil, loss of power, hard starting, low oil pressure, and oil contamination. Duramax 6.6L engines have been plagued by persistent oil leaks and excessive oil burning, and by defective turbo-chargers, fuel-injection pumps, and injectors, causing seized engines, chronic stalling, loss of power, hard starts, and excessive gas consumption. To its credit, GM has a Special Policy program that extends the warranty to 11 years on injection pumps installed in 1994–2002 models. GM also extended the fuel injector’s warranty coverage for owners of 2001 and 2002 Duramax 6600-equipped pickup trucks. Another program, Special Policy #04039, was set up in June 2004 to give additional warranty protection for seven years from the date the vehicle was placed into service, or for 330,000 km (200,000 miles)—whichever comes first. Finally, anecdotal reports from diesel owners tell Lemon-Aid that engine head gasket repairs or replacements are covered by a goodwill policy for up to 7 years/160,000 km.

Why Smart Canadians Buy Used

It simply costs too much to own a new car or SUV. In fact, many of my readers tell me that the cost of their new car exceeded the down-payment on their first mortgage. No wonder that of the 4.4 million automobiles that were sold in Canada in 2010, most were secondhand (2. 9 million).

The Cherolet Silverado (above) and its GMC Sierra twin are noted for their overall durability. Too bad their diesel engines were so screwed up.

More vehicles are being traded because more are available. R.L. Polk Data says an incredible 17.9 percent of the light trucks manufactured in the last 25 years are still in service (almost three times the rate for cars). GM trucks have the most longevity: 21.7 percent of all the Chevrolet pickups sold 25 years ago are still on the road.

Read on for more reasons why Canadians increasingly prefer to buy used vehicles rather than new ones.

Less Initial Cash Outlay, Slower Vehicle Depreciation, Secret Warranty Repair Refunds, and Better and Cheaper Parts Availability

New-vehicle prices average around $30,000 and insurance can cost almost $2,000 a year for young drivers. CAA calculates that once you add financing costs, maintenance, taxes, and a host of other expenses, the yearly outlay in 2010 for a small-sized car like a Chevrolet Cobalt driven 18,000 km a year is $6,257, or $7.14 a day; a Dodge Grand Caravan may cost about $8,568 a year, or $23.47 per day; and, surprisingly, a Toyota Prius hybrid, touted for its fuel frugality, hovers in the middle with a yearly outlay of $7,333, or $20.09 a day.

For a comprehensive though depressing comparative analysis of all the costs involved in owning a vehicle over one- to 10-year periods, access Alberta’s consumer information website at www.agric.gov.ab.ca/app24/costcalculators/vehicle/getvechimpls.jsp.

Don’t forget the savings. Used vehicles aren’t sold with $1,600–$2,000 transport fees or $495 administration charges, and you can legally avoid paying some sales tax when you buy privately. That’s right: You’ll pay at least 10 percent less than the dealer’s price, and you may avoid the federal Goods and Services Tax that in some provinces applies to dealer sales only.

Depreciation works for you

If someone were to ask you to invest in stocks or bonds guaranteed to be worth less than half their initial purchase value after three to four years, you’d probably head for the door. But this is exactly the trap you’re falling into when you buy a new vehicle that will likely lose up to 60 percent of its value after three years of use.

When you buy used, the situation is altogether different. That same vehicle can be purchased three years later, in good condition and with much of the manufacturer’s warranty remaining, for less than half its original cost.

Secret warranty refunds

Almost all automakers use secret goodwill warranties to cover factory-related defects long after a vehicle’s original warranty has expired. This creates a huge fleet of used vehicles that are eligible for free repairs.

We’re not talking about merely a few months’ extension on small items. In fact, some free repairs—like those related to Mercedes engine sludge and GM diesel engines—are authorized up to 11 years or more as part of goodwill programs. Still, most secret warranty extensions hover around the five- to seven-year mark and seldom cover vehicles exceeding 160,000 km. Yet there are exceptions, like the secret catalytic converter warranty that will pay for the converter’s replacement up to 10 years, or 120,000 miles (193,000 km), on all Chevrolet Malibu and Pontiac G6 models.

Incidentally, automakers and dealers claim that there are no secret warranties, since they are all published in service bulletins. Although this is technically correct, have you ever tried to get a copy of a service bulletin? Or, if you did manage to get a copy, did the dealer or automaker say the benefits are applicable only in the States? Pure weasel speak!

Parts

Used parts can have a surprisingly long lifespan. Generally, a new gasoline-powered car or minivan can be expected to run with few problems for at least 200,000–300,000 km (125,000–200,000 miles) in its lifetime and a diesel-powered vehicle can easily double those figures. Some repairs will crop up at regular intervals along with preventive maintenance, and your yearly running costs should average about $1,000. Buttressing the argument that vehicles get cheaper to operate the longer you keep them, the U.S. Department of Transportation points out that the average vehicle requires one or more major repairs after every five years of use. Once these repairs are done, however, the vehicle can then be run relatively trouble-free for another five years or more, as long as the environment isn’t too hostile. In fact, the farther west you go in Canada, the longer owners keep their vehicles—an average of 10 years or more in some provinces.

Time is on your side in other ways, too. Three years after a model’s launch, the replacement parts market usually catches up to consumer demand. Dealers stock larger inventories, and parts wholesalers and independent parts manufacturers expand their output.

Used replacement parts are unquestionably easier to come by after this three-year point through bargaining with local garages, carefully searching auto wreckers’ yards, or looking on the Internet. And a reconditioned or used part usually costs one-third to half the price of a new part. There’s generally no difference in the quality of reconditioned mechanical components, and they’re often guaranteed for as long as, or longer than, new ones. In fact, some savvy shoppers use the ratings in Part Three of this guide to see which parts have a short life and then buy those parts from retailers who give lifetime warranties on their brakes, exhaust systems, tires, batteries, and so on.

Buying from discount outlets or independent garages, or ordering through mailorder houses, can save you big bucks (30–35 percent) on the cost of new parts and another 15 percent on labour when compared with dealer charges. Mass merchandisers like Costco are another good source of savings; they cut prices and add free services and lifetime warranties (on brakes, mufflers, and transmissions).

Body parts are a different story. Although car company repair parts cost 60 percent more than certified generic aftermarket parts, buyers would be wise to buy only original equipment manufacturer (OEM) parts supplied by automakers in order to get body panels that fit well, protect better in collisions, and have maximum rust resistance, says Consumer Reports magazine. Insurance appraisers often substitute cheaper, lower-quality aftermarket body parts in collision repairs, but Consumer Reports found that 71 percent of those policyholders who requested OEM parts got them with little or no hassle. The magazine suggests that consumers complain to their provincial Superintendent of Insurance if OEM parts aren’t provided.

With some European models, you can count on a lot of aggravation and expense caused by the unacceptably slow distribution of parts and by the high markup. Because these companies have a quasi-monopoly on replacement parts, there are few independent suppliers you can turn to for help. And junkyards, the last-chance repository for inexpensive car parts, are unlikely to carry foreign parts for vehicles that are more than three years old or are manufactured in small numbers.

Finding parts for Asian and domestic cars and trucks is no problem because of the large number of vehicles produced, the presence of hundreds of independent suppliers, the ease with which relatively simple parts can be interchanged from one model to another, and the large reservoir of used parts stocked by junkyards.

Insurance Costs Less

The price you pay for insurance can vary significantly, not only between insurance companies but also within the same company over time. But one thing does remain constant: The insurance for used vehicles is a lot cheaper than new-car coverage, and through careful comparison shopping, insurance premium payouts can be substantially reduced.

Beware of captive brokers

Although the cost of insurance premiums for used cars is often one-third to half the cost of the premiums you would pay for a new vehicle, using the Internet to find the lowest auto insurance quote and accepting a large deductible are critical to keeping premiums