Did Detroit Oversell?

Apparently the Big Three U.S. automakers (Ford, GM and Chrysler) are finding out their business plan over the last few years wasn’t much of a plan at all. By pushing cars, trucks and vans to millions of Americans who couldn’t actually afford them, they created their own “auto bubble”.

CNN published an article today title “Pop goes the market: Detroit’s auto bubble woes” that chronicles the numerous mistakes Detroit made in offering 0% financing (among other creative financing options) plus huge rebates and cash back offers. Not only did the strong sales make the automakers think they were on the right track, it also caused them to make some risky deals with the UAW that they can no longer live up to thanks to the down economy:

The strong sales also allowed General Motors, Ford Motor and Chrysler LLC to generate healthy profits, which led them to agree to contracts with the United Auto Workers union that they ultimately couldn’t afford over the long-haul.

HFC Test Drive: 2009 Acura TL

I have a special place in my heart for the Acura TL. Back in 2001, I laid my hands on a brand new 2002 Acura TL Type S. The regular TL had been around for years, but Honda decided to pump up the engine, throw on some different wheels and seats, and call is Type S (for “Screaming”). I got an Aegean Blue Pearl with black leather interior, which I still think is the best color option to-date on the TL.

After 4 years of racing around local roads and highways, I had to hang up the driving gloves and sunglasses and trade in the TL for a pickup. I was a homeowner now, with grand visions of hauling tons of stuff for home improvements. And now 2.5 years into being a truck driver, and with an entire version of the TL come and gone, I felt it was time to check out the newest offering from Acura: the 2009 Acura TL.

10 Most Decadent Car Options

Ok, so you think your $100 all-weather mats or $2,000 navigation unit upgrades are pricey. Check out this list from Car and Driver of the 10 most expensive (and truly decadent) vehicle options:

Here’s my take:

10. BMW Comfort Access: $500-$1000. I don’t understand why it’s so expensive. Our Chevy Malibu had remote start for like $100-150 extra (even on the base model), and our VW Passat, MINI Cooper and Honda Ridgeline all roll down their windows via the key remote (just hit unlock twice and hold it down on the second press). It wasn’t an extra option at all, it just does it.

9. Porsche Customized Leather List:$365 for leather-covered vent slats: Why do you need leather on your vents? Why don’t you just ride a cow around the track?

8. Mercedes Benz Designo Interior: $12,015 for the Designo interior. Although you may think velour floor mats are ridiculous because they would get ruined with rain and snow, you’re right. But 12-large for a designer leather interior? Makes the Eddie Bauer Ford Explorer option look like a steal!

Finding a Compact Car in Today’s Market

Even though today is a buyer’s market for cars, not all models are easily found, and when they are, they’re not easily discounted. While you can get 5-figures knocked off the price of a Hummer H2, and maybe even a Hummer H3 (it’s sitting on the lot over 200 days average), you can’t expect the same for the other end of the auto spectrum.

Getting a Discount on a Compact Car

While I must admit that your results will vary depending on your location and market, generally all small cars, such as the Honda Fit, Toyota Yaris, Mazda3 and even domestics like the Chevy Aveo and the Korean Hyundai Accent are selling for MSRP. At best, but still possible, you can negotiate down close to dealer invoice on these vehicles, but again it really depends on your market.

For example, if you’re looking for a Mazda3 sedan or hatchback, you’ll have more luck in an area like mine where there are 4-5 nearby Mazda dealerships than in Nowhere, Pennsylvania where the closest dealer is 30 miles away. I can pit the salesman against each other because they know I can more easily travel to the competitor.

Meet the New Honda Prius…Wait, What?

Look at that photo and tell me what you see. If you’re like me, you see slightly restyled Toyota Prius. But we’d both be wrong; that’s not a Prius.

That’s the newly redesigned Honda Insight Hybrid.

Normally we hear about the Koreans copying designs from the Japanese, Americans or Germans for their new models, but now the Japanese are copying each other! Whodathunkit?

So basically Honda has restyled the Insight to no longer be super-efficient 2-door model (although from marketing shots, one should be available eventually). Rather, they’ve upgraded it to 4 doors and 5 passengers. Unfortunately, though, it sounds like it still won’t be a “true hybrid” where the car can run on the battery alone. Instead, it will continue to use Integrated Motor Assist like in the Civic to aid the electric motor at low speeds. The car will also shut off when idling as with other hybrids.

The Insight will be smaller, lighter and (hopefully) less expensive than the Civic Hybrid, but pricing isn’t out yet. The vehicle is expected to premier at the Paris auto show in October.